Seychelles
Insolvency Act, 2013
Act 4 of 2013
- There are multiple commencements
- [This is the version of this document at 1 June 2020.]
Provisions | Status |
---|---|
Part I (section 1–2); Part II (section 3–86); Part III (section 87–94); Part IV (section 95–174); Part V (section 175–202); Part VI (section 203–279); Part VII (section 280–348); Part IX (section 353–355); Part X (section 356–379); Part XI (section 380–391) | commenced on 22 July 2013. |
Part VIII (section 349–352) | not yet commenced. |
Part I – Preliminary
1. Short title and commencement
2. Interpretation
In this Act, unless the context otherwise requires—"administrator" means the person appointed as administrator of a company in reorganisation under section 206(1);"articles" has the meaning assigned to it under the Companies Act;"assets" means any property in which a person has an interest or over which the person has any rights;"attorney" means an attorney-at-law as defined under the Legal Practitioners Act;"bankrupt" means a person who has been declared bankrupt;"bankruptcy demand" means a demand referred to under section 5;"charge"—(a)means a right or interest in relation to property owned by a debtor by virtue of which a creditor of the debtor is entitled to claim payment in priority to other creditors; and(b)includes a fixed or a floating charge;"Civil Code" means the Civil Code of Seychelles Act;"Court" means the Supreme Court of Seychelles;"contributory" has the meaning assigned to it by section 127;"commencement of winding up" has the meaning assigned to it by sections 101 and 148;"Companies Act" means the Companies Act, 1972;"company" has the meaning assigned to it under the Companies Act;"composition" means a post bankruptcy composition referred to in section 81;"creditors’ voluntary winding up" has the meaning assigned to it by section 146(1)(a);"debtor" means—(a)a person against whom a bankruptcy petition has been filed under Part II; or(b)a company in the course of being wound up by the Court or by way of creditors’ voluntary winding up;"Deputy Official Receiver" means the Deputy Official Receiver appointed under section 353(1)(b);"director" in relation to a company, has the meaning assigned to it under the Companies Act;"financial institution" has the meaning assigned to it under the Financial Institutions Act;"Land Registrar" includes—(a)the Land Registrar appointed under the Land Registration Act; or(b)the Registrar of Deeds appointed under the Mortgage and Registration Act;"members’ voluntary winding up" has the meaning assigned to it by section 146(1)(b);"Minister" means the Minister responsible for Finance;"officer" in relation to a company, has the meaning assigned to it under the Companies Act;"Official Receiver" means the Official Receiver appointed under section 353(1)(a);"promoter" means any person engaged in the formation of a company, or in raising money to enable a company to be formed or to acquire any assets or an existing business, or in negotiating the acquisition of any assets or an existing business by or for a company, but does not include a person who acts only in a professional capacity on behalf of a promoter;"provable debt" has the meaning assigned to it by section 293;"Provisional Receiver" means the Provisional Receiver appointed under section 18;"prescribed" means prescribed by way of regulations;"property" means land, movables, whether tangible or not, debts, claims, rights of action, licences, concessions, patents, copyright, trademarks, designs, knowledge and information which has been confidentially communicated or which is protected by law similarly to intangible movables, all other choses in action of any kind whatsoever, and the capital of a company which has not been called or paid up or credited as paid up;"Registrar" means the Registrar of Companies;"relative", in relation to a person, means—(a)his or her parent, spouse, child, brother or sister;(b)the parent, child, brother or sister of his or her spouse,and includes a nominee or trustee of a person referred to in paragraph (a) or (b);"secured creditor" means a person holding a charge on or over property owned by a debtor;"Securities Act" means the Securities Act, 2007;"special manager" has the meaning assigned to it by section 130;"spouse", in relation to a person, includes a person with whom the person has a relationship in the nature of marriage;"undistributed money" means any money—(a)received by the Official Receiver or a liquidator from the realisation of the assets of a debtor; and(b)required to be paid to any person under sections 338 to 343,but which cannot be distributed for any reason."usher" means an usher of the Court;"winding up resolution" has the meaning assigned to it by section 146(11);Part II – Bankruptcy
Sub-Part I – Declaration of bankruptcy
3. Declaration of bankruptcy
A person, other than a company, may be declared bankrupt by a bankruptcy order made by the Court on the petition of the person or creditors of the person in accordance with the provisions of this Part.4. Creditor’s petition
5. Bankruptcy demand
6. Failure to comply with bankruptcy demand
7. Adjournment of creditor’s petition or refusal to declare bankruptcy
8. Judgment under appeal
Where the creditor’s petition for a bankruptcy order is based on the ground that the debtor failed to comply with a bankruptcy demand, and the debtor has appealed the judgment or order underlying the bankruptcy demand, and the appeal is still to be determined, the Court may—9. Underlying debt not determined
