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

Continuance of proceedings on death of bankrupt If a bankrupt dies, the bankruptcy proceedings shall, continue as if he were alive. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit |

Obligations under contracts (1) This section shall apply where a contract has been entered into by the bankrupt with a person before the bankruptcy commencement date. (2) Any party to a contract, other than the bankrupt under sub-section (1), may apply to the Adjudicating Authority for – (a) an order discharging the obligations of the applicant or the bankrupt under the contract; and (b) payment of

Extortionate credit transactions (1) Subject to sub-section (6), on an application by the bankruptcy trustee, the Adjudicating Authority may make an order under this section in respect of extortionate credit transactions to which the bankrupt is or has been a party. (2) The transactions under sub-section (1) should have been entered into by the bankrupt during the period of two years ending on the bankruptcy commencement date.

Effect of order (1) Subject to the provision of sub-section (2), an order passed by the Adjudicating Authority under section 164 or section 165 shall not, – (a) give rise to a right against a person interested in the property which was acquired in an undervalued transaction or a transaction giving preference, whether or not he is the person with whom the bankrupt entered into such transaction; and (b) require any person to pay a sum