Report No. 26

Insolvency Laws

Contents
	Insolvency Laws
	Genesis of Report
	Historical Background
	Consolidation of the two Insolvency Acts into one
	Insolvency jurisdiction of subordinate courts and appeals
	Insolvency jurisdiction of High Courts in Presidency Towns
	Official Assignees and Official Receivers
	Jurisdiction of Insolvency Courts
	Acts of Insolvency
	Discharge
	Relation back
	Reputed ownership
	Burden of proof regarding voluntary transfers
	Fraudulent preference
	"Void" and "voidable"
	Period of limitation in case of fraudulent preferences
	After-acquired property
	Priority of debts
Appendix I	Proposals as Shown in the Form of a Draft Bill
	Index to Appendix I
	The Insolvency Bill, 19....
Chapter I	Preliminary
1.	Short title, extent and commencement
2.	Definitions
Chapter II	Acts of Insolvency
3.	Acts of insolvency
Chapter III	Insolvency Petitions
4.	Petition of insolvency
5.	Conditions on which creditor may petition
6.	Conditions on which debtor may petition
7,8.	Contents of petition and Verification of petition
9.	Appointment of interim receiver
10.	Admission of petitions
11.	Release of debtor
12.	Interim proceedings against the debtor
13.	Protection order before adjudication
14.	Duties of debtors
15.	Procedure at the hearing of the petition
Chapter IV	Adjudication
16.	Order on creditor's petition
17.	Order on debtor's petition
18.	Order to specify period for discharge
19.	Effect of an order of adjudication
20.	Stay of pending proceedings
21.	Suit by Official Assignee and insolvent's partners
22.	Publication of order of adjudication
23.	Relation back1 of insolvency
24.	Protection order after adjudication
25.	Power to arrest after adjudication
26.	Redirection of postal articles
27.	Insolvent's schedule
28.	Meetings of creditors
29.	Public examination of insolvent
30.	Power to annul adjudication
31.	Power to cancel one of concurrent orders of adjudication
32.	Proceedings on annulment
Chapter V	Compositions and Schemes of Arrangement
33.	Submission of proposal and acceptance by creditors
34.	Approval of proposal by court
35.	Order on approval
36.	Power to re-adjudge debtor insolvent
Chapter VI	Discharge
37.	Discharge
38.	Cases in which court must refuse an absolute discharge
39.	Power to annul adjudication for failure to apply for discharge
40.	Renewal of application and variation of terms of order
41.	Duty of discharged insolvent to assist in realisation of property
42.	Effect of fraudulent settlements on discharge
43.	Effect of order of discharge
Chapter VII	Administration of Property
44.	Debts provable in insolvency
45.	Mutual dealings and set-off
46.	Persons injured by disclaimer may prove
47.	Proof of debts
48.	Description of insolvent's property divisible amongst creditors
49.	Second or subsequent bankruptc
50.	Intimation of after-acquired property
51.	Property in possession of insolvent
52.	Restrictions on rights of creditor under execution
53.	Duties of court executing decree or order as to property
54.	Avoidance of voluntary transfer
55,56.	Avoidance of preference in certain cases
57.	Protection of bona fide transactions
58.	Validity of certain payments to insolvent
59.	Recovery of property or proceeds thereof in case of void or voidable transactions
60.	Possession of property by Official Assignee
61.	Seizure of property of insolvent
62.	Appropriation of portion of pay or other income to creditors
63.	Inspection of goods pledged
64.	Copyright
65.	Disclaimer of onerous property
66.	Disclaimer of leaseholds
67.	Power to call on Official Assignee to disclaim
68.	Power for court to rescind contract
69.	Power for court to make vesting order in respect of disclaimed property
70.	Power to require information regarding insolvent's property
71.	Power to issue commissions
72.	Priority of debts
