What is Insolvency ? According to popular usage an insolvent is one who is unable to pay his debts. But no man can be called “insolvent” unless a competent court declares him an insolvent .

1. WELCOME TO MY
PRESENTATION

2. BUSINESS LAW : 233
PREPARED BY-
AHMED SHARIF KHAN
ID:BBAW2016000284
FACULTY OF BUSINESS ADMINISTRATION
E-MAIL: ABDUNNOOR540@GMAIL.COM

3. THE LAW OF INSOLVENCY
WHAT IS INSOLVENCY ?
ACCORDING TO POPULAR USAGE AN INSOLVENT IS ONE WHO IS UNABLE TO PAY
HIS DEBTS.
BUT NO MAN CAN BE CALLED “INSOLVENT” UNLESS A COMPETENT COURT
DECLARES HIM AN INSOLVENT .

4. INSOLVENCY LEGISLATION
THE LAW RELATING TO INSOLVENCY IN INDIA IS CONTAINED IN TWO STATUES:
THE PRESIDENCY TOWNS INSOLVENCY ACT OF 1909.
THE PROVINCIAL INSOLVENCY ACT OF 1920.
THE FORMER APPLIES TO THE PRESIDENCY TOWNS, I.E., TO CALCUTTA , BOMBAY
, MADRAS
THEN TATTER APPLIES TO ALL AREAS

5. THE OBJECT OF INSOLVENCY LEGISLATION
PROTECTION OF DEBTORS .
SAFEGUARDING AS FAR AS POSSIBLE, THE INTERESTS OF CREDITORS .
1. DISTRIBUTION OF INSOLVENT’S PROPERTY
2. CANCELLATION OF DEBTS AND REMOVAL OF DISQUALIFICATIONS
3. BENEFITS TO CREDITORS
4. FRESH START IN LIFE BY DEBTORS

6. WHEN CAN A PERSON BE DECLARED
INSOLVENT
I. HE MUST A DEBTOR
II. THE DEBTOR HAS COMMITTED AN ACT OF INSOLVENCY

7. WHO CAN BE DECLARED INSOLVENT
• MINOR
• LUNATIC
• WOMEN
• FOREIGNER
• JOINT DEBTORS
• DECEASED PERSON
• COMPANIES
• CONVICT