THE ANDHRA PRADESH PROVINCIAL INSOLVENCY RULES

Rule - 1. Short title and commencement.

(1)     These rules may be called the Andhra Pradesh Provincial Insolvency Rules.

(2)     They shall apply to all proceedings under the Provincial Insolvency Act, 1920 in any Court subordinate to the High Court of Andhra Pradesh.

Rule - 2. Forms.

The forms mentioned in these rules are the forms in the appendix hereto and shall be used with such variations as circumstances may require.

Rule - 3. Definitions.

(1)     In these rules, unless there is anything repugnant in the subject or context-

"The Act" means the Provincial Insolvency Act, 1920;

'The Court" includes a receiver when exercising the powers of the Court in accordance with Section 80 of the Act;

"Receiver" means a receiver appointed by the Court under Section 56 (1) of the Act;

"Interim Receiver" means a receiver appointed by the Court under Section 20 of the Act;

"Proved debt" means the claim of a creditor so far as it has been admitted by the Court.

(2)     Save as otherwise provided all words and expressions used in these rules shall have the same meaning as those assigned to them in the Act.

Rule - 4. Cause-title and number.

(1)     Every petition, application, affidavit or order in any proceeding under the Act or under these rules shall be headed by a cause-title in Form No. 1.

(2)     Except in cases which are to be administered summarily the Court may, at the time of admitting a petition for adjudication, require the petitioner to deposit a sum of Rs. 15 to meet the initial expenses of administration.

(3)     When an insolvency petition is admitted, the Chief Ministerial Officer of the Court shall assign a distinctive serial number to the petition and all subsequent proceedings on the petition shall bear that number.

Rule - 5. Creditor to furnish copies of his petition.

(1)     When an insolvency petition presented by a creditor is admitted, the creditor shall within seven days thereafter furnish a copy of the petition for service on the debtor or, if there are more debtors than one, as many copies as there are debtors and where the petition alleges an act of insolvency under clauses (a), (b) or (c) of section of the Act, as many additional copies as there are transferees and the Chief Ministerial Officer of the Court shall sign the copy or copies if on examination he finds them to be correct.

(2)     The copy shall be served together with the notice of the order fixing the date for hearing the petition on the debtor or upon the person upon whom the Court orders notice to be served.

Rule - 6. Particulars to be furnished by debtor.

Within a week after the date on which the debtor is adjudged an insolvent on the application of a creditor, or with ten days of the admission of a petition by a debtor, or within such further time as the Court may order in either case, the debtor shall file an affidavit in Form No. 2 giving full, correct and true particulars of the survey or re-survey numbers of the properties, the boundaries thereof, the names of the persons in possession of the properties, the terms of the lease, if the properties have been leased out and the rent due and the encumbrances, if any, with detailed description of the date and amount of each encumbrance. If the property is only a portion of the survey filed its boundaries shall be described. With regard to book debts, particulars as to the amounts due the rate of interest and the time at which the debt is likely to get time-barred shall be given. As regards outstanding due to the debtor, the document by which the outstanding is evidenced, the date and amount of the debt, the address of the debtor, the rate of interest payable thereon as also the date of any payments made for interest or principal which will save limitation as well as the date on which the claim or the debt is likely to become barred by limitation shall be given. The debtor shall also state the solvency or otherwise of his debtors and the then market value of the properties to the extent of his knowledge.

Along with the affidavit, the debtor shall produce all the title-deeds of his properties, account books and documents evidencing his outstanding. If he is not in possession of the title-deeds, he shall give detailed information as regards the dates of the documents, the nature of the title-deeds, the executants of the documents whether registered or not and the names of the persons in whose custody they are.

Rule - 7. Death of debtor before hearing of petition.

If a debtor against whom an insolvency petition has been admitted dies before the hearing of the petition, the Court may order that notice of the order fixing the date for hearing the petition shall be served on his legal representative or on such other person as the Court may think, fit in the manner provided for the service of summons.