10. Court’s power where more than one petition or more than one debtor
11. Order on offer to creditors
12. Substitution of creditor
13. Debtor’s petition
14. Bankruptcy order on debtor’s petition
15. Report of Official Receiver
16. Debtors’ joint petition where partnership exits
17. Expeditious administration
Sub-Part II – Provisional Receiver
18. Appointment of Official Receiver as Provisional Receiver
Sub-Part III – Effect of declaration of bankruptcy
19. Date of declaration of bankruptcy and disqualification of bankrupt
20. Procedure following declaration of bankruptcy
21. Stay of proceedings
22. Execution process after declaration of bankruptcy
23. Statement of affairs
24. First meeting of creditors
25. Appointment of expert or committee to assist Official Receiver
26. Access to information regarding debtor’s estate
A creditor or an attorney or accountant acting for the creditor, who has lodged a proof of debt may at any reasonable time inspect and take extracts or copies of—27. Bankrupt’s death after declaration of bankruptcy
Where a bankrupt dies after a declaration of bankruptcy, the bankruptcy continues in all respects as if the bankrupt were alive.Sub-Part IV – Bankrupt’s estate
28. Bankrupt’s estate
29. Vesting in Official Receiver
On a declaration of bankruptcy by the Court, the bankrupt’s estate shall vest in the Official Receiver without the need for any conveyance, assignment or transfer.30. Property acquired by debtor after declaration of bankruptcy
Subject to section 31, during the period from the date of presentation of a bankruptcy petition up to the discharge of the bankrupt—31. Transaction in good faith and for value
32. Rights under execution or attachment
33. Duties of usher as to goods seized
34. Bona fide transaction without notice
Subject to sections 318 to 336, nothing in this Act shall, in the case of a bankruptcy, invalidate—35. Interest in immovable property
36. Transfer of shares and other securities
37. Goods on hire purchase
Sub-Part V – Duties of bankrupt
38. General duties of bankrupt
A bankrupt shall, to the extent possible, assist in the realisation of his or her property and the distribution of the proceeds amongst his or her creditors, and shall—39. Financial information to be provided
Sub-Part VI – Control of bankrupt
40. Financial contribution to payment of debts
41. Bankrupt may not enter business
An undischarged bankrupt shall not, without the consent of the Official Receiver or the Court, directly or indirectly—42. Search and seizure of property
43. Vacate property vested in Official Receiver
Notwithstanding any other enactment, the Official Receiver may require a bankrupt and any of his or her relatives to vacate any land or building that is part of the property vested in the Official Receiver, and the bankrupt and any of his or her relatives shall comply with the request.44. Right to inspect document
A bankrupt may, at any convenient time, inspect and take extracts or copies of—45. No power of recovery of property or release or discharge
Subject to sections 30 and 31, after declaration of bankruptcy, a bankrupt and any person, other than the Official Receiver, who claims through or under the bankrupt, shall not recover, or give release or discharge in relation to, any property forming part of the bankrupt’s estate.46. Defeating beneficial interest
47. Bankrupt’s bank accounts
48. Allowance to bankrupt
49. Examination of bankrupt and others
50. Public examination of bankrupt
51. Notice of public examination
52. Time for holding public examination
The Court shall hold the public examination of the bankrupt at least 7 days after service of the notice on the bankrupt under section 51(1).53. Official Receiver to file report before public examination
Prior to the public examination of the bankrupt, the Official Receiver shall file with the Court a report on—54. Conduct of public examination
55. Record of public examination
56. When public examination ends
The public examination of a bankrupt shall end when the Court is satisfied that the bankrupt’s conduct, dealings and property have been sufficiently investigated and makes an order that the examination has been completed.57. Bankrupt’s failure to attend public examination
If the bankrupt does not appear for the examination at the appointed time and has no reasonable excuse for his or her non-appearance, the Court may—58. Bankrupt’s expenses in attending public examination
Subject to section 57(b), a bankrupt who attends a public examination shall be paid such expenses for attending the examination as may be prescribed.59. Official Receiver may examine company documents, personnel, and shareholders
60. Company controlled by bankrupt or associate
For the purposes of section 59,—61. Person to answer all questions during public examination
A person who is examined or questioned under this Act shall answer all questions relating to the bankrupt’s conduct, dealings, and property.62. Non-admissibility of statements in criminal proceedings
63. Representation
64. Documents and other records
Sub-Part VII – Powers and duties of Official Receiver
65. Official Receiver’s powers in relation to bankrupt’s property
66. Official Receiver’s general powers in relation to bankruptcy
The Official Receiver shall have the power to—67. Bank account and investment
68. Official Receiver’s discretion
Sub-Part VIII – End of bankruptcy
69. Discharge from bankruptcy
70. Application for discharge
71. Official Receiver’s report
