Report No. 26
Main para.-This is based on section 47 of the Presidency Act; compare section 46, Provincial Act.
Proviso.-Section 47 of the Presidency Act contains a proviso that no set-off will be allowed when the credit had been given with notice of the presentation of insolvency petition. (The Provincial Act has no such provision). As there can be no set-off in respect of a credit which the creditor is not entitled to prove under the Act, section 47, consistently with section 46(2), excludes credits given with notice of the presentation of insolvency petition. As section 46(2), Presidency Act has been adopted1, the proviso has also been adopted, with one modification, namely, substitution of act of insolvency2.
On the lines of section 31 of the (English) Bankruptcy Act, 1914, the words "mutual dealings" have been amplified by using the words "mutual credits, mutual debts or other mutual dealings".
Explanation.-Needs no comments.
1. See notes to clause 44.
2. Cf clause 44.
This follows section 67, Presidency Act. There is no such provision in the Provincial Act.
General.-See section 48, Presidency-towns Act, section 33(1), Provincial Act. The detailed provisions as to mode of proof of debt and rights of various creditors and connected matters will be dealt with in a Schedule1 as in the Presidency Act.
This scheme will cover the main paragraph of section 33(1), Provincial Act, in substance.
Section 33(2), Provincial Act, omitted.-Section 33(2), Provincial Act (Pasting of schedule of debts on court house) has been omitted, as unnecessary. It is a matter of detail, which can be dealt with in the rules, if necessary.
1. See Second Schedule.