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Contents

Long Title

Part I PRELIMINARY

Part II CONSTITUTION, PROCEDURE AND POWERS OF COURT

Jurisdiction

Procedure

Part III OFFICIAL ASSIGNEE

Part IV TRUSTEE IN BANKRUPTCY

Part V VOLUNTARY ARRANGEMENTS

Moratorium for insolvent debtor

Consideration and implementation of debtor’s proposal

Part VA DEBT REPAYMENT SCHEME

Division 1 — Preliminary

Division 2 — Proposal for debt repayment scheme

Division 3 — Commencement and administration of debt repayment scheme

Division 4 — Cessation of debt repayment scheme

Division 5 — Miscellaneous

Part VI PROCEEDINGS IN BANKRUPTCY

Bankruptcy applications and bankruptcy orders

Protection of debtor’s property

Part VII ADMINISTRATION IN BANKRUPTCY

Bankruptcy

Inquiry into bankrupt’s affairs, dealings and property

Proof of debts

Composition or scheme of arrangement

Effect of bankruptcy on antecedent transactions

Possession, control and realisation of bankrupt’s property

Distribution of property

Part VIII ANNULMENT AND DISCHARGE

Part IX DUTIES, DISQUALIFICATION AND DISABILITIES OF BANKRUPT

Part X BANKRUPTCY OFFENCES

Part XI MISCELLANEOUS PROVISIONS

THE SCHEDULE Transitional Provisions and Savings

Legislative History

Comparative Table

 
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PART VIII
ANNULMENT AND DISCHARGE
Court’s power to annul bankruptcy order
123.
—(1)  The court may annul a bankruptcy order if it appears to the court that —
(a)
on any ground existing at the time the order was made, the order ought not to have been made;
(b)
to the extent required by the rules, both the debts and the expenses of the bankruptcy have all, since the making of the order, either been paid or secured for to the satisfaction of the court;
(c)
proceedings are pending in Malaysia for the distribution of the bankrupt’s estate and effects amongst the creditors under the bankruptcy law of Malaysia and that the distribution ought to take place there; or
(d)
a majority of the creditors in number and value are resident in Malaysia, and that from the situation of the property of the bankrupt or for other causes his estate and effects ought to be distributed among the creditors under the bankruptcy law of Malaysia.
[9/2003]
(2)  The court may annul a bankruptcy order whether or not the bankrupt has been discharged from the bankruptcy.
(3)  Where a court annuls a bankruptcy order under this section, any sale or other disposition of property, payment made or other things duly done by or under the authority of the Official Assignee or by the court shall be valid except that the property of the bankrupt shall vest in such person as the court may appoint or, in default of any such appointment, revert to the bankrupt on such terms as the court may direct.
(4)  The court may include in its order such supplemental provisions as may be authorised by the rules.
Annulment of bankruptcy order by certificate of Official Assignee where debts and expenses fully paid
123A.
—(1)  The Official Assignee may issue a certificate annulling a bankruptcy order if it appears to the Official Assignee that, to the extent required by the rules, the debts which have been proved and the expenses of the bankruptcy have all, since the making of the order, been paid.
[37/99]
(2)  Notice of every certificate of annulment under subsection (1) shall be given to the Registrar and be published in the Gazette and advertised in any local newspaper.
[37/99]
(3)  The Official Assignee shall, upon an application of a bankrupt or his creditor or any other interested person, issue to the applicant a copy of the certificate of annulment upon the payment of the prescribed fee.
[37/99]
(4)  A certificate of annulment issued under subsection (1) shall be binding on all the creditors so far as it relates to any debts due to them from the bankrupt and provable in bankruptcy.
[37/99]
(5)  Where the Official Assignee annuls a bankruptcy order under this section, any sale or other disposition of property, payment made or other things duly done by or under the authority of the Official Assignee or by the court shall be valid except that the property of the bankrupt shall revert to the bankrupt or, on an application by any person interested, vest in such person as the court may appoint and on such terms as the court may direct.
[37/99]
(6)  The court may include in its order such supplemental provisions as may be authorised by the rules.
[37/99]
Discharge by court
124.
—(1)  The Official Assignee, the bankrupt or any other person having an interest in the matter may, at any time after the making of a bankruptcy order, apply to the court for an order of discharge.
(2)  Every such application shall be served on each creditor who has filed a proof of debt and on the Official Assignee if he is not the applicant, and the court shall hear the Official Assignee and any creditor before making an order of discharge.
(3)  Subject to subsection (4), on an application under this section, the court may —
