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Creditor filing a petition

626 views 4 replies

Pallavi Bijapur

Student CA Final

50 Points Posted on 23 January 2014

Hello everyone!!

I will be really grateful if you guys can help me out with the sections of the Companies Act applicable when a company defaults in making payment to a creditor.

The said creditor wants to file a petition with the company law board. The company has acknowledged the receipt of the finished good but has taken back its stand now is refusing from making the payment.

The creditor is in a serious economic trouble.

Thanks and regards,

Pallavi.

Replies (4)

shubham

student

238 Points Posted on 23 January 2014

sec 433,434 ,439 can be read in reference to creditors winding up.

Pallavi Bijapur

Student CA Final

50 Points Posted on 23 January 2014

Are there any other sections for any injuction orders??

P C Agrawal

Registered independent director Past Ch

8229 Points Posted on 24 January 2014

Companies does not provide any other remedy to a normal creditor other than winding up petition. However, if the creditor is covered under Micro, Small & Medium Enterprises Development Act 2006, it can demand interest for delayed period.