Vijay Apte 20 January 2020

insolvancy

i was director of pvt ltd company at pune. company took unsecured loans from various banks. last 2 years company is NPA. hence no interest paid. Now all banks are filing cases under 138.
can i declare personal insolvancy & save myself going to jail???
i hv already lost everything cash / assets everything, so no property is on my name

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Quick Summary

If your private limited company has become a Non-Performing Asset (NPA) and banks are filing cases under Section 138 of the Negotiable Instruments Act, you might be wondering about personal insolvency. While the company can initiate insolvency proceedings under Section 10 of the IBC, and creditors can file under Section 9, personal insolvency applications typically do not absolve you of criminal liabilities like cheque bounce cases. These criminal cases will likely continue regardless of the company's insolvency proceedings.

3 Replies

Sunil Nair 20 January 2020

As a corporate debtor, the company can file insolvency application before NCLT under section 10 of IBC.
As the company have only unsecured loans, operational creditor can file NCLT aplication under section 9 of IBC.
All criminal cases including section 138 will co tinue.
You cannot file personal insolvency application

Sunil Nair 20 January 2020

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 21 January 2020

1. Filing "insolvency proceedings" is for your civil liability. However cheque bounce case is a criminal liability and would not absolve you of the Criminal Liability.

Keep Smiling .... Hemant Agarwal
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