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

Section - 39 - Duty to Verify Debts Ranking for Dividends

(1) At the conclusion of the first meeting of creditors or, if no such meeting were held, as soon as practicable after the admission of the proof of debt under section 22 of this Act, it shall be the duty of the liquidator to take such steps as are practicable to verify the correctness of every admitted proof.

(2) If, when the winding up order is made, creditors' obligations such as are mentioned in section 22 of this Act are included in a creditors' admitted proof,

(a) where the total value of the obligations as shown in the proof is less than the total value of debts owed to the creditors as so shown, the obligations shall be deemed to be cancelled at the time of the making of the winding up order and the values of the said debt shall be pro rata reduced;

(b) in any other case, the obligations shall be deemed to be pro rata reduced at the time of the making of the winding up order by the total value of the said debts, and the proof shall be deemed to be expunged.

(3) The liquidator may give notice to a creditor holding a security that if the security is not realized within the period specified in the notice, which shall not be less than six months, it shall be treated as surrendered.

(4) Subject to the provisions of this Part of this Act, a debt shall rank for dividend at any time if, but only if, it is at that time included in an admitted proof; and the value of the debt shall be taken to be the value shown at that time in the admitted proof.