72. Notice of opposition to discharge
73. Grant or refusal of discharge
74. Engaging in business after discharge
75. Rescission of order of discharge
76. Absolute discharge
77. Release from debts
78. Other consequences of discharge
79. Cancellation of declaration of bankruptcy
80. Consequences of cancellation
Sub-Part IX – Post bankruptcy composition
81. Resolution to accept composition
82. Procedure for approval of composition
83. Unpaid balance of debt obtained by fraud
84. Time for approval and execution of composition
85. Endorsement of composition by Court
86. Enforcement of composition
The Court may—Part III – Alternative to formal bankruptcy
87. Interpretation
For the purposes of this Part—88. Offer by insolvent
89. Filing of offer with Court
90. Meeting of creditors to consider offer
91. Court to approve offer after acceptance by creditors
92. Enforcement
93. Duties of insolvent and receiver
94. Cancellation or variation of offer
Part IV – Winding up of companies
Sub-Part I - General
95. Modes of winding up
Sub-Part II - Winding up by the Court
96. Grounds for winding up by the Court
A company may be wound up by the Court if—97. Meaning of inability to pay debts
A company shall be deemed to be unable to pay its debts if—98. Petitioners
99. Preliminary costs
100. Power of Court on presentation of petition for winding up
101. Commencement of winding up by the Court
102. Stay of proceedings
103. Avoidance of disposition of company’s property
104. Lodging and service of winding up order
105. Custody and control or vesting of company’s assets
106. Statement of affairs
107. Report by the Official Receiver
108. Documents in possession of receiver
109. Documents creating charge over property
110. Duty to identify and deliver property
A present or former director or employee of a company in winding up shall—111. Provision of essential services
112. Provisional liquidator
113. Appointment of liquidator
114. Provisions as to liquidator other than the Official Receiver
115. General provisions as to liquidators
116. Remuneration of liquidator
117. Main duty of liquidator
118. Liquidator not required to act in certain circumstances
Notwithstanding anything to the contrary in this Part—119. Powers of liquidator
120. Control over exercise of liquidator’s powers
121. Supervision of liquidators by Official Receiver
Where a person other than the Official Receiver is appointed a provisional liquidator or liquidator, the Official Receiver—122. Release of liquidator
123. Constitution of committees of inspection
124. Appointment of members of committee and proceedings by it
125. Power of Registrar where no committee of inspection
Where in the case of a winding up there is no committee of inspection, the Registrar may, on the application of the liquidator, do any act or thing or give any direction or permission which is by this Act authorised or required to be done or given by the committee.126. Provisions as to meetings of shareholders and creditors
127. Meaning of contributory
The term "contributory" means every person liable to contribute to the assets of a company in the event of its being wound up, and for the purposes of all proceedings for determining, and all proceedings prior to the final determination of, the persons who are to be deemed contributories, includes any person alleged to be a contributory.128. Liability of contributories
129. Enforcement of liability of contributories
130. Special manager
131. Receiver for debenture holders or creditors
Where an application is made to the Court to appoint a receiver on behalf of debenture holders or other creditors of a company that is being wound up by the Court, the Court may grant the application on such terms as the Court thinks appropriate.132. Stay of winding up
133. Settlement of list of contributories
134. Power of Court in relation to contributories
135. Power of arrest
The Court may, at any time after the presentation of a petition for the winding up and before the making of a winding up order, where it has reasonable ground to believe that a contributory or a director or former director of the company is about to leave Seychelles or otherwise to abscond or to remove or conceal any of his or her property for the purpose of evading payment of a call or avoiding examination respecting the affairs of the company cause the contributory, director or former director to be arrested and his or her books and other movable property to be seized.136. Delivery of property to liquidator
The Court may, at any time after making a winding up order in respect of a company, require any member, shareholder or contributory, or any director, trustee, receiver, banker, agent or officer of the company to pay, deliver, convey, surrender, or transfer forthwith, or within such time as the Court directs, to the liquidator any assets, or books and papers in his or her hands to which the company is prima facie entitled.137. Examination of directors, officers, etc
138. Miscellaneous powers of Court
139. Public examination of directors etc
140. Powers of Court cumulative
Any powers conferred on the Court by this Act shall be in addition to, and not in derogation of, any existing powers of instituting proceedings against any contributory or debtor of the company, or the heirs, estate or assets of any contributory or debtor, for the recovery of any call or other sums.141. Delegation of Court’s powers to liquidator