73,74.	Rent due before adjudication
75.	Calculation of dividends
76.	Right of creditor who has proved his debt after declaration of dividend
77.	Final dividend
78.	No suit for dividend
79.	Management by and allowance to insolvent
80.	Right of insolvent to surplus after payment in full
81.	Credit to Government of unclaimed dividends
82.	Committee of inspection
Chapter VIII	Summary Administration
83.	Summary administration
Chapter IX	Administration in Insolvency of Estates of Deceased Persons
84.	Administration in insolvency of estates of deceased persons
85.	Vesting of estate and mode of administration
86.	Payment or transfer by legal representative
87.	Saving of Jurisdiction of Administrator-General
Chapter X	Official Assignees and Special Managers
88.	Official Assignees
89,90.	Official Assignee to be a corporation sole
91.	Duties and powers of Official Assignee
92.	Declaration and distribution of dividends
93.	Discretionary powers and control thereof
94.	Control of court
95.	Power to appoint special manager
96.	Delegation of powers to Official Assignee
Chapter XI	Jurisdiction and Procedure
97.	Courts having jurisdiction in insolvency
98.	Restrictions on jurisdiction
99.	Jurisdiction to decide questions
100.	General powers of courts
101.	Other powers
102,103.	Powers of the High Court to control insolvency proceedings
104.	Consolidation of petitions
105.	Power to substitute petitioner in certain cases
106,107.	Exemption of corporation, etc. from insolvency proceedings
108,109.	Proceedings in partnership name or assumed name
110.	Special provisions with respect to High Courts having jurisdiction in insolvency
111,112.	Power to dismiss petitions against some respondents only
113.	Courts to be auxiliary to each other
114.	Warrants of insolvency courts
Chapter XII	Appeal and Review
115.	Appeal to court against Official Assignee
116.	Appeals against orders of district courts and subordinate courts
First Schedule	Meeting of Creditors
	Meeting of Creditors
Second Schedule	Proof of Debts
	Proof in ordinary cases
	Proof by secured creditors
	Taking accounts of property mortgaged, and of the sale thereof
	Periodical payments
	Interest
	Debt payable at a future time
	Admission or rejection of proof
Third Schedule	Decisions and orders from which an appeal lies to the High Court under section 121(2)*
	Decisions and orders from which an appeal lies to the High Court under section 121(2)*
Appendix II	Notes on Clauses
	Clause 1
	Clause 2
	Clause 3
	Clause 4
	Clause 5
	Clause 6
	Clause 7 and 8
	Clause 9
	Clause 10
	Clause 11 and 12
	Clause 13
	Clause 14
	Clause 15
	Clause 16
	Clause 17 and 18
	Clause 19
	Clause 20 and 21
	Clause 22
	Clause 23 and 24
	Clause 25 and 26
	Clause 27 to 29
	Clause 30 and 31
	Clause 32
	Clause 33
	Clause 34 to 36
	Clause 37
	Clause 38
	Clause 39
	Clause 40
	Clause 41 to 43
	Clause 44
	Clause 45 to 47
	Clause 48
	Clause 49 to 51
	Clause 52
	Clause 53 and 54
	Clause 55 and 56
	Clause 57
	Clause 58 to 60
	Clause 61 to 64
	Clauses 65 to 69
	Clause 70
	Clause 71 to 75
	Clause 76 to 80
	Clause 81 to 85
	Clause 86 to 90
	Clause 91 to 95
	Clause 96 and 97
	Clause 98
	Clause 99
	Clause 100 to 104
	Clause 105 and 107
	Clause 108 to 111
	Clause 112
	Clause 113 to 118
	Clause 119 and 120
	Clause 121 to 125
	Clause 126 to 130
	Clause 131 to 135
	Clause 136 to 139
Appendix III	Comparative Tables
Table A	Showing the Provision in the Provincial Insolvency Act, 1920, and the Corresponding Provision, if any, in Appendix I
Table B	Showing the Provision in the Presidency-Towns Insolvency Act, 1909, and the Corresponding Provision, if any, in Appendix I
Appendix IV	Number of Undischarged Insolvents under the Presidency Towns Insolvency Act, 1909, in the three High Courts
Table No. 1 to 3	Bombay, Calcutta and Madras