Rule - 8. Proof of debts.

(1)     Unless otherwise ordered all claims shall be proved by affidavit in Form No. 3 in the manner provided in Section 49 of the Act, provided that before admitting any claim the Court may call for further evidence.

(2)     The affidavit may be made by the creditor or by some person authorised by him, provided that if the deponent is not the creditor, the affidavit shall state the deponent's authority and means of knowledge.

(3)     As soon as may be after proof of any debt is tendered the Court shall by order writing admit the creditor's claim in whole or in part or reject it provided that when a claim is rejected in whole or in part the order shall state briefly the reasons for the rejection.

(4)     A copy of every order rejecting claim, or admitting it in part only, shall be sent by the Court by registered post to the persons making the claim within seven days from the date of the order.

Rule - 9.

(a)      Schedule of creditors.

As soon as the schedule of creditors has been framed a copy thereof shall, if a Receiver or Interim Receiver has been appointed, be supplied to him, and all subsequent entries and alterations made therein shall be communicated to the Receiver or Interim Receiver.

(b)      Public Examination or Debtor.

At the time of passing the order of adjudication, the Court shall fix a date directing the debtor to appear before the Official Receiver; on such date and on adjourned dates the Official Receiver shall hold a public examination of the debtor as to his conduct, dealings and property after notice to all creditors who have tendered proof of their debts. Notice to creditor shall be sent by registered post for acknowledgment or shall be served personally or in such manner as the Official Receiver may think fit. The debtor shall be examined on a oath and it shall be his duty to transfer all questions which the Official Receiver or the creditors or their pleaders may put to him. The notes of the examination shall be taken down in writing by the Official Receiver in English and shall be read over or explained to the debtor and his signature obtained. Such notes may be used thereafter in evidence against him and shall be open to inspection by any creditor who has tendered proof of his debt at all reasonable times. If the debtor fails to appear on such date or on adjourned dates the Official Receiver shall be at liberty to apply to Court for necessary directions.

Rule - 10. Consideration of compositions and schemes of arrangement.

(1)     If a debtor submits a proposal under Section 38 (1) of the Act, the Court shall fix a date for the consideration of the proposal and notice thereof together with a copy of the terms of the proposal shall be sent to every creditor who has proved.

(2)     At the meeting for the consideration of the proposal the debtor shall be entitled to address the Court in person or by pleader in support of the proposal and every creditor who has proved shall be entitled in person or by pleader to question the debtor and to address the Court.

Rule - 11. Appointment of and security from Receiver and Interim Receiver.

(1)     Every appointment of a Receiver or Interim Receiver shall be by order in writing signed by the Court. Copies of this order sealed with the seal of the Court shall be served on the debtor and forwarded to the person appointed.

(2)     Every Receiver or Interim Receiver other than Official Receiver shall be required to give such security as the Court thinks fit.

(3)     The Official Receivers having furnished security in pursuance of the special rules for the Madras Judicial Subordinate Service, the Court shall not require any other security from them (P. Dis. No. 794 of 1942).

(4)     In case where the Official Receiver is empowered to make order of adjudication, he shall send a copy of every order of adjudication made by him to the Court in which the proceedings are pending, and may apply that he may be appointed Receiver for the property of the insolvent.

(5)     The Court may thereupon appoint the Official Receiver to be receiver for the property of the insolvent and, unless it seems fit to do so, it shall not be necessary to give notice of the application to any person.

Provided that any party to the proceedings may apply to the Court, upon notice to the Official Receiver and the insolvent that the appointment of the Official Receiver may be set aside a special receiver may be appointed in this place.

Rule - 12. Removal or discharge of Receiver or Interim Receiver.

(1)     The Court may remove or discharge any Receiver or Interim Receiver other than an Official Receiver, and any Receiver or Interim Receiver so removed or discharged shall unless the Court otherwise orders, deliver up any assets of the debtor in his hands and any books, accounts or other documents relating to the debtor's property which are in his possession or under the control to such person as the Court may direct.

