The Bankruptcy Procedure Act 1892

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AT 2 of 1892

THE BANKRUPTCY PROCEDURE ACT 1892

The Bankruptcy Procedure Act 1892 Index


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c i e
THE BANKRUPTCY PROCEDURE ACT 1892

Index Section Page

1 Short title, etc ................................................................................................................... 5
2 Commencement of Act .................................................................................................. 5
Bankruptcy Procedure 5

3 Bankruptcy proceedings ................................................................................................ 5
4 General power of Court in bankruptcy proceedings ................................................. 6
5 [Repealed] ........................................................................................................................ 6
6 Proceedings and order on creditor’s petition ............................................................. 6
7 Conditions on which a creditor may petition ............................................................. 6
8 Creditor’s petition ........................................................................................................... 7
9 Conditions on which a debtor may petition ............................................................... 8
10 Proceedings and order on debtor’s petition ................................................................ 8
11 Deposit for expenses to be made by petitioner .......................................................... 8
12 Advertisement of receiving order ................................................................................ 8
13 Debtor’s statement of affairs ......................................................................................... 8
14 Public examination of debtor ........................................................................................ 9
15 Proceedings to be filed in the Rolls Office................................................................. 10
MISCELLANEOUS PROVISIONS AS TO INSOLVENT DEBTORS 11
16 [Repealed] ...................................................................................................................... 11
Imprisonment on Jury’s Return of no Effects 11

17 Power of a court to order imprisonment and payment by instalments ................ 11
ENDNOTES 13

TABLE OF LEGISLATION HISTORY 13
TABLE OF RENUMBERED PROVISIONS 13
TABLE OF ENDNOTE REFERENCES 13

The Bankruptcy Procedure Act 1892 Section 1


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c i e
THE BANKRUPTCY PROCEDURE ACT 1892

Received Royal Assent: 28 June 1892
Promulgated: 5 July 1892
Commenced: 5 January 1893
AN ACT
to Regulate the Procedure in Bankruptcy and Insolvency.
GENERAL NOTE:
References to the Rolls Office are to be construed in accordance
with the General Registry Act 1965.
1 Short title, etc

(1) This Act may be cited as ‘The Bankruptcy Procedure Act, 1892’.
(2) This Act and the Bankruptcy Code, 1892 (being an Act intended to be
promulgated on the same day as this Act), may be together cited as the
Bankruptcy Acts, 1892.
(3) This Act shall be construed as one with the Bankruptcy Code, 1892 (such
Code being hereinafter called the principal Act).
2 Commencement of Act

This Act shall commence and come into operation at the same time as the
principal Act.
Bankruptcy Procedure
3 Bankruptcy proceedings

(1) The Court having jurisdiction in bankruptcy shall be the High Court.1

(2) [Repealed]2

(3) Debts provable in bankruptcy shall be proved in Court as nearly as may
be according to the practice in the High Court with respect to the proof
of debts in matters of distribution of estates.3

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4 General power of Court in bankruptcy proceedings

The Court shall have full power to decide all questions of priorities, and all
other questions whatsoever, whether of equity or law or fact, arising in any case
of bankruptcy coming within the cognizance of the Court, or which the Court
may deem it expedient or necessary to decide for the purpose of doing complete
justice, or making a complete distribution of property in any such case; and if in
any proceeding in bankruptcy there arises any question of fact which any of the
parties desire to be tried before a jury, instead of by the Court itself, and for
which sufficient cause is shown by affidavit or otherwise, or which the Court
thinks ought to be tried by a jury, the Court may direct such trial to be had
before the Court itself by a jury of six men to be taken from any sheading, and
from either the special or common jury list, as the Court may direct.4

5 [Repealed]
5

6 Proceedings and order on creditor’s petition

Subject to the conditions hereinafter specified, if a debtor commits an act of
bankruptcy, the Court may, on a bankruptcy petition being, subject to the
provisions hereinafter contained, presented either by a creditor or by the debtor,
make an order adjudicating the debtor a bankrupt, or, in case the Court shall see
fit to postpone its decision as to the question of adjudication, an order, in this
Act called a receiving order, for the protection of the debtor’s estate.
7 Conditions on which a creditor may petition

(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 £25,
or such higher amount as the Treasury may by order
prescribe; and6

(b) The debt is a liquidated sum; and
(c) The act of bankruptcy on which the petition is grounded has
occurred within three months before the presentation of the
petition; and
(d) The debtor is domiciled in the Isle of Man, or, within a year
immediately preceding the date of the presentation of the petition,
has had his usual place of abode or place of business in the Isle of
Man.
(1A) An Order under subsection (1)(a) shall be laid before Tynwald.7

