Section 5 in The Provincial Insolvency (Karnataka Extension And Amendment) Act, 1962
5. Amendment of section 6 and 79 of Central Act V of 1920 and insertion of new section 6A therein.-
In the principal Act,-(a)in section 6, after clause (h) the following new clause shall be inserted, namely :-"(i) if, after a creditor has served an insolvency notice on him under this Act 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, either comply with the requirements of the notice or satisfy the Court that 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".(b)after section 6, the following new section shall be inserted, namely:-"6A. Insolvency notice.- (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, or to satisfy the court that he has a counterclaim 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 setup in the suit or proceeding in which the decree or order was made against him and shall state the consequences of non-compliance with the notice.(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 mis-statement ; but if the debtor does not give such notice, he shall be deemed to have complied with the insolvency notice, if within the time allowed he takes such steps as would have constituted a compliance with the notice had the actual amount due been correctly specified therein." and(c)in sub-section (2) of section 79, after clause (a), the following clause shall be inserted, namely :-"(aa) the form of insolvency notice and the manner in which it may be served ;"
