Deekshit Kumar (private) 10 December 2021

Money recovery suit - insolvency petition

Hello Sir,

Can the respondent in an insolvency petition file suit for recovery of money simultaneously appearing in the IP.

Quick Summary

This discussion explores whether a respondent in an insolvency petition can simultaneously file a money recovery suit. The general consensus is that any recoverable amount should be addressed within the insolvency proceedings. It's advised to focus on resolving the insolvency petition first, potentially by challenging it if assets exist or have been illegally transferred, rather than initiating a separate money suit.

3 Replies

P. Venu (Advocate) 11 December 2021

You have not posted the material facts.

G.L.N. Prasad (Retired employee.) 11 December 2021

When the borrower has already filed an insolvency petition, what is your point in filing a separate money suit, instead of first trying to get the petition quashed with proper grounds stating in court that there are assets or the borrower illegally transferred the assets with illegal motives?