Section 6(5) in The Provincial Insolvency Act, 1920
(5)Any person served with an insolvency notice may, within the period specified therein for its compliance, apply to the District Court to set aside the insolvency notice on any of the following grounds, namely:(a)that he has a counter-claim or set-off against the creditor which is equal to or is in excess of the amount due under the decree or order and which he could not, under any law for the time being in force, prefer in the suit or proceeding in which the decree or order was passed;(b)that he is entitled to have the decree or order set aside under any law providing for the relief of indebtedness and that(i)he has made an application before the competent authority under such law for the setting aside of the decree or order; or(ii)the time allowed for the making of such application has not expired;(c)that the decree or order is not executable under the provisions of any law referred to in clause (b)on the date of the application.]Explanation. For the purposes of this section the act of an agent may be the act of the principal.Petition
