The provincial insolvency Act provides that on the making of an order of adjudication, the insolvent shall aid the official receiver to the utmost of his power in the realization of his property and the distribution of the proceeds amongst his creditors. [Sec 28 (1)]
The presidency towns’ insolvency Act enumerates the following duties of an insolvent in respect of the realization and discovery of the party-
1. The insolvent must attend any meetings of his creditors when required, and submit himself to such examination and give such information as required by the official assignee.
2. He shall prepare and submit to the court a schedule of his assets and liabilities verified by an affidavit within 30 days of the order on the petition of the debtor or within 30 days of the service of the order passed on the petition of a creditor. If the insolvent fails to prepare the schedule, the official assignee may prepare it and the insolvent may be committed to prison.
ADVERTISEMENTS:
3. He shall submit to such examination in respect of his property or creditors.
4. He shall attend before the official assignee at such times and places as and when required.
5. He shall execute such powers of attorney, transfers and instruments as may be required by the official assignee, and
6. He shall do all such acts and things in relation to his property and the distribution of the proceeds amongst his creditors as may be required by the official assignee or by the court.
ADVERTISEMENTS:
When and insolvent fails to perform any of the aforesaid duties he shall be guilty of the contempt of the court and be punished for it. Under the provincial insolvency act, where an insolvent commits default in the matter of appearance or production of property or giving information, he may be arrested under warrant.