Liability for a loan misused by an absconding partner

Hi,

I would like to ask about the company, where I am working for the last 5 years. We are W.L.L. company and the local partner was a sleeping partner.

The other partner was Indian and he took a loan from the bank on the company's name and used it for his personal use and drained it in other business.

He increased the creditors and now he left the country. At this situation, the local partner comes to know about his intention of not coming back. Now, all the responsibility falls upon the local partner's shoulders.

The company has creditors of around BD 140,000 / and a bank loan of BD 160,000/, which is impossible to pay by the local partner.

For running business outstanding, mostly companies has cheques issued by the Indian partner (Local partner is not authorized to sign any cheque according to MOA), and the bank has guarantee papers signed by the local partner.

Can you please advise how we can save the local partner and file a case against the Indian partner?