POWERS AND JURISDICTION OF INSOLVENCY COURT

Submitted to: Mr. Devang Kumar Chhtrapati

Presented by: Ashlesha Galgale (07BAL015)

The Provincial Insolvency Act, 1920

JURISDICTION

Section 3 Insolvency jurisdiction

Section 11 Court to which petition shall be presented.

Section 68 Appeal to Court against receiver.

POWERS

Section4 Section 5

Power of Court to decide all questions arising in insolvency General powers of Courts

35. Power to annul adjudication of insolvency 59A. Power to require information regarding insolvent' s property 36. Power to cancel one of concurrent orders of adjudication

OTHER POWERS

58. Powers of Court if no receiver appointed

40. Power to readjudge debtor insolvent

IMPORTANT CASE LAWS Hans Raj vs Rattan Chand, Etc 1967 SCR (3) 36
A person complaining of the act of the receiver may either apply under 68 or proceed under the ordinary law of the land. Section 4 does not prescribe any application for relief under that section. Its object is to define the limit of jurisdiction of the courts exercising powers in insolvency. A question as to whether an insolvent has any interest in the property attached by the receiver would fall within the purview of s. 4, but the application for the adjudication of such a question when the receiver acts otherwise than under the order of a court would be covered by s. 68 and as such the period of limitation of twenty-one days would be attracted to any such application. Sub-s. (1) and sub-s. (2) of s. 4 both start with the phrase "subject to the provisions of this Act" and even if it. was possible to construe that s. 4 envisaged the making of an application for relief, such application would be subject to s. 68 of the Act.

Joharilal Soni v Smt. Bhanwari Bai 1978 SCR (1) 231

Whether an insolvency Court can try a question of title raised on the basis of a transfer which took place more than two years prior to the adjudication, having regard to the provisions of s. 53, Insolvency Act ? 4 of the Act empowers the Insolvency Court to decide all questions whether of title or of priority or of any nature whatsoever which may arise in any case of insolvency. The said provision is, however, subject to the other provisions of the Act.

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