The Provincial Insolvency Act, 1920

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text below is the official Pakistan Code text as retrieved; whether it is still in force, or has since been amended or repealed, has not been independently checked.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 consolidate and amend the law relating to insolvency 2* * *, as administered by Courts having jurisdiction outside 3* * * 5[the Karachi Division]; it is hereby enacted as follows :___

• Section 1: Short title and extent
• Section 2: Definitions
• Section 3: Insolvency Jurisdiction
• Section 4: Power of Court to decide all questions arising in insolvency
• Section 5: General powers of Courts
• Section 6: Acts of insolvency. A debtor commits an act of insolvency in each of the following cases
• Section 7: Petition and adjudication
• Section 8: Exemption of corporation, etc., from insolvency proceedings
• Section 9: Conditions on which creditor may petition
• Section 10: Conditions on which debtor may petition
• Section 11: Court to which petition shall be presented. Every insolvency petition shall be presented
• Section 12: Verification of petitions. Every insolvency petition shall be in writing and shall be signed
• Section 13: Contains of petition
• Section 14: Withdrawal of petitions. No petition, whether presented by a debtor or by a creditor, shall
• Section 15: Consolidation of petitions. Where two or more insolvency petitions are presented against
• Section 16: Power to change carriage of proceedings. Where the petitioner does not proceed with
• Section 17: Continuance of proceedings on death of debtor. If a debtor by or against whom an
• Section 18: Procedure for admission of petition. The procedure laid down in the Code of Civil
• Section 19: Procedure on admission of petition
• Section 20: Appointment of interim receiver. The Court when making an order admitting the petition
• Section 21: Interim proceedings against debtor. At the time of making an order admitting the petition
• Section 22: Duties of debtors. The debtor shall on the making of an order admitting the petition
• Section 23: Release of debtor.-(1) At the time of making an order admitting the petition or at any
• Section 24: Procedure at hearing
• Section 25: Dismissal of petition
• Section 26: Award of compensation
• Section 27: Order of adjudications
• Section 28: Effect of an order of adjudication
• Section 29: Stay of pending proceeding . Any Court in which suit or other proceeding is pending
• Section 30: Publication of order of adjudication. Notice of an order of adjudication stating the name,
• Section 31: Protection order
• Section 32: Power to arrest after adjudication. At any time after an order of adjudication has been
• Section 33: Schedule of creditors
• Section 34: Debts provable under the Act
• Section 35: Power to annual adjudication of insolvency. Where, in the opinion of the Court, a debtor
• Section 36: Power to cancel one of concurrent orders of adjudication. If, in any case in which an
• Section 37: Proceedings on annulment
• Section 38: Compositions and schemes of arrangement
• Section 39: Order on approval. If the Court approves the proposal, the terms shall be embodied in an
• Section 40: Power to re-adjudge debtor insolvent. If default is made in the payment of any instalment
• Section 41: Discharge
• Section 42: Cases in which Court must refuse an absolute discharge
• Section 43: Adjudication to be annulled on failure to apply for discharge
• Section 44: Effect of order of discharge
• Section 45: Debt payable at a future time. A creditor may prove for a debt not payable when the
• Section 46: Mutual dealings and set-off. Where there have been mutual dealings between an insolvent
• Section 47: Secured creditors
• Section 48: Interest
• Section 49: Mode of proof
• Section 50: Disallowance and reduction of entries in schedule
• Section 51: Restriction of rights of creditor under execution
• Section 52: Duties of Court executing decree as to property taken in execution. Where execution of
• Section 53: Avoidance of voluntary transfer. Any transfer of property not being a transfer made
• Section 54: Avoidance of preference in certain cases
• Section 54A: By whom petitions for annulment may be made. A petition for the annulment of any
• Section 55: Protection of bona fide transactions. Subject to the foregoing provisions of this Act with
• Section 56: Appointment of receiver.-(1) The Court may, at the time of the order of adjudication, or
• Section 57: Power to appoint Official Receiver
• Section 58: Powers of Court if no receiver appointed. Where no receiver is appointed, the Court shall
• Section 59: Duties and powers of receiver. Subject to the provisions of this Act, the receiver shall,
• Section 59A: Power to require information regarding insolvent’s property
• Section 60: Special provisions in regard to immovable property
• Section 61: Priority of debts
• Section 62: Calculation of dividends
• Section 63: Right of creditor who has not proved debt before declaration of a dividend. Any
• Section 64: Final dividend. When the receiver has realised all the property of the insolvent or so much
• Section 65: No suit for dividend. No suit for a dividend shall lie against the receiver; but where the
• Section 66: Management by and allowance to insolvent
• Section 67: Right of insolvent to surplus. The insolvent shall be entitled to any surplus remaining
• Section 67A: Committee of inspection
• Section 68: Appeal to Court against receiver. If the insolvent or any of the creditors or any other
• Section 69: Offences by debtors. If a debtor, whether before or after the making of an order of
• Section 70: Procedure on charge under section 69. Where the Court is satisfied, after such
• Section 71: Criminal liability. Where an insolvent has' been guilty of any of the offences specified in
• Section 72: Undischarged insolvent obtaining credit
• Section 73: Disqualifications of insolvent
• Section 74: Summary administration. When a petition is presented by or against a debtor, if the Court
• Section 75: Appeals
• Section 76: Costs. The costs of any proceeding under this Act, including the costs of maintaining a
• Section 77: Courts to be auxiliary to each other. All Courts having jurisdiction in insolvency and the
• Section 78: Limitation
• Section 79: Power to make rules
• Section 80: Delegation of powers to Official Receivers
• Section 81: Power of Provincial Government to bar application of certain provisions to certain
• Section 82: Savings. Nothing in this Act shall
• Section 83: Repeals. 4* * * * * * *
• SCHEDULE I: SCHEDULE I
• SCHEDULE II: SCHEDULE II