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Bankruptcy Act


Published: 1880-01-01

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BANKRUPTCY 1

THE BANKRUFT’CY ACT
ARRANGEMENT OF SECllONS

Prdirllinary
1. short title.
2. Interpreration.

Constitution and Jurisdiction of Courts
3. The Chief Couzt of Bankruptcy.
4. Resident Magistrates’ Courts of Bankruptcy, their Judges and

officers: their pwers. duties, etc.
TN- in Bankruptcy.

5. Proceedings in bankruptcy. ILI what Court to be commeaced;

6. Debtor may appIy to Resident Magistrate’s Court to be deciared
and how and when they may be transferred.

bankrupt
Original Jurisdiction

7. Powem of Court to dacide all questions.
8. Sitting of aid Court.
9. Trial of questions of fact by jury; when aad how.

10. Court may vary orders.
11. ApptaIs.

12. Powers as to costa
13. Fccs. how fixd. payabk and applicable

14. Trustee in Bankruptcy.
IS. T r u e in Bankruptcy: his power to appoint agents. etc.
16. Commissioas and fees to be paid into ConsoIidated Fund.
17. [Repealed by Act 22 of 1993.1
18. Reimbursement of expenses of TNS~W inBankruptcy.

Appellate Jmkdiction

Costs, Fees, em.

o@% in Bankruptcy

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2 BANKRUPTCY

hOCEEDiNG.5 ON A B m U P T C Y PK7ll’ION
As to who may present a Petition and on what Grounds

19. Who may be petitioning creditors. and what arc acts of

20. Debtor’s petition.
bankNptcy.

As to the Verification of the Allegations
of a Pefitim

21. Creditor’s petition. how to be verified.
22. Debtor’s petition, what statement to acmmpany same.

Appointment of Receiver
23. Appointment of Receiver; his powcn and dutiu

As to Parties to Proceedings under a Petition-cOmpmries,
Partners, Firms

24. Companies may proceed by agent.
25. Firms may be named by their style.
26. Special provision as to certain companies.

A s to Conrdidafing, Staying, Adjourning. Coftfinuiw
and Dismissing, Prmeedings under a Pefit im

27. Consolidating petitions against partners sepmtely.
28. Consolidating petitions against samc debtor.
29. Staying pMceedings.
30. Adjourning and dismissing petitions.
31. Substitution of other creditor as petitioner in case of delay.
32. Proceedings continued though debtor dies.

Provisional Order
33. Notice of petition nced not be scrvcd.
34. Provisional order. when to be made.
35. Service of provisional order.
36. Revocation of provisional order.
37. Order for debtor to file statement of his &airs. and m i c e

38. Absolute order for banl~ptcy.
thereof.

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BANKRUPTCY 3

39. EBea of order as to staying pmcedhgs to rccoycf debts.
40. Relation back of provisional order.
41. Debtor’s property, when and how divisible.
42. Debtor’s property, when it vests in Trustee, and when aad how

43. Duty of debtor to aid TNS~C.
44. When debtor punishable as for a contempt of wurt

45. Meeting of creditors. when to be summoned
46. Meeting, how to be held and wnductcd, and as to voting thcnat.
41. Duty and power of Trustee at meethg.
48. Resolutions at &g.
49. Repoa to the Court as to resolutions.
50. Procedure on resolution for deed of arrangement.
51. Absolute order for bankruptcy, when to be made.

to be administered.

Meeting of Creditors and Resolutions

Proceedings under an Order for a Deed of
Armgemen~

52 Deed of arrangement. how made, executed. proved and filed.
53. Consideration of deed by the court
54. Conditions for confirmation.
55. Proceeding when deed is not conhed .
56. Proceeding on wnfumation of deed.
57. confirmation of deed amcIusive as to its validity.
58. Administration of estate under wnfirmcd deed.
59. Dkharge of debtor when deed carried out,
60. When deed may be decland void, and &ect thereof.
61. As to deeds of arrangement in cases of partuers.
62 As to a m t of certain creditors in cam of partners.
63. As to debt incurred, or inmead or forborne, by means of fraud.
64. Rights of creditors against third partics not aEectcd.
65. Administration of estate on confirmation of deed.

Proceedings under m Absolute Order for B b p t c y
66. Examination of debtor, and into his affairs.
67. Omission to keep or produce proper books, when and how

puniSham.

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4 BANKRUPTCY

68. Debts incurred by breach of trust or recklessness or extravangance,

69. Administration of debtor’s estate after order absoIute.
how far punishable.

Bankruptcy Prmeedinqs against Estate of a Deceased
Debtor

70. Proceedings in bankruptcy against estate of a deceased debtor.

OF THE DISCHARGE OF A BANKRUF‘T
As to the Granting of a Discharge

71. Report of Trustee, its purport.
72. Consideration of application for discharge and dealing with same.

Facts on proof of which Judge may refuse or suspend order of
discharge or make it conditional

73. Appeal.
74. Conditions of discharge.

As to the Effect of an Order of Discharge

75. How far order of discharge releases debtor from his debts.
76. Does not release partner or joint debtor.
77. How order of discharge pleaded and proved.

Administrution of U Debtofs Estate by the Trustee
Duties and Powers of the Trustee

78. Estate of debtor to be administered for the benefit Of his

79. Trustee to take possession of debtor’s property.
80. Trustee to recover debts.
81. Trustee to examine debtor’s books.
82. Power of Trustee to sen property.
83. How far Trustee may carry on debtor‘s trade.
84. Trustee’s power to bring or defend actions.
85. May m v e r dividends.
86. Trustee’s power to arbitrate or compromise ckim of debtor.
87. Trustee’s power to compromise claims against debtor.

creditors.

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BANKRUPTCY

88. Trustee’s power to wmpmmise claims as to debtor’s property.
89. Powers of Trustee as to exercising discretion or executing deeds.
90. Trustee’s power as to estates tail.
91. Proof of debt&
92. Trustee under control of the Court.
93. Trustee may ask the Court for directions.
94. Trustee acting under such directions protected.
95. Trustee to keep books.
96. Money received to be deposited in Workers Savings and Loan

97. All moneys to be paid into Court after two years.
98. Audit of Trustee’s accounts

Bank.

Control of the Cowl over the Administration
of the Debtor‘s Estate by the Trustee

99. Trustee responsible to the Court.
100. Power of Court to examine Trustee and his books.
101. Power of Court to control Trustee.
102. Application to the Court against Trustee.
103. Power of Court to enable any person to do acts for the debtor.

DISTRIBUTION OF DEBTOR’S PROPERTY
General Provisions as to Property of Debtor

104. What the property of the debtor oomprises

Special Provisions as to Certain Kinds of Property of Debtor
105. Appropriation of portion of salary of debtor payable by

106. Appropriation of portion of other salaty or income.
107. DeliveIy to TNS& of moneys and securities of debtor.
108. Transfer of stocks. shares etc.
109. Onerous and unprofitable prooperty of debtor. Power of Trustee

110. Limit to Trustee’s right to disclaim.

GovemmcnL

to disclaim same. Effect of disclaimer.

Speckl Provisions a8 to the Benefit of Transactions
Affecting the Debtor and his Propem

111. Settlements by debtor, how far void as against Trustee.
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6 BANKRUPTCY

112. Extension of power to avoid certain voluntary settlements, etc.,
as against the representatives of deceased settlors whose estates
are insolvent.

113. Voluntary expenditure of moneys on the properly of another to be
deemed a settlement if order in bankruptcy takes effect within
two years against the person so expending the m e .

114. Bankruptcy of a firm or of one or more partners. effect thereof on
the partnership assets and on the property of each partner.

115. Fraudulent preferenws
Conveyances to a Trustee for a creditor, how far void.

11 6. Conveyance, assignment, etc. of stock-in-trade. etc.
117. Entry of vacatur on margin of recorded deed declared void.
118. Proceeds of executions against debtor.
119. Delivery of goods taken in execution but not sold.
120. How far c d i t o r entitled to benefit of execution or attachment

121. [Repealed by Act 15 of 1979, 2nd Sch.]
122. Protection of certain bona w e transactions with bankrupt before

against debtor.

petition W.

Debts Provable aguimt the Debtor's m a t e
123. What debts are and what arenot provable against debtor's estate.
124. Estimate of debts of uncertain value.
125. Liability dehed.
126. Interest on debts.
127. Interest on debts, how calculated.
128. Postponement of husband's and wife's claim.
129. Secured creditors, how they may prove.
130. Proofs in respect of distinct contracts in different capcities.
131. Mutual dealings and set off.
132. [Repealed by Act I5 of 1979. 2nd Sch.]
133. May prove for proportion of rent to date of provisional order,

Distribution of Assets and Dividends
134. Notiw of dividend.
135. Calculation and distribution of dividend.

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BANKRUPTCY

136. Rights of creditors who prove after dividend.
137. Final dividend, notice thereof.
138. How dividend recoverable if not paid.

Rules QS 10 Priority of Puymenl
139. Preferential debts.
140. Creditors of a debtor’s firm postponed to separate creditors of

debtors.

A s to Payment to the Debtor
141. Allowances to debtor for support or services.
142. Surplus of estate payable to debtor.

Bankruptcy Unclainied Eslates
143. When moneys of insolvent estate remain in Treasury for twenty

144. Advertisement io Gazette and newspaper.

145. Unclaimed funds to become part of Consolidated Fund and

146. Action for money claimed to be against the Attorney-General.

years Accountant-General to report to Minister.

Claims to be made withim one year of advertisement.

assets of the Island.

SUPPLEMENTAL PROVISIONS
As to Jmkt Debtors

147. Petition against partners or joint debtors.
148. Dismissal of petition against some respondents only.
149. Power to extend provisional order against partners to their

150. Creditor of partners may prove for certain purposes his claims in

151. Trustee’s right of action when debtor is member of a 6rm.
152. As to debtor’s joint contracts.
153. Provisional order when a member of a k m is absent or lunatic.

As to Discovery of D e b l d s Proper9
154. Power of Court to summon debtor and other persons, to require

155. And to examine witnesses.

separate estate.

proceedings against one partner.

production of documents as to debtor’s affairs.

7

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8 BANKRUPTCY

156. And to order payment o€ admitted debt
157. Power to seize debtor’s property. and to search for same.
158. Arrest of debtor in certain events.
159. Dealing with letters addressed to debtor.

Orders and Warrants of Court
160, Enforcement of warrant8 and orders of Courts
161. Warrants of Bankruptcy Courts.
162. Commitment to prism.

Change of Jurisdiction by Minister
163. Change of jurisdiction by Minister.

MIsCELLANulU.5 PROVISIONS
Provisions Relating 10 Evidence

164. Certified copies of entries in Trustee’s books.
165. Signature of Trustee.
166. Evidence of documents in proceedings under this Act
167. Depositions of deceased persons.
168. Gazefte notie conclusive evidence of certain facts.

Provisions Relaling to kgd Proceedings

169. Service on Trustee.
170. Notice of action against Trustee.
171. Exemptions from stamp duty.
172. Irregularities not to invalidate ptoceedhgs.
173. Actions in respect of debtor’s things in action assigned

As fu Apprenficeship
174. As to discharge of indenture of apprentice of debtor, and

preferential allowance thereoa

A s to the Annulling or Revoking of Orders in
Bankruptcy

175. Power to revoke orders. etc., effect thereof.
176. Effect of revocation of a provisiod Order.

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BANKRUPTCY

FRAUDULENT BANKRUPTCY
Crimes Againsf Bankruptcy Act

177. Crimes against the Bank~ptcy Act, and where triable.
178. Undischarged bankrupt obtaining credit to extent of forty dollars

without informing creditor of his bankruptcy. guilty of
misdemeanour.

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9

R/L - D

BANKRUPTCY 11

Cap. 32.
Ls“

’I of 1958.
ACtr

38 of 1965,
45 of 1968,
42 of 1963

[Ist January, 1880.1 3rdSeb..
15 of 1979

THE BANKRUPTCY ACT

2nd Sch,
1 of 1982

34 of 1995.
Preliminary 22 of 1993.

1. This Act may be cited as the Bankruptcy Act. Short title.

Interprela-
tion.

2. In this Act-
“banhptcy petition” or “petition” means a petition

praying that the affairs of the debtor may be wound
up, and his property administered, under the provi-
sions of the law of bankruptcy;

“creditors” includes any two or more persons to whom a
debt is owing jointly, and also incorporated joint stock
companies;

“debtor” includes any person, whether a Commonwealth
citizen or not, who at the time when any act of
bankruptcy was done or suffered by him-

(a) was personally present in Jamaica; or
(b) ordinarily resided or had a place of residence in

Jamaica; or
(c) was carrying on business in Jamaica, personally

or by means of an agent or manager; or
(d) was a member of a firm or partnership which

carried on business in Jamaica;
“deed of arrangement” means a deed or instrument provid-

ing by way of trust, inspectorship or otherwise, for
the distribution of all or part of the property of a
debtor among all his creditors, and for the payment
of a composition to all his creditors out of his property
or otherwise;

“person” includes a body corporate and a firm;
“prescribed” means prescribed by rules of court;

[Thcinclusi~lnf thispigoisauthorized byL.N.9511997)

12 BANKRUPTCY

“property” includes money, goods, things in action, land,
and every description of property real or personal, also
obligations, easements, and every description of estate,
interest and profit, present or future, vested or con-
tingent, arising out of or incident to property LIS above
defined;

“rules of court” includes such rules and orders of court in
relation to bankruptcy proceedings as are in force for
the time being;

“secured creditor” means any person holding a mortgage,
charge or lien upon the property of the debtor as
security for a debt due to him from such debtor;

“the Court” means the Court exercising jurisdiction in
bankruptcy;

“the Supreme Court” means the Chief Court of Bankruptcy;
“Trustee” means the Trustee in Bankruptcy as in this Act

hereafter mentioned, whether acting as Receiver or
Trustee.

Constitution and Jurisdiction of Courts
mechid
RmhptCY. Court Of Bankruptcy.

3 .41 ) The Supreme Court shall be the Chief Court of

(2) The Judges of the Supreme Court shall be the
Judges of the Chief Court of Bankruptcy.

(3) The clerks and officers of the Supreme Court, and
such other clerks and officers as may be appointed, shall
be the clerks and officers of the Chief Court of Bankruptcy.

(4) The Chief Court of Bankruptcy shall be a Court
of Law and of Equity, and a principal Court of Record,
and, for the purposes of this Act, shall have all the powers
and jurisdiction of the Supreme Court.

(5) Every Judge of the Chief Court of Bankruptcy
shall, for the purposes of this Act, have all the powers,
jurisdiction end privileges of a Judge of the Supreme Court;

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BANKRUPTCY

and the orders of every such Judge shall be of the same
force as if they were judgments of the Supreme Court.

(6) The clerks and other officers of the Chief Court
of Bankruptcy, in proceedings in bankruptcy, shall have the
same powers, duties, and responsibilities, that they have in
proceedings within the ordinary jurisdiction of the Supreme
Court, and such further powers, duties, and responsibilities
as shall be assigned to them by the Judges of the Chief Court
of Bankruptcy, for the purposes of this Act, under rules to
be sanctioned by the Minister.

(7) A single Judge. may carry on the business of the
Chief Court of Bankruptcy, except in cases of appeal.

(8) A Judge of the Chief Court of Bankruptcy may
sit in Chambers, and when in Chambers shall have the
same jurisdiction, and exercise the same powers as if in
Court.

13

4.-(1) The Resident Magistrates’ Courts shall be Resi- Resident
dent Magistrates’ Courts of Bankruptcy, and the Judges, Courtsof
and clerks and officers of the Resident Magistrates’ Courts gzr%z;
shall be the Judges, and clerks, and officers of the Resident a n d o s e w

Magistrates‘

their powers.
duties, etc. Magistrates’ Courts of Bankruptcy.

(2) Every Resident Magistrate’s Court of Bankruptcy
in regard to all proceedings in bankruptcy shall be a Court
of Law and Equity, and a Court of Record; and the
Resident Magistrates thereof in all such proceedings, shall
have all the powers, jurisdiction, and privileges exercised
by a Resident Magistrate in matters within the ordinary
jurisdiction of such Court, and the Resident Magistrate
of such Court, for the purposes of this Act, in addition to
his ordinary powers as a Resident Magistrate, shall have
all the powers, jurisdiction, and privileges of a Judge of
- _ me inclusion of this page is authorized by L.N. 42/1995]

14 BANKRUPTCY

the Supreme Court; and the officers of every such Court in
proceedings in bankruptcy shall have the same powers,
duties, and responsibilities that they have in proceedings
within the ordinary jurisdiction of their Courts, and such
further powers, duties, and responsibilities as may be
assigned to them by the Judges of the Chief Court of Bank-
ruptcy, for the purposes of this Act, under rules to be
sanctioned by the Minister.

