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State of Punjab - Section

Section 58 in The Punjab Insolvency Rules

58. Appointment and procedure of Committees of Inspection.

- The following rules have been framed with respect to the appointment and procedure of Committees of Inspection :-
(1)In any case in which the Court authorises the creditors to appoint a Committee of Inspection pursuant to the provisions of section 67-A of the Act, the Court shall, by the order of adjudication, fix a date for the holding of a meeting of the persons qualified to vote for the purpose of selecting the members of the Committee. A notice mentioning the date fixed shall be put up on the Notice Boards of the Court and the Official Receiver.
(2)Number of members. - A Committee of Inspection shall consist of not more than five, not less than three persons.
(3)A Committee of Inspection shall meet at such time as they shall, from time to time, appoint, and failing such appointment at least once a month, and the Official Receiver or any two members of the Committee may call a meeting as and when necessary.
(4)Committee shall act only by a majority. - A Committee of Inspection may act by a majority of members present at a meeting, but shall not act unless a majority of the Committee is present at the meeting.
(5)Mode of resignation by a member. - Any member of the Committee may resign his office by notice in writing signed by him and delivered to the Official Receiver.
(6)When a member vacates his office. - If a member of a Committee becomes insolvent or is absent from five consecutive meetings of the Committee, his office shall thereupon become vacant.
(7)Removal of a member. - Any member of a Committee may be removed by a resolution at any meeting of the creditors of which seven days notice has been given stating the object of the meeting.
(8)Filling up a vacancy. - On a vacancy occurring in the Office of a member of a Committee, the Official Receiver shall forthwith summon a meeting of creditors for the purpose of filling the vacancy and the meeting may, by resolution, appoint another creditor or other person eligible as above to fill the vacancy.
(9)Committee may act notwithstanding vacancy. - The continuing members of the Committee of Inspection, provided there be not less than two such continuing members, may act notwithstanding any vacancy in their body and when the number of members of a Committee is for the time being less than five, the creditors may increase their number so that it does not exceed five.
(10)Receiver to obtain orders of Court when he does not agree with the suggestions of the committee. - When a Committee has been appointed, the Official Receiver shall, in the administration of the property of the insolvent and in the distribution thereof amongst his creditors, have regard to any suggestions that the Committee may give by resolution. If the Official Receiver thinks that any suggestion of the Committee is not in the interests of the general body of creditors, he may report the matter to the Court which will give such instructions as it may consider just and necessary.
(11)The Committee shall be heard before court passes order in the above case. - The Court shall afford an opportunity to the Committee of inspection for being heard before orders are passed on any such report submitted by the Official Receiver.
(12)Court may call a meeting of the general body of creditors. - The Court may, in order to decide the matter in dispute, call a meeting of the general body of creditors and consider their views before arriving at a conclusion.
(13)Official Receiver shall be Secretary of the Committee. - The Official Receiver shall ordinarily act as the Secretary of the Committee and maintain a record of its proceedings in a bound register.
(14)Action of a member not to be vitiated by defect in his appointment. - No defect or irregularity in the appointment or selection of a member of the Committee of Inspection shall vitiate any act done by him in good faith.
(15)Receiver shall allow inspection of records to members and give other information and assistance. - The Official Receiver shall afford all the members of the Committee both individually and collectively, reasonable facilities to examine at his office any of his records and registers during the working hours of the Court. The Official Receiver shall also give the Committee and its members any information which they require and give them every assistance and facility in the discharge of their functions.Forms in Insolvency ProceedingsForm No. 1General TitleIn the Court of ____________________Insolvency Petition No. ______________ of 19_____.In the matter of _____________________.Ex parte (here insert "the Debtor" of "A.B. of Creditor", "the Official Receiver" or "the Receiver").Form No. 2Debtor's Petition(Section 13)In the Court of _______________Insolvency Petition No. __________ of 19 ____.
(1)(a) ____________________(a) Insert nameand address and description of debtor.(b) State name ofCourt and particulars of decree, in respect of which the orderof detention has been made only whereas an order of attachmenthas been made against debtor's property.(c) State whetherand how many of the debts are secured.   ordinarily residing at (or "carrying onbusiness at" or "personally working for gain at",or "in custody at") in consequence of the order of (b)being unable to pay my debts, hereby petition that I may beadjudged an insolvent. The total amount of all pecuniary claimsagainst me is Rs. _________(c) as set out in detail inSchedule A annexed hereunto which contains the names andresidences of all my creditors so far as they are known to or canbe ascertained by me. The amount and particulars of all myproperty are set out in Schedule B annexed hereunto together witha specification of all my property not consisting of money andthe place or places at which such property is to be found and Ihereby declare that I am willing to place all such property atthe disposal of the Court save in so far as it includes suchparticulars (not being my books of account) as are exempted bylaw from attachment and sale in execution of a decree.
I have not on any previous occasion filed a petition to be adjudged an insolvent or I set out in Schedule C particulars relating to my previous petition/petitions to be adjudged an insolvent.Signature.Form No. 2-AInsolvency Notice(See Rule 4-A (2) read with Section 6 of Provincial Insolvency Act, 1920, as amended).In the Court of _______________________In the matter of ______________________ToA.B. or (A.B. & Co.) _______________of __________________.Take notice that within 30 (Thirty) days after service of this notice on you (excluding the day of such service), you must pay to (full name and description of the creditor) or his duly authorised agent ________________, the sum of Rs. ______________(state the exact amount due), claimed by the aforesaid creditor, against you in the _______________Court, dated _____________, which has become final and execution whereof has not been stayed, or you must furnish security for the payment of the said sum to the satisfaction of the aforesaid creditor or his agent, within the above prescribed period.You are specially to note that the consequences of not complying with the requisitions of this notice are that you will have committed an act of insolvency on which insolvency proceedings may be taken against you unless you make an application within the period prescribed for compliance thereof for setting it aside under sub-section (5) of Section 6 of the Provincial Insolvency Act, 1920 and in that event you will be deemed to have committed an act of insolvency as from the date stipulated in clause (b) of proviso to sub-section (2) of Section 6 ibid.Name and address of the person/Advocate suing out the notice.Dated this _______________day of _______________19 ______Judge.Verification Clause as in Plaints