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PUBLIC RECORD OFFICE

Reference :-

TILLCO885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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any machinery, plant, appliances, furniture, or other appurtenances or things used on or in connexion with the said property, the goodwill of the business of the said firm so far as it relates to the said property and the business of the firm there carried on, or any other right of the said firm, corporeal or incorporeal, in, or in connexion with, the said property or business, and all the provisions of the said Ordinance shall apply as if all matters included in the said notice in pursuance of this section were included in the definition of “ land" in the said Órdinance.

22. Inclusion in sale of other enemy interests.—In any case in which, for the purposes of any liquidation it becomes necessary to sell the interest of an enemy firm in any property in which such firm is interested jointly or in co-ownership with an enemy, the liquidator may, in his discretion, include the interest of such enemy in the sale, but in any such case he shall (subject to the prior rights of any incumbrancer other than an enemy or a partner in an enemy firm) pay the whole of the proceeds of the sale of such combined interests to the Custodian of Enemy Property, and the sum so paid shall be held by the Custodian in a separate account subject to the orders of the Governor.

23. Secured creditors.-(1) When any creditor of any enemy firm (other than an enemy or a partner of the firm) holds any mortgage, charge, or lien on any property of the firm as security for his debt, such creditor or the liquidator may apply to the District Court under Chapter IV. hereof for an Order directing either

(a) That the security be realized, and that the creditor account for or make

his claim in respect of any balance due; or

(b) That the security be valued and retained by the creditor, and that the creditor account for or make his claim in respect of any balance due;

or

(c) That the creditor surrender his security to the liquidator for the benefit

of the estate of the firm and claim in respect of his whole debt; and the Court upon any such application shall have power to make any Órder that it deem just.

may

(2) Where any property of an enemy firm is subject to any mortgage, charge, or lien in favour of an enemy or a partner of the firm, the liquidator may sell such property free of any such mortgage, charge, or lien, and in any such case the said property shall vest in the purchaser absolutely discharged therefrom, or from any claim in respect thereof: Provided that in any such case the liquidator shall out of the net proceeds of the sale pay the amount of the debt secured by such mortgage, charge, or lien (or the estimated value thereof under Section 24), or, if the sale does not realize a sum sufficient to discharge the said debt or the estimated value thereof, then, subject to the rights of prior incumbrances, the whole of the net proceeds of the sale, to the Custodian of Enemy Property, and the sum so paid shall be held by the Custodian in a separate account subject to the orders of the Governor.

24. Contingent or future liabilities. In any case in which any claim by or against an enemy firm is made in respect of any future or contingent debt or liability the value of which is capable of being fairly estimated (not being a claim by an enemy or a partner in an enemy firm), such debt or liability shall be enforce- able for the purpose of the liquidation, and in default of agreement the liquidator or other claimant (not being an enemy or a partner in an enemy firm) may apply to the Court under Chapter IV. hereof to estimate the value of such debt or liability and to direct its enforcement, and the Court, if it shall be of opinion that the value of the debt or liability is capable of being fairly estimated, shall make an estimate thereof and direct its enforcement accordingly, but, if it shall be of opinion that the value of the debt or liability is incapable of being fairly estimated, it shall direct that no account be taken of the said debt or liability in the liquidation. 25. Duty to disclose property of enemy firm.-(1) It shall be the duty of any person who shall have been entrusted with, or shall otherwise be in possession of, any property belonging to an enemy firm, within one month after the commence- ment of this Ordinance or of the declaration of the Governor in Executive Council that such firm is an enemy firm, to disclose to the liquidator particulars in writing of such property and the terms on which it is in the possession of such person, and, on being so required by the liquidator, to furnish to the liquidator all such further information with regard to such property as the liquidator may indicate

(2) Any person who without reasonable excuse, the proof whereof shall lie on him, shall make default in compliance with any of the provisions of this section, shall be guilty of an offence, and shall be liable on summary conviction to a fine not

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exceeding one thousand rupees, or, in default, to simple imprisonment for a period not exceeding six months.

28. Remuneration of liquidator.-A liquidator shall be entitled to retain out of the assets of the firm liquidated such remuneration as the Custodian of Enemy Property may authorize.

27. Security by liquidator.-The Custodian of Enemy Property may require that any liquidator shall give security for the proper discharge of his duties under this Ordinance, and the costs of providing any such security shall be deemed to be part of the expenses of the liquidation.

28. Audit of accounts. The accounts of any liquidator appointed under this Ordinance shall, subject to any special provision in that behalf, be audited in such manner as the Custodian of Enemy Property shall direct.

29.

Procedure on completion of liquidation.—(1) The Custodian of Enemy Property, on being satisfied in that behalf, may by notification published in the Government Gazette declare that the liquidation of any enemy firm has been completed.

(2) In any such case it shall be the duty of the liquidator to pay over to the Custodian of Enemy Property the whole of the surplus proceeds realized by the liquidation.

(3) When any liquidation has been declared to be completed no action or other legal proceeding, whether under this Ordinance or otherwise, shall be brought in any Court of the Colony against the enemy firm or any of its members, or against any property of the firm, or against the liquidator or any official or other person concerned in the liquidation, in respect of any debt or liability of the firm incurred prior to the completion of such liquidation.

30. Completion of liquidation subject to any pending matter or matters.— (1) A liquidation may be completed subject to any pending matter or matters, and, subject to the provisions of this section, all references to the completion of a liquidation under this Ordinance shall include the completion of a liquidation subject to any pending matter or matters.

(2) In any such case the provisions of the last preceding section shall be subject to the following qualifications:-

(a) The declaration of the Custodian of Enemy Property that the liquida- tion has been completed shall declare that it has been completed subject to such pending matter or matters;

(b) The liquidator may retain out of the surplus proceeds of the liquidation such sum as he may be authorized by the Custodian of Enemy Property to retain for the purpose of such pending matter or matters;

(c) The prohibition of actions or other legal proceedings under Sub- section (3) of the last preceding section shall not apply to proceedings under Chapter IV. with reference to such pending matter or matters. (3) When the pending matter or matters shall be finally disposed of the liquidator shall pay over to the Custodian of Enemy Property all such further surplus proceeds of the liquidation as may be in his hands, and the said Custodian shall receive and hold the same subject to the orders of the Governor.

31. Disposal of documents, etc. On the completion of the liquidation of an enemy firm, or on the final disposal of any pending matter or matters subject to which such liquidation is declared completed, the books, papers, accounts, and documents of the firm and of the liquidator shall be dealt with in such manner as the Governor shall direct.

32. Protection of liquidator.-No action shall be brought against any liqui- dator or the Custodian of Enemy Property to charge him with any personal liability in respect of any act which he may have done, or may have omitted to do, when acting in good faith in pursuance, or supposed pursuance, of his powers or duties under this Ordinance.

33. Meaning of "business."-In this Ordinance the expression "business" includes any enterprise, work, or occupation carried on by an enemy, whether directly or by an agent in his behalf.

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34. Meaning of assets " and "property of the firm."-The expressions assets of the firm and "property of the firm" shall include all property of any description previously employed in or in connexion with the business of the firm, or otherwise treated as assets of the firm in the course of its business, and in the case of a partnership shall (unless the Governor otherwise order) include all im- movable property vested in the members of the partnership jointly or in co-ownership.