Proceedings 5 . 4 1 ) All proceedings in bankruptcy, shall be com-
in bank-
mptcy. menced by petition in the Chief Court of Bankruptcy,
Inwhat Court o be except in cases where the petitioning creditor, on present-
commenced: ing his petition in a Resident Magistrate’s Court of Bank-
whcnthcy ruptcy, files along with it an affidavit of his belief that
transfcrrd. the estate of the debtor, in respect of whom adjudication
22’1m s. 3 . is sought, is below the value of thirty thousand dollars. When

such an affidavit is so filed the proceedings may be com-
menced and carried out in the Resident Magistrate’s Court
of the parish in which the debtor resides or carries on
business.

(2) If whilst proceedings in any case in bankruptcy
are pending in the Chief Court of Bankruptcy, it shall
appear to the Court to be expedient it may remit the case
and all proceedings therein to the Resident Magistrate’s
Court of Bankruptcy of the parish in which the debtor
resides or carries on business, or to such other Resident
Magistrate’s Court of Bankruptcy as to it may seem fit.

(3) If whilst proceedings in any case in bankruptcy
are pending in any Resident Magistrate’s Court of Bank-
ruptcy, it shall-

and how and

may be

Xi1 I993
s. 3.

(a) appear to such Resident Magistrate’s Court that
the estate of the debtor is not below the value of
thirty thousand dollars, and that the proceedings
may be more conveniently conducted in the Chief
Court, o r that the majority of the creditors desire

-
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RANKKUPTCY

that the proceedings should be transferred to the
Chief Court; or

( b ) be made to appear on application to the Chief
Court that the proceedings may be more con-
veniently conducted in the Chief Court,

it shall be lawful for such Resident Magistrate’s Court or
Chief Court, as the case may be, to order the transfer of
the case and the proceedings therein to the Chief Court
upon such terms as to costs and otherwise as to the Court
ordering the transfer may seem fit.

15

6. Nothing in the foregoing section shall be deemed to Debtor may
w w 10

elldent
M agistrate’s
Court to be
declared

prevent any Resident Magistrate’s Court from adjudicating
a debtor bankrupt on his own petition:

Provided that where any debtor presents any such har.kropt
petition he shall file along with it an affidavit of his belief
that the whole of his estate is below the value of thirty 34j199J
thousand dollars. s. 2.

Original Jurisdiction

7. Subject to the provisions of this Act, every Court Pc+crsof
having jurisdiction in bankruptcy under this Act shall have decldc ail
full power to decide all questions of priorities, and all other
questions whatsoever, whether of law or of fact, arising in
any case of bankruptcy coming within the cognizance of
such Court, or which such Court may deem it expedient or
nzcessary to decide for the purpose of doing complete
justice or making a complete distribution of property in any
such case; and no such Court shall be subject to be res-
trained in the exercise of its powers under this Act by the
order of any other Court, nor shall any appeal lie from the
decisions of any such Court, except in the manner directed
by or under the authority of this Act.

Court to

quesmns

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16 BANKRUPTCY

Sittinsof 8 . 4 1 ) The Chief Court of Bankruptcy shall sit at such
times and places as may be determined by the Judges
thereof.

Chief Court.

(2) It shall be lawful for a Judge of the Chief Court
of Bankruptcy to hear any matter or proceeding in bank-
ruptcy within the original jurisdiction of such Court either
with or without a jury; if with a jury at any Circuit Court,
and if without a jury either at an ordinary or special sitting
of the Chief Court, or at a Circuit Court, and at every Circuit
Court the Judge thereof may appoint a sitting and sit as a
Judge in Bankruptcy for the disposal of such business as
shall be brought before him.

Trjal of
qllcstioos of
facl by jury;
when and
how.

9. If in any proceedings in bankruptcy before the Chief
Court or a Resident Magistrate’s Court there arises any
question of fact which the Chief Court or Resident
Magistrate’s Court, as the case may be, thinks ought to be
tried before a jury, it may direct such trial to be had
accordingly-

(a) if the case is pending in the Chief Court of Bank-
ruptcy then at any Circuit Court in the same
manner as if it were the trial of an issue in the
Supreme CourS

(b) if the case be pending in a Resident Magistrate’s
Court of Bankruptcy then at such Resident Mag-
istrate’s Court in the manner in which jury trials
in ordinary cases are by law held in a Resident
Magistrate’s Court

A ppellare Jurisdiction
10. Every Court having jurisdiction in bankruptcy under

this Act may review, rescind, or vary any order made by
it in pursuance of this Act.

11.-(1) Any person aggrieved by any order of a Resident
Magistrate’s Court of Bankruptcy, or of a single Judge of
the Chief Court of Bankruptcy in respect of a matter of

court
vary orders.

Appeals.

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BANKRUPTCY

fact or of law, may appeal to the Court of Appeal, and it
shall be lawful for such Court to alter, or reverse, or con-
firm any such order as it sees fit, and if the order be in
respect of a matter of fact, to direct the rehearing of such
a matter of fact, either by a Resident Magistrate’s Court
or by the Chief Court, with or without a jury, in such man-
ner and on such terms as it sees fit. But no appeal shall be
allowed from any order relating to a matter of fact unless
the amount involved is not less than thirty thousand dollars. 3 f 9 9 5

(2) The judgment of the Court of Appeal upon
appeal shall be final, subject only to the right of appeal to
Her Majesty in Council. An appeal from Chambers shall be
made in the same way as an appeal from an order in Court.

Costs, Fees, etc.

make any such order regarding the costs of proceedings
pending before it as it sees fit.

U. Every Court having jurisdiction in bankruptcy may poMo

17

W. The fees to be charged for any business done under Fees,how
this Act shall be according to a scale to be prescribed by ableand
the Minister, who shall have power to direct by whom and app’icablc.
in what manner the same shall be collected, accounted for,
and appropriated. The Minister may, at any time, alter
the amount of any of the fees prescribed under this Act,
and notice of such alteration shall be given in the Gazette,
and the scale so altered shall come into operation at such
time as may be specified in such notice.

6xcd. pay-

Oficers in Bankruptcy
14.41) It shall be. lawful for the Governor-General to :El;&,

22/1993
s. 5. appoint-

(a) such person, other than the Administrator-General,
as he may see fit to be Trustee in Bankruptcy in the
Supreme Court and the Resident Magistrates’
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BANKRUPTCY

Courts throughout the Island who shall administer
the estates of debtors in bankruptcy subject to the
provisions of this Act, and any enactment relating
to bankruptcy; and

(b) such clerks and assistants as may from time to time
be necessary for the functions of the office of the
Trustee,

(2) The Minister shall provide the Trustee with a
suitable office in Kingston and all expenses of that office
including the salary of the Trustee and all expenses incurred
by him in the performance of his functions shall be defrayed
out of the Consolidated Fund.

Trustee in 15.-(1) The Trustee may, on such terms as to remunera-
his Bankrupsy: power tion and otherwise as may be prescribed, and with the
toappoint approval of the Court, appoint a proper person to act as
221 1993 his agent in respect of any estate vested in or administered
S. (a). by him under this Act, or in respect of any part of the

business thereof.
(2) No change of the Trustee shall affect any estate

or trust vested in or administered by the Trustee, but such
estates and trusts shall vest in or be administered by the
succeeding Trustee, who shall hold the same position with
regard to such estates and trusts as the former Trustee held.

(3) No proceedings pending on a changs of the
person holding the office of Trustee shall be affected by such
change, but may be continued by and against the succeeding
Trustee without suggestion, revival, or other similar
proceeding.

(4) The Trustee shall be entitled, on the grant of a
provisional order in bankruptcy, to a commission of six per
cent on all dividends of any estate or trust paid by him in
the administration of a bankrupt’s estate under this Act, and

agcnis. etc.

U/ 1993
S. (bh

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BANKRUPTCY

a commission of six per cent on all dividends of any estate
or trust paid by him (or sanctioned by the Court) in the
administration of a debtor’s estate under a deed of arrange-
ment under this Act.

19

(5) Such remuneration shall be for the time and
responsibility of the Trustee in the general administration
of the estate or trust, and the estate or trust shall not be
subject to any other charge in respect thereof, but any
expenses in respect of any other matters, including travel-
ling expenses relating to any estate or trust, may be charged
against the estate or trust in such manner and to such extent
as may be prescribed or specially sanctioned or allowed by
the Court.

(6) The word “dividends”, as used in subsection
(4), which provides that the Trustee shall be entitled to a W!IW
commission on all dividends of any estate or trust paid by
him, shall be deemed to include and to have included all pi1g3(E).
sums of money paid by the Trustee out of the net amount W/IM
realized of any such estate or trust in satisfaction in whole S. 6(c)(iii).
or in part of any debt or liability of the bankrupt or debtor :

Provided always, that nothing herein contained shall
entitle the Trustee to recover from any creditor of any such 22i1993
bankrupt or debtor, any sum of money which he has paid
to him and which, under the provisions of this Act, he
would have been entitled to retain.

S. 6(c)(i).

S. 6 (E) (iii).

(7) The Trustee shall be entitled to recover, as
a first charge on every estate or trust or the proceeds thereof,
all auctioneer’s fees and charges and other similar expenses
(the same having been duly taxed by the Registrar of the
Court) paid by him in and about the realization of any
estate under this Act.

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20 BANKRUPTCY

(8) The Trustee in Bankruptcy in the Supreme Court
shall have an office in Kingston.

Cornmis- 16. All commissions, fees and remuneration other than
mnd fees to salary payable to, or receivable by the Trustee under and

in pursuance of the provisions of this Act or under or in
dalcd Fund- pursuance of the provisions of any enactment amending or
3rd Sch. substituted for this Act shall, as the same are received by

him, be paid into the Treasury and shall form part of the
Consolidated Fund.

sions

be paid into

421 1969

17. [Repealed by Act 22 of 1993.1

18. When in the performance of the duties of his office
the Trustee has incurred any expense or made himself
liable to any claim or demand, and there is no fund out of
which he may or can lawfully reimburse himself in respect of
the same, then on any Judge of the Supreme Court or Resi-
dent Magistrate, as the case may be, certifying that such
expense was properly incurred or tha t such liability was pro-
perly undertaken as aforesaid, i t shall be lawful for the
Minister to order that such expenses shall be reimbursed out
of, or such liability be provided for from the Consolidated
Fund.

Reimburse-
men1 of
enpenscs of
Trusteein
Bankruptcy.
2211993
S. 9 (b).

PROCEEDINGS ON A BANKRUPTCY PETITION
As to who may present a petition and on what grounds

whomaybe 19. A single creditor or two or more creditors, if the
credllors, debt owing to such single creditor or the aggregate amount
andwhat re acts of of debts owing to such several creditors from any debtor
b a n b w t w amounts to a sum of not less than three thousand dollars,
22 / 1993 s. 10. may present a bankruptcy petition to the Court against a

debtor, alleging as the grounds of the petition any one or
more of the following acts or defaults, in this Act deemed
to be and included under the expression “acts of bank-

petmonmg

rup tcy”-
[The inclusion of &IS page is authonzed by L.N. 42/1995]

BANKRUPTCY

(a) that the debtor has, in Jamaica or elsewhere, made
a conveyance or assignment of his property to a
trustee or trustees for the benefit of his creditors
generally, or has executed any other instrument
whereby his property is made available for general
distribution amongst his creditors;

21

(b) that the debtor has, in Jamaica or elsewhere, made
a fraudulent conveyance, gift, delivery or trans-
fer, of his property or any part thereof;

(c) that the debtor has with intent to defeat or delay
his creditors, done any of the following things,
namely, departed out of Jamaica, or being out
of Jamaica remained out of Jamaica, or departed
from his dwelling-house, or otherwise absented
himself, or begun to keep house, or begun to sell
his stock-in-trade at an under-value;

(d) that the debtor has by any act declared himself
unable to meet his engagements;

(e) that the debtor has presented a bankruptcy
petition against himself;

V, that execution issued in Jamaica against the debtor
on any legal process for the obtaining payment
of any sum of money has been levied by seizure
and sale of his goods, or enforced by delivery of
his goods;

(g) that the creditor presenting the petition has Served
on the debtor a writ in an action in the Supreme
Court, or a summons in the Resident Magistrate’s
Court wherein the creditor claims payment of a
[The inclusion of this p g c is authorid by LN. 42/19951

22 BANKRUPTCY

liquidated sum amounting to not less than three
thousand dollars, and has also served on the debtor
in Jamaica in the prescribed manner, at or at any
time after the date of the service of the writ, or
summons, a bankruptcy notice in writing, in the
prescribed form, requiring him to pay the amount
endorsed upon such writ, or summons, and the
debtor has not within seven days after the service
of such notice paid the amount due to the creditor,
or secured or compounded for the same to the
satisfaction of the creditor, provided that no bank-
ruptcy petition shall be presented on the ground
of such last-mentioned act of bankruptcy unless
the creditor has obtained final judgment or final
order in the action for not less than three thousand
dollars within three months from the service of the
writ or summons;

(h ) that the creditor presenting the petition has
obtained h a 1 judgment or final order against the
debtor in an action in the Supreme Court, or in a
Resident Magistrate's Court, for a sum of not less
than three thousand dollars, and has served on the
debtor in Jamaica a bankruptcy notice in writing,
in the prescribed manner and form, requiring him
to pay the amount for which such judgment or
order has been obtained, and the debtor has not
within seven days after the service of such notice
paid such amount, or secured or compounded for
the same to the satisfaction of the creditor;

that the creditor presenting the petition, having
a demand against the debtor of not less than
three thousand dollars upon a negotiable security
for money upon which the debtor was primarily
liable, and upon which payment was at least four-
teen days overdue, served on the debtor in Jamaica

h-l

@ inclurion of this page is a u t h o r i d by LN. 42/.1995]

zSllY93 s. 10.

45 I1968
s. '2(a).
2311993 s. 10.

4S/1%8
S. 2(b).

2211993
s. 10.

4511968
s. 2(C).

2211993
s. 10.

BANKRUPTCY 23

a bankruptcy notice in writing, in the prescribed
manner and form, requiring him to pay the amount
of such debt and that the debtor has not within
seven days after the service of such notice paid
such amount or secured or compounded for the
same to the satisfaction of the creditor;

6) that the debtor has, in Jamaica or elsewhere, made
any conveyance or transfer of his property or any
part thereof, or created any charge thereon, which
would under any law relating to bankruptcy, be
void as a fraudulent preference if he were adjudged
bankrupt;

(k) that the debtor has, in the Gazette or in a daily
paper circulated in Kingston given notice of his
intention to convey, assign or transfer his stock-
in-trade, debts or things in action relating to his
business to any other person; and that the creditor
presenting the petition having a demand against
the debtor of a liquidated sum amounting to not
less than three thousand dollars has served on the ~ 1 1 ~
debtor in Jamaica a bankruptcy notice in writing,
in the prescribed manner and form, requiring him
to pay the amount of such debt, and that the debtor
has not within seven days after the service of such
notice paid such amount or secured or compounded
for the same to the satisfaction of the creditor;

(0 that the debtor has paid money to or given or
delivered any satisfaction or security for the debt
of a petitioning creditor, or any part thereof,
after such creditor has presented a bankruptcy
petition against him :

(i) that the alleged act of bankruptcy must have
occurred within six months before the presentation
of the petition;

'*.

Provided-

inclusion of this piw is authorized by L X 421 19931

24 BANKRUPTCY

451 19-58
S. 2(d).

