PROCEDURE OF ADJUDICATION

Order of adjudication:

The order of court by which a person is declared to be insolvent is called the order adjudication.
 

Conditions of a creditor’s petition
1.The amount owned must be Rs. 500 or more. Two or more creditors may present a joint petition in which case it is sufficient if the total claim of the creditors amounts to at least Rs.500 in all.

WHO CAN BE DECLARED AS AN INSOLVENT?

Any person, man or woman, who has attained majority, can be declared insolvent if the conditions laid down in the insolvency acts are fulfilled. Certain special cases are discussed below:

Minor: 

In India a minor is not personally responsible for his debts and is not capable of entering into contracts. Therefore a minor can’t be adjudicated an insolvent. If by error a minor is adjudicated an insolvent the order must be annulled cancelled.