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Contents  

Part I PRELIMINARY

Part II COURT PROCEDURE

Court and chambers

Proceedings

Applications and practice

Affidavits

Security in court

Witnesses and depositions

Warrants, arrests and commitments

Service and execution of process

Appeals

Part III OFFICIAL ASSIGNEE

Report of Official Assignee

Part IV TRUSTEE IN BANKRUPTCY

Part V VOLUNTARY ARRANGEMENTS

Proposal for voluntary arrangement

Interim order

Preparation of nominee’s report

Action on proposal

Procedure for review of meeting’s decision

Completion of arrangement

Part VI PROCEEDINGS IN BANKRUPTCY

Statutory demand

Creditor’s bankruptcy application

Service of creditor’s bankruptcy application

Hearing of creditor’s bankruptcy application

Actions to follow upon making of bankruptcy order on creditor’s bankruptcy application

Debtor’s bankruptcy application

Actions to follow upon making of bankruptcy order on debtor’s bankruptcy application

Interim receiver

Part VII BANKRUPTCY ADMINISTRATION

Creditors’ meeting

Statements of affairs

Examination of bankrupt and others

Settlement of list of debtors to estate

Procedure for proving debts

Quantification of claim

Secured creditors

Taking accounts of property mortgaged and sale thereof

Admission and rejection of proofs

Approval of composition or scheme

Appropriation of pay, salary, pensions, etc.