(ii) that the debt of the petitioning creditor must be
a liquidated sum due or growing due at law or
in equity, and must not be a secured debt unless
the petitioner state in his petition that he will
be ready to give up such security for the benefit
of the creditors in the event of a provisional order
being made, or unless the petitioner give an
estimate of the value of the security, in which
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,
but he shall, on an application being made in the
course of the proceedings within the prescribed
time by any person interested, give up his security
to be dealt with as part of the property of the
debtor for the benefit of the creditors upon pay-
ment of such estimated value;

(iii) that any person who is for the time being entitIed
to enforce a final judgment or final order shall be
deemed a creditor who has obtained a final
judgment or final order within the meaning of this
section;

(iv) that where any debtor is absent from the Island,
any act done or suffered by any agent or manager
of the debtor managing any property, or engaged
in carrying on any business of the debtor in
Jamaica, which if such agent or manager were the
owner of the property or business would have con-
stituted an act of bankruptcy available against
such person, shall, in all cases be deemed to have
been expressly authorized by the debtor and shall
be available as an act of bankruptcy against the
debtor unless the authority of the agent or manager
shall be shown to have been exceeded.
[The mclurion of lhis page IS authorized b) L.N. 421 19951

BANKRUPTCY 25

20. A debtor may present a bankruptcy petition against Debtor’s
2711993
s 11.
petition himself stating the grounds on which the petition is made.

As to the verification of the allegations of a petition
21. Every petition presented by a creditor shall be Creditor’s

etmon.
ow to be accompanied by an affidavit of the petitioner in the pre-

scribed form verifying the statements contained in such v & f i d
petition.

22.-(1) Every petition presented by a debtor shall be Debtor’s
accompanied by a statement verified in the prescribed man-
ner of the debtor’s property, and of his debts and liabilities, r:;;any
and of his creditors, and of the value and dates of the same.
securities held by them, and of the dates when such securities
were actually given, together with a general statement of
the profits, losses and expenses of any business in which he
may have been engaged during the twelve months preceding
the presentation of the petition, and a memorandum
explanatory of the causes of his insolvency.

(2) No petition by a debtor against himself shall
be received unless accompanied by the statement required
by subsection (l), nor shall any order be made on any such
petition unless a copy thereof shall have been served on the
Trustee, and the Trustee shall apply for such order. Any
order made on such petition shall be an absolute order.

Appointment of Receiver
23. At any time after a petition has been filed the Court Appoint-

may order that the Trustee become the Receiver or Manager of
of the property or business of the debtor, or of any part zdT$:
thereof, and the Trustee shall thereon enter upon and act
in the performance of his office in relation to such property
or business at such time, and in such manner and to such
extent, as the Court may from time to time direct, and if

ment

[The inclusion of L61s page is authorized by LN. 42119951

26 BANKRUPTCY

directed by the Court, and so far as the nature of the case
will admit, do anything which might be done by the Trustee
after an absolute order for bankruptcy under this Act,
and shall, in relation to and for the purpose of acquiring or
retaining possession of the property of the debtor, and in
addition to any powers given to him by this Act, be in the
same position in all respects as if he were a Receiver
appointed by the Supreme Court, and the Court may on his
application enforce such acquisition and retention accord-
ingly.

As to Parzies to Proceedings under a Petition-
Companies, Partners, Firms

24. A company or other body incorporated or authorized
to sue, may present a petition and act in any proceedings
thereon by an agent duly authorized on its behalf.

25. Any two or more persons being partners may take
proceedings or be proceeded against under this Act in the
name of their firm, but in such case the Court may, on
application by any person interested, order the names of
the persons who are partners in such firm to be disclosed
in such manner, and verified on oath or otherwise, as the
Court may direct.

26. A provisional order or deed of arrangement under
this Act shall not be made against or by any partnership
association or company corporate or registered under the
Companies Act.

As to Comolidating, Staying, Adjourning, Continuing,
and Dismissing, Proceedings under a Petition

27. Where a petition is presented against a member of
a partnership whilst bankruptcy proceedings are pending
on a petition against another member of the same partner-

m e inclusion of this page is auihorid by L.N. 42/~1935]

= / I 5 9 3
S. 13.

Companies
may proceed
by agent.

Firms may
be named-
by their
style.

spec!al
provision

to Fcnain
mmpames.

Consoli-
dating
petitions

BANKRUPTCY 21

ship, the Court may give such directions for consolidating
the proceedings under the petitions as it thinks just.

28. When two or more bankruptcy petitions are presented Consoli-
against the same debtor or against joint debtors, the Court petiJions
may consolidate the proceedings, or any of them, upon such debtor.
terms as the Court thinks fit.

29. The Court may at any time for sufficient reasons Staying

dating

against same

make an order staying proceedings under a petition, either ,Frooccding+
altogether or for a limited time, on such terms and subject
to such conditions as the Court thinks just.

ditionally or unconditionally, for the procurement of further $3;
evidence or for any other just cause, or may dismiss the petlllons.
petition with or without costs as it thinks just.

gence on his petition, the Court may substitute as petitioner creditoras
any other creditor to whom the debtor may be indebted in
the amount required by this Act in the case of a petitioning dday.
creditor.

or against whom a provisional order has been made dies, though
the proceedings shall be continued as if he were alive.

30. The Court may adjourn any petition, either con- mjournbg

31. Where a petitioner does not proceed with due dili- S$$$ion
petitioner in

32. When a debtor by whom a petition has been presented E;h~$g3

debtor dies.

Provisional Order
33. It shall not be necessary to serve a petition or any z;;;,,~:~~
34. As soon as may be after the presentation of a petition Provisional

the court, if satkfied by ex parte evidence or otherwise in 14&,adc.
the case of a creditor’s petition of the petitioning creditor’s
debt and of the act or of one of the acts of bankruptcy
alleged, shall make on the petition an order, in this Act
referred to as a “provisional order”, that the affairs of the
debtor shall be wound up and hi5 property administered
under the law of bankruptcy.

notice thereof on the debtor. not he
served.

order when

p e inclusion of this p g e is authorized by L.N. 42/d993]

28 BANKRUPTCY

Service of 3541) Where a provisional order is made on a creditor‘s
petition, a copy of the order shall be served on the debtor
in the prescribed manner, together with a notice that within
a specified number of days the debtor may show cause why
the provisional order should be revoked.

(2) A certified copy of the provisional order referred
to in subsection (1) shall be served on the Trustee.

provisional
order.

2211993 ’’ l 4 ‘bX
Revocation
of pro-
visional
Order.

36. If the debtor, within the time appointed, shows to
the satisfaction of the Court that either the proof of the
pditioning creditor’s debt, o r of the act of bankruptcy,
is insuflicient, and if upon such showing no other sufficient
petitioning creditor’s debt or act of bankruptcy is proved,
or if any ground is shown to exist which would render the
making of a provisional order inequitable, the Court shall
revoke the provisional order, and unless it sees good cause
to the contrary shall order costs to be paid to the debtor.

Order lor 37.-(1) If the provisional order is not so revoked, an order
dehtortofi’e shall be served on the debtor, in the prescribed manner,
hisaffairs, requiring him to file in the Court, within the specified
thereof. number of days after the date of the service of the order,

a statement verified in the prescribed manner, and con-
taining the particulars specified in section 22, and giving
notice that if he does not do so the provisional order may,
on the application of a creditor or the Trustee, be made
an absolute order for bankruptcy, and that the bankruptcy
will be gazetted.

(2) A copy of the order served on the debtor pursu-
ant to subsection (1) shall be served on the Trustee.

38. If the debtor fails to comply with the order, or ta
show a suficient excuse for not having complied with it,
the Court may, on the application of any creditor or the
Trustee, make an absolute order for bankruptcy against
the debtor and direct such bankruptcy to be gazetted.

statomeni of

and scrvicc

1jl9~2
s. 2.

2211993 ’. Is ‘bX

Ahsolute

,,,482
5.2.

order for

[rhe inclusion of this page is authorized by LA. 42/:19951

BANKRUPTCY 29

39.-(1) When a provisional or an absolute order has Effectof
been made against a debtor, no creditor to whom the debtor staying
is indebted in respect cf any debt provable in bankruptcy r&y;gs
shall have any remedy against the property or person of the debts.
debtor in respect of such debt, except in manner directed
by this Act.

(2) All proceedings to recover any such debt shall, if
not already stayed, be stayed upon notice of such order being
given in manner prescribed, but the Court may on applica-
tion by any creditor or person interested, allow any pro-
ceedings commenced to be continued upon such terms and
conditions as it thinks just.

(3) The provisions of this section shall not a h t 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 the same if the section had
not been passed.

order aa to

40. The effect of the provisional order shall be deemed Relation
to have relation back to and to commence at the time of prov~ional
the act of bankruptcy being completed on which the pro- Order.
visional order is made, hereinafter referred to as “the
commencement of the bankruptcy”, or, if the debtor is
proved to have committed more acts of bankruptcy than
one, to have relation back and to commence at the time
of the first of the acts of bankruptcy proved to have been
committed by the debtor within six months next preceding
the date of the presentation of the petition; but the efTect
of the provisional order shall not relate to any act of bank-
ruptcy prior to the one on which such order is made, unless
at the time of committing such prior act the debtor was
indebted to some creditor or creditors in a sum or sums
sufficient to support a petition, and unless such debt or
debts are still remaining due at the date of the provisional
order.

back of

me inclusion of this jmge is authorized by L.N. 480119731

30 BANKRUPTCY

Debtor's
property.
when and
how
divisible.

Debtor's

when It vests
in Trustee,
and when
and how to
be adminis-
tered.

Propertyj

41. When a provisional order has been made against a
debtor, his property shall become divisible amongst his
creditors in proportion to the debts proved by them.

42. When a provisional order has been made against a
debtor, the property of the debtor shall immediately pass
to and vest in the Trustee, without any conveyance or assign-
ment or transfer whatever, to be by him in due course,
either under an absolute order for bankruptcy, or under a
deed of arrangement as hereinafter provided by this Act,
realized, administered and distributed with as much despatch
as is reasonably practicable for the benefit of the creditors :

Provided, that until the provisional order is made
absolute, it shall be the duty of the Trustee, as far as the
nature of the property seized permits, to preserve all such
property in such state as to permit of its being returned
to the debtor in the condition in which it was when it was
seized, in the event of the revocation of the provisional
order :

Provided always, that it shall be lawful for the Trustee,
before any such order is made absolute, to make sales of any
part of the debtor's stock-in-trade, or other property, and
take such other action in the interests of the debtor's estate,
as in the ordinary course of the debtor's business may seem
expedient.

Duty of 43. When a provisional or an absolute order has been
ajdTNstee, made against a debtor, it shall become the duty of the debtor

to the utmost of his power, so far as he may be required,
to aid in the realization of his property, and the distribution
of the proceeds amongst his creditors, and subject to the
provisions of this Act to submit to such examinations in
respect of his property or his creditors as the Trustee or the
Court may require, and to execute such powers of attorney,
conveyances, deeds and instruments, and generally to do all

debtor to

[lie inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY

such things in relation to his property, and the distribution
of the proceeds amongst his creditors, as the Trustee or
Court may reasonably require or as may be prescribed.

31

44. If the debtor wilfully fails to perform any of the duties w h e n
imposed on him by this Act, or if he fails to deliver up p,,&able
possession of any part of his property, which is divisible
amongst his creditors under this Act, and which may for ofcourt.
the time being be in his possession or control, to the Trustee
or any person authorized by the Court to take possession
thereof, 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.

debtor

Meeting of Creditors and Resolutions
45. The Court shall, as soon as practicable after the pro- ~ ~ t i ~ ~ i

visional order, summon a general meeting of the creditors whentobe
of the debtor; but if under any of the foregoing provisions summoned.
an absolute order for bankruptcy has been made against
the debtor before the day appointed for such meeting, the
meeting shall not be held.

creditors,

46. The meeting shall be held in the prescribed manner, Meeting,
and subject to the prescribed regulations as to the quorum
of creditors, adjournment of meeting, and all other matters :",U,$
relating to the conduct of the meeting, or the proceedings voting
thereat :

(a) a person shall not be entitled to vote as a creditor
unless he has in the prescribed manner proved a
debt that is due to him;

( b ) a creditor shall not vote in respect of any unliqui-
dated or contingent debt, or any debt the value
of which is not ascertained;

thereat.

Provided that-

me inclusion of this page is authorized by L.N. 480119731

32 BANKRUPTCY

(c) a secured creditor shall, for the purpose of voting,
be deemed to be a creditor only in respect of the
balance (if any) due to him after deducting the
value of his security; and the amount of such
balance shall, until the security is realized be
determined or assessed in the prescribed manner.
He may, however, give up or abandon the security,
and thereupon he shall rank as a creditor in respect
of the whole sum due to him;

(dl a creditor shall not vote in respect of any current
bill of exchange or promissory note held by him
under discount, unless he is willing to treat the
liability of every person who is liable thereon ante
cedently to the debtor, and whose estate is not in
course of administration under this Act, as
security in his hands, and to estimate the value
thereof and deduct the same from his proof, in
which case he shall, on application being made
within the prescribed time by any person interested,
give up such security for the benefit of the creditors
of the debtor upon payment of such estimated
value :

Provided, that such estimate (except so far as
the creditor may receive any payment as aforesaid
in respect thereof) shall not prejudice the right of
such creditor to receive from the estate of the
debtor a dividend upon the whole amount of such
bill or note;

(e) votes may be given either personally or by proxies
as may be prescribed.

Duty and
power of
Trusteeat
meeling.

47. The Trustee shall attend the meeting, and shall receive
and decide upon proof of debts in the prescribed manner,
and in so far as it may be necessary for determining the
right of voting at such meeting.

[The inclusion of this page is authorized by L.N. 480119711

BANKRUPTCY 33

48.-(1) At the meeting the creditors may, by the votes of Resolutions
at mecung. a majority in value of the creditors present, personally or

by proxy-
(a) resolve that the proceedings under the petition

be stayed, and the affairs of the debtor wound up
and his property administered under a deed of
arrangement, the nature of which may or may not
be specified in the resolution; or

(b) resolve that adjudication of bankruptcy be made;
and

(c) resolve, at their discretion, that a creditor to be
named at such meeting shall be associated with
the Trustee to assist and advise the Trustee in the
administration of the debtor’s estate, but the
appointment of such creditor shall not affect the
responsibility of the Trustee.

(2) A creditor so appointed shall receive out of the
debtor’s estate such remuneration for his services as the
Court may think fit.

proceedings, and reported by the Trustee to the Court.

no meeting is held, or no resolution come to.

petition be stayed, the Court shall make an order that the tion . for
proceedings be stayed accordingly for such time as may 2;;:.
be necessary to obtain the confirmation of a deed of arrange- ment
ment as hereinafter provided, and such order may be made
on such terms and subject to such conditions as the Court
may think just.

51. If no meeting is held, or if no resolution is come to, Absolute
or if the resolution be that adjudication of bankruptcy be bankruptcy,
made, or if it is shown to the satisfaction of the Court that z$,m be

49.-(1) The resolutions come to shall be filed with the Reportto
the Court

resolutions.
mta

(2) The Trustee shall report to the Court also in case

50. If the resolution be that the proceedings under the p r o d m
on resolu-

order for

[Thc incluson of this page is authonzed by L.N. 480119731

BANKRUPTCY--5

34 BANKRUPTCY

there is no reasonable probability of the confirmation of a
deed of arrangement and that delay will not be for the
benefit of the creditors, the Court shall make an absolute
order for bankruptcy against the debtor.

Proceedings under an Order for a Deed of Arrangement
Deed of 52. Where an order is made that proceedings in bank-
ment,hoa ruptcy against a debtor be stayed for such time as may be
executed, made, necessruy to obtain the confirmation of a deed of arrange
provedand ment, a deed may be entered into between a debtor and his

creditors, subject to the following provisions-
(a) the deed must be assented to by a majority in

number representing three-fourths in value of the
creditors of the debtor, and no creditor shall be
reckoned in such majority unless he has proved
his debt in manner prescribed.

The assent of a creditor shall be testified by his
signing the deed of arrangement, or some docu-
ment in a form prescribed for that purpose;

(b) the deed shall be acknowledged or proved in the
manner provided by the Probate of Deeds Act;

(c) when the deed has been executed by the debtor
an attested copy thereof shall be fled in the CourS

(4 there shall be filed with the deed-
(i) a list showing the debts and liabilities of

the debtor, and the time when the same were
contracted or incurred, and the considera-
tions, for the same, the names, residences,
and occupations of his creditors, and the
respective amounts due to them, and all
securities held by them, and the date when
such securities were respectively given;

(ii) a detailed statement of his debts and pro-
perty, and the estimated value thereof;

arrange-

filed.

me inclusion of this page is authorized by L.N. 480/19731

BANKRUPTCY 35

(iii) an affidavit in the prescribed form by the
debtor, or some person able to depose there-
to, verifying such list and statement;

(f, the list or statement may be from time to time
amended by leave of the Court, and every such
amendment shall be in like manner verified by
affidavit.

