(1) A
person who is likely to become a bankrupt may himself or herself,
or a creditor or group of creditors having claim of at least twentyfive
percent or more of the total debts if the amount of debts is
disclosed and, if the amount of debts is not disclosed, a creditor or
group of creditors having claim of more than five hundred thousand
rupees borrowed by such a person, may file a petition in the court,
in order to initiate bankruptcy proceedings.
(2) In filing a petition by a person likely to become a
bankrupt for bankruptcy pursuant to sub-section (1), the petition
shall specify the following details:
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(a) Actual statement of his or her total assets and value
thereof,
(b) Statement of total amount of debts borrowed by
him or her, interest accrued thereon and details of
the creditor or creditors having lent such debts,
along with their addresses,
(c) If he or she has to discharge other liabilities, details
thereof,
(d) The reason for the failure to repay or discharge
debts and other liabilities.
(3) In filing a petition by a creditor or group of creditors
for bankruptcy pursuant to sub-section (1), the petition shall specify
the following details:
(a) Evidence indicating that the borrower is likely to
be a bankrupt,
(b) Statement of the assets of the borrower and
approximate value thereof, to the extent of the
petitioner's knowledge,
(c) Statement of the petitioner’s claim, and if the
petitioner has knowledge of other creditor's debt
or claim, such debt or claim,
(d) Details including addresses of the creditors.
(4) Prior to filing a petition pursuant to sub-section (1) to
initiate bankruptcy proceedings, a creditor or group of creditors
shall give a notice to the borrower indicating that the borrower shall
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repay his or her debts or discharge other liabilities within a period
of at least three months and that in the event of failure to repay the
debts within that period, a petition shall be filed in the court to
initiate bankruptcy proceedings.