Board to declare debtor insolvent in certain circumstances.

(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.