234. Insolvent limited partnerships.

234.     Insolvent limited partnerships.

Limited partnerships are governed by the ordinary law of insolvency as applied to insolvent partnerships1. However, the following specific provision is also made in relation to limited partnerships. Where there is a creditor's petition for the winding up of an insolvent partnership as an unregistered company and there are concurrent petitions presented against one or more members, then the court may dismiss the petition against an insolvent member who is a limited partner, if the member lodges in court for the benefit of the creditors of the partnership sufficient money or security to