(2)     If an order of adjudication is annulled. Receiver (if any) shall unless the Court otherwise order, deliver up assets of the debtor in his hands and any books, account of other documents relating to the debtor's property which are in his possession or under his control to the debtor or to such other person as the Court may direct.

Rule - 13. Receiver or Interim Receiver, an Officer of the Court.

Every Receiver or Interim Receiver shall be deemed for the purpose of the Act and of these rules to be an officer of the Court.

Rule - 14. Application by Receiver or Interim Receiver.

(1)     Every application to the Court made by a Receiver or an Interim Receiver shall be in writing.

(2)     The Court may order that notice of any application by the Receiver or Interim Receiver and of the date fixed for the hearing of the application shall be sent by Registered post.

Rule – 15. Remuneration of Receivers.

(1)     The remuneration of Receivers or Interim Receivers other than Official Receiver shall be in such proportion to the amount of the dividends distributed as the Court may direct, provided that it does not exceed five per centum of the amount of the dividends.

(2)     If a Receiver other than the Official Receiver has been appointed in an insolvency in which the Court makes an order approving a proposal under Section 38 (7) of the Act, the remuneration to be paid to the Receiver shall be fixed by the Court, and the order approving the proposal shall make provision of the payment of the remuneration and shall be subject to the payment thereof.

Rule - 16. Receiver's report.

(1)     Unless the Court otherwise directs, the Receiver or Interim Receiver shall as soon as may be after his appointment, and in any case before the hearing of the debtor's application for discharge, draw up a report upon the cause of the debtor's insolvency, the conduct of the debtor so far as it may have contributed to his insolvency and also his conduct during the insolvency proceedings in all matters connected with such proceedings and in particular such report shall state (a) whether the value of the debtor's assets is less than half his unsecured liabilities and, if so whether that fact is due to circumstances for which the debtor cannot justly be held responsible, (b) whether the debtor his omitted to keep such book of account as are usual and proper in the business carried on by him and as sufficiently disclose his business transactions and financial position within the three years immediately preceding his insolvency, (c) whether the debtor has continued to trade after knowing himself to be insolvent, (b) whether the debtor has contracted any debt provable under the Act without having at the time or contracting it any reasonable or probable ground of expectation that he would be able to pay it, (e) whether the debtor has failed to account satisfactorily for any loss of assets or for any deficiency of assets to meet his liabilities, (f) whether the debtor has brought on; or contributed to his insolvency by rash and hazardous speculations or by unjustifiable extravagance in living or by gambling or by culpable neglect of his business affairs, (g) whether the debtor has within three months proceeding the date of the presentation of the petition when unable to pay his debts as they became due given an undue preference to any of his creditors, (h) whether the debtor has on any previous occasion been adjudged an insolvent or made a composition or arrangement with his creditors and (i) whether the debtor has concealed or removed his property or any part of it or has been guilty of any other fraud or fraudulent breach of trust.

(2)     If the debtor submits a proposal under Section 38 (1) of the Act, the Receiver shall state in his report whether in his opinion the proposal is reasonable and is likely to benefit the general body of the creditors and shall state the reason for his opinion.

Rule - 17. Debtor to furnish accounts.

Unless the Court otherwise directs, the debtor shall furnish the Receiver or Interim Receiver or, if a Receiver or Interim Receiver has not been appointed, the Court, with a trading account, and an account showing all moneys and securities paid, disposed of or encumbered, or recovered by or from the debtor or on his account and his income and the source thereof for such period as the Receiver or Interm Receiver or, if a Receiver or, Interim Receiver has not been appointed, the Court may direct, provided that the Receiver or Interim Receiver shall not without the previous sanction of the Court direct the debtor to furnish accounts for more than two years before the date of the presentation of the insolvency petition.

Rule - 18. Receiver's accounts.

