Form of Accounts (ss 93-96)

93.     Liquidation account and plan of distribution

            (1) The trustee of every insolvent estate shall, not later than six months after his appointment, if the gross value of the estate is P500 or more, or in any other case not later than three months after his appointment, frame and lay before the Master, a liquidation account and a plan of distribution of the proceeds of property of the estate (if any) available for payment to creditors, or if all realizable assets of the estate have been realized and brought to account and the proceeds are insufficient to cover the costs of the sequestration mentioned in section 83, a plan of contribution apportioning the liability for the deficiency among the creditors who are liable to contribute.

            (2) The liquidation account shall contain an accurate record of all moneys received and of all moneys disbursed by the trustee otherwise than in the course of a business which he carried on for the insolvent estate in question.

            (3) The record of each such receipt and disbursement shall set forth the amount and date thereof and sufficient particulars to explain its nature.

            (4) The liquidation account shall be accompanied by the trustee's pass book and by vouchers in support of the record of receipts and disbursements.

            (5) If the trustee has carried on any business on behalf of the estate, he shall submit to the Master, in addition to the liquidation account, a trading account containing the following data and no others, namely-

     (a)     a record of the value of the stock on hand at the date of sequestration;

     (b)     a record of the value of the stock on hand on the date up to which the account is made up;

     (c)     the daily totals of receipts and payment in connection with the business;

     (d)     the results of his conduct of the business.

            (6) If the estate of a partnership and of a partner are under administration simultaneously, separate accounts shall be framed in the estate of that partnership and in the estate of the partner.

94.     Manner in which plan of distribution and plan of contribution to be prepared

            (1) The plan of distribution shall show in parallel columns under separate headings-

     (a)     such claims or portions of any claims as are preferent or secured;

     (b)     such claims or such portions of any claims as are concurrent;

     (c)     the dividends severally awarded under that account and under previous accounts, if any; and

     (d)     the deficiency in respect of each claim.

            (2) The plan of contribution shall show in parallel columns-

     (a)     the claim of each creditor in respect of which he is liable to contribute; and

     (b)     the amount which he is liable to contribute.

            (3) If the liquidation account is not the final liquidation account, the trustee shall further set forth therein-

     (a)     all property still unrealized;

     (b)     all outstanding debts due to the estate;

     (c)     the reasons why that property or those debts have not been realized or collected, as the case may be,

and in that event the trustee shall, from time to time as the Master may direct, but at least once in every six months, unless he has been granted an extension of time as hereinafter provided, frame and lay before the Master the periodical accounts in form and in all other respects similar to the account mentioned in this section and section 93.

            (4) Every account lodged by a trustee shall be signed by him, and verified by his affidavit that the account is a full and true account of the administration of the estate up to the date of the account and that, so far as he is aware, all the assets of the estate have been disclosed in the account.

            (5) No stamp duty shall be payable in respect of such affidavit.

95.     Power to apply to the court for an order on the trustee to lodge liquidation account

            The Master, at any time when he considers that the trustee of an estate has funds in hand that ought to be distributed, and the Master or any person interested in the estate when a full and true account has not been lodged within the periods specified for the lodging of such an account in sections 93 and 94, may apply to the court for an order compelling the trustee to lodge his account:

            Provided that-

      (i)     the Master or that other person shall, not later than 14 days before making this application, transmit a letter to the trustee in default requiring him to lodge his account in accordance with this Act;

      (ii)     any trustee receiving such letter shall lay before the Master in writing his reasons for not having lodged his accounts and the grounds upon which he claims an extension of time to do so, and thereupon the Master may grant to the trustee such extension of time as in the circumstances he may think fit;

     (iii)     if the period specified in section 94 for lodging an account has expired, or, if it will expire within the time for which an extension is sought, the Master shall not grant an extension unless the trustee has previously given, by advertisement in the Gazette, not less than 14 days' notice of his intention to apply for an extension;

    (iv)     any trustee who fails to satisfy the Master that he ought to receive an extension of time may apply by motion to the court, after notice to the Master and that other person, for an order granting to that trustee an extension of time within which to lodge his account.

96.     Costs where Master has refused to grant trustee extension of time

            Upon an application by the Master under section 95 the court, although it may be of opinion that the reasons laid before the Master by the trustee were such as would have justified the Master in granting an extension of time to lodge an account, shall order the trustee to pay the costs of the Master, if before making his application, the Master allowed the trustee sufficient time for applying to the court for an extension of the period for lodging his account.

Confirmation of Account: Dividends and Contributions (ss 97-104)

97.     Inspection of account: places for and period of

            (1) Every trustee's account shall lie open at the office of the Master, and where the insolvent resided or carried on his business at the time of sequestration in any district other than the South East District a duplicate thereof shall lie open at the office of a magistrate in that district, for inspection by creditors for such reasonable time, not being less than 14 days, as the Master may determine.

            (2) The trustee shall give due notice thereof by advertisement in the Gazette and shall state in that notice the period during which and the place or places at which the account will lie open for inspection as aforesaid.

            (3) The magistrate shall cause to be affixed in some public place in or about his office a list of such accounts as have been lodged in his office and the respective dates on which they will be transmitted to the Master; and upon the expiry of the period so advertised he shall endorse on each account his certificate that the account has been open in his office for inspection in terms of this section and shall transmit the account to the Master.

            (4) No stamp duty shall be payable in respect of such certificate.

