Yes, Bank can recover loan from B Ltd.
CA Varun Arora
(CA)
(286 Points)
Replied 21 November 2009
CS Lucky Popli
(Company Secretary)
(84 Points)
Replied 21 November 2009
There is no logic to recover a loan from its Holding Co. ...
Unless there is a contract, HOLING CO. shall not be liable...
M.Sai Phani Kumar
(Article Asst)
(63 Points)
Replied 23 November 2009
based on the seperately legal entity concept bank has no right to recover from holding company., bcz there is no guarantee given by holding company for the purpose of the loan.
chetan agrawal
(no)
(37 Points)
Replied 24 November 2009
only if B ltd had provided guarantee to bank on behalf of A ltd.
Vikash Tiwari
(Expert)
(158 Points)
Replied 02 December 2009
No Bank can not recover such laon from B.
Vikash Tiwari
(Expert)
(158 Points)
Replied 02 December 2009
only if B provide a guarantee for A than bank can recover it .
CA Parveen Kumar
(A.M. (Internal Audit Operations))
(40 Points)
Replied 02 December 2009
PL TELL ME WHAT IS THE COST OF AQUISITION OF GOODWILL OF A PROFESSION
Prateek
(Top Management)
(213 Points)
Replied 08 December 2009
| Originally posted by :CA Rakesh Somaiya | ||
| " | If holding company has given the gurantee then bank can. otherwise.. As per the separate entity concept, Bank can not recove the loan from holding company. If one has use subsidiary to make such a planned fraud then court may lift the veil and recover the loan from victims. |
" |
Nice Answer...and I agree...
If Corporate Guarnatee provided or if the Holding company is the befeciary of the funds taken as loan (corporate loan etc) - then recoverable by B
Else cannot be recovered by "B" - B is a seperate legal entity.
In a Court - more data would be required as to the business of both the enttities...what was the loan used for... why did A defualt and why did B not help....etc..etc.
Do remember...if B defaults all the Directors get reported to "Defaulters List" and i presume A & B would have some common Directors... this will make life harder for B company
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