(1)     The Receiver or Interim Receiver shall keep a cash book and such books and other papers as are necessary to give a correct view of this administration of the estate, and shall submit his accounts at such times and in such forms as the Court may direct. Such accounts shall be audited by such person or persons as the Court may direct.

The costs of the audit shall be fixed by the Court and shall be paid out of the estate.

(2)     The accounts of Official Receivers shall be audited annually by the Accountant-General[1].

(3)     The cost of such audit, calculated at 12 annas per Rs. 100 on the amount realized since the last audit of the estate concerned, shall be paid by the Official Receiver from such amount and, in case a distribution to creditors is ordered in any year before the audit has taken place, shall be reserved for such payment from the amount otherwise available for distribution.

Rule - 19. Distribution of dividend.

(1)     No dividend shall be distributed by a Receiver without the previous sanction of the Court.

(2)     Notice in Form No. 8 or Form No. 9 as may be appropriate, that the distribution of a dividend has been sanctioned shall be sent by the Receiver or, if there is no Receiver by the Court to every creditor, who has proved a debt, by registered post within one month from the date of the order sanctioning the distribution.

(3)     The amount of any dividend due to a creditor may at his request be transmitted to him by postal money order at his risk and expense and if, the amount does not exceed Rs. 25, shall be so transmitted, unless he appears to claim it in person or by duly authorized agent before the Receiver or, if there is no Receiver before the Court within three months from the date of the order sanctioning the distribution of dividend.

(4)     An order shall not be made under Section 65 of the Act without giving the Receiver an opportunity to show cause why the order should not be made.

Rule - 20. Application for discharge.

(1)     An application for discharge shall not be heard and after the schedule or creditors has been framed.

(2)     Every creditor who has proved shall be entitled in person or by pleader to appear at the hearing and oppose the discharge provided that he has served upon the insolvent and upon the Receiver (if any) not less than seven days before the date fixed for the hearing a notice stating the grounds of his opposition to the discharge.

(3)     A creditor who has not served the prescribed notices shall not, unless the Court otherwise directs, be permitted to oppose the discharge of the debtor and a creditor who has served the prescribed notices shall not be permitted, unless the Court otherwise directs to oppose the discharge on any ground not specified in the notice.

(4)     At the hearing of the application the Court may hear any evidence which may be tendered by a creditor who has served the prescribed notices, or by the Receiver and also any evidence which may be tendered on behalf of the debtor and shall examine the debtor, if necessary, for the purpose of explaining any evidence tendered and may there the Receiver, the debtor, in person or by pleader, and any creditor, in person or by pleader, who has served the prescribed notice.

Rule - 21. Notices.

(1)     The notices to be given under Sections 19(2), 30, 37(2), 38, (1) and 41 (1) of the Act shall be published in the Official Gazette in English, in the District Gazette in English and in the language of the Court and in such other manner, if any, as the Court may direct and copies of the notices in English and in the language of the Court shall be affixed to the notice board of the Court.

(2)     The notices to be given under Sections 19 (2), 38 (1) and 41 (1) of the Act shall be published and affixed in the manner provided in paragraph (1) of this rules not less than fourteen days before the date fixed for the hearing of the application, the consideration of the proposal, or the hearing of the application, for discharge as the case may be.

(3)     Notice of the date fixed for the hearing of an insolvency petition under Section 19(1) of the Act shall be sent by the Court by registered post, if the petition is by the debtor, to all creditors mentioned in the petition and if the petition is by a creditor to the debtor and to any transferee, the transfer in whose favor is alleged to be an act of insolvency within the meaning of clauses (a), (b) or (c) of Section 6 of the Act not less than fourteen days before the said date.

(4)     The notice to be given under Section 33 (3) of the Act shall be served only on the debtor and on the creditors who have proved their debts and may, if the Court so directs, be served on any or all such creditors by registered post.

(5)     Notice of the date fixed for the consideration of a proposal under Section 38 (1) of the Act shall be sent by the Court by registered post to all creditors who have tendered proof of their debts not more than fourteen days before the said date.

