Report No. 26
6. Conditions on which debtor may petition.-(1) A debtor shall not be entitled to present an insolvency petition unless he is unable to pay his debts and-
(a) his debts amount to five hundred rupees; or
(b) he is under arrest or imprisonment in execution of the decree or order of any court for the payment of money; or
(c) an order of attachment in execution of such a decree or order has been made, and is subsisting, against his property.
Explanation.-For the purposes of this clause, where the debtor is a partner in a firm, an order charging his interest under sub-rule (2) of rule 49 of Order XXI in the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall be deemed to be an order of attachment.
(2) A debtor in respect of whom an order of adjudication has been annulled, owing to his failure to apply, or to prosecute an application, for his discharge, shall not be entitled to present an insolvency petition without the leave of the court by which the order of adjudication was annulled.
(3) The court shall not grant leave under sub-section (2) unless it is satisfied either that the debtor was prevented by any reasonable cause from presenting or prosecuting his application, as the case may be, or that the petition is founded on facts substantially different from those contained in the petition on which the order of adjudication is was made.
[Section 10, P.A.] [Cf. section 14, P.T.A.]