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Malaysia Bankruptcy Act 1967

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asked on Dec 23, 2008 at 04:44
by   Guru Besar
edited on Nov 21, 2016 at 21:57
 
Malaysia Bankruptcy Act 1967

A bankrupt is someone who has been officially declared that he cannot pay what he owes. In Malaysia, the minimum amount of outstanding debt amount to initiate bankruptcy is RM30,000.

Malaysia's bankruptcy law is based on English law and comes under the Bankruptcy Act 1967.

LAWS OF MALAYSIA

Act 360

BANKRUPTCY ACT 1967

Incorporating all amendments up to 1 January 2006

ARRANGEMENT OF SECTIONS

PRELIMINARY
Section
1. Short title and application
Interpretation
2. Interpretation

PART I
PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE
Acts of Bankruptcy
3. Acts of bankruptcy

Receiving Order
4. Jurisdiction to make receiving order
5. Conditions on which creditor may petition
6. Proceedings and order on creditor's petition
7. Debtor's petition and order thereon
8. Effect of receiving order
9. Court may detain or order arrest of debtor and commit him to prison unless he gives security not to leave Malaysia
10. Discretionary powers as to appointment of interim receiver and stay of proceedings
11. Service of order staying proceedings
12. Power to appoint special manager
13. Advertisement of receiving order
14. Power of court to rescind receiving order in certain cases

Proceedings consequent on Receiving Order
15. First and other meetings of creditors
16. Debtor's statement of affairs

Public Examination of Debtor
17. Public examination of debtor

Composition or Scheme of Arrangement
18. Power for creditors to accept and court to approve composition or arrangement
19. Effect of composition or scheme
20. No deed of arrangement valid except under section 18 or 26 unless registered
21. Penalty for collusive preference
22. Power of Minister to make rules
23. Rectification of registers

Adjudication of Bankruptcy
24. Adjudication of bankruptcy
25. Consultative committee
26. Power to accept composition or scheme after bankruptcy adjudication Control over Person and Property of Debtor
27. Duties of debtor as to discovery and realization of property
28. Arrest of debtor under certain circumstances
29. Release of debtor on security
30. Re-direction of letters and telegrams
31. Discovery of debtor's property
32. Director General of Insolvency to settle list of debtors to the estate

Discharge of Bankrupt
33. Discharge of bankrupt by order of court
33A. Discharge of bankrupt by Certificate of Director General of Insolvency
33B. Objection by creditor to discharge of bankrupt under section 33A
34. Fraudulent settlements
35. Effect of discharge
35A. Discharged bankrupt to give assistance

PART II

DISQUALIFICATION AND DISABILITIES OF BANKRUPT

36. Disqualification of bankrupt
37. Vacating offices by bankruptcy

Undischarged Bankrupt
38. Consequences of refusal of discharge
38A. Power to prevent bankrupt from leaving Malaysia
39. List of undischarged bankrupts to be kept

PART III

ADMINISTRATION OF PROPERTY

Proof of Debts
40. Description of debts provable in bankruptcy
41. Mutual credit and set-off
42. Rules as to proof of debts
43. Priority of debts
44. Preferential claim in case of apprenticeship and in respect of passage money
45. Power to landlord to distrain for rent
46. Postponement of husband's or wife's claims

Property Available for Payment of Debts
47. Relation back of Director General of Insolvency's title
48. Description of bankrupt's property divisible amongst creditors
49. Provisions as to second bankruptcy

Effect of Bankruptcy on Antecedent Transactions
50. Restriction of rights of creditor under execution or attachment
51. Property taken in execution
52. Avoidance of voluntary settlement
53. Avoidance of preferences in certain cases
53A. Avoidance of assignment of book debts
53B. Property or proceeds therefrom deemed to be property of Director

General of Insolvency
53C. Fair market value may be fixed on review
54. Protection of bona fide transactions without notice

Realization of Property
55. Possession of property by assignee
56. Seizure of property of bankrupt
57. Appropriation of portion of pay or salary to creditors
58. Vesting and transfer of property
59. Disclaimer of onerous property
60. Powers of Director General of Insolvency to deal with property
61. Powers exercisable by Director General of Insolvency subject to orders of court

Distribution of Property
62. Declaration and distribution of dividends
63. Joint and separate dividends
64. Provision for creditors residing at a distance, etc.
65. Right of creditor who has not proved debt before declaration of a dividend
66. Final dividend
67. No action for dividend
68. Power to allow bankrupt to manage property
69. Right of bankrupt to surplus

PART IV

DIRECTOR GENERAL OF INSOLVENCY

Appointment
70. Appointment of Director General of Insolvency and other officers

Duties
71. Status of Director General of Insolvency
72. Duties of Director General of Insolvency as regards the debtor's conduct
73. Duties of Director General of Insolvency as to debtor's estate
74. Protection of Director General of Insolvency and person acting under his direction or control

Costs
75. Allowance and taxation of costs

Receipts, Payments, Accounts, Audit
76. Bankruptcy Estates Account
77. Investment of surplus funds
78. Inspection and audit of Director General of Insolvency's accounts
79. Director General of Insolvency to furnish list of creditors
80. Books to be kept by Director General of Insolvency
81. Official examination of Director General of Insolvency's records

Release
82. Release of Director General of Insolvency

Official Name
83. Official name of Director General of Insolvency

Vacation of Office on Insolvency
84. Office of Director General of Insolvency vacated by insolvency

Additional Powers
84A. Additional powers of Director General of Insolvency

Control
85. Discretionary powers of Director General of Insolvency and control thereof
86. Appeal to court against Director General of Insolvency
87. Control of court over Director General of Insolvency

PART V

CONSTITUTION, PROCEDURE AND POWERS OF COURT

Jurisdiction
88. High Court to be the court having jurisdiction in bankruptcy
89. Exercise in Chambers of jurisdiction
90. Jurisdiction in bankruptcy of Registrar
91. General power of bankruptcy courts

Appeals
92. Appeals in bankruptcy

Procedure
93. Discretionary powers of the court
94. Consolidation of petitions
95. Power to change carriage of proceedings
96. Continuance of proceedings on death of debtor
97. Power to stay proceedings
98. Power to present petition against one partner
99. Power to dismiss petition against some respondents only
100. Consolidation of bankruptcy proceedings by or against partners
101. Actions by Director General of Insolvency and bankrupt's partners
102. Actions on joint contracts
103. Proceedings in partnership name
104. Reciprocal provisions relating to Singapore and designated countries

Annulment of Adjudication
105. Power of court to annul adjudication in certain cases

PART VI

SMALL BANKRUPTCIES

106. Summary administration in small cases
107. Wage-earner
108. No public examination in small cases

PART VII

FRAUDULENT DEBTORS AND CREDITORS

109. Punishment of fraudulent debtors
110. Bankrupt failing to keep proper account
111. Bankrupt incurring debt without reasonable ground of expectation of paying it
112. Penalty for absconding with property
113. Penalty for absconding in order to avoid service of bankruptcy process or embarrass bankruptcy proceedings
114. Penalty on fraudulently obtaining credit, etc.
115. Penalty on false claims, etc.
116. Debts incurred by fraud
117. (Deleted)
117A. Sessions Court to have full jurisdiction to try offences
118. Criminal liability after discharge or composition
119. Form of charge

PART VIII

SUPPLEMENTAL PROVISIONS

Application of Act
120. Application to married women
121. Exclusion of corporations and companies
122. Administration in bankruptcy of estate of person dying insolvent

General Rules
123. Power to make rules

Fees
124. Fees

Evidence
125. Gazette to be evidence
126. Evidence of proceedings at meetings of creditors
127. Evidence of proceedings in bankruptcy
128. Swearing of affidavits
129. Death of witness

Notices
130. Service of notices

Formal Defects
131. Formal defect not to invalidate proceedings

Stamp Duty
132. Exemption of deeds, etc., from stamp duty

Corporations, Firms and Mentally Disordered Persons
133. Acts of corporations, firms and mentally disordered persons

Unclaimed Funds or Dividends
134. Unclaimed or undistributed money

Debtor's Books
135. Access to debtor's books

Repeals and Special Provisions
136. (Omitted)
137. Transitional provisions for States of Malaya
138. Jurisdiction of District Officers, Sarawak and Sabah
139. Transitional provisions for Sarawak and Sabah
SCHEDULE A
SCHEDULE B
SCHEDULE C

BANKRUPTCY ACT 1967

An Act relating to the law of bankruptcy.

[30 September 1967]

BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:

PRELIMINARY

Short title and application

1. (1) This Act may be cited as the Bankruptcy Act 1967.

(2) This Act shall apply throughout Malaysia.

Interpretation

Interpretation
2. In this Act, unless the context otherwise requires-

"advocate" means any person entitled to practise as an advocate or as a solicitor or as an advocate and solicitor under any law in any part of Malaysia;

"affidavit" includes attestation on honour;

"available act of bankruptcy" means any act of bankruptcy available for a bankruptcy petition at the date of the presentation of the petition on which the receiving order is made;

"bankruptcy petition" includes a petition for a receiving order;

"Chief Judge" means the Chief Judge of the High Court in Malaya or of the High Court in Sabah and Sarawak, as the case may require;

"consultative committee" means the committee appointed under section 25;

"the court" means the court having jurisdiction in bankruptcy under this Act;

"debt provable in bankruptcy" or "provable debt" includes any debt or liability by this Act made provable in bankruptcy;

"deed of arrangement" includes any of the following instruments, whether under seal or not, made by, for, or in respect of the affairs of a debtor for the benefit of his creditors generally:

(a) an assignment of property;

(b) a deed or agreement for a composition;

and in cases where creditors of a debtor obtain any control over the property or business-

(c) a deed of inspectorship entered into for the purpose of winding-up or carrying on a business;

(d) a letter of licence authorizing the debtor or any other person to manage, carry on, realize or dispose of a business with a view to the payment of debts; and

(e) any agreement or instrument entered into for the purpose of carrying on or winding up the debtor's business, or authorizing the debtor or any other person to manage, carry on, realize or dispose of the debtor's business with a view to the payment of his debts;

"Director General of Insolvency" includes any officer appointed under section 70 and authorized to exercise the powers of the Director General of Insolvency;

"gazetted" means published in the official Gazette of Malaysia or of any State (as the case may require) including any supplement or Extraordinary Gazette;

"general rules" includes forms;

"goods" includes all chattels personal;

"liability" includes any compensation for work or labour done, any obligation or possibility of an obligation to pay money or money's worth on the breach of any express or implied covenant, contract, agreement or undertaking, whether the breach does or does not occur or is or is not likely to occur or capable of occurring before the discharge of the debtor, and generally it shall include any express or implied engagement, agreement or undertaking to pay, or capable or resulting in the payment of money or money's worth, whether the payment is as respects amount fixed or unliquidated or as respects time, present or future, certain or dependent on any one contingency or on two or more contingencies, or as to mode of valuation capable of being ascertained by fixed rules or as matter of opinion;

"oath" includes attestation on honour;

"ordinary resolution" means a resolution decided by a majority in value of the creditors present personally or by proxy at a meeting of creditors and voting on the resolution;

"property" includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Malaysia or elsewhere, also obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, arising out of or incident to property as above defined;

"Registrar" means the Registrar of the High Court and includes a Deputy Registrar, a Senior Assistant Registrar or an Assistant Registrar of the High Court;

"resolution" means ordinary resolution;

"secured creditor" means a person holding a mortgage, charge or lien on the property of the debtor or any part thereof as a security for a debt due to him from the debtor but shall not include a plaintiff in any action who has attached the property of the
debtor before judgement;

"social guarantor" means a person who provides, not for the purpose of making profit, the following guarantees:

(a) a guarantee for a loan, scholarship or grant for educational or research purposes;

(b) a guarantee for a hire-purchase transaction of a vehicle for personal or non-business use; and

(c) a guarantee for a housing loan transaction solely for personal dwelling;

"special resolution" means a resolution decided by a majority in number and at least three-fourths in value of the creditors present personally or by proxy at a meeting of creditors and voting on the resolution.

