LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sridhevi (education)     03 August 2024

Ip ,cheque bounce and property on spouse

Peron by name ravi had given cheque wherein it got bounced of 10 lakhs and he not attending cheque bounce case in court in telangana.When we enquired we came to know that house is in name of his wife in AP.He also filed for Insolvency

Can you please help can we attach house in name of spouse in chequ bounce case and in IP



Learning

 3 Replies

T. Kalaiselvan, Advocate (Advocate)     03 August 2024

There is no provision in law to attach the house property in a cheque bounce case filed under section 138 NI act even if the house is on his name.

The cheque bounce case has nothing to do with his insolvency case , hence you may have to proceed with the cheque bounce case itself

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     03 August 2024

In India, the answer is a bit complex. Here's a simplified explanation:

 

*Cheque Bounce Case:*

 

- Under Section 138 of the Negotiable Instruments Act, 1881, the accused (drawer of the cheque) is liable for punishment.

- The property in the name of the spouse cannot be attached directly in a cheque bounce case.

- However, if the court finds that the accused has willfully defaulted on the payment, the court may order attachment of the accused's properties, including those in the name of the spouse, under Section 141 of the Negotiable Instruments Act.

 

*Insolvency and Bankruptcy (IP) Case:*

 

- Under the Insolvency and Bankruptcy Code, 2016 (IBC), the resolution professional may attach properties of the debtor (including those in the name of the spouse) if they are considered assets of the debtor.

- However, the IBC provides some protection to the spouse's properties under Section 238, which states that the resolution professional shall not take possession of properties that are solely in the name of the spouse or are exempt under other laws.

 

To attach a property in the name of the spouse in either case, the court or resolution professional must establish a clear connection between the property and the accused/debtor's assets. Additionally, the spouse's rights and interests in the property must be considered.

 

Please consult with a legal expert specializing in criminal law, insolvency, and bankruptcy to get specific guidance on your situation.

P. Venu (Advocate)     03 August 2024

Yes, no definite suggestion is possible unless the documents are perused and issues discussed.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register