Section 87: Making of order

87. Making of order (1) The Official Receiver may make a summary instalment order where he is satisfied that— (a) the debtor’s total unsecured debts that would be provable in the debtor’s bankruptcy are not more than 500,000 rupees or such amount as may be prescribed; and (b) the debtor is unable immediately to pay those debts. (2) An order under subsection (1) shall provide that— (a) the debtor pays his debts by instalments or otherwise; and (b) the debts are paid in full or at the earliest date that the Official Receiver considers appropriate. (3) The payment of instalments under a summary instalment order may be spread over a period of— (a) up to 3 years; or (b) up to 5 years, if justified by special circumstances. (4) Before making the order, the Official Receiver shall give at least 14 days’ notice to all known creditors or, at the Official Receiver’s option, advertise in a newspaper circulating in the place where the debtor was resident and carried on business, a notice that application has been made to the Official Receiver for the making of a summary instalment order, and he shall allow the debtor or a creditor to make representations, if the debtor or creditor wants to do so. (5) A summary instalment order shall not be invalid where the total amount of the debts proved is more than the amount specified in subsection (1) (a), but in that case— (a) the supervisor may refer the matter to the Official Receiver; and (b) the Official Receiver may, if the Official Receiver thinks appropriate, cancel the order. (6) The debtor or any creditor or the supervisor may at any time apply to the Official Receiver to vary or discharge a summary instalment order, and the Official Receiver may make such order as the Official Receiver thinks appropriate in the circumstances.