Provision may be made by regulations for enabling or requiring all or any of the powers and duties conferred and imposed on the Court by this Act in respect of the following matters relating to a company which is being wound up by the Court, namely—142. Pooling of assets of related companies
143. Guidelines for orders on pooling of assets
144. Dissolution of companies
145. Enforcement and appeals from Court orders
Sub-Part III - Voluntary winding up
146. Resolutions for voluntary winding up
147. Notice of winding up resolution
When a company has passed a winding up resolution it shall within 7 days after the passing of the resolution—148. Commencement of voluntary winding up
A voluntary winding up of a company shall commence—149. Effect of voluntary winding up
150. Avoidance of transfer of shares etc
Any transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding up, shall be void.151. Declaration of solvency
152. Appointment and powers of liquidator
153. Vacancy in office of liquidator
154. Conversion of a member’s voluntary winding up into a creditor’s voluntary winding up
155. First meeting of creditors
156. Meetings of creditors generally
Section 126 shall apply to meetings of creditors in a creditors’ voluntary winding up as it applies to meetings of creditors in a winding up by the Court.157. Liquidator in creditor’s voluntary winding up
158. Committee of inspection
159. Property and proceedings
Sub-Part IV - Provisions applicable to all forms of voluntary winding up
160. Power of Court to appoint and remove liquidator
161. Powers of liquidator
162. Power of Court to determine questions and to exercise powers of the Court in winding up by the Court
163. Order that company in voluntary winding up shall be wound up by the Court
The voluntary winding up of a company shall not affect the power of the Court to order that the company shall be wound up by the Court on the application of any person who may present a petition under section 98, but on the hearing of the petition the Court shall—164. Annual meeting of shareholders and creditors
165. Final meeting and dissolution in voluntary winding up
166. Provisions as to general meetings of company in voluntary winding up
In connection with general meetings of a company which is being wound up voluntarily—Sub-Part V - Provisions applicable to all modes of winding up
167. Disqualification of body corporate from appointment as liquidator
A body corporate shall not be qualified for appointment as liquidator of a company, whether in a winding up by the court or in a voluntary winding up, and any appointment made in contravention of this provision shall be void.168. Validity of acts of liquidator and disposition of property
169. Fraudulent trading
170. Misfeasance proceedings
171. Ascertainment of wishes of creditors, members etc
The court may, as to all matters relating to the winding up of a company, have regard to the wishes of the shareholders, contributories, creditors and debenture holders of the company, as proved to it by any sufficient evidence, and may, if it thinks fit, for the purpose of ascertaining those wishes, direct meetings of shareholders, contributories, creditors, or debenture holders to be called, held, and conducted in such manner as the court directs, and may appoint a person to act as chairperson of any such meeting and to report the result to the court.172. Affidavits etc
173. Enforcement of the provisions of the memorandum
If by the memorandum of a comраnу it is provided that upon the winding up of the company any assets remaining after the debts and liabilities of the company and the costs and expenses of the winding up have been discharged shall be applied otherwise than by being distributed among the shareholders and contributories of the company, such assets shall be applied accordingly, and the Attorney-General may take proceedings for the application of such assets in the manner directed by the memorandum of the company, or for a purpose similar to the application directed by the memorandum if that application cannot be carried out.174. Avoidance of dissolution
Where a company has been dissolved, after being wound up by the court or voluntarily, the court may at any time within 12 years of the date of the dissolution, on an application being made for the purpose by the liquidator of the company or by any other person who appears to the court to be interested, make an order, upon such terms as the court thinks fit, rescinding the dissolution, and upon a copy of the order being delivered to the Registrar the company shall, subject to any directions by the court, be deemed to have continued in existence as if it had not been dissolved.Part V – Receivers and managers
Sub-Part I – Appointment, termination of appointment and remuneration of receivers
175. Meaning of receivers and managers
176. Appointment of receiver
177. Qualification of receiver
178. Appointment of receiver under instrument
179. Appointment of receiver by Court
180. Notice of appointment of receiver
181. Notice of receivership
182. Vacancy in office of receiver
183. Remuneration of receiver or manager
Sub-Part II – Powers and duties of receivers
184. Powers of receiver
185. Precedence among receivers
186. Execution of documents
187. Exercise of powers of receiver
188. Statement of company’s affairs
189. Contents of statement of affairs
190. Extension of time for preparing reports
191. Enforcement of receivers’ duty to make returns
192. Validity of acts of receiver
193. Consent of mortgagee to sale of property
194. Duty to notify breaches of Acts
