The Insolvancy (Karachi Division) Act, 1909

Current legal status not independently verified. Source: Pakistan Code (single official PDF, 2026-08-21). The text below is the official Pakistan Code text as retrieved; whether it is still in force, or has since been amended or repealed, has not been independently checked.

WHEREAS it is expedient to amend the law relating to insolvency in 5[the Karachi Division 1* *] ; It is hereby enacted as follows :___ PRELIMINARY

• Section 1: Short title and commencement
• Section 2: Definitions. In this Act, unless there is anything repugnant in the subject or context,
• Section 3: Courts having Jurisdiction in insolvency. The Courts having jurisdiction under this Act
• Section 4: Jurisdiction to be exercised by a single Judge. All matters in respect of which
• Section 5: Exercise of jurisdiction in chambers. Subject to the provisions of this Act and of rules,
• Section 6: Delegation of powers to officers of Court
• Section 7: Power of Court to decide all questions arising in insolvency. Subject to the provisions
• Section 8: Appeals in insolvency. (1) The Court may review, rescind or vary any order made by it
• Section 9: Acts of insolvency. A debtor commits an act of insolvency in each of the following cases,
• Section 10: Power to adjudicate. Subject to the conditions specified in this Act, if a debtor commits
• Section 11: Restrictions on jurisdiction. The Court shall not have jurisdiction to make an order of
• Section 12: Conditions on which creditor may petition
• Section 13: Proceedings and order on creditor’s petition
• Section 14: Conditions on which debtor may petition
• Section 15: Proceedings and order on debtor’s petition
• Section 16: Discretionary powers as to appointment of interim receiver. The Court may, if it is
• Section 17: Effect of order of adjudication. On the making of an order of adjudication, the property
• Section 18: Stay of proceedings
• Section 18A: Control over insolvency proceedings in subordinate Court. (1) The Court may, at
• Section 19: Power to appoint special manager
• Section 20: Advertisement of order of adjudication. Notice of every order of adjudication, stating
• Section 21: Power for Court to annul adjudication in certain cases
• Section 22: Concurrent proceedings in British Courts. Where it is proved to the satisfaction of the
• Section 23: Proceedings on annulment
• Section 24: Insolvent’s schedule
• Section 25: Protection order
• Section 26: Meetings of creditors
• Section 27: Public examination of the insolvent
• Section 28: Submission of proposal and acceptance by creditors
• Section 29: Approval of proposal by Court
• Section 30: Order on approval
• Section 31: Power to re-adjudge debtor insolvent
• Section 32: Limitation of effect of composition or scheme. Notwithstanding the acceptance and
• Section 33: Duties of insolvent as to discovery and realization of property
• Section 34: Arrest of insolvent
• Section 35: Redirection of letters. Where the official assignee has been appointed interim receiver or
• Section 36: Discovery of insolvent’s property
• Section 37: Power to issue commissions. The Court shall have the same powers to issue
• Section 38: Discharge of insolvent
• Section 39: Cases in which the Court must refuse an absolute discharge
• Section 40: Hearing of application for discharge. Notice of the appointment by the Court of the day
• Section 41: Power to annual adjudication on failure to apply for discharge. If an insolvent does
• Section 42: Renewal of application and variation of terms of order
• Section 43: Duty of discharged insolvent to assist in realization of property. A discharged
• Section 44: Fraudulent settlements. In either of the following cases, that is to say ;
• Section 45: Effect of order of discharge
• Section 46: Debts provable in insolvenc y
• Section 47: Mutual dealings and set-off. Where there have been mutual dealings between an
• Section 48: Rules as to proof of debts. With respect to the mode of proving debts, the right of proof
• Section 49: Priority of debts
• Section 50: Rent due before adjudication. After an order of adjudication has been made no distress
• Section 51: Relation of assignee’s title. The insolvency of a debtor, whether the same takes place on
• Section 52: Description of insolvent property divisible amongst creditors
• Section 53: Restriction of rights of creditor under execution
• Section 54: Duties of Court executing decree as to property taken in execution. Where execution of a
• Section 55: Avoidance of voluntary transfer. Any transfer of property, not being a transfer made
• Section 56: Avoidance of preference in certain cases. (1) Every transfer of property, every payment
• Section 57: Protection of bona fide transactions. Subject to the foregoing provisions with respect to
• Section 58: Possession of property by official assignee
• Section 59: Seizure of property of insolvent
• Section 60: Appropriation of portion of pay or other income to creditors
• Section 61: Vesting and transfer of property. The property of the insolvent shall pass from official
• Section 62: Disclaimer of onerous property
• Section 63: Disclaimer of lease-holds. Subject always to such rules as may be made in this behalf,
