Acts of insolvency on the part of a debtor makes the foundation for insolvency proceedings in a court. In other words, acts of insolvency provides jurisdiction to the insolvency courts to declare the debtor as insolvent. The term, ‘act of insolvency’ has not been defined under any enactments on insolvency in India, i.e., the Presidency Insolvency Act, 1920 and the Provisional Towns Insolvency Act, 1908. However, both the Acts have laid down certain acts on the part of the debtor to be indicator of insolvency. The act of a debtor when he transfers all or substantially all his property to a third person for the benefit of his creditors in India or abroad, gives jurisdiction to the court. The act of a debtor when he makes any transfer of all or any part his property in India or abroad with an intent to defeat or delay his creditors, authorizes the court to initiate insolvency proceedings against the debtor. If the debtor files a petition to the court to be adjudged as an insolvent or if the debtor gives any oral or written notice to his creditors informing that he has suspended or is about to suspend payment of his debts, the court gets the jurisdiction to initiate insolvency proceedings against the debtor.