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Report No. 26

The First Schedule

(See section 28)

Meeting of Creditors

1. Meeting 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 the value of the creditors who have proved.

[Cf. Sch. I, rule 1, P.T.A.]

2. Summoning of meetings.-Meetings shall be summoned by sending notice of the time and place thereof to each creditor at the address given in his proof, or, if he has not proved, at the address given in the insolvent's schedule, or such other address as may be known to the Official Assignee.

[Cf. Sch. I, rule 2, P.T.A.]

3. Notice of meetings.-(1) The notice of any meeting shall be sent not less than seven days before the day appointed for the meeting and may be delivered personally or sent by prepaid post letter, as may be convenient.

(2) The Official Assignee may, if he thinks fit, also publish the time and place of any meeting in any local newspaper or in the Official Gazette.

[Cf. Sch. I, rule 3, P.T.A.]

4. Duty of insolvent to attend if required.-(1) It shall be the duty of the insolvent to attend any meeting which the Official Assignee may, by notice, require him to attend, and any adjournment thereof.

[Cf. Sch. I, rule 4, P.T.A.]

(2) Such notice shall be either delivered to him personally or sent to him at his address by post at least seven days before the date fixed for the meeting.

5. Proceeding not to be avoided for non-receipt of notice.-The proceedings held and resolutions passed at any meeting shall, unless the court otherwise orders, be valid notwithstanding that any creditor has not received the notice sent to him.

[Cf. Sch. I, rule 5, P.T.A.]

6. Proof of issue of notice.-A certificate of the Official Assignee that the notice of any meeting has been duly given, shall be sufficient evidence of such notice having been duly sent to the person to whom the same was addressed.

[Cf. Sch. I, rule 6, P.T.A.]

7. Costs of meeting.-Where on the request of creditors the Official Assignee summons a meeting, there shall be deposited with the written request the sum of five rupees for every twenty creditors for the costs of summoning the meeting, including all disbursements:

Provided that the Official Assignee may require such further sum to be deposited as in his opinion shall be sufficient to cover the costs and expenses of the meeting.

[Cf. Sch. I, rule 7, P.T.A.]

8. Chairman.-The Official Assignee shall be the Chairman of every meeting of creditors.

[Cf. Sch. I, rule 8, P.T.A.]

9. Right to vote.-A creditor shall not be entitled to vote at a meeting unless he has duly proved a debt provable in insolvency to be due to him from the insolvent, and the proof has been duly lodged one clear day before the time appointed for the meeting.

[Cf. Sch. I, rule 9, P.T.A.]

10. No vote in respect of certain debts.-A creditor shall not vote at any such meeting in respect of any unliquidated or contingent debt, or any debt the value of which is not ascertained.

[Cf. Sch. I, rule 10, P.T.A.]

11. Secured creditor.-(1) For the purpose of voting, a secured creditor shall, unless he surrenders his security, state in his proof the particulars of his security, the date when it was given, and the value at which he assesses it, and shall be entitled to vote only in respect of the balance, if any, due to him after deducting the value of his security.

(2) If he votes in respect of his whole debt, he shall be deemed to have surrendered his security, unless the court on application is satisfied that the omission to value the security has arisen from inadvertence.

[Cf. Sch. I, rule 11, P.T.A.]

12. Proof in respect of negotiable instruments.-Where a creditor seeks to prove in respect of a bill of exchange, promissory note, or other negotiable instrument or in respect of any security, on which the insolvent is liable, such bill of exchange, note, instrument or security must, subject to any special order of the court made to the contrary, be produced to the Official Assignee before the proof can be admitted for voting.

[Cf. Sch. I, rule 12, P.T.A.]

13. Power to require creditor to give up security.-It shall be competent to the Official Assignee, within twenty-eight days after a proof estimating the value of a security has been made use of in voting at any meeting, to require the creditor to give up the security for the benefit of the creditors generally, on payment of the value so estimated.

[Cf. Sch. I, rule 13, P.T.A.]

14. Proof by partner.-If one partner in a firm is adjudged insolvent, any creditor to whom that partner is indebted jointly with the other partners in the firm, or any of them, may prove his debt for the purpose of voting at any meeting of creditors and shall be entitled to vote thereat.

[Cf. Sch. I, rule 14, P.T.A.]

15. Power of Official Assignee to admit or reject proof.-(1) The Official Assignee shall have power to admit or reject a proof for the purpose of voting, but his decision shall be subject to appeal to the court.

(2) If he is in doubt whether the proof of a creditor should be admitted or rejected, he shall mark the proof as objected to, and shall allow the creditor to vote, subject to the vote being declared invalid in the event of the objection being sustained.

[Cf. Sch. I, rule 15, P.T.A.]

16. Proxy.-A creditor may vote either in person or by proxy.

[Cf. Sch. 1, rule 16, P.T.A.]

17. Instrument of proxy.-Every instrument of proxy shall be in the prescribed form and shall be issued by the Official Assignee.

[Cf. Sch. I, rule 77, P.T.A.]

18. General proxy.-(1) A creditor may give a general proxy to his attorney or to his manager or clerk, or any other person in his regular employment.

(2) In such case the instrument of proxy shall state the relation in which the person to act thereunder stands to the creditor.

[Cf. Sch. I, rule 18, P.T.A.]

19. Proxy to be deposited one day before date of meeting.-A proxy shall not be used unless it is deposited with the Official Assignee one clear day before the time appointed for the meeting at which it is to be used.

[Cf. Sch. I, rule 19, P.T.A.]

20. Official Assignee as proxy.-A creditor may appoint the Official Assignee to act as his proxy.

[Cf. Sch. I, rule 20, P.T.A.]

21. Adjournment of meeting.-The Official Assignee may adjourn the meeting from time to time and from place to place, and no notice of the adjournment shall be necessary.

[Cf. Sch. 1, rule 21, P.T.A.]

22. Minute of proceedings.-The Official Assignee shall draw up a minute of the proceedings at the meeting and shall sign the same.

[Cf. Sch. I, rule 22, P.T.A.]

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