Section 11: Underlying debt not determined
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
11. Underlying debt not determined
(1) This section applies where the debtor appears in opposition to a
creditor’s petition and avers that—
(a) he does not owe a debt to the creditor; or
(b) he owes a debt to the creditor, which is less than 50,000 rupees.
(2) The Court may, instead of refusing the petition, stay the petition so
that the question of whether the debt is owed, or how much of the debt is
owed, can be resolved at a trial.
(3) Where the petition is based on the grounds set out in section 8 (3),
the Court shall have jurisdiction for the trial of any question in relation to the
existence or amount of the debt.
(4) Where the petition is made on any ground other than the grounds set
out in section 8 (3), the trial in relation to a debt of less than 500,000 rupees shall, unless the Court orders otherwise, be held in the Intermediate
Court.
(5) As a condition of staying the petition, the Court may require the
debtor to give security to the creditor for any debt that may be established
as owing by the debtor to the creditor, and for the costs of establishing the
debt.