Law of Insolvency

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The law of Insolvency has gained greater importance in recent times with the rise in the number of businesses going insolvent in today’s highly competitive environment and open market economy.

The learned author, Dr. Avtar Singh has presented a concise but illuminating commentary on the subject of Insolvency. In this analytical presentation he very efficiently draws attention to the inadequacy of the present law of Insolvency and suggests for a fresh new Act for the entire country.

• Kerala Law Times : 

"Almost all topics arising under the Law of Insolvency have been dealt with. In this small handy volume, the author has provided all that one would need to know in the Law of Insolvency."

About the Author

Dr. Avtar Singh, B.Com., LL.M., LL.D, is a multi-faceted personality, who has adorned his cap with multiple feathers- Author, Advocate, Professor. He has been awarded with numerous prestigious honours like Saraswati Sammaan by the U.P. Government and Vidya Bhushan Sammaan by the Hindi Sansthan in U.P., for his contributions in the field of legal education. In his decades long career he has been a visiting professor of Business Laws at IIM, Lucknow and Reader in Law at Lucknow University.

Titles written by him have been prescribed by many leading universities and have been lauded by both students and teachers. His works and writing style have been appreciated both Nationally and Internationally.

He has followed his signature style of writing in all his works- the most comprehensive study of the subject that he takes in his hands in a simple and lucid language. He has written in both English and Hindi languages.

His list of works include: Business Law, Company Law (in English and Hindi), Competition Law, Consumer Protection: Law and Practice, Contract Law (Easy Law Series), Introduction to Company Law (in English and Hindi), Introduction to Law of Negotiable Instruments, Introduction to Partnership (including Limited Liability Partnership) (in English and Hindi), Intellectual Property Law, Law of Arbitration and Conciliation (in English and Hindi), Laws of Banking and Negotiable Instruments (in English and Hindi), Law of Carriage (Air, Land and Sea), Law of Contract and Specific Relief (in English and Hindi), Law of Insolvency, Law of Insurance, Law of Partnership (Principles, Practice & Taxation), Law of Sale of Goods (in English and Hindi), Negotiable Instruments (in English and Hindi), Textbook on Law of Contract and Specific Relief.

