In force · As amended up to 2026-08
1. For s.9A, applicable to Bombay only, see the presidency-towns Insolvency and the Provincial insolvency (Bombay Amendment) Act,1939 (Bom. 15 of 1939), s.2.
(c) the debtor personally works for gain within those limits; or
(d) in the case of a petition by or against a firm of debtors the firm has carried on business within a year before the date of the presentation of the insolvency petition within those limits.
1. The original s.14 was renumbered as sub-section (1) of that section by Act 11 of 1927, s. 2.
2. Ins. by s.2, ibid .
3. Ins. by Act 19 of 1927, Section 3.
proceeding, and notice of such order shall be sent to the Court before which the suit or proceeding is pending.
(3) Any Court in which proceedings are pending against a debtor may, on proof that an order of adjudication has been made against him under this Act, either stay the proceedings or allow them to continue on such terms as it may think just.
1[18A. Control over insolvency proceedings in subordinate Courts.-- (1) The Court may, at any time after the presentation of an insolvency petition, stay any insolvency proceedings pending against the debtor in any Court subject to the superintendence of the Court, and may, at any time after the making of an order of adjudication, annul an adjudication against the debtor made by any such Court.
(2) Where an adjudication is annulled under sub-section (1), all sales and dispositions of property and payments duly made and all acts done by the Court whose order is annulled, or by the receiver appointed by it or other person acting under his authority, shall be valid, but the property vested in such Court or receiver shall vest in the official assignee, and the Court may make such direction in regard to the custody of such property as it thinks fit.
1. This section has been amended in its application to Bombay, Madras and Calcutta: see the Presidency-towns Insolvency (Bombay Amendment) Act, 1933 (Bom.20 of 1933), s.6; the Presidency-towns Insolvency (Bombay Amendment) Act, 1939 (Bom.15 of 1939), s.2; the Presidency-towns Insolvency (Madras Amendment) Act, 1943 (Mad.5 of 1943), s.15, and the Presidency-towns Insolvency (Bengal Amendment) Act, 1936 (Ben.18 of 1936), s.8.
(a) the fees and percentages to be charged under this Act and the manner in which the same are to be collected and accounted for and the account to which they are to be paid;
(b) the investment, whether separately or collectively, of unclaimed dividends, balances and other sums appertaining to the estates of insolvent debtors whether adjudicated insolvent under this or any former enactment; and the application of the proceeds of such investment;
(c) the proceedings of the official assignee in taking possession of and realising the estates of insolvent debtors;
[1] * * * * *
(e) the receipts, payments and accounts of the official assignee;
(f) the audit of the accounts of the official assignee;
(g) the payment[2] * * *of the costs of the audit of his accounts out of the proceeds of the investments in his hands;
(h) the payment of the costs incurred in the prosecution of fraudulent debtors and in legal proceedings taken by the official assignee under the direction of the Court out of the proceeds aforesaid;
(3) Notice of the order annulling an adjudication under subsection (1) shall be published in the Official Gazette and in such other manner as may be prescribed.]
1. Short title and commencement.-- (1) This Act may be called the Presidency-towns Insolvency Act, 1909.
(2) It shall come into force on the first day of January 1910.
(i) the payment of any civil liability incurred by an official assignee acting under the order or direction of the Court;
(j) the proceedings to be taken in connection with proposals for composition and schemes of arrangement with the creditors of insolvent debtors;
(k) the intervention of the official assignee at the hearing of applications and matters relating to insolvent debtors and their estates;
3[(kk) filing of lists of creditors and debtors and the affording of assistance to the Court by a petitioning debtor;]
(l) the examination by the official assignee of the books and papers of account of undischarged insolvent debtors;
(m) the service of notices in proceedings under this Act;
4 [(mm) the form of the insolvency notice under clause(a), and the manner in which such notice may be served under clause (b), of sub-section (3) of section 9; ]
(n) the appointment, meetings and procedure of committees of inspection;
(o) the conduct of proceedings under this Act in the name of a firm;
(p) the forms to be used in proceedings under this Act;
(q) the procedure to be followed in the case of estates to be administered in a summary manner;
(r) the procedure to be followed in the case of estates of deceased persons to be administered under this Act;
[5] [(s) the distribution of work between the official assignee and his deputy or deputies ;]
6[and, in the case of the High Court at Madras, may also provide for and regulate the remuneration of the official assignee and the payment of the costs, charges and expenses of his establishment].[7]
1. Cl. (d) rep. by the A.O.1937.
1. The Act has been amended in Bombay by Bom. Acts 20 of 1933 and 15 of 1939; in Bengal by Ben. Act 18 of 1936 ; and in Madras by Mad. Act 5 of 1943.