Disclaimer of lease

Disputed title to property

Special manager

Security by special manager

Distribution of dividends

Part VIII ANNULMENT AND DISCHARGE

Part IX COSTS AND TAXATION

Part IXA ELECTRONIC FILING SYSTEM

Part X MISCELLANEOUS PROVISIONS

Administration of estates of deceased insolvent

Persons of unsound mind

Registers

Accounts and audit

THE SCHEDULE

Legislative History

 
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PART V
VOLUNTARY ARRANGEMENTS
Proposal for voluntary arrangement
Preparation of proposal
67.
—(1)  The debtor shall prepare for the intended nominee a proposal on which to make his report to the court under section 49 of the Act.
(2)  Where the debtor is a firm, the proposal shall be prepared jointly by all or a majority of the partners in the firm.
Contents of proposal
68.
—(1)  The proposal shall contain a short explanation as to why, in the debtor’s opinion —
(a)
a voluntary arrangement is desirable; and
(b)
the debtor’s creditors may be expected to concur with the proposed arrangement.
(2)  The proposal shall state —
(a)
the following matters, so far as within the debtor’s immediate knowledge:
(i)
his assets, with an estimate of their respective values;
(ii)
the extent (if any) to which the assets are charged in favour of creditors; and
(iii)
the extent (if any) to which particular assets are to be excluded from the voluntary arrangements;
(b)
particulars of any property, other than assets of the debtor himself, which is proposed to be included in the arrangement, the source of such property and the terms on which it is to be made available for inclusion;
(c)
the nature and amount of the debtor’s liabilities (so far as within his immediate knowledge), the manner in which they are proposed to be met, modified, postponed or otherwise dealt with by means of the arrangement and, in particular —
(i)
how it is proposed to deal with preferential creditors and creditors who are, or who claim to be, secured;
(ii)
how associates of the debtor (being creditors of his) are proposed to be treated under the arrangement; and
(iii)
whether there are, to the debtor’s knowledge, any circumstances giving rise to the possibility, in the event that he should be adjudged bankrupt, of claims under section 98, 99 or 103 of the Act and, where any such circumstances are present, whether, and if so how, it is proposed under the voluntary arrangement to make provision for wholly or partly indemnifying the insolvent estate in respect of such claims;
(d)
whether any, and if so what, guarantees have been given of the debtor’s debts by other persons, specifying which (if any) of the guarantors are associates of his;
(e)
the proposed duration of the voluntary arrangement;
(f)
the proposed dates of distributions to creditors, with estimates of their amounts;
(g)
the amount proposed to be paid to the nominee (as such) by way of remuneration and expenses;
(h)
the manner in which it is proposed that the nominee should be remunerated for his supervision of the arrangement, and his expenses defrayed;
(i)
whether, for the purposes of the arrangement, any guarantee is to be offered by any person other than the debtor, and whether (if so) any security is to be given or sought;
(j)
the manner in which funds held for the purposes of the arrangement are to be banked, invested or otherwise dealt with pending distribution to creditors;
(k)
the manner in which funds held for the purpose of payment to creditors, and not so paid on the termination of the arrangement, are to be dealt with;
(l)
if the debtor has any business, the manner in which it is proposed to be conducted during the course of the arrangement;
(m)
details of any further credit facilities intended to be arranged for the debtor, and how the debts so arising are to be paid; and
(n)
the functions which are to be undertaken by the nominee when supervising the implementation of the arrangement under section 55 of the Act.
(3)  Where the debtor is a firm, any reference in paragraphs (1) and (2) to the assets, associates, business, debts, debtors, liabilities or property of the debtor shall be read as a reference to the assets, associates, business, debts, debtors, liabilities or property of the firm and of each partner therein.
Amendment of proposal
69.  The debtor’s proposal may, with the approval in writing of the nominee, be amended at any time up to the delivery of the nominee’s report to the court under section 49 of the Act.
Notice of proposal
70.
—(1)  The debtor shall give to the intended nominee written notice of his proposal.
(2)  The notice, accompanied by a copy of the proposal, shall be delivered either to the nominee himself, or to a person authorised to take delivery of documents on his behalf.
(3)  If the intended nominee agrees to act, he shall endorse on a copy of the notice that —
(a)
it was received by him on a specified date; and
(b)
he agrees to act,
and return that copy of the notice immediately to the debtor at an address specified by the debtor in the notice for that purpose.
Interim order
Application for interim order
71.
—(1)  An application to the court for an interim order under Part V of the Act shall be by way of originating summons entitled “In the Matter of Part V of the Bankruptcy Act (Cap. 20)” and shall be accompanied by an affidavit stating —
(a)
the reasons for the making of the application;
(b)
particulars of any execution or other legal process which, to the debtor’s knowledge, has been commenced against him;
(c)
that the debtor is able to apply for his own bankruptcy;
(d)
that no previous application for an interim order has been made by or in respect of the debtor in the period of 12 months ending with the date of the affidavit; and
(e)
the name of the person to be appointed as the nominee under the proposal and that he is a person who is qualified and willing to act as a nominee in relation to the proposal.
(2)  A copy of the notice to the intended nominee under rule 70(1), duly endorsed by him under paragraph (3) of that rule, shall be exhibited to the affidavit.
(3)  Where the debtor is a firm, the affidavit supporting the application for an interim order may be made by one of the partners in the firm who joined in the preparation of the proposal.
