Power to accept composition or scheme after bankruptcy adjudication

(1) Where a debtor is adjudged bankrupt, the creditors may, if they think fit, at any time after the adjudication, resolve to entertain a proposal for a composition in satisfaction of the debts due to them under the bankruptcy or for a scheme of arrangement of the bankrupt’s affairs, and such resolution shall be the like resolution as is required for accepting a like proposal made by a debtor before an adjudication of bankruptcy, and thereupon the same proceedings shall be taken 26 and the same consequences shall ensue as in the case of a composition or scheme accepted before the adjudication. (2) Where the court approves the composition or scheme, it may make an order annulling the bankruptcy and vesting the property of the bankrupt in him or in such other person as the court may appoint, on such terms and subject to such conditions, if any, as the court may declare. (3) Where default is made in payment of any instalment due in pursuance of the composition or scheme, or if it appears to the court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the court was obtained by fraud, the court may, if it thinks fit, on application by any person interested, adjudge the debtor bankrupt, and annul the composition or scheme, but without prejudice to the validity of any sale, disposition, or payment duly made, or thing duly done, under or in pursuance of the (4) Where a debtor is adjudged bankrupt under this subsection, all debts provable in other respects, which have been contracted before the date of such adjudication, shall be provable in the bankruptcy.