2. The words "and the town of Rangoon" omitted by the A.O. 1937.
3. The words "and the town of Karachi" omitted by the A.O.1948.The words "towns of Rangoon and Karachi" had been subs. for "town of Rangoon" by Act 9 of 1926, s.2, and the words "town of" had been subs. for "towns of Rangoon and" by the A.O.1937;
1. In the application of the Act to Bombay, this sub-section has been repealed: see the Presidency-towns Insolvency (Bombay Amendment) Act, 1933 (Bom.20 of 1933), s.11 and Sch.I .
1. For Madras, read: "realized by the official assignee"— see the Presidency-towns Insolvency (Madras Amendment) Act, 1943 (Mad.5 of 1943), s.4.
2. For Madras, read: "under the control" see s.5, ibid .
1. In the application of the Act to Madras, ss.81 and 83 have been repealed, see the Presidency-towns Insolvency (Madras Amendment) Act, 1943 (Mad.5 of 1943), ss.9 and 12.In the application of the Act to Bombay, s.84 has been repealed, see the Presidency-towns Insolvency (Bombay Amendment) Act, 1933 (Bom.20 of 1933), s.11.For ss.81, 81B, 82, 82A, 82B, 82C and 84A, as applicable to Calcutta, see the Presidency-towns Insolvency (Bengal Amendment) Act, 1936 (Ben.18 of 1936), ss.4 to 7.For ss.82 and 83, as applicable to Bombay, see Bombay Act 20 of 1933, ss.4 and 5.For ss.82, 82A, 82B, 84 and 84A, as applicable to Madras, see Madras Act 5 of 1943, ss.11 and 14.
(2) The Court may at any time require any official assignee to answer any enquiry made by it in relation to any insolvency in which he is engaged, and may examine him or any other person on oath concerning the insolvency.
1(3) The Court may also direct an investigation to be made of the books and vouchers of the official assignee.
1. In the application of the Act to Bombay, this sub-section has been repealed, see the Presidency-towns Insolvency (Bombay Amendment) Act, 1933 (Bom.20 of 1933), s.11 and Sch.I.
2. Sub-section (8) rep. by the A.O.1948.
1. For s.101A, applicable to Bombay only, see the Presidency-towns Insolvency (Bombay Amendment) Act, 1939 (Bom.15 of 1939), s.2.
2. Ins. by Act 3 of 1950, s. 5.
3. Ins. by Act 11 of 1920, s. 2.
(a) the order of adjudication is annulled under sub-section (1) of section 21, or
(b) he obtains from the Court an order of discharge, whether absolute or conditional, with a certificate that his insolvency was caused by misfortune without any misconduct on his part.
(3) The Court may grant or refuse such certificate as it thinks fit.]
1 [104. Procedure on charge under section 103.-- (1) Where the Court is satisfied, after such preliminary inquiry, if any, as it thinks necessary, that there is ground for inquiring into any offence referred to in section 103 and appearing to have been committed by the insolvent, the Court may record a finding to that effect and make a complaint of the offence in writing to a Presidency Magistrate or a Magistrate of the first class having jurisdiction, and such Magistrate shall deal with such complaint in the manner laid down in the Code of Criminal Procedure, 1898 (5 of 1898).
(2) Any complaint made by the Court under sub-section (1) may be signed by such officer of the Court as the Court may appoint in this behalf.]
1. For s.121A, applicable to Bombay only, see the Presidency-towns Insolvency (Bombay Amendment) Act, 1933 (Bom. 20 of 1933), s.7.
1. Meetings of creditors.-- The official assignee may at any time summon a meeting of creditors, and shall do so whenever so directed by the Court or by the creditors by resolution at any meeting or whenever requested in writing by one-fourth in value of the creditors who have proved.
1. Time for lodging proof.-- Every creditor shall lodge the proof of his debt as soon as may be after the making of an order of adjudication.
1. In the application of this rule to Calcutta, the words "for reasons to be recorded in writing" have been inserted here, see the Presidency-towns Insolvency (Bengal Amendment) Act, 1936 (Ben. 18 of 1936), s.12
Source: India Code