Section 34 of THE PROVINCIAL INSOLVENCY ACT, 1920
Debts provable under the Act.
- (1)Debts which have been excluded from the schedule on the ground that their value is incapable of being fairly estimated and demands in the nature of unliquidated damages arising otherwise than by reason of a contract or a breach of trust shall not be provable under this Act.
- (2)Save as provided by sub-section (1), all debts and liabilities, present or future, certain or contingent, to which the debtor is subject when he is adjudged an insolvent, or to which he may become subject before his discharge by reason of any obligation incurred before the date of such adjudication, shall be deemed to be debts provable under this Act. Annulment of adjudication
Summary
- (1) Debts which have been excluded from the schedule on the ground that their value is incapable of being fairly estimated and demands in the nature of unliquidated damages arising otherwise than by reason of a contract or a breach of trust shall not be provable under this Act.
- (2) Save as provided.
Practical examples
FAQ
1. What kinds of debts can be proven under Section 34 of the Provincial Insolvency Act, 1920?
Most debts and liabilities, whether they are due now or in the future, or even if they depend on a certain event, can be proven if the obligation started before the adjudication according to Section 34 of the Provincial Insolvency Act, 1920.,
2. Are there any debts that cannot be proven under Section 34 of the Provincial Insolvency Act, 1920?
Yes, Section 34 of the Provincial Insolvency Act, 1920, excludes debts that the court cannot fairly estimate and claims for unliquidated damages that do not arise from a contract or breach of trust.
3. What does unliquidated damages mean in Section 34 of the 1920 Act?
In Section 34 of the Provincial Insolvency Act, 1920, this refers to compensation amounts that have not been fixed or agreed upon yet, such as those from a personal injury claim.
4. Can a debt incurred after the person is declared insolvent be proven under Section 34 of the 1920 Act?
No, Section 34 of the Provincial Insolvency Act, 1920, only allows debts that the debtor was subject to when adjudged insolvent or liabilities from obligations incurred before that date.,
Test yourself
1.Under Section 34 of the Provincial Insolvency Act, 1920, which of the following is NOT a provable debt?
2.According to Section 34 of the Provincial Insolvency Act, 1920, what happens to a debt that the court decided was incapable of being fairly estimated under Section 33?
3.Under Section 34 of the Provincial Insolvency Act, 1920, does a debt have to be currently due to be proven?
4.Which of the following can be a provable debt under Section 34 of the Provincial Insolvency Act, 1920, even if the amount isn't fixed yet?