PART I

PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE

Act of Bankruptcy

Acts of bankruptcy
3. (1) A debtor commits an act of bankruptcy in each of the following cases:

(a) if in Malaysia or elsewhere he makes a conveyance or assignment of his property to a trustee or trustees for the benefit of his creditors generally;

(b) if in Malaysia or elsewhere he makes a fraudulent conveyance, gift, delivery or transfer of his property or of any part thereof;

(c) if in Malaysia or elsewhere he makes any conveyance or transfer of his property or of any part thereof, or creates any charge thereon which would under this or any other
written law for the time being in force be void as a fraudulent preference if he were adjudged bankrupt;

(d) if with intent to defeat or delay his creditors he does any of the following things:

(i) departs out of Malaysia or being out of Malaysia remains out of Malaysia;

(ii) departs from his dwelling-house or otherwise absents himself, or begins to keep house or closes his place of business; or

(iii) submits collusively or fraudulently to an adverse judgment or order for the payment of money;

(e) if execution issued against him has been levied by seizure of his property under process in an action or in any civil proceeding in the High Court, Sessions Court or Magistrates Court where the judgment, including costs, is for an amount of *one thousand ringgit or more;

(f) if he files in the court a declaration of his inability to pay his debts or presents a bankruptcy petition against himself;

(g) if he gives notice to any of his creditors that he has suspended or that he is about to suspend payment of his debts;
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answered on Feb 11, 2010 at 15:13
by   Anonymous
edited Nov 21, 2016 at 22:08
 
(i) if a creditor has obtained a final judgment or final order against him for any amount and execution thereon not having been stayed has served on him in Malaysia, or by leave of the court elsewhere, a bankruptcy notice under this Act requiring him to pay the judgment debt or sum ordered to be paid in accordance with the terms of the judgment or order with interest quantified up to the date of issue of the bankruptcy notice, or to secure or compound for it to the satisfaction of the creditor or the court; and he does not within seven days after service of the notice in case the service is effected in Malaysia, and in case the service is effected elsewhere then within the time limited in that behalf by the order giving leave to effect the service, either comply with the requirements of the notice or satisfy the court that he has a counterclaim, set off or cross demand which equals or exceeds the amount of the judgment debt or sum ordered to be paid and which he could not set up in the action in which the judgment was obtained or in the proceedings in which the order was obtained:

Provided that for the purposes of this paragraph and of section 5 any person who is for the time being entitled to enforce a final judgment or final order shall be deemed to be a creditor who has obtained a final judgment or final order;

*NOTE—Previously “five hundred ringgit”–see the Bankruptcy (Amendment) Act 1976 [Act A364].

(j) if the officer charged with the execution of a writ of attachment or other process makes a return that the debtor was possessed of no property liable to seizure; and for the purposes of this paragraph the date when the writ is lodged with the officer shall be deemed to be the date of the act of bankruptcy.

(2) A bankruptcy notice under this Act shall be in the prescribed form and shall state the consequences of non compliance therewith and shall be served in the prescribed manner:

Provided that a bankruptcy notice—

(i) may specify an agent to act on behalf of the creditor in respect of any payment or other thing required by the notice to be made to or done to the satisfaction of the creditor; and

(ii) shall not be invalidated by reason only that the sum specified in the notice as the amount due exceeds the amount actually due unless the debtor within the time allowed for payment gives notice to the creditor that he disputes the validity of the notice on the ground of such mistake; but if the debtor does not give such notice he shall be deemed to have complied with the bankruptcy notice, if within the time allowed he takes such steps as would have constituted compliance with the notice had the actual amount due been correctly specified therein.

(3) The word “debtor” in this Act shall be deemed to include any person who at the time when the act of bankruptcy was done or suffered by him—
(a) was personally present in Malaysia;
(b) ordinarily resided or had a place of residence in Malaysia;
(c) was carrying on business in Malaysia either personally or by means of an agent; or
(d) was a member of a firm or partnership which carried on business in Malaysia.

Receiving Order

Jurisdiction to make receiving order
4. Subject to the conditions hereinafter specified, if a debtor has committed an act of bankruptcy, the Court may on a bankruptcy petition being presented, either by a creditor or by the debtor make an order for the protection of the estate, which order is in this Act called a receiving order.

Conditions on which creditor may petition
5. (1) A creditor shall not be entitled to present a bankruptcy petition against a debtor unless—

(a) the debt owing by the debtor to the petitioning creditor, or if two or more creditors join in the petition the aggregate amount of debts owing to the several petitioning creditors, amounts to *thirty thousand ringgit;

(b) the debt is a liquidated sum payable either immediately or at some certain future time;

(c) the act of bankruptcy on which the petition is grounded has occurred within six months before the presentation of the petition; and

(d) the debtor is domiciled in Malaysia or in any State or within one year before the date of the presentation of the petition has ordinarily resided or had a dwelling house or place of business in Malaysia or has carried on business in Malaysia personally or by means of an agent or is or has been within the same period a member of a firm or partnership which has carried on business in Malaysia by means of a partner or partners or an agent or manager.

(2) If the petitioning creditor is a secured creditor he must in his petition either state that he is willing to give up his security for the benefit of the creditors in the event of the debtor being adjudged bankrupt or give an estimate of the value of his security. In the latter case he may to the extent of the balance of the debt due to him, after deducting the value so estimated, be admitted as a petitioning creditor in the same manner as if he were an unsecured creditor.

(3) A petitioning creditor shall not be entitled to commence any bankruptcy action against a social guarantor unless he proves to the satisfaction of the court that he has exhausted all avenues to recover debts owed to him by the debtor.

*NOTE—Previously “ten thousand ringgit”–see the Bankruptcy (Amendment) Act 2003 [Act A1197].

Proceedings and order on creditor’s petition
6. (1) A creditor’s petition shall be verified by affidavit of the creditor or of some person on his behalf having knowledge of the facts, and shall be served as prescribed.

(2) At the hearing the court shall require proof of—
(a) the debt of the petitioning creditor;

(b) the act of bankruptcy or, if more than one act of bankruptcy is alleged in the petition, some one of the alleged acts of bankruptcy; and

(c) if the debtor does not appear, the service of the petition, and if satisfied with the proof may make a receiving order in pursuance of the petition.

(3) If the court is not satisfied with the proof of the petitioning creditor’s debt or of the act of bankruptcy or of the service of the petition, or is satisfied by the debtor that he is able to pay his debts, or that for other sufficient cause no order ought to be made, the court may dismiss the petition.

(4) When the act of bankruptcy relied on is non-compliance with a bankruptcy notice to pay, secure or compound for a judgment debt, the court may if it thinks fit stay or dismiss the petition on the ground that an appeal is pending from the judgment.

(5) Where the debtor appears on the petition and denies that he is indebted to the petitioner, or that he is indebted to such an amount as would justify the petitioner in presenting a petition against him, the court, on such security, if any, being given as the court may require for payment to the petitioner of any debt which may be established against the debtor in due course of law and of the costs of establishing the debt, may, instead of dismissing the petition, stay all proceedings on the petition for such time as may be required for trial of the question relating to the debt.

(6) Where proceedings are stayed the court may, if by reason of the delay caused by the stay of proceedings or for any other cause it thinks just, make a receiving order on the petition of some other creditor, and shall thereupon dismiss, on such terms as it thinks just, the petition in which proceedings have been stayed as aforesaid.

(7) A creditor’s petition shall not after presentation be withdrawn without the leave of the court.

Debtor’s petition and order thereon
7. (1) A debtor’s petition shall allege that the debtor is unable to pay his debts, and the presentation thereof shall be deemed an act of bankruptcy without the previous filing by the debtor of any declaration of inability to pay his debts, and the court shall thereupon make a receiving order.

(2) A debtor’s petition shall not after presentation be withdrawn without the leave of the court.

Effect of receiving order
8. (1) On the making of a receiving order the Director General of Insolvency shall be thereby constituted receiver of the property of the debtor, and thereafter, except as directed by this Act, no creditor to whom the debtor is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the debtor in respect of the debt, or shall proceed with or commence any action or other legal proceeding in respect of such debt unless with the leave of the court and on such terms as the court may impose.

(2) This section shall not affect the power of any secured creditor to realize or otherwise deal with his security in the same manner as he would have been entitled to realize or deal with it if this section had not been passed—nor shall it operate to prejudice the right of any person to receive any payment under or by virtue of section 31 of the Employment Act 1955 [Act 265] of the States of *Peninsular Malaysia or any corresponding provisions in Sabah and Sarawak.

(2A) Notwithstanding subsection (2), no secured creditor shall be entitled to any interest in respect of his debt after the making of a receiving order if he does not realize his security within six months from the date of the receiving order.

(3) On a receiving order being made against a debtor he shall, within twenty-four hours after such order has been served upon him file an affidavit in the office of the Director General of Insolvency, containing a true and correct statement of the names and residences of all the partners, if any, in his business and of his principal assets and liabilities. Such statement shall for the purposes of this Act be deemed to be part of the debtor’s statement of his affairs referred to in section 16.

*NOTE—All references to “West Malaysia” shall be construed as reference to “Penisular Malaysia”–see the Interpretation (Amendment) Act 1997 [Act A996], subsection 5(2).

(4) On such order as aforesaid being made against a debtor the Director General of Insolvency shall forthwith take possession of all books of account and other papers and documents in the possession, custody or control of the debtor relating to his property or affairs, and may take into his possession all or any deeds, books, documents and other property of the debtor.

Court may detain or order arrest of debtor and commit him to prison unless he gives security not to leave Malaysia
9. (1) On making a receiving order, the court, on application made by or on behalf of the petitioning creditor or any other person claiming to be a creditor, may detain the debtor if he is present, and if he is not present may order the debtor to be arrested
and brought before the court by warrant addressed to any police officer or officer of the court, and unless the debtor, when so detained or brought before the court, gives security to the satisfaction of the court that he will not leave Malaysia without the previous permission in writing of the Director General of Insolvency or of the court, he may be committed to the civil prison and be there kept until the close of his public examination or until the court otherwise orders.

(2) If a receiving order is made against a firm in the firm’s name no such warrant to arrest any alleged partner in the firm shall issue, except upon the application of the petitioning or some other creditor and upon evidence on oath as to the persons who at the date of the receiving order are partners in the firm.

(3) If any person arrested denies that he is a partner, the court shall order his release unless the petitioning or other creditor gives security, to the satisfaction of the court, to meet the probable damages if such person is found not to be a partner.

(4) The cost of maintaining any debtor in prison under this section shall be prepaid by the applicant from time to time to the gaol authority, according to the cost of rations for the time being.

Discretionary powers as to appointment of interim receiver and stay of proceedings
10. (1) The court may, if it thinks it advisable for the protection of the estate, at any time after the presentation of a bankruptcy petition and before a receiving order is made, appoint the Director General of Insolvency to be interim receiver of the property of the debtor or of any part thereof, and direct him to take immediate possession thereof or of any part thereof, including all books of account and other papers and documents belonging to the debtor and relating to his business.

(2) The court may at any time after the presentation of a bankruptcy petition stay any action, execution or other legal process against the property or person of the debtor.

Service of order staying proceedings
11. Where an order is made under section 10, staying any action or proceeding or staying proceedings generally, the order may be served by sending a copy thereof, under the seal of the court, by prepaid registered post to the address for service of the plaintiff or other party prosecuting such proceeding.

Power to appoint special manager
12. (1) The Director General of Insolvency may, if satisfied that the nature of the debtor’s estate or business or the interests of the creditors generally require the appointment of a special manager of the estate or business other than the Director General of Insolvency, appoint a manager thereof accordingly to act until the first meeting of creditors, and with such powers, including any of the powers of a receiver, as are entrusted to him by the Director General of Insolvency.

(2) The debtor may be appointed special manager.

(3) The special manager shall give security and account in such manner as the Director General of Insolvency, subject to the control of the court, directs.

(4) The special manager shall receive such remuneration as the Director General of Insolvency, within the prescribed limits and subject to such control as aforesaid, determines.

Advertisement of receiving order
13. Notice of every receiving order, stating the name, address and description of the debtor, the date of the order and the date of the petition, shall be gazetted and advertised in a local paper as prescribed.

Power of court to rescind receiving order in certain cases
14. If in any case where a receiving order has been made on a bankruptcy petition it appears to the court, upon an application by the Director General of Insolvency or any creditor or other person interested, that a majority of the creditors in number and value are resident in the Republic of Singapore, and that from the situation of the property of the debtor or for other causes his estate and effects ought to be distributed among the creditors under the bankruptcy or insolvency laws of that country, the court, after such inquiry as it seems fit, may rescind the receiving order and stay all proceedings on or dismiss the petition upon such terms, if any,
as it thinks fit.

Proceedings consequent on Receiving Order

First and other meetings of creditors
15. (1) As soon as may be after the making of a receiving order against a debtor a general meeting of his creditors, in this Act referred to as the first meeting of creditors, shall be held for the purpose of considering whether a proposal for a composition or scheme of arrangement shall be entertained, or whether it is expedient that the debtor be adjudged bankrupt, and generally as to the mode of dealing with the debtor’s property.

(1A) Any creditor who has tendered a proof of debts, or his representative duly authorized in writing, may question the debtor concerning his affairs and the causes of his failure.