195. Notice of end of receivership
A person who held office as receiver shall, within 10 working days after he or she ceases to act as receiver, send or deliver to the Registrar a notice, in writing, that he or she has ceased to act as receiver.196. Preferential claims
197. Powers of receiver on winding up
Sub-Part III – Liability of receiver
198. Liability of receiver
199. Relief from liability
Sub-Part IV – Control of receiver
200. Court supervision of receiver
A receiver may apply to the Court for directions in relation to any particular matter arising in connection with the performance of his or her functions, and on any such application the Court may give such directions, or may make such order declaring the rights of persons before the Court or otherwise, or may order any person to do or abstain from doing anything, as the Court thinks just or necessary in the circumstances.201. Termination or limitation of receivership by the Court
202. Order for protection of property in receivership
The Court may, on making an order removing, or having the effect of removing, a receiver from office, make such order as it thinks fit—Part VI – Company reorganisation
Sub-Part I – General
203. Company reorganisation
"Company reorganisation" means the administration of the business, property and affairs of a company in a way that—204. Interpretation and application of Part VI
Sub-Part II – Commencement and termination of reorganisation
205. Commencement and termination of reorganisation
Sub-Part III – Appointment of administrator
206. Appointment of administrator
207. Appointment of multiple administrators
208. Remuneration of administrator
209. Vacancy in office of administrator
The office of administrator shall become vacant where the administrator—210. Resignation or removal of administrator from office
211. New administrator to fill vacancy due to resignation, death or disqualification
212. Creditors to consider appointment of replacement administrator
Sub-Part IV – Functions and powers of administrator
213. Administrator’s functions
214. Powers of administrator
215. Power of administrator to obtain post-commencement finance
Sub-Part V – Consequences of reorganisation
216. Effect of reorganisation on company officers
217. Effect of reorganisation on employees
218. Effect of reorganisation on dealing with company property
219. Effect of reorganisation on transfer of shares
220. Investigation of company’s affairs by administrator
221. Directors’ statement
222. Right to obtain documents and information
An administrator shall have the powers vested in a liquidator pursuant to section 119.223. Report by administrator
224. Administrator to convene creditors’ meetings
225. Power of Court regarding creditors’ meetings
226. First creditors’ meeting
227. Function of committee of inspection
228. Membership of committee of inspection
A person shall be eligible to become a member of the committee of inspection, if he or she is—229. Meeting to determine future of company
230. Adjournment of meeting to determine the future of company
The meeting to determine the future of the company may be adjourned to a date that is not later than 42 days after the first day on which the meeting was held, unless the Court, on the administrator’s application, orders that the meeting be adjourned for later than 42 days.231. Decisions at meeting to determine the future of company
232. Proposed rescue plan not fully approved
Sub-Part VI – Protection of company’s assets
233. Charge unenforceable
Subject to sections 242 to 246, during the reorganisation of a company, a person shall not enforce a charge over the property of the company, except with—234. Recovery of property
235. Proceedings in Court
The proceedings in a Court against the company or in relation to any of its property, during the reorganisation of the company, shall not be commenced or continued, except with—236. Refusal of administrator’s consent
An administrator shall not be liable in damages for a refusal to give an approval or consent for the purposes of this Part.237. Enforcement process
Any enforcement process in relation to the company’s property, during the reorganisation of the company, shall not be commenced or continued except with the permission of the Court on such terms as the Court thinks appropriate.238. Duties of Registrar of Court in relation to company’s property
239. Lis pendens
For the purposes of any enactment relating to the effect of a lis pendens on purchasers or mortgagees, an application for the appointment of a liquidator to the company shall, during the reorganisation of a company, be taken to be pending and shall constitute a lis pendens.240. Liability of director or relative
A guarantee of a liability of a company, during the reorganisation of the company, except with the Court’s permission on such terms as the Court thinks appropriate, shall not be enforced against—Sub-Part VII – Rights of secured creditors
241. Secured creditors
For the purposes of section 242,—"decision period", in relation to a chargeholder and to a charge over property of a company in reorganisation, means the period that—242. Leave to enforce security
243. Recovery of property before reorganisation
244. Appointment of liquidator to company in reorganisation
245. Act of administrator
Any payment made, transaction entered into, or any other act or thing done, in good faith, by or with the consent of the administrator of a company in reorganisation, shall not be set aside in the winding up of the company.246. Administrator may sell shares
