Power for court to annul adjudication in certain cases

(1) When in the opinion of the court a debtor ought not to have been adjudged bankrupt, or where it is proved to the satisfaction of the court that the debts of the bankrupt are paid in full, the court may on the application of any person interested, by order, annul the adjudication. (2) When an adjudication is annulled under this section, all sale and dispositions of property and payments duly made and all acts theretofore done, by the Official Receiver, trustee or other person acting under their authority, or by the court, shall be valid, but the property of the debtor who was adjudged bankrupt shall vest in such person as the court may appoint, or in default of any such appointment, revert to the debtor for all his estate or interest therein in such terms and subject to such conditions, if any, as the court may declare by order. 39 (3) Notice of the order annulling an adjudication shall be forthwith gazetted, and published in a local paper.