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How to file an insolvent petition
20-Jun-2023 (In Civil Law)
We have restuarant in rajjahmundry... We got losses . So strucked in barriwings .. Almost 1cr . We cant pay right now.. Some people are already filed check bounce . What should i do . I want to know about insolvent petition
Dear,
File an IP( Insolvency Petition) under the provisions of the Provisional Insolvency Act of 1920 at a district court having jurisdiction in which the debtor resides or carries on business.Once an Insolvency Petition is filed, the court can appoint an interim receiver after presentation of the Insolvency Petition or before an order is made. On making an order of adjudication, the property of an insolvent individual would vest with the official assignee or the receiver and becomes divisible among the creditors. However, one thing is to be kept in mind that filing of the Insolvency Petition does not absolve you from your liabilities and further, towards the discharge of your liability, you have issued cheques which subsequently got bounced, a cheque bounce case is maintainable against you and the court will proceed against you under Section 138 of NI Act irrespective of filing of Insolvency Petition.
File an IP( Insolvency Petition) under the provisions of the Provisional Insolvency Act of 1920 at a district court having jurisdiction in which the debtor resides or carries on business.Once an Insolvency Petition is filed, the court can appoint an interim receiver after presentation of the Insolvency Petition or before an order is made. On making an order of adjudication, the property of an insolvent individual would vest with the official assignee or the receiver and becomes divisible among the creditors. However, one thing is to be kept in mind that filing of the Insolvency Petition does not absolve you from your liabilities and further, towards the discharge of your liability, you have issued cheques which subsequently got bounced, a cheque bounce case is maintainable against you and the court will proceed against you under Section 138 of NI Act irrespective of filing of Insolvency Petition.
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Adv. B. Srikiran
Hyderabad | 500+ Answers
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Insolvent petition is when a person or individual or businesses barrows money for some purpose from different sources and not in the position to repay them back and having nothing with them (it means assets and properties) if having anything in insolvent petition they will take consideration and put auction on it and recover what ever the money if not that amount will become a bad-debt to the lender.
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Adv. Sharath Chandra Murthy
Hyderabad | 100+ Answers
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