Insolvency of company

Querist : Anonymous (Querist) 09 March 2011 This query is : Resolved
I am the proprietor of a manufacturing company. We have taken term loan and working capital loan from a nationalised bank. We have incurred heavy loss during production to one export order and also the customer did not pay back to us due to quality issues. This has resulted in accumulated losses and eroded the Capital invested. Unable to run the factory. I have given my house property as collateral security. I want to save my property before it is auctioned by the bank. Can I file a petition of insolvency ? What are the implications?

Kindly give an expert advise immediately

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Uma parameswaran (Expert) 09 March 2011
You could not escape from liability by filing insolvency. Because bank already have charge over your property. Try to mobilize fund through relatives or friends.If there is any irregularities in the bank proceedings you can approach Court.

Querist : Anonymous (Querist) 09 March 2011
Can I sell my business and settle the bank dues? Alternately, can I have the right sell the property that I have given as collateral and settle the bank borrowering?

Uma parameswaran (Expert) 10 March 2011
Give a request letter to the Bank and ask their permission. I am thinking if it is nationalised bank ,you can also approach Bank Ombudsman also. You can also approach Court for getting immediate relief and against any irregularities or fraud .