Provincial insolvency act
R.Manivasagan
(Querist) 07 November 2014
This query is : Resolved
Dear Respectable Seniors,
My advocate friend's client filed a Petition under Section 10 of Provincial Insolvency Act hereinafter called the "Said Act". Now, that client, before final adjudication, indent to not press the petition, since he settled the debts to creditors. now my questions is
1. Whether any leave has to be obtained from the court under section 14 of the said Act even for not pressing as settled?
2. Is the Withdrawal and Not press, of the petition has same meaning under section 14 of the said Act?
3. Whether the court can proceed, upon the objection raised by one of the creditor, those who did not produce any document to his claim or due so far?
4. When there is a equal remedy or relief is available to the creditor who is opposing the not press, whether can he ask for the appointment of receiver?
please seniors...............
venkatesh Rao
(Expert) 09 November 2014
Not pressed means-requesting the court to dismiss the petition at his instance and not insisting for any reliefs he prayed for. It has got nothing to do with sec.14. The creditor if any unsatisfied can present their own petition for adjudication. The debtor by filing memo for dismissal as not pressed is debarred from filing afresh on same cause of action as it is barred by res judicata.
Surrender K Singal
(Expert) 10 November 2014
Unless is Dismissed as withdrawn with liberty for legal course in future
venkatesh Rao
(Expert) 10 November 2014
When the petition is sought to be dismissed as not pressed, question of reserving liberty does not arise.
T. Kalaiselvan, Advocate
(Expert) 12 November 2014
Section 14of the act clearly says that : No, petition, whether presented by a debtor or by a creditor, shall be withdrawn without the leave of the Court.
Further as per section 16, the creditor can claim relief which reads as: Where the petitioner does not proceed with due diligence on his petition, the Court may substitute as petitioner any other creditor to whom the debtor may be indebted in the amount required by this Act in the case of a petitioning creditor.
