AboutJaved Razack Expertise If you have any question on Indian Laws concerning Civil disputes on property, recovery or any other contractual obligation, Criminal disputes on Indian Penal Code, Negotiable Instruments Act, Company matters, Income Tax, Arbitration, Family and matrimonial issues, please ask me.
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Expert: Javed Razack Date: 7/5/2008 Subject: NEED URGENT HELP
Question QUESTION: sir details of my case...
I use to have many credit cards issued between 1999 -2004 and all of them were issued from delhi.I was a regular user of the Cards and was paying all the
dues on time till last August (2007).I had undergone a financial crisis due to loosing all my money in share market and i got bankrupt.I do not have any
movable or immovable property on my name nor I do any job or business .I stay in a rented house and somehow surviving myself doing small works here and
there.
Now the issue is there that as I have not made the payment of the banks since last august ,they have started taking legal action against me ,I am giving
details of few of the cases which have been imposed on me,though I have not served any notice but got the papers photocopied somehow.
(1).They had filed case U/S XXXVII OF THE CODE OF CIVIL PROCEDURE,1908 IN COURT OF SENIOR CIVIL JUDGE,DELHI.
(2).They had Filed CASE U/S 406 and 420 I.P.C,IN CHENNAI IN COURT OF X METROPOLITAN MAGISTRATE,AND XMM issues NBW under section 70 CODE OF CRIMINAL PROCEDURE
though there were no notices being sent prior to this.
Sir, I want to ask that what is the remedy available to me as I do not have money to do any settlement with the banks as I myself surviving very
difficultly.WHat should i do,I cant hire a lawyer as lawyers in Delhi are out of my range. I am totally helpless and clueless.Please give me some guidance
and show me the path.
Some of my friends have suggested me that I should run away from my address ,sir is it the right solution ,what are the consequences of it..
I might be able to settle them in 4-5 years time but the bank is not agreeing to it,at present this are the two cases but in the near future there could be
many,I am totally lost and clueless.
Some of my friends have told me that in Civil cases the court will do a decree ,but as I have told you earlier I have nothing on my name,is there is anyway
for me .
My all hopes are on your guidance as my life is all black and I am into high depression.
thanks sir
sir can i apply bail in Delhi,and can i save my self from future nbw if any being issued by court.
ANSWER: Hello Vikas Bansal,
If you are residing at Delhi and have the knowledge of the your creditors dues and their complete address, then the only option is to file for insolvency under the Laws of Insolvency and need to show to the court that you have lost your entire money and the remains in the form of stocks in companies are only assets that can be appropriated in discharge of the liabilities that these banks are demanding.
You may on filing seek interim orders including restrain from being arrested in any case(s) filed by the banks and other creditors which the Court will grant upon being satisfied that you have no means of survival. A reasonable lawyer will be able to assist and guide you and you may negotiate the fees prior to handing him over the case.
As for applying bail at Delhi is concerned for a crime registered in Chennai, you will be spending twice the cost as the Delhi High Court will only stay your arrest until you file a regular bail before the competent court. You are advised to seek insolvency which will solve all your problems of the court cases as the order of the Court in an Insolvency Petition will serve as blanket until you are either declared insolvent or your plea is rejected by the court after the conclusion of the trail.
I hope this suffice your present query
All the best
Javed Razack
---------- FOLLOW-UP ----------
QUESTION:
My all hopes are on your guidance as my life is all black and I am into high depression.
About insolvency/bankruptcy as I consulted with some lawyers in Delhi.
I think there is some confusion, I do not have any shares as assets secondly about filing my insolvency, I had consulted with some lawyers in Delhi and as per them I am not eligible for it.
They have said that wherever there is public money involved you cannot be an insolvent secondly you should also have a debtor .In my case I only have creditors which are MNC Banks.
Sir kindly advice if you can help in filing insolvency then I can meet you personally and can also do the needful in terms of your charges.
Thanks sir,
BANSAL
Answer Hello Bansal,
I am unable to understand why the court will not take up your case. As for the asset is concerned, it is not required to have any immovable assets, even the household things are assets that are moveable and have some value which you may assess. For the purpose of moving an Insolvency petition seeking declaration as an insolvent you may value your household things and wearing apparels as moveable assets.
Since you have no debtors it would not take away your right to seek insolvency and the fact that you lost your money while dealing in stocks is supported by evidence of the contract notes and statements. File those statements as proof that you have lost your money and cannot discharge your debts by paying to your creditors.
Let the court reject your application as not maintainable and if for any reason your petition is rejected, then you have the option open to challenge it before a higher court and get an order to take your case on file of the court which rejected it.
If a lawyer is not willing to do it, you have the right to seek remedy as party in person and no one knows the facts better than your own self. You may take a copy of the insolvency petition from a lawyer and draft your own and file it. You have to venture into this to come out of it. You create this situation and you alone have the solution to it.
If you have any concerns, do feel free to write to me.
