Section 79: Making of proposal

79. Making of proposal (1) An insolvent may make a proposal to creditors for the payment or satisfaction of his debts. (2) The proposal may include an offer— (a) to assign all or any of the insolvent’s property to a trustee for the benefit of the creditors; (b) to pay the insolvent’s debts by instalments; (c) to compromise the insolvent’s debts at less than 100 cents in the rupee; (d) to pay the insolvent’s debts at some time in the future; or (e) for any other arrangement for the satisfaction of the insolvent’s debts. (3) The proposal may include any other conditions for the benefit of the creditors and may be accompanied by a security or guarantee. (4) The proposal shall be— (a) in the prescribed form; and (b) accompanied by a statement of affairs that is in the prescribed form and verified by affidavit. (5) The statement of affairs shall set out— (a) the insolvent’s assets, debts, and liabilities; (b) the name, address and occupation of each of the insolvent’s creditors; and (c) the securities (if any) held by each creditor. (6) The proposal shall— (a) be signed by the insolvent; (b) have endorsed on it the name of a person who is willing to act as a trustee for the creditors; and (c) include a statement by that person that he is willing to act as trustee.