Report No. 26
The Second Schedule
(See section 47)
Proof of Debts
Proof in ordinary cases
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.
[Cf. Sch. II, rule 1, P.T.A.]
2. Mode of lodging proof.-A proof may be lodged by delivering or sending by post in a registered letter to the Official Assignee an affidavit verifying the debt.
[Section 49(1), P.A.] (Cf. Sch. II, rule 2, P.T.A.]
3. Authority to make affidavit.-The affidavit may be made by the creditor himself or by some person authorised by or on behalf of the creditor; if made by a person so authorised, it shall state his authority and means of knowledge.
[Cf. Sch. II, rule 3, P.T.A.]
4. Contents of affidavit.-(1) The affidavit shall contain or refer to a statement of account showing the particulars of the debt, and shall specify the vouchers, if any, by which the same can be substantiated.
[Section 49(2), P.A. part]
(2) The Official Assignee may at any time call for the production of the vouchers.
[Cf. Sch. II, rule 4, P.T.A.]
5. Affidavit to state if creditor holds security.-The affidavit shall state whether the creditor is or is not a secured creditor; and if it is found at any time that the affidavit made by or on behalf of a secured creditor has omitted to state that he is a secured creditor, the secured creditor shall surrender his security to the Official Assignee for the general benefit of the creditors unless the court on application is satisfied that the omission has arisen from inadvertence, and in that case the court may allow the affidavit to be amended on such terms as to the repayment of any dividend or otherwise as the court may consider to be just.
[Section 49(2), P.A. part] (Cf. Sch. II, rule 5, P.T.A. and Second Sch., rule 5, English Act as amended in 1926 (Williams, page 558)]
6. Cost of proving debts.-A creditor shall bear the cost of proving his debt unless the court otherwise specially orders.
[Cf. Sch. II, rule 6, P.T.A.]
7. Right to see and examine proof.-Every creditor who has lodged a proof shall be entitled to see and examine the proofs of other creditors at all reasonable times.
[Cf. Sch. II, rule 7, P.T.A.]
8. Deduction to be made from proof.-A creditor in lodging his proofs shall deduct from his debt all trade discounts, but he shall not be compelled to deduct any discount, not exceeding five per centum on the net amount of his claim, which he may have agreed to allow for payment in cash.
[Cf. Sch. II, rule 8, P.T.A.]
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