Insolvency and cases u/s 138
YOGESH BHATIA
(Querist) 03 July 2012
This query is : Resolved
sir
i m in deep financial crisis. i had taken cc limit of Rs 2crores from a nationalized bank with my residence, office and 4lic policies as collateral security. total market value of them is appx 1.7 crores wheras total o/s amount in cc account is 2.42 crores as per letter dtd 23-5-12 from the banker which has declared my account as an npa on 31-3-12. in addition to it i have taken unsecured personal loans from 8 banks/nbfc amounting to around 1.1 crores and have been unable to repay emi since last october. 2-3 of these banks/nbfcs have started proceedings u/s 138 in various courts and some have even gone to the extent of going to court u/s 9 for attachment of property or under arbitration.but since i dont have the money, i have been unable to follow court directions due to which nbws have issued against me.
with no other option , i am thinking in terms of declaring myself as bankrupt.
but before that i need some advice- should i go for it in high court or in lower court? more importantly would i get relief from court in other related cases u/s 138 also if i go for insolvency.
also since my property is in the name of my wife is there any law which can prevent the banker from selling it as it is the sole dwelling unit for her, even if it is mortgaged.
my wife is co-guarantor in every case.
yogesh bhatia
ajay sethi
(Expert) 03 July 2012
if you are in mumbai you need to obatin orders declaring you as insolvent from bombay high court .
merely because you are insolvent would nt absolve you from liabilty under section 138 .
since your wife is co gurantor and property is mortgaged to banks they will try to auction the same to recover bank dues
YOGESH BHATIA
(Querist) 03 July 2012
sir i reside in delhi. is there any protection that i can get from 138 cases, as they have been filled from different cities by the bankers, if i go for insolvency in delhi high court
yogesh bhatia
ajay sethi
(Expert) 03 July 2012
no protection merelty beacuse you are insolvent dosent absolve you of liability to be punished for dishonour of cehque
SAINATH DEVALLA
(Expert) 04 July 2012
Mr.Bhatia,Don't expect anyprotection from 138 cases,they conclude only on the merits of the case.The chances are only 50/50.
