The Provincial Insolvency Act, 1920 – All Sections

An Act to consolidate and amend the Law relating to Insolvency as administered by Courts having jurisdiction outside the Presidency-towns.

The Provincial Insolvency Act, 1920 has 86 sections in 7 parts, amended 2 times. Each link below opens the official text of that section.

The Provincial Insolvency Act, 1920 PDF

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Official copy of the Act from India Code (Legislative Department, Government of India).

All sections of the Provincial Insolvency Act, 1920

Section 1 – Short title and extent
Section 2 – Definitions

Part I: CONSTITUTION AND POWER OF COURT

Section 3 – Insolvency jurisdiction
Section 4 – Power of Court to decide all questions arising in insolvency
Section 5 – General powers of Courts

Part II: PROCEEDINGS FROM ACT OF INSOLVENCY TO DISCHARGE

Section 6 – Acts of insolvency
Section 7 – Petition and adjudication
Section 8 – Exemption of corporation, etc., from insolvency proceedings
Section 9 – Conditions on which creditor may petition
Section 10 – Conditions on which debtor may petition
Section 11 – Court to which petition shall be presented
Section 12 – Verification of petition
Section 13 – Contents of petition
Section 14 – Withdrawal of petitions
Section 15 – Consolidation of petitions
Section 16 – Power to change carriage of proceedings
Section 17 – Continuance of proceedings on death of debtor
Section 18 – Procedure for administration of petition
Section 19 – Procedure on admission of petition
Section 20 – Appointment of interim receiver
Section 21 – Interim proceedings against debtor
Section 22 – Duties of debtors
Section 23 – Release of debtor
Section 24 – Procedure at hearing
Section 25 – Dismissal of petition
Section 26 – Award of compensation
Section 27 – Order of adjudication
Section 28 – Effect of an order of adjudication
Section 28A – Insolvent’s property to comprise certain capacity
Section 29 – Stay of pending proceeding
Section 30 – Publication of order of adjudication
Section 31 – Protection order
Section 32 – Power to arrest after adjudication
Section 33 – Schedule of creditors
Section 34 – Debts provable under the Act
Section 35 – Power to annul adjudication of insolvency
Section 36 – Power to cancel one of concurrent orders of adjudication
Section 37 – Proceedings on annulment
Section 38 – Compositions and schemes of arrangement
Section 39 – Order on approval
Section 40 – Power to re-adjudge debtor insolvent
Section 41 – Discharge
Section 42 – Cases in which Court must refuse an absolute discharge
Section 43 – Adjudication to be annulled on failure to apply for discharge
Section 44 – Effect of order of discharge

Part III: ADMINISTRATION OF PROPERTY

Section 45 – Debt payable at a future time
Section 46 – Mutual dealings and setoff
Section 47 – Secured creditors
Section 48 – Interest
Section 49 – Mode of proof
Section 50 – Disallowance and reduction of entries in schedule
Section 51 – Restriction of rights of creditor under execution
Section 52 – Duties of Court executing decree as to property taken in execution
Section 53 – Avoidance of voluntary transfer
Section 54 – Avoidance of preference in certain cases
Section 54A – By whom petitions for annulment may be made
Section 55 – Protection of bona fide transactions
Section 56 – Appointment of Receiver
Section 57 – Power to appoint Official Receivers
Section 58 – Powers of Court if no receiver appointed
Section 59 – Duties and powers of receiver
Section 59A – Power to require information regarding insolvent’s property
Section 60 – Special provisions in regard to immovable property
Section 61 – Priority of debts
Section 62 – Calculation of dividends
Section 63 – Right of creditor who has not proved debt before declaration of a dividend
Section 64 – Final dividend
Section 65 – No suit for dividend
Section 66 – Management by and allowance to insolvent
Section 67 – Right of insolvent to surplus
Section 67A – Committee of inspection
Section 68 – Appeal to Court against receiver

Part IV: PENALTIES

Section 69 – Offences by debtors
Section 70 – Procedure on charge under section 69
Section 71 – Criminal liability after discharge or composition
Section 72 – Undischarged insolvent obtaining credit
Section 73 – Disqualifications of insolvent

Part V: SUMMARY ADMINISTRATION

Section 74 – Summary administration

Part VI: APPEALS

Section 75 – Appeals