(2) With respect to the summoning of and proceedings at the first and other meetings of creditors the rules in Schedule A shall be observed.
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answered on Feb 23, 2010 at 05:00
by   Anonymous
edited Nov 22, 2016 at 17:53
 
Debtor’s statement of affairs
16. (1) Where a receiving order is made against a debtor he shall make out and submit to the Director General of Insolvency a statement of and in relation to his affairs in the prescribed form, Bankruptcy 23 verified by affidavit, showing the particulars of the debtor’s assets, debts and liabilities, the names, residences and occupations of his creditors, the securities held by them respectively, the dates when the securities were respectively given, the cause of his insolvency, the date when he last balanced his accounts before becoming insolvent, the amount of his capital at the date of such balance, after providing for all his liabilities and making allowances for bad and doubtful debts, and such further and other information as is prescribed or as the Director General of Insolvency requires.

(2) The statement shall be so submitted within the following times:

(a) if the order is made on the petition of the debtor, within seven days from the date of the order;
(b) if the order is made on the petition of a creditor, within twenty-one days from the date of the order, but the Director General of Insolvency may in either case for
special reasons extend the time by order made under his hand, to be forthwith filed, recording the reasons therefor.

(3) If the debtor fails without reasonable excuse, proof whereof shall lie on him, to comply with the requirements of this section he shall be guilty of a contempt of court and may be punished accordingly, and the court may on the application of the Director General of Insolvency or of any creditor adjudge him bankrupt.

(4) Any person stating himself, in writing, to be a creditor of the bankrupt may personally or by agent inspect this statement at all reasonable times and take any copy thereof or extract therefrom, but any person untruthfully so stating himself to be a creditor shall be guilty of a contempt of court and shall be punishable accordingly on the application of the Director General of Insolvency.

Public Examination of Debtor

Public examination of debtor
17. (1) Where the court makes a receiving order, the Director General of Insolvency may make an application to hold a public sitting on a day to be appointed by the court for the examination of the debtor, and the debtor shall attend thereat, and shall be examined as to his conduct, dealing and property:

Provided that when the debtor is a lunatic or suffers from any such mental or physical affliction or disability as in the opinion of the Court renders him unfit to attend his public examination the court may dispense with such examination or direct the debtor to be examined in such manner and place as the court thinks expedient.

(2) The examination shall be held as soon as conveniently may be after the expiration of the time for the submission of the debtor’s statement of affairs and after the first meeting of creditors.

(3) The court may adjourn the examination from time to time.

(4) Any creditor who has tendered a proof, or his representative authorized in writing, may question the debtor concerning his affairs and the causes of his failure.

(5) The Director General of Insolvency shall take part in the examination of the debtor, and for the purpose thereof may, if specially authorized by the Attorney General, employ an advocate and solicitor but no advocate and solicitor shall be allowed to take part in the examination on behalf of the debtor.

(6) The court may put such questions to the debtor as it thinks expedient.

(7) The debtor shall be examined upon oath, and it shall be his duty to answer all such questions as the court puts or allows to be put to him.

(8) Such notes of the examination as the court thinks proper shall be taken down in writing by the Registrar and shall be read over to and signed by the debtor, and may thereafter be used in evidence against him, and shall be open to the inspection of any creditor at all reasonable times.

(9) When the court is of opinion that the affairs of the debtor have been sufficiently investigated, it shall, by order, declare that his examination is concluded, but such order shall not preclude the court from directing a further examination of the debtor as to his conduct, dealings and property whenever it sees fit to do so.

(10) (Deleted by Act A827).
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answered on Feb 23, 2010 at 17:08
by   Anonymous
edited Nov 22, 2016 at 17:51
 
Composition or Scheme of Arrangement

Power for creditors to accept and court to approve composition or arrangement
18. (1) The creditors may, by special resolution at the first meeting or any adjournment thereof, resolve to entertain a proposal for a composition in satisfaction of the debts due to them from the debtor, or a proposal for a scheme of arrangement of the debtor’s affairs.

(2) The composition or scheme shall not be binding on the creditors unless it is confirmed at a subsequent meeting of the creditors by a resolution passed by a majority in number, representing at least three-fourths in value of all the creditors who have proved, and is approved by the court.

(3) Any creditor who has proved his debt may assent to or dissent from such composition or scheme by a letter addressed to the Director General of Insolvency in the prescribed form, and attested by a witness, and sent or posted so as to be received by such Director General of Insolvency not later than the day preceding such subsequent meeting, and a creditor so assenting or dissenting shall be taken as being present and voting at such meeting.

(4) The subsequent meeting shall be summoned by the Director General of Insolvency by not less than seven days’ notice and shall not be held until after the public examination of the debtor is concluded.

(5) The notice shall state generally the terms of the proposal and shall be accompanied by a report of the Director General of Insolvency thereon.

(6) The debtor or the Director General of Insolvency may, after the composition or scheme is accepted by the creditors, apply to the court to approve it, and notice of the time appointed for hearing the application shall be given as prescribed.

(7) (Deleted by Act A827).

(8) The court before approving a composition or scheme shall hear a report of the Director General of Insolvency as to the terms of the composition or scheme and as to the conduct of the debtor, and shall hear any objections which may be made by or on behalf of any creditor.

(9) If the court is of opinion that the terms of the composition or scheme are not reasonable or are not calculated to benefit the general body of creditors, and in any case in which the court is required under this Act to refuse a bankrupt his discharge, the court shall, or if any such facts are proved as would under this Act justify the court in refusing, qualifying or suspending the discharge, the court may, in its discretion, refuse to approve the composition or scheme.

(10) If the court approves the composition or scheme the approval may be testified by the seal of the court being attached to the instrument containing the terms of the composition or scheme, or by the terms being embodied in an order of the court.

(11) A composition or scheme accepted and approved in pursuance of this section shall be binding on all the creditors so far as relates to any debts due to them from the debtor and provable in bankruptcy.

(12) A certificate of the Director General of Insolvency that a composition or scheme has been duly accepted and approved shall, in the absence of fraud, be conclusive as to its validity.

(13) A composition or scheme under this section may be enforced by the court on application by any person interested, and any disobedience of an order of the court made on the application shall be deemed a contempt of court.

(14) If default is made in payment of any instalment due in pursuance of the composition or scheme, or if it appears to the court on satisfactory evidence that the composition or scheme cannot, in consequence of legal difficulties or for any sufficient cause, proceed without injustice or undue delay to the creditors or to the debtor, or that the approval of the court was obtained by fraud, the court may, if it thinks fit, on application by any creditor, adjudge the debtor bankrupt and annul the composition or scheme, but without prejudice to the validity of any sale, disposition or payment duly made or thing duly done under or in pursuance of the composition or scheme.

(15) Where a debtor is adjudged bankrupt under subsection (14), any debt provable in other respects, which has been contracted before the date of the adjudication, shall be provable in the bankruptcy.

(16) If under or in pursuance of a composition or scheme a trustee or assignee is appointed to administer the debtor’s property or manage his business or distribute a composition, Part IV shall apply to such trustee or assignee as if he were an assignee in a bankruptcy, and as if the terms “bankruptcy”,“bankrupt” and “order of adjudication” included respectively a composition or scheme of arrangement, a compounding or arranging debtor and an order approving the composition or scheme.

(17) Part III shall, so far as the nature of the case and the terms of the composition or scheme admit, apply thereto, the same interpretation being given to the words “assignee,” “bankruptcy” and “order of adjudication” as in subsection (16).

(18) No composition or scheme shall be approved by the court which does not provide for the payment in priority to other debts of all debts directed to be so paid in the distribution of the property of a bankrupt.

(19) The acceptance by a creditor of a composition or scheme shall not release any person who under this Act would not be released by an order of discharge if the debtor had been adjudged bankrupt.
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answered on Feb 23, 2010 at 19:51
by   Anonymous
edited Nov 22, 2016 at 17:48
 
Effect of composition or scheme
19. Notwithstanding the acceptance and approval of a composition or scheme, such composition or scheme shall not be binding on any creditor so far as regards a debt or liability from which, under this Act, the debtor would not be discharged by an order of discharge in bankruptcy unless the creditor assents to the composition or scheme.

No deed of arrangement valid except under section 18 or 26 unless registered
20. No deed of arrangement, except a composition or scheme entered into under section 18 or 26, shall be valid unless the same has been registered within fourteen clear days after the first execution thereof by the debtor or any creditor, in accordance with the rules for the time being in force for the registration of deeds of arrangements under this Act.

Penalty for collusive preference
21. (1) Every person who signs or on whose behalf is signed a deed of arrangement to which section 20 applies, who within two months before or at any period after signing the same, receives any secret or collusive preference, gratuity, security, payment or other consideration, all hereinafter included in the expression “gratuity”, for concurring in or signing such deed of arrangement shall be guilty of an offence punishable as hereinafter mentioned.

(2) Every gratuity for concurring in or signing, or having concurred in or signed a deed of arrangement, shall be deemed to be secret and collusive unless the same or any promise for the same is disclosed on the face of the deed of arrangement or in a memorandum annexed to the deed at the time when the person who has received or is to receive such gratuity signs the deed of arrangement, which memorandum shall also be signed in acknowledgment of having seen the same by all the parties to the deed of arrangement before the registration thereof.

(3) Every person committing an offence under this section shall be liable to a fine not exceeding five times the amount or value of the gratuity received by or promised to him, and the court before which such person is tried may award a part of any such
fine, not exceeding one-half thereof, to the informer through whom the conviction has been obtained, provided that such informer is not the debtor.

Power of Minister to make rules
22. (1) The Minister may make rules for the registration of deeds of arrangement under this Act.

(2) Such rules shall provide for—
(a) the mode of registration;
(b) the form of the registers to be kept for the purpose of registration of deeds of arrangement under this Act;
(c) the inspection of the registers and deeds registered and the taking of copies and extracts of the same, and the custody of the registers and other documents connected with the business of registration;
(d) the fees to be taken in respect of registration of deeds of arrangement and in respect of office copies or extracts and searches.

(3) Until rules are made under this section, the rules for the registration of deeds of arrangements shall be as set out in Schedule B.

Rectification of registers
23. The court, upon being satisfied that the omission to register a deed of arrangement within the time required by this Act, or that the omission or mis-statement of the name, residence or description of any person was accidental or due to inadvertence or to some cause beyond the control of the debtor and not imputable to any negligence on his part, may, on the application of any party interested and on such terms and conditions as are just and expedient, extend the time for such registration or order such omission or misstatement to be supplied or rectified by the insertion in the register of the true name, residence or description.
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answered on Mar 17, 2010 at 05:53
by   Anonymous
edited Nov 22, 2016 at 01:38
 
Adjudication of Bankruptcy

Adjudication of bankruptcy
24. (1) At the time of making a receiving order the court shall adjudge the debtor bankrupt unless the debtor can show to the satisfaction of the court that he is in a position to offer a composition or make a scheme of arrangement satisfactory to his creditors; provided that when a receiving order is made against a firm in the firm’s name the court shall not adjudge any person bankrupt as a member of the firm unless such person is proved to the satisfaction of the court to be a partner by his own admission or by evidence on oath.

(2) The court may at any time, on the application of the debtor himself, by petition in writing, unstamped, to be forthwith filed, adjudge him bankrupt and at the same time make a receiving order against him, and such application may be made without notice.

(3) Where a receiving order is made against a debtor, if the creditors at the first meeting or any adjournment thereof resolve by ordinary resolution that the debtor be adjudged bankrupt or pass no resolution, or if the creditors do not meet, or if a composition or scheme is not accepted or approved in pursuance of this Act within fourteen days after the conclusion of the examination of the debtor or such further time as the court allows, the court shall adjudge the debtor bankrupt.

(4) When a debtor is adjudged bankrupt his property shall become divisible among his creditors and shall vest in the Director General of Insolvency.

(5) Notice of every order adjudging a debtor bankrupt, stating the name, address and description of the bankrupt and the date of the adjudication, shall be published in the Gazette and advertised in a local paper as prescribed, and the date of the order shall for the purposes of this Act be the date of the adjudication.

Consultative committee
25. (1) The creditors qualified to vote may, at their first meeting or any adjournment thereof, appoint by resolution from among the creditors qualified to vote, or the holders of general proxies or general powers of attorney from such creditors, a committee of one or more persons, not exceeding three, for the purpose of advising the Director General of Insolvency on matters relating to the administration of the property of the bankrupt.

(2) The Director General of Insolvency may convene the committee at such times as he thinks necessary, and the Director General of Insolvency shall convene the committee whenever requested in writing to do so by all or a majority of the members of the committee.

