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Acts 13/1973, 39/1973 (s. 47), 61/1973 (s. 9), 45/1974, 25/1976, 37/1977 (s. 20), 15/1981, 29/1981, 24/1982, 18/1989 (s. 25), 22/1992 (s. 12), 20/1994 (s. 12), 16/1998 (s. 69), 22/1998, 22/2001 (s. 4), 12/2002 (s. 85). R.G.N 1135/1975. S.I. 519/1981.
ARRANGEMENT OF SECTIONS
- Short title.
SEQUESTRATION AND ATTACHMENTOF ESTATE
- Petition for surrender.
- Provisional acceptance of surrender and issue of rule nisi.
- Publication of rule nisi.
- Final acceptance of surrender.
- Discharge of rule nisi.
- Costs of attachment and control of property and administration of estate.
- Sale of assets if costs and expenses not paid.
- Sale of assets not claimed.
- Acts of insolvency.
- Petition for sequestration of estate.
- Order of provisional sequestration.
- Service of rule nisi.
- Final order of sequestration or discharge of provisional order.
- Sequestration of partnership estate.
- Petitioning creditor to prosecute sequestration until trustee appointed and liable for contribution.
- Malicious or vexatious petitions.
- Insolvent and spouse to deliver records and lodge statements.
Attachment and Custody of Estate
- Notice of sequestration.
- Attachment of property by deputy sheriff.
- Messenger to transmit attached property to Master. PART III
Effect upon Insolvent, Spouse of Insolvent and their Property
- Immediate effect of sequestration order.
- Effect of sequestration on property of spouse of insolvent.
- Application to High Court to stay or exclude vesting of property of spouse temporarily.
- Trustee to give notice of intention to realize property of spouse.
- Trustee to release property.
- Application to High Court for release of property.
- Creditors of spouse may prove claims.
- Property of spouse to bear proportionate share of costs of sequestration.
- Excussion of property of spouse.
- Creditors of spouse not liable for costs of sequestration and may not vote at certain meetings.
- Application for sequestration of estate of spouse may be postponed by High Court.
- Payment of debts after sequestration.
- Powers, duties and privileges of insolvent during sequestration.
- Examination of insolvent in relation to affairs since sequestration.
- Power of Master to have movable property sold.
- Property acquired after sequestration and alienated by insolvent.
- Estate to remain vested in trustee until composition or rehabilitation.
Effect upon Antecedent Transactions
- Dispositions without value.
- Antenuptial contracts.
- Voidable preferences.
- Undue preferences.
- Collusive dealings.
- Proceedings to set aside improper disposition.
- Improper dispositions do not affect certain rights.
- Sale of business.
- Contracts to buy immovable property.
- Sales for cash.
- Property of another in possession of insolvent.
MEETINGS OF CREDITORS
Meetings: How Convened and When
- Time and place of meetings.
- First and second meetings.
- General meetings.
- Special meetings.
- Creditor may register with trustee.
- Proof of liquidated claims.
- Trustee to examine claims.
- Right of retention and landlord’s legal hypothec.
- Proof of conditional claims.
- Claim against partnerships.
- Arrear interest.
- Withdrawal of claim.
Voting at Meetings
- Right to vote and reckoning of votes
- Questions upon which creditors may vote.
Examination of Insolvent and Others
- Insolvent and others to attend meetings.
- Interrogation of insolvent and others.
- Enforcing summonses and giving of evidence.
- Steps to be taken on suspicion of offence.
- Presumption as to record of proceedings and validity of acts at meeting of creditors.
APPOINTMENT AND REMOVALOFTRUSTEES
- Appointment of provisional trustee.
- Election of trustee.
- Qualifications and disqualifications for appointment or election as trustee.
- Appointment of trustee by Master.
- Where Master declines to appoint trustee.
- Vacation of office of trustee.
- High Court may disqualify person from being trustee or remove trustee.
- Master may remove trustee.
- Leave of absence or resignation of trustee.
- Election of new trustee.
- Remuneration of trustee.
LIQUIDATION AND DISTRIBUTIONOF ESTATE
Duties and Powers of Trustee in Liquidation of Estate
- Trustee to take charge of property of estate.
- Opening of bank account.
- Record of all receipts.
- Unlawful retention of moneys or use of property by trustee.
- Trustee may obtain legal and other advice.
- Improper advising or conduct of legal proceedings.
- Legal proceedings against estate.
- Continuance of pending legal proceedings by surviving or new trustee.
