About insolvency act 1920
vinodkumar
(Querist) 08 September 2014
This query is : Resolved
I AM A JUNIOR LAWYER, I WANTS TO FILE A PETITION UNDER SEC 7 OF INSOLVENCY ACT, MY QUERY IS, BEFORE FILING A THIS SUIT, TO ISSUE A NOTICE TO CREDITORS IS MANDATORY, OR WITHOUT SERVED A NOTICE I CAN FILE A PETITION IN THE COURT?. MY OTHER QUERY IS THAT MANY CRIMINAL NEGO ACT, 138 MATERS IS PENDING AGAINST MY CLIENT[ INSOLVENT PETITIONER} WHAT ANY PROCEDURE OR SECTION THAT WE PROTECT FROM CONVICTION DURING THE PENDING INSOLVENCY SUIT.?
dr g balakrishnan
(Expert) 08 September 2014
Notice is a vital component to help the insolvent too, so need to be used even if not mandatory.
secondly, latest sec 138 judgement of SC might help your client as complainants could have misused sec 138 on your client. check and do the needful.
Insolvency incidences were enhanced by irrational criminalization by sec 138 of NIA 1881 while it is basically a commercially friendly Act.
Examine every aspect before you file your insolvency petition!
T. Kalaiselvan, Advocate
(Expert) 13 September 2014
Notice to creditors for filing an insolvency petition is not mandatory. The criminal case u/s 138 has got nothing to do with the insolvency petition, if he pleads guilty in that case,he has to face the consequences thereon.