(4)  Upon receiving the application and affidavit, the court shall fix a date for the hearing of the application.
Persons who may appear at hearing of application for interim order
72.
—(1)  The applicant for an interim order shall give at least 2 clear days’ notice of the hearing —
(a)
to any creditor who has filed a bankruptcy application against him; and
(b)
to the nominee who has agreed to act in relation to the applicant’s proposal.
(2)  Any of the persons who have been given notice under paragraph (1) may appear or be represented at the hearing of the application and the court, in deciding whether to make an interim order on the application, shall take into account any representations made by or on behalf of any of such person.
Court to fix date for consideration of nominee’s report
73.
—(1)  If the court makes an interim order, the court shall fix a date for the consideration of the nominee’s report.
(2)  Subject to paragraph (3), the date for the consideration of the nominee’s report shall be not later than that on which the interim order ceases to have effect under section 45(4) of the Act.
(3)  If an extension of time is granted under section 49(4) of the Act for filing the nominee’s report, the court shall, unless there appear to be good reasons against it, correspondingly extend the period for which the interim order has effect.
Action to follow making of order
74.  Where an interim order is made, the applicant for the order shall —
(a)  serve a sealed copy of the order on the nominee; and
(b)  give notice of the making of the order to any person who was given notice of the hearing under rule 72 but who was not present or represented at the hearing.
Preparation of nominee’s report
Debtor to furnish nominee with statement of affairs
75.
—(1)  For the purpose of enabling the nominee to consider the debtor’s proposal and prepare his report on it, the debtor shall submit a statement of his affairs to the nominee within 7 days after his proposal is delivered to the nominee, or within such longer time as the nominee may allow.
(2)  Where the debtor is a firm —
(a)
the partners therein shall jointly submit to the nominee a statement of their partnership affairs; and
(b)
each of the partners therein shall submit to the nominee a statement of his separate affairs,
within 7 days after the firm’s proposal is delivered to the nominee, or within such longer time as the nominee may allow.
(3)  The statement shall include the following particulars:
(a)
a list of the debtor’s assets, divided into such categories as are appropriate for each identification, with estimated values assigned to each category;
(b)
in the case of any property on which a claim against the debtor is wholly or partly secured, particulars of the claim and its amount, and of how and when the security was created;
(c)
the names and addresses of the debtor’s preferential creditors with the amounts of their respective claims;
(d)
the names and addresses of the debtor’s unsecured creditors, with the amounts of their respective claims;
(e)
particulars of any debts owed by the debtor to persons who are associates of his or any debts owed by such persons to the debtor; and
(f)
such other particulars (if any) as the nominee may in writing require to be furnished for the purposes of making his report to the court on the debtor’s proposal.
(4)  The statement of affairs shall be made up to —
(a)
a date not more than 2 weeks before the date of the notice to the nominee under rule 70; or
(b)
such earlier date (not being more than 2 months before the date of the notice to the nominee under rule 70) as the nominee may allow, except that the nominee shall in such a case give his reasons for granting the allowance in his report to the court on the debtor’s proposal.
(5)  The statement shall be verified —
(a)
by the debtor; or
(b)
where the debtor is a firm, by each partner in the firm who joined in the preparation of the proposal for the voluntary arrangement.
Additional disclosure for assistance of nominee
76.  If it appears to the nominee that he cannot properly prepare his report on the basis of information in the debtor’s proposal and statement of affairs, he may call on the debtor to provide him with —
(a)
further and better particulars as to the circumstances in which, and the reasons why, the debtor is insolvent or, as the case may be, threatened with insolvency;
(b)
particulars of any previous proposals which have been made by the debtor under Part V of the Act;
(c)
any further information with respect to the debtor’s affairs which the nominee thinks necessary for the purposes of his report;
(d)
information whether the debtor has at any time been involved in the affairs of any company (whether or not incorporated in Singapore) which has become insolvent; or
(e)
particulars as to the circumstances in which the debtor has at any time been adjudged bankrupt, or entered into an arrangement with his creditors.
Access to accounts and reports
77.  For the purpose of enabling the nominee to consider the debtor’s proposal and prepare his report on it, the debtor shall give the nominee access to the debtor’s accounts and records.
Nominee’s report on proposal
78.
—(1)  The nominee shall file his report in court not less than 2 days before the interim order ceases to have effect and shall exhibit —
(a)
a copy of the debtor’s proposal (with amendments, if any, made under rule 69); and
(b)
a copy or summary of any statement of affairs provided by the debtor.
(2)  In his report, the nominee shall inform the court his opinion as to whether a meeting of the debtor’s creditors should be summoned under section 50 of the Act and the reasons therefor.
(3)  The nominee shall send a copy of —
(a)
the debtor’s proposal;
(b)
the nominee’s report and his comments accompanying it (if any); and
(c)
a summary of the debtor’s statement of affairs,
to any person who has filed a bankruptcy application against the debtor.
Replacement of nominee
79.  Where the debtor intends to apply to the court under section 49(3) of the Act for the nominee to be replaced, he shall serve the application on the nominee at least 2 days before the hearing.