(3) Any member of the committee may resign his office by notice in writing, signed by him and delivered to the Director General of Insolvency.

(4) If a member of the committee becomes bankrupt, or compounds or arranges with his creditors, or is absent for more than two months from Malaysia his office shall thereupon become vacant.

(5) Any member of the committee may be removed by an ordinary resolution at any meeting of creditors, of which seven days’ notice has been given stating the object of the meeting.

(6) On a vacancy occurring in the office of a member of the committee the Director General of Insolvency shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meeting may by resolution appoint another creditor or other person eligible as above to fill the vacancy.

Power to accept composition or scheme after bankruptcy adjudication
26. (1) Where a debtor is adjudged bankrupt the creditors may, if they think fit, at any time after the adjudication, by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankrupt’s affairs, and thereupon the same proceedings shall be taken and the same consequences shall ensue as in the case of a composition or scheme entertained at the first meeting of creditors.

(2) If the court approves the composition or scheme it may make an order annulling the bankruptcy and vesting the property of the bankrupt in him or in such other person as the court appoints, on such terms and subject to such conditions, if any, as the court
declares.

(3) If default is made in payment of any instalment due in pursuance of the composition or scheme, or if it appears to the court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the court was obtained by fraud, the court may, if it thinks fit, on application by any person interested, adjudge the debtor bankrupt and annul the composition or scheme, but without prejudice to the validity of any sale, disposition or payment duly made or thing duly done under or in pursuance of the composition or scheme.

(4) Where a debtor is adjudged bankrupt under subsection (3) all debts provable in other respects, which have been contracted before the date of such adjudication, shall be provable in the bankruptcy.

Control over Person and Property of Debtor

Duties of debtor as to discovery and realization of property
27. (1) Every debtor against whom a receiving order is made shall, unless prevented by sickness or other sufficient cause, attend the first meeting of his creditors and any subsequent meeting of his creditors which the Director General of Insolvency requires him to attend, and shall submit to such examination and give such information as the meeting requires.

(2) He shall give such inventory of his property, such list of his creditors and debtors and of the debts due to and from them respectively, submit to such examination in respect of his property or his creditors, wait at such times and places on the Director General of Insolvency, execute such powers of attorney, conveyances, deeds and instruments, and generally do all such acts and things in relation to his property and the distribution of the proceeds amongst his creditors as are reasonably required by the Director General of Insolvency, or are prescribed or directed by the court by any special order or orders made in reference to any particular case or made on the occasion of any special application by the Director General of Insolvency or any creditor or person interested.

(3) He shall, if adjudged bankrupt, aid to the utmost of his power in the realization of his property, and the distribution of the proceeds among his creditors, and amongst other things shall, if required by the Director General of Insolvency so to do, answer all such questions and shall submit to such medical examination and do all such other things as are necessary for the purpose of effecting an insurance on his life.

(4) If a debtor wilfully fails to perform the duties imposed on him by this section or to deliver up possession of any part of his property which is divisible amongst his creditors under this Act, and which is for the time being in his possession or under his control, to the Director General of Insolvency or to any person authorized by the court to take possession of it, he shall, in addition to any other punishment to which he may be subject, be guilty of a contempt of court and may be punished accordingly.

Arrest of debtor under certain circumstances
28. (1) The court may, by warrant addressed to any police officer or officer of the court, cause a debtor to be arrested, and any books, papers, money and goods in his possession to be seized, and him and them to be safely kept as prescribed until such time as the court orders if—

(a) after a bankruptcy notice has been issued under this Act, or after presentation of a bankruptcy petition by or against him, it appears to the court that there is probable reason for believing that he is in hiding or has absconded or is about to abscond, with a view of avoiding payment of the debt in respect of which the bankruptcy notice was issued, or of avoiding service of a bankruptcy petition, or of avoiding appearance to any such petition, or of avoiding examination in respect of his affairs, or of otherwise avoiding, delaying or embarrassing proceedings in bankruptcy against him; or

(b) after presentation of a bankruptcy petition by or against him it appears to the court that there is probable cause for believing that he is about to remove his goods, with a view of preventing or delaying possession being taken of them by the Director General of Insolvency, or that there is probable ground for believing that he has concealed or is about to conceal or destroy any of his goods or any books, documents or writings which might be of use to his creditors in the course of his bankruptcy; or

(c) after service of a bankruptcy petition on him or after a receiving order is made against him he removes any goods in his possession above the value of fifty ringgit without the leave of the Director General of Insolvency; or

(d) without good cause shown he fails to attend any examination ordered by the court; or

(e) after presentation of a bankruptcy petition by or against him the Director General of Insolvency reports to the court, or the court is otherwise satisfied that there is
probable reason for believing that the assets will not be sufficient to pay a dividend of fifty ringgit per centum on the debts or that there is probable reason for believing that the debtor has committed any offence punishable under this Act.

(2) No arrest upon a bankruptcy notice shall be valid and protected unless the debtor before or at the time of his arrest is served with such bankruptcy notice.

(3) No payment or composition made or security given after arrest made under this section shall be exempt from this Act relating to fraudulent preferences.

Release of debtor on security
29. (1) When a debtor is arrested under section 28 he may be released by order of the court, either with or without giving security to the satisfaction of the court that he will not leave Malaysia without the previous permission in writing of the Director General of Insolvency or of the court, or that he will not remove any of his goods or conceal or destroy any of his goods or any books, documents or writings which might be of use to his creditors in the course of his bankruptcy.

Proceeds of security to fall into the estate of the debtor
(2) The proceeds of the realization of any security given under this section or under section 9 on breach by the debtor of any of the conditions of such security shall be deemed to be the property of the debtor, and when he is adjudged bankrupt shall vest in the Director General of Insolvency.

Redirection of letters and telegrams
30. Where a receiving order is made against a debtor the court, on the application of the Director General of Insolvency, may order that for such time not exceeding three months as the court thinks fit, telegrams and post letters addressed to the debtor at any place or places mentioned in the order for redirection shall be redirected, sent or delivered by the agent of the telegraph company or by the postal authorities, as the case may be, to the Director General of Insolvency or otherwise as the court directs, and the same shall be done accordingly.

Discovery of debtor’s property
31. (1) The court may, on the application of the Director General of Insolvency or of any creditor who has proved his debt at any time after a receiving order has been made against a debtor, summon before it the debtor, or any wife of his, or any person known or suspected to have in his possession any of the estate or effects belonging to the debtor, or supposed to be indebted to the debtor, or any person whom the court deems capable of giving information respecting the debtor, his dealings or property, and the court may require any such person to produce any documents in his custody or power relating to the debtor, his dealings or property.

(2) If any person so summoned, after having been tendered a reasonable sum, refuses to come before the court at the time appointed, or refuses to produce any such document, having no lawful impediment made known to the court at the time of its sitting and allowed by it, the court may by warrant cause him to be apprehended and brought up for examination.

(3) The court may examine on oath, either by word of mouth or by written interrogatories, any person so brought before it concerning the debtor, his dealings or property.

(4) If on the examination of any such person it appears to the court that he is indebted to the debtor, the court may, on the application of the Director General of Insolvency, order him to pay to the Director General of Insolvency, at such time and in such manner as to the court seems expedient, the amount in which he is indebted or any part thereof, either in full discharge of the whole amount in question or not as the court thinks fit, with or without costs of the examination.

(5) If on the examination of any such person it appears to the court that he has in his possession any property belonging to the debtor the court may, on the application of the Director General of Insolvency, order him to deliver to the Director General of Insolvency such property or any part thereof at such time and in such manner and on such terms as to the court seems just.

(6) The powers given to the court under this section may in all cases be exercised by the Registrar and any order made or act done by the Registrar shall be deemed the order or act of the court.

Director General of Insolvency to settle list of debtors to the estate
32. (1) The Director General of Insolvency shall, as soon as may be after a receiving order has been made against a debtor, prepare and file in court a list of persons supposed to be indebted to the debtor, with the amounts in which they are supposed to be so indebted set opposite to their names respectively.

(2) Before finally settling the name and amount of the debt of any person on such list the Director General of Insolvency shall give notice in writing to such person, stating that he has placed such person upon the list of debtors to the estate in the amount in the notice specified, and that unless such person on or before a day in such notice specified gives to the Registrar and to the Director General of Insolvency notice in writing of his intention to dispute his indebtedness, he will be deemed to admit that the amount set opposite his name in such list is due and owing by him to the debtor and will be settled on such list accordingly.

(3) A person included in such list who does not give notice of his intention to dispute his indebtedness within the time limited in that behalf shall be settled upon such list, and execution may issue against him and a bankruptcy notice under this Act may be served upon him for the amount set opposite his name in such list in the same way as if judgment had been entered up against him for such amount in favour of the Director General of Insolvency.

(4) A certificate by the Registrar that the person named therein has been settled upon such list as a debtor to the estate in the amount in such certificate specified shall be received as proof of the facts therein stated.

(5) A person settled upon such list in manner aforesaid may apply to the court in a summary way for leave to dispute his indebtedness or the amount thereof, and the court may if it thinks fit make such order for determining the question as may seem expedient upon the terms of such persons giving security for costs and either paying into court or giving security for the whole or such part of the alleged debt as under the circumstances may seem reasonable, and may stay all further proceedings.
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answered on Mar 27, 2010 at 22:56
by   Anonymous
edited Nov 22, 2016 at 01:30
 
Discharge of Bankrupt

Discharge of bankrupt by order of court
33. (1) A bankrupt may at any time after being adjudged bankrupt apply to the court for an order of discharge, and the court shall appoint a day for hearing the application.

(2) (Deleted by Act A827).

(3) On the hearing of the application the court shall take into consideration a report of the Director General of Insolvency as to the bankrupt’s conduct and affairs, including a report as to the bankrupt’s conduct during the proceedings under his bankruptcy, and may either grant or refuse an absolute order of discharge, or suspend the operation order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt, or with respect to his after-acquired property.

(4) In all cases where it is proved to the satisfaction of the court that the bankrupt has committed any offence under this Act or under any written law repealed by this Act or under section 421, 422, 423 or 424 of the Penal Code [Act 574] the court shall unless for special reasons it otherwise determines either refuse the discharge or suspend the operation of the order until a dividend of not less than fifty per centum has been paid to the creditors, and on proof of any of the facts mentioned in subsection (6) the court shall either—

(a) refuse the order; or

(b) suspend the operation of the order for a specified time; or

(c) suspend the operation of the order until a dividend of not less than fifty per centum has been paid to the creditors; or

(d) grant an order of discharge subject to such conditions as aforesaid.

The powers of suspending and attaching conditions to a bankrupt’s discharge may be exercised concurrently.

(5) If at any time after the expiration of two years from the date of any order made under this section the bankrupt satisfies the court that there is no reasonable probability of his being in a position to comply with the terms of such order, the court may modify the terms of the order or any subsequent order in such manner and upon such conditions as it thinks fit.

(6) The facts hereinbefore referred to are—
(a) that the bankrupt has omitted to keep such books of account as sufficiently disclose his business transactions and financial position within the three years immediately preceding his bankruptcy, or within such shorter period immediately preceding that event as the court deems reasonable in the circumstances;

(b) that the bankrupt has continued to trade after knowing or having reason to believe himself to be insolvent;

(c) that the bankrupt has contracted any debt provable in the bankruptcy without having at the time of contracting it any reasonable ground of expectation, proof whereof shall lie on him, of being able to pay it;

(d) that the bankrupt has failed to account satisfactorily for any loss of assets or for any deficiency of assets to meet his liabilities;

(e) that the bankrupt has brought on or contributed to his bankruptcy by rash and hazardous speculations or extravagance in living, or by recklessness, or gambling or want of reasonable care and attention to his business and affairs;

(f) that the bankrupt has delayed or put any of his creditors to unnecessary expense by a frivolous or vexatious defence to any action or other legal proceedings properly brought or instituted against him;

(g) that the bankrupt has brought on or contributed to his bankruptcy by incurring unjustifiable expense in bringing any frivolous or vexatious action;

(h) that the bankrupt has within three months preceding the date of the receiving order, when unable to pay his debts as they become due, given an undue preference to any of his creditors;

(i) that the bankrupt has within three months preceding the date of the receiving order incurred liabilities with a view to making his assets equal to an amount of fifty ringgit per centum of the amount of his unsecured liabilities;

(j) that the bankrupt has in Malaysia or elsewhere on any previous occasion been adjudged bankrupt or made a composition or arrangement with his creditors;

(k) that the bankrupt has been guilty of any fraud or fraudulent breach of trust;

(l) that the bankrupt has within three months immediately preceding the date of the receiving order sent goods out of Malaysia under circumstances which afford reasonable grounds for believing that the transaction was not a bona fide commercial transaction;

(m) that the bankrupt’s assets are not of a value equal to fifty ringgit per centum of the amount of his unsecured liabilities, unless he satisfies the court that the fact that the assets are not of a value equal to fifty ringgit per centum of his unsecured liabilities has arisen from circumstances for or in respect of which he cannot justly be held blameable.

