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Report No. 26

98. Restrictions on jurisdiction.-(1) The court shall not have jurisdiction to make an order of adjudication, unless-

(a) the debtor is at the time of the presentation of the insolvency petition, imprisoned in execution of the decree or order of a court for the payment of money in any prison to which debtors are ordinarily committed by the court in the exercise of its original jurisdiction; or

(b) the debtor, within a year before the date of the presentation of the insolvency petition, has ordinarily resided or had a dwelling house or has carried on business either in person or through an agent within the limits of the original civil jurisdiction of the court; or

(c) the debtor personally works for gain within those limits; or

(d) in the case of a petition by or against a firm of debtors, the firm has carried on business within a year before the date of the presentation of the insolvency petition within those limits.

Explanation.-In this sub-section, "original jurisdiction", in relation to High Courts, means ordinary original jurisdiction.

[Section 11, main para., P.A.] [Cf. section 11, P.T.A.]

(2) Where the debtor is not a citizen of India, no court in the territories to which this Act extends shall have jurisdiction unless-

(a) the debtor, within one year before the date of the presentation of the petition, had ordinarily resided or had a dwelling-house or place of business or had carried on business personally or by means of an agent or manager, within the said territories; or

(b) a firm of which the debtor is, or within the said one year has been, a partner, has carried on business by means of a partner or partners or an agent or manager within the said territories.

[New] [Cf. section 4(1)(d), English Act.]

(3) .................. No objection as to the place of presentation shall be allowed by any appellate or revisional court unless such objection was taken in the court by which the petition was heard at the earliest possible opportunity, and unless there has been a consequent failure of justice.

[Section 11, proviso, P.A.]

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