Delivery made payment struck - Debtor has filed in BIFR

785 votes

To proceed with my advice, i would like you to clarify whether you are a secured creditor or not? If you are a secured creditor, then as and when the company files a representation for being declared a sick unit before the BIFR, the BIFR will send notices to all secured creditors and invite objections. You can at that stage file your objections and make your claim of Rs. 4 Lacs. If you are an unsecured creditor, then the recourse available to you is to file an application under Section 22 of the Sick Industries Act. This Act provides that as soon as a company makes a reference to the BIFR, all other forms of recovery against the company shall stand suspended unless the BIFR allows the same. Thus you need to file an application under Section 22 and apply for permission to proceed against the company by either filing a suit or a winding up petition and recover your money. Since your claimed amount is not very huge, there are reasonable chances the BIFR would allow your application or otherwise direct the company to settle your claims. Do contact me with relevant details if you wish to proceed. Regards

Advocate Shikhar Khare LawRato

538 votes

You may move an application before the BIFR seeking permission for you to institute a suit for recovery of Rs. 4 lakhs before the Civil Court. You chances of getting back the money may depend. I need to know the contractual details of supply material.

Advocate Saugata Nath Mitra LawRato