The Presidency-towns Insolvency (Tamil Nadu Amendment) Act, 1943

1. (1) This Act may be called the Presidency-towns Insolvency ([Tamil Nadu]

[NO TITLE] Section 61 of the Presidency-towns insolvency Act, 1909 (hereinafter referred to as the said Act), shall be omitted.

In sub-section

1. (2) of section 68 of the said Act, after the words " in such manner ", the words "as is laid down in this Act or " shall be inserted.

In section 71 of the said Act-

1. (a) in sub-section (1), for the words "in his hands," the words "under his control " shall be substituted ;
2. (b) in sub-section (2), for the words " in hand," the words " realized by the official assignee " shall be substituted.

In section 72 of the said Act, for the words " in the hands " the words " under the control " shall be substituted.

In section 74 of the said Act, for the words " pay it, and also to pay out of his own money interest thereon ", the words " pay such dividend and interest thereon" shall be substituted.

In section 77 of the said Act-

1. (a) to clause
2. (c) of sub-section

1. (1) the following paragraph shall be added, namely :- " The official-assignee, the deputy official-assignee or assignees, if any, and all other officers and servants subordinate to the official-assignee (other than those employed in estates under his administration) shall form part of the staff attached to the said Court";
   • (b) in sub-section (2), the words " shall give such security and " shall be omitted.

After section 77 of the said Act, the following new section shall be inserted, namely :- "77-A.

1. (1) The official assignee shall be a corporation sole by the name of the Official Assignee of Madras and as such Official Assignee shall have perpetual succession and an official seal and may sue and be sued in his corporate name and may do all acts necessary or expedient to be done in the execution of his office.
2. (2) In all suits or proceedings by or against the official assignee, there shall be inserted after his official title the description 'as assignee of the property of an insolvent (naming the particular insolvent)'."

Section 81 of the said Act shall be omitted.

Section 82 of the said Act shall be renumbered as sub-section

1. (1) of that section, and after the section as so renumbered, the following sub-sections shall be added, namely :- "
2. (2) The revenues of the [State] shall be liable to make good all sums which the official assignee is required by order of the Court to pay under sub-section
3. (1) in respect of any misfeasance, neglect or omission occurring after the commencement of the Presidency-towns Insolvency (Tamil Nadu Amendment) Act, 1943.
4. (3) Nothing in sub-section
5. (2) shall prevent the [State] Government from recovering any sum paid by them under that sub-section from the person who was holding the office of official assignee or deputy official assignee or any office subordinate to the official assignee, when the misfeasance, neglect or omission occurred."

After section 82 of the said Act, the following sections shall be inserted, namely :- "82-A.

1. (1) Where the official assignee has incurred whether before or after the commencement of the Presidency-towns Insolvency (Tamil Nadu Amendment) Act, 1943, in the matter of any insolvency-
   • (a) any costs in legal proceedings taken by him under the direction of the Court, or
   • (b) any civil liability bona fide in the discharge of his duties, the revenues of the [State] shall be liable for the payment of such costs or to meet such liability, in so far as assets realized and not distributed by the official assignee in respect of such insolvency are insufficient to pay such costs or to meet such liability.
2. (2) Any sum paid out of the revenues of the [State] under sub-section
3. (1) in respect of an insolvent's estate shall be repaid to the [State] Government by the official assignee out of any assets of the estate which may subsequently become available, in priority to all other claims and charges on such assets other than fees and percentages chargeable by the official assignee under this Act.

1. (2) Nothing contained in sub-section
2. (1) shall be deemed to authorize the official assignee to spend any amount in excess of the balance for the time being available in the fund placed at his disposal by the [State] Government for expenditure under that sub-section.
3. (3) Any amount spent in respect of an insolvent's estate by the official assignee out of the fund referred to in sub-section
4. (2) shall, if any assets of the estate subsequently become available to the official assignee, be paid back by him into such fund, in priority to all other claims and charges on such assets other than fees and percentages chargeable by the official assignee under this Act". 12. Repeal of section 83 Section 83 of the said Act shall be omitted. 13. Amendment of section 84 In section 84 of the said Act, for the words " an official assignee," the words " a person for the time being holding the office of official assignee" and for the word " vacate," the words " be deemed to have vacated " shall be substituted. 14. Insertion of new section After section 84 of the said Act, the following section shall be inserted, namely :- " 84-A. (1)
   • (a) The official assignee shall maintain an account with the Reserve Bank of India in the prescribed manner and shall pay into such account, after making any prescribed deductions, all moneys received by him in the realization of insolvents' estates and any other sums the payment of which may be prescribed.
   • (b) All payments to be made by the official assignee in respect of liabilities arising from insolvents' estates shall, except in the case referred to in section 82-B, be made by cheques drawn by the official assignee on the said account or by cash realized from the proceeds of such cheques.
5. (2) Subject to such rules as may be made under section 112, whenever the cash balance standing to the credit of the said account is, in the opinion of the official assignee, in excess of the amount which is required for the time being to meet demands in respect of insolvents' estates or to make the payment required under section 122 or any other payments that may be prescribed, the official assignee shall transfer such excess to the account and credit of the [State] Government with the Reserve Bank of India.
6. (3) The provisions of sub-sections
7. (1) and
8. (2) shall apply to all moneys in the hands of the official assignee at the commencement of the Presidency-towns Insolvency (Tamil Nadu Amendment) Act.
9. (4) All investments of moneys made before such commencement by the official assignee or on his behalf by the Registrar of the High Court, other than investments exclusively appertaining to the estates of insolvents, shall be transferred to the Government in such manner as may be prescribed.
10. (5) The revenues of the [State] shall be liable to meet all claims-
    • (a) upon any moneys transferred to the account and credit of the [State] Government under sub-section
11. (2) or under sub-section
12. (3) read with sub-section
13. (2) ; and
    • (b) upon any investments transferred to the [State] Government under sub-section (4)." 15. Amendment of section 112 In sub-section
14. (2) of section 112 of the said Act-
    • (i) clause
    • (b) shall be omitted ;
      • (ii) in clause (j), after the word "audit", the words " and inspection " shall be inserted ;
      • (iii) clause
    • (g) shall be omitted ;
      • (iv) in clause (h), the words " out of the proceeds aforesaid " shall be omitted ;
      • (v) in clause (i), after the words " direction of the Court," the words " or otherwise in his official capacity " shall be added ;
      • (vi) the last paragraph beginning with the words " and in the case of the High Court at Madras " and ending with the words " expenses of his establishment " shall be omitted. 16. [NO TITLE] Section 125 of the said Act shall be renumbered as sub-section
15. (1) of that section and after the section as so renumbered, the following sub-section shall be added, namely :- ''
16. (2) The official assignee shall transfer to the account and credit of the [State] Government, in such manner and at such times as may be prescribed in this-
    • (a) all fees and percentages received by him under this Act after the commencement of the Presidency-towns Insolvency (Tamil Nadu Amendment) Act, 1943, and
    • (b) all fees, percentages, commission and other remuneration received by him after such commencement either as a trustee under a composition or scheme or as an agent of another official assignee or an official receiver." 17. Power to make rules The [State] Government may make rules consistent with this Act to provide for any matter for which provision is, in their opinion, necessary or convenient for the purpose of giving effect to the provisions of this Act.