Section 24

At the time of making a receiving order the court shall adjudge the debtor bankrupt unless the debtor can show to the satisfaction of the court that he is in a position to offer a composition or make a scheme of arrangement satisfactory to his creditors; provided that when a receiving order is made against a firm in the firm’s name the court shall not adjudge any person bankrupt as a member of the firm unless that person is proved to the satisfaction of the court to be a partner by his own admission or by evidence on oath.

The court may at any time, on the application of the debtor himself, by petition in writing, unstamped, to be forthwith filed, adjudge him bankrupt and at the same time make a receiving order against him, and the application may be made without notice.

Where a receiving order is made against a debtor, if the creditors at the first meeting or any adjournment thereof resolve by ordinary resolution that the debtor be adjudged bankrupt or pass no resolution, or if the creditors do not meet, or if a composition or scheme is not accepted or approved in pursuance of this Act within 14 days after the conclusion of the examination of the debtor or such further time as the court allows, the court shall adjudge the debtor bankrupt.

When a debtor is adjudged bankrupt his property shall become divisible among his creditors and shall vest in the Official Assignee.

Notice of every order adjudging a debtor bankrupt, stating the name, address and description of the bankrupt and the date of the adjudication, shall be gazetted and advertised in a local paper as prescribed, and the date of the order shall for the purposes of this Act be the date of the adjudication.