(a)
refuse to discharge the bankrupt from bankruptcy;
(b)
make an order discharging him absolutely; or
(c)
make an order discharging him subject to such conditions as it thinks fit to impose, including conditions with respect to —
(i)
any income which may be subsequently due to him; or
(ii)
any property devolving upon him, or acquired by him, after his discharge,
as may be specified in the order.
(4)  Where the bankrupt has committed an offence under this Act or under section 421, 422, 423 or 424 of the Penal Code (Cap. 224) or upon proof of any of the facts mentioned in subsection (5), the court shall —
(a)
refuse to discharge the bankrupt from bankruptcy;
(b)
make an order discharging him subject to his paying a dividend to his creditors of not less than 25% or to the payment of any income which may be subsequently due to him or with respect to property devolving upon him, or acquired by him, after his discharge, as may be specified in the order, and to such other conditions as the court may think fit to impose; or
(c)
if it is satisfied that the bankrupt is unable to fulfil any condition specified in paragraph (b) and if it thinks fit, make an order discharging the bankrupt subject to such conditions as the court may think fit to impose.
(5)  The facts referred to in subsection (4) are —
(a)
that the bankrupt has omitted to keep such books of accounts as would sufficiently disclose his business transactions and financial position within the 3 years immediately preceding his bankruptcy, or within such shorter period immediately preceding that event as the court may consider reasonable in the circumstances;
(b)
that the bankrupt has continued to trade after knowing or having reason to believe himself to be insolvent;
(c)
that the bankrupt has contracted any debt provable in the bankruptcy without having at the time of contracting it any reasonable ground of expectation (proof whereof shall lie on him) of being able to pay it;
(d)
that the bankrupt has brought on or contributed to his bankruptcy by rash speculations or extravagance in living, or by recklessness, or want of reasonable care and attention to his business and affairs;
(e)
that the bankrupt has delayed or put any of his creditors to unnecessary expense by a frivolous or vexatious defence to any action or other legal proceedings properly brought or instituted against him;
(f)
that the bankrupt has, within 3 months immediately preceding the date of the bankruptcy order, when unable to pay his debts as they became due, given an undue preference to any of his creditors;
(g)
that the bankrupt has, in Singapore or elsewhere on any previous occasion, been adjudged bankrupt or made a composition or an arrangement with his creditors;
(h)
that the bankrupt has been guilty of any fraud or fraudulent breach of trust;
(i)
that the bankrupt has, within 3 months immediately preceding the date of the bankruptcy order, sent goods out of Singapore under circumstances which afford reasonable grounds for believing that the transaction was not a bona fide commercial transaction;
(j)
that the bankrupt’s assets are not of a value equal to 20% of the amount of his unsecured liabilities, unless he satisfies the court that the fact that the assets are not of a value equal to 20% of his unsecured liabilities has arisen from circumstances for or in respect of which he cannot firstly be held blamable;
(k)
that the bankrupt has entered into a transaction with any person at an undervalue within the meaning of section 98;
(l)
that the bankrupt has given an unfair preference to any person within the meaning of section 99; and
(m)
that the bankrupt has made a general assignment to another person of his book debts within the meaning of section 104.
(6)  The court may, at any time before an order of discharge takes effect, rescind or vary the order.
Discharge by certificate of Official Assignee
125.
—(1)  The Official Assignee may, in his discretion and subject to section 126, issue a certificate discharging a bankrupt from bankruptcy.
(2)  The Official Assignee shall not issue a certificate discharging a bankrupt from bankruptcy under subsection (1) unless —
(a)
a period of 3 years has lapsed since the date of commencement of the bankruptcy; and
(b)
the debts which have been proved in bankruptcy do not exceed $100,000, or such other sum as may be prescribed2.
2  The Bankruptcy (Variation of Sum of Debts under section 125(2)(b)) Rules (R 4, 2001 Ed.) has varied the sum to $500,000 with effect from 1st May 1999.
[37/99]
(3)  Notice of every discharge under subsection (1) shall be given to the Registrar and be published in the Gazette and advertised in any local newspaper.
(4)  The Official Assignee shall, upon the application of a bankrupt or his creditor or other interested person, issue to the applicant a copy of the certificate of discharge upon the payment of the prescribed fee.
Objection by creditor to discharge of bankrupt under section 125
126.
