ADMINISTRATION OF PROPERTYCentral

Section 66 of THE PROVINCIAL INSOLVENCY ACT, 1920 in hindi

(1)The Court may appoint the insolvent himself to superintend the management of the property of the insolvent or of any part thereof, or to carry on the trade (if any) of the insolvent force in the benefit of the creditors, and in any other respect to aid in administering the property in such manner and on such terms as the Court may direct.
(2)The Court may, from time to time, make such allowance as it may think just to the insolvent out of his property for the support of himself and his family, or in consideration of his services if he is engaged in winding up his estate; but any such allowance may, at any time, be varied or determined by the Court.

Summary

(1) The Court may appoint the insolvent himself to superintend the management of the property of the insolvent or of any part thereof, or to carry on the trade (if any) of the insolvent force in the benefit of the creditors, and in any other respect to aid in administering the property in such.

Practical examples

1George, who used to run a successful hardware store, is now insolvent. The Court thinks he is the best person to sell the remaining inventory, so they appoint him to manage the store's wind-down for the benefit of the creditors.

2Meera has no money left because of her insolvency. The Court realizes she needs to eat and support her two children. The Judge orders that she be given 1000 rupees a month from her own seized assets as a support allowance.

FAQ

1. Can an insolvent person be hired to manage their own property under the Provincial Insolvency Act, 1920?

Yes, Section 66 of the Provincial Insolvency Act, 1920 allows the Court to appoint the insolvent to superintend the management of the property or carry on their old trade for the creditors.

2. Does the law provide for the family of an insolvent person under the Provincial Insolvency Act, 1920?

Yes, Section 66 of the Provincial Insolvency Act, 1920 says the Court may make an allowance to the insolvent for the support of themselves and their family.

3. Can the support allowance be changed later under the Provincial Insolvency Act, 1920?

Yes, Section 66 of the Provincial Insolvency Act, 1920 states that any such allowance may be varied or determined, meaning ended, by the Court at any time.

Test yourself

Q1.Under Section 66 of the Provincial Insolvency Act, 1920, for whose benefit does the insolvent carry on their trade if appointed by the Court?

Q2.Who has the authority to decide the amount of the allowance given to an insolvent under Section 66 of the Provincial Insolvency Act, 1920?

Q3.According to Section 66 of the Provincial Insolvency Act, 1920, an allowance can be granted in consideration of what?

Q4.What happens to the property management arrangement under Section 66 of the Provincial Insolvency Act, 1920?

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