I filed Insolvency Petition in District court and even First hearing not happened due to covid and first hearing is on December only.
can I use my bank account for transaction?
can I apply for passport?
can I purchase Insurance policy?
becos even if I go for work everyone asking bank account for salary credit.
can anyone gimme correct information.?
Basically, the rules and regulations of bank strictly state that 'there shall be No account should be opened in the name of an un-discharged insolvent'.
Once an insolvency petition has been filed in the Court, in respect of a customer of the bank, the bank shall immediately stop paying cheques drawn by the customer regardless of the fact that the cheque dated before or after the date of petition.
Thus, neither can an account be opened by an insolvent person nor will the bank entertain such transactions.
Now, coming to your concern regarding the passport let me inform you that passport authorities can't deny to issue a passport to a person other that the basis that have been mentioned u/s 6 of The Passport Act, 1967.
