(1) If a petition is filed by a
creditor or group of creditors pursuant to Section 55 to initiate the
bankruptcy proceedings of the assets of the borrower, the court
shall serve a notice, along with a time-limit of thirty-five days, on
the borrower to appear before the court, along with a reply whether
or not the bankruptcy proceedings require to be instituted, and if
33
there exists any ground for not instituting the bankruptcy
proceedings, and evidence thereof.
(2) If a notice is served on the borrower pursuant to subsection
(1), a notice shall be given to the other creditor or claimant
to submit a claim in that respect within a period of thirty-five days
and such a notice shall be published in any national daily
newspaper.
(3) The claim of a person who fails to submit a claim
within the period referred to in sub-section (2) shall not be valid
after that period.
(4) The fee to be incurred in publishing a notice in a
national daily newspaper pursuant to sub-section (2) or sub-section
(1) of Section 56 shall be recovered from the concerned petitioner.
(5) The fee recovered pursuant to sub-section (4) may be
awarded to be paid by the debtor in the course of bankruptcy.