Approval of composition or scheme
—(1) The joint creditors and each set of separate creditors may severally accept compositions or schemes.
(2) So far as circumstances will allow, a proposal accepted by joint creditors may be approved notwithstanding that any proposal made by one or more of the debtors to his or their separate creditors may not be accepted.
—(1) Where proposals for compositions or schemes are made by a firm, and by the partners therein individually —
the proposal made to the joint creditors shall be considered and voted upon by them apart from all separate creditors; and
the proposal made to each set of separate creditors shall be considered and voted upon by that set of separate creditors apart from all other creditors.
(2) The proposals may vary in character and amount.
—(1) Every proposal for —
a composition shall be in Form 26; and
a scheme shall be in Form 27.
(2) The letter referred to in section 95(5) of the Act by which a creditor assents to or dissents from a composition or scheme shall be in Form 28.
(3) Every resolution for a composition or scheme or instrument embodying the terms of a proposed composition or scheme shall, in addition to the other particulars required to be stated, specify the manner, if any, in which the payments of the composition or scheme are to be secured.
—(1) A bankrupt who applies to the court to approve a composition or scheme shall, not less than 14 days before the day appointed for the hearing of the application, serve a copy of the application on the Official Assignee or the trustee, as the case may be.
(2) An application under this rule shall be in Form 29.
207. Not less than 7 days before the day appointed for the hearing of an application to approve a composition or scheme, the applicant shall send notice of the application in Form 30 to every creditor who has proved his debt.
210. If the court refuses to approve the composition or scheme, no costs incurred by the bankrupt in respect of the application shall be allowed out of the estate.
211. An appeal from an order approving or refusing to approve a composition or scheme shall lie at the instance of the Official Assignee or the trustee, as the case may be.
212. Upon the making of an order approving a composition or scheme, the Registrar shall forthwith cause a notification thereof to be published in the Gazette.
213. The fee payable on an application to approve a composition or scheme may be allowed and paid out of the estate of the bankrupt where there are funds available for the purpose in the hands of the Official Assignee or the trustee, as the case may be.
214. At the time a composition or scheme is approved, the court may correct any accidental error or omission but no alteration in the substance of the composition or scheme shall be made.
215. When a composition or scheme is approved, the Official Assignee or the trustee, as the case may be, shall, on payment of all proper costs, charges and expenses of and incidental to, the proceedings, and all fees and percentages payable to the Official Assignee or the trustee, put the bankrupt, or the person or persons to whom under the composition or scheme the property of the bankrupt is to be assigned, into possession of the bankrupt’s property.
216. Upon the annulment of a composition or scheme, the bankruptcy order shall be reinstated.
—(1) Where under a composition or scheme provision is made for the payment of any moneys to the creditors and any claim in respect of which a proof has been lodged is disputed, the court may, if it thinks fit, direct that the amount which would be payable if the claim were established shall be secured in such manner as the court may direct.
(2) On the determination of the dispute, the sum so secured shall be paid as the court may direct.
—(1) A person claiming to be a creditor under a composition or scheme who has not proved his debt before the approval of the composition or scheme shall lodge his proof with the Official Assignee or the trustee, as the case may be.
(2) The Official Assignee or the trustee shall admit or reject the proof in accordance with these Rules.
(3) No creditor shall be entitled to enforce payment of any sum payable under a composition or scheme unless he has proved his debt and his proof has been admitted.