Synopsis
1. Who is bankrupt?
2. Background of bankruptcy legislation.
3. Objects of law of bankruptcy.
4. Who can be declared as bankrupt?
5. Who can’t be declared as bankrupt?
6. Bankruptcy Court.
7. acts of bankruptcy. ( section- 09 )
8. Bankruptcy proceedings.
9. Effects of order of adjudication.
Who is bankrupt?
A bankrupt is a person who is unable to pay his debts and the Court adjudges him as
bankrupt. According to Section 2(18) of the Bankruptcy Act 1997, ‘Bankrupt’ means a
debtor who is adjudged a Bankrupt under section 10 or 45 or 46 (13).
Background of bankruptcy legislation.
Previously, the law relating to bankruptcy was contained in two statutes:
i. The Insolvency (Dacca) Act, 1909, which was applicable within Dhaka City.
ii. The Insolvency Act, 1920 which was applicable throughout Bangladesh except
Dhaka city.
According to Mulla, the differences between the two Acts relate mostly to matters of
procedure. The points of differences are summed up below:
i. The procedure from the date of presentation of the petition to the date of
adjudication.
ii. The duties of the debtor, including his examination. 3. The person in whom the
debtor's property is to be vested.
iii. The doctrine of Relation Back.
iv. The constitution of the courts.
In 1997 The Bankruptcy Act was enacted. By section 119 of this Act. The Acts of
1909 and 1920 were repealed.
