On 20/05/2013,
you requested for the version in force on 20/05/2013
incorporating all amendments published on or before 20/05/2013.
The closest version currently available is that of 01/03/2012.
Moratorium for insolvent debtor
44. This Part shall not apply —
(a)
to any individual debtor who is an undischarged bankrupt; or
(b)
to any firm against which a bankruptcy order has been made and from which bankruptcy the partners in the firm have not been discharged.
45.
—(1) Subject to subsection (2), any insolvent debtor who intends to make a proposal to his creditors for a composition in satisfaction of his debts or a scheme of arrangement of his affairs (referred to hereinafter as a voluntary arrangement) may apply to the court for an interim order under this Part.
(2) No partner in an insolvent firm shall apply to the court for an interim order in respect of the firm unless all or a majority of the partners in the firm join or intend to join in the making of the proposal for a voluntary arrangement.
(3) An interim order shall have the effect that, during the period for which it is in force —
(a)
where the interim order is in respect of an individual debtor —
(i)
no bankruptcy application may be made or proceeded with against the debtor; and
(ii)
no other proceedings, execution or other legal process may be commenced or continued against the person or property of the debtor without the leave of the court; and
(b)
where the interim order is in respect of a firm —
(i)
no bankruptcy application may be made or proceeded with against the firm or, except with the leave of the court, any partner therein; and
(ii)
no other proceedings, execution or other legal process may be commenced or continued against the firm or its property or against the person or property of any partner in the firm, without the leave of the court.
[42/2005]
(4) An interim order shall cease to have effect 42 days after the making thereof unless the court otherwise directs.
[37/99]
46.
—(1) Every debtor making a proposal for the purpose of this Part shall in such proposal appoint a nominee to act in relation to the voluntary arrangement either as trustee or otherwise for the purpose of supervising its implementation.
(2) No person shall be appointed as a nominee unless he is —
(a)
registered as a public accountant under the Accountants Act (Cap. 2);
(b)
an advocate and solicitor; or
(c)
such other person as the Minister may, by order published in the Gazette, prescribe.
(3) The Minister may make rules prescribing the scale of fees to be charged by nominees assisting debtors in respect of voluntary arrangements.
[37/99]
47.
—(1) At any time when an application under section 45 for an interim order is pending, the court may stay any action, execution or other legal process against the debtor in respect of whom the application has been made or the property of such debtor.
(2) Any court in which proceedings are pending against a debtor may, on being satisfied that an application under section 45 for an interim order has been made in respect of the debtor, stay the proceedings or allow them to continue on such terms as the court may think fit.
(3) Where the debtor in respect of whom an application under section 45 for an interim order is pending is a firm, the power of the court under subsections (1) and (2) shall apply to any action, execution or other legal process or proceedings against the person or property of any partner in the firm.
48.
—(1) The court shall not make an interim order on an application under section 45 unless it is satisfied that —
(a)
the debtor intends to make a proposal for a voluntary arrangement;
(b)
no previous application for an interim order has been made by or in respect of the debtor during the period of 12 months immediately preceding the date of the application; and
(c)
the nominee appointed by the debtor’s proposal is qualified and willing to act in relation to the proposal.
(2) The court may make an interim order if it thinks that it would be appropriate to do so for the purpose of facilitating the consideration and implementation of the debtor’s proposal.
49.
—(1) Where an interim order has been made, the nominee shall, before the order ceases to have effect, submit a report to the court stating —
(a)
whether, in his opinion, a meeting of the debtor’s creditors should be summoned to consider the debtor’s proposal; and
(b)
if in his opinion such a meeting should be summoned, the date on which, and the time and place at which, he proposes the meeting should be held.
(2) For the purpose of enabling the nominee to prepare his report, the debtor shall submit to the nominee —
(a)
a document setting out the terms of the voluntary arrangement which the debtor is proposing; and
(b)
where the debtor is an individual, a statement of his affairs containing —
(i)
such particulars of his assets, creditors, debts and other liabilities as may be prescribed; and
(ii)
such other information as may be prescribed; or
(c)
where the debtor is a firm, a statement of its affairs containing —
(i)
such particulars of the assets, creditors, debts and other liabilities of the firm and of each partner therein, as may be prescribed; and
(ii)
such other information as may be prescribed.
(3) Where the nominee has failed to submit the report required by this section within the time given, the court may, on an application made by the debtor, do one or both of the following:
(a)
direct that the nominee shall be replaced by another person qualified to act as a nominee;
(b)
direct that the interim order shall continue, or if it has ceased to have effect be renewed, for such further period as the court may think fit.
(4) The court may, on the application of the nominee, extend the period for which the interim order has effect so as to allow the nominee to have more time to prepare his report.
(5) If the court is satisfied on receiving the nominee’s report that a meeting of the debtor’s creditors should be summoned to consider the debtor’s proposal, the court shall direct that the period for which the interim order has effect shall be extended for such further period as it may think fit, for the purpose of enabling the debtor’s proposal to be considered by the debtor’s creditors in accordance with the following provisions of this Part.
(6) The court may discharge the interim order if it is satisfied, on the application of the nominee —
(a)
that the debtor has failed to comply with subsection (2); or
(b)
that for any other reason it would be inappropriate for a meeting of the debtor’s creditors to be summoned to consider the debtor’s proposal.
50.
—(1) Where a nominee has reported to the court under section 49 that a meeting of the debtor’s creditors should be summoned, the nominee shall, unless the court otherwise directs, summon that meeting in accordance with his report.
(2) The nominee shall summon to the meeting every of the debtor’s creditors of whose claim and address he is aware.