(7) For the purposes of this section a bankrupt’s assets shall be deemed of a value equal to fifty ringgit per centum of the amount of his unsecured liabilities when the court is satisfied that the property of the bankrupt has realized or is likely to realize or with due care in realization might have realized an amount equal to fifty ringgit per centum of the amount of his unsecured liabilities and a report by the Director General of Insolvency shall be prima facie evidence of the amount of such liabilities.

(8) For the purposes of this section the report of the Director General of Insolvency shall be prima facie evidence of the statements therein contained.

(9) Notice of the appointment by the court of the day for hearing the application for discharge shall be published as prescribed and sent fourteen days at least before the day so appointed to each creditor who has proved, and the court shall hear the Director General of Insolvency, and may also hear any creditor. At the hearing the court may put such questions to the debtor and receive such evidence as it thinks fit.

(10) The court may, as one of the conditions referred to in this section, require the bankrupt to consent to judgment being entered against him by the Director General of Insolvency for any balance, or part of the balance, of the debts provable under the bankruptcy which is not satisfied at the date of his discharge; but in such case execution shall not be issued on the judgment without leave of the court, which leave may be given on proof that the bankrupt has since his discharge acquired property or income available for payment of his debts.

(11) (Deleted by Act A1035).

(12) For the purposes of this section the following presumptions shall be made—

(a) if at any time after the expiration of six months from the date of the adjudication the Director General of Insolvency reports to the court that the value of the assets which have been realized, together with the estimated value of the assets which are realizable, is insufficient to pay a dividend of fifty ringgit per centum on the debts proved in the bankruptcy, it shall be presumed, until the contrary is proved, that the bankrupt has continued to trade after knowing or having reason to believe himself to be insolvent;

(b) in determining whether a bankrupt was, or knew, or had reason to believe himself to be insolvent at any particular date, every debt owing to him by any person resident out of the jurisdiction, which debt had been at such date due for more than twelve months, shall be excluded from the computation of the value of the assets, and for the purpose of such computation shall be deemed not to be an asset;

(c) a bankrupt shall be deemed to have continued to trade after knowing or having reason to believe himself to be insolvent if, having continued to trade after he was in fact insolvent, he—

(i) is unable to satisfy the court that he had reasonable ground for believing himself to be solvent; or

(ii) fails without reasonable excuse, proof whereof shall lie on him, to produce a proper balance sheet for each of the three years immediately preceding the bankruptcy, every such balance sheet being made within a reasonable time after the expiration of the year to which it relates, and showing the true state of his affairs at the end of such year;

(d) any preference given by the bankrupt to any creditor within the three months immediately preceding the date of the receiving order shall, until the contrary is proved, be deemed to be undue.

Discharge of bankrupt by Certificate of Director General of Insolvency

33A. (1) The Director General of Insolvency may, in his discretion but subject to section 33B, issue a certificate discharging a bankrupt from bankruptcy.

(2) The Director General of Insolvency shall not issue a certificate discharging a bankrupt from bankruptcy under subsection (1) unless a period of five years has lapsed since the date the receiving order and the order by which he was adjudged bankrupt were made.

(3) Notice of every discharge under subsection (1) shall be given by the Director General of Insolvency to the Registrar and the Director General of Insolvency shall advertise the notice in a local newspaper as prescribed.

(4) The Director General of Insolvency shall, upon the application of any interested person, issue a copy of the certificate of discharge to the applicant upon payment of the prescribed fee.

Objection by creditor to discharge of bankrupt under section 33A
33B. (1) Before issuing a certificate of discharge under section 33A, the Director General of Insolvency shall serve on each creditor who has filed a proof of debt a notice of his intention to issue the certificate.

(2) A creditor who has been served with a notice under subsection (1) and who wishes to object to the issuance of a certificate discharging the bankrupt shall, within twenty-one days from the date of service of the notice, furnish a notice of the objection stating the grounds of his objection.

(3) A creditor who does not furnish a notice of his objection and the grounds of his objection in accordance with subsection (2) shall be deemed to have no objection to the discharge.

(4) A creditor who has furnished a notice of his objection and the grounds of his objection in accordance with subsection (2) may, within twenty-one days of being informed by the Director General of Insolvency that his objection has been rejected, make an application to the court for an order prohibiting the Director General of Insolvency from issuing a certificate of discharge.

(5) Every application under subsection (4) shall be served on the Director General of Insolvency and on the bankrupt and the court shall hear the Director General of Insolvency and the bankrupt before making an order on the application.

(6) On an application made under subsection (4), the court may, if it thinks it just and expedient—

(a) dismiss the application;
(b) make an order that for a period not exceeding two years a certificate of discharge shall not be issued by the Director General of Insolvency.

Fraudulent settlements
34. In either of the following cases:
(a) in the case of a settlement made before and in consideration of marriage where the settlor is not at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement; or

(b) in the case of any covenant or contract made in consideration of marriage for the future settlement on, or for the settlor’s wife or children of any money or property wherein he had not at the date of his marriage any estate or interest, not being money or property of or in right of his wife, if the settlor is adjudged bankrupt or compounds or arranges with his creditors, and it appears to the court that such settlement, covenant or contract was made in order to defeat or delay creditors, or was unjustifiable having regard to the state of the settlor’s affairs at the time when it was made, the court may refuse or suspend an order of discharge, or grant an order subject to conditions, or refuse to approve a composition or arrangement, as the case may be, in like manner as in cases where the debtor has been guilty of fraud.

Effect of discharge
35. (1) Subject to this section and any condition imposed by the court under section 33, where a bankrupt is discharged, the discharge shall release him from all his debts provable in the bankruptcy but shall have no effect—

(a) on the functions (so far as they remain to be carried out) of the Director General of Insolvency; or

(b) on the operation, for the purposes of the carrying out those functions, of the provisions of this Act.

(2) A discharge shall not release the bankrupt from—

(a) any debt, due to the Government of Malaysia or of any State;

(b) any debt with which the bankrupt may be chargeable at the suit of—

(i) the Government of Malaysia or of any State or any other person for any offence under any written law relating to any branch of the public revenue; or

(ii) any other public officer on a bail bond entered into for the appearance of any person prosecuted for any such offence; or

(c) any provable debt which he incurred in respect of, or forbearance in respect of which was secured by means of, any fraud or fraudulent breach of trust to which he
was party; or

(d) any liability in respect of a fine imposed for an offence.

(3) A bankrupt may be discharged from any of the debts excepted under subsection (2) by a certificate in writing of the Minister of Finance in the case of a debt due to the Government of Malaysia or the Menteri Besar or Chief Minister of any State in the case of a debt due to the State or of the Attorney General in the case of such bail bond as is referred to in subsection (2).

(4) An order of discharge or a certificate of discharge shall be conclusive evidence of the bankruptcy and of the validity of the proceedings therein, and in any proceedings that are instituted against a bankrupt who has obtained an order of discharge or a certificate of discharge in respect of any debt from which he is released by the order or certificate the bankrupt may plead that the cause of action occurred before his discharge.

(5) A discharge shall not release any person other than the bankrupt from any liability (whether as partner or co-trustee of the bankrupt or otherwise) from which the bankrupt is released by the discharge, or from any liability as surety for the bankrupt or as a person in nature of such a surety.

Discharged bankrupt to give assistance
35A. A discharged bankrupt shall, notwithstanding his discharge, give such assistance as the Director General of Insolvency requires in the realization and distribution of such of his property as is vested in the Director General of Insolvency, and if the discharged bankrupt fails to do so—

(a) he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding six months
or to both; and

(b) the court may, if it thinks fit, revoke his discharge, but without prejudice to the validity of any sale, disposition or payment duly made, or thing duly done subsequent to the discharge, but before its revocation.
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answered on Apr 8, 2010 at 17:13
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PART II

DISQUALIFICATION AND DISABILITIES OF BANKRUPT

Disqualification of bankrupt
36. (1) Where a debtor is adjudged bankrupt he shall subject to this Act, be disqualified for—

(a) being appointed or acting as a Sessions Court Judge or Magistrate;

(b) being nominated or elected to or holding or exercising the office of Councillor of a local authority.

(2) The disqualifications to which a bankrupt is subject under this section shall be removed and cease if and when—

(a) the adjudication of bankruptcy against him is annulled; or

(b) he obtains from the court his discharge with a certificate to the effect that his bankruptcy was caused by misfortune without any misconduct on his part.

(3) The court may grant or withhold such certificate as it thinks fit, but any refusal of such certificate shall be subject to appeal.

Vacating offices by bankruptcy
37. If a person is adjudged bankrupt whilst holding the office of a Sessions Court Judge, Magistrate, or a Councillor of a local authority, his office shall thereupon become vacant.

Undischarged Bankrupt

Consequences of refusal of discharge
38. (1) Where a bankrupt has not obtained his discharge—
(a) the bankrupt shall be incompetent to maintain any action (other than an action for damages in respect of an injury to his person) without the previous sanction of the Director General of Insolvency;

(b) the bankrupt shall once in every six months render to the Director General of Insolvency an account of all moneys and property which have come to his hands for his own use during the preceding six months, and shall pay and make over to the Director General of Insolvency so much of the same moneys and property as have not been expended in the necessary expenses of maintenance of himself and his family;

(ba) notwithstanding paragraph (b), the bankrupt shall immediately report to the Director General of Insolvency the receipt of any moneys, property or proceeds in any form from property the value of which exceeds five hundred ringgit and which moneys, property or proceeds do not form part of his usual income and the bankrupt shall, as soon as may be required by the Director General of Insolvency, pay or make over such moneys, property or proceeds to the Director General of Insolvency;

(bb) the bankrupt shall immediately inform the Director General of Insolvency if there is any change of his home address; (c) the bankrupt shall not leave Malaysia without the previous permission of the Director General of Insolvency or of the court;

(d) the bankrupt shall not, except with the previous permission of the Director General of Insolvency or of the court, enter into or carry on any business either alone or in partnership, or become a director of any company or otherwise directly or indirectly take part in the management of any company;

(e) the bankrupt shall not, except with the previous permission of the Director General of Insolvency or of the court, engage in the management or control of any business carried on by or on behalf of, or be in the employment of, any of the following persons, namely—

(i) his spouse;
(ii) a lineal ancestor or a lineal descendant of his or a spouse of such ancestor or descendant; or
(iii) a sibling of his or a spouse of such sibling.
(1A) In granting permission under paragraph (c), (d) or (e) of subsection (1), the Director General of Insolvency or the court may impose such conditions as he or it may think fit.

(2) A bankrupt who makes default in performing or observing this section or a condition imposed pursuant to subsection (1A) shall be deemed guilty of a contempt of court, and shall be punished accordingly on the application of the Director General of Insolvency.

Power to prevent bankrupt from leaving Malaysia
38A. (1) The Director General of Insolvency may by notice issued to any immigration officer request that a bankrupt be prevented from leaving Malaysia.

(2) Subject to any order issued or made under any written law relating to banishment or immigration, an immigration officer who receives a notice under subsection (1) in respect of any bankrupt shall take or cause to be taken all such measures as may be necessary to give effect to it.

(3) An immigration officer shall be empowered to seize and deliver to the Director General of Insolvency any passport or travel document belonging to any bankrupt who is attempting to leave Malaysia without the previous permission of the Director General of Insolvency.

(4) For the purposes of this section, “immigration officer” means any person appointed under section 3 of the Immigration Act 1959 [Act 155].

List of undischarged bankrupts to be kept
39. (1) The Director General of Insolvency shall keep and maintain a list of undischarged bankrupts.

(2) The list under subsection (1) shall be available, at all reasonable times, for inspection by any member of the public at any office of the Director General of Insolvency.

(3) The name of a deceased bankrupt shall be removed from the list five years after the end of the administration of his estate in bankruptcy.

(4) The Director General of Insolvency may issue a copy of the list to any person upon request by that person and upon payment of the prescribed fee.

PART III

ADMINISTRATION OF PROPERTY

Proof of Debts

Description of debts provable in bankruptcy
40. (1) Demands in the nature of unliquidated damages arising otherwise than by reason of a contract, promise or breach of trust shall not be provable in bankruptcy.

(2) A person having notice of any act of bankruptcy available against the debtor shall not prove under the receiving order for any debt or liability contracted by the debtor subsequent to the date of his so having notice.

