Subject: Filing under Section 138 of NI Act – Cheque Presentation and Loan Acknowledgment in Insolvency Petition
Dear Advocate
I hope this letter finds you well. I am writing to seek your legal advice and assistance concerning a loan of ₹46,00,000 that I had extended to [Debtor's Name], who has now filed an insolvency petition. In his insolvency petition, [Debtor's Name] has acknowledged the loan of ₹46,00,000 that was taken from me.
I currently hold four cheques, each valued at ₹5,00,000, totaling ₹20,00,000, from [Debtor's Name]. Since he has filed for insolvency, I would like to understand how to proceed with presenting these cheques. Specifically, I would like to know:
Can I still present these cheques despite the ongoing insolvency petition?
If I file a case under Section 138 of the Negotiable Instruments Act for dishonoring of these cheques, will the insolvency petition affect the outcome of my case?
Is there any advantage in initiating the proceedings under the NI Act, considering that [Debtor's Name] has acknowledged the loan amount in his insolvency petition?
