Law of Insolvency

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Book Description
The current fifth edition of the book "Law of Insolvency" by Dr Avtar Singh is an endeavour to present the Jaw on the subject of Insolvency very efficiently and analytically. The law of insolvency has gained greater importance in recent times. The growing volume of case-law on the subject shows a trend towards increase in the number of businesses going insolvent in today's highly competitive environment and open market economy. In the present scenario, the author feels that more demands are going to be placed on the law of Insolvency for protecting sinking businessmen, and safeguarding their lenders. The author also draws attention to the inadequacy of the present law of Insolvency and makes out a case for a fresh new Act forthe entire country.
The following are the highlights of this fifth edition:
1.   Topic wise treatment of the subject explaining the various aspects of the law of Insolvency.
2.   All the latest developments including High Court and Supreme Court case law on the subject.
3.   Full text of the Provincial Insolvency Act, 1920 and Presidency-
      Towns Insolvency Act, 1909 along with State Amendments.
Written in a simple and easy to understand language the work will be of immense use for the students, teachers, lawyers and all those who are interested in the subject.
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Contents
Table of Cases
Table of Statutes
Objects of Insolvency Laws
•    Meaning of "bankruptcy"
•    Administrative or adjective law
Acts of Insolvency [S. 9, PTIA and S. 6, PIA]
•    Transfer of property for benefit of creditors
•    Transfer of property with intent to defeat or delay creditors
•    Fraudulent preference
•    Departure or seclusion
•    Sale of property in execution of decree
•    Decree
•    Debtor's petition for insolvency
•    Suspension of payments
•    Dishonour of cheque as suspension of payment. .
•    Surety of judgment-debtor
•    Insolvency Notice [S. 9, PTIA]
•    Suppression of facts by creditor
•    Setting aside of insolvency notice
•    Setting aside on grounds other than those mentioned in S. 9(5)
•    Act of Insolvency by Agent
•    Burden of proof
Who can be Adjudged Insolvent
•    Non-Residents or Foreigners [S. 11, PTIA and S. 8, PIA]
•    Minors
•    Married Woman
•    Persons of Unsound Mind
•    Partners and Partnership Firms [S. 99, PTIA and S. 79(2) (c), PIA]
•    Joint Debtors
•    Joint Hindu Family
•    Representative Debtor
•    Corporations [S. 8, PIA]
Constitution and Powers of Court
•    Leave of insolvency court (S. 7, PTIA)
•    Appeals [S. 8, PTIA]
The Petition
•    Procedure under Presidency Towns Insolvency Act [S. 10]
•    Bona fides of Debtor Applicant
•    Restriction on Jurisdiction [S. 11]
•    Creditor's Petition [S. 9, PIA and S. 12, PTIA]
•    Recovery proceedings for penalty
•    Decree
Abuse of insolvency process
Limitation
Proceedings on Creditor's Petition [S. 13]
Debtor's Petition [S. 14, PTIA and S. 10, PIA]
Procedure under Provincial Act
•    Contents of Petition [S. 13]
•    Withdrawal [S. 14]
•    Consolidation of Petitions [S. 15] . .
•    Power to Change Carriage of Proceedings [S. 16]
•    Death of Debtor [S. 17]
•    Procedure for admission of petition [S. 18]
Procedure on Admission [S. 19]
•    What Constitutes'Admission'
Interim Receiver [S. 20]
Interim Proceedings against Debtor [S. 21]
Duties of Debtor [S. 22]
Release of Debtor [S. 23]
Procedure at Hearing [S. 24]
Dismissal of Petition [S. 25]
Award of Compensation [S. 26]
Order of Adjudication [S. 27]
Effects of Order of Adjudication [S. 17, PTIA and S. 28, PIA] .
Vesting of Property
Vesting under Presidency Towns Insolvency Act [S. 17]
Vesting under Provincial Insolvency Act [S. 28]
      Attachment before judgment
Bar and stay of suits and other legal proceedings [S. 17, PTIA and S. 28(2) & (6), 29, PIA]
No bar against criminal proceedings. .
•    Appointment of Special Manager [S. 19, PTIA]. .
