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When we can't file insolvency petition?

Querist : Anonymous (Querist) 19 November 2017 This query is : Resolved 
My friend opened hotel booking business. At present he has taken approximately 45 lacs from diffrent customers for hotel booking purpose. He is saying because of miscalculation we booked hotels room in less prices. He paid more amount to hotel manager. He was continuously trying to satisfy client because it was his mistake. But at last he suffered big loss. Now in his company account only Rs.500 balance. His office and home both are on rent. So he wants file insolvency petition. He has given few of customers post dated cheque. So can he file insolvency petition. No any FIR or case filed by any customer. but now they are telling him that they will file FIR or case under 138 N. I. Act. Please help me.
Vijay Raj Mahajan (Expert) 19 November 2017
If you don't know how to do business why you entered in this field. You committed rates which were much less than what were fixed by hotels and because of this miscalculation lost huge sum of money.
By issuing post dated cheques which if get bounced will lead to prosecution u/s 138 NI Act.
To get order of insolvency from court is also not so easy just to avoid financial liabilities.
You must find financial support from some financial institution to first get rid of the clients whom post dated cheques are issued and than workout how to get relieved out of financial likability of the one source you now get help from.
Insolvency won't help you out of financial liabilities, it only protects from getting arrested and thrown behind the bars, your liabilities continue till you pay them off.
Guest (Expert) 19 November 2017
Well Advised by Advocate Mr.Vijay Raj Mahajan
Querist : Anonymous (Querist) 19 November 2017
Thanks for your kind reply. He is saying I will join job and will try my level best to repay debts. He knows he has done big mistake. But now he wants to rectify it. But he need time for it.
Guest (Expert) 19 November 2017
If he had not issued any Post Dated Cheque he would be safe to some extent.
Guest (Expert) 19 November 2017
An humble pleading with his Creditors on saying please would fetch him the remedy
Guest (Expert) 19 November 2017
If the issues are very serious only an Insolvency Petition could fetch a Remedy
Guest (Expert) 19 November 2017
Discuss in detail with local good Advocate in detail
R.Ramachandran (Expert) 19 November 2017
Your friend is entitled to make use of the provisions of THE INSOLVENCY AND BANKRUPTCY CODE, 2016. Your friend has to consult a lawyer who is practising Insolvency Law.
Ms.Usha Kapoor (Expert) 20 November 2017
If you want to file insolvency petition or creditor insolvency pretition by clicking the following link you'd get information./
https://blog.ipleaders.in/personal-bankruptcy-or-insolvency-laws-in-india/

https://www.indiafilings.com/learn/file-insolvency-petition/
Ms.Usha Kapoor (Expert) 20 November 2017
If you want to file insolvency petition or creditor insolvency pretition by clicking the following link you'd get information./
https://blog.ipleaders.in/personal-bankruptcy-or-insolvency-laws-in-india/
Guest (Expert) 20 November 2017
Your problem clearly smacks artificiality in it.

However, you should not expect any help in hypothetical or fraudulent case.

By the way, where the rest of the balance of Rs. 45 lakhs has gone, when he has only Rs.500/- in his account?

Which are those foolish type of customers, who paid him 45 lakhs of rupees without knowing his credibility.

If he wants to file insolvency case,, after that he should also be ready to face several money laundering cases and cheque dishonour cases, if not yet filed against him. He can't go scot free after declaring himself as insolvent.
Ms.Usha Kapoor (Expert) 20 November 2017
If you appreciate my answer to the above query please give me likes.
Guest (Expert) 20 November 2017
If you don't like my answer, please give me dislike.
Querist : Anonymous (Querist) 20 November 2017
Thanks for your kind reply. Let's see how does it work.I will keep in mind all suggestions.
Querist : Anonymous (Querist) 20 November 2017
what will be the expenses for filing insolvency petition and how much it will take.
Guest (Expert) 20 November 2017
Discuss with Local Advocate


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