The Provincial Insolvency Act,1920
Section 47. Secured creditors
(1) Where a secured creditor realizes his security, he may prove for the balance due to him, after deducting the net amount realized.
(2) Where a secured creditor relinquishes his security for the general benefit of the creditors, be may prove for his whole debt.
(3) Where a secured creditor does not either realize or relinquish his security, he shall, before being entitled to have his debt entered in the schedule, state in his proof the particulars of his security, and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed.
(4) Where a security is so valued, the Court may at any time before realization redeem it on payment to the creditor of the assessed value.
(5) Where a creditor, after having valued his security, subsequently realizes it, the net amount realized shall be substituted for the amount of any valuation previously made by the creditor, and shall be treated in all respect as an amended valuation made by the creditor.
(6) Where a secured creditor does not comply with the provisions of this section. he shall be excluded from all shares, in any dividend.