Login : Advocate | Client
Home Post Your Case My Account Law College Law Library

Report No. 26

Chapter VII

Administration of Property

Proof of debts

44. Debts provable in insolvency.-(1) Demands in the nature of unliquidated damages arising otherwise than by reason of a contract or breach of trust shall not be provable in insolvency.

[Section 34(1), part, P.A.] [Cf. section 46(1), P.T.A.]

(2) A person having notice of any available act of insolvency committed by the debtor shall not prove for any debt or liability contracted by the debtor subsequently to the date of his so having notice.

[New] [Cf. section 46(2), P.T.A.] [Cf. section 30(2), English Ac]

(3) Save as provided by sub-sections (1) and (2), all debts and liabilities, present or future, certain or contingent, to which the debtor is subject when he is adjudged an insolvent, or to which he may become subject before his discharge by reason of any obligation incurred before the date of such adjudication, shall be deemed to be debts provable in insolvency.

[Section 34(2), P.A.] [Cf. section 46(3), P.T.A.]

(4) An estimate shall be made by the Official Assignee of the value of any debt or liability provable as aforesaid, which by reason of its being subject to any contingency or contingencies or for any other reason, does not bear a certain value:

Provided that if, in his opinion, the value of the debt or liability is incapable of being fairly estimated, he shall issue a certificate to that effect, and thereupon the debt or liability shall be deemed to be a debt not provable in insolvency.

[Section 33(1), proviso, P.A. and section 34(1), part, PA.] [Cf. section 46(4), P.T.A.]

Explanation 1.-For the purpose of this section, "liability" includes any compensation for work or labour done, any obligation or possibility of an obligation to pay money or money's worth on the breach of any express or implied covenant, contract, agreement or undertaking, whether the breach does or does not occur, or is or is not likely to occur or capable of occurring, before the discharge of the debtor, and generally it includes any express or implied engagement, agreement or undertaking to pay, or capable or resulting in file payment of, money, or money's worth, whether the payment is as respects amount, fixed or unliquidated; as respects time, present or future, certain or dependent on any contingency or contingencies; as to mode of valuation, capable of being ascertained by fixed rules, or as matter of opinion.

Explanation 2.-In this section, "available act of insolvency" has the same meaning as in section 57.

[New] [Cf. section 46, Explanation, P.T.A.]

Insolvency Laws Back

Client Area | Advocate Area | Blogs | About Us | User Agreement | Privacy Policy | Advertise | Media Coverage | Contact Us | Site Map
powered and driven by neosys