Section 21 of THE PRESIDENCY-TOWNS INSOLVENCY ACT, 1909 in hindi
–(1) Where, in the opinion of the
Court, a debtor ought not to have been adjudged insolvent, or where it is proved to the satisfaction of the Court that the debts of the insolvent are paid in full, 3[the Court shall, on the application of any person interested,] by order annul the adjudication 4[and the Court may, of its own motion or on application made by the official assignee or any creditor, annul any adjudication made on the petition of a debtor who was, by reason of the provisions of sub-section (2) of section 14, not entitled to present such petition].
- (2)For the purposes of this section, any debt disputed by a debtor shall be considered as paid in full, if the debtor enters into a bond, in such sum and with such sureties as the Court approves, to pay the amount to be recovered in any proceeding for the recovery of or concerning the debt, with costs, and any debt due to a creditor who cannot be found or cannot be identified shall be considered as paid in full if paid into Court.
Summary
–(1) Where, in the opinion of the Court, a debtor ought not to have been adjudged insolvent, or where it is proved to the satisfaction of the Court that the debts of the insolvent are paid in full, [the Court shall, on the application of any person interested] by order annul the adjudication [and.
Practical examples
FAQ
1. Can an insolvency order be cancelled if all debts are paid under Section 21 of the Presidency-towns Insolvency Act 1909?
Yes, under Section 21 of the Presidency-towns Insolvency Act 1909, the court shall annul the adjudication order if it is proved to its satisfaction that the debts of the insolvent are paid in full.
2. What happens to a disputed debt when seeking to cancel an insolvency order under Section 21 of the 1909 Act?
Under Section 21 of the 1909 Act, a disputed debt is considered paid in full if the debtor enters into an approved bond with sureties to pay whatever amount is recovered in a recovery proceeding plus costs.
3. What is the rule for creditors who cannot be found under Section 21 of the Presidency-towns Insolvency Act?
Under Section 21 of the Presidency-towns Insolvency Act, if a creditor cannot be found or identified, the debt is considered paid in full if the debtor pays the money directly into court.
Test yourself
Q1.Under Section 21 of the Presidency-towns Insolvency Act of 1909, who can apply to the court to annul an adjudication order on the ground that debts are paid in full?
Q2.Under Section 21 of the 1909 Act, how is a debt due to a creditor who cannot be found or identified treated for the purpose of annulment?
Q3.Under Section 21 of the Presidency-towns Insolvency Act, how can a debtor satisfy the court regarding a disputed debt to get an annulment?
Q4.Under Section 21 of the 1909 Act, what can the Court do if a debtor, who was disqualified from petitioning under Section 14, sub-section (2) due to a previous unprosecuted discharge, files a petition and gets adjudged insolvent without court leave?
Q5.Under Section 21 of the 1909 insolvency law, when must the Court annul an adjudication order on the application of an interested person?