M. PIRAVI PERUMAL (Advocate & Consumer Rights) 24 March 2009

Insolvency Petition

One of my client has filed Insolvency Petition before the Court of Law, in which he has arrayed the persons from whom he received payments as advance for delivery of machines and also money lenders from whom he has borrowed money.

Now, one of the respondent in the insolvency proceedings has lodged a police complaint. The police has registered a case u/s 420 IPC against my client. Whether a case u/s 420 IPC can be made out when in the insolvency proceedings defacto complainant is respondent.

That my client has also revealed in the insolvency proceedings about the receipt of the amount.

Shall I file move HC for quashing the FIR ?

or

Shall I move for anticipatory bail ?

Expecting the valuable opinion of the learned experts.

Learned Experts kindly provide me any citations too in this regard. I am ready to provide any further clarifications required by the Learned Experts.

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9 Replies

adv. rajeev ( rajoo ) (practicing advocate) 25 March 2009

When ur client has revealed about the receipt of the amount it does not amounts to cheating. When police have regd a complaint. u can file anticipatory bail and then challenge it.

Y V Vishweshwar Rao (Advocate ) 26 March 2009

Dear Perumal

I inform that the Sec 23 of the Insolvency Act provide a releif to your clinet when he is arrested in execution of a Decree for recovery of the Amount .If the IP Petitioner is arrested an order for hsi release can be passed by Insolvency Court after filing the IP , but the orders can be passed only after arrest for his release .

Under Sec 31, after adjudication Order in IP , the IP Petitiooner can file a petition for Protection Order

As you mentioned the Police complaint is given by one of the Creditor who is respondent in IP . On his application the FIR is issued .

I am of the view that you can take other steps as mentioned by you , and also file a True copy of the IP Petition and requst the SHO to keep the FIR pendign or to suspend till the final disposal of the IP .

n.k.sarin (advocate) 29 March 2009

I agree with the view of Mr.Rao.

Nilotpal Datta (Teacher) 23 July 2011

Sir, My father is Retd.Officer and have taken loan banks & credit cards from 2 banks, for last 4 months we are finding it very difficult to pay my the emi's coz. of financial condition. All these days (from last 4 years) He was paying the emi's & min. payment to credit cards reguarly, but since Mar 2011 He is unable to pay the Credit Cards payments.

My Father's monthly pension is 16k and he pay EMI of 10900 + 3500, so he can't pay the Credit Cards & I am unemployed so I can't help him nor do I can pay my Education Loan of 6 lakhs.

We don't even have money to fight my case if I go for insolvency petition & guide me with a good advocate to solve this matter

Pls. help me daily loan recovery persons harrase Us here
Pls. replay to this question as soon as possible

Thanking you

Nilotpal

Kolkata

K. GOPALAKRISHNAN (ADVOCATE) 25 July 2011

Hi there,

RAJA.V (SALES MANAGER) 09 August 2011

DEAR SIR,

DUE TO MY BUSINESS WAS LOSS. NOW I HAVE LOAN IN 15 LAKHS IN PRIVATE PARIES. BUT I HAVE NO MONEY. BUT THAT PARTIES GIVE TORCHAR. I HAVE FILE IN IP?.I AM SEARCHING JOBS NOW. INCASE I HAVE FILE IN IP ANY AFFECT MY JOB. ONLY JOB INCOME IS MY SOURCE.GIVE IDEAS SIR.

SRINIVAS AYYALASOMAYAJULA (0) 22 June 2012

DUE TO HEAVY LOSS IN MY BUSINESS I AM UNABLE TO PAY PERSONAL LOAN AND CREDIT CARD DUES. AS I SUFFERING WITH HEART DISEASE I RESINED MY JOB AND I AM NOT HAVING MONTHLY INCOME FOR THE PAST 2 YEARS. I AM GETTING HARRASSMENT FROM BANKS TO PAY MY DEBTS. I AM NOT ABLE TO PAY THE DUES IMMEDIATELY. I EXPECT MY FINANCIAL POSITION WILL BE MUCH BETTER AFTER 6 OR 8 MONTHS. CAN I FILE INSOLVENCY PETITION IN COURT OF LAW. I AM STAYING AT HYDERABAD. PLEASE ADVISE ME.

Krishna Gulagari (LAWYER) 27 December 2012

Yes, you can file insovency petition before the concern court, and will get deffenant relief which get u out of present state of mental tention and unrest all you need to do is to approch a lawyer with a list of your creditors.

Raawindur (Partner) 22 December 2013

Hello,

Briefly about my background - I'm aged 45 years and had worked in corporate companies for more than 20 years till 2010. I started my own business in 2011 with my savings and some borrowings from my family. But the business didn't do well despite working hard to make it successful. Kept running the business for more than 2.5 years in the hope that it will improve after sometime. But the situation turned from bad to worse with each passing day. Kept taking 'unsecured' loans from banks and friends for the monthly expenses to sustain the business. The burden of repayment kept increasing and finally few months back I had to shut down my business totally. The stress affected my health severely. Since then I have not been earning any income. Even if I take up a job I will not be in a position to clear the monthly instalments of the loans.

In this background, I'm thinking of filing Insolvency Petition. Kindly let me know the following -

1. Can I file IP?

2. How much time does it take for the Court to pass the order?

3. What is the process of declaring the petitioner as 'Insolvent'?

4. I heard that a team deputed by the Court will inspect the house and its articles to decide any property for repayment. Would like to know that since all my loans are 'unsecured' from the banks and also from friends, would it still be necessary for the team deputed by Court to inspect my house?

5. What are the legal costs of the lawyer?

6. What are the consequences of being declared 'Insolvent'?

Request you to help me with info as per the points raised above. Thanks