53. At the time appointed for the confirmation of the ensidera-
tlon of

thc court
deed, the Court shall on the application of any creditor dcedby
of the debtor take the deed into consideration.

54.-(1) No deed of arrangement shall be taken into Conditions
consideration by the Court until the debtor shall have sub- 2mz;,,,
mitted himself to the public examination of the Court, and
the Trustee shall have made a report to the Court as provi-
ded by section 71; and no such deed as aforesaid shall be
confirmed by the Court unless on a consideration of the
report as aforesaid it shall appear to be in the interest of the
creditors generally that it should be confirmed.

(2) All applications to confirm any deed as aforesaid
shall be made to the Judge before whom the public examin-
ation of the debtor was held, save as in section 72 (1)
provided in cases where the services of such Judge are not
available.

55. If there is no application to the Court to consider P r d
the deed, or if no deed has been filed, or if the Court does isnotcon-
not confirm the deed, the Court shall order that the med.
proceedings in bankruptcy shall forthwith continue from
the point at which they were stayed, or if it thinks fit may
order the adjournment of the consideration to allow time
for the execution of the deed or another deed.

when d s

56. If upon the consideration of the deed the Court is Proocoding
on satisfied that the requirements of this Act have been

complied with, it may in its discretion, by order, confirm psf
me indusion of tbis page is authorid by LN. 4800119333

36 BANKRUPTCY

Coniirrna-
tion of
deed con-
clusive as
to i ts
validity.

Administra-
tion of
estate
under
confirmed
deed.

Discharge
of debtor
when deed
carried out.

the deed, and may make such order as to the further staying
of any proceedings, or the annulling of any provisional
order under the petition, as it thinks fit.

57. The order of the Court confirming the deed shall
be conclusive evidence of the validity of the deed, and after
such order the deed shall not be liable to be impeached or
disturbed in any court on the ground of anything being
contained therein or omitted therefrom, or on any other
ground whatsoever except in manner provided by this Act.

58. If the deed is confirmed it shall be binding on all
creditors, and all questions under it shall be determined
by the Court according to the law of bankruptcy and every
creditor under the deed shall be entitled to be paid his debt
or, as the case may be, a dividend or composition t h e r m
ratably with the other creditors of the arranging debtor, but
all creditors who would be entitled to priority of payment
under an adjudication of bankruptcy against the arranging
debtor shall be entitled to the like priority under the deed,
and regard shall be had to the rule in bankruptcy as to the
application of joint or separate estate in payment of
creditors.

59.-(1) The Court may at any time after the confirm-
ation of the deed make an order for the discharge of the
debtor in accordance with the terms of the deed, or if there
are no terms relating to discharge then upon the report of
the Trustee that the arrangements under the deed have been
fully carried out.

(2) Such order shall, except in so far as may be
otherwise expressly provided in this Act, have all the effect
of an unconditional discharge of a bankrupt as hereinafter
mentioned made upon proceedings after an absolute order
for bankruptcy.

me inclusion of this page is authorized by L.N. 480/193]

BANKRUPTCY 37

60. If at any time after the confirmation of the deed it whendeed
appears to the Court that the debtor has not acted in good T&;zd
faith in relation to the bankruptcy proceedings before or ;$:Fa
under the deed, or is not assisting the Trustee to the utmost thereof.
of his power to administer the estate in accordance with
the terms of the deed, or that for other reasons it is
expedient or just, the Court may by order declare that the
deed so far as regards any release to the debtor therein con-
tained or provided for shall be void, and the deed shall
accordingly be void to such extent, and the Court may with-
out any further condition make an absolute order for bank-
ruptcy against the debtor, which shall take effect from the
time of the making thereof, provided that no act done in
pursuance of a deed which has been confirmed shall be
impeached or disturbed by reason of any such order, and
in the administration of the property of the debtor thereafter
regard shall be had to all payments made in pursuance of
the deed.

61. This Part shall apply to any case in which members of As to deeds
of arrange- a partnership enter into a deed of arrangement with their mentin

creditors under the provisions of this Act, and any such deed i"tn."f,,
of arrangement may be entered into with the joint creditors
without any of the separate creditors being parties to or
included in the deed, or with separate creditors without any
of the joint creditors being parties to or included in the
deed :

Provided, that in a distinct arrangement with any parti-
cular class of creditors the rule in bankruptcy respecting
the application of joint or separate estate to the payment
of creditors shall not be contravened.

62. Where a deed of arrangement is made by members ~ s t o a s e n t
of a partnership with their joint and separate creditors, crditorsh
any delay in obtaining, or failure to obtain, the assent of ;;;:&
some or one of the classes of separate creditors shall not

of certain

- me inclusion of this page is authorized by L.N. 480/19731

38 BANKRUPTCY

prevent the deed being confirmed so as to bind the joint
creditors and any other class of separate creditors.

A$ to debt 63. Where a debtor who has executed a deed of arrange-
incurred or incrcaxi oI ment has incurred or increased a debt or obtained forbear-
forborne, ance thereof by fraud, he shall be liable to pay to the
by means
of fraud. defrauded creditor the balance of such debt after deducting

any sum or sums which may have been received by such
creditor by way of composition or dividend under the deed,
provided that such creditor has not assented to the deed in
manner provided by this Act.

RishtsOf
creditors

third

not

64. No creditor of the arranging debtor, whether assent-
ing to the deed or not, shall be prejudicially affected by this
Part with respect to any right or remedy against any person
other than the arranging debtor.

against

parties

affected.

Ad-ktra.
tionaf

mnfirma-

dced.

65. When the deed of arrangement is confirmed, the
Trustee shall proceed to administer the debtor’s estate so
as to give full effect to the deed, and subject to the pro-
visions of this Act so far as the same may be applicable.

estate on

tion of

Proceedings under an Absolute Order for Bankruptcy

Examina-
tion of
debtor, and
into his
affairs.

66.-(1) When an absolute order for bankruptcy has been
made against a debtor the Court shall direct the adjudica-
tion to be gazetted, and shall direct a public sitting to be
held on a day to be named for the purpose of exarniniig
into the affairs of the debtor, and the debtor shall attend
at such sitting and shall submit himself to examination as
to his conduct, dealings and property.

(2) The sitting may be adjourned as often as the
Court thinks fit, and the debtor shall attend at each
adjourned meeting.

m e inclusion of this page is authorized by L.N. 480119731

BANKRUPTCY

(3) The Court may at such sitting take such evidence
as it thinks necessary, and such evidence as may be tendered
by the creditors, or the Trustee, or the debtor, or any of
them.

(4) For the purposes of the examination, the Court
may take evidence viva vuce, or by affidavit, or by interro-
gatories, or by commission, as it thinks fit.

(5 ) When the Court is satisfied that the debtor’s
affairs have been sufficiently investigated it may declare the
examination finished.

(6) On the public examination of the debtor under
this section the debtor shall be examined upon 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 and signed by the
debtor, and may thereafter be used in evidence against him;
they shall also be open to the inspection of any creditor at
all reasonable times.

39

67.41) If at any time after an absolute order for bank- Omissionto
ruptcy has been made against a debtor it appears to the
Court that the debtor, having been engaged in any trading ror;
or other business, has not kept and produced proper books whm and
of account, papers or vouchers, by means of which the able.
Trustee may be able to obtain a correct knowledge of his
affairs, it may if it thinks fit order the debtor to be im-
prisoned in some convenient prison for any period not
exceeding one year, unless. good cause is shown to the Court
why such books, papers and vouchers have not been kept
and produced.

(2) If the books of account in this section required
to be kept and produced shall not have been kept written
or printed in the English language, they shall not be deemed

how punirh-

me inclusion of this page is authonzd by L.N. 480/1973]

BANKRUPTCY

to be proper books of account within the meaning of this
section, unless for good cause shown by the debtor the Court
otherwise determines.

(3) For the purposes of this section a person shall
be deemed not to have kept proper books of account if he
has not kept such books or accounts as are necessary to
exhibit or explain his transactions and financial position
in his trade or business including a book or books containing
entries from day to day in sufficient detail of all cash received
and cash paid, and, where the trade or business has involved
dealings in goods, also accounts of all goods sold and
purchased respectively and statements of annual stock-
takings.

Debts 68. If at any time before an order of discharge is granted
breachof to a debtor it appears to the Court that the debtor has
tmor incurred or contracted any debt by means of a breach of
n e m o r trust, or without having had any reasonable or probable
gance,how ground of expectation at the time when he incurred or

contracted such debt of being able to pay the same, or that
he has lived extravagantly or beyond his proper means, it
may if it thinks fit order the debtor to be imprisoned in some
convenient prison for any period not e x d i g one year :

incurred by

reckless-

extrava-

far punish-
able.

Provided, that if in the opinion of the Court the conduct
of the debtor has rendered him liable to punishment for a
misdemeanour under this Act, it may direct the prosecution
of the debtor for such misdemeanour, and cause the Trustee
to prepare a statement of the case for the conduct of the
prosecution.

Administra-
tion of
debtor,s

order
absolute.

69. When an absolute order for bankruptcy has been
made against a debtor the Trustee shall proceed to administer
the debtor’s estate for the benefit of the creditors subject to
the provisions of this Act.

[The inclu,ion of this page is authorized by L.N. 480/1973]

BANKRUPTCY

Bankruptcy Proceedings against Estate of a Deceased
Debtor

41

70.41) Any creditor of a deceased debtor whose debt Proceedings
in bank- would have been sufficient to support a bankruptcy petition ruptEy

against such debtor, had he been alive, may present to the ; ~ ~ ~ ~ r ,
Court a petition praying for an order for the administra- ;E;!
tion of the estate of the deceased debtor according to the
law of bankruptcy.

(2) Upon notice being given to the legal personal
representative of the deceased debtor, the Court may, upon
proof of the petitioner's debt, unless the Court is satisfied
that there is a reasonable probability that the estate will
be sufticient for the payment of the debts owing by the
deceased, make an order for the administration in bank-
ruptcy of the deceased debtor's estate, or may upon cause
shown dismiss such petition with or without costs.

(3) An order of administration under this section
may be made at any time after the grant of probate or letters
of administration.

(4) A petition for administration under this section
shall not be presented to the Court after proceedings have
been commenced for the administration of the deceased
debtor's estate; but the Court in which such proceedings
have been taken may, in any such case in which it is made
to appear that the estate is insufficient to pay its debts, make
an order for the administration of the estate of the deceased
debtor in bankruptcy, and thereupon the like consequences
shall ensue as under an administration order made on the
petition of a creditor.

(5) Upon an order being made under this section
for the administration of a deceased debtor's estate, the
property of the debtor shall vest in the Trustee in Bank-
ruptcy, and he shall forthwith proceed to realize and

Isme inclusion of this page is authorized by L.N. 480119731

42 BANKRUPTCY

distribute the same in accordance with the provisions of
the laws of bankruptcy.

(6) In the administration by the Trustee in Bank-
ruptcy of the assets of any person pursuant to an order under
this section, the Court shall, on the petition of the Trustee,
have and exercise all the powers which, in the case of
administration of the assets by the Court, it would have,
under section 112, on the petition of a creditor or creditors.

(7) With the modifications hereinafter mentioned,
all the provisions of this Act relating to the administration
of the property of a bankrupt shall, so far as the same are
applicable, apply to the case of an administration order
under this section, in like manner as to an order of adjudica-
tion under this Act.

(8) In the administration of the property of the
deceased debtor under an order made under this section,
the Trustee shall have regard to any claim by the legal
personal representative of the deceased debtor to payment
of the proper funeral and testamentary expenses incurred
by him in and about the debtor’s estate, and such claims
shall be deemed a preferential debt under the order and
be payable in full, out of the debtor’s estate, in priority to
all other debts.

(9) If, on the administration of a deceased debtor’s
estate any surplus remains in the hands of the Trustee, after
payment in full of all the debts due from the debtor, together
with the costs of the administration and interest as provided
by this Act in case of bankruptcy, such surplus shall be paid
over to the legal personal representative of the deceased
debtor’s estate, or dealt with in such other manner as may
be ordered by the Court.

(10) Notice to the legal persona1 representative of a
deceased debtor of the presentation by a creditor of a
petition under this section shall, in the event of an order

[The inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY

for administration being made thereon, be deemed to be
equivalent to notice of an act of bankruptcy, and after such
notice no payment or transfer of property made by the legal
personal representative shall operate as a discharge to him
as between himself and the Trustee; save as aforesaid,
nothing in this section shall invalidate any payment made or
any act or thing done in good faith by the legal personal
representative before the date of the order for administration.

(1 I) “Court” in this section means any Court in which
the deceased debtor might immediately before his death have
been adjudicated bankrupt.

OF THE DISCHARGE OF A BANKRUPT
As to the Granting of a Discharge

43

71.-(1) It shall be the duty of the Trustee, as soon as Reportof
Trustee, its possible after the close of the public examination of the purport.

debtor, to make a report as to the state of the debtor‘s affairs,
and as to the conduct of the debtor both before and during
the bankruptcy, and shall note particularly any matters
which in his judgment might constitute offences under this
Act, or any enactment relating to bankruptcy, or which
would justify the Court under this Act in refusing, suspend-
ing or qualifying an order for the debtor’s discharge.

(2) Such report may be made, as to the bankrupt’s
affairs and estate, although, if the estate has not been fully
administered, the Trustee may be unable to speak precisely
as to details :

Provided, that in such a case, if it appear to the Court
or the Judge before whom the debtor’s examination was
held, material to do so with reference to an application on
the part of the debtor for an order of discharge, it shall be
lawful for the Court or Judge aforesaid to order the Trustee
to make a further and exact report, and in any case where

me inclusion of this page is nuhoriztd by L.N. 480/19731

44 BANKRUPTCY

the estate of the debtor shall have been fully administered,
the Trustee shall make a further and full report to the Court
as to the assets and liabilities of the debtor, and as to the
dividend paid.

Considera-
tionof

fordis-

and dealing order of discharge.

72.41) The.debtor may, at any time after the filing of
the report aforesaid, apply to the Judge hereinafter men-
tioned to appoint a day for hearing his application for an

(2) The Judge shall thereupon appoint a day and
place for hearing such application.

(3) The prescribed notice of the time and place
appointed shall be given in the prescribed manner.

(4) Any such application for an order of discharge
shall be made in open court, before the Judge before whom
the examination of the debtor was held unless such Judge is
ill, absent from the Island or otherwise incapacitated, in
which case it shall be made (in the case of the Supreme
Court) before another Judge, or (in the case of the Resident
Magistrate’s Court) before the locum tenens or successor
of such Judge:

Provided, that in the case last aforesaid, it shall be lawful
for such other Judge or locum tenens or sucoessor, to use
the notes of the Judge before whom the examination was
held, and to take such action upon them as the Judge him-
self might have taken under the provisions of t h i s Act.

(5) The Trustee or any creditor may oppose the dis-
charge and may show cause why it should be refused, or
postponed, or made subject to conditions.

(6) Whether any such opposition is made or cause
shown or not, the Court shall take into consideration the
report of the Trustee aforesaid, and may either grant or
refuse an absolute order of discharge, or suspend the

application

charge

with same.

m e inclusion oi this mge is authorized by L.N. 480/19731

BANKRUPTCY 45

operation of the order for a specified time, or grant an order
or discharge subject to any conditions with respect to any
earnings or income which may afterwards become due to the
debtor, or with respect to his after-acquired property :

Provided, that the Judge shall refuse the discharge in all
cases where the debtor has been convicted of a misdemean-
our under this Act, or any other misdemeanour con-
nected with his bankruptcy, or any felony connected
with his bankruptcy, unless for special reasons to be stated
in the order the Judge otherwise determines; and further
if, on a consideration of the report of the Trustee, or of
representations made by the Trustee or any creditor on the
hearing of the application, and of the Judge’s notes of the
examination of the debtor, and of the evidence (if any)
adduced at the hearing of the application, and after hearing
the debtor in support of the same, it shall appear to the
Judge that any of the facts hereinafter mentioned has been
proved, the Judge shall, either-

(a) refuse the discharge; or
( b ) suspend the discharge for a period of not less than

two years; or
(c) suspend the discharge until a dividend of not less

than fifty cents in the dollar has been paid to
the creditors; or

(d) require the debtor, as a condition of his discharge,
to consent to judgment being entered against him
by the Trustee for any balance, or part of any
balance, of the debts provable under the bank-
ruptcy which is not satisfied at the date of the
discharge, such balance, or part of any balance,
of the debts to be paid out of the future earnings
or after acquired property of the debtor in such
manner and subject to such conditions as the
Judge may direct; but execution shall not be issued
on the judgment without leave of the Court, which

m e inclusion of this page is authorized by L.N. 480119731

46 BANKRUPTCY

leave may be given on proof that the debtor has
since his discharge acquired property or income
available towards payment of his debts :

Provided, that if at any time after the expiration of two
years from the date of any order made under this section
the debtor shall satisfy the Court that there is no reason-
able 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 of any substituted order, in such manner
and upon such conditions as it may think fit.

