Two directors of a company have been ordered to pay $7.4 million to the Fiji Development Bank.
High Court judge Justice Yohan Liyanage ruled recently that Anand Chandra and Subhas Chandra were bound by an agreement with FDB and liable to pay any residual debt of their company, Toa (Fiji) Ltd.
The duo had approached FDB to fund their poultry farm venture.
“Toa Fiji Ltd was the vehicle for the investment which the plaintiff agreed to finance based on the defendant’s personal guarantee,” he said.
“The company provided number of securities to the plaintiff. FDB said it found out that the debtor company has been wound up by another creditor.
“I am of the view that the two defendants are bound by the agreements and liable to pay any residual debt of their company, Toa.
“They now cannot allege that the plaintiff failed to provide sound financial advice. In fact it was not the plaintiff’s responsibility.”
Justice Liyanage ruled the directors pay $7,427,652.93 to the FDB within three months of the judgment.