(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
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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 be admitted
as a petitioning creditor to the extent of the balance of the debt due to
him, after deducting the value so estimated in the same manner as if he
were an unsecured creditor.
8 Creditor’s petition

(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 served in
the manner in which petitions to the Court are usually served, or in such
manner as the Court may specially direct.
(2) At the hearing the Court shall require proof of the debt of the petitioning
creditor, of the service of the petition, and of the act of bankruptcy, or, if
more than one act of bankruptcy is alleged in the petition, of some one of
the alleged acts of bankruptcy, and if satisfied with the proofs, may make
an order of adjudication, or a receiving order, as to the Court may seem
right.
(3) If the Court is not satisfied with the proof of the petitioning creditor’s
debt, or of the act of bankruptcy, or that for other sufficient cause no
order ought to be made, the Court may dismiss the petition, and, if not
satisfied with the proof of the service of the petition, may give directions
for further service, or make such order in reference thereto as to the
Court may seem fit.
(3A) When the act of bankruptcy relied on is non-compliance with a notice
under section 5(ee) of the Bankruptcy Code 1892 to pay, secure or
compound for a judgment debt, or sum ordered to be paid, the Court
may, if it thinks fit, stay or dismiss the petition on the ground that an
appeal is pending from the judgment or order.8

(4) Where the debtor appears to the petition, and denies that he is indebted
to the petitioner, or that he is indebted to such an amount as could justify
the petitioner in presenting a petition against him, the Court, on such
security (if any) being given, and for such amount as the Court may
require for his future appearance, and also, if so required by the Court,
for payment to the petitioner of any debt which may be established
against him 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.
(5) 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 an order of adjudication or a receiving order as the case may be, 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
Section 9 The Bankruptcy Procedure Act 1892


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stayed as aforesaid, and in such case the petition of such other creditor
shall be deemed to be the bankruptcy petition.
(6) A creditor’s petition shall not, after presentment, be withdrawn without
the leave of the Court.
9 Conditions on which a debtor may petition

A debtor shall not be entitled to present a bankruptcy petition unless —
(a) He is domiciled in the Isle of Man, or has had his usual place of
abode or place of business within the Isle of Man for at least
twelve calendar months immediately preceding the date of the
presentation of his petition; or
(b) With the concurrence of a creditor or creditors to whom the
amount of debt or debts owing by the debtor shall not be less than
£25, such concurrence to be in writing at foot of the petition.
10 Proceedings and order on debtor’s petition

(1) A debtor’s petition shall allege that the debtor is unable to pay his debts,
and the presentation thereof shall alone be deemed an act of bankruptcy.
(2) On the presentation of a debtor’s petition, the Court shall make an order
adjudicating the debtor a bankrupt.
(3) A debtor’s petition shall not, after presentment, be withdrawn without
the leave of the Court.
11 Deposit for expenses to be made by petitioner

Upon the presentation of a bankruptcy petition, either by the creditor or by the
debtor, the petitioner shall deposit with the clerk of the Court the sum of £5, and
such further sums (if any) as the Court may from time to time direct, to cover
the fees and expenses to be incurred under the petition.
12 Advertisement of receiving order

Notice of every receiving order, and order of adjudication, stating the name,
address, and description of the debtor, the date of the order, and the Court by
which the order is made, shall be advertised by the petitioner in a newspaper
published and circulating within this Isle in the prescribed manner.
13 Debtor’s statement of affairs

(1) As soon as may be after the making a receiving order or order of
adjudication against the debtor, he shall make out, and submit to the
official receiver or trustees (as the case may be), a statement of and in
relation to his affairs in the prescribed form, verified by affidavit, and
showing the particulars of the debtor’s assets, debts, and liabilities, the
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names, residences, and occupations of his creditors, the securities held by
them respectively, the dates when the securities were respectively given,
and such further or other information as the official receiver or trustee
may require.
(2) The statement shall be so submitted within the following times,
namely —
(a) If the order is made on the petition of the debtor, within three
days from the date of the order:
(b) If the order is made on the petition of a creditor, within seven
days from the date of the order.
But the Court may, in either case, for special reasons, extend the time.
(3) If the debtor fails, without reasonable excuse, to comply with the
requirements of this section, and he be not adjudged bankrupt, the Court
may, on the application of the official receiver, adjudge him bankrupt;
and the Court may, on the application of a creditor, or of the official
receiver or trustee, order the debtor to be imprisoned until he comply
with the requirements of this section, or until the further order of the
Court.
(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, or agent of a creditor,
shall be guilty of a contempt of Court, and shall be punishable
accordingly on the application of the official receiver or trustee.
14 Public examination of debtor