Sub-Part VIII – Rescue plan
247. Rescue plan
248. Execution of plan
249. Procedure if plan not fully approved
250. Act of creditor
A person shall not, in so far as he or she would be bound by a plan if it had already been executed,—251. Company’s failure to execute plan
Where the creditors, at a meeting to determine the future of the company, have passed a resolution that the company execute a rescue plan, and the company fails to do so within the period for execution, the administrator shall—252. Effect of plan
A rescue plan binds—253. Extent to which plan binds creditors
254. Prohibited acts
255. Enforcement of charge or recovery of property
256. Effect of plan on company’s debts
257. Court may rule on validity of plan
258. Variation of plan by creditors
259. Termination of plan
A rescue plan may be terminated—260. Termination of plan by Court
261. Termination of plan by creditors
262. Creditors’ meeting to consider proposed variation or termination of plan
Sub-Part IX – Liability of administrator
263. Liability for debt
264. Non-use notice
265. Administrator’s indemnity
Sub-Part X – Powers of Court
266. Court’s general power
267. Order to protect creditors during reorganisation
On the application of the Registrar or creditors of the company, the Court may make such order on such conditions as it thinks necessary to protect the interests of the creditors of the company during reorganisation.268. Court may rule on validity of administrator’s appointment
If there is doubt, on a specific ground, as to the validity of the appointment of a person as administrator, any of the following persons may apply to the Court for a ruling on the validity of the appointment—269. Administrator may seek directions
270. Court may supervise administrator
271. Order to remedy default
272. Court’s power when office of administrator is vacant
Sub-Part XI – Notices
273. Notice of appointment
274. Notice of execution of rescue plan
As soon as practicable after a rescue plan is executed, the administrator shall—275. Notice of failure to execute rescue plan
Where a company does not execute a rescue plan within the specified period, the administrator shall as soon as practicable—276. Notice of termination of rescue plan by creditors
Where the creditors terminate a rescue plan, the administrator shall as soon as practicable—277. Notice of fact of reorganisation
278. Notice of change of name
Sub-Part XII – Effect of contravention of Part VI
279. Effect of contravention
Any contravention of this Part shall not affect the validity of any act done under this Part, unless the Court otherwise orders.Part VII – Provisions applicable to bankruptcy and winding up
Sub-Part I – Meetings
280. Holding meetings of creditors
A meeting of creditors may be held by—281. Notice of meeting
282. Chairperson of meeting
283. Quorum
284. Voting
285. Proxies
286. Official Receiver or liquidator to report to meeting
If the Official Receiver or liquidator attends a creditors’ meeting or an adjournment of the meeting, the Official Receiver or liquidator shall—287. Attending a creditor’s meeting
288. Bankrupt may be required to attend creditor’s meeting
289. Attendance by non-creditors
A person who is not a creditor of the debtor may attend a creditors’ meeting with the consent of—290. Minutes
291. Corporations may act by representatives
A body corporate which is a creditor may appoint a representative to attend a meeting of creditors on its behalf.292. Regulate own proceedings
Subject to the provisions of this Act, a meeting of creditors may regulate its own procedure.Sub-Part II – Proof of debts
293. Provable debt and proof of debt
294. Procedure for proving debts
295. Uncertain proof
296. Proof of debt payable after declaration of bankruptcy or winding up
297. Mutual credit and set-off
298. Interest on claims
299. Proof of claim
300. Proof of claim by secured creditors
301. Secured creditor realises property
302. Secured creditor values property
303. Secured creditor does not realise or surrender security
Where a secured creditor does not realise or surrender his or her security, he or she shall in accordance with section 304, prior to ranking for dividend, state in his or her proof the particulars of his or her security, the date when it was given, and the value at which he or she assesses it, and shall be entitled to receive a dividend in respect of the balance due to him or her after deducting the value so assessed.304. Secured creditor amends value or subsequently realises security
305. Withdrawal of surrender or new proof of claim by secured creditor
306. Debtor liable under distinct contracts
Where a debtor was at the date of declaration of bankruptcy or on the commencement of winding up, liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contractor, and also as member of a firm, the circumstance that the firms are in whole or in part composed of the same individuals, or that the sole contractor is also one of the joint contractors, shall not prevent proof in respect of the contract, against the properties respectively liable on the contracts.307. Claims for rent
Where any rent or other payment falls due at stated periods, and the declaration of bankruptcy or commencement of winding up occurs at any time other than one of the periods, the person entitled to the rent or payment may prove for a proportionate part of the said rent or payment up to the date of the declaration of bankruptcy or commencement of winding up as if the rent or payment accrued from day to day.308. No interest agreed on claim
