Effect of bankruptcy on antecedent transactions
—(1) Where a second or subsequent bankruptcy order is made against a bankrupt, or where an order is made for the administration in bankruptcy of the estate of a deceased bankrupt, then for the purposes of any proceedings consequent upon any such order, the Official Assignee shall be deemed to be a creditor in respect of any unsatisfied balance of the debts provable in the last preceding bankruptcy against the property of the bankrupt in the subsequent bankruptcy.
(2) Where a second or subsequent bankruptcy order is made against a bankrupt, or where an order is made for the administration in bankruptcy of the estate of a deceased bankrupt, any property acquired by him since he was last adjudged bankrupt, which at the date when the subsequent petition was presented had not been distributed amongst the creditors in the last preceding bankruptcy, shall (subject to any disposition thereof made by the Official Assignee in that bankruptcy without knowledge of the presentation of the subsequent petition ) vest in the Official Assignee on account of the subsequent bankruptcy or administration in bankruptcy, as the case may be.
(3) Where the Official Assignee in any bankruptcy receives notice of a subsequent petition in bankruptcy against the bankrupt or after his death of a petition for the administration of his estate in bankruptcy, the Official Assignee shall hold any property then in his possession which has been acquired by the bankrupt since he was adjudged bankrupt until the subsequent petition has been disposed of.
(4) If on a subsequent petition a bankruptcy order or an order for the administration of the estate in bankruptcy is made, the Official Assignee shall hold all the property or the proceeds thereof (after deducting his costs and expenses) to the account of the subsequent bankruptcy, or administration in bankruptcy, as the case may be.
—(1) Subject to this section and sections 100 and 102, where an individual is adjudged bankrupt and he has at the relevant time (as defined in section 100) entered into a transaction with any person at an undervalue, the Official Assignee may apply to the court for an order under this section.
(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.
(3) For the purposes of this section and sections 100 and 102, an individual enters into a transaction with a person at an undervalue if —
he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration;
he enters into a transaction with that person in consideration of marriage; or
he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.
—(1) Subject to this section and sections 100 and 102, where an individual is adjudged bankrupt and he has, at the relevant time (as defined in section 100), given an unfair preference to any person, the Official Assignee may apply to the court for an order under this section.
(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not given that unfair preference.
(3) For the purposes of this section and sections 100 and 102, an individual gives an unfair preference to a person if —
that person is one of the individual’s creditors or a surety or guarantor for any of his debts or other liabilities; and
the individual does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the individual’s bankruptcy, will be better than the position he would have been in if that thing had not been done.
(4) The court shall not make an order under this section in respect of an unfair preference given to any person unless the individual who gave the preference was influenced in deciding to give it by a desire to produce in relation to that person the effect mentioned in subsection (3)(b).
(5) An individual who has given an unfair preference to a person who, at the time the unfair preference was given, was an associate of his (otherwise than by reason only of being his employee) shall be presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in subsection (4).
(6) The fact that something has been done in pursuance of the order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of an unfair preference.
—(1) Subject to this section, the time at which an individual enters into a transaction at an undervalue or gives an unfair preference shall be a relevant time if the transaction is entered into or the preference given —
in the case of a transaction at an undervalue, within the period of 5 years ending with the day of the presentation of the bankruptcy petition on which the individual is adjudged bankrupt;
in the case of an unfair preference which is not a transaction at an undervalue and is given to a person who is an associate of the individual (otherwise than by reason only of being his employee), within the period of 2 years ending with that day; and
in any other case of an unfair preference which is not a transaction at an undervalue, within the period of 6 months ending with that day.
(2) Where an individual enters into a transaction at an undervalue or gives an unfair preference at a time mentioned in subsection (1)(a), (b) or (c), that time is not a relevant time for the purposes of sections 98 and 99 unless the individual —
is insolvent at that time; or
becomes insolvent in consequence of the transaction or preference.
(3) Where a transaction is entered into at an undervalue by an individual with a person who is an associate of his (otherwise than by reason only of being his employee), the requirements under subsection (2) shall be presumed to be satisfied unless the contrary is shown.
