Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

company worker (business)     23 March 2009

Insolvency

 There are so many  criminal cases pending against Mr.A .under 138 NI Act. Due to his very poor financial condition he is willing to file Insolvency petition .Mr.A  has a legal doubt  about his pending criminal cases . if The Court  found him as insolvent what will be the position of the pending criminal cases under 138 of NI Act?



Learning

 2 Replies

Mahesh (Asst. General Manager (Law))     24 March 2009


The law of Insolvency in India is primarily governed by the Presidency Town Insolvency Act, 1909 & Provincial Insolvency Act, 1920. The Act applies to individuals, firms, HUF, etc., but does not apply to registered associations and companies.


 


The law of insolvency is designed to meet the case of an individual who has no reasonable prospect of being able to pay his debts. Its aim is three fold:


 



     


  1. To adjudicate an insolvent debtor and to protect him;

  2.  


     


     


  3. To arrange for realisation and equitable distribution of his properties among the creditors in the most expeditious and economical manner;

  4.  


     


     


  5. To discharge the debtor giving him new start in life free from the demands of his creditors.

  6.  




As discussed above, it is only a civil remedy and it does not preclude criminal libility, ie., his liability under criminal law continues.

SINDHU (23)     29 October 2009

WHEN A PERSON HAS NO MEANS TO PAY HIS DEBT WHY CAN'T THE LAW BE LINIENT?

WHY SECTION 138 IS SO RIGID?


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register