- Recovery of debts due to estate.
- Extension of time for payment or compounding of debts and arbitration.
- Subsistence allowance for insolvent and family.
- Continuation of insolvent’s business.
- Trustee’s report to creditors.
- Sale of property.
- Realization of securities.
- Cession of book debts.
Costs and Preferent Claims
- Funeral and death-bed expenses. 100. Costs of sequestration.
- Costs of execution.
- Contributions to certain funds.
- Salary or wages.
- Income tax.
- Capital gains tax.
- Value added tax.
- Farmers’ stop-orders.
- Notarial bonds.
- Non-preferent claims.
Secured Claims 110. Exclusion or limitation of preference under legal hypothec.
- Mortgage bonds.
- Pledge or cession of movable property. 113. Costs to which securities are subject.
- Application of proceeds of securities.
- Late proof of claims.
- Creditor debarred from participating in certain proceeds.
- Contributions by creditors towards costs of sequestration when free residue insufficient.
Trustee’s Accounts 118. Liquidation account and plan of distribution or contribution.
- Extension of time for lodging trustee’s account.
- Master may direct trustee to lodge plan.
- Form of liquidation account. 122. Form of trading account.
- Form of plan of distribution.
- Form of plan of contribution.
- Trustee’s account to be verified and amplified.
Confirmation of Account: Dividends and Contributions 126. Inspection of trustee’s accounts by creditors.
- Objections and directions to amend trustee’s account.
- Confirmation of trustee’s account.
- Distribution of estate and collection of contributions from creditors.
- Trustee to produce acquittances for dividends or to pay over unpaid dividends to Master.
- Application to High Court for order to pay dividend.
- Surplus to be paid into Guardian’s Fund until rehabilitation of insolvent.
- Failure by trustee to submit account or to perform duties.
- Enforcement of order of High Court.
- Enforcing payment of contributions.
Compositions 136. Offer of composition.
- Effect of composition.
- Composition by separate partner.
- Effect of composition on spouse of insolvent. 140. Functions of trustee under composition.
Rehabilitations 141. Application for rehabilitation.
- Security to be furnished prior to application for rehabilitation.
- Facts to be averred on application for rehabilitation.
- Opposition to or refusal by High Court of rehabilitation.
- Partnership cannot be rehabilitated.
- Effect of rehabilitation.
- Illegal inducements to vote for composition or not to oppose rehabilitation.
- Recovery of penalty.
- Interpretation and application of this Part.
- Deed of assignment and statement of affairs.
- Effect of execution of deed of assignment.
- Notice of assignment.
- Lodging of copies of deed for inspection.
- Effect of publication of notice of assignment.
- When deed may be signed.
- Deed not signed.
- Registration of deed.
- Effect of registration of deed.
- Notice of assignment to be given to spouse of debtor. 160. Effect of assignment on property of spouse of debtor.
- Supervision of assignment by Master.
- Powers of assignee.
- Law of insolvency applicable.
- Powers of High Court.
- Costs of assignment.
- Concealing or destroying books or assets.
- Concealment of liabilities.
- Failure to keep proper records.
- Making undue preferences.
- Contracting debts without expectation of ability to pay.
- Unreasonable diminution of assets.
- Alienation of business without notice.
- Failure to give information or to deliver assets, books, etc.
- Obtaining credit during insolvency.
- Offering inducements.
- Failure to lodge statements.
- Failure to carry out duties.
- Making false statement in statement of affairs.
- Failure to attend meetings, etc.
- Making false answers on oath while under examination or making false affidavit.
- Failure to appear or give evidence.
- Failure to appear or give evidence against trustee or assignee.
- Acceptance of inducements.
- Removal of property.
- Criminal liability of partners, administrators, employees or agents.
- Criminal liability of trustee and assignee.
- Obstructing trustee, curator bonis or assignee.
- Evidence of liabilities incurred by insolvent.
- Jurisdiction of High Court. 191. Appeal.
- Master may direct trustee and assignee to deliver books, documents or property or call upon any person to furnish certain information.
- Master may direct payment of small amounts.
- Fees of office and expenses.
- Custody of documents and documentary evidence.
- Destruction of documents.
- Insurer obliged to pay third party’s claim against insolvent.
- Formal defects. 200. Regulations.
AN ACT to make provision for the administration of insolvent and assigned estates; and to provide for matters incidental to the foregoing.
[Date of commencement: lst January, 1975.]