(4) For the purposes of subsection (2), an individual shall be insolvent if —
he is unable to pay his debts as they fall due; or
the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
—(1) For the purposes of sections 99 and 100, any question whether a person is an associate of another person shall be determined in accordance with this section.
(2) A person is an associate of an individual if that person is the individual’s spouse, or is a relative, or the spouse of a relative of the individual or his spouse.
(3) A person is an associate of an individual with whom he is in partnership, and of the spouse or a relative of any individual with whom he is in partnership.
(4) A person is an associate of an individual whom he employs or by whom he is employed and for this purpose, any director or other officer of a company shall be treated as employed by that company.
(5) A person in his capacity as trustee of a trust is an associate of an individual if the beneficiaries of the trust include, or the terms of the trust confer a power that may be exercised for the benefit of, that individual or an associate of that individual.
(6) A company is an associate of an individual if that individual has control of it or if that individual and persons who are his associates together have control of it.
(7) For the purposes of this section, a person is a relative of an individual if he is that individual’s brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant, treating —
any relationship of the half blood as a relationship of the whole blood and the step-child or adopted child of any person as his child; and
an illegitimate child as the legitimate child of his mother and reputed father.
(8) References in this section to a spouse shall include a former spouse.
(9) For the purposes of this section, an individual shall be taken to have control of a company if —
the directors of the company or of another company which has control of it (or any of them) are accustomed to act in accordance with his directions or instructions; or
he is entitled to exercise, or control the exercise of, one-third or more of the voting power at any general meeting of the company or of another company which has control of it,
(10) In this section, “company” includes any body corporate (whether incorporated in Singapore or elsewhere); and references to directors and other officers of a company and to voting power at any general meeting of a company shall have effect with any necessary modifications.
—(1) Without prejudice to the generality of sections 98(2) and 99(2), an order under either of those sections with respect to a transaction or preference entered into or given by an individual who is subsequently adjudged bankrupt may, subject to this section —
require any property transferred as part of the transaction, or in connection with the giving of the preference, to be vested in the Official Assignee;
require any property to be so vested if it represents in any person’s hands the application of the proceeds of sale of property so transferred or of money so transferred;
release or discharge (in whole or in part) any security given by the individual;
require any person to pay, in respect of benefits received by him from the individual, such sums to the Official Assignee as the court may direct;
provide for any surety or guarantor whose obligations to any person were released or discharged (in whole or in part) under the transaction or by the giving of the preference to be under such new or revived obligations to that person as the court thinks appropriate;
provide for security to be provided for the discharge of any obligation imposed by or arising under the order, for such an obligation to be charged on any property and for the security or charge to have the same priority as a security or charge released or discharged (in whole or in part) under the transaction or by the giving of the unfair preference; and
provide for the extent to which any person whose property is vested by the order in the Official Assignee, or on whom obligations are imposed by the order, is to be able to prove in the bankruptcy for debts or other liabilities which arose from, or were released or discharged (in whole or in part) under or by, the transaction or the giving of the unfair preference.
(2) An order under section 98 or 99 may affect the property of, or impose any obligation on, any person whether or not he is the person with whom the individual in question entered into the transaction or, as the case may be, the person to whom the unfair preference was given.
(3) An order under section 98 or 99 shall not —
prejudice any interest in property which was acquired from a person other than that individual and was acquired in good faith, for value and without notice of the relevant circumstances, or prejudice any interest deriving from such an interest; or
require a person who received a benefit from the transaction or unfair preference in good faith, for value and without notice of the relevant circumstances to pay a sum to the Official Assignee, except where he was a party to the transaction or the payment is to be in respect of an unfair preference given to that person at a time when he was a creditor of that individual.
(4) Any sums required to be paid to the Official Assignee in accordance with an order under section 98 or 99 shall be comprised in the bankrupt’s estate.
(5) For the purposes of this section, the relevant circumstances, in relation to a transaction or unfair preference, shall be —
if that period has expired, the fact that that individual has been adjudged bankrupt within that period.
