Section 401: Power of Court

401. Power of Court (1) (a) The Court shall have jurisdiction to try and adjudicate upon all questions of ownership relating to movable or immovable property claimed by or from the Official Receiver or a liquidator, whether the property is in the possession of the trustee or not, and to decide and adjudicate upon any debt or claim due to or from the bankrupt or company in winding up. (b) The Court may refer the parties to the competent Court to have any contested matter adjudicated upon on an issue framed by it. I14 – 217 [Issue 3] Insolvency Act (2) The Court may at any time amend any process or proceeding under this Act on such terms as the Court thinks appropriate. (3) Subject to any rules of the Court, the Court may, in any matter, take the whole or any part of the evidence either viva voce or by interrogatories or upon affidavit or by commission abroad. (4) For the purposes of approving the composition or scheme by joint debtors, the Court may, if it thinks fit and on the report of the Official Receiver or a liquidator that it is expedient so to do, dispense with the public examination of one of such joint debtors if he is unavoidably prevented from attending the examination by illness or absence abroad. (5) Where 2 or more bankruptcy petitions or petitions for winding up are presented against the same debtor or against joint debtors, the Court may consolidate the proceedings, or any of them, on such terms as the Court thinks appropriate. (6) Where a petitioner for a bankruptcy order or an order for winding up does not proceed with due diligence on the application, the Court may substitute as applicant any other creditor to whom the debtor may be indebted in the amount required by this Act in the case of the applicant creditor. (7) No defect or irregularity in the appointment or election of a receiver, liquidator or member of a committee of inspection shall invalidate any act done by him in good faith. (8) The Court may order the erasure of any inscription by the Conservator of Mortgages where it appears that the creditor who has taken such inscription is not entitled to priority over the chirograph creditors of the debtor.