The Presidency-Towns Insolvency Act, 1909, is a significant piece of legislation that governs insolvency proceedings in the erstwhile presidency towns of Calcutta, Madras, and Bombay (now Kolkata, Chennai, and Mumbai, respectively). Enacted on March 12, 1909, and coming into force on January 1, 1910, this Act was designed to consolidate and amend the law relating to insolvency in these key urban centers, which were the commercial hubs of British India. The Act provides a structured legal framework for dealing with insolvent debtors, ensuring equitable distribution of assets among creditors, and offering mechanisms for debtors to seek relief from financial distress.
Before the enactment of the Presidency-Towns Insolvency Act, 1909, insolvency laws in India were fragmented and governed by various regulations, including the Indian Insolvency Act, 1848. The 1848 Act was limited in scope and did not adequately address the complexities of insolvency in rapidly growing commercial centers. The need for a more comprehensive and uniform law became evident as trade and commerce expanded in the presidency towns, leading to increased instances of insolvency.
The 1909 Act was influenced by English bankruptcy laws, particularly the Bankruptcy Act, 1883, and aimed to modernize insolvency proceedings by introducing systematic procedures for adjudication, administration of estates, and discharge of insolvents. It also sought to balance the interests of creditors and debtors while preventing fraudulent practices.

The Presidency-Towns Insolvency Act, 1909, was a landmark legislation that brought order and fairness to insolvency proceedings in India's major commercial centers. By establishing clear procedures, protecting creditor rights, and offering debtors a path to financial rehabilitation, it played a pivotal role in shaping India's insolvency framework. Its legacy endures in contemporary laws, reflecting its enduring relevance in addressing financial distress and insolvency.