(1) Where the Court makes a receiving order or order of adjudication, it
shall, on a day appointed by the Court, sit for the public examination of
the debtor, and the debtor shall attend thereat, and shall be examined as
to his conduct, dealings, and property.
(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. Notice of the time and place appointed for such examination shall
be given in such manner as the Court may direct.
(3) The Court may adjourn the examination from time to time.
(4) Any creditor who has tendered a proof, or his representative authorised
in writing, may question the debtor concerning his affairs and the causes
of his failure.
(5) The official receiver or trustee shall take part in the examination of the
debtor, and for the purpose thereof, if authorised by the Court, may
employ an advocate.
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(6) The debtor shall be examined on oath, and it shall be his duty to answer
all such questions as the Court may put, or allow to be put to him. Such
notes of the examination as the Court thinks proper shall be taken down
in writing, and shall be read over to be signed by the debtor, and the
same, or a copy thereof certified by the judge, may thereafter be used in
evidence against him.
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.
15 Proceedings to be filed in the Rolls Office

(1) The proceedings in each matter of bankruptcy shall be retained by the
clerk of the Court for the space of twelve months from the presentation
of the bankruptcy petition, or for such further time as the Court may
direct; and, on the expiry of the time for such retention, the clerk shall
transmit to the Rolls Office, to be there filed, the following portions of
such proceedings (that is to say) —
The bankruptcy petition, the order of adjudication, the appointment of a
receiver and of a trustee; a petition for the discharge of the bankrupt, and
the order or judgment made thereon; the resolutions of a meeting of
creditors on a proposal for a composition or scheme of arrangement, and
the order of the Court thereon; the notes or minutes of the debtor’s
public examination, a certificate of the debts proved against the debtor
and of the distribution of the debtor’s estate, the final report of the
trustee, the order of release of the trustee, any bond given by a trustee or
others, petition of appeal (if any), any order revoking a discharge, and
such other documents as may be ordered by the Court to be filed. All
other papers in connection with the case may be destroyed.
(2) The clerk shall, on application made to him, during the time that such
proceedings shall remain in his custody, furnish office copies, certified
by him, of any such proceedings, and such copies shall be receivable in
evidence in like manner as office copies issued at the Rolls Office. The
like fees for copies as are payable at the Rolls Office shall be payable to
the clerk in respect of office copies issued by him.
The Bankruptcy Procedure Act 1892 Section 16


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MISCELLANEOUS PROVISIONS AS TO INSOLVENT DEBTORS
16 [Repealed]
9

Imprisonment on Jury’s Return of no Effects
17 Power of a court to order imprisonment and payment by instalments

In all cases where sufficient property of a judgment debtor cannot be discovered
by the ordinary mode of procedure to satisfy any judgment and execution to be
granted by any Court, and the insufficiency appears after a Coroner’s inquiry
under section 8 of the Administration of Justice Act 1981 by a certificate equivalent
to a jury’s return of no effects, it shall be lawful for such Court, on the petition of
the judgment creditor, or of the coroner with the consent of the judgment
creditor, and upon hearing the parties, to order the judgment debtor to be
imprisoned in the common gaol, there to remain until he pays the amount due
under the judgment and the costs of such petition, or until he be discharged by
due course of law.
Provided always, that on the hearing of any such petition, if the debtor allege
his inability to pay the amount due under the judgment, the said Court shall
inquire into the truth of such allegation, and if satisfied of the truth thereof, and
that the debtor is unable to make any provision for the payment of the debt,
may stay further proceedings under the petition; or the Court may, on
consideration of the circumstances of the debtor, make an order for his
imprisonment in the usual manner, but with a condition thereto to the effect
that as long as the debtor pay periodically, and in such manner as the Court
may direct, such instalments of the debt as may be agreed upon by the parties
or fixed by the Court, the enforcement of the order shall be suspended. In case
at any time the debtor fail to pay any such instalment it shall be lawful for the
order to be enforced for the amount which may be due thereunder.10

The Bankruptcy Procedure Act 1892 Endnotes


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ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Subs (1) amended by High Court Act 1991 Sch 5. 2
Subs (2) repealed by High Court Act 1991 Sch 5. 3
Subs (3) amended by High Court Act 1991 Sch 5. 4
S 4 amended by High Court Act 1991 Sch 5. 5
S 5 repealed by High Court Act 1991 Sch 5. 6
Para (a) amended by Bankruptcy Act 1988 s 4. 7
Subs (1A) inserted by Bankruptcy Act 1988 s 4. 8
Subs (3A) inserted by Bankruptcy Act 1988 s 2. 9
S 16 repealed by High Court Act 1991 Sch 5. 10
S 17 amended by Administration of Justice Act 1981 Sch 5 and by Statute Law
Revision Act 1989 Sch 1.