07 March 2011
1. Can a Director and His Family avail loan by mortgaging Company's Asset.
2. Further, if in ROC charge of one Bank is already created against company stock for Corporate Guarantee, what be the charge of other Bank if provide loans against same asset after creating mortgage.
08 March 2011
Answer to your first query is no. The company's assets cannot be mortgaged for availing of loan by a director or his family while vice versa is possible.
In my opinion, the first mortgage would be valid to the extent it is registered in favour of the first bank. The second mortgage would be for the balance value of stock, if any remaining after satisfying the first one.
08 March 2011
For the first query, i agree with the expert.
Second Query: In case both the charges state that they are pari passu charge, then both the charge holder have equal right in case of default. Otherwise, the first chargeholder has preference over the second chargeholder.
08 March 2011
The first morgage was registered initially for the full amount. At that there was no question of pari passu charge.So the first chargeholder is fully covered. However subject to the consent of the first chargeholder, second charge can be made pari passu.
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