Report No. 26

Clause 10

Sub-clause (1).-Follows section 18 of the Provincial Act.

Sub-clauses (2), (3) and (4).-Deal with the topic dealt with in section 19 of the Provincial Act. There is no similar elaborate provision in the Presidency Act regarding notice to be given before adjudication. [There is a short provision in section 13(3) which implies that the giving of notice is not obligatory.] The matter is dealt with elaborately in the rules under the Presidency Act1.

The English rules2 are to the effect that where the petition is filed by the debtor, the receiving order is made forthwith, and where the petition is filed by a creditor, notice is given to the debtor.

It is considered that so far as courts other than High Courts are concerned, notice should be obligatory in terms of the clause as drafted.

Giving of notice.-This has been discussed above.

Notice to transferees.-Provision for notice to transferees has been added. The subject has been discussed elsewhere3.

Interested persons.-Provision empowering notice to be given to interested persons has been added.

Sub-clause (5)-High Courts.-High Courts have been excluded from the scope of this provision4.

1. See Calcutta Rule 74 (Mulla, 1958, p. 1065). Bombay Rules 59A and 60 and rules 84 and 84A (Mulla, pp. 1118 and 1121); and Madras Rules, Order III, rule 13 (and rule 9, relating to transferees).

2. See Bankruptcy Rules, 1952 rules 162, 163, 164 reproduced in Williams, (17th Edn.), p. 633.

3. See notes to clause 22.

4. High Courts will be governed by rules.