(6)     Notice of the date fixed for the hearing of an application for discharge under Section 41 (1) of the Act shall be dispatched by the Court by registered post to all persons whose names have been entered in the schedule of creditors not less than fourteen days before the said date.

Note. With a view to secure uniformity of practice the High Court directs that notices under Section 41 (1) should go to all creditors not only to scheduled creditors.

(7)     The notice to be given under Section 64 of the Act shall be sent by the Receiver by registered post to all persons whose claims to be creditors have been to notified but not proved not less than one calendar month before the limit of time fixed for proving claims.

(8)     It shall not be necessary to give notice of the date to which the hearing of a petition or of an application for discharge of the consideration of a proposal is adjourned.

(9)     The notice of an order of adjudication to published under Section 30 of the Act shall contain a statement that creditors should prove their claims as soon as possible and that a claim may be delivering or sending by registered post to the Court or Official Receiver, as the case may be an affidavit in Form No (3).

Rule – 22. Costs.

(1)     All proceedings under the Act down to and including making of an order of adjudication shall be at the cost of the party prosecuting them; but when an order of adjudication has been made, the costs of the petitioning creditor including the costs of the publication of all Gazette notices required by the Act or rules which, by the Act or rules, the petitioning creditor is required to pay, shall be taxed and be payable out the estate.

(2)     Before making an order in an insolvency petition presented by a debtor, the Court may require the debtor to deposit in Court a sum sufficient to cover the costs of sending the prescribed notices of the hearing of petition and costs of the publication of all Gazette notices required by the Act or rules which by the Act or rules, the debtor is required to pay.

(3)     The cost of the publication in the Gazette of-

(a)      An order fixing the date of the hearing or an insolvency petition under Section 19 (2) shall, when the petition is by the creditor, be paid by the creditor, and, when the petition is by the debtor, be paid out of the sum deposited in Court by the debtor under Rule XXII (2).

(b)      Notice of a proposal for a composition under Section 38 (1) and notice of application for discharge under Section 41 (1) shall be paid by the debtor.

(4)     (i) The actual cost of printing in the Gazette of-

(a)      notice of adjudication under Section 30, and

(b)      notice of an order annulling an adjudication under Section 37 (2) shall be collected from the person who petitions in insolvency.

(ii) The actual cost of printing plus 25 per cent shall be collected from the insolvent's estate in respect of notices under Section 64 to creditors whose claims have been notified but not proved.

(5)     No cost incurred by a debtor of incidental to, an application to approve a composition or scheme shall be allowed out of the estate if the Court refuses to approve the composition or scheme.

(6)     If the assets available are not sufficient in any case for taking proceedings necessary for the administration of the estate, the Receiver or Interim Receiver or Official Receiver, as the case may be, may call upon the creditors or any of them to advance the necessary funds, or to indemnify him against the cost of such proceedings. Any assets realised by such proceedings shall be applied, in the first place, towards the repayment of such advances, with interest thereon at 6 per cent per annum.

Rule - 23. Summary Administration.

If the Court makes an order under Section 74 of the Act that debtor's estate be administered in a summary manner.

(a)      the petition and all subsequent proceedings shall be endorsed "Summary Case".

(b)      the Receiver or Interim Receiver shall not carry on the business of the debtor under clause (c) of Section 59 of the Act, not institute any suit under clause (d) of the said Section, nor accept as the consideration for the sale of any property of the debtor a sum of money payable at a future time under clause (f) nor mortgage nor pledge any part of the property of the debtor under clause (g).

Rule - 24. Inspection of Proceedings.

All insolvency proceedings may be inspected at such times and subject to such restrictions as the Court may prescribe, by the Receiver or Interim Receiver, the debtor, any creditor who has proved or any legal representative on their behalf.

Rule - 25. Maintenance of Registers.

