Section 6: Acts of insolvency. A debtor commits an act of insolvency in each of the following cases

6. Acts of insolvency. A debtor commits an act of insolvency in each of the following cases namely :___ (a) If in 1[Pakistan] or elsewhere, he makes a transfer of all or substantially all his property to a third person for the benefit of his creditors generally ; (b) If, in 1[Pakistan] or elsewhere, he makes a transfer of his property or of any part thereof, with intent to defeat or delay his creditors; (c) If, in 1[Pakistan] or elsewhere, he makes any transfer of his property, or of any part thereof, which would, under this or any other enactment for the time being in force, be void as a fraudulent preference if he were adjudged an insolvent ; (d) if, with intent to defeat or delay his creditors,___ (i) he departs or remains out of the 1[Pakistan], (ii) he departs from his dwelling-house or usual place of business or otherwise absents himself, (iii) he secludes himself so as to deprive his creditors of the means of communicating with him ; (e) if any of his property has been sold in execution of the decree of any Court for the payment of money ; (f) if he petitions to be adjudged an insolvent under the provisions of this Act ; (g) if he gives notice to any of his creditors that he has suspended, or that he is about to suspend, payment of his debts ; or (h) if he is imprisoned in execution of the decree of any Court for the payment of money. Explanation.- For the purposes of this section the act of an agent may be the act of the principal. Petition

Effective date: 1920-01-01

Related sections