Gujarat High Court Civil Manual (subordinate court practice), 1960
The following rules have been framed with respect to the appointment and procedure of Committees of Inspection :— (1) In any case in which the Court authorises the creditors to appoint a Committee of Inspection pursuant to the provisions of section 67-A of the Act, the Court shall, by the order of adjudication or any subsequent order, fix a date for the holding of a meeting of the persons qualified to vote for the purpose of selecting the members of the Committee. A notice mentioning the date fixed shall be put up on the Notice Board of the Court. (2) The Committee shall consist of not more than five, nor less than three, persons. (3) The Committee shall meet at such time as they shall from time to time appoint, and failing such appointment, at least once a month, and the Receiver or any two members of the Committee may call a meeting as and when necessary. (4) The Committee may act by a majority of members present at a meeting, but shall not act unless a majority of the Committee is present at the meeting. (5) Any member of the Committee may resign his office by notice in writing signed by him and delivered to the Receiver. (6) If a member of a Committee becomes insolvent or is absent from five consecutive meetings of the Committee, his office shall thereupon become vacant. (7) Any member of a Committee may be removed by a resolution passed at any meeting of the creditors of which seven days' notice has been given stating the object of the meeting. (8) On a vacancy occurring in the office of a member of a Committee, the Receiver shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meeting may, by resolution, appoint another person to fill the vacancy. (9) The continuing members of the Committee of Inspection, provided there be not less than two such continuing members, may act notwithstanding any vacancy in their body, and when the number of members of Committee is for the time being less than five, the creditors may increase their number so that it does not exceed five. (10) When a Committee has been appointed, the Receiver shall be in the administration of the property of the insolvent and in the distribution thereof amongst his creditors, have regard to any suggestions that the Committee may give by resolution. If the Receiver thinks that any suggestion of the Committee is not in the interests of the general body of creditors, he may report the matter to the Court, which will give such instructions as it may consider just and necessary. (11) The Court shall afford an opportunity to the Committee of Inspection for being heard before orders are passed on any such report submitted by the Receiver. (12) The Court may, in order to decide the matter in dispute, call a meeting of the general body of creditors and consider their views before arriving at a conclusion. (13) The Receiver shall ordinarily act as the Secretary of the Committee and maintain a record of its proceedings in a bound register. (14) No defect or irregularity in the appointment or selection of a member of the Committee of Inspection shall vitiate any act done by the Receiver in good faith. (15) The Receiver shall afford all the members of the Committee, both individually and collectively, reasonable facilities to examine at his office any of his records and registers during the working hours of the Court. The Receiver shall also give the Committee and its members any information which they require and give them every assistance and facility in the discharge of their functions. (16) The Receiver shall, from time to time as ordered by the Court and not less than once in every quarter, submit to a member of the Committee appointed by the Committee to receive it an account of the estate duly verified.