The Provincial Insolvency Act, 1920

The Provincial Insolvency Act, 1920

An Act to consolidate and amend the Law relating to Insolvency 2 * * *, as administered by Courts having jurisdiction outside the Presidency-towns 30 lfc *

Whereas it is expedient to consolidate and amend the law relating to insolvency 2 * * *, as administered by Courts having jurisdic.tion outside the Presidency towns ao * *; It is hereby enacted as follows:-

Section 1 Shoirt title and extent.

( 1) This Act may be called the Provincial Insolvency Act, 1920.

(2) It extends to [the whole of India except [the territories which, immediately before the 1st November, 1956, were comprised in Part B States] and] the Scheduled Districts.

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Section 2 Definitions.

( 1) In this Act, unless there is anything repugnant in the subject or context,-

(a) “creditor” includes a decree-holder, “debt” includes judgment-debt, and “debtor” includes a judgment-debtor;

(b) “District Court” means the principal Civil Court of original jurisdiction in any area – outside the local limits for the time being of the Presidency-towns 1 * * •;

( c) “prescribed” means prescribed by rules made under this Act;

(d) “property” includes any property over which or the profits of which any person has a disposing power which he may exercise for his own benefit; I

{e) “secured creditor” means a person holding a mortgage, charge or lien on the property of the debtor or any part thereof as a security for a debt due to him from the debtor; and

(f) “transfer of property” includes a transfer of any interest in property and the creation of any charge upon property.

(2) Words and expressions used in this Act and defined in the Code of Civil Procedure, 1908, and not 5 of hereinbefore defined shall have the same meanings as 1908. those respectively attributed to them by the said Code.

PART I Constitution and Powers of Court

Section 3 Insolvency jurisdiction.

The District Courts shall be the Courts having jurisdiction under this Act :

Provided that the State Government may, by notification in the Official Gazette, invest any Court subordinate to a District Court with jurisdiction in any class of cases, and any Court so invested shall within the local limits of its jurisdiction have concurrent jurisdiction with the District Court under this Act.

(2) For the purposes of this Act, a Court of Small Causes shall be deemed to be subordinate to the District Court.

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