(7) The facts hereinbefore referred to are- Facts on
which

refuse or

proof of

Judge may

suspend
order of
discharge
or make it

(U) that the debtor’s assets are not of a value equal
to fifty cents in the dollar on the amount of his
unsecured liabilities, unless he satisfies the Judge
that the fact that the assets are not of a value equal
to fifty cents in the dollar on the amount of his
unsecured liabilities has arisen from circumstances
for which he cannot justly be held responsible;

(b) that the debtor has omitted to keep such books of
account as are usual and proper in the business
carried on by him, and as sufficiently disclose his
business transactions and financial position within
the three years immediately preceding his bank-
mptcy;

(c) that the debtor has continued to trade after know-
ing himself to be insolvent;

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

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

condilional.

m e inclusion of this page is authorized by LN. 480/19731

BANKRUPTCY

(f, that the debtor has brought on, or contributed to,
his bankruptcy by rash and hazardous speculations,
or by unjustifiable extravangance in living, or by
gambling, or by culpable neglect of his business
affairs;

(g) that the debtor has put any of his creditors to
unnecessary expense by a frivoIous or vexatious
defence to any action properly brought against
him;

(h) that the debtor has, within three months preced-
ing the date of the act of bankruptcy, incurred
unjustifiable expense by bringing a frivolous or
vexatious action;

(i) that the debtor has, within three months preceding
the date of the act of bankruptcy, when unable to
pay his debts as they become due, given an undue
preference to any of his creditors;

Cj) that the debtor has, within three months preceding
the date of the act of bankruptcy, incurred
liabilities with a view of making his assets equal
to fifty cents in the dollar on the amount of his
unsecured liabilities;

( k ) that the debtor has on any previous occasion been
adjudged bankrupt, or made a composition or
arrangement with his creditors;

(0 that the debtor has been guilty of any fraud or
fraudulent breach of trust;

(m) that the debtor has carried on trade by means of
fictitious capital or by means of money raised or
obtained at excessive rates of interest or under any
plan or scheme involving the payment of excessive
interest, fines, premiums, commissions or bonus;

F e inclusion of this page is authorized by L.N. 480119731

47

48 BANKRUPTCY

(n) that he is indebted for damages recovered in any
action for malicious injury to the person, reputa-
tion or property, of the plaintiff' therein;

(0) that he has failed to deliver up to the Trustee all
books, papers, documents or writings, in his cus-
tody or under his control, or to disclose the name
of the person or persons in whose custody or under
whose control the same may be;

( p ) that his insolvency has arisen from rash or hazard-
ous conduct as a trader; or

(q) that he has wilfully failed to perform any of the
duties cast upon him by section 43.

(8) For the purposes of this section a debtor's assets
shall be deemed of a value equal to fifty cents in the dollar
on the amount of his unsecured liabilities when the Court
is satisfied that the property of the debtor has realized, or
is likely to realize, or with due care in realization might have
realized, an amount equal to fifty cents in the dollar on his
unsecured liabilities, and a report by the Trustee shall be
prima facie evidence of the amount of such liabilities.

(9) For the purposes of this section the report of the
Trustee shall be prima fucie evidence of the statements
therein contained.

(10) Notice of the appointment by the Judge of the
day for hearing the application for discharge shall be
published in the prescribed manner, and sent fourteen days
at least before the day so appointed to each creditor who
has proved, and the Judge may hear the Trustee, and may
also hear any creditor. At the hearing the Judge may put
such questions to the debtor and receive such evidence as he
may think fit.
.- me inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY 49

(11) The powers of suspending and of attaching
conditions to a debtor's discharge may be exercised con-
currently.

(12) A discharged bankrupt shall, notwithstanding
his discharge, give such assistance as the Trustee may
require in the realization and distribution of such of his
property as is vested in the Trustee. and if he fails to do so
he shall be guilty of a contempt of court; and the Court
may also, 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.

73, Where any application is by section 54 or by sections Appeal.
70 to 72 required to be made in the first instance to a single
Judge, an appeal shall lie from his order to the Court of
Appeal. . . .

grant it subject to any condition or conditions touching any charge.
salary, pay, emoluments, profits, wages, earnings or income,
which may afterwards become due to the bankrupt,. and
touching after acquired property of the bankrupt;and it
may order that the bankrupt shall thereafter pay to the
Trustee for the benefit of the creditors under the bankruptcy
such sum as may be stated in the order granting him his
discharge, but payment of such sum shall only be enforced
'against the debtor by leave of the Court, and to such extent

sequently the debtor should be adjudged bankrupt, or a
provisional order be made against him, the amount (if any)
remaining unpaid under any such order for payment shall
be postponed until the debts due to the creditors under such
subsequent bankruptcy or provisional order shall have been
fully paid or satisfied.

74. When the Court grants an order of'dkcharge it may Conditions
of dis-

. : ..
from time to time as the Court may approve, and .if sub- . . ,

[The inclusion of this page is authorized by L.N. 480119731

50 BANKRUPTCY

now fat
order of
discharge
IeIC88eS
debtor
from his
debts.

Does not
release part-
ner or joint
debtor.

How order
of dis-
charge
pleaded and
proved.

As to the Effect of an Order of Discharge
75. An order of discharge shall not release the bankrupt

from any debt or liability incurred by means of any fraud
or breach of trust, nor from any debt or liability whereof
he has obtained forbearance by any fraud, but it shall
release the bankrupt from all other debts provable under
the bankruptcy with the exception of-

(a) debts due to the Crown or to the Government of
Jamaica;

(b) debts with which the bankrupt stands charged at
the suit of the Crown, or of any person, for any
offence relating to any branch of the Public
Revenue, or at the suit of any public officer 011 a
bail bond entered into for the appearancc of any
person prosecuted for any such offence,

and he shall not be discharged from such excepted debts
unless the Accountant-General certifies in writing his con-
sent to his being discharged therefrom.

76. An order of discharge shall not release any person
who at the date of the order of adjudication was a partner
with the debtor, or was jointly bound, or had made any joint
contract with him.

77. An order of discharge shall be sufficient evidence of
the bankruptcy; and of the validity of the proceedings there-
on; and in any proceedings that may be instituted against
a bankrupt who has obtained an order of discharge in respect
of any debt from which he is released by such order, the
bankrupt may plead that the cause of action occurred before
his discharge, and may give this Act and the special matter
in evidence.

, me inclusion of this page is authorized by L.N. 480/19731

BANKRUPTCY

Administration of a Debtor's Estate by the Trustee
Duties and Powers of the Trustee

51

78. The Trustee under the control of the Court shall Etateof
administer the debtor's estate for the benefit of the creditors adminis debtor to be

Bred for
the bmd:
of hi.
creditors.

subject to the provisions of this Part.

79. The Trustee shall as soon as may be after the making T~~~ to
of a provisional order but subject to the directions of the F2Ession
Court, take possession of 4 property red and personal, ofdebtor'#
and all books, papers and documents, of the debtor, and
exercise such of the powers conferred on him by this Act
as may be necessary for the purpose of acquiring and retain-
ing possession thereof, and for the purpose of protecting
the rights of the creditors.

prom.

80. The Trustee shall to the best of his power discover TcUsfeet,,
reoover
debta. and recover all debts due to the debtor's estate.

81. The Trustee shall examine and verify the books,
examine
debtor's
books.

papers and vouchers relating to the debtor's affairs.

82. The Trustee may sell all or any part of the property powsrof
of the debtor (including the goodwill of the busmess, if any, Eyp
and the debts growing due to the debtor) by public auction property.
or tender, or private contract, and transfer the whole thereof
to any person or company, or sell the same in parcels, and
accept as the consideration for such transfer and sale a sum
to be paid or secured to be paid at such tinaeS and in such
manner as he t h i i fit.

83. The Trustee may carry on the trade of the debtor so ~~~f~
far as may be necessary or expedient for the beneficial zg!py
winding up or sale of the same, and for that purpose., or Ly
for the general management and realization of his property,
employ the debtor himself, or any other person or persons.

iDLusion of ~ is authorid by LN. 48011973l

52 BANKRUPTCY

Trustee’s

brmgor

84. The Trustee may bring, institute or defend, any action
or other legd proceeding relating to the property of the
debtor.

powerto

defend
actions.

May

dltIdends.

85. The Trustee may prove rank, claim and draw dividend,
recover in respect of any debt due to the debtor.

Trustee’s 86. The Trustee may refer any dispute to arbitration,
arblvate or compromise all debts, claims and liabilities, whether present
claim omp~omue of or future, certain or contingent, liquidated or unliquidated,
debtor subsisting or supposed to subsist between the debtor and

any person who may have incurred any liability to the deb-
tor, upon the receipt of such sums payable at such times and
generally upon such terms as may be agreed upon.

power to

Trustee’s 87. The Trustee may make such compromise or other
ulmpromise arrangemsnt as may be thought expedient with creditors,
against or persons claiming to be creditors, in respect of any debts
debtor. provable under the petition.

power to

Trustee’s 88. The Trustee may make such compromise or other
ulmpIomse arrangement as may be thought expedient with respect to
deblor.s any claim arising out of or incidental to the property of
P~OPW. the debtor, made or capable of being made on the Trustee

by any person, or by the Trustee on any person.

power to

claim as to

Powers of

as to

~s~~~~
0 r e X ~ -

89. The Trustee may exercise any powers and discretions
the capacity to exercise which is vested in the Trustee under
this Act, and may execute any powers of attorney, deeds
and other instruments, for the purpose of carrying into effect
the provisions of this Act.

Trustee

tmg deeds.

Trustee’s

estatestaii.

90. The Trustee may deal with any property to which
the debtor is beneficially entitled as tenant in tail in the
same manner as the debtor might have dealt with the same.

power as to

me inclusion of this page IS authorized by L.N. 480/19731

BANKRUPTCY 53

91. The Trustee shall receive and decide on proof of proofoi
debts.

92. The Trustee shall be deemed an accountmg party to T m t k
the Court, and shall be under the control and subject to the ~ ~ ~ o l
directions of the Court.

directions respecting his rights or duties with regard to the Courtfor
debtor’s estate, or with regard to any matters arising out dlrsalons
of the management or conduct of the estate.

Court or acting bum fide on such direction, shall be deemed, soch
so far as regards his own responsibility, to have discharged t;:2T
his duty therein as Trustee with regard to the matter in
respect of which such direction is given.

95.-(1) The Trustee shall keep in manner prescribed -steCto
proper books, in which he shall from time to time make or kccgbookr
cause to be made entries or minutes of such matters in
relation to the debtor’s estate as may be prescribed

(2) Any creditor of the debtor may, at such times
as may be prescribed, personally or by his agent inspect
such books.

%.-(1) All sums of money from time to hme received ~ m c y
rsdvsdte by the Trustee in the course of the administration of estates be depo$lM

of debtors shall forthwith or within such time as may be &y$kzzd
prescribed-

(a) be paid by the Trustee into a commercial bank to S. 16(a)
the credit of an account to be entitled “The Trustee
in Bankruptcy Account”; or

(6) be invested by the Trustee in securities issued by
the Government of Jamaica.

(2) Interest shall be allowed on such money in the
same way as interest is dlowed on deposits by executors, ,,1958
administrators and trustees under theTrustees, Attorneys ant3 S.2.

debts

of lhc
cam

93. The Trustee may at any time apply to the Court for Tnutacmay
aak the

94. The Trustee obtaining born frde direction of the -teem.
ing under

Loan Bank
a211993

Plw inclusion of this page 16 authonmd by L.N 42/119951

54 BANKRUPTCY

W I 1993
S 160.

AU moneys
to be paid
into Court
after two
years.

Audit of
TNSW’S
OoEOUlltC

TrUatsa
responsible
to the
Court.

Power of

caarnnle
TrusfM and
his bwka.

tour! to

Executors (Accounts and General) Act, except that there
shall be no limit of amount.

(3) A Trus t s shall, for the purposes of administering
any estate-

(a) withdraw from the commercial bank referred to
in subsection (1) any money standing to the credit
of the Trustee in Bankruptcy Account; or

(b) sell any securities purchased pursuant to subsec-
tion (1) (b),

and until any money so withdrawn or derived from the
sale of any securities, as the case may be, is applied to such
purposes as aforesaid the Trustee shall, subject to any order
of a court of competent jurisdiction, deal with such money
in accordance with such general or special directions as may
be given by the Minister :

Provided that a Trustee shall never expend the money of
one estate for the purposes of another estate.

97. The Trustee shall, at the expiration of two years from
the date of the provisional order, pay all moneys then in
hand, and all moneys thenceforth received by him, into Court
in manner prescribed, unless under special circumstances
the Court shall by order extend the time.
98. The Trustee shall submit his accounts for audit at

such times and in such manner as may be prescribed.
Control of the Court over the Administration of the

Debtor’s Estate by the Trustee
99. The Court shall examine all statements submitted to

it by the Trustee, and may order the Trustee to account for
any misfeasance, neglect or omission and to make good any
loss which the estate of the debtor may have sustained by
such misfeawnce, neglect or omission.
100. The Court may at any time require the Trustee to

answer any enquiry in relation to any matter in which he
is engazed, and may examine him, or any other person on

me rnclusion of this pge is authorized by LN 42/,19!W

BANKRUPTCY

oath concerning such matter, and may cause his bankruptcy
books, either generally or in relation to any particular estate,
to be examined by any person to be named by it.

55

101.-(1) If the Trustee at any time improperly neglects, Powerof
court to refuses or delays, to assume the management of any estate control

or trust under this Act, or if he improperly acts or omits ntmC.
to act in the management of any estate or trust vested in or
administered by him, or the duties of which he has entered
upon, or if he improperly neglects, refuses, or delays, to pay
forthwith the amount of any judgment, decree or order,
recovered against him, or if he pays the amount of any such
judgment, decree or order, out of any funds not properly
liable to such payment, or if he improperly acts or omits to
act in any other matter with respect to any estate or trust
vested in or administered by him, or with respect to any duty
imposed upon him by this Act, or if there is reasonable
ground to think that he is about improperly to act, or to
omit to act, with respect to any of the matters aforesaid,
any person interested in such estate, trust or matter may
apply to the Court for an order, requiring him to do, or to
refrain from doing, the act in respect of which such person
complains, and the Court may thereupon make such order
as it thinks fit.

(2) Such order may direct that the Trustee shall pay
out of his own pocket any sum of money required to a m -
pensate any person, estate or trust, for the consequences of
any wrongful act or omission of the Trustee or Receiver.

person, if aggrieved by any act or decision or estimate of
the Trustee, may apply to the Court, and the Court may Ftg,
confirm, reverse or vary, the act complained of, and may
make such order in the matter as it thinks just, and may
direct any question of fact or assessment of value or damage
to be tried by a jury.

102. The debtor, or any of the creditors, or any other A~ Lication
to tg,

__ me inclusion of thi €.age is authorized by L.N. 480/19731

56 BANKRUPTCY

Power of 103. Where the debtor refuses or neglects to do any act
Court to
enable m y in reference to the recovery, sale or transfer of, or otherwise
person to do
acu for the dealing with, any property remaining in him under this Act
debtor. in trust for his creditors, for twenty-four hours after he has

been required by the Receiver or Trustee to do the same,
the Court may, on application by the Receiver or Trustee,
by order authorize such act to be done in the name of the
debtor, or otherwise by any person named in the order for
that purpose, and every act done by such person shall be
as effectual for all purposes as if the debtor had done the
same, and shall not be revocable or impeachable by the
debtor.

