Section 9. Proof where security realized

9. Proof where security realized.-- If a secured creditor realizes his security, he may prove for the balance due to him, after deducting the net amount realized. PART II PROCEEDINGS FROM ACT OF INSOLVENCY TO DISCHARGE ACTS OF INSOLVENCY 9. Acts of insolvency.--[1] [(1)] A debtor commits an act of insolvency in each of the following cases, namely:— (a) if, in the states or elsewhere, he makes a transfer of all or substantially all his property to a third person for the benefit of his creditors generally; (b) if, in the States or elsewhere, he makes a transfer of his property or of any part thereof with intent to defeat or delay his creditors; (c) if, in the States or elsewhere, he makes any transfer of his property or of any part thereof, which would, under this or any other enactment for the time being in force, be void as a fraudulent preference if he were adjudged an insolvent; (d) if, with intent to defeat or delay his creditors,— - (i) he departs or remains out of the States, (ii) he departs from his dwelling-house or usual place of business or otherwise absents himself, (iii) he secludes himself so as to deprive his creditors of the means of communicating with him; (e) if any of his property has been sold or attached for a period of not less than twenty-one days in execution of the decree of any Court for the payment of money; - (f) if he petitions to be adjudged an insolvent; (g) if he gives notice to any of his creditors that he has suspended, or that he is about to suspend, payment of his debts; (h) if he is imprisoned in execution of the decree of any Court for the payment of money.[2] 3[(2) Without prejudice to the provisions of sub-section (1), a debtor commits an act of insolvency if a creditor, who has obtained a decree or order against him for the payment of money (being a decree or order which has become final and the execution whereof has not been stayed), has served on him a notice (hereafter in this section referred to as the insolvency notice) as provided in sub-section(3) and the debtor does not comply with that notice within the period specified therin: Provided that where a debtor makes an application under sub-section (5) for setting aside an insolvency notice— (a) In a case where such application is allowed by the Court, he shall not be deemed to have committed an act of insolvency under this sub-section ; and (b) In a case where such application is rejected by the Court, he shall be deemed to have committed an act of insolvency under this sub-section on the date of rejection of the application or the expiry of the period specified in the insolvency notice for its compliance, whichever is later: Provided further that no insolvency notice shall be served on a debtor residing. whether permanently or temporarily, outside India, unless the creditor obtains the leave of the Court therfor. (3) An insolvency notice under sub-section (2) shall— (a) be in the prescribed form ; (b) be served in the prescribed manner ; 1. s. 9 re-numbered as sub-section (I) thereof by Act 28 of 1978, s.2 (w.e.f. 1-9-1979).