The Presidency-Towns Insolvency and the Provincial Insolvency (Bombay Amendment) Act, 1939

This Act may be called the Presidency-towns Insolvency and the Provincial Insolvency (Bombay Amendment) Act, 1939.

In the Presidency-towns Insolvency Act, 1909,—

1. (a) in section 9 after clause (h), the following new clause shall be inserted, namely :— “(i) if, after a creditor has served an insolvency notice on him in respect of a decree or an order for the payment of any amount due to such creditor, the execution of which is not stayed, he does not within the period specified in the notice which shall not be less than one month comply with the requirements of the notice : Provided that the debtor shall not be deemed to have committed an act of insolvency for not complying with the requirements of the notice, if he has a counter-claim or set off which equals or exceeds the decretal amount or the amount ordered to be paid by him and which he could not lawfully set up in the suit or proceeding in which the decree or order was made against him”;
2. (b) after section 9, the following new section shall be inserted, namely :— Insolvency notice. “9A.

1. (1) An insolvency notice under this Act shall be in the prescribed form and shall be served in the prescribed manner. It shall require the debtor to pay the amount due under the decree or order, or to furnish security for the payment of such amount to the satisfaction of the creditor or his agent and shall state the consequences of non-compliance with the notice.
2. (2) Such notice shall not be invalidated by reason only that the sum specified in the notice as the amount due exceeds the amount actually due, unless the debtor within the time allowed for payment gives notice to the creditor that he disputes the validity of the notice on the ground of such misstatement; but if the debtor does not give