PDC 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?
Filing 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.
you 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 IsaacBengali Market, Delhi
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