Section 24: Composition or scheme after adjudication

24. Composition or scheme after adjudication (1) Where a debtor is adjudged bankrupt, the creditors may, if they think fit, at any time after the adjudication, by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to them B4 – 13 [Issue 1] Bankruptcy Act under the bankruptcy, or for a scheme of arrangement of the bankrupt’s affairs, and thereupon the same proceedings shall be taken and the same consequences shall ensue as in the case of a composition or scheme accepted before adjudication. (2) Where the Court approves the composition or scheme, it may make an order annulling the bankruptcy and vesting the property of the bankrupt in him or in such other person as the Court may appoint, on such terms, and subject to such conditions, if any, as the Court may declare. (3) (a) Where default is made in payment of any instalment due in pursuance of the composition or scheme, or where it appears to the Court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the Court was obtained by fraud, the Court may, if it thinks fit, on application by any interested person, adjudge the debtor bankrupt, and annul the composition or scheme, but without prejudice to the validity of any sale, disposition, or payment duly made, or thing duly done, under or in pursuance of the composition or scheme. (b) Where a debtor is adjudged bankrupt under this section, all debts, provable in other respects, which have been contracted before the date of such adjudication shall be a provable debt.