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Report No. 26

Chapter IV


Order of adjudication

16. Order on creditor's petition.- (1) In the case of a petition by a creditor, where the court is not satisfied with the proof of his right to present the petition or the service on the debtor of notice of the order admitting the petition, or of the alleged act of insolvency, or is satisfied by the debtor that he is able to pay his debts, or that for any other sufficient cause no order ought to be made, the court shall dismiss the petition.

[Section 25(1), P.A.] [Cf. section 13(4), P.T.A.]

(2) The court may make an order of adjudication if it is satisfied with the proof above referred to.

[Section 27(1), part, P.A.] [Cf. section 13(5), P.T.A.]

(3) Where the debtor appears on the petition and denies that he is indebted to the petitioner, or that he is indebted to such an amount as would justify the petitioner in presenting the petition against him, the court may-

(a) decide the question whether the debtor is indebted to the petitioner or whether he is indebted to such an amount as would justify the petitioner in presenting the petition, as the case may be; or

(b) on such security (if any) being given as the court may require for payment to the petitioner of any debt which may be established against the debtor in due course of law, and of the costs of establishing the debt, stay all proceedings on the petition for such time as may be required for the trial of the question relating to the debt.

[New] [Cf. section 13(6), P.T.A.]

(4) Where proceedings are stayed under clause (b) of sub-section (3), the court may, if by reason of the delay caused by the stay of proceedings or for any other cause it thinks just, make an order of adjudication on the petition of some other creditor, and shall thereupon dismiss, on such terms as it thinks just, the petition on which proceedings have been stayed as aforesaid.

[Cf. section 13(7), P.T.A.]

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