4 & 5 Geo. 5, c. 59, s. 16 (10).
4 & 5 Geo. 5, c. 59,
s. 16 (11).
4 & 5 Geo. 5, c. 59, s. 16 (12).
4 & 5 Geo. 5, c. 59, s. 16 (13).
4 & 5 Geo. 5, c. 59,
s. 16 (14).
4 & 5 Geo. 5, c. 59,
s. 16 (15).
4 & 5 Geo. 5, c. 59,
s. 16 (16).
4 & 5 Geo. 5, c. 59,
s. 16 (17).
4 & 5 Geo. 5, c. 59, s. 16 (18).
4 & 5 Geo. 5, c. 59,
s. 16 (19).
378
(10) If any facts are proved on proof of which the court would be required either to refuse, suspend or attach conditions to the debtor's discharge were he adjudged bankrupt, the court shall refuse to approve the proposal, unless it provides reasonable security for the payment of not less than twenty-five per cent on all the unsecured debts provable against the debtor's estate.
(11) In any other case the court may either approve or refuse to approve the proposal.
(12) If the court approves the proposal, the appro- val may be testified by the seal of the court being attached to the instrument containing the terms of the proposed composition or scheme, or by the terms being embodied in an order of the court.
(13) A composition or scheme accepted and ap- proved in pursuance of this section shall be binding on all the creditors so far as relates to any debts due to them from the debtor and provable in bankruptcy.
(14) A certificate of the Official Receiver that a composition or scheme has been duly accepted and approved shall, in the absence of fraud, be conclusive as to its validity.
(15) The provisions of a composition or scheme under this section may be enforced by the court on application by any person interested, and any dis- obedience of an order of the court made on the appli- cation shall be deemed a contempt of court.
(16) If default is made in payment of any instal- ment due in pursuance of the composition or scheme, or if it appears to the court, on satisfactory evidence, that the composition or scheme cannot, in conse- quence of legal difficulties, or for any sufficient cause, proceed without injustice or undue delay to the creditors or to the debtor, or that the approval of the court was obtained by fraud, the court may, if it thinks fit, on application by the Official Receiver or the trustee or by any creditor, adjudge the debtor bankrupt, and annul the composition or scheme, but without prejudice to the validity of any sale, disposi- tion or payment duly made, or thing duly done, under or in pursuance of the composition or scheme. Where a debtor is adjudged bankrupt under this sub-section, any debt provable in other respects, which has been contracted before the adjudication, shall be provable in the bankruptcy.
(17) If under or in pursuance of a composition or scheme a trustee is appointed to administer the debtor's property or manage his business, or to dis- tribute the composition, section 29 and Part V of this Ordinance shall apply as if the trustee were a trustee in a bankruptcy, and as if the terms "bankruptcy", "bankrupt", and "order of adjudica- tion included respectively a composition or scheme of arrangement, a compounding or arranging debtor, and an order approving the composition or scheme.
(18) Part III of this Ordinance shall, so far as the nature of the case and the terms of the composition or scheme admit, apply thereto, the same interpreta- tion being given to the words "trustee", "bank- ruptcy", "bankrupt", and "order of adjudication", as in the last preceding sub-section.
(19) No composition or scheme shall be approved by the court which does not provide for the payment in priority to other debts of all debts directed to be so paid in the distribution of the property of a bank- rupt.
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