Report No. 26
48. Description of insolvent's property divisible amongst creditors.- (1) The property of the insolvent divisible amongst his creditors, and in this Act referred to as the property of the insolvent, shall not comprise the following particulars, namely:-
(a) any property held by the insolvent on trust for any other person;
(b) policies of life insurance or endowment in respect of the insolvent's own life, except to the extent of a charge on the policies in respect of the amount of the premium paid on the policies during the two years next preceding the order of adjudication;
(c) the right of a tenant to remain in or to retain possession of any premises to which any law with respect to the control of rents and eviction applies for the time being;
(d) any property (not being books of account) which is exempted by the Code of Civil Procedure, 1908 (5 of 1908), or by any other enactment for the time being in force, from liability to attachment and sale in execution of decree.
[Section 28(5), P.A.] [Cf. section 52(1), P.T.A.]
(2) Subject as aforesaid, the property of the insolvent shall comprise the following particulars, namely:-
(a) all such property as may belong to or be vested in the insolvent at the commencement of the insolvency;
[Section 2(2), part, P.A.] [Cf. section 52(2)(a), earlier part, P.T.A.]
(b) the capacity to exercise and to take proceedings for exercising all such powers in or over or in respect of property as might have been exercised by the insolvent for his own benefit at the commencement of his insolvency or before his discharge; and
[Section 28, P.A.] 1Cf. section 52(2)(b), P.T.A.]
(c) any property which may be acquired by or devolve on the insolvent, after the commencement of the insolvency and before his discharge; and such property shall forthwith vest in the Official Assignee, and no dealings by the insolvent with that property during the insolvency shall be valid:
[Section 28(4), P.A.] (Cf. section 52(2)(a), latter part, P.T.A.]
Provided that where the insolvent has been carrying on a trade or business with the permission of the court under section 79, a transfer by the insolvent of properties acquired in the course of that trade or business, in favour of a person who takes the same bona fide and for consideration, shall not be invalid merely by reason of the insolvency.