DISTNBUTION F DEBTOR’S PROPERTY
General Provisions as to Property of Debtors

What the

thedebtor creditors and vestkg
cOmPrlses

shall comprise-
(a) aU such properly as may belong to or be vested in

the debtor at the commencement of the bankruptcy,
or may be acquired by or devolve on him at any
time previously to his discharge; and

( b ) 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
debtor for his own benefit at the commencement of
the bankruptcy, or at any time previously to his
discharge; and

(c) all goods and chattels being a t the commencement
of the bankruptcy in the possession order or dis-
position of the debtor by the permission of the true
owner, of which goods and chattels the debtor is
reputed owner, or of which he has taken upon
himself the sale or disposition as owner, provided

104. The property of the debtor divisible amongst his
the Trustee, and in this Act referred property of

to as the property of the debtor;

m e inclusion of this page 1s aulhoriud by LN. 480119731

BANKRUPTCY

that things in action, other than debts due or
growing due to him, shall not be deemed goods and
chattels within the meaning of this section; and

shall not comprise-
(6) property held by the debtor in trust for any other

person; or
(e) the tools (if any) of his trade, and the necessary

wearing apparel and bedding of himself, his wife
and children to a value, inclusive of tools and
apparel and bedding, not exceeding sixty dollars
in the whole.

51

Special Provisions as to Certain Kinds of Property
of Debtor

105. Where a debtor is in the enjoyment of any salary, ~ppropria-
pension or allowance, paid by the Government of this Island, portionof
the Trustee shall receive for distribution amongst the $E;*
creditors so much of the debtor’s salary, pension or payableby
allowance, as the Court upon application of the Trustee ment.
thinks just and reasonable, to be paid in such manner and
at such times as the Court directs.

tion of

Govern-

106. Where a debtor is in the receipt of a salary or income Appropna-
other than as aforesaid, the Court upon the application portionof
of the Trustee shall from time to time make such order as ~~~~~~y
it thinks just for the payment of such salary or income, or
of any part thereof, to the Trustee, to be applied by him
in such manner as the Court may direct.

tion of

107. Any treasurer or other offier, or any banker, Deliveryto
attorney or agent of a debtor, shall pay and deliver to the moneyand
Trustee all moneys and securities in his possession or power, g$i:m Of
as such officer or agent, which he is not by law entitled to
retain as against the debtor or the Trustee or Receiver.

Trustee of

m e inclusion of th is page is authorized by L.N. 480119731

58 BANKRUPTCY

Transferof

shares,etc,

108. Where any part of the property of the debtor con-
sists of stock, shares in ships, shares or any other property
transferable in the books of any company, office or person,
the right to transfer such property shall be absolutely vested
in the Trustee to the same extent as the debtor might have
exercised the same if a petition had not been filed against
or by him.

109.--(1) Where any part of the property of the debtor
consists of land of any tenure burdened with onerous cove-
nants, of unmarketable shares in companies, of unprofitable
contracts, or of any other property that is unsaleable, or not
readily saleable, by reason of its binding the possessor there-
of to the performance of any onerous act, or to the payment
of any sum of money, the Trustee, notwithstanding that he
has endeavoured to sell, or has taken possession of such pro-
perty, or exercised any act of ownership in relation thereto,
may by writing under his hand disclaim such property, and

, upon the execution of such disclaimer the property disclaim-
ed shall if the same be a contract be deemed to have
determined at the date of the filing of the bankruptcy
petition so far as regards the interest of the debtor therein,
and the liability of himself and property and of the Trustee
thereunder, and if the same be a lease to have determined at
the same date, so far as regards the interests of the debtor
therein, and the liability of himself and his property and the
Trustee to the performance of the covenants and the con-
ditions thereof, and if the same be shares in any company to
have been forfeited at the same date; and whatever be the
nature of the property it shall (unless the Court otherwise
order) pass to the person (if any) entitled thereto on the
determination of the estate or interest of the debtor therein,
and in no case shall any estate or interest or liability therein
or thereunder remain in the debtor.

stocks,

Onerousand

propertyof

pOMrof

Trustee disclaim to
same.

dlsdaimer.

unprolitabla

debtor.

ER ect of

(2) Such disclaimer shall not prejudice the rights or
remedies or affect the obligations of any person other than

me inclusion of k s jmge 1s authorized by L.N. 480119731

BANKRUPTCY 59

the debtor and the Trustee and the Court may, on applica-
tion made by any person claiming any interest in the dis-
claimed property, and upon hearing such persons as it thinks
fit, make an order for the vesting of the same property in or
delivery thereof (together with any deeds or documents
relating thereto) to any person or persons entitled thereto,
OT a trustee for him or them, and upon such terms as the
Court may think just, and upon any such vesting order being
made the property comprised therein shall vest according
to the tenor thereof in the person or persons therein named
in that behalf, without any conveyance or assignment for the
purpose.

(3) Any person injured by the operation of any such
disclaimer as aforesaid shall be deemed to be a creditor of
the debtor to the extent of such injury, and may accordingly
prove the same as a debt under the bankruptcy petition.

110. The Trustee shall not be entitled to disclaim any Lidtto
property in pursuance of this Act in any case where an $gty
application in writing has been made to him as Trustee, by disclaim.
any person interested in such property, requiring such
Trustee to decide whether he will disclaim or not, and the
Trustee has for a period of not less than twenty-eight days
after the receipt of such application, or such further time
as may be allowed by the Court, declined or neglected to
give notice whether he disclaims the same or not.

Special Provisions as to the Benefit of Transactions
Affecting the Debtor and his Property

111.-(1) Any settlement of property not being a settle- cz;g,b
ment made before and in consideration of marriage, OT howfar
made in favour of a purchaser or incumbrancer in good agabt
faith and for valuable consideration, or a settlement made TNstec~
on or for the wife OT children of the settlor of property
which has accrued to the settlor after marriage, in right of

void as

m e inclusion of this page is authorized by L.N. 480/39731

60 BANKRUPTCY

his wife, shall, if a provisiond order in bankmptcy, or an
absolute order in bankruptcy in cases where no provisional
order is made, take effect against the settlor within two
years after the date of the settlement, be void against the
Trustee, and shall, if the settlor becomes bankrupt at any
subsequent time within ten years after the date of the settle
ment, be void against the Trustee 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 with-
out 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 by any person
in consideration of marriage, for the future settlement upon
his 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, if a provisional order, or an absolute order in bank-
ruptcy in cases where no provisional order is made, take
effect against him before such money or property has been
actually transferred or paid pursuant to such contract or
covenant be void against the Trustee.

(3) “Settlement” shall for the purposes of this
section include any conveyance, gift or transfer of property.

Extensionof 112. In the administration by the Court of the assets of
any deceased person, it shall be lawful for the Court, on the

certain voluntary petition of any creditor or creditors of such deceased person
settkmnb, whose claim, or claims together, against the estate would
etc.. as
againsttix have been sufficient to support a petition in bankruptcy
,eprescnt.-
tivesof against such person had he not died, and on proof that the
deEad a ttlors assets of such person were at the time of his death insu&
whose cient to pay his debts and liabilities in full, to order that
insolvent. any settlement of property made by such deceased person

Power to
avoid

estates arc

inclusion of this paae is authorized by LN. 480/19731

BANKRUPTCY

within the meaning of the last preceding section and except
as therein excepted, or any conveyance or transfer of
property or charge thereon, or any payment, obligation or
judicial proceeding, made, incurred, taken or suffered by
such person, he being at the time of making, taking, paying
or suffering, the same, unable to pay his debts as they become
due from his own moneys, in favour of any creditor or any
person in trust for any creditor, with a view of giving such
creditor preference over the other creditors, and which
settlement, conveyance, transfer, charge, payment, obliga-
tion or judicial proceeding, would have been void against
the Trustee in Bankruptcy if a provisional order had taken
effect against such deceased person at the moment of his
death, shall be void as against the executor, administrator,
receiver or other person, charged with the administration
of the assets of such deceased person :

61

Provided that such petition shall be presented within six
months after the death of such deceased person :

Provided also that the proper funeral and testamentary
expenses, incurred by the legal personal representative in
and about the deceased person’s estate, shall be deemed a
preferential debt, and the payment thereof by the legal
personal representative shall be valid, or, if the same have
not been paid at the time of the making of any order under
this section, they shall be payable in full out of the debtor’s
estate, in priority to all other debts :

Provided also, that nothing herein shall be deemed to
make the legal personal representative of such deceased
person personally liable in respect of any payment made, or
act or thing done, in good faith before the date of the order
for the administration of the assets of such person by the
Court.

me inclusion of this page is authorized by LN. 480/19131

62 BANKRUPTCY

Voluntary
expenditure
of moneys
on iht
property
of another
to be
deemed a
settlement
if order in
bankuptcy
takes effect
within two
years
against
the person
so expend-
ing the
same.

Rankruptcy
ofafirmor
of one or
more part-
ners. effect
thereof on
the partner-
ship asset8
and on the
property of
each
partner.

113. The voluntary expenditure of any moneys by any
person in building or making permanent improvements on
the property of another shall be deemed to be a settlement
of such moneys on such other person within the meaning of
section 111, and if an order in bankruptcy, as mentioned in
the said section 111, take effect against the person making
such expenditure within two years from the date of such
expenditure the Trustee shall be entitled to recover, from
the owner of the property benefited by such expenditure, an
amount equal to the increase in the value of such property
brought about by such expenditure, and shall have a lien
on such property for such amount, and on the proceeds
thereof if the same have been sold :

Provided always, that such lien shall not prevail against
a bum fide purchaser for valuable consideration who at the
time of the purchase, either had no notice of such expendi-
ture as aforesaid, or if he had such notice had no notice of
an act of bankruptcy on the part of the person making the
same, available for adjudication against him.

114.-(1) When a provisional order has been made against
a firm of partners, all the separate property of each of the
bankrupts as well as all the joint property of the partner-
ship, shall immediately pass to and vest in the Trustee.

(2) Where a provisional order has been made
against one partner in a firm, there shall pass to the Trustee
as well the separate property of such partner as the share to
which, as between himself and his partners, the bankrupt is
entitled in the assets of the firm after paying or providing for
all the liabilities. For the purpose of ascertaining such share,
the accounts of the firm shall be taken in such manner as
the Court may direct.

(3) In the case of bankruptcy of partners, or of any
member of a partnership firm, the joint estate shall be applic-

m e inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY 63

able 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 rights and interest of each partner in
the joint estate.

115.-(1) Every conveyance or transfer of property, or Fraudulent
preferences. charge thereon, every payment, every obligation, and every

judicial proceeding, made, incurred, taken or suffered, by
any person unable to pay his debts as they become due from
his own moneys, in favour of any creditor or any person in
trust for any creditor, with a view of giving such creditor
a preference over the other creditors, shall, if a provisional
order take effect against the person making, taking, paying
or suffering the same within six months after the date of
making, taking, paying or suffering the same, be deemed
fraudulent and void as against the Trustee.

or personal, made by any person unable to pay his debts to to a~rustee
any other person in trust for any creditor shall be absolutely
void unless the same were made and executed with the assent :zz,fm
of three-fourths in number and value of the creditors of
such person.

(2) Every conveyance or transfer of property, real Convey-
ances

116. Every conveyance, assignment, transfer, sale or convey-
disposition made by any trader unable to pay his debts, of assignment,
his stock-in-trade, debts or things in action relating to his stock-in-
business or any part thereof, otherwise than in the ordinary trade*ctc.
way of business, to any other person shall, if a provisional
order or an absolute order take effect against the person
making the same within six months after the date of making
the same be deemed fraudulent and void as against the
Trustee; unless the same were made and executed with the

ance,

etc., of

me inclusion of this page is authorized by L.N. 480/1973]

64 BANKRUPTCY

assent of three-fourths in number and value of the creditors
of such person; or unless the same were made and executed
after not less than twenty-one days’ notice in the Gazefte
and in a daily paper printed and published in Jamaica of the
intention of the trader to make such conveyance, assignment
or transfer, sale or disposition.

4211969
3rd Sch.

Entry of
vacatur on
marein of
recohed
deed
declared
boid.

Proceeds of
executions
against
debtor.

Delivery of
goods taken
in execution
but not sold.

How far
creditor
entitled to
benefit of
execution
or attach-
ment
against
debtor.

117. When any deed is declared void under the provisions
of this Act, the Court shall direct the Deputy-Keeper of the
Records to enter a note of such decree on the margin of any
deed to which it relates that may be recorded in the Record
Office.

118. When the goods of a person have been taken in
execution in respect of a judgment and sold, the bail8 or
officer executing the process shall, if he have notice of a
petition filed by or against such person, hold the balance of
the proceeds of the sale, after deducting expenses, upon
trust to pay the same to the Trustee or other person entitled
thereto under the petition.

119. When the goods of a person have been taken in
execution in respect of a judgment, and not sold before the
bailiff or officer executing the process receives notice of the
appointment of a receiver or trustee under a bankruptcy
petition presented against or by such person, such officer
shall forthwith after receipt of the notice deliver up such
goods to the Receiver or Trustee, and the costs incurred by
such officer in respect of such execution shall be paid out of
the property of the debtor.

120. A creditor who has levied execution on the property
of a debtor, or has made an attachment thereof, shall not
be entitled to retain the benefit of such execution or attach-
ment unless and except in so far as he has, before the filing
of a petition against or by such debtor, enforced such

m e inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY 65

execution by sale of the property seized, or enforced such
attachment by actual possession of the moneys attached or
(as the case may be) by sale of the property attached.

121. [Repealed by Act 15 of 1979, 2nd Sch.1

122. Subject to the provisions of this Act relating to the Protection
proceeds of the sale of goods which have been seized, and b,,afidc
to the provisions of this Act and every other enactment ~~~~
avoiding, on the ground of their being fraudulent, certain mptbefo=
settlements, conveyances, transfers, charges, payments, gd.
obligations and judicial proceedings, the following dealings
and transactions relating to the property of the debtor, if
they take place before the filing of the petition, shall be
valid notwithstanding any prior act of bankruptcy com-
mitted by the debtor, that is to say-

(a) every payment by the debtor to any of his creditors
and every payment or delivery to him; and

(b) every conveyance, sale or assignment for valuable
consideration by and with him; and

(c) every execution and attachment against his goods
and chattels executed and levied by seizure and
sale :

of certain

tition

Provided that the person to, by or with whom such pay-
ment, delivery, conveyance, assignment, sale contract,
dealing or transaction, was made, executed or entered into,
or at whose suit or on whose account every such execution or
attachment was issued, had not at the time of such pay-
ment, delivery, conveyance, assignment, contract, dealing
or transaction, or at the time of the executing or levying of
such execution or attachment, or at the time of the making
of any sale thereunder, notice of any act of bankruptcy

me inclusion of this page is authorized by L.N. 57/1980]

66 BANKRUPTCY

What debts
are and
what are
not provable
against
debtor’s
estate.

committed by the debtor and available for adjudication
against him at the time of the filing of the petition.

Debts Provable Against the Debtor’s Estate

l23.-(1) Demands in the nature of unliquidated damages
arising otherwise than by reason of a contract or promise
shall not be provable under a bankruptcy petition, and no
person having notice of any act of bankruptcy available for
adjudication against the debtor shall prove for any debt or
liability contracted by the debtor subsequently to the date
of his so having notice, unless the Court is of opinion that
the property of the debtor has been benefited or increased,
or that his debts or liabilities have been diminished, by the
payment of the money or execution of the contract upon
which the debt or liability sought to be proved has arisen.

(2) Save as aforesaid, all debts and liabilities, pre-
sent or future, certain or contingent, to which the debtor is
subject at the date of the provisional order, or to which he
may become subject by reason of any obligation incurred
previously to the date of the order, shall be deemed to be
debts provable under a bankruptcy petition in pursuance
of this Act.

Estimateof

debtsof uncertain
value.

124. An estimate shall be made by the Trustee, according
to the rules of court for the time being in force so far as
the same may be applicable, and where they are not appli-
cable at the discretion of the Trustee, of the value of any
debt or liability provable which by reason of its being sub-
ject to any contingency or contingencies or for any other
reason does not bear a certain value.

