Section 25 of THE PRESIDENCY-TOWNS INSOLVENCY ACT, 1909
–(1) Any insolvent who shall have submitted his schedule as aforesaid may apply to the Court for protection, and the Court may, on such application, make an order for the protection of the insolvent from arrest or detention.
- (2)A protection order may apply either to all the debts mentioned in the schedule or to any of them as the Court may think proper, and may commence and take effect at and for such time as the Court may direct and may be revoked or renewed as the Court may think fit.
- (3)A protection order shall protect the insolvent from being arrested or detained in prison for any debt to which such order shall apply, and any insolvent arrested or detained contrary to the terms of such order shall be entitled to his release: Provided that no such order shall operate to prejudice the right of any creditor in the event of such order being revoked or the adjudication annulled.
- (4)Any creditor shall be entitled to appear and oppose the grant of a protection order, but the insolvent shall be prima facie entitled to such order on production of a certificate signed by the official assignee that he has so far conformed to the provisions of this Act.
- (5)The Court may make a protection order before an insolvent has submitted his schedule if it thinks it necessary to do so in the interests of the creditors.
Summary
- –(1) Any insolvent who shall have submitted his schedule as aforesaid may apply to the Court for protection, and the Court may, on such application, make an order for the protection of the insolvent from arrest or detention.
- (2) A protection order may apply either to all the debts mentioned in the.
Practical examples
FAQ
1. Can a debtor get a protection order under Section 25 of the Presidency-towns Insolvency Act of 1909 before submitting their insolvency schedule?
Yes, under Section 25, subsection 5 of the Presidency-towns Insolvency Act, 1909, the court can issue a protection order before the debtor submits their schedule if the court believes it is necessary to do so in the interest of the creditors.
2. Does a protection order under Section 25 of the Presidency-towns Insolvency Act protect a debtor from all types of arrests?
No, under Section 25, subsection 2 of the Presidency-towns Insolvency Act, 1909, the protection order only protects the debtor from arrest or detention for the specific debts mentioned in the schedule, or any of them as the court thinks proper to include.
3. What can a debtor do under Section 25 of the Presidency-towns Insolvency Act if they are arrested in violation of a protection order?
Under Section 25, subsection 3 of the Presidency-towns Insolvency Act, 1909, any insolvent debtor who is arrested or detained contrary to the terms of their protection order is entitled to be released immediately.
4. Can creditors oppose the grant of a protection order under Section 25 of the Presidency-towns Insolvency Act?
Yes, under Section 25, subsection 4 of the Presidency-towns Insolvency Act, 1909, any creditor has the right to appear in court and oppose the granting of the protection order to the debtor.
Test yourself
Q1.Under Section 25 of THE PRESIDENCY-TOWNS INSOLVENCY ACT, 1909 _ ARRANGEMENT OF SECTIONS _ PRELIMINARY, what document must an insolvent debtor normally submit before they can apply for a protection order?
Q2.Under Section 25 of the Presidency-towns Insolvency Act, 1909, what is the legal effect of a protection order on the rights of creditors if the order is later revoked?
Q3.Under Section 25 of the Presidency-towns Insolvency Act, 1909, what must the insolvent produce to be prima facie, which means at first sight, entitled to a protection order?
Q4.Under Section 25 of the Presidency-towns Insolvency Act, 1909, when can the court grant a protection order before the debtor has submitted their schedule?