4 & 5 Geo. 5, c. 59, s. 5 (7).
Debtor's
petition and
order thereon.
4 & 5 Geo. 5.
492
tor, and shall thereupon dismiss, on such terms as it thinks just, the petition in which proceedings have been stayed as aforesaid.
(7) A creditor's petition shall not, after present- ment, be withdrawn without the leave of the court.
10.-(1) A debtor's petition shall allege that the debtor is unable to pay his debts, and the presentation thereof shall be deemed an act of bankruptcy without the previous filing by the debtor of any declaration of c. 59, s. 6 (1). inability to pay his debts, and the court shall there- upon make a receiving order, provided that it shall be lawful for the Court in its discretion to refuse the order if it is not satisfied that the assets for division among the unsecured creditors after payment of all costs, charges and expenses, and the debts which are preferential under this Ordinance, will be sufficient to pay a dividend of fifteen per cent, or if the Court considers that for other sufficient cause that no order ought to be made.
4 & 5 Geo. 5, c. 59, s. 6 (2).
Appearance of Official Receiver on petition.
Effect of receiving order. 4 & 5 Geo.
c. 59, s. 7.
Power to appoint interim receiver.
5,
4 & 5 Geo. 5, c. 59, s. 8.
Power to
"Sufficient cause" in this sub-section shall be deemed to include, inter alia, the non-attendance of the debtor, or, in the case of a firm, of at least one of the partners thereof, on the hearing of the petition, the absence of any material book of account, or any fraud, or misconduct not amounting to fraud by the debtor in relation to his affairs, or, in the case of a firm or person carrying on business under a Chinese firi naine, the non-production of the partnership book or of the receipt and money-payment chops used in connection with the business.
(2) A debtor's petition shall not, after present- ment, be withdrawn without the leave of the court.
11. On the hearing of any creditor's or debtor's petition it shall be lawful for the Official Receiver to appear, and to call, examine and cross-examine any witness and, if he so thinks fit, to support or oppose the making of a receiving order.
12.-(1) On the making of a receiving order the Official Receiver shall be thereby constituted receiver of the property of the debtor, and thereafter, except as directed by this Ordinance, no creditor to whom the debtor is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the debtor in respect of the debt, or shall commence any action or other legal proceedings, unless with the leave of the court and on such terms as the court may impose.
(2) This section shall not affect the power of any secured creditor to realise or otherwise deal with his security.
13. The court may, if it is shown to be necessary for the protection of the estate, at any time after the presentation of a bankruptcy petition, and before a receiving order is made, appoint the Official Receiver to be interim receiver of the property of the debtor, or of any part thereof, and direct him to take im- mediate possession thereof or of any part thereof.
14.-(1) The court may, at any time after the pre- stay pending sentation of a bankruptcy petition, either stay any proceedings, action, execution, or other legal process against the 4 & 5 Geo. 5, property or person of the debtor or allow it to con- c. 59, s. 9 (1). tinue on such terms as it may think just.
4 & 5 Geo, 5,
(2) Where the court makes an order staying any c. 59, s. 9 (2). action or proceeding, or staying proceedings generally, the order may be served by sending a copy thereof, under the seal of the court, by post to the address for service of the plaintiff or other party prosecuting