Action on proposal
Consideration of nominee’s report
80.
—(1)  At the hearing by the court to consider the nominee’s report, any of the persons who have been given notice under rule 72(1) may appear or be represented.
(2)  The debtor shall —
(a)
serve a sealed copy of any order made by the court at the hearing on the nominee; and
(b)
give notice of the making of the order to any person who was given notice of the hearing pursuant to rule 72 but who was not present or represented at the hearing.
Summoning of creditors’ meeting
81.
—(1)  If in his report the nominee states that in his opinion a meeting of creditors should be summoned to consider the debtor’s proposal, the date on which the meeting is to be held shall be not less than 14, nor more than 28, days from the date on which the nominee’s report is filed in court under rule 78.
(2)  Notices calling the meeting shall be sent by the nominee, at least 14 days before the day fixed for it to be held, to all the creditors specified in the debtor’s statement of affairs, and every other creditor of whom the nominee is otherwise aware.
(3)  With every notice summoning the meeting, there shall be sent out forms of proxy.
(4)  Each notice sent under this rule shall —
(a)
specify the court to which the nominee’s report on the debtor’s proposal has been delivered;
(b)
state the effect of rule 85(1), (3), (4) and (5); and
(c)
be accompanied by —
(i)
a copy of the proposal;
(ii)
a copy of the statement of affairs or, if the nominee thinks fit, a summary of the statement of affairs, which summary shall include a list of the creditors and the amounts of their debts; and
(iii)
the nominee’s comments on the proposal.
Nominee to be chairman of meeting
82.  The nominee shall be the chairman of the creditors’ meeting.
Chairman of meeting as proxy-holder
83.  The chairman shall not, by virtue of any proxy held by him, vote to increase or reduce the amount of the remuneration or expenses of the nominee or the expenses relating to the supervision of the proposed arrangement, unless the proxy specifically directs him to vote in that way.
Entitlement to vote
84.
—(1)  Every creditor who has been given notice of the creditors’ meeting shall be entitled to vote at the meeting or any adjournment of it.
(2)  Votes shall be calculated according to the amount of the debt as at the date of the meeting.
(3)  A creditor shall not vote in respect of —
(a)
a debt for an unliquidated amount; or
(b)
any debt the value of which is not ascertained,
unless the chairman agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote.
(4)  The chairman shall have the power to admit or reject a creditor’s claim for the purpose of his entitlement to vote, and such power shall be exercisable with respect to the whole or any part of the claim.
(5)  The chairman’s decision on entitlement to vote shall be subject to appeal to the court by any creditor or by the debtor.
(6)  If the chairman is in doubt whether a claim should be admitted or rejected, he shall mark it as objected to and allow the creditor to vote, subject to his vote being subsequently declared invalid if the objection to the claim is sustained.
(7)  If on an appeal the chairman’s decision is reversed or varied by the court or a creditor’s vote is declared invalid, the court may —
(a)
order another meeting to be summoned; or
(b)
make such other order as it thinks just.
(8)  The court shall not make any order referred to in rule 7(a) or (b) unless the court considers that the matter is such as to give rise to unfair prejudice or a material irregularity.
(9)  An application to the court by way of appeal under paragraph (5) against the chairman’s decision shall not be made after the end of the period of 28 days beginning with the day on which the nominee’s report is made to the court under section 52 of the Act.
(10)  The chairman shall not be personally liable for any costs incurred by any person in respect of an appeal under paragraph (5).
Requisite majorities
85.
—(1)  At the creditors’ meeting, the creditors may by special resolution approve any proposal or modification thereof.
(2)  Any other resolution proposed at the meeting shall be approved by ordinary resolution.
(3)  In the following cases, there shall be left out of account a creditor’s vote in respect of any claim or part of a claim:
(a)
where written notice of the claim was not given, either at the meeting or before it, to the chairman;
(b)
where the claim or part thereof is secured;
(c)
where the claim is in respect of a debt wholly or partly on, or secured by, a current bill of exchange or promissory note, unless the creditor is willing —
(i)
to treat the liability to him on the bill or note of every person who is liable on it antecedently to the debtor, and against whom a bankruptcy order has not been made (or, in the case of a company, which has not gone into liquidation), as a security in his hands; and
(ii)
to estimate the value of the security and (for the purpose of entitlement to vote, but not of any distribution under the arrangement) to deduct it from his claim.
(4)  The decision whether a vote is to be left out of account under paragraph (3) shall lie with the chairman.
(5)  If the chairman uses a proxy contrary to rule 83, his vote with that proxy shall not count towards any majority under this rule.
(6)  Paragraphs (5) to (10) of rule 84 shall apply, with the necessary modifications, to the decision of the chairman under this rule as they apply to a decision of the chairman on entitlement to vote under that rule.
Adjournments
86.
—(1)  The chairman of the creditors’ meeting —
(a)
may, if the requisite majority for the approval of the voluntary arrangement (with or without modifications) has not been obtained or if for any other reason he thinks it fit to do so; and
(b)
shall, if it is so resolved by the meeting,
adjourn the meeting from time to time, except that such adjournment shall not be more than 14 days from the date of the first meeting.
(2)  If the meeting is adjourned, notice of the fact shall be given by the chairman to the court.