All Courts shall maintain registers of (1) insolvency petition received and (2) insolvency petitions disposed off, in Form Nos. 4 and 5 in the Appendix to these rules.

They shall also submit to the High Court on the 15th day after the close of each[2] quarter a return of all proceedings in Insolvency in Form No. 7 Special particulars should be given therein of the arrears of petition filed under Sections 4, 53 and 54 of the Act.

Rule - 26. Maintenance of Registers.

All Official Receivers shall maintain registers of (1) insolvency petitions received, (2) a dividend register, (3) a register of assets, (4) a document register (inventory), (5) a diary register, (6) a hearing book, (7) a register of leases, (8) a register of initial charges met from contingencies, (9) a register of instrument impounded, (10) a ledger, (11) a register of sale-deeds and (12) a register of advances made to pleaders, in Form Nos. 4, 10, 11, 12, 16, 17, 18, 19, 20, 21, 22, and 23 appended to these rules. They shall also submit to the High Court on the 15th day after the close of each quarter a return of all proceedings in Insolvency in Form No. 7.

Rule - 27. Expenditure on Journeys undertaken for purposes of administration.

Expenditure incurred by an Official Receiver and his staff on journeys undertaken for the purpose of administration will be recoverable by the Official Receiver from the assets of the estate or estates concerned in accordance with the rules made by the High Court from time to time on that behalf.

Rule - 28. Proceedings by or against a firm.

(1)     When any petition, notice or other document is signed by a firm of creditors or debtors in the firm's name the partner signing for the firm shall add also his own signature in the following manner. "B and Co., by A.B. partner in the said firm."

(2)     Any petition or notice of which personal service is necessary shall be deemed to be duly served on all members of the firm, if it is served at the place of business of the firm in India upon any one of the partners or upon any person having at the time of service the control or management of the partnership business there.

(3)     When a firm of debtors file an insolvency petition, the same shall contain the names in full of the individual partners, and unless it is signed by all of them it shall be accompanied by the affidavit of the partner signing it that all the partners concur in the filling of the same.

(4)     When a creditor files an insolvency petition against a firm, the same shall state the names of the individual partners so far as the same are known to the petitioner, and the debtors shall together with their schedule of affairs file an affidavit setting out the names in full of the individual partners.

(5)     An order of adjudication shall be made against the partners individually.

(6)     The debtors shall submit a schedule of their partnership affairs and each debtor shall submit a schedule of his separate affairs.

Rule - 29. Committee of Inspection.

(1)     Any case in which the Court authorizes the creditors to appoint a Committee of Inspection pursuant : o Section 67-A of the Act, the creditors (who have proved their debts) may at a meeting duly convened for the purpose by resolution appoint from among the creditors, or the holders of general proxies or general powers of attorney from such creditors a Committee of Inspection for the purpose of superintending the administration of the insolvent's property by the Official Receiver. The Committee of Inspection shall consist of not more than five, not less than three persons.

(2)     Meetings of the Committee of Inspection shall be held monthly at such time and place as they shall appoint and shall ordinarily be held in the chambers of the Official Receiver. The Official Receiver or any members of the Committee may also call meeting of the Committee as and when he thinks necessary, The Official Receiver shall present at all meetings.

(3)     The Committee of Inspection may act by a majority of their members present at a meeting, but, shall not act unless a majority of the Committee is at the meeting.

(4)     Any members of the Committee may resign his office by notice in writing signed by him and delivered to the Official Receiver.

(5)     If a member of the Committee becomes insolvent or compounds or arranges with his creditors, or is absent from five consecutive meetings of the Committee his officer shall there on becomes vacant.

(6)     Any member of the Committee may be removed by an ordinary resolution at any meeting of creditors of which seven days notice has been given stating the object of the meeting.

(7)     On a vacancy occurring in the office of a member of the Committee, the Official Receiver shall forthwith summon a meeting of creditors for the purposes of filling the vacancy and the meeting may by resolutior appoint another creditor or other person eligible as above to fill the vacancy.