•    Notice or Advertisement of Adjudication  [S. 20, PTIA and S. 30, PIA]
Subsequent Proceedings
•    Protection Order [S. 25, PTIA and S. 31, PIA]
•    Arrest after adjudication [S. 32, PIA and S. 34, PTIA]
•    Schedule of Creditors [S. 33, PIA and S. 24, PTIA]
•    Debts Provable [S. 34, PIA and S. 46, PTIA]
•    Statutory Penalty
•    Annulment of adjudication [S. 35, PIA and S. 21, PTIA]
•    Lack of bona fides in application for annulment
•    Effects of annulment
•    Concurrent Proceedings [S. 36, PIA and S. 22, PTIA]
•    Proceedings on annulment [S. 37, PIA and S. 23, PTIA]
•    Meetings of creditors [S. 26, PTIA] Public examination of insolvent [S. 27, PTIA]
•    Composition and schemes of arrangement [S. 38, PIA and S. 28, PTIA]
•    Order on Approval [S. 39, PIA and S. 30, PTIA]
•    Readjudication as Insolvent [S. 40, PIA and S. 31, PTIA]
Control over person or property of insolvent
•    Duties of insolvent in realisation and discovery of property [S. 33, PTIA]
•    Arrest of insolvent [S. 34, PTIA]
•    Redirection of letters [S. 35, PTIA]
•    Discovery of insolvent's property [S. 36, PTIA]
•    Discharge of insolvent [S. 41, PIA and S. 38, PTIA]
•    Discharge of proceedings
•    Cases in which absolute discharge refused [S. 42, PIA and S. 39, PTIA]
•    Annulment on Failure to apply for Discharge [S. 43, PIA and S. 41, PTIA]
•    Renewal of application for discharge [S. 42, PTIA]
•    Duty of Discharged Insolvent [S. 43, PTIA]
•    Fraudulent Settlements [S. 44, PTIA]
•    Effect of order of discharge [S. 44, PIA and S. 45, PTIA]
Administration of Property
•    Property divisible among creditors
•    Property Exempted
•    Property of Insolvent at Commencement of Insolvency [S. 28, PIA]
•    After-acquired Property
•    Personal Earnings
•    Income
•    Income from Trade or Business
Methods of proof of debts
•    Future Debts [S. 45, PIA]
•    Debts Provable [S. 46, PTIA]
•    Liability to pay costs of litigation
•    Mutual dealings and set-off [S. 46, PIA and S. 47, PTIA]
•    Secured creditors [S. 47, PIA]
•    Surrender of Security
•    Interest [S. 48, PIA]
•    Mode of proof [S. 49, PIA]
•    Disallowance and reduction of entries in Schedule [S. 50, PIA]
Antecedent Transactions
•    Restriction of rights of creditor under execution [S. 51, PIA and S. 53, PTIA]
•    Criterion for Determining Good Faith
•    Knowledge of Insolvency Proceedings on part of Buyer and Good Faith
•    Emphasis should be upon Fairness of Sale
•    Formalities of Setting Aside
•    Avoidance of Voluntary Transfer [S. 53, PIA and S. 55, PTIA]
•    Order of setting aside necessary
•    Burden of proof
•    Avoidance of preference in certain cases or fraudulent preference [S. 54, PIA and S. 56, PTIA]
•    Conditions necessary for Avoidance of Preference
•    Protection of bona fide transactions [S. 55, PIA]
•    Realisation of property [S. 56, PIA and S. 58, PTIA]
•    Disclaimer of onerous property [Ss. 62-67, PTIA]
•    Power to appoint Official Receiver [S. 57, PIA]
•    Duties and Powers of Receiver [S. 59, PIA and S. 68, PTIA]
•    Power to require Information [S. 59-A, PIA]
•    Sale of Agricultural Property [S. 60, PIA]
•    Realisation of property under Presidency Act [S. 58]
•    Duty and powers of Official Assignee in realization [S. 68, PTIA]
•    Seizure of Property [S. 59]
•    Appropriation of Salary [S. 60, PTIA]
•    Distribution of property
•    Priority of Debts [S. 61, PIA]
•    Security Deposit in Court Calculation of Dividends [S. 62, PIA]
•    Creditor who could not Prove before Declaration [S. 63, PIA]
•    Final Dividend [S. 64, PIA] No Suit for Dividend [S. 65, PIA]
•    Management by and Allowance to Insolvent [S. 66, PIA]
•    Right to Surplus [S. 67, PIA]
•    Committee of Inspection [S. 67-A, PIA and S. 88, PTIA]
•    Appeal to court against Receiver [S. 68, PIA and S. 86, PTIA]
•    Limitation
•    Appeals [S. 75, PIA]
•    Appeal by Insolvent
Penalties
•    Punishment for offences [S. 69, PIA and S. 103, PTIA]
•    Disqualifications of insolvent [S. 73, PIA and S. 103-A, PTIA]
Summary Administration
•    Small Insolvencies [S. 74, PIA and S. 106, PTIA]
•    Review [S. 75, PIA]
Official Assignee
•    Appointment and removal [S. 77, PTIA]
•    Duties as regards insolvent's conduct [S. 79, PTIA]
•    Misfeasance [S. 82]
•    Control over discretionary powers [S. 85, PTIA]
•    Remuneration
•    Control of court [S. 87, PTIA]
Doctrine of Reputed Ownership
•    Hypothecation and reputed ownership
•    Real owner becomes creditor for value of his property
•    Benami Transactions
Appendix I : Provincial Insolvency Act, 1920
Appendix II : Presidency-Towns Insolvency Act, 1909
Subject Index
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Author Details
Dr. Avtar Singh, B.Com., LL.M., LL.D (Luck), Vidya Bhusan (Hindi Sansthan, U.P.) Ex-visiting Professor of Business Laws, I.I.M., Lucknow, Ex-Reader in Law, Lucknow University.
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