182783-1931-Supplementary-Draft-Bill--Bankruptcy — Page 67

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Admission or Rejection of Proofs.

22. The trustee shall examine every proof and the grounds of the debt, and in writing admit or reject it, in whole or in part, or require further evidence in support of it. If he rejects a proof he shall state in writing to the creditor the grounds of the rejection.

23. If the trustee thinks that a proof has been im- properly admitted, the court may, on the application of the trustee, after notice to the creditor who made the proof, expunge the proof or reduce its amount.

24. If a creditor is dissatisfied with the decision of the trustee in respect of a proof, the court may, on the application of the creditor, reverse or vary the decision. The Official Receiver or trustee shall not be personally liable for any costs in respect of the re- jection by him in whole or in part of any proof, unless it is proved to the satisfaction of the court that he has acted mala fide or with gross negligence.

25. The court may also expunge or reduce a proof upon the application of a creditor if the trustee declines to interfere in the matter, or, in the case of a composition or scheme, upon the application of the debtor.

26. The Official Receiver, before the appointment of a trustee, shall have all the powers of a trustee with respect to the examination, admission, and re- jection of proofs, and any act or decision of his in relation thereto shall be subject to the like appeal.

Title.

THIRD SCHEDULE.

[s 146.]

ENACTMENTS REPEALED..

Extent of Repeal.

The Bankruptcy Ordin

ance, 1891.

The Magistrates Ordin-

ance, 1890,

The whole Ordinance

Paragraph 9 of the Third Schedule, as amended by section 26 of the Magistrates Amend. ment Ordinance, 1927

The Bankruptcy Amend-The whole. Ordinance.

ment Ordinance, 1929.

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