Vidhi Codex

The Insolvency Act, 1955

The Insolvency Act, 1955

Corporate195588 sections6 chapters

This law provides a legal framework for handling situations where individuals or businesses cannot pay their debts. It applies to debtors in Kerala who commit specific acts of insolvency, such as transferring property to avoid creditors or leaving the state. The District Courts manage these cases, taking control of the debtor's assets to ensure fair distribution among creditors. The goal is to resolve financial distress efficiently, prevent fraud, and ultimately allow the insolvent person to be discharged from their debts once their property is properly managed and distributed.

Start reading →Read full ActSections

Part I CONSTITUTION AND POWERS OF COURT

  1. 3Insolvency jurisdiction
  2. 4Power of Court to decide all questions arising in insolvency
  3. 5General powers of Courts

Part II PROCEEDINGS FROM ACT OF INSOLVENCY TO DISCHARGE

  1. 6Acts of insolvency
  2. 7Petition and adjudication
  3. 8Exemption of corporation etc., from insolvency proceedings
  4. 9Conditions on which creditor may petition
  5. 10Conditions on which debtor may petition
  6. 11Court to which petition shall be presented
  7. 12Verification of petition
  8. 13Contents of petition
  9. 14Withdrawal of petitions
  10. 15Consolidation of petitions
  11. 16Power to charge carriage of proceedings
  12. 17Continuance of proceedings on death of debtor
  13. 18Procedure for admission of petition
  14. 19Procedure on admission of petition
  15. 20Appointment of interim receiver
  16. 21Interim proceedings against debtor
  17. 22Duties of debtors
  18. 23(Continuation of duties of receiver)
  19. 24Procedure at hearing
  20. 25Dismissal of petitions
  21. 26Award of compensation
  22. 27Order of adjudication
  23. 28Effect of an order of adjudication
  24. 29Insolvent's property to comprise certain capacity
  25. 30Stay of pending proceedings
  26. 31Publication of order of adjudication
  27. 32Protection order
  28. 33Power to arrest after adjudication
  29. 34Schedule of creditors
  30. 35Debts provable under the Act
  31. 36Power to annul adjudication of insolvency
  32. 37Power to cancel one of concurrent orders of adjudication
  33. 38Proceedings on annulment
  34. 39Compositions and schemes of arrangement
  35. 40Order on approval
  36. 41Power to re-adjudge debtor insolvent
  37. 42Discharge
  38. 43Cases in which Court must refuse an absolute discharge
  39. 44Adjudication to be annulled on failure to apply for discharge
  40. 45Effect of order of discharge

Part III ADMINISTRATION OF PROPERTY

  1. 46Debt payable at a future time
  2. 47Mutual dealings and set off
  3. 48Secured creditors.
  4. 50Mode of proof.
  5. 51Disallowance and reduction of entries in schedule.
  6. 52Restriction of rights of creditor under execution.
  7. 53Duties of Court executing decree as to property taken in execution.
  8. 54Avoidance of voluntary transfer.
  9. 55Avoidance of preference in certain cases.
  10. 56By whom petitions for annulment may be made.
  11. 57Protection of bonafide transactions.
  12. 58Appointment of receiver.
  13. 59Power to appoint Official Receivers.
  14. 60Power of Court if no receiver appointed.
  15. 61Duties and powers of receiver.
  16. 62Power to require information regarding insolvent's property
  17. 63Special provisions in regard to immovable property
  18. 64Priority of debts
  19. 65Calculation of dividends
  20. 66Right of creditor who has not proved debt before declaration of a dividend
  21. 67Final dividend
  22. 68No suit for dividend
  23. 69Management by and allowance to insolvent
  24. 70Right of insolvent to surplus
  25. 71Committee of Inspection
  26. 72Appeal to Court against receiver

Part IV PENALTIES

  1. 73Offences by debtors
  2. 74Procedure on charge under Section 73
  3. 75Criminal liability after discharge or composition
  4. 76Undischarged insolvent obtaining credit
  5. 77Disqualifications of insolvent

Part V SUMMARY ADMINISTRATION

  1. 78Summary administration

Part VI APPEALS

  1. 79Appeals
  2. 80Costs
  3. 81Courts to be auxiliary to each other
  4. 82Limitation
  5. 83Power to make rules
  6. 84Delegation of powers to Official Receivers
  7. 85Power of Government to bar application of certain provisions to certain Courts
  8. 86Repeal

PDF: pending for this language.