• Section 64: Power to call on official assignee disclaim. The official assignee shall not be entitled to
• Section 65: Power for Court to rescind contract. The Court may, on the application of any person
• Section 66: Power for Court to make vesting order in respect of disclaimed property
• Section 67: Persons injured by disclaimer may prove. Any person injured by the operation of a
• Section 68: Duty and powers of official assignee as to realization
• Section 69: Declaration and distribution of dividends
• Section 70: Joint and separate properties. Where one partner in a firm is adjudged insolvent, a
• Section 71: Calculation of dividends
• Section 72: Right of creditor who has not proved debt before declaration of a dividend.- Any
• Section 73: Final dividend
• Section 74: No suit for a dividend. No suit for a dividend shall lie against the official assignee, but,
• Section 75: Power to allow insolvent to manage property, and allowance to insolvent for
• Section 76: Right of insolvent to surplus
• Section 77: Appointment and removal of official assignees of insolvents estate
• Section 78: Power to administer oath. An official assignee may, for the purpose of affidavits
• Section 79: Duties as regards the insolvent’s conduct
• Section 80: Duty to furnish list of creditors. The official assignee shall, whenever required by any
• Section 81: Remuneration
• Section 82: Misfeasance. The Court shall call the official assignee to account for any misfeasance,
• Section 83: Name under which to sue or be sued. The official assignee may sue and be sued by the
• Section 84: Office vacated by insolvency. If an order of adjudication is made against an official
• Section 85: Discretionary powers and control thereof
• Section 86: Appeal to Court. If the insolvent or any of the creditors or any other person is aggrieved
• Section 87: Control of Court
• Section 88: Committee of inspection. The Court may, if it so thinks fit, authorize the creditors who
• Section 89: Control of committee of inspection over official assignee. The committee shall have
• Section 90: Powers of the Court
• Section 91: Consolidation of petitions. Where two or more insolvency petitions are presented
• Section 92: Power to change carriage of petition. Where the petitioner does not proceed with due
• Section 93: Continuance of proceedings on death of debtor. If a debtor by or against whom an
• Section 94: Power to stay proceedings. The Court may, at any time, for sufficient reason, make an
• Section 95: Power to present petition against a partner. Any creditor whose debt is sufficient to
• Section 96: Power to dismiss petition against some respondents only. Where there are more
• Section 97: Separate insolvency petitions against partners. Where an order of adjudication has
• Section 98: Suits by official assignee and insolvent’s partner
• Section 99: Proceedings in partnership name.- (1) Any two or more persons, being partners, or any
• Section 100: Warrants of Insolvency Courts
• Section 101: Limitation of appeals. The period of limitation for an appeal from any act or decision
• Section 102: Undischarged insolvent obtaining credit. An undischarged insolvent obtaining credit
• Section 103: Punishment of insolvent for certain offences. Any person adjudged insolvent who
• Section 104: Procedure on charge under section 103. (1) Where the Court is satisfied, after such
• Section 105: Criminal liability after discharge or composition. Where an insolvent has been guilty
• Section 106: Summary administration in small cases
• Section 107: Exemption of corporation, etc., from insolvency proceedings. No insolvency petition
• Section 108: Administration in insolvency of estate of person dying insolvent
• Section 109: Vesting of estate and mode of administration
• Section 110: Payments of transfer by legal representatives
• Section 111: Saving of jurisdiction of Administrator General. The provisions of sections 108, 109
• Section 112: Rules
• Section 113: Sanction to rules. Rules made under the provisions of this Part shall be subject to the
• Section 114: Publication of rules. Rules so made and sanctioned shall be published 4* * * in the
• Section 115: Exemption from duty of transfers, etc., under this Act
• Section 116: The Gazette to be evidence
• Section 117: Swearing of affidavits. Any affidavit may be used in a Court having jurisdiction under
• Section 118: Formal defect not to invalidate proceedings
• Section 119: [Application of Trustee Act to insolvency of trustee.] Omitted by the Federal Laws
• Section 120: Certain provisions to bind the Government. Save as herein provided, the provisions
• Section 121: [Savings for existing rights of audience.] Omitted by the Federal Laws (Revision and
• Section 122: Lapse and credit to Government of unclaimed dividends. Where the official
• Section 123: Claims to monies credited to Government under section 122. Any person claiming to
• Section 124: Access to insolvent’s books
• Section 125: Fees and percentages. Such fees and percentages shall be charged for and in respect of
• Section 126: Courts to be auxiliary to each other. All Courts having jurisdiction under this Act
• Section 127: [Saving.] Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981
• THE FIRST SCHEDULE: THE FIRST SCHEDULE
• THE SECOND SCHEDULE: THE SECOND SCHEDULE