After the receiving order a debtor must be made bankrupt if the creditors resolve so, or if no meeting is held or no resolution passed, or a composition or scheme" is not approved within fourteen days of the public examination. The debtor may (he does not have to) be adjudicated bankrupt where (1) the debtor applies, (2) insufficient creditors attend the first meeting to form a quorum, (3) the court believes the debtor has absconded, (4) a composition or scheme is not accepted at the first creditors' meeting, (5) the public examination is adjourned sine die, (6) the debtor defaults in monies due. where a composition or scheme has been accepted or where the latter was obtained by fraud, (7) the debtor without good reason, does not submit a statement of affairs. Notice of adjudication is publishedin the London Gazette and a local paper. On adjudication, the debtor becomes a bankrupt and his property vests in a trustee for the benefit of his creditors.
Adjudication may be annulled where (I) the court is of the opinion the debtor ought not to have been made bankrupt or, (2) it is proved the debts have been paid in full or. (3) a composition or scheme is accepted.
|Reference: The Penguin Business Dictionary, 3rd edt.|