A person is threatening to put stay order on my business A person is threatening to put stay order on my business

1 year ago

Person threatening to put up a stay order on my business. He has no partnership in my business and no documents stating that any of his finances were used in my business . I also wanted to know about the procurement of stay order on a business and about the documents that would be required to do so

Kishan Dutt Kalaskar

Responded 1 year ago

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A.Dear Sir,
If he is not a partner of your business he cannot bring any stay order from any Court. It seems unnecessarily he is threatening you. Better you file CAVEAT and the benefits are as follows:
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Caveat Petition in Civil (Yes) and Criminal Cases (No)

Section 148A of the civil procedure code 1908 allows for the filing of a caveat petition. The caveat is a Latin word that means ‘to make someone aware.’ Caveats ensure that courts do not issue ex parte orders. The right to file a caveat is established by Section 148A of the CPC if any of the following conditions are met:
• When an application is likely to be filed in connection with an upcoming suit or procedure
• When an application has been filed in connection with litigation or proceeding that has already begun and is still pending.
The right to file a caveat is substantive in nature since it can be filed by a third party to the complaint who is not a stranger to the lawsuit if he has the right to present in court. In Kattil Vayalil Parkkum Koiloth v. Mannil Paadikayil Kadeesa Umma, the Court held that a complete stranger to the litigation or processes may not file a Caveat petition.
Applicability of a Caveat
As the Court concluded in the case of Deepak Khosla v. Union of India & Ors, Section 148A of the CPC only applies to civil processes; it does not apply to criminal proceedings or petitions filed under Article 226 of the Indian Constitution.
Duration for Filing a Caveat
According to Section 148-A(5), a Caveat will be in effect for 90 days after it is filed, during which time the court and the Caveatee must notify the caveator. If the caveator wants to be alerted before the court takes any action after the 90-day period has passed, the caveator must file a new caveat during the 90-day term while the previous caveat is still active.
Effect of Filing a Caveat
After the caveat has been duly lodged and a notice of the same has been served on the applicant who has already commenced or is expected to initiate proceedings against the caveator, the court has the responsibility to notify the caveator. It’s important to remember that if the court or the applicant fails to notify the caveator who filed the caveat petition, the decision or decree issued without notice is null and void.
Caveat Petition v. Legal Notice
• A legal notice is not the same as a caveat petition. A caveat petition is a preventative measure taken by a person in anticipation of a lawsuit being filed against him, whereas a legal notice is a warning to the opposing party from someone who is intending to sue them
• When the caveator expects the opposing party to submit an application in any litigation or proceeding against him or her, he or she files a caveat petition. When an individual has a grievance and plans to initiate legal action against the other party, a legal notice is sent
• A caveat petition provides the details of the expected application that will be filed against the caveator in a suit or proceeding that has already been started or is about to start. A legal notice contains claims and facts about the issues that the person issuing the notice is facing and requests redress from the other party
• When an application is filed against a caveator, the court will serve the caveator with a notice of the application. The applicant/opposite party will also be served with the caveat petition by the court. A legal notice is delivered to the opposite party by the person who issued it by registered mail
• The caveat petition is only effective for 90 days after it is filed. The caveator has a right to be informed, and if the application is filed within 90 days of the caveat, the caveator can request a hearing. A legal notice will state the time frame in which the other party must reimburse or address the person who is giving the notice. If the other party does not respond to the grievance within the time frame specified in the notification, legal action can be taken against them, and a lawsuit can be filed.
Caveat Petition Highlights
• The court is unable to make any decision without first telling the caveator.
• It protects the caveator’s right to be heard in a court of law.
• A caveator petition has a three-month limitation period (90 days).
• If a civil petition has been filed against the caveator connected to the matter stated in the petition, the court must notify him.
• Without information, any order or judgement issued by the court against the caveator will be unenforceable.
• Under Article 226 of the Indian constitution, a caveat petition cannot be brought against criminal proceedings for a writ petition.


Can you File a Caveat Petition in Criminal Cases?
Given that the substantive law regulating the criminal procedure, the Code of Criminal Procedure, contains no provision for the caveat. Therefore an applicant’s right to lodge a caveat is unenforceable. Due to the lack of legal backing for the right to put forth a caveat for a criminal case, no repercussions follow. As a result, no order may be issued to recall the admission and stay orders in criminal proceedings on account of a caveat petition being filed.
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