BODIES CORPORATE (OFFICIAL LIQUIDATIONS) ACT - 1963 (ACT 180)

Section - 22 - Proof of Debt

(1) During the continuance in force of a winding up order any creditor of a company may lodge with the liquidator a statement, to be known as a proof of debt, in accordance with the provisions of this section.

(2) The proof of debt shall be in two parts, the first part containing brief particulars of,

(a) the values and due dates of provable debts alleged by the creditor to be outstanding in his favour against the company and the nature and value of any securities held by the creditor in respect of such debts;

(b) the values and due dates of any obligations outstanding in the company's favour against the creditor on the date on which the winding up order was made against the company;

(c) the nature and value of securities of any description held by the company in respect of such obligations as are mentioned in the immediately preceding paragraph;

(d) the total values of the aforesaid debts, obligations and securities;

and the second part containing details of the transactions from which such debts and obligations arose.

(3) A copy of the first part of any proof lodged under this section shall be given by the liquidator to the company and to each creditor mentioned in the company's statement of affairs or who, not being so mentioned, himself lodges a proof; and if the company knows or believes that the proof is false in any material particular, it shall be the duty of the company to inform the liquidator as soon as may be practicable.

(4) The liquidator shall examine every proof of debt lodged with him and if, after considering any representations made by the company or any other creditor, it appears to him that any item is improperly included or any value incorrectly stated or that the proof is otherwise incorrect he shall give notice of the objection to the creditor who may lodge an amended proof within the period specified in the notice or such period as the liquidator may allow.

(5) Where the liquidator is satisfied with a proof of debt he shall give notice to the creditor that he admits the proof of debt subject to verifications under section 39 of this Act.

(6) Where a creditor fails to lodge an amended proof of debt or a further amended proof of debt, as the case may be, within the period allowed under the provisions of subsection (4) of this section, and the liquidator is still of opinion that the previous proof of debt is incorrect he shall give notice to the creditor that he rejects the proof of debt.

(7) The liquidator may by notice in the Gazette fix a time within which creditors are to prove their debts or claims or to be excluded from the benefits of any distribution made before those debts are proved.