Report No. 26
General.-See section 10, Provincial Act, and section 14, Presidency Act.
Sub-clause (1).-Does not need any comments. In paragraphs (b) and (c) after "decree", a reference to "order" has been added1. An Explanation regarding orders charging a partner's interest has also. been added.
Sub-clauses (2) and (3)-The words "whether made under the Presidency-towns Insolvency Act or under this Act" have been omitted, since both the Acts have been combined in this Bill. The opening portion of sub-clause (3) has been re-drafted slightly for clarity.
There are two amendments to this section made by the Provincial Legislatures, which should be mentioned. One is the Punjab Relief of Indebtedness Act, 1934 (Punjab Act 7 of 1934). That Act, while fixing the limit under section 74 for summary administration at rupees two thousand, enacted a new clause, clause (aa) in section 10,
providing that it was an act of insolvency if the debts of the debtor amounted to not less than rupees two hundred and fifty, and the debtor was entitled to an order for summary administration. It is considered that the question whether there is an act of insolvency or not should not depend on the size of his assets. The other amendment was made in 1936, by the Legislature of the Central Provinces, which enacted the Provincial insolvency (C.P. and Berar Amendment) Act, 1936, whereby the minimum of rupees five hundred in clause (1)(a) was reduced to rupees two hundred. The reason for this amendment would appear to be that in the stringent financial conditions which were then prevailing, rupees two hundred was considered sufficient to entitle the debtor to move for relief under the Act. In view of the present financial conditions, there is no need to lower the limit of rupees five hundred.
Nor is it necessary to increase the figure of five hundred2.
1. c f. clause 7.
2. Cf. the discussion in the English Committee's Report, (1957) Cmd. 221, p. 10, para. 16.