PROCEEDINGS FROM ACT OF INSOLVENCY TO DISCHARGE ACTS OF INSOLVENCYCentral

Section 33 of THE PRESIDENCY-TOWNS INSOLVENCY ACT, 1909

–(1) Every insolvent shall,

unless prevented by sickness or other sufficient cause, attend any meeting of his creditors which the official assignee may require him to attend, and shall submit, to such examination and give such information as the meeting may require.

(2)The insolvent shall—
1. (a)give such inventory of his property, such list of his creditors and debtors, and of the debts due to and from them respectively,
2. (b)submit to such examination in respect of his property or his creditors,
3. (c)wait at such times and places on the official assignee or special manager,
4. (d)execute such powers-of-attorney, transfers and instruments, and
5. (e)generally do all such acts and things in relation to his property and the distribution of the proceeds amongst his creditors. as may be required by the official assignee or special manager or may be prescribed or be directed by the Court by any special order or orders made in reference to any particular case, or made on the occasion of any special application by the official assignee or special manager, or any creditor or person interested.
(3)The insolvent shall aid, to the utmost of his power, in the realization of his property and the distribution of the proceeds among his creditors.
(4)If the insolvent willfully fails to perform the duties imposed upon him by this section, or to deliver up possession to the official assignee of any part of his property, which is divisible amongst his creditors under this Act and which is for the time being in his possession or under his control, he shall, in addition to any other punishment to which he may be subject, be guilty of a contempt of Court, and may be punished accordingly.

Summary

–(1) Every insolvent shall, unless prevented by sickness or other sufficient cause, attend any meeting of his creditors which the official assignee may require him to attend, and shall submit, to such examination and give such information as the meeting may require.
(2) The insolvent shall, (a).

Practical examples

1Vikram, who was declared insolvent in Mumbai on June 15, 2026, was ordered by his official assignee to attend a meeting of his creditors on July 10, 2026. Vikram was healthy but chose to skip the meeting to go to a movie. Because he failed to attend without a valid reason like sickness, Vikram has failed in his legal duty. He could be held in contempt of court and punished.

2Priya was declared insolvent and had her property placed under an official assignee. She had a hidden bank account with fifty thousand rupees that she did not list in her inventory. When asked to produce a list of her debtors, she intentionally left out her cousin who owed her twenty thousand rupees. By failing to give an accurate inventory and list, Priya violated her duties and faces severe legal penalties for contempt of court.

FAQ

1. What are the main duties of an insolvent person under Section 33 of the Presidency-towns Insolvency Act, 1909?

Under Section 33 of the Presidency-towns Insolvency Act, 1909, the insolvent must attend meetings of creditors as required, submit to examinations, provide an inventory of property, list all creditors and debtors, wait on the official assignee or special manager, execute necessary powers of attorney or transfers, and aid to the utmost of their power in realizing and distributing their property.

2. Can sickness excuse an insolvent from attending a creditors meeting under Section 33 of the Presidency-towns Insolvency Act?

Yes. Under Section 33 of the Presidency-towns Insolvency Act, 1909, an insolvent is required to attend meetings of creditors unless prevented by sickness or other sufficient cause.

3. What is the penalty if an insolvent fails to deliver up property under Section 33 of the Presidency-towns Insolvency Act?

Under Section 33 of the Presidency-towns Insolvency Act, 1909, if an insolvent willfully fails to perform their duties or to deliver up possession of any divisible property in their possession or control to the official assignee, they will be guilty of contempt of court and punished accordingly.

4. Who can demand that an insolvent execute a power of attorney or transfer under Section 33 of the Presidency-towns Insolvency Act?

Under Section 33 of the Presidency-towns Insolvency Act, 1909, these actions can be required by the official assignee, the special manager, or be directed by the court by a special order.

Test yourself

Q1.Under Section 33 of the Presidency-towns Insolvency Act, 1909, what is the consequence if an insolvent willfully fails to deliver up possession of divisible property to the official assignee?

Q2.Under Section 33 of the Presidency-towns Insolvency Act, 1909, who is responsible for helping to the utmost of their power in the realization of the debtor's property?

Q3.Under Section 33 of the Presidency-towns Insolvency Act, 1909, which of the following is NOT a duty explicitly imposed on the insolvent?

Q4.Under Section 33 of the Presidency-towns Insolvency Act, 1909, an insolvent must attend creditors meetings unless prevented by which of the following?

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