On any debt or sum certain, payable at a certain time or otherwise, whereon interest is not reserved or agreed for and which is overdue at the date of the declaration of bankruptcy or commencement of winding up and provable in the bankruptcy or winding up, the creditor may prove for interest at a rate not exceeding 4 per cent per annum to the date of the order from the time when the debt or sum was payable, if the debt or sum is payable by virtue of a written instrument at a certain time, and if payable otherwise, then from the time when a demand in writing has been made, giving the debtor notice that interest will be claimed from the date of the demand until the time of payment.309. Proof of claims not yet payable
A creditor may prove for a debt not payable at the date of declaration of bankruptcy or on commencement of the winding up as if it were payable presently and may receive dividends equally with the other creditors, deducting only a rebate of interest at the rate of 4 per cent per annum computed from the declaration of a dividend to the time when the debt would have become payable according to the terms on which it was contracted.310. Official Receiver or liquidator to examine claims
311. Examination regarding proof of debt
312. Notice to admit or reject proof of debt
313. Court’s power to reverse, vary, expunge or reduce proof of debt
314. Proof of debt improperly admitted
315. Court’s power where proof of debt rejected
316. Procedures for applications to Court
317. Official Receiver or liquidator may administer oath
For the purposes of performing any duty in relation to a proof of debt, the Official Receiver or liquidator may administer oath and take affidavit.318. Secured creditor’s security void
If a creditor’s security is wholly or partly void under the provisions of this Act or any other enactment, the creditor may prove as an unsecured creditor—319. Pre-bankruptcy costs
A person who obtained an order for costs against the debtor prior to declaration of bankruptcy may prove for the amount of the costs when the costs are fixed, even where the amount is fixed after declaration of bankruptcy.320. Debtor is shareholder of company
321. Proof of debt by surety
322. Power to disclaim onerous property
323. Requirement to elect whether to disclaim
Where a person whose rights are likely to be affected by a disclaimer of onerous property gives the Official Receiver or the liquidator, notice in writing requiring the Official Receiver or the liquidator to elect, prior to the close of such date as is stated in the notice, not being a date that is less than 28 days after the date on which the notice is received by the Official Receiver or liquidator, whether to disclaim the onerous property, the Official Receiver or liquidator shall not disclaim the onerous property unless he or she does so prior to the close of that date.324. Voidable preference
325. Voidable charge
326. Charge or security for new consideration
327. Presumption that debtor unable to pay debts due
A debtor who gives a charge within 6 months immediately prior to the date of declaration of bankruptcy or the commencement of the winding up is presumed, unless the contrary is proved, to have been unable to pay his or her or its debts due immediately after giving the charge.328. Security for unpaid purchase price given after sale of property
Where a debtor, after purchasing property, has within 2 years immediately prior to the date of declaration of bankruptcy or the commencement of the winding up given the seller a charge over the property, section 325 shall not affect the charge to the extent that it charges or secures unpaid purchase money, whether it is unpaid in relation to the property over which the charge is given or some other property, or the charge was given not later than 21 days after the date of the sale of the property to the debtor.329. Appropriation of payment by debtor to charge holder
Sub-Part III – Voidable transactions
330. Disposition of property with intent to defraud a creditor
331. Voidable gift
332. Procedure for setting aside voidable transaction
333. Court may order re-transfer or payment
334. Limits on recovery
The Court shall not make an order setting aside a transaction under sections 324, 330 or 331 against a person where the person proves that, when he or she received the property—335. Transaction with debtor for inadequate or excessive consideration
336. Court may order beneficiary to pay value
337. Court’s powers in relation to debtor’s contribution
338. Use of repayment of debtor’s contribution to property
The Official Receiver or the liquidator shall use money repaid under section 337 in the following order—339. Application of debtor’s assets
Sub-Part IV – Distribution of assets and payments to creditors
340. Preferential payments
341. Payment of remaining money to general creditors
342. Payment of surplus to debtor
After paying the claims referred to in section 341, the Official Receiver or liquidator shall, subject to section 338, pay any surplus to the debtor.343. Declaration of dividends
344. Right of personal creditors of partners
345. Right of creditor who has proved debt late