Liability 125. “Liability” shall for the purposes of this Act
defined. include any compensation for work or labour done, any

me inclusion of this page is authorized by LN. 57/1980]

BANKRUPTCY

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 such
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 engage-
ment, agreement or undertaking to pay, or capable of result-
ing in the payment of money or money’s worth, whether
such payments be-

ta) as respects amount, fixed or unliquidated, and
payment in one sum or by instalments, or period-
ical payments;

(b) as respects time, present or future, certain or
dependent on any one contingency, or on two or
more contingencies;

as to mode of valuation, capable of being ascer-
tained by fixed rules, or assessable only by a jury,
or as matter of opinion.

(d

67

126. Interest on any debt provable under this Act may InttTEItQI1
be allowed under the same circumstances in which interest &ba
would have been allowable by a jury if an action had been
brought for such debt.

127.41) Where a debt has been proved and the debt rntercston
debt% how includes interest or any pecuniary consideration in lieu of

interest, or in the nature of premiums, fines, bonus or com-
missions, such interest or consideration shall, for the pur-
pose of dividend, be calculated at a rate not exceeding six
per centurn per annum, without prejudice to the right of
a creditor to receive out of the estate any higher rate of

[The inclusion of this page is authoPized by L.N. 57119801

68 BANKRUPTCY

interest to which he may be entitled after all the debts proved
in the estate have been paid in full.

(2) In dealing with the proof of the debt the follow-

(a) any account settled between the debtor and the
creditor within three years preceding the date of
the provisional order may be examined, and, if it
appears that the settlement of the account forms
substantially one transaction with any debt alleged
to be due out of the debtor's estate (whether in
the form of renewal of a loan or capitalization of
interest or ascertainment of loans or otherwise),
the account may be reopened and the whole
transaction treated as one;

ing rules shall be observed-

(b) any payments made by the debtor to the creditor
before the provisional order whether by way of
bonus, premium, fines, commissions, or otherwise,
and any sums received by the creditor before the
provisional order from the realization of any
security for the debt, shall, notwithstanding any
agreement to the contrary, be appropriated in the
first place to the satisfaction of interest at a rate
not exceeding six per centum per annum as in this
section previously provided, and thereafter to the
satisfaction of the principal,

(c) where the debt due is secured and the security is
realized after the provisional order, or the value
thereof is assessed in the proof, the amount realized
or assessed shall be appropriated in the first place
to the satisfaction of interest at a rate not exceeding
six per centum per annum as in this section pre-
viously provided, and thereafter to the satisfaction
of the principal.

me inclusion of this page is suthorized by L.N. 57/1980]

BANKRUPTCY 69

128.41) Where a married woman has been adjudged Postpone-
bankrupt, her husband shall not be entitled to claim any busbad’s
dividend as a creditor in respect of any money or other zfzze’s
estate 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.

ment of

(2) Where the husband of a married woman has
been adjudged bankrupt, any money or other estate of such
woman lent or entrusted by her to her husband for the
purpose of any trade or business carried on by him or other-
wise, 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 estate until all claims
of the other creditors of her husband for valuable considera-
tion in money or money’s worth have been satisfied.

129.-(1) A secured creditor may on giving up his security secured
prove for his whole debt, or he may prove for any balance
due to him after realizing or giving credit for the value of m a y p r w .
his security in manner and at the time prescribed.

creditors,
how they

(2 ) A secured creditor not complying with the fore-
going conditions shall be excluded from proof.

130. If the debtor is at the date of the provisional order ptwfsin
respect of liable in respect of distinct contracts as a member of two dist,nct

or more distinct firms, or as a sole contractor and also as a Z;:;zin
joint contractor, the circumstance that such 6rm.s are in capaatier.
whole or in part composed of the same individuals, or that
the sole contractor is also one of the joint contractors, shall
not prevent proof in respect of such contracts against the
properties respectively liable upon such contracts.

me inclusion of tbii page is authonzed by L.N. 57/1980]

70

Mutual
dealings .ad
setoff.

May prove
for propor-
tion of
rent to date
of pro-
visional
order.

N o i h of
dividend.

CalculatIrm
and distri-
bution of
divided.

BANKRUPTCY

131. Where there have been mutual credits, mutual debts,
or other mutual dealings, between the debtor and any person
having a debt provable under the bankruptcy petition, 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 such account, and
no more, shall be proved or paid on either side respectively.

132. [Repealed by Act I5 of 1979, 2nd Sch.1

133. When any rent or other payment falls due at stated
periods, and the provisional order is made at any time other
than one of such periods, the person entitled to such rent
or payment may prove for a proportionate part thereof up
to the date of such order as if such rent or payment grew
due from day to day.

Distribution of Assets and Dividends

134. Before declaring a dividend the Trustee shall cause
a notice to be gazetted, stating the day on which the
dividend is intended to be declared, and, except as herein-
after provided, those debts only in respect of which proof
has been made or tendered before that day shall be allowed
to participate in the dividend.

135. In the calculation and distribution of a dividend
it shall be obligatory on the Trustee to make provision for
debts provable under this Act appearing from the debtor’s
statements, or otherwise, to be due to persons resident in
places so distant from the place where the Trustee is acting
that in the ordinary course of communication they have
not had sufficient time to tender their proofs, and also for
debts provable under the bankruptcy petition which have

me incllusion of this page is authorized by LN. 57/1980]

BANKRUPTCY

been notified to him in manner prescribed, and are subject
of claims not yet determined, and on such debt being
established the creditor shall be entitled to receive the divi-
dend reserved thereon.

71

136. Creditors may prove their debts in manner pre- --of
scribed, and creditors who have not proved their debts whoprom
before the declaration of any dividend or dividends shall, e d m d .
on the occasion of the next dividend being declared, be
entitled to be paid any dividend or dividends they have
failed to receive before any moneys are made applicable to
the payment of any other dividend or dividends, but they
shall not be entitled to disturb the distribution of any divi-
dend declared before their debts were proved, by reason
that they have not participated therein.

crediton

137.-(1) When all the property of the debtor from which F~MI
any moneys available for division amongst the creditors can notioD
in the opinion of the Trustee be reasonably expected to arise *uWf.
has been realized, the Trustee shall declare a final dividend.

(2) Before so doing he shall give notice in manner
prescribed to the persons whose claims to be creditors of fhe
debtor have been notified to him, and not established to his
satisfaction, that if they do not establish such claims to the
satisfaction of the Court within a time to be limited for
that purpose by the notice he will proceed to make h a l
division of the property without regard to such claims.

(3) After the expiration of such time, or if the
Court on application by any such claimant grants further
time to him for establishing his claim, then on the expiration
of such further time the property of the debtor divisible
amongst the creditors shall be divided amongst the creditors
who have proved their debts without regard to the claims
of any other person.

dividend.

inclu?im of h a page is autbonzed by LN. 55/19831

72 BANKRUPTCY

How
dividend
recoverable
if not paid.

Preferential
debts.

111982
s. 3.

38/1965
s. 51
7th Sch.

3811965
S. 51
7th Sch.
3111914
s. 19.

138. No action shall lie for a dividend, but if the Trustee
having control of any dividend refuses to pay the same the
Court may if it thinks fit order him to pay the same, and
also to pay out of his own moneys interest thereon for the
time that it is withheld, and the cost of the application.

Rules as to Priority of Payment
139.--(1) The debts hereinafter mentioned shall be paid

in priority to all other debts, and between themselves such
debts shall rank equally, 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 proportion between
themselves, that is to say-

(a) all public taxes imposed by law due from the debtor
at the date of the provisional order not exceeding
in the whole one year’s taxes;

(6) all wages or salary of any clerk or servant in
respect of serviw rendered to the debtor during
four months next preceding the date of the provi-
sional order, not exceeding one thousand six hun-
dred dollars;

(c) all wages of any labourer or workman in respect
of services rendered to the debtor during four
months next preceding the date of the provisional
order;

(d) contributions payable pursuant to the National
Insurance Acs

(e) redundancy payments payable under the Employ-
ment (Termination and Redundancy Payments)
Act; and

(0 all amounts by way of contributions for which the
debtor is liable pursuant to sections 11 and 12 of
the National Housing Trust Act and which have
become due and payable.

(2) Save as aforesaid, all debts provable under the
petition shall be paid pan’ passu.

me inclusion of #his pas0 is authorized by LN. 55/19831

BANKRUPTCY 73

140. If a provisional order is made against one member Credltornof
of a partnership, a creditor to whom that partner is indebted ~~~~~~
jointly with the other partners of the firm or any of them f2;ad;
shall not receive any dividend out of the separate property creditorsof
of the first mentioned partner until all the separate creditors
have received the full amount of their respective debts.

debtors

As to Payment to the Debtor
141. The Trustee may from t h e to t h e make such allow- Allowanm

ance as he thinks just to the debtor out of his property for ~~~~~~~
the support of the debtor and his family, or in consideration SeMCeS.
of his services if he is engaged in winding up his estate, but
such allowance may be revised by the Court, and where no
allowance has been made the Court may on cause shown
make an allowance.

142. The debtor shall be entitled to any surplus remaining surplus of
after payment of his creditors, and of the costs, charges, pwhto
and expenses of the proceedings under the bankruptcy debtw.
petition

estate

Bankruptcy Unclaimed Estates
143. Where any moneys of an insolvent or bankrupt mcn

estate have been or shall be lodged in the Treasury in pur- ~~~~~f
suance of any former enactment or in pursuance of any ~ 2 % ~
enactment now or hereafter to be in force, and have Treasury
remained or hereafter shall remain in the books of the years
Accountant-General for twenty years or upwards, and $ ~ ~ t ~ ~ t -
during that period no claim has been or shall be success- IepOrtto
fully made thereto, it shall be the duty of the Accountant-
General to report the facts of the case to the Minister.

for twenty

Mmster.

144. On the direction of the Minister in writing on such AdvertMs.
report, that proceedings be taken under this Act, the Ez:;:and
Accountant-General shall give public notice by advertise- n e ~ ~ a p e r .
ment in the Gazette, and in one or more newspapers printed ;!A$:;,

me inclwon of this page IS authonzed by LN. 480/19731

74 BANKRUPTCY

and published in this Island that a given part of the estate
of a bankrupt or insolvent, to be named in such advertise-
ment, has been lying in the Treasury for a period to be

Claims !O be specified as aforesaid, and that unless within one year from
one year of the date of the first publication of such advertisement, claim

to the moneys therein specified be made and substantiated
to the satisfaction of the Accountant-General or a court
of competent jurisdiction, such moneys will become subject
to the provisions hereinafter mentioned. The advertisement
aforesaid shall be published as aforesaid as often during the
said year as the Accountant-General may deem expedient,
but not less than four times.

made w i t h

advertise-
ment.

Unclaimed 145. Upon the expiration of one year from the date of
the first publication of such advertisement as aforesaid, or

Consoli- daled Fund from the date of the latest of such advertisements if they
andassetsof are not simultaneous, and after the due publication of the

same as aforesaid, any of the moneys in question to which
no claim shall have been made and substantiated as afore-
said shall lapse to and become part of the Consolidated
Fund and assets of the Island:

Provided always that, if within the year aforesaid, a
claim to any portion of the moneys in question shall have
been duly made, but shall be pending at the expiration of
the said year-

(a) before the Accountant-General for consideration;
or

(b) before a court of competent jurisdiction, and there
shall be lodged with the Accountant-General a
certificate to that effect signed by a Judge of that
court,

then such moneys shall not lapse to or become part of the
Consolidated Fund and assets of the Island until-

(i) the Accountant-General shall have decided that
such claim is not good and no certificate as afore-

funds to

the Island.

[The indurion of this page is authorized by L.N. 480119731

BANKRUPTCY 75

said shall have been lodged with the Accountant-
General within one month of such decision; or

(ii) any such certificate be cancelled or revoked.

146. It shall be lawfd for any person desirous of claim- Adonfor
ing any moneys lodged in the Treasury as aforesaid but Elaimedto
whose claim has been rejected by the Accountant-General, gtgainst
to claim the same by means of an action against the Attorney- Attorney
General of Jamaica on behalf of the Government of the
Island as defendant:

hundred dollars the action may be brought in the Resident
Magistrate’s Court for the parish of Kingston.

money

General.

Provided that if the sum claimed does not exceed two ~ 1 9 6 9
3rd Sch.

SUPPLEMENTAL PROVISIONS
As io Joint Debtors

147. Any creditor whose debt is sufficient to entitle him Petition
to present a petition against all the members of a partner- part,,ernor
ship, or against all of several joint debtors, may present f ~ ~ ~ o m ,
such petition against any one or more of such persons with-
out including the others.

against

148. Where there are more respondents than one to a Dismivlal
of petition petition the Court may dismiss the petition as to one or

more of them, without prejudice to the effect of the petition
as against the other or others of them. only.

149. Where a provisional order has been made against powerto
all the members of a partnership, or against several joint provisional
debtors, the operation of such order shall in the first instance ;$st
be limited to the debt jointly due from such partners or partnersto
debtors, but the Court may, on sufficient cause Wing shown separzk
by any joint or separate creditor within the prescribed time
after the making of the order, direct the order to apply to
the separate debts and properties of the partners or debtors,

extend

their

cstata

I r n o inclusion of this page is a u t h d by LN. 480/19131

76 BANKRUPTCY

or of some or one of them, and such order shall have effect
accordingly :

Provided that nothing herein shall prejudice or affect
any disposition made by a debtor in good faith, and for
valuable consideration, of or in reference to the separate
property to which such provisional order is so directed to
apply, in the interval between the date of the provisional
order and the date when such direction has been given.

fiditorof

partners may prove
forcarlain

!isclaims

ings

Trustee's 151.-(1) Where the debtor is a member of a partnership,
actionwhen the Trustee administering his estate under the provisions of
debtor is this Act may, when authorized by the Court, bring or pro-
a h. secute any action in the name of himself and of the debtor's

partner.
(2) In such case any release by such partner of the

debt or demand to which the action relates shall be void.

150. When a provisional order is made against one mem-
ber of a firm or partnership, any creditor to whom that
partner is indebted jointly with the other partners of the
firm, or any of them, may prove his debt for the purpose
of voting, and may vote at a meeting of creditors.

urposes

in proceed-

one partner.

right of

member of

As. to
debtor's
pint
contracts.

(3) Before applying to the Court for authority to
bring such action the Trustee must give notice to the partner,
who may show cause against it, and on his application the
Court may, if it thinks fit, direct that he shall receive his
proper share of the proceeds of the action, and shall if no
benefit be claimed by him therefrom be indemnified against
costs in respect thereof as the Court directs.

152. Where a debtor is a contractor in respect of any
contract jointly with any other person or persons, such
person or persons may be sued, and if no action be pending
at the suit of the Trustee in respect thereof may sue in respect
of such contract without the joinder of the debtor.

me inclusion of this Daee 1s authnrized by L.N. 480/1973J

BANKRUPTCY I1

153.41) When a provisional order has been made Provisional
order when

other persons being a member or members of the same firm of . a firm
IS absent

against a member or members of a firm, and any one or more a member

is or are out of this Island, or of unsound mind, the Court or lunatic.
shall have jurisdiction, after giving the prescribed notices, to
make a provisional order for the administration of the joint
property of the members of the firm, on its being proved
to the satisfaction of the Court that the firm are unable to
pay their debts, but it shall not be lawful to adjudge any
member a bankrupt under this section.

(2) Upon such order being made, the property of
the firm shall vest in the Trustee, and shall be administered
in all respects as if a bankruptcy petition had been presented
and a provisional order had been made in the first instance
against all the members of the firm.

As to Discovery of Debtor's Property
154. At any time after the presentation of a petition, powaof

the Court may summon before it the debtor, or his wife, summon
or any person known or suspected to have in his possession ",'Fmd
any of the property of the debtor, or supposed to be indebted persons. to
to the debtor, or any person whom the Court may deem production
capable of giving information respecting the debtor, or his mentsar
properly, his trade, or dealings, or affairs, and the Court $d$y'*
may require any such person to produce any documents
in his custody or power relating to the debtor, or his
property, trade, or dealings, or affairs; and if any person
so summoned, after having been tendered a reasonable sum,
refuses to produce such documents, 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
such person to be apprehended and brought before it for
examination.

