48624-1916-Supplementary-Alien-Enemies-Winding-up-Amendment-Bill — Page 3

Realisation

of securities held by secured creditors.

Enforce- ment of

orders made on applica- tions for directions.

186

(4.) Any person injured by the operation, of a disclaimer under this section shall, to the extent of the injury, be deemed to be a creditor of the person whose trade or personal affairs are being wound up.

(5.) Any person who alleges himself to be so injured shall, within six weeks of his being required by the liquida- tor to do so, furnish to the liquidator a statement of the extent of such injury, verified by statutory declaration, together with the evidence in support of such statement.

(6.) Upon receiving such statement and the evidence in support thereof the liquidator shall proceed to admit or reject such claim or to admit it in part, and, subject to any order made by the Court under the next succeeding sub- section, his decision shall be final for all purposes of the winding up.

(7.) If the party alleging himself to be injured by the operation of the disclaimer shall be dissatisfied with such decision it shall be lawful for him, within one week of such decision being communicated to him, to require the liquida- tor to apply to the Court for directions, and the liquidator shall thereupon apply to the Court for directions, and any order made by the Court on any such application shall be final for all purposes of the winding up.

(8.) It shall be lawful for the Court to enlarge the time limited in sub-section (5) or sub-section (7) of this section upon such terms as the justice of the case may require, and any such enlargement may be ordered although the appli- cation for the same is not made until after the expiration of the time limited.

11.-(1.) It shall be lawful for any liquidator appointed under the principal Ordinance to give notice to any secured creditor of the person whose affairs such liquidator has been appointed to wind up to realise his security within such time from the receipt of such notice by the secured creditor as the liquidator may by such notice or by any modification thereof appoint: Provided that the time so appointed shall not be less than one month, and provided that no such notice shall be given except with the permis- sion of the Governor.

(2.) The secured creditor shall realise his security within the time appointed, and shall furuish forthwith to the liquidator au account of the proceeds of such realisation.

(3.) Where the proceeds of such realisation exceed the amount to which the secured creditor is entitled under the terms of the security he secured creditor shall forthwith pay any surplus to the liquidator,

(4.) If there be any dispute as to the amount to which the secured creditor is entitled, or if the secured creditor fail to comply with any of the provisions of this section, the liquidator shall apply to the Court for directions and any order made by the Court on such application shall be final for all purposes of the winding up.

(5.) If the secured creditor fails to realise his security within the time limited the Court may by order vest the property in the liquidator and may give directions as to the sale of the property by the liquidator and may make such order as may be necessary for the purpose of enabling the liquidator to realise the property.

(6.) In this section the words “ terms of the security' shall include any rights possessed by any corporate body over the shares in such corporate body in respect of debts due to such corporate body.

12 Auy order made by the Court on any application by a liquidator for directions under any of the provisions of the Alien Enemies (Winding up) Ordinances, 1914 to 1916, may be enforced in the same manner as any judgment or order of the Court in an action would be enforceable: Provided that no order made on any such application for directions shall be enforced without the permission of the Governor.

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