(3) Save as provided in subsections (1) and (2) all debts and liabilities present or future, certain or contingent, to which the debtor is subject at the date of the receiving order, or to which he may become subject before his discharge by reason of any obligation incurred before the date of the receiving order shall be deemed to be debts provable in bankruptcy.

(4) An estimate shall be made by the Director General of Insolvency of the value of any debt or liability provable under subsection (3) which, by reason of its being subject to any contingency or contingencies, or for any other reason, does not bear a certain value.

(5) Any person aggrieved by any such estimate may appeal to the court.

(6) If in the opinion of the court the value of the debt or liability is incapable of being fairly estimated the court may make an order to that effect, and thereupon the debt or liability shall for the purposes of this Act be deemed to be debt not provable in bankruptcy.

(7) If in the opinion of the court the value of the debt or liability is capable of being fairly estimated, the court may assess the same and may give all necessary directions for this purpose, and the amount of the value when assessed shall be deemed to be a debt provable in bankruptcy.

Mutual credit and set-off
41. (1) Where there have been mutual credits, mutual debts, or other mutual dealings between a debtor against whom a receiving order is made under this Act and any other person proving or claiming to prove a debt under such order, an account shall be taken of what is due from the one party to the other in respect of such mutual dealings, and the sum due from the one party shall be set-off against any sum due from the other party, and the balance of the account and no more shall be claimed or paid on either side respectively.

(2) A person shall not be entitled under this section to claim the benefit of any set-off against the property of a debtor in any case where he had at the time of giving credit to the debtor notice of an act of bankruptcy committed by the debtor and available against him.

Rules as to proof of debts
42. The rules in Schedule C shall be observed with respect to the mode of proving debts, the right of proof by secured and other creditors, the admission and rejection of proofs and other matters.

Priority of debts
43. (1) In the distribution of the property of a bankrupt there shall be paid in priority to all other debts—

(a) all local rates and land tax due from the bankrupt at the date of the receiving order and having become due and payable within twelve months next before that time;

(b) income tax and other assessed taxes assessed on the bankrupt up to the 31st day of December next before the date of the receiving order and not exceeding in the whole one year’s assessment;

(c) all wages or salary of any clerk, servant, labourer or workman not exceeding one thousand ringgit for each whether payable for time or piece work or whether or not payable wholly or in part by way of commission in respect of services rendered to the bankrupt during the period of five months next before the date of the receiving order or the date of the termination of his service if the latter occurs within twelve months of and precedes the date of the receiving order:

Provided that, where any clerk, servant, labourer or workman has entered into a contract for the payment of his wages or any part thereof in a lump sum at the end of the year of hiring, the priority under this section shall extend to the whole of such sum, or a part thereof, as the court may decide to be due under the contract, proportionate to the time of service up to the date of the receiving order;

(d) all amounts due in respect of contributions payable during the twelve months before the date of the receiving order by the bankrupt as the employer of any person under any law relating to provident funds; and

(e) all amounts due in respect of workmen’s compensation under any law relating to workmen’s compensation accrued before the date of the receiving order.

(2) The foregoing debts shall rank equally between themselves, and shall be paid in full unless the property of the bankrupt is insufficient to meet them, in which case they shall abate in equal proportions between themselves.

(3) In the case of partners the joint estate shall be applicable in the first instance in payment of their joint debts, and the separate estate of each partner shall be applicable in the first instance in payment of his separate debts. If there is a surplus of the separate estates it shall be dealt with as part of the joint estate. If there is a surplus of the joint estate it shall be dealt with as part of the respective separate estates in proportion to the right and interest of each partner in the joint estate.

(4) Subject to this Act all debts proved in the bankruptcy shall be paid pari passu.

(5) If there is any surplus after payment of the foregoing debts, the surplus shall not be applied in any payment of interest after the date of the receiving order to any creditor on any debt proved in the bankruptcy, except for the payment of interest to a secured creditor under subsection 8(2A).

Interest on debts
(6) Where a debt has been proved upon a debtor’s estate and such debt includes interest or any pecuniary consideration in lieu of interest, such interest or consideration shall for the purposes of dividend be calculated at a rate not exceeding six per centum per annum up to the date the receiving order is granted by the court.

(7) This section shall have effect subject to any written law relating to partnership in force in any part of Malaysia.

(8) Where an interim receiver has been appointed before the making of the receiving order the date of such appointment shall for the purposes of this section be deemed to be the date of the receiving order.

Preferential claim in case of apprenticeship and in respect of passage money
44. (1) Where at the time of the presentation of the bankruptcy petition any person is apprenticed or is an articled clerk to the bankrupt, the adjudication of bankruptcy shall, if either the bankrupt or apprentice or clerk gives notice in writing to the Director General of Insolvency to that effect, be a complete discharge of the indenture of apprenticeship or articles of agreement.

(2) If any money has been paid by or on behalf of the apprentice or clerk to the bankrupt as a fee, the Director General of Insolvency may, on the application of the apprentice or clerk or of some person on his behalf, pay such sum as the Director General of Insolvency, subject to an appeal to the court, thinks reasonable out of the bankrupt’s property to or for the use of the apprentice or clerk, regard being had to the amount paid by him or on his behalf and to the time during which he served with the bankrupt under the indenture or articles before the commencement of the bankruptcy and to the other circumstances of the case.

(3) Where it appears expedient to the Director General of Insolvency he may, on the application of any apprentice or articled clerk to the bankrupt, or of some person on his behalf, instead of acting under subsection (1) or (2) transfer the indenture of apprenticeship or articles of agreement to some other person.

(4) Where at the date of the receiving order any person is in the employment of the bankrupt who came to Malaysia for the purpose of entering into such employment either—

(a) under any contract to serve the bankrupt for a period of not less than one year, which period has not elapsed three months before the date of such order; or

(b) under a contract either absolutely or conditionally that such person shall be provided with a passage to another country on the determination of his employment, and such person has not obtained other employment and is desirous of leaving Malaysia, the court may, if it seems just and expedient under all the circumstances of the case, direct the Director General of Insolvency to provide for such person such passage as he is entitled to under the contract, or if he is not so entitled then a suitable passage to the country whence he came for the purpose of entering into such employment, or in either case any other not more costly passage which such person may desire.
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answered on Aug 12, 2011 at 19:15
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edited Nov 22, 2016 at 01:14
 
Power to landlord to distrain for rent
45. (1) Subject to any law relating to the recovery of rent by way of distress, the landlord or other person to whom any rent is due from the bankrupt may, at any time either before or after the commencement of the bankruptcy, distrain upon the goods or effects of the bankrupt for the rent due to him from the bankrupt with this limitation, that if such distress for rent is levied after the commencement of the bankruptcy it shall be available only for three months’ rent accrued due prior to the date of the order of adjudication, but the landlord or other person to whom the rent is due from the bankrupt may prove under the bankruptcy for the surplus due for which the distress may not have been available.

(2) This section shall with the necessary modifications apply in the case of an order for the administration of the estate of a deceased person who died insolvent and for the purposes of this section the term “order of adjudication” shall be deemed to include an order for such administration.

Postponement of husband’s or wife’s claims
46. (1) Where a married woman has been adjudged bankrupt her husband shall not be entitled to claim any dividend as a creditor in respect of any money or other property lent or entrusted by him to his wife for the purposes of her trade or business until all claims of the other creditors of his wife for valuable consideration in money or money’s worth have been satisfied.

(2) Where the husband of a married woman has been adjudged bankrupt any money or other property of such woman lent or entrusted by her to her husband for the purpose of any trade or business carried on by him or otherwise shall be treated as assets of his estate and the wife shall not be entitled to claim any dividend as a creditor in respect of any such money or other property until all claims of the other creditors of her husband for valuable consideration in money or money’s worth have been satisfied.

Property Available for Payment of Debts

Relation back of Director General of Insolvency’s title
47. (1) The bankruptcy of a debtor, whether the same takes place on the debtor’s own petition or upon that of a creditor, shall be deemed to have relation back to and commence at the time of the act of bankruptcy being committed on which a receiving order is made against him, or if the bankrupt is proved to have committed more acts of bankruptcy than one to have relation back to and to commence at the time of the first of the acts of bankruptcy proved to have been committed by the bankrupt within six months next preceding the date of the presentation of the bankruptcy petition.

(2) No bankruptcy petition, receiving order or adjudication shall be rendered invalid by reason of any act of bankruptcy anterior to the debt of the petitioning creditor.

Description of bankrupt’s property divisible amongst creditors
48. (1) The property of the bankrupt divisible among his creditors, and in this Act referred to as the property of the bankrupt—

(a) shall not comprise the following:
(i) property held by the bankrupt on trust for any other person;
(ii) the tools, if any, of his trade and the necessary wearing apparel and bedding and other like necessaries of himself, his wife and children to a value inclusive of tools and apparel and the other things aforesaid not exceeding *five thousand ringgit in the whole;

(b) shall comprise the following:
(i) all such property as belongs to or is vested in the bankrupt at the commencement of the bankruptcy or is acquired by or devolves on him before his discharge;
(ii) the capacity to exercise and to take proceedings for exercising all such powers in or over or in respect of property as might have been exercised by the bankrupt for his own benefit at the commencement of his bankruptcy or before his discharge; and
(iii) subject to the law for the time being in force relating to bills of sale, all goods being at the commencement of the bankruptcy in the possession, order or disposition of the bankrupt by the consent and permission of the true owner under such circumstances that he is the reputed owner thereof.

(2) Things in action other than debts due or growing due to the bankrupt in the course of his trade or business shall not be deemed goods within the meaning of this section.

Provisions as to second bankruptcy
49. (1) Where a second or subsequent receiving order is made against a bankrupt, or where an order is made for the administration in bankruptcy of the estate of a deceased bankrupt, then for the purposes of any proceedings consequent upon any such order, the Director General of Insolvency shall be deemed to be a creditor in respect of any unsatisfied balance of the debts provable in the last preceding bankruptcy against the property of the bankrupt in the subsequent bankruptcy.

(2) In the event of a second or subsequent receiving order made against a bankrupt being followed by an order adjudging him bankrupt, or in the event of an order being made for the administering in bankruptcy of the estate of a deceased bankrupt, any property acquired by him since he was last adjudged bankrupt, which at the date when the subsequent petition was presented had not been distributed amongst the creditors in such last preceding bankruptcy, shall (subject to any disposition thereof made by the Director General of Insolvency in that bankruptcy, without knowledge of the presentation of the subsequent petition) vest in the Director General of Insolvency on account of the subsequent bankruptcy or administration in bankruptcy as the case may be.

*NOTE—Previously “five hundred ringgit”–see the Bankruptcy (Amendment) Act 1992 [Act A827].

(3) Where the Director General of Insolvency in any bankruptcy receives notice of a subsequent petition in bankruptcy against the bankrupt or after his decease of a petition for the administration of his estate in bankruptcy, the Director General of Insolvency shall hold any property then in his possession which has been acquired by the bankrupt since he was adjudged bankrupt until the subsequent petition has been disposed of, and, if on the subsequent petition an order of adjudication or an order for the administration of the estate in bankruptcy is made, he shall hold all such property or the proceeds thereof (after deducting his costs and expenses) to the account of the subsequent bankruptcy or administration in bankruptcy, as the case may be.

Effect of Bankruptcy on Antecedent Transactions

Restriction of rights of creditor under execution or attachment
50. (1) Where a creditor has issued execution against the goods or lands of a debtor, or has attached any debt due, or property belonging to him, he shall not be entitled to retain the benefit of the execution or attachment against the Director General of Insolvency unless he has completed the execution or attachment before the date of the receiving order and before notice of the presentation of any bankruptcy petition by or against the debtor, or of the commission of any available act of bankruptcy by the debtor.

(2) For the purposes of this Act—
(a) an execution against goods or land is completed by seizure and sale, or in the case of an equitable interest in land by the appointment of a receiver;

(b) an attachment of a debt is completed by receipt of the debt;

(c) an attachment of property is completed by the sale of such property and the satisfaction out of the proceeds of such sale of the judgment in execution of which the attachment was made.

Property taken in execution
51. (1) Where any property of a debtor is taken in execution and before the sale or realization thereof, or the delivery to the execution creditor of any moneys seized or paid in order to avoid sale, notice is served on the Court that a receiving order has been made against the debtor, the Court shall deliver the property or the possession thereof and any such moneys to the Director General of Insolvency, but the costs of and incidental to the execution shall be a first charge on such property or moneys, and the Director General of Insolvency may sell the property or an adequate part thereof for the purpose of satisfying the charge.

