Jurisdiction of civil court

A private limited company have incurred heavy losses .  and shut down in 2005 . The company have sold its all assets and settle company’s liabilities  in 2014 . The shortfall from assets over liabilities have been met by Managing director.  One shareholder having 10 percent holding died in 2015. The died share holder have 7 legal heirs. One legal heir of the dead share holder filled suit at civil court in 2021 against Managing Director to pay him his share out of sale proceeds. 

Can legal heir can file suit. ?

Whether it is in Jurisdiction of civil court. ?

Is section 430 of the companies act 2013 applicable ?

Is section 280 of the companies act 2013 applicable ?

what is remedy  to MD of the company ?

Replies (1)

the legal heir can approach the traditional civil courts seeking for enforcement of his/their rights or damages and simultaneously, they can approach the High Court seeking to the claims on the ground that the Company is not in a position to pay its debts or there exists a reasonable ground to wind-up the Company.

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