Period of Liability of debenture trustee

Further, the company is duty-bound to pay the interest till the debentures are finally redeemed at the specified time which is mentioned in the instrument. When the company fails to clear its dues the debenture holders can approach the tribunal, the tribunal can subsequently make an order that would have the effect of directing the company to clear its dues to the debenture holders for the redeeming of the debentures. When the orders of the tribunal are not followed by the company, a punishment of fine and imprisonment is attracted. The remedies available to the debenture holders are contingent on the nature of the agreement which they have entered into with the company which issued the debentures. Any debenture holder of the company who wishes to redeem the debenture has to exercise the remedies available in the debenture trust deed or has to initiate legal proceedings to recover such an amount of money. When a debenture is redeemable on-demand, once the demand is made and reasonable time is given for the payment of the amount be made by the company needs to be given. To make such a demand of redeeming the debenture it is not necessary to specify the amount. Though it is not necessary to afford the time to the company in order to facilitate the commercial transaction of raising funds for the redemption of debentures. One remedy which is always available to the debenture holders is the sale of the mortgaged property under the transfer of property Act. Section 84 of the Companies Act, 2013 provides for the appointment of a receiver who can take charge of the assets which are charged and mortgaged. The fact of the appointment of the receiver has to be communicated to the registrar within a period of 30 days. The registrar subsequently makes registration of the charges on the assets of the property. Also, a notice has to be furnished by the receiver on resignation from this official duty. Once the assets are under the control and administration of the assets of the company, the receiver has to maintain the accounts of receipts and payments and furnish these to the court every 6 months. When the receiver is under a debenture agent, he is entirely responsible for maintaining the accounts of the company. The matter of the appointment of the receiver must be mentioned on “every invoice, order of goods or the business letter” which is generated by the company. When a company undergoes liquidation, and a receiver is appointed as the guardian of the assets of the company assets in such circumstances and also has undertaken the responsibility of defending the company.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.