Duty as to money received on seizure or subsequently thereto
(2) Where an order of execution has been made in respect of a judgment for a sum exceeding one hundred ringgit the Court shall hold all moneys coming to its hands under such writ of seizure and sale for fourteen days from the receipt thereof, and if within that time notice is served on it of a bankruptcy petition  having been presented against or by the debtor and a receiving order is made against the debtor thereon or on any other petition of which the Court has notice, the Court shall deduct the costs of and incidental to the execution and pay the balance to the Director General of Insolvency, who shall be entitled to retain the same as against the execution creditor.

Execution levied by seizure and sale not invalid by reason of seizure being an act of bankruptcy
(3) An execution levied by seizure and sale on property of a debtor is not invalid by reason of the seizure being an act of bankruptcy, and a person who purchases the property in good faith under a sale by the Court out of which such execution has issued shall in all cases acquire a good title to it against the Director General of Insolvency.

(4) Where the act of bankruptcy upon which a bankruptcy petition is founded is the seizure of any property under a judgment, and the debtor has had a receiving order made against him on such petition, then the costs of the judgment creditor incurred by him in obtaining such judgment during the thirty days next preceding the taking of the property in execution shall be payable out of the assets of the bankrupt in the same manner and in the same order of priority as the costs of the petitioning creditor.

(5) For the purposes of this section a notice served on the Registrar or the Magistrate of a Court shall be deemed to have been served on the Court.

Avoidance of voluntary settlement
52. (1) Any settlement of property, not being a settlement made before and in consideration of marriage or a settlement made in favour of a purchaser or incumbrancer in good faith and for valuable consideration, or a settlement made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall, if the settlor becomes bankrupt within two years after the date of the settlement, be absolutely void against the Director General of Insolvency, and shall, if the settlor becomes bankrupt at any subsequent time within five years after the date of the settlement, be void against the Director General of Insolvency, unless the parties claiming under the settlement can prove that the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement, and that the interest of the settlor in such property had passed to the trustee of such settlement on the execution
thereof.

(2) Any covenant or contract made in consideration of marriage for the future settlement on or for the settlor’s wife or children of any money or property wherein he had not at the date of his marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property of or in right of his wife, shall, on his becoming bankrupt, before the property or money has been actually transferred or paid pursuant to the contract or covenant, be void against the Director General of Insolvency.

(3) For the purposes of this section “settlement” includes any conveyance or transfer of property, bill, bond, note, security for money or covenant for the payment of money and any gift of money.

(4) For the purposes of this section a settlor who dies insolvent shall be deemed to have become bankrupt at the date of his death.

Avoidance of preferences in certain cases
53. (1) Every conveyance or transfer of property or charge thereon made, every payment made, every obligation incurred and every judicial proceeding taken or suffered by any person unable to pay his debts, as they become due, from his own money in favour of any creditor or any person in trust for any creditor shall be deemed to have given such creditor a preference over other creditors if the person making, taking, paying or suffering the same is adjudged bankrupt on a bankruptcy petition presented within six months after the date of making, taking, paying or suffering the same and every such act shall be deemed fraudulent and void as against the Director General of Insolvency.

(2) This section shall not affect the rights of any person making title in good faith and for valuable consideration through or under a creditor of the bankrupt.

(3) For the purposes of this section “creditor” includes a surety or guarantor for the debt due to that creditor.

Avoidance of assignment of book debts
53A. (1) Where a person engaged in any trade or business makes an assignment of his existing or future book debts or any class or part thereof and subsequently becomes bankrupt, the assignment shall be void as against the Director General of Insolvency in respect of any book debts that had not been paid at the date of an available act of bankruptcy.

(2) This section shall not apply to an assignment of book debts
registered pursuant to any written law if the assignment is valid
under that law.

(3) Nothing in this section shall render void any assignment of book debts due at the date of the assignment from specified debtors or of book debts included in the transfer of a business, such transfer being made bona fide and for valuable consideration.

(4) For the purposes of this section “assignment” includes assignment by way of security or other charge on book debts.

Property or proceeds therefrom deemed to be property of Director General of Insolvency
53B. (1) Where a person has acquired property of the bankrupt under a transaction that is void or under a voidable transaction (that is subsequently set aside) and sold, disposed of, realized or collected the property or any part of it, the money or other proceeds from any such dealing, whether further disposed of or not, shall be deemed to be the property of the Director General of Insolvency.

(2) The Director General of Insolvency may recover the property referred to in subsection (1) or its value or the money or other proceeds therefrom from the person who acquired it from the bankrupt or from any other person to whom the person may have sold, resold or transferred the property or paid over the money or other proceeds therefrom as fully and effectually as the Director General of Insolvency could have recovered the property if it had not been so sold, transferred, disposed of, realized or collected.

(3) Notwithstanding subsections (1) and (2), where any person, (not being the person who acquired the property from bankrupt) to whom the property was sold, resold or otherwise disposed of, had paid or given therefor valuable consideration and acted in good faith such person shall not be subject to the operation of this section and the Director General of Insolvency’s recourse for recovery of the consideration so paid or given or its value shall be solely against the person who entered into the transaction with the bankrupt.

(4) Where the consideration payable for or upon any sale or resale of such property or any part thereof remains unsatisfied the right of the Director General of Insolvency shall be subrogated for that of the vendor to compel payment or satisfaction.
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answered on Aug 12, 2011 at 19:51
by   Anonymous
edited Nov 22, 2016 at 01:04
 
Fair market value may be fixed on review
53C. (1) Where a person who has sold, purchased, leased, hired, supplied or received property or services, as the case may be becomes bankrupt within twelve months of that transaction, the court may, upon the application of the Director General of Insolvency, review that transaction and inquire whether the bankrupt gave or received fair market value in consideration for the property or services at the time of that transaction.

(2) Where the court finds that the consideration given or received by the bankrupt in the transaction under review was conspicuously in excess of or conspicuously lower than the fair market value of the property or services at the time of the transaction, the court may give judgment in favour of the Director General of Insolvency against the other party to the transaction or against any other person who was privy to the transaction with the bankrupt or against all such persons and such judgment shall be for the difference between the value of the consideration given or received by the bankrupt and the fair market value of the property or services at the time of the transaction as determined by the court in accordance with subsection (3).

(3) In making an application under this section, the Director General of Insolvency shall state what in his opinion was the fair market value of the property or services at the time of the transaction and what in his opinion was the value of the consideration given or received by the bankrupt in the transaction, and the values on which the court makes any finding pursuant to this section shall be the values so stated unless other values are proven.

Protection of bona fide transactions without notice
54. (1) Subject to the foregoing provisions of this Act with respect to the effect of bankruptcy on an execution or attachment, and with respect to the avoidance of certain settlements and preferences, nothing in this Act shall invalidate in the case of a bankruptcy—
(a) any payment by the bankrupt to any of his creditors;
(b) any payment or delivery to the bankrupt;
(c) any conveyance or assignment by the bankrupt for valuable consideration;

(d) any contract, dealing or transaction by or with the bankrupt for valuable consideration:

if—

(i) the payment, delivery, conveyance, assignment, contract, dealing or transaction, as the case may be, takes place before the date of the receiving order; and

(ii) the person other than the debtor to, by, or with whom the payment, delivery, conveyance, assignment, contract, dealing or transaction was made, executed or entered into has not, at the time of the payment, delivery, conveyance, assignment, contract, dealing or transaction, notice of any available act of bankruptcy committed by the bankrupt before that time.

(2) For the purpose of this section “valuable consideration” means a consideration of fair and reasonable money value in relation to—

(a) the value of the property conveyed, assigned or transferred; or

(b) the known or reasonably anticipated benefits of the contract, dealing or transaction.

(3) For the purposes of this section “notice” includes knowledge of an act of bankruptcy or of any bankruptcy proceedings or of facts sufficient to indicate to the person dealing with the debtor the commission of an act of bankruptcy.

Realization of Property

Possession of property by assignee
55. (1) The Director General of Insolvency shall after the adjudication take possession of the deeds, books and documents of the bankrupt and all other parts of his property capable of manual delivery.

(2) The Director General of Insolvency shall, in relation to and for the purpose of acquiring or retaining possession of the property of the bankrupt, be in the same position as if he were a receiver of the property appointed by the court, and the court may on his application enforce such acquisition or retention accordingly.

(3) Where any part of the property of the bankrupt consists of stock, shares in ships, shares or any other property transferable in the books of any company, office or person, the Director General of Insolvency may exercise the right to transfer the property to the same extent as the bankrupt might have exercised it if he had not become bankrupt.

(4) Where any part of the property of the bankrupt consists of things in action, such things shall be deemed to have been duly assigned to the Director General of Insolvency.

(5) Any treasurer or other officer or any banker, attorney or agent of a bankrupt shall pay and deliver to the Director General of Insolvency all money and securities in his possession or power as such officer, banker, attorney or agent which he is not by law entitled to retain as against the bankrupt or the Director General of Insolvency. If he does not, he shall be guilty of a contempt of court, and may be punished accordingly on the application of the Director General of Insolvency.

Seizure of property of bankrupt
56. (1) Any person acting under warrant of the court may seize any part of the property of a bankrupt in the custody or possession of the bankrupt or of any other person, and with a view to such seizure may break open any house, building or room of the bankrupt where the bankrupt is supposed to be, or any building or receptacle of the bankrupt where any of his property is supposed to be.

(2) Where the court is satisfied that there is reason to believe that property of the bankrupt is concealed in a house or place not belonging to him, the court may if it thinks fit grant a search warrant to any police officer or officer of the court, who may execute it, according to its tenor, in the same manner and subject to the same privileges in and subject to which a search warrant for property supposed to be stolen may be executed according to law.

Appropriation of portion of pay or salary to creditors
57. (1) Where the bankrupt is an officer of the Armed Forces or a public officer or otherwise employed or engaged in the civil service of any government in Malaysia the Director General of Insolvency shall receive for distribution amongst the creditors so much of the bankrupt’s pay or salary as the court, on the application of the Director General of Insolvency, directs.

(2) (Deleted by Act A364).

(3) Where a bankrupt is in the receipt of a salary or income other than as aforesaid, or is entitled to any half-pay or pension or compensation granted by any Government of Malaysia the court, on the application of the Director General of Insolvency, shall, subject to any written law for the time being regulating the grant and payment of pensions, from time to time make such order as it thinks just for the payment of the salary, income, half-pay, pension or compensation or of any part thereof to the Director General of Insolvency, to be applied by him in such manner as the court directs.

(4) Nothing in this section shall take away or abridge any power of any such Government to dismiss a bankrupt or to declare the pension, half-pay or compensation of any bankrupt to be forfeited. Vesting and transfer of property

58. (1) The property of the bankrupt shall pass from Director General of Insolvency to Director General of Insolvency, and shall vest in the Director General of Insolvency for the time being during his continuance in office, without any conveyance, assignment or transfer whatever.

(2) All dealings with property which has been, is, or shall be vested under this Act in the Director General of Insolvency for the time being, and all deeds, agreements, instruments, acts and things necessary or expedient for the purposes of such dealings as aforesaid, shall, if the same have been or shall be transacted, made, entered into, signed, perfected or done by an officer appointed for the time being under section 70 to act for or in the place of the Director General of Insolvency, be deemed to have been and shall be of the same force and effect and as valid for all intents and purposes as the same would have been or would be if transacted, made, entered into, signed, perfected or done by the Director General of Insolvency personally.

Disclaimer of onerous property
59. (1) Where any part of the property of the bankrupt consists of land of any tenure burdened with onerous covenants, of shares or stock in companies, of unprofitable contracts or of any other property that is unsaleable or not readily saleable by reason of its binding the possessor thereof to the performance of any onerous act or to the payment of any sum of money, the Director General of Insolvency, notwithstanding that he has endeavoured to sell or has taken possession of the property or exercised any act of ownership in relation thereto, but subject to this section, may, by writing signed by him, at any time disclaim the property.

(2) The disclaimer shall operate to determine as from the date of disclaimer the rights, interests and liabilities of the bankrupt and his property in or in respect of the property disclaimed, and shall also discharge the Director General of Insolvency from all personal liability in respect of the property disclaimed as from the date when the property vested in him, but shall not, except so far as is necessary for the purpose of releasing the bankrupt and his property and the Director General of Insolvency from liability, affect the rights or liabilities of any other person.

(3) The Director General of Insolvency shall not be entitled to disclaim a lease without the leave of the court, except in any cases which may be prescribed or where all persons interested in the property consent to such disclaimer, and the court may, before or on granting such leave, require such notices to be given to persons interested and impose such terms as a condition of granting leave and make such orders with respect to fixtures, tenant’s improvements and other matters arising out of the tenancy as the court thinks just.

