Definitions and the Applications

Section 12

Final sequestration or dismissal of petition for sequestration

(1) If at the hearing pursuant to the aforesaid rule nisi the court is satisfied that—

(a)    the petitioning creditor has established against the debtor a claim such as is mentioned in subsection (1) of section nine; and

(b)    the debtor has committed an act of insolvency or is insolvent; and

(c)    there is reason to believe that it will be to the advantage of creditors of the debtor if his estate is sequestrated,

it may sequestrate the estate of the debtor.

(2) If at such hearing the court is not so satisfied, it shall dismiss the petition for the sequestration of the estate of the debtor and set aside the order of provisional sequestration or require further proof of the matters set forth in the petition and postpone the hearing for any reasonable period but not sine die.