Default under schedule xiii

When it can be said that the company is in default regarding payment of loan or interest thereon under schedule XIII of CA ?

Whether it is simply when the company has not paid the same for 30 days or more or only when the bank declares it as a default irrespective of the fact that the company has not paid the same for more than 30 days?

Regards

CS Abhay Sharma

 

 

Replies (1)

Schedule XIII specifies  the company has not made any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year before the date of appointment of such managerial person.

 


Schedule XIII has nothing to do with regard to declaring a Company as defaulter by Bank , even if Bank has not declared a Company defaulter after 30 days it will be a default under Schedule XIII of the Companies and case may be vise versa if Bank has declared Company defaulter before 30 days  it will not be default under the said Schedule.

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