quesPDC given. Can we declare bankruptcy? What consequences can we face?

We suffered huge loss in business. We lost everything and our property and gold was also given to people to repay our debts. still there are 2 people left to whom we have given post dated cheques and a promissory note as well. NOw they are pressurizing us to pay the money. SInce now that we have no money left. What will be the consequences if we declare bankruptcy? Can they still take any legal action against us?

  • ansFiling for bankruptcy is not a very common practice in India, but it can be a good option for those who are heavily indebted and see no chances of repayment in near future.

    However, n Bharath N Mehta v. Mansi Finance Ltd, the court opined that the criminal proceedings inititated against the insolvent under certain provision of the Negotiable Instruments Act cannot be stayed even if the same debt formed the basis of a civil proceeding initiated under any of the aforementioned Acts.

    Therefore , in view of above judgement, the other person can take legal action against you.

  • ansyou cannot declare bankruptcy on your own,you have to file a petiton before the court,seeking insolvent declaration from the court ,you can file in you district court,then if the ocurt feels it may declare you insolvent

    Advocate Ritesh Isaac

      Bengali Market, Delhi

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Recovery Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
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