Non receipt of subscribers money and forfeiture

[CA Adarsh]

Can We forfeiture of shares in case non receipt of subscriber's money from Promoter cum Director of Private limited company at incorporation and Still INC-20A is not filed?

Or Else remedy does private company if above subscriber`s does not part of the company now?

AI Summary

Non payment of subscription: company may withhold share issuance and pursue replacement or legal recovery measures.
Non receipt of subscription money at incorporation prevents lawful commencement of business because INC 20A requires full payment; forfeiture is a post issuance remedy and is not the standard route for unpaid subscriptions at incorporation. The company should withhold issuance or rescind allotment until payment, replace the defaulting subscriber or reissue shares to paying persons, and pursue contractual remedies if appropriate, ensuring compliance with the Articles of Association and statutory commencement requirements before filing the declaration to commence business.