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Report No. 26

34. Approval of proposal by court.-(1) The insolvent or the Official Assignee may, after the proposal is accepted by the creditors, apply to the court to approve it, and notice of the time appointed for hearing the application shall be given in the prescribed manner to each creditor who has proved.

[New][Section 29(1), P.T.A.]

(2) Except where an estate is being summarily administered or special leave of the court has been obtained, the application shall not be heard until after the conclusion of the public examination of the insolvent.

[New] [Cf. section 29(2), part, P.T.A.]

(3) Any creditor who has proved may be heard by the court in opposition to the application, notwithstanding that he may, at a meeting of creditors, have voted for the acceptance of the proposal.

[New] [Cf. section 29(2), P.T.A.]

(4) The court shall, before approving the proposal, hear a report of the Official Assignee as to the terms of the proposal and as to the conduct of the insolvent,

and consider any objections which may be made by or on behalf of any creditor.

[Section 38(4), part, P.A.] [Cf. section 29(3), part, P.T.A.]

(5) Where the court is of opinion that the terms of the proposal are not reasonable or are not calculated to benefit the general body of creditors, the court shall refuse to approve the proposal.

[Section 38(4), part, P.A.] [Cf. section 29(4), part, P.T.A.]

(6) Where any facts are proved on proof of which the court would be required either to refuse, suspend or attach conditions to the insolvent's discharge, the court shall refuse to approve the proposal unless it provides reasonable security for payment of not less than twenty-five nave paise in the rupee on all the unsecured debts provable against the insolvent's estate.

[Section 38(5), P.A.] [Cf. section 29(5), P.T.A.]

(7) No composition or scheme shall be approved by the court which does not provide for the payment in priority to other debts of all debts directed to be so paid in the distribution of the property of an insolvent.

[Section 38(6), P.A.] [Cf. section 29(6), P.T.A.]

(8) In any other case the court may either approve or refuse to approve the proposal.

[Section 38(7), P.A.] [Cf. section 29(7), P.T.A.]

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