Priority of payment of debt s (1) Notwithstanding anything to the contrary contained in any law enacted by the Parliament or the State Legislature for the time being in force, in the distribution of the final dividend, the following debt s shall be paid in priority to all other debt s — (a) firstly, the costs

claims of creditors (1) A creditor who has not proved his debt before the declaration of any dividend is not entitled to disturb, by reason that he has not participated in it, the distribution of that dividend or any other dividend declared before his debt was proved, but – (a) when he has proved the debt , he shall be entitled

Final dividend (1) Where the bankruptcy trustee has realised the entire estate of the bankrupt or so much of it as could be realised in the opinion of the bankruptcy trustee, he shall give notice – (a) of his intention to declare a final dividend; or (b) that no dividend or further dividend shall be declared. (2) The notice under

Distribution of property (1) The bankruptcy trustee may, with the approval of the committee of creditors, divide in its existing form amongst the creditors, according to its estimated value, any property in its existing form which from its peculiar nature or other special circumstances cannot be readily or advantageously sold. (2) An approval under sub-section (1) shall be sought by

Distribution of interim dividend (1) Whenever the bankruptcy trustee has sufficient funds in his hand, he may declare and distribute interim dividend among the creditors in respect of the bankruptcy debts which they have respectively proved. (2) Where the bankruptcy trustee has declared any interim dividend, he shall give notice of such dividend and the manner in which it is proposed

Mutual credit and set-off (1) Where before the bankruptcy commencement date, there have been mutual dealings between the bankrupt and any creditor, the bankruptcy trustee shall – (a) take an account of what is due from each party to the other in respect of the mutual dealings and the sums due from one party shall be set off against the

Proof of debt by secured creditors (1) Where a secured creditor realises his security, he may produce proof of the balance due to him. (2) Where a secured creditor surrenders his security to the bankruptcy trustee for the general benefit of the creditors, he may produce proof of his whole claim. Practice area’s of B K Goyal & Co LLP Income Tax

Proof of debt (1) The bankruptcy trustee shall give notice to each of the creditors to submit proof of debt within fourteen days of preparing the list of creditors under section 132. (2) The proof of debt shall – (a) require the creditor to give full particulars of debt , including the date on which the debt was contracted and the value at which that person assesses it;

Administration of estate of deceased bankrupt (1) All the provisions of Chapter V relating to the administration and distribution of the estate of the bankrupt shall, so far as the same are applicable, apply to the administration of the estate of a deceased bankrupt. (2) While administering the estate of a deceased bankrupt, the bankruptcy trustee shall have regard to the claims by the