IBC proceedings against husband

Based on the facts you've described, the legal position depends on several factors, including the jurisdiction, the loan documents, the nature of your husband's company, and whether there is written evidence that the company (rather than your husband personally) agreed to repay the first loan.

If this matter is governed by Indian law, the first issue is whether you are a creditor of your husband's company. If you borrowed money in your own name by mortgaging your investment property and the loan proceeds were used for the benefit of the company, you may have a claim against the company if there is evidence that the company agreed to repay the loan or has acknowledged the liability. Such evidence may include a loan agreement, board resolution, indemnity, guarantee, correspondence, or proof that the company received and benefited from the funds. If the company has defaulted on a legally enforceable financial debt owed to you, you may be entitled to initiate insolvency proceedings against the company under the Insolvency and Bankruptcy Code, 2016 (IBC), provided you satisfy the statutory requirements applicable to a financial creditor and the minimum default threshold. However, if the arrangement was merely an understanding between you and your husband without any contractual obligation binding the company, establishing yourself as a financial creditor of the company may be difficult.With respect to the second loan secured by the jointly owned property, the commencement of corporate insolvency proceedings against your husband's company does not automatically prevent the lender from enforcing its security over the jointly mortgaged property. The moratorium imposed under Section 14 of the IBC applies primarily to proceedings against the corporate debtor and its assets. It does not ordinarily extend to assets owned by third parties, including co-borrowers, co-mortgagors, or guarantors, unless a specific legal provision or court order provides otherwise. Therefore, if you and your husband jointly mortgaged the property, the lender may generally continue to enforce its rights under the loan and applicable security laws despite the company's insolvency proceedings. Your liability will depend on whether you signed as a co-borrower, co-mortgagor, or guarantor and on the terms of the loan documents. You may also have independent civil remedies against your husband for breach of his agreement to discharge both loan liabilities and, depending on the circumstances, additional remedies if you can establish that your consent to the loans was obtained through coercion, undue influence, or misrepresentation. If there is evidence of financial abuse or coercive conduct, those facts may also be relevant in proceedings under other applicable laws. Given the significant financial consequences, it is essential to have the loan agreements, mortgage documents, security documents, and any written communications reviewed by an insolvency and banking law practitioner before initiating proceedings, as the viability of an insolvency application will largely depend on whether the company owes a legally enforceable financial debt directly to you and whether the statutory requirements under the IBC are met