Chapter IV INSOLVENCY PROCEEDINGS.

(1) If at any stage of the proceedings under Chapter III the Board finds that income of the debtor and his movable property are not sufficient to allow his debts to be liquidated by annual instalments not exceeding twenty in number, the Board shall make an order adjudicating the debtor an insolvent. (2) After the debtor has been adjudicated an insolvent, the Board shall direct that such portion of the property of the debtor liable to attachment and sale under section 60 of the Code of Civil Procedure, 1908 excluding such portion thereof as the Government shall from time to time notify in the Official Gazette as minimum necessary for the maintenance of the debtor and his dependents, as may be required to liquidate all the debts of the debtors shall immediately be sold free of all encumbrances in liquidation of all debts outstanding against such debtor.

The order of adjudication made under section 52 shall have the force of an order made by a competent Court in the exercise of its powers under the Andhra Pradesh (Telangana Area) Insolvency Act, 1351 F.

The proceeds realised by the sale of the property of the insolvent under section 52 shall be distributed in the order of priority specified in clause (iii) of sub-section (2) of section 36.

No application or proceeding in regard to the insolvency of a debtor shall lie in or shall be dealt with otherwise than by the Board or where an appeal lies by the Court of appeal.

No appeal shall lie from any order passed under this Chapter except on the ground that the insolvent has failed to disclose all the material facts relating to his assets and liabilities.