Any creditor who has not proved his or her debt prior to the declaration of any dividend shall be entitled to be paid out of any money for the time being in the possession of the Official Receiver or liquidator, any dividend he or she may have failed to receive prior to the money being made applicable to the payment of any future dividend, but he or she shall not be entitled to disturb the distribution of any dividend declared before his or her debt was proved on the ground that he or she has not participated in it.346. Final dividend
347. Undistributed money
348. Application of funds
Part VIII – Cross-border insolvency
349. Interpretation
350. Application of Model Law
351. Designated foreign insolvency proceedings
352. Power to make rules
The Chief Justice may make rules for—Part IX – Administration
353. Appointment of Official Receiver and Deputy Official Receivers
354. Office and name of Official Receiver
355. Disqualification of Official Receiver in relation to estate of debtor
Part X – Offences
Sub-Part I – Offences by bankrupt
356. Offences in relation to debts
357. Offences involving fraud
358. Failure to keep proper record
359. Other offences
Sub-Part II – Offences relating to winding up
360. Offences by officer or contributory
361. Inducement to appointment as liquidator
362. Interference with documents
363. Offences relating to phoenix company
364. Exception to section 363
365. Offence relating to statement of affairs
366. Offence relating to dissolution
A liquidator who makes default in complying with the requirements of section 144(2) shall be liable to a fine of SCR500 for every day during which he or she is in default.367. Offence relating to winding up
368. Offence relating to members’ voluntary winding up
A liquidator who fails to comply with section 154 shall be liable to a fine not exceeding SCR10,000.369. Offence relating to creditors’ voluntary winding up
If default is made by—370. Offence relating to annual meetings
A liquidator who fails to comply with section 164 within three months after the expiry of each anniversary of the commencement of winding up, he or she shall be liable to a fine of SCR10,000.371. Offence relating to final meeting
372. Failure to comply with sections 167, 169(1) and 174(2)
Sub-Part III – Offences relating to receivership
373. Offences relating to receivership
Sub-Part IV – Miscellaneous offences
374. False or misleading statement
Any person who—375. Creditor’s fraudulent act
Where a creditor, or a person claiming to be a creditor, in any bankruptcy proceeding, willfully and with intent to defraud makes any false claim, or any proof, declaration or statement of account which is untrue in any material particular, he or she commits an offence and shall, on conviction, be liable to a fine not exceeding SCR500,000 and to imprisonment for a term not exceeding 2 years.376. Dealing with company property
377. False proof by creditor
Any person who—378. General penalty
A person who commits an offence under this Act for which no specific penalty is provided shall, on conviction, be liable to a fine not exceeding SCR 5,000.379. Liability after discharge or composition
Where a debtor has committed an offence under this Act, he or she shall not be exempt from being charged for the offence by reason that he or she has obtained his or her discharge or that a composition or other scheme of arrangement has been accepted or approved.Part XI – Miscellaneous provisions
380. Powers of Court
381. Irregularity in proceedings
382. Power to grant relief
383. Fees of Official Receiver
384. Immunity
No action shall lie against the Official Receiver and Deputy Official Receivers in respect of any act done or omitted to be done by the Official Receiver and Deputy Official Receivers in the execution, in good faith, of its or his or her functions under this Act.385. Service of documents on company
Every notice, petition and other documents required to be served on a company under this Act, shall be served at the registered office of the company, or if there is no registered office then at the principal or last known principal place of business of the company if any such can be found, by leaving a copy with any shareholder or any member, officer or employee of the company there, or in case no such shareholder, member, officer or employee can be found there by a leaving at such registered office or principal place of business or by serving it on such shareholder, member, officer or employee of the company as the Court may direct; and where the company is being wound up voluntarily, the petition shall also be served upon the liquidator if any appointed for the purpose of winding up, winding the affairs of the company.386. Deposition as evidence
In the case of the death of a bankrupt or his or her spouse, or of a witness whose evidence has been received by the Court in any proceedings under this Act, the deposition of the person so deceased, purporting to be sealed, or an office copy thereof purporting to be sealed, shall be admitted as prima facie evidence of the matters deposed to in the deposition.387. Time of payment in bankruptcy or winding up
Notwithstanding any other enactment where—388. Act in addition to Companies Act
The provisions of this Act shall be in addition to and not in derogation of the provisions of the Companies Act.389. Regulations
390. Repeal
The Bankruptcy and Insolvency Act, Cap 13 is hereby repealed.391. Savings and transitional
History of this document
01 June 2020 this version
Consolidation
22 July 2013
Commenced
Cited documents 0
Documents citing this one 2
Judgment 2
1. | Ex Parte Fire & Ice Limited (XP 132/2019) [2021] SCSC 851 (3 March 2021) | |
2. | Ex Parte: Isle Security Agency Ltd (XP 170/2017) [2018] SCSC 8244 (16 August 2018) |