—(1) This section shall apply where a person who is adjudged bankrupt is or has been a party to a transaction for or involving the provision to him of credit.
(2) The court may, on the application of the Official Assignee, make an order with respect to the transaction if the transaction is or was extortionate and was entered into within 3 years before the commencement of the bankruptcy.
(3) For the purposes of this section, a transaction shall be extortionate if, having regard to the risk accepted by the person providing the credit —
the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit; or
it is harsh and unconscionable or substantially unfair,
and it shall be presumed, unless the contrary is proved, that the transaction was extortionate.
(4) An order under this section may contain one or more of the following:
provision setting aside the whole or part of any obligation created by the transaction;
provision varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
provision requiring any person who is or was party to the transaction to pay the Official Assignee any sums paid to that person;
provision requiring any person to surrender to the Official Assignee any property held by him as security for the purposes of the transaction;
provision directing accounts to be taken between any persons.
(5) Any sums or property required to be paid or surrendered to the Official Assignee in accordance with an order under this section shall be comprised in the bankrupt’s estate.
—(1) This section shall apply where a person engaged in any business makes a general assignment to another person of his existing or future book debts, or any class of them, and is subsequently adjudged bankrupt.
(2) The assignment shall be void against the Official Assignee as regards book debts which were not paid before the presentation of the bankruptcy petition , unless the assignment has been registered under the Bills of Sale Act (Cap. 24).
(3) For the purposes of this section —
“assignment” includes an assignment by way of security or charge on book debts;
“general assignment” does not include —
an assignment of book debts due at the date of the assignment from specified debtors or of debts becoming due under specified contracts; or
an assignment of book debts included either in a transfer of a business made in good faith and for value or in an assignment of assets for the benefit of creditors generally.
(4) For the purposes of registration under the Bills of Sale Act (Cap. 24), an assignment of book debts shall be treated as if it were a bill of sale given otherwise than by way of security for the payment of a sum of money.
(5) The provisions of the Bills of Sale Act with respect to the registration of bills of sale shall apply accordingly with such necessary modifications as may be made by rules under that Act.
—(1) Where the creditor of a bankrupt has issued execution against the goods or lands of the bankrupt or has attached any debt due or property belonging to him, the creditor shall not be entitled to retain the benefit of the execution or attachment against the Official Assignee unless he has completed the execution or attachment before the date of the bankruptcy order, except that —
a person who purchases in good faith under a sale by the Sheriff any goods of a bankrupt on which an execution has been levied shall in all cases acquire a good title to them against the Official Assignee; and
the rights conferred by this subsection on the Official Assignee may be set aside by the court in favour of the creditor to such extent and subject to such terms as the court may think fit.
(2) For the purposes of this Act —
an execution against goods is completed by seizure and sale;
an attachment of a debt is completed by receipt of the debt; and
an execution against land or any interest therein is completed by registering under any written law relating to the registration of land a writ of seizure and sale attaching the interest of the bankrupt in the land described therein.
—(1) Where any property of a debtor is taken in execution, then, if before the completion of the execution notice is given to the Sheriff that a bankruptcy order has been made against the debtor, the Sheriff shall deliver the property or the possession thereof and any such moneys to the Official Assignee.
(2) The costs of and incidental to the execution under subsection (1) shall be a first charge on the property or moneys, and the Official Assignee may sell the property or any adequate part thereof for the purpose of satisfying the charge.
(3) Where a writ of seizure and sale has been issued in respect of a judgment for a sum exceeding $2,000, the Sheriff shall hold all moneys coming to his hands under the writ of seizure and sale for 14 days from the receipt thereof.
(4) If within the time referred to in subsection (3) —
notice is served on the Sheriff of a bankruptcy petition having been presented against or by the debtor; and
a bankruptcy order is made against the debtor thereon or on any other petition of which the Sheriff has notice,
the Sheriff shall deduct the costs of and incidental to the execution and pay the balance to the Official Assignee, who shall be entitled to retain the same as against the execution creditor.