Court to

requue

of d m -

m e inclusion of this page is authorized by L.N. 480/1973]

I 8 BANKRUPTCY

And to
witness,

155. The Court may examine upon oath, either by word
of mouth or by written interrogation any person so sum-
moned or brought before it, or any person being present
before the Court, concerning the debtor, or his property,
trade, or dealings or affairs.

oxanune

And to

a d d t t d

156.-(1) If any person on examination before the Court
admits that he is indebted to the debtor, the Court may on
the application of the Trustee order him to pay to the
Trustee, at such time and in such manner as to the Court
seems expedient, the amount admitted, 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.

(2) If any person, on examination before the Court,
admits having in his possession any property of the debtor
vested in the Trustee under this Act, the Court may, on
the application of the Trustee, grant a warrant for the
seizure of the same:

Provided that if on such examination as aforesaid such
person claims a lien on such property, such warrant shall
authorize the seizure of the same only on satisfaction of
such lien.

order pay.
rnent of

debt

p o m l o

r ~ ~ t ~ ,
searchfor

157. Any person acting under warrant of the Court may
seize any property of the debtor divisible amongst his
creditors under th is Act and in the debtor‘s custody or
possession, or in that of any other person, and with a view
to such seizure may break open any house, building or room,
of the debtor where the debtor is supposed to be, or any
building or receptacle of the debtor where any of his
property is supposed to be; and where the Court is satisfied
that there is reason to believe that the property of the debtor
is concealed in a house or place not belonging to him the

aeirc
debtor%

Same.

me inclusion of thii page is authorized by LN. 480119731

BANKRUPTCY

Court may, if it thinks fit, grant a search warrant to any
constable or prescribed officer of the Court, who may execute
the same according to the tenor thereof.

I9

158. At any time after the presentation of a petition- Arrest of
debtor in

(U) if it appears to the Court that there is probable
reason for believing that the debtor is about to
leave the Island, or to quit his place of residence
with a view of avoiding examination in respect of
his affairs, or otherwise delaying or embarrassing
the proceedings under the petition, or that he is
about to remove his property with a view of pre-
venting or delaying such property being placed
under the control or possession of the Receiver or
Trustee, or that he has concealed or is about to
conceal or make away with any of his property, or
any books, documents, or writings, which might be
of use to his creditors in the course of the pro-
ceedings; or

(b) if the debtor knowing that a petition has been filed
removes any property in his possession above the
value of ten dollars without the leave of the
Receiver or Trustee, or without good cause shown
fails to attend any examination ordered by the
Court,

the Court may cause the debtor to be arrested, and im-
prisoned in such convenient prison as the Court may direct,
and any books, papers, or property in his possession to be
seized and safely kept until such time as the Court may
order.

159. The Court, upon the application of the Trustee, 4-h
may from time to time order that for such time as the Court addrrlucd
thinks fit, not exceeding three months from the date of such
order, post letters addressed to the debtor at any place or
places mentioned in the order shall be redirected by the

with letters

to debtor.

inclusion of th is page is authorized by L.N. 480/1973]

80 BANKRUPTCY

Enforce.
ment of
warrants
and orders
of Courts.

Warrants of
Bankruptcy
Courts.

Commit-
ment to
prison.

Postmaster General, or the officers acting under him, to the
Trustee or otherwise as the Court directs, and the same
shall be done accordingly.

Orders and Warrants of Court
160. All the Courts in bankruptcy and the officers of

such Courts, shall act in aid of and shall be auxiliaq to
each other in all matters of bankruptcy and any order of
any one Court in a proceeding in bankruptcy may, on
application to another Court, be made an order of such
other Court, and may be carried into effect accordingly.
And an order of any Court in bankruptcy seeking aid,
together with a request to another of the said Courts, shall
be deemed sufficient to enable the latter Court to exercise
in regard to the matters directed by such order, the like
jurisdiction which the Court which made the request, as
well as the Court to which the request is made, could exer-
cise in regard to similar matters within their respective
jurisdictions.

161. Any warrant of a Court having jurisdiction in
bankruptcy under this Act may be executed in any part
of this Island in the same manner and subject to the same
privileges in, and subject to which a warrant issued by any
Justice against a person for an indictable offence may be
executed, and any search warrant issued by a Court having
jurisdiction in bankruptcy under this Act for the discovery
of any property of a bankrupt may be executed in manner
prescribed or in the same manner and subject to the same
privileges, in and subject to which a search wmant for
property supposed to be stolen may be executed according
to Iaw.

162. Where any Court having jurisdiction in bankruptcy
under this Act commits any person to prison, the commit-
ment may, unless otherwise prescribed, be to such con-

[The inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY 81

venient prison as the Court thinks expedient; and if the
gaoler of any prison refuses to receive any prisoner so com-
mitted, he shall be liable, for every such refusal, to a penalty
not exceeding two hundred dollars.

Change of Jurisdiction by Minister

163. Notwithstanding anything in this Act contained, Ch?n&e pf
urisdiction

the Minister, may from time to time, by order published in b y Minister.
the Gazette, exclude any Resident Magistrate’s Court from
having jurisdiction in bankruptcy over any part or the whole
of its district; and, for the purposes of bankruptcy jurisdic-
tion, may attach its district, or any part thereof, to any other
Resident Magistrate’s Court or Courts, and may from time
to time in like manner revoke or alter any order so made.

MISCELLANEQUS PROVISIONS
Provisions Relating to Evidence

164. Copies, authenticated by the signature of the Trustee, Certified
of any entries in the books kept by him with respect to any $;si
estate or trust vested in or administered by him under this ;;zr’s
Act shall be admissible in evidence, and shall have the same
effect in evidence in all respects as the originals from which
such copies were made.

165. In all legal proceeding judicial notice shall be taken Signature
of Trustee. of the signature of the Trustee; but any Court or Judge may

require such signature to be proved in the ordinary way if
it is doubtful to such Court or Judge whether the alleged
signature is genuine.

166. Any bankruptcy petition or copy thereof, any order Evidenceof
or copy of an order made by any Bankruptcy Court, any m . proceed-
certificate or copy of a certificate made by a Bankruptcy
Court, any deed of arrangement or copy thereof, and any
other instrument or copy of an instrument, affidavit, or

documents

me inclusion of this page is authorized by L.N. 480/19731

82 BANKRUPTCY

Dcpositions
of deceased
persons.

Goreffe
notice
conclusive
evidence of
certain
facts.

Service on
Trustee.

Notice of
action
against
Trustee.

document, made or used in the course of any proceedings
under this Act, may, if any such document or instrument
or copy appears to be sealed with the seal of any Bank-
ruptcy Court, or purports to be signed by the Judge, or
certified to be a true copy by the Registrar of any Bank-
ruptcy Court, be receivable in evidence in all legal proceed-
ings whatever.

167. In the case of the death of the debtor or his wife,
or of a witness whose evidence has been received by any
B&ptcy Court in any proceeding under this Act, the
deposition of the person so deceased purporting to be sealed
with the seal of the Court, or a copy thereof purporting
to be so sealed, shall be admitted as evidence of the matters
therein deposed to.

168. The production of a Gazette containing a Gazette
notice of a provisional order, or of an absolute order for
bankruptcy, shall be conclusive evidence in legal p r o d -
ings that the provisional order was duly made, or that the
debtor against whom the absolute order has been made has
been duly adjudged bankrupt, and also of the date of such
orders.

Provisions Relating to Legal Proceedings
169. Documents in any legal or other proceedings by or

against the Trustee may be served by being left at his office,
and such service shall have the same effect as if it had been
made personally.

170. No action or other proceeding shall be commenced
against the Trustee, as such, unless one month’s notice
stating the cause thereof, the name and address of the person
bringing the action or other proceeding, and the name and
address of his solicitor (if any) has been given to the Trustee,
and if no action or proceeding shall have been commenced

me inclusion of this page is authorized by L.N. 480/1973]

BANKRUPTCY

against the Trustee in terms of such notice before the
expiration of sixty days from the service thereof the said
notice shall lapse and cease to be effective.

83

171. Every deed, conveyance, assignment, surrender, Exemptiona
from stamp admission or other assurance, relating solely to freehold duty.

or leasehold property, or to any mortgage, charge or other
incumbrance on, or any estate, right or interest in, any real
or personal property which is part of the estate of any debtor
under this Act, and which, after the execution of such deed,
conveyance, assignment, surrender, admission or other
assurance, either at law or in equity, is or remains the pro-
perty of the debtor or Trustee, and every power of attorney,
proxy, paper, writ, order, certificate, affidavit, bond, or other
instrument or writing, relating solely to the property of any
such debtor, or to any proceeding under this Act, shall be
exempt from stamp duty (except in respect of fees under
this Act).

172. Proceedings under this Act shall not be invalidated Irregulmi-
by any irregularity, unless the Court before which an invalidate
objection is made to such proceeding is of opinion that proceedings.
substantial injustice has been caused by such defect or
irregularity, and that such injustice cannot be remedied
by any order of such Court.

to the debtor is assigned in pursuance of this Act may bring debtor's
or defend any action relating to such thing in action in his Et:;"

lies not 10

173. Any person to whom anything in action belonging Actionsh
respect of

own name. assigned.

As to Apprenticeship
174. Where at the t h e of the presentation of the bank- AS to d i s

ruptcy petition any person is apprenticed or is an articied indentureof
clerk, to the debtor, the provisional order shall, if either ~ ~ $ ~ ~ ~ , e
the debtor or apprentice or clerk give notice in writing to ;;$;;.
the Trustee or Receiver to that effect, be a complete dis- allowance

charge of

thereon.
IThe inclusion of t h i a page is aumnized by LN. 480119731

84 BANKRUPTCY

charge of the indenture of apprenticeship or articles of
agreement; and if any money has been paid by or on behalf
of such apprentice or clerk to the debtor as a fee, the Trustee
or Receiver may, on the application of the apprentice or
clerk, or of some person on his behalf, pay such sum as such
Trustee or Receiver, subject to an appeal to the Court,
thinks reasonable, out of the debtor'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 debtor under the indenture or
articles before the date of the provisional order, and to the
other circumstances of the case.

As to the Annulling or Revoking of Orders in
Bankruptcy

power to 175.-(1) The Court may at any time, for sufficient reason,
orders,etc, revoke a provisional order for bankruptcy, or annul an
effect thereof. adjudication; but in such case all sales and dispositions

of property and payments duly made, and all acts there-
tofore done by the Trustee or any person acting under his
authority, or by the Court, shall be valid, but the property
of the debtor shall in such case vest in such person as the
Court may appoint, or in default of any such appointment
revert to the debtor for all his estate or interest therein,
upon such terms and subject to such conditions, if any, as
the Court may declare by order.

(2) A copy of the order of revocation or annul-
ment, unless such order has been made on cause shown by
the debtor in the first instance, may be forthwith published
in the Gazette, and advertised locally in the prescribed man-
ner, and the production of a copy of the Gazette containing
such order of revocation or annulment shall be conclusive
evidence of the fact of such revocation or annulment, and of
the terms of the order.

revoke

m e inclusion of this page is authorized by L.N. 48Ol19731

BANKRUPTCY 85

176. The revocation of a provisional order shall operate Effectof as a revocation of the appointment of the Trustee under the revocation of apro-
visional petition, and shall revive the remedy of any creditor against order,

the property or person of the debtor that was suspended or
stayed by the order.

FRAUDULENT BANKRWTCY
Crimes Against Bwkruptcy Act

177. Any person against whom a provisional order or crimes
an absolute order in bankruptcy has been made and has !?&?&
not been revoked shall in each of the cases following be $?,t;
guilty of a misdemeanour, and shall be liable, on conviction, triable.
to imprisonment, with or without hard labour, for a term
not exceeding one year, that is to say-

(a) if he does not to the best of his knowledge and
belief fully discover to the Trustee administering
his estate for the benefit of his creditors all his
property, real and personal, and how, and to whom,
and for what consideration, and when he disposed
of any part of his property except such part as
has been disposed of in the ordinary way of his
trade (if any) or laid out in the ordinary expense of
his family;

(b) if he does not deliver up to the Trustee, or as he
directs, all such part of his real and personal pro-
perty as is in his custody or under his control and
which he is required by law to deliver up, unless
the jury is satisfied that he had no intent to
defraud;

(c) if he does not deliver up to the Trustee, or as he
directs, all books, documents, papers and writ-
ings, in his custody or under his control, relating
to his property or affairs, unless the jury is satisfied
that he had no intent to defraud;

me inclusion of this page is authorized by L.N. 480(1973]

BANKRUPTCY

(4 if since the presentation of the petition by or
against him or within six months before such
presentation, he has concealed or removed any part
of his property to the value of twenty dollars or u p
wards, or concealed any debt due to or from him,
u n l e s s the jury is satisfied that he had no intent
to defraud;

(e) if he makes any material omission in any state-
ment required under this Act relating to his &airs,
unless the jury is satisfied that he had no intent
to defraud;

v) if, knowing or believing that a false debt has been
proved by any person under the bankruptcy pro-
ceedings, he fails for the period of a month to
inform the Trustee thereof, unless the jury is
satisfied that he had no intent to defraud;

(9) if after the presentation of the petition by or
against him he prevented the production of any
book, document, paper or writing, affecting or
relating to his property or affairs, unlm the jury
is satisfied that he had no intent to conceal the
state of his dairs 01 to defeat the law,

(h) if after the presentation of the petition, or within
six months before such presentation, he has con-
cealed, destroyed, mutilated or falsified, or has
been privy to the concealment, destruction, muti-
lation or falsification of any book or document
affecting or relating to his property or affairs, unless
the jury is satisfied that he had no intent to conceal
the state of his affairs or to defeat the law;

(i) if, either before or after the presentation of the
petition, he made or was privy to the making of
any false entry in any book or document affecting
or relating to his property or affairs, nnless the

I l k inclusion of this pyc ia authmivd by L". 480/1973]

BANKRUPTCY 87

jury is satisfied that he had no intent to conceal
the state of his affairs or to defeat the law;

({I if after the presentation of the petition, or within
six months before such presentation, he has parted
with, altered, or made any omission in, or has been
privy to the parting with, altering, or making any
omission in, any document affecting or relating to
his property or affairs, unless the jury is satisfied
that he had no intent to defraud;

(k) if after or within six months before the presenta-
tion of the petition he has attempted to account
for any part of his property by fictitious losses or
expenses;

(D if within six months before the presentation of the
petition he by any false representation or other
fraud has obtained any property on credit, and
has not paid for the same;

(rn) if within six months before the presentation of the
petition he obtained, under the false pretence of
carrying on business and dealing in the ordinary
way of his business, any property on credit, and
has not paid for the same, unless the jury is
satisfied that he had no intent to defraud;

(n) if within six months before the presentation of the
petition he has pawned, pledged, or disposed of
otherwise than in the ordinary way of his business
any property which he had obtained on credit and
had not paid for, unless the jury is satisfied that
he had no intent to defraud;

(0) if he is guilty of any false representation or other
fraud for the purpose of obtaining the consent of
his creditors, or any of them, to any agreement
with reference to his affairs, or his bankruptcy or
liquidation;

-
me inclusion of this page is authorized by L.N. 480119731

88 BANKRUPTCY

(p) if after or within six months before the presenta-
tion of the petition he has quitted this Island and
taken with him, or attempted or made preparation
for quitting this Island and for taking with him
any part of his property to the amount of forty
dollars or upwards, which would by law be
divisible amongst his meditors under the bank-
ruptcy, unless the jury is satisfied that he had no
intent to defraud;

(q) if in incurring any debt or liability he has obtained
credit under false pretences, or by means of any
other fraud;

(4 if he has, with intent to defraud his creditors, or
any of them, made or caused to be made any gift,
delivery or transfer of, or any charge on his
property;

(s) if he has, with intent to defraud his creditors,
concealed or removed any part of bis property
since, or withii two months before, the date of any
unsatisfied judgment or order for payment of
money obtained against him.

Misdemeanours under th is section shall not be triable in a
Resident Magistrate’s Court.

Uudir

bankrupt
obtai~w

extentof

wihoul

xor- creditor of
his bank-

178. Where an undischarged bankrupt who has been
adjudged bankrupt under this Act obtains credit to the
extent of forty dollars or more from any_person without
informing such person that he is an undischarged bankrupt
he shall be guilty of a misdemeanour, and on conviction
thereof shall be liable to be imprisoned for any term not
exceeding two years, with or without hard labour.

credit to

forty dollan

:$:Of
m15-
demeanour.

me inclusion of this page is authorized by L.N. 480/19731