Section 26: Award of compensation — Provincial Insolvency Act, 1920

Current legal status not independently verified — Source: Pakistan Code (single official PDF, 2026-08-21). Whether this provision is still in force has not been independently verified.

Discuss this provision with AI

26. Award of compensation.___ (1) Where a petition presented by a creditor is dismissed under sub-section (1) of section 25, and the Court is satisfied that the petition was frivolous or vexatious, the Court may, on the application of the debtor, award against such creditor such amount, not exceeding one thousand rupees, as it deems a reasonable compensation to the debtor for the expense or injury occasioned to him by the petition and the proceedings thereon, and such amount may be realised as if it were a fine. (2) An award under this section shall bar any suit fo r compensation in respect of such petition and the proceedings thereon. Order of Adjudication

Effective date: 1920-01-01

Related sections

Section 25: Dismissal of petition Section 27: Order of adjudications Section 24: Procedure at hearing Section 28: Effect of an order of adjudication Section 23: Release of debtor.-(1) At the time of making an order admitting the petition or at any Section 29: Stay of pending proceeding . Any Court in which suit or other proceeding is pending

Version provincial-insolvency-act-1920~PK-FED~base · Source-traceable official reference. LawHub does not modify the official record.