—(1)  Before issuing a certificate of discharge under section 125, the Official Assignee shall serve on each creditor who has filed a proof of debt a notice of his intention to discharge the bankrupt, together with a statement of his reasons for wanting to do so.
(2)  A creditor who has been served with a notice under subsection (1) and who wishes to enter an objection to the Official Assignee issuing a certificate discharging the bankrupt may, within 21 days from the date of the Official Assignee’s notice, furnish the Official Assignee a statement of the grounds of his objection.
(3)  A creditor who does not furnish to the Official Assignee a statement of the grounds of his objection in accordance with subsection (2) shall be deemed to have no objection to the discharge.
(4)  A creditor who has furnished the Official Assignee with a statement of the grounds of his objection in accordance with subsection (2) may, within 21 days of being informed by the Official Assignee that his objection has been rejected, make an application to the court for an order prohibiting the Official Assignee from issuing a certificate of discharge.
(5)  Every application under subsection (4) shall be served on the Official Assignee and on the bankrupt and the court shall hear the Official Assignee and the bankrupt before making an order on the application.
(6)  On an application made under subsection (4), the court may, if it thinks it just and expedient —
(a)
dismiss the application;
(b)
make an order that the bankrupt shall not be granted a certificate of discharge by the Official Assignee for a period not exceeding 2 years; or
(c)
make an order permitting the Official Assignee to issue a certificate discharging the bankrupt but subject to such conditions as the court may think fit to impose, including conditions with respect to —
(i)
any income which may be subsequently due to the bankrupt after his discharge; or
(ii)
any property devolving upon the bankrupt, or acquired by him, after his discharge,
as may be specified in the order.
Effect of discharge
127.
—(1)  Subject to this section and any condition imposed by the court under section 124 or 126, where a bankrupt is discharged, the discharge shall release him from all his debts provable in the bankruptcy but shall have no effect —
(a)
on the functions (so far as they remain to be carried out) of the Official Assignee; or
(b)
on the operation, for the purposes of the carrying out of those functions, of the provisions of this Act.
(2)  Discharge shall not release the bankrupt from —
(a)
any debt due to the Government; or
(b)
any debt with which the bankrupt may be chargeable at the suit of —
(i)
the Government or any other person for any offence under any written law relating to any branch of the public revenue; or
(ii)
the Sheriff or other public officer on a bail bond entered into for the appearance of any person prosecuted for any such offence.
(3)  A bankrupt may be discharged from any debt referred to in subsection (2) only by a certificate in writing of the Minister.
(4)  Discharge shall not affect the right of any secured creditor of the bankrupt to enforce his security for the payment of a debt from which the bankrupt is released.
(5)  Discharge shall not release the bankrupt from —
(a)
any provable debt which he incurred in respect of, or forbearance in respect of which was secured by means of, any fraud or fraudulent breach of trust to which he was party; or
(b)
any liability in respect of a fine imposed for an offence.
(6)  Discharge shall not, except to such extent and on such conditions as the court may direct, release the bankrupt from any debt which has been proved and which —
(a)
consists in a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, being damages in respect of personal injuries to any person;
(b)
arises under any order made in proceedings under the Women’s Charter (Cap. 353) relating to family matters; or
(c)
arises under an order involving pecuniary liability made under any written law relating to the confiscation of the proceeds of crime.
(7)  Discharge shall not release any person other than the bankrupt from any liability (whether as partner or co-trustee of the bankrupt or otherwise) from which the bankrupt is released by the discharge, or from any liability as surety for the bankrupt or as a person in the nature of such a surety.
(8)  For the purpose of subsection (6), “personal injuries” includes death and any disease or other impairment of a person’s physical or mental condition.
Discharged bankrupt to give assistance
128.
—(1)  A discharged bankrupt shall, notwithstanding his discharge, give assistance as the Official Assignee requires in the realisation and distribution of such of his property as is vested in the Official Assignee.
(2)  If the discharged bankrupt fails to give assistance to the Official Assignee under subsection (1) —
(a)
he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000; and
(b)
the court may, 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.