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Bankruptcy (Amendment) Act 2017 [Act A1534]

11 Substitution of section 4   cite [+]

The principal Act is amended by substituting for section 4 the following section:

"4. Bankruptcy order
The court may, on a bankruptcy petition being presented by a creditor under section 6 or by a debtor under section 7, make a bankruptcy order.".

12 Amendment of section 5   cite [+]

Section 5 of the principal Act is amended-

(a) in paragraph (1)(a), by substituting for the word "thirty" the word "fifty";

(b) by substituting for subsection (3) the following subsection:

"(3) A petitioning creditor shall not be entitled to commence any bankruptcy action-

(a) against a social guarantor; and

(b) against a guarantor other than a social guarantor unless the petitioning creditor has obtained leave from the court."; and

(c) by inserting after subsection (3) the following subsections:

"(4) Before granting leave referred to in paragraph (3)(b), the court shall satisfy itself that the petitioning creditor has exhausted all modes of execution and enforcement to recover debts owed to him by the debtor.

(5) Where the petition is presented against a guarantor pursuant to subsection (4), a petitioning creditor shall state in his petition the particulars of his borrower.

(6) For the purposes of subsection (4), modes of execution and enforcement include seizure and sale, judgment debtor summon, garnishment and bankruptcy or winding up proceedings against the borrower.

(7) If the petitioning creditor fails to comply with the requirements of this section, the court shall dismiss the petition.".

13 Amendment of section 6   cite [+]

Section 6 of the principal Act is amended-

(a) by substituting for the words "as prescribed" the words "personally to a debtor";

(b) by inserting after subsection (1) the following subsections:

"(1A) Notwithstanding subsection (2), the court may make an order for substituted service of a creditor's petition as prescribed if the creditor can prove to the satisfaction of the court that the debtor, with intent to defeat, delay or evade personal service-

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

(b) departs from his dwelling house or otherwise absents himself, or secludes himself in his house or closes his place of business.

(1B) An application for an order for substituted service shall state the facts on which the application is founded.

(1C) A substituted service of a creditor's petition, in relation to which an order is made under this section, is effected by taking such steps as the court may direct to bring the creditor's petition to the person to be served."; and

(c) in subsections (2) and (6), by substituting for the word "receiving" the word "bankruptcy".

14 Amendment of section 7   cite [+]

Section 7 of the principal Act is amended-

(a) in subsection (1), by substituting for the word "receiving" the word "bankruptcy"; and

(b) by inserting after subsection (1) the following subsection:

"(1A) Where a debtor's petition is presented on behalf of a firm in the firm's name, the court shall not adjudge a person who is a member of the firm bankrupt unless such person is proved to the satisfaction of the court to be a partner by his admission or by evidence on oath.".

15 Amendment of section 8   cite [+]

Section 8 of the principal Act is amended-

(a) by substituting for the word "receiving" wherever appearing the word "bankruptcy";

(b) by substituting for subsection (1) the following subsection:

"(1) On the making of a bankruptcy order-

(a) except as provided by this Act, no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the bankrupt 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; and

(b) all the property of the bankrupt shall become divisible among his creditors and shall vest in the Director General of Insolvency and the Director General of Insolvency shall be the receiver, manager, administrator and trustee of all properties of the bankrupt."; and

(c) in subsection (2A), by substituting for the word "six" the word "twelve".

16 Deletion of section 9   cite [+]

The principal Act is amended by deleting section 9.

17 Amendment of section 12   cite [+]

Section 12 of the principal Act is amended-

(a) in subsection (1), by substituting for the words "thereof accordingly to act until the first meeting of creditors," the words "to act accordingly"; and

(b) by deleting subsection (2).

18 Deletion of section 14   cite [+]

The principal Act is amended by deleting section 14.

19 Substitution of subheading   cite [+]

The principal Act is amended by substituting for the subheading of "Proceedings consequent on Receiving Order" appearing before section 15 the following subheading:

"Proceedings Consequent on Bankruptcy Order".

20 Amendment of section 15   cite [+]

Section 15 of the principal Act is amended-

(a) in subsection (1)-

(i) by substituting for the word "receiving" the word "bankruptcy";

(ii) by deleting the words ", or whether it is expedient that the debtor be adjudged bankrupt,"; and

(iii) by substituting for the word "debtor's" the word "bankrupt's"; and

(b) in subsection (1A), by substituting for the word "debtor" the word "bankrupt".



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