(1) If at any stage of the proceedings under Chapter III the Board finds that income of the debtor and his movable property are not sufficient to allow his debts to be liquidated by annual instalments not exceeding twenty in number, the Board shall make an order adjudicating the debtor an insolvent.
(2) After the debtor has been adjudicated an insolvent, the Board shall direct that such portion of the property of the debtor liable to attachment and sale under section 60 of the Code of Civil Procedure, 1908 excluding such portion thereof as the Government shall from time to time notify in the 16[Official Gazette] as minimum necessary for the maintenance of the debtor and his dependents, as may be required to liquidate all the debts of the debtors shall immediately be sold free of all encumbrances in liquidation of all debts outstanding against such debtor.
53. The order of adjudication made under section 52 shall have the force of an order made by a competent Court in the exercise of its powers under 17the Andhra Pradesh (Telangana Area) Insolvency Act, 1351 F.
54. The proceeds realised by the sale of the property of the insolvent under section 52 shall be distributed in the order of priority specified in clause (iii) of sub-section (2) of section
36.
16. Substituted for the word “Jarida” by the A.P.A.O., 1957.
17. This Act was repealed by Act No.23 of 1965.
Provisions of Civil Procedure Code to apply to proceedings.
Procedure in insolvency proceedings.
Act VIII of 1351 F.
Distribution of assets of insolvent.
Board to declare debtor insolvent in certain circumstances.
32 [Act No. XII of 1952]
55. No application or proceeding in regard to the insolvency of a debtor shall lie in or shall be dealt with otherwise than by the Board or where an appeal lies by the Court of appeal.
56. No appeal shall lie from any order passed under this Chapter except on the ground that the insolvent has failed to disclose all the material facts relating to his assets and liabilities.
CHAPTER V.
MISCELLANEOUS.
57. In computing the period of limitation for the institution of any suit or proceeding in respect of any debt due from any person who is held not to be a debtor by the Board or the Court in appeal the period during which the proceedings were pending before the Board or Court in appeal in respect of such debt shall be excluded.