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Recovery of due from a limited co.

Harsh Modi (student) (39 Points)

09 June 2015

Where to complain to recover the due amount from a limited company? What is the procedure required to be done?

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P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 10 June 2015

In case yours is an MSME unit you may lodge complaint with the authority constituted under MSMED Act 2006. Otherwise you have to file ordinary civil suit in the court for recovery.

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Harsh Modi (student) (39 Points)
Replied 10 June 2015

But sir can't we file an complaint under Ministry of Corporate Affairs?

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 10 June 2015

Job of MCA is to ensure compliance of company law provisions by companies and not to recover outstanding amount. It is the job of courts. Companies Act does not provide that a company must pay its dues on due date. It is violation of Contract Act.

Alternatively you can send a notice for winding up of the company if it is proved that the company is unable to pay its debts. In that case you will have to file petition in High Court for winding up of that defaulting company.