(8)     The continuing members of the Committee, provided there be not less than two such continuing members, may act notwithstanding any vacancy in their body, and where the member of members of the Inspection Committee is for the time being less than five, the creditors may increase that number so that it does not exceed five.

(9)     When a Committee of Inspection has been appointed under Section 67-A of the Act, the Official Receiver shall, in the administration of the property of the insolvent and in the distribution thereof amongst its creditors, have regard to any directions, that may be given by resolution of the creditors at any general meeting or by the Committee of Inspection and any directions so given by the creditors at any general meeting shall in case of conflict be deemed to override any directions given by the Committee of Inspection.

(10)   When a Committee of Inspection has been appointed under Section 67-A of the Act, the Official Receiver shall obtain the consent of the Committee before applying to the Court for leave to do any of things for which such leave is required by Section 59 of the Act.

(11)   In all cases in which a Committee on Inspection has been appointed, leases and sales of property by the Official Receiver shall, unless the Court otherwise directs, be submitted for the approval of the Committee before confirmation. Should the Committee decline to approve the proposal of the Official Receiver the matter shall be submitted to the Court which shall finally decide it.

(12)   No defect or irregularity in the appointment of a member of a Committee of Inspection shall vitiate any act done by him in good faith.

(13)   The Official Receiver shall submit the record book and case book together with any other requisite books and vouchers, to the Committee of Inspection (if any) when required, and not less than once every three months.

(14)   The Committee of Inspection shall suggest to the Official Receiver means for realising the assets. If any suggestions so made are found unworkable it shall be open to the Official Receiver to refer them to the Court and the order of the Court shall be final.

(15)   The Committee of Inspection shall, not less than once every three months, audit the accounts and certify therein under their hands the day on which the said accounts were audited. The certificate shall be in Form No. 24 which such variations circumstances may require.

(16)   Neither the Official Receiver nor any member of the Committee of Inspection of an estate shall, while acting as Official Receiver or member of such Committee, except by leave of the Court either directly or indirectly by himself for any partner, clerk, agent or servant, become purchaser of any part of the estate. Any such purchase made contrary to the provisions of this rule, may be set aside by the Court either on its own motion or on the application of any person interested.

(17)   No Member of a Committee of Inspection of an estate shall except under with the sanction of Court, directly or indirectly by himself or any employer, partner, clerk, agent or servant be entitled to derive any profit from any transaction arising out of the insolvency or to receive out of the estate any payment for services rendered by him in connection with the administration of the estate, or for any goods supplied by him to the Official Receiver for or on account of the estate. If it appears to the Court that any profit or payment has been made contrary to the provision of this rule, the Court may disallow such payment or recover such profit as the case may be on the audit of the Official Receiver's account.

(18)   When the sanction of the Court under the last preceding rule to a payment to a member of the Committee of Inspection for service rendered by him in connection with the administration of the estate is obtained the order of the Court shall specify the nature of the service, and sanction shall only be given where the service performed is of a special nature. No payment shall under any circumstances be allowed to a member of a Committee for services rendered by him in the discharge of the duties attaching to his office as a member of such Committee.

(19)   Where the Official Receiver carries on the business of the debtor, he shall keep a distinct account of the trading and shall incorporate in the cash book the total weekly amount of the receipts and payments on such trading account:

(20)   The trading account shall, from time to time and not less than once in every month, be verified by affidavit, and the Official Receiver shall thereupon submit such account to the Committee of Inspection (if any) or such member thereof as may be appointed by the Committee for that purpose, who shall examine and certify the same.

(21)   Unless otherwise directed or resolved by the Committee of Inspection or ordered by the Court the Official Receiver shall not engage an auctioneer to sell the insolvent's property.

Rule – 30.

In all suits on proceedings by or against the Official Receiver there shall be inserted in the plaint or petition after his official title the description "as receiver of the property of an insolvent (naming the particular insolvent)".