(4) The Director General of Insolvency shall not be entitled to disclaim any property, in pursuance of this section, in any case where an application in writing has been made to him by any person interested in the property, requiring him to decide whether he will disclaim or not, and he has for a period of twenty-eight days after the receipt of the application, or such extended period as is allowed by the court, declined or neglected to give notice whether he disclaims the property or not; and in the case of a contract if the Director General of Insolvency, after the application, does not within the said period or extended period disclaim the contract, he shall be deemed to have adopted it.

(5) The court may, on the application of any person who is, as against the Director General of Insolvency, entitled to the benefit or subject to the burden of a contract made with the bankrupt, make an order rescinding the contract on such terms as to payment by or to either party of damages for the non-performance of the contract or otherwise as to the court seems equitable; and any damages payable under the order to any such person may be proved by him as a debt under the bankruptcy.
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answered on Aug 13, 2011 at 21:38
by   Anonymous
edited Nov 22, 2016 at 00:56
 
(6) The court may, on application by any person either claiming any interest in any disclaimed property or under any liability not discharged by this Act in respect of any disclaimed property, and on hearing such persons as it thinks fit, make an order for the vesting of the property in or delivery thereof to any person entitled thereto or to whom it seems just that the same should be delivered by way of compensation for the liability or a trustee for him and on such terms as the court thinks just; and on any such vesting order being made, the property comprised therein shall vest accordingly in the person therein named in that behalf, without any conveyance or assignment for the purpose.

(7) Where the property disclaimed is of a leasehold nature the court shall not make a vesting order in favour of any person claiming under the bankrupt, whether as under-lessee or as mortgagee by demise, except upon the terms of making such person subject to the same liabilities and obligations as the bankrupt was subject to under the lease in respect of the property at the date when the bankruptcy petition was filed, and any mortgagee or under-lessee declining to accept a vesting order upon such terms shall be excluded from all interest in and security upon the property, and if there is no person claiming under the bankrupt who is willing to accept an order upon such terms, the court shall have power to vest the bankrupt’s estate and interest in the property in any person liable, either personally or in a representative character, and either alone or jointly with the bankrupt, to perform the lessee’s covenants in such lease, freed and discharged from all estates, incumbrances and interests created therein by the bankrupt.

(8) Any person injured by the operation of a disclaimer under this section shall be deemed to be a creditor of the bankrupt to the extent of the injury, and may accordingly prove the same as a debt under the bankruptcy.

Powers of Director General of Insolvency to deal with property
60. Subject to this Act, the Director General of Insolvency may—
(a) sell all or any part of the property of the bankrupt, including the goodwill of his business, if any, and the book-debts due or growing due to him, by public auction or private contract, with power to transfer the whole thereof to any person or company or to sell the same in parcels;

(b) give receipts for any money received by him, which receipts shall effectually discharge the person paying the money from all responsibility in respect of the application thereof;

(c) prove, rank, claim, and draw a dividend in respect of any debt due to the bankrupt;

(d) exercise any powers, the capacity to exercise which is vested in the Director General of Insolvency under this Act, and execute any powers of attorney, deeds and other instruments for the purpose of carrying into effect this Act;

(e) deal with any property to which the bankrupt is beneficially entitled sui juris, or other owner of an estate of inheritance less than an estate in perpetuity, in the same manner as the bankrupt might have dealt with it; and any such dealing with any property to which the bankrupt is before his discharge so entitled shall, although the bankrupt is dead at the time of that dealing, be as valid and have the same operation as though the bankrupt were then alive.

Powers exercisable by Director General of Insolvency subject to orders of court
61. The Director General of Insolvency, subject to any general
or special orders of the court, may—

(a) carry on the business of the bankrupt so far as is necessary for the beneficial winding up of the same;

(b) bring, institute or defend any action or other legal proceeding relating to the property of the bankrupt;

(c) employ, with the permission in writing of the Attorney General, a solicitor to take any proceedings or do any business;

(d) accept, as the consideration for the sale of any property of the bankrupt, a sum of money payable at a future time, subject to such stipulations as to security and otherwise as he thinks fit;

(e) mortgage, charge or pledge any part of the property of the bankrupt for the purpose of raising money for the payment of his debts;

(f) refer any dispute to arbitration, compromise all debts, claims and liabilities, whether present or future, certain or contingent, liquidated or unliquidated, subsisting or supposed to subsist, between the bankrupt and any person who may have incurred any liability to the bankrupt, on the receipt of such sums payable at such times, and generally on such terms as are agreed on;

(g) make such compromise or other arrangement as is thought expedient with creditors or persons claiming to be creditors in respect of any debts provable under the bankruptcy;

(h) make such compromise, or other arrangement, as is thought expedient, with respect to any claim arising out of or incidental to the property of the bankrupt, made or capable of being made on the Director General of Insolvency by any person or by the Director General of Insolvency on any person;

(i) divide in its existing form, amongst the creditors according to its estimated value, any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold.

Distribution of Property

Declaration and distribution of dividends
62. (1) Subject to the retention of such sums as may be necessary for the costs of administration or otherwise, the Director General of Insolvency shall, with all convenient speed, declare and distribute dividends amongst the creditors who have proved their debts.

(2) The first dividend, if any, shall be declared and distributed within twelve months after the adjudication, unless the Director General of Insolvency, for reasons to be given to creditors, decides to postpone the declaration to a later date.

(3) Subsequent dividends shall, in the absence of sufficient reason to the contrary, be declared and distributed at intervals of not more than twelve months.

(4) Before declaring a dividend the Director General of Insolvency shall cause notice of his intention to do so to be gazetted and shall also send reasonable notice thereof to each creditor mentioned in the bankrupt’s statement who has not proved his debt.

(5) When the Director General of Insolvency has declared a dividend he shall send to each creditor who has proved a notice showing the amount of the dividend, and when, and how it is payable.

(6) No dividend shall be paid to any creditor which does not amount to five ringgit.

(7) Where the Director General of Insolvency makes any payment of dividends upon production of a certificate of identity in the form prescribed in the rules, he shall thereupon be discharged from all liability in respect of that payment.

Joint and separate dividends
63. (1) Where one partner of a firm is adjudged bankrupt, a creditor to whom the bankrupt is indebted jointly with the other partners of the firm, or any of them, shall not receive any dividend out of the separate property of the bankrupt until all the separate creditors have received the full amount of their respective debts.

(2) Where joint and separate properties are being administered, dividends of the joint and separate properties shall, subject to any order to the contrary that is made by the court on the application of the Director General of Insolvency or any person interested, be declared together.

(3) The expenses of and incident to such dividends shall be fairly apportioned by the Director General of Insolvency between the joint and separate properties, regard being had to the work done for and the benefit received by each property.

Provision for creditors residing at a distance, etc.
64. (1) In the calculation and distribution of a dividend the Director General of Insolvency shall make provision for debts provable in bankruptcy appearing from the bankrupt’s statements or otherwise to be due to persons resident in places so distant from the place where the Director General of Insolvency is acting that in the ordinary course of communication they have not had sufficient time to tender their proofs or to establish them if disputed, and also for debts provable in bankruptcy the subject of claims not yet determined.

(2) The Director General of Insolvency shall also make provision for any disputed proofs or claims and for the expenses necessary for the administration of the estate or otherwise, and, subject to the foregoing provisions, he shall distribute as dividend all money in hand.

Right of creditor who has not proved debt before declaration of a dividend
65. Any creditor who has not proved his debt before the declaration of any dividend or dividends shall be entitled to be paid, out of any money for the time being in the hands of the Director General of Insolvency, any dividend or dividends he has failed to receive before that money is applied to the payment of any future dividend or dividends, but he shall not be entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein.

Final dividend
66. (1) When the Director General of Insolvency has realized all the property of the bankrupt, or so much thereof as can, in his opinion, be realized without needlessly protracting the proceedings in bankruptcy, he shall declare a final dividend.

(2) Before so doing he shall give notice as prescribed to the persons whose claims to be creditors have been notified to him, but not established to his satisfaction, that if they do not establish their claims to the satisfaction of the court within a time limited by the notice he will proceed to make a final dividend without regard to their claim.

(3) After the expiration of the time so limited, or if the court, on application by any such claimant, grants him further time for establishing his claim, then on the expiration of such further time, the property of the bankrupt shall be divided among the creditors who have proved their debts without regard to the claims of any other persons.

No action for dividend
67. No action for a dividend shall lie against the Director General of Insolvency, but if he refuses to pay any dividend the court may if it thinks fit order him to pay it.

Power to allow bankrupt to manage property
68. (1) The Director General of Insolvency may appoint the bankrupt himself to superintend the management of the property of the bankrupt, or of any part thereof, or to carry on the trade, if any, of the bankrupt for the benefit of his creditors, and in any other respect to aid in administering the property in such manner and on such terms as the Director General of Insolvency directs.

Allowance to bankrupt for maintenance or service

(2) The Director General of Insolvency may make such allowance as he thinks just to the bankrupt out of his property for the support of the bankrupt and his family, or in consideration of his service if he is engaged in winding up his estate, but the court may reduce any such allowance and limit the time for which it may be made.

(3) Where the bankrupt has died, the Director General of Insolvency may make an allowance to the bankrupt’s family for their support.

(4) The Director General of Insolvency may also make an allowance towards the funeral expenses of a bankrupt.

Right of bankrupt to surplus
69. The bankrupt shall be entitled to any surplus remaining after payment in full of his creditors, with interest as by this Act provided, and for the costs, charges and expenses of the proceedings under the bankruptcy petition.

PART IV

DIRECTOR GENERAL OF INSOLVENCY

Appointment

Appointment of Director General of Insolvency and other officers
70. (1) The Minister shall appoint a Director General of Insolvency and a Deputy Director General of Insolvency from amongst the members of the Judicial and Legal Service.

(2) The Minister may appoint such number of Directors of Insolvency, Deputy Directors of Insolvency, Senior Assistant Directors of Insolvency, Assistant Directors of Insolvency, Insolvency Officers and other officers, as he deems fit, to assist the Director General of Insolvency in carrying out the purposes of this Act.

(3) The Deputy Director General of Insolvency, Directors of Insolvency, Deputy Directors of Insolvency, Senior Assistant Directors of Insolvency, Assistant Directors of Insolvency and Insolvency Officers shall be subject to the general direction, control and supervision of the Director General of Insolvency and shall exercise such powers of the Director General of Insolvency as the Director General of Insolvency may assign except all the powers expressly stated in this Act to be exercisable by the Director General of Insolvency personally.

Duties

Status of Director General of Insolvency
71. (1) The duties of the Director General of Insolvency shall have relation both to the conduct of the debtor and to the administration of his estate.

(2) The Director General of Insolvency, Deputy Director General of Insolvency, Directors of Insolvency, Deputy Directors of Insolvency, Senior Assistant Directors of Insolvency, Assistant Directors of Insolvency, Insolvency Officers and other officers may administer oaths for the purposes of any matters or proceedings under this Act or for the purpose of taking affidavits.

(3) The Director General of Insolvency, Deputy Director General of Insolvency and every Director of Insolvency, Deputy Director of Insolvency, Senior Assistant Director of Insolvency, Assistant Director of Insolvency, Insolvency Officer and other officer shall be deemed to be a public servant within the meaning of the Penal Code.

Duties of Director General of Insolvency as regards the debtor’s conduct
72. As regards the debtor, the Director General of Insolvency shall—

(a) investigate the conduct of the debtor, and report to the court stating whether there is reason to believe that the debtor has committed any act which constitutes an offence under this Act or under section 421, 422, 423 or 424 of the Penal Code or which would justify the court in refusing, suspending or qualifying an order for his discharge;

(b) make such other reports concerning the conduct of the debtor as the court directs or as may be prescribed;

(c) take such part as may be directed by the court or prescribed in the public examination of the debtor;

(d) take such part and give such assistance in relation to the prosecution of any fraudulent debtor or any other person charged with an offence under this Act, as the Public Prosecutor may direct.

Duties of Director General of Insolvency as to debtor’s estate
73. (1) As regards the estate of a debtor, the Director General of Insolvency shall—

(a) act as the receiver of the debtor’s estate, and act as manager thereof where a special manager has not been appointed;

(b) raise money or make advances for the purposes of the estate, and authorize the special manager to raise money or make advances for the like purposes in any case where
in the interests of the creditors it appears necessary so to do;

(c) summon and preside at all meetings of creditors held under this Act;

(d) issue forms of proxy for use at the meetings of creditors;

(e) report to the creditors as to any proposal which the debtor makes with respect to the mode of liquidating his affairs;

(f) advertise the receiving order, the date of the debtor’s public examination and such other matters as it is necessary to advertise.
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