(3)  If, upon the expiry of 14 days from the date of the first meeting, the proposal is not agreed to by the meeting, it shall be deemed to be rejected.
Debtor to put nominee in possession of assets
87.  The debtor shall, after the approval of the voluntary arrangement, do all that is required for putting the nominee in possession of the assets included in the arrangement.
Chairman to prepare report
88.
—(1)  Upon conclusion of the creditors’ meeting, the chairman shall prepare a report and file a copy thereof in court within 4 days from the date of the meeting being held and the court shall cause that copy to be endorsed with the date of filing.
(2)  The report shall —
(a)
state whether the proposal for the voluntary arrangement was approved or rejected and, if approved, with what modifications (if any);
(b)
set out the resolutions which were taken at the meeting, and the decision on each one of such resolutions;
(c)
list the creditors (with their respective values) who were present or represented at the meeting, and how they voted on each resolution; and
(d)
include such further information (if any) as the chairman thinks it appropriate to make known to the court.
Notice of results of creditors’ meeting
89.
—(1)  The notice of the results of the creditors’ meeting shall be given to all the creditors who have been given notice of the meeting under rule 81(2), including those of such creditors who did not attend the meeting.
(2)  The notice shall be sent immediately after a copy of the chairman’s report is filed in court under rule 88(1).
Procedure for review of meeting’s decision
Application for review
90.
—(1)  The person who makes an application for the court to review a decision of the creditor’s meeting under section 54 of the Act shall —
(a)
at least 3 days before the date of the hearing of the application, serve a copy of the application; and
(b)
serve sealed copies of any order made by the court on the application,
on the debtor and the nominee supervising the implementation of the voluntary arrangement.
(2)  If the order includes a direction by the court under section 54 (2) ( b) of the Act for any further creditors’ meeting to be summoned, a copy of the order shall also be given by the applicant to whoever is, in accordance with the direction of the court, required to summon the meeting.
(3)  The debtor shall —
(a)
upon receiving a copy of the court’s order, give notice of it to all persons who were sent notice of the creditors’ meeting or who attended the meeting which approved the voluntary arrangement and such other persons as the court directs; and
(b)
within 7 days of service of the order (or within such longer period as the court may allow), give notice to the court whether he intends to make a revised proposal to the creditors, or to invite re-consideration of the original proposal.
Nominee’s accounts and reports
91.
—(1)  Where the voluntary arrangement authorises or requires the nominee —
(a)
to carry on the debtor’s business or to trade on his behalf or in his name;
(b)
to realise any assets of the debtor; or
(c)
otherwise to administer or dispose of any funds of the debtor,
the nominee shall keep accounts and records of his acts and dealings in and in connection with the arrangement, including in particular records of all receipts and payments of moneys.
(2)  The nominee shall, at least once in every 12 months beginning with the date of his appointment, prepare a summary of such receipts and payments, and send copies of the summary, accompanied by his comments on the progress and efficacy of the arrangement, to —
(a)
the court;
(b)
the debtor; and
(c)
all those of the debtor’s creditors who are bound by the arrangement.
(3)  If in any period of 12 months the nominee has made no payments and had no receipts, he shall at the end of that period send a statement to that effect to —
(a)
the court;
(b)
the debtor; and
(c)
all those of the debtor’s creditors who are bound by the arrangement.
(4)  A summary provided under paragraph (2) shall relate to a period beginning with —
(a)
the date of the implementation of the arrangement by the nominee; or
(b)
the day following the end of the last period for which a summary was prepared under this rule,
as the case may be, and copies of the summary shall be sent out, as required by paragraph (2), within the 2 months following the end of the period to which the summary relates.
(5)  If the nominee is not authorised as mentioned in paragraph (1), he shall, not less often than once in every 12 months beginning with the date of his appointment, send a report on the progress and efficacy of the voluntary arrangement to —
(a)
the court;
(b)
the debtor; and
(c)
all those of the debtor’s creditors who are bound by the arrangement.
(6)  The court may, on application by the nominee, vary the dates on which his obligation under this rule to send summaries or reports arises.
Fees, costs, charges and expenses of voluntary arrangement
92.  The fees, costs, charges and expenses that may be incurred in connection with the voluntary arrangement are —
(a)
any disbursements made by the nominee prior to the approval of the arrangement;
(b)
any remuneration for the services of the nominee as are agreed between himself and the debtor; and
(c)
any fees, costs, charges or expenses which —
(i)
are sanctioned by the terms of the arrangement; or
(ii)
would be payable, or correspond to those which would be payable, in the debtor’s bankruptcy.
Completion of arrangement
Nominee to send notice
93.
—(1)  The nominee shall, within 28 days after the final completion of the voluntary arrangement, file with the court and send to all creditors of the debtor who are bound by the arrangement, and to the debtor, a notice that the arrangement has been fully implemented.
(2)  The notice shall enclose a report by the nominee summarising all receipts and payments made by him in pursuance of the arrangement, and explaining any difference in the actual implementation of it as compared with the proposal as approved by the creditors’ meeting.
(3)  The court may, on application by the nominee, extend the period of 28 days under paragraph (1).