Apply for insolvency petition
Tracey
(Querist) 01 June 2014
This query is : Resolved
I am based in Chennai, and would like to know details regarding IP. I have debts to the tune of 5.5 crore mostly from private financiers some documented some not, family and friends.
I have a property which is worth over 6 crore currently for which a GPA was done in January 2014 so as to close a loan with a bank. I have since been unable to make any payments and the creditors have all started to threaten and hunt me filing a number of police cases against me. All belongings and original documents and certificates are in the house which is in position of the GPA holder. I have two cars which have been taken by two of the creditors.
I would like to know the process of applying for IP, the time it could take and what court and other legal fees will be incurred.
Thank you all for the advice.
Regards
Tracey
Guest
(Expert) 01 June 2014
Mere GPA will not make property is not yours.Still the Property is yours and you have to dispose the property to settle your Loans even if you file IP.Consult a Lawyer.
Tracey
(Querist) 01 June 2014
Hello Rajkumar,
Thanks for the reply I am interested in disposing the property and settling everyone. But the current GPA holders and a few others who I have taken loans from will not allow me to dispose or even go near the property. The loan was taken so I could show potential buyers the place and sell.
I have consulted a lawyer but he seems to be wanting original documents which is in the possession of the current GPA holders.
The reason I want to go for an IP and dispose the property settling creditors.
I would be grateful if you can let me know what will be the court and any other legal fees. Since I feel am being taken for a ride by some other lawyers.
Thanks
Tracey
Guest
(Expert) 02 June 2014
You could always cancel the GPA with out the original documents also.Better do it at the earliest.Other things you could discuss with Lawyer of your choice.
Dr J C Vashista
(Expert) 02 June 2014
GPA do not confer ownership/title of any property to the attorney.
When you are owner of property worth Rs. 6 crore, you must engage a local lawyer to handle your case(s) in a professional manner.
Devajyoti Barman
(Expert) 02 June 2014
GPA has nothing to do in insolvency proceeding.
Once you file insolvency proceeding for adjudging you as an insolvent, you have to simply declare the list of creditors, list of your properties at the disposal of court and quantum of loan due to you.
Once it is started the court can attach all the properties irrespective of execution of GOA or not.
Once it is done it is duty of court to liquidate the assets and distribute the property among the creditors as per their status like secured creditor gets priority.
So in other words once you file such case you need not bother about status if your properties.
Tracey
(Querist) 02 June 2014
Thanks everyone for the help.
Can anyone help me as to what costs could be involved going in for the IP and attaching the property to liquidate and settle all loans.
Anirudh
(Expert) 02 June 2014
1. You say that you have a bank loan. Please clarify whether the bank loan is secured or unsecured. If secured, whether the property in question is under charge against the said bank loan?
2. To whom did you give the GPA? Whether the GPA is registered or unregistered? Whether the GPA has a specific clause authorising the GPA holder to sell the property?
Devajyoti Barman
(Expert) 02 June 2014
The fees differ from lawyers to lawyers.
First zero in on an advocate and then check fees with other lawyers.
Court fees and other incidental expenses are quite minimal.
Tracey
(Querist) 02 June 2014
Thanks for the replies
Anirudh in reply to your questions.
1. Currently there is no bank loan only loans with private financiers, family and friends. The last loan was take to clear the bank loan.
2. Yes it is a registered GPA and as far as I am aware there is no clause allowing the holder to sell the property. I have not been given a copy of the GPA.
Anirudh
(Expert) 02 June 2014
It is you, who said that a GPA was done in January 2014 so as to close a loan with a bank. Now you say that there is no bank loan. (I leave it to you).
You also have to clarify whether the said GPA has against any consideration or creating any interest in the property which you mention.
If it is not a GPA against which there is any consideration or creating any interest in the property, then first you have to revoke the GPA and register such a revocation.
You have to notify BY REGISTERED POST, the person to whom you have given the Registered GPA, that the said GPA stands revoked.
Thereafter, you can apply for I.P. by getting in touch with a lawyer in your area.
(Please be sure, wherever there is no documentary proof/evidence that you took loan/money from anybody, they will not be able to recover anything from you through legal means).
Tracey
(Querist) 02 June 2014
Hello Anirudh thanks for the reply.
There was a bank loan until December 2013 which was cleared and closed in Janurary 2014 by going for the loan from the private financier.
Thanks
malipeddi jaggarao
(Expert) 02 June 2014
1. Send a cancellation notice to GPA holder under Regd.Post with Ack.Due.
2. Obtain a certificate of GPA registered in Jan 2014.
3. List out your properties.
4. List out the loans which have some documentary evidence.
5. If the assets are more than the liabilities call for a meeting of all creditors and convince them to allow you to sale the property so that you can pay-off their debts. this will save you from legal process. You can even neogitate to repay lesser amount, wiaver of interest etc.
6. If the assets are less than the liabilities, find out a advocate and hand-over the list of creditors, list of properties, documents relating to properties, certified copy of GPa, your cancellation notice and GPA holder acknowledgement and ask him to prepare and file IP.
T. Kalaiselvan, Advocate
(Expert) 02 June 2014
I agree with the advise and suggestion rendered by expert Mr. Devajyoti Barman which will be more proper to come out of the crisis. Contact a lawyer knowledgeable on the subject and proceed as per the advise.
Rajendra K Goyal
(Expert) 03 June 2014
Agree with the expert Deva jyoti Barman ji.
Raj Kumar Makkad
(Expert) 04 June 2014
Well advised by experts hence no more to add.