TABLE OF CASES XI
Objects of Insolvency Laws 1
Acts of Insolvency [S. 9, PTIA and S. 6, PIA] 2
Transfer of property for benefit of creditors 2
Transfer of property with intent to defeat or delay creditors 3
Fraudulent preference 5
Departure or seclusion 5
Sale of property in execution of decree 11
Debtor's petition for insolvency 14
Suspension of payments 15
Insolvency Notice [S. 9 Pres.] 18
Act of Insolvency by Agent 28
Who can be Adjudged Insolvent 19
Non-Residents or Foreigners [S. 11, PTIA and S. 8, PIA] 29
Minors 29
Married Woman 30
Persons of Unsound Mind 30
Partners and Partnership Firms [S. 99, PTIA and S. 79(2)(c) of PIA] 30
Joint Debtors 32
Joint Hindu Family 32
Representative Debtor 33
Corporations [S. 8, Prov.] 33
Constitution and Powers of Court 33
Appeals [S. 8, Pres.] 37
The petition 37
Procedure under Presidency Towns Insolvency Act [S. 10] 37
Restriction on Jurisdiction [S. 11] 40
Creditor's Petition [S. 9] 40
Limitation 45
Proceedings on Creditor's Petition [S. 13] 46
Debtor's Petition [S. 14, Pres. and S. 10, Prov.] 47
Procedure under Provincial Act 50
Contents of Petition [S. 13] 50
Withdrawal [S. 14] 52
Consolidation of Petitions [S. 15] 52
Power to Change Carriage of Proceedings [S. 16] 52
Death of Debtor [S. 17] 52
Procedure on Admission [S. 19] 52
What Constitutes 'Admission'54
Interim Receiver [S. 20] 54
Interim Proceedings against Debtor [S. 21] 55
Duties of Debtor [S. 22] 55
Release of Debtor [S. 23] 56
Procedure at Hearing [S. 24] 57
Dismissal of Petition [S. 25] 58
Award of Compensation [S. 26] 60
Order of Adjudication [S. 27] 60
Effects of Order of Adjudication [S. 17, PTIA and S. 28, PIA] 60
Vesting of Property 62
Vesting under Presidency Towns Insolvency Act [S. 17] 63
Vesting under Provincial Insolvency Act [S. 28] 66
Bar and stay of suits and other legal proceedings 68
Appointment of Special Manager [S. 19, PTIA] 71
Notice or Advertisement of Adjudication 71
Subsequent Proceedings 72
Protection Order [S. 25, Presidency and S. 31, Provincial] 72
Arrest after adjudication [S. 32, Provincial, S. 34, Presidency] 72
Schedule of Creditors [S. 33, Provincial, S. 24, Presidency] 72
Debts Provable [S. 34, Provincial, S. 46, Presidency] 73
Annulment of adjudication [S. 35, Prov. and S. 21, Pres] 75
Concurrent Proceedings [S. 36, Prov. and S. 22, Pres.] 78
Proceedings on annulment [S. 37, Prov. and S. 23, Pres.] 78
Meetings of creditors [S. 26, Presidency] 79
Public examination of insolvent [S. 27, Presidency] 80
Composition and schemes of arrangement [S. 38, Prov. and
S. 28, Pres.] 81
Order on Approval [S. 39, Prov. and S. 30, Pres.] 84
Readjudication as Insolvent [S. 40, Prov. and S. 31, Pres.] 84
Control over person or property of insolvent 85
Duties of insolvent in realisation and discovery of property
[S. 33, Pres.] 85
Arrest of insolvent [S. 34, Pres.] 86
Redirection of letters [S. 35, Pres.] 86
Discovery of insolvent's property [S. 36, Pres.] 87
Discharge of insolvent [S. 41, Prov. and S. 38, Pres.] 89
Discharge of proceedings 90
Cases in which absolute discharge refused [S. 42, Prov.
S. 39, Pres.] 91
Annulment on Failure to apply for Discharge [S. 43, Prov.
S. 41, Pres.] 93
Renewal of application for discharge [S. 42, Pres.] 93
Duty of Discharged Insolvent [S. 43, Pres.] 93
Fraudulent Settlements [S. 44, Pres.] 94
Effect of order of discharge [S. 44, Prov., S. 45, Pres.] 94
Administration of Property 96
Property divisible among creditors 96
Property Exempted 96
Property of Insolvent at Commencement of Insolvency 96
After-acquired Property 99
Personal earnings 101
Income 105
Income from trade or business 106
Methods of proof of debts 108
Future Debts [S. 45, Prov.] 108
Debts Provable [S. 46, Pres.] 109
Mutual dealings and set-off [S. 46, Prov., S. 47, Pres.] 112
Secured creditors [S. 47, Prov.] 116
Surrender of Security 118
Interest [S. 48, Prov.] 121
Mode of proof [S. 49, Prov.] 122
Disallowance and reduction of entries in Schedule [S. 50, Prov.] 122
Antecedent Transactions 122
Restriction of rights of creditor under execution [S. 51, PIA.,
S. 53, Pres.] 122
Criterion for Determining Good Faith 123
Knowledge of Insolvency Proceedings on part of Buyer
and Good Faith 124
Emphasis should be upon Fairness of Sale 125
Formalities of setting aside 125
Avoidance of Voluntary Transfer [S. 53, Prov., S. 55, Pres.] 127
Avoidance of preference in certain cases or fraudulent preference
[S. 54, Prov., S. 56, Pres.] 132
Conditions necessary for Avoidance of Preference 132
Protection of bona fide transactions [S. 55, Prov.] 134
Realisation of property [S. 56, Prov. and S. 58, Pres.] 135
Disclaimer of onerous property [Ss. 62-67, Pres.] 136
Power to appoint Official Receiver [S. 57, Prov.] 137
Duties and Powers of Receiver [S. 59, Prov. and S. 68, Pres.] 137
Power to require Information [S. 59-A, Prov.] 139
Sale of Agricultural Property [S. 60, Prov.] 139
Realisation of property under Presidency Act [S. 58] 140
Duty and powers of Official Assignee in realization [S. 68, Pres.] 140
Seizure of Property [S. 59] 141
Appropriation of Salary [S. 60] 141
Distribution of property 146
Priority of Debts [S. 61, Prov.] 146
Security Deposit in Court 147
Calculation of Dividends [S. 62, Prov.] 147
Creditor who could not Prove before Declaration [S. 63, Prov.] 147
Final Dividend [S. 64, Prov.] 148
No Suit for Dividend [S. 65, Prov.] 148
Management by and Allowance to Insolvent [S. 66, Prov.] 148
Right to Surplus [S. 67, Prov.] 148
Committee of Inspection [S. 67-A, Prov. and S. 88, Pres.] 148
Appeal to court against Receiver [S. 68, Prov., S. 86, Pres.] 148
Limitation 149
Appeals [S. 75, Prov.] 150
Appeal by Insolvent 153
Penalties 155
Punishment for offences [S. 69, Prov., S. 103, Pres.] 155
Disqualifications of insolvent [S. 73, Prov., S. 103-A, Pres.] 155
Summary Administration 156
Small Insolvencies [S. 74, Prov., S. 106, Pres.] 156
Review [S. 75, Prov.] 156
Official Assignee 158
Appointment and removal [S. 77, Pres.] 158
Duties as regards insolvent's Conduct [S. 79, Pres.] 158
Misfeasance [S. 82] 159
Control over discretionary powers [S. 85, Pres.] 159
Remuneration 159
Control of court [S. 87, Pres.] 159
Doctrine of Reputed Ownership 160
Hypothecation and reputed ownership 162
Real owner becomes creditor for value of his property 165
Benami Transactions 165
SUBJECT INDEX 253