The harmonisation of insolvency proceedings

The main point of view of the Committee is that there should be general insolvency procedure that applies to all insolvents, regardless of their status as individuals or corporations. Further, the Committee advocates for a harmonisation of the sub-systems of administration  such as Deeds of arrangement and receivership etc. However, the borrowing of procedures from the old bankruptcy code makes harmonisation difficult.

Inconsistencies

A number of inconsistencies between the two codes has been discussed in detail. These were found in the following fields:

• Fraudulent preference
• Mutual credit and set off
• Reputed ownership
• Rights of creditors, secured creditors and proof of their debts
• Rights, duties and legal status of trustees in bankruptcy
• Winding up
• Mode of initiation of procedures (the greatest anomaly of all).

Chapter6