98.     Objections by insolvent or other interested parties to account

            (1) The insolvent or any person interested in the estate may, at any time before the confirmation of an account, lay before the Master in writing any objection, with the reasons therefor, to that account.

            (2) If the Master is of opinion that any such objection ought to be sustained, he shall direct the trustee to amend that account or shall give such other directions as he may think fit.

            (3) Notwithstanding that an objection has not been lodged and notwithstanding anything contained in section 99, if the Master is of opinion that any improper charge has been made against the assets or that the account is in any respect incorrect and should be amended, he may direct the trustee to amend the account or may give such other directions as he may think fit:

            Provided that-

      (i)     any person aggrieved by any such direction of the Master or by the refusal of the Master to sustain an objection so lodged may apply by motion to the court within 14 days after the date of the Master's direction, after notice to the trustee, for an order to set aside the Master's decision, and the court may confirm the account or make such order as it thinks fit; and

      (ii)     when any such direction affects the interests of a person who has not lodged an objection with the Master, the account so amended shall again lie open for inspection by creditors in the manner and with the notice hereinbefore prescribed, unless the person affected as aforesaid consents in writing to the immediate confirmation of the account.

99.     Confirmation of account

            (1) When an account has been open to inspection by creditors as hereinbefore prescribed and-

     (a)     no objection has been lodged;

     (b)     an objection has been lodged and the account has been amended in accordance with the direction of the Master and has again been open for inspection if necessary as prescribed in section 98(3)(ii) and no application has been made to the court within the prescribed time to set aside the Master's decision; or

     (c)     an objection has been lodged but withdrawn or has not been sustained and the objector has not applied to the court within the time prescribed in section 98,

the Master shall confirm the account and his confirmation shall have the effect of a final sentence, except as against such persons as may be permitted by the court to re-open the account before any dividend has been paid thereunder.

            (2) On the application of the trustee the Master shall forthwith, after the second meeting of creditors, fix a period or periods within which creditors shall prove their claims and, on the expiry of any period so fixed, creditors who have not proved shall, without prejudice to the rights of any mortgagee under the proviso to section 90(1), be excluded from the benefit of any distribution under any account lodged with the Master before their claims are proved.

            (3) The Master shall give directions to the trustee as to the publication of a notice fixing such period or periods.

100.   Distribution of estate and collection of contributions from creditors

            (1) Immediately after the confirmation of any account the trustee shall proceed to distribute the estate in accordance therewith or to collect from the creditors liable to contribute thereunder the amounts for which they may be liable respectively.

            (2) The trustee shall give notice of the confirmation of the account in the Gazette stating, if it be the case, that a dividend is in the course of payment or, if it be the case, that a contribution is in course of collection and that every creditor liable to contribute is required to pay to the trustee the amount for which he is so liable.

            (3) That notice shall specify fully the address at which the payment of the contribution is to be made.

101.   Trustee to produce acquittances for dividends or to pay over unpaid dividends

            (1) The trustee shall without delay lodge with the Master the receipts for dividends and if there is a contribution account the vouchers and acquittances necessary to complete the account.

            (2) If any such dividend remains unpaid for a period of three months after the confirmation of the account the trustee shall immediately pay the same to the Master for the account of the creditor.

            (3) If the trustee, at the expiry of the said period of three months, has failed to furnish the Master with a proper receipt for any dividend which has not been deposited as aforesaid, his failure shall be prima facie evidence that such dividend is still in his hands and the Master may institute proceedings against that trustee to answer for his default.

            (4) The court at the hearing of those proceedings may order the trustee to pay by way of penalty such sum not exceeding the amount of any dividend which has been unduly detained as it may think fit.

102.   Application to court for an order to pay dividend

            If a trustee delays payment of any dividend, any creditor entitled thereto may, after notice to the trustee, apply to the court for an order compelling the trustee to pay him that dividend.

103.   Surplus money to be paid to Master

            (1) Immediately after the confirmation of the final account the trustee shall pay into the hands of the Master any surplus moneys not required for payment of claims, charges and interest.

            (2) Those surplus moneys shall be held by the Master to the credit of the estate and repaid to the insolvent after his rehabilitation upon his request.

            (3) The Master or the insolvent may proceed by motion against any trustee who, being thereunto required in writing, fails to deposit those surplus moneys in accordance with this section; and the court may order that trustee to pay by way of penalty such sum, not exceeding the amount which has been unduly detained, as to the court may seem fit.

            (4) If a trustee fails to comply with any order of the court made under the provisions of any of the preceding sections, the court may order that any sum which that trustee was condemned to pay be recovered by attachment and sale of the goods of the trustee and may further commit him for contempt.

104.   Enforcing payment of contributions of creditors by writ of execution

            At any time after the expiry of 60 days from the publication in the Gazette of the notice under section 100, the trustee may take out a writ of execution against any creditor who, being liable to contribute under the plan of contribution, has failed to satisfy the amount of his liability.

Authentication of Accounts (s 105)

105.   Authentication of confirmed accounts by Master and transmission to magistrate and local inspection of same

            (1) After the confirmation of any account the Master shall authenticate every duplicate transmitted to him by a magistrate, as hereinbefore provided, by affixing his signature thereto, and shall endorse thereon the date upon which the account has been confirmed.

            (2) He shall transmit to the magistrate from whom the same has been received the duplicate of every account confirmed.

            (3) Every such duplicate shall, upon receipt thereof by the magistrate, be filed in his office and every person shall be at liberty to inspect and take copies thereof without charge at any time during office hours.