Section 4: Adjudication

4. Adjudication (1) A debtor is adjudicated bankrupt where— (a) a creditor of the debtor petitions the Court for a bankruptcy order; or (b) the debtor petitions the Court for a bankruptcy order, and the Court makes the bankruptcy order. (2) (a) The Court shall not make a bankruptcy order on a creditor’s petition unless one of the following grounds of adjudication is established to the satisfaction of the Court— (i) failure to comply with a bankruptcy notice; (ii) departure from Mauritius with intent to defeat or delay a creditor; (iii) notification in writing by the debtor to a creditor that he has suspended, or proposes to suspend, payment of his debts; or (iv) admission to creditors that the debtor is insolvent. (b) There shall be an admission for the purposes of paragraph (a) (iv) where the debtor admits at a meeting of creditors that he is insolvent and— (i) a majority in number and value of the creditors present at the meeting require the debtor to file an application for adjudication; or (ii) the debtor agrees to file an application for adjudication and does not do so within 2 working days after the meeting. I14 – 13 [Issue 7] Insolvency Act (3) The Court shall not make a bankruptcy order on the petition of a secured creditor unless the creditor has established that the amount of the debt exceeds the value of the security claimed by the creditor by at least 50,000 rupees. (4) A petition under this section may not be withdrawn except with leave of the Court on such terms as it may determine.