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Report No. 26

36. Power to re-adjudge debtor insolvent.-(1) If default is made in the payment of any instalment due in pursuance of any composition or scheme approved under section 35 or if it appears to the court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the court was obtained by fraud, the court may, if it thinks fit, on application by any person interested, re-adjudge the debtor insolvent and annul the composition or scheme, and the property of the debtor shall thereupon vest in the Official Assignee but without prejudice to the validity of any transfer or payment duly made or of anything duly done under or in pursuance of the composition or scheme.

[Section 40, earlier part, P.A.] [Cf. section 31(1), P.T.A.]

(2) Where a debtor is re-adjudged insolvent under sub-section (1), all debts provable in other respects which have been contracted before the date of such re-adjudication shall be provable in the insolvency.

[Section 40, latter part, P.A.] [Cf. section 31(2), P.T,A.]

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