Proceedings and order on creditor’s petiProceedings and order on creditor’s petition.

### Proceedings and order on creditor’s petition. E.B.A., s. 5. N.S.W., s. 8. Vic., ss. 52, 57–64, 67, 69. S.A., ss. 70–78. Q., ss. 52–65. W.A., s. 7. Tas., ss. 7, 74 (1). 56.—(1.) A creditor’s petition shall be verified by his affidavit, or the affidavit of some person on his behalf having knowledge of the facts, and shall be served in the prescribed manner. (2.) At the hearing, the Court— (a) shall require proof of the debt of the petitioning creditor, of the service of the petition, and of the act of bankruptcy, or, if more than one act of bankruptcy is alleged in the petition, of some one of them; and (b) if satisfied with the proof, may make a sequestration order in pursuance of the petition. (3.) If the Court— (a) is not satisfied with the proof of the petitioning creditor’s debt, or of the service of the petition, or of the act of bankruptcy; or (b) is satisfied by the debtor that he is able to pay his debts, or that for other sufficient cause no order ought to be made, it may dismiss the petition. (4.) When the act of bankruptcy relied on is non-compliance with a bankruptcy notice to pay, secure or compound for a judgment debt, or the sum ordered to be paid, the Court may, if it thinks fit, stay or dismiss the petition, on the ground that an appeal from the judgment or order or a motion for a new trial is pending. (5.) Where the debtor appears on the petition, and denies that he is indebted to the petitioner, or that he is indebted to such an amount as would justify the petitioner in presenting a petition against him, the Court, on such security (if any) being given as the Court requires for payment to the petitioner of any debt which may be established against the debtor in due course of law, and of the costs of establishing the debt, may, instead of dismissing the petition, stay all proceedings on the petition for such time as is required for trial of the question relating to the debt. (6.) Where proceedings are stayed, the Court may, by reason of the delay caused by the stay of the proceedings or for any other cause it thinks just, make a sequestration order on the petition of some other creditor, and shall thereupon dismiss, on such terms as it thinks just, the petition in which proceedings have been so stayed.