Legal Question in Bankruptcy in India
Limitations of the Bankruptcy law
Sir,
I am from Goa and I had taken a loan under the PMRY scheme to purchase a Xerox machine and could not repay the entire amount but only a part of it. How ever the bank has filed a case in the collectorate for its recovery. There are no Guarantors neither any security, only the machine has been hypothecated. I live in our ancestral house with my mother and my brother and most of the things in the house are theirs. The bank however has told the Mamladar/ Dy. Collector that these things in the house are mine. Now that I am unable to repay the loan the mamladar will order for attachment of the Xerox machine along with the other things which are not mine but have been stated by the bank to be mine. I am planning to file for bankruptcy.
I would therefore like to know as to how can I prevent my mother's/brother's things being attached. They have misplaced their receipts and we do not have any proof that the things are theirs.
Please help me as soon as possible as the next hearing is in the last week of August.
Also I wish to know if in the event I file for bankruptcy is imprisonment mandatory for me ?
Thank you
--name removed--
1 Answer from Attorneys
Re: Limitations of the Bankruptcy law
I understand your problem.
No imprisonment follows the filing of a bankruptacy/insolvency application. Actually when you file it, the court automatically issues notice to all and will stay all proceedings against you for recovery of amounts due from you.
Your mother and brother will have to file an injunction suit restraining the Government from taking away their things. An injunction issued by the court will prevent the Government from executing the order. However you need to give a notice to the Government under Section 80 CPC and file an application to dispense with the notice period. Your mother and brother will need to go to a Advocate for these things. They can prove that the things in the home is their property earned through their personal income by filing an affidavit in court.
That said, I think you will have difficulty filing an Insolvency application. You say that the home in which you are living is your ancestral property. Do you have any share in it? if so how can you file for insolvency?
I understand your business failure. But the money of the bank is also public money and you may have difficulty filing an insolvency application in view of the right to your ancestral property. You may need to check if you have a right to the property or not with an Advocate
N. Ramaswami
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
