Insolvancy

Insolvency petition can be filed at a district court having jurisdiction in which the debtor resides or carries on business. If the debtor has already been arrested or imprisoned, then the insolvency petition can be filed where he/she is in custody. 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.

First of all thanks for reply. One more thing I wanted to ask that he has opened company account which is showing only RE 500 balance and his office is also on rent and he has no personal property like flat, etc.. then can he file insolvency petition? He has given post dated cheques to his creditors too.

File with the help of some lawyer. He will observe the required process.

 

Your supplementary information without the main information about assets and liabilities and the background of the case has no relevance at all.