Legal Question in Credit and Debt Law in India
personal loan insolvency filling
Sir, If any bank files a suit against the defaulter under negotiable instrument act 138, does the defaulter have right to declare for insolvency in local court which is other than the court where bank has filed their suit, n ll it help in holding the bank's proceedings under their filed suit, like a stay order or similar from local court,where the defaulter has filed for insolvency.
2 Answers from Attorneys
Re: personal loan insolvency filling
The bankruptcy proceedings may help in stalling the recovery proceedings but may not stall the criminal proceedings. However, the insolvency petition may be filed in the local court; the insolvency court may call for the records of recovery cases and club the same with the insolvency case.
Re: personal loan insolvency filling
Hello.
Good Morning.
You may file insolvency petition in the local court.
In this case the court may call for the records of the recovery and join this with the insolvency case.
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