Section 163 of Insolvency Act CAP 53: Retention of assets not to affect rights under charge or credit purchase transaction
(1) Subject to subsection (2), the retention of an asset by the bankrupt under section 161 or 162 does not affect rights arising under a valid charge, bailment contract or credit purchase transaction in respect of the asset.
(2) In relation to goods that that are in the possession of the bankrupt under a bailment contract or credit purchase transaction, the Court may make an order authorising the bankruptcy trustee to dispose of the goods as if all the rights of the owner under the contract or agreement were vested in the bankrupt.
(3) An order under subsection (2) may be made—
(a) only on the application of the bankruptcy trustee; and
(b) only if the Court is satisfied that disposal of the goods would be in the overall best interests of the bankrupt's creditors.
(4) An order under subsection (2) is subject to the condition that—
(a) the net proceeds of disposal of the goods; and
(b) any additional money required to be added to the net proceeds so as to produce the amount determined by the Court as the net amount that would be realised on a sale of the goods at market value, be applied towards discharging the amounts payable under the bailment contract or credit purchase transaction.
Enhance Your Research with Bookmarks and Annotations
Here's how you can use these features:
- To bookmark this page, click the "Bookmark this Page" button below the document title.
- To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
- These features are great for organizing your research and keeping track of key information.
- You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.
- Section 164 - Retention provisions not to confer rights to other assets
The fact that the net value of the assets that the bankrupt retains is less than the maximum values specified in section 161 does not give the bankrupt any rights in relation to other assets in the...
- Section 165 - Relative or dependant entitled to exercise bankrupt's right to retain assets
If the bankrupt has died, a relative or dependant of the bankrupt, who has been approved for this purpose by the bankruptcy trustee or the Court, may exercise the right to retain assets under section...
- Section 166 - Bankruptcy trustee may make allowance to bankrupt
The bankruptcy trustee may make an allowance out of the property of the bankrupt to the bankrupt, or to any relative or dependant of the bankrupt, for the support of the bankrupt and the bankrupt's...
- Section 167 - Bankruptcy trustee may allow bankrupt to retain money
(1) The bankruptcy trustee may allow the bankrupt to retain, for the immediate maintenance of the bankrupt and the bankrupt's relatives and dependants, money up to the prescribed limit that the...
- Section 168 - Bankruptcy trustee may summon bankrupt and others to be examined
(1) The bankruptcy trustee may, at any time before or after a bankrupt's discharge—
(a) serve on any of the persons listed in subsection (2) a summons to appear before the bankruptcy trustee or the...
- Section 169 - Conduct of examination of person summoned by bankruptcy trustee
(1) The bankruptcy trustee may examine on oath the persons summoned for examination in accordance with section 168.
(2) The bankruptcy trustee shall ensure that the examination is recorded in...
- Section 170 - Expenses of person summoned by bankruptcy trustee or the Court
A person who is summoned for examination by the bankruptcy trustee—
(a) is entitled to be paid the expenses incurred in attending the examination, not exceeding the amount prescribed by the...
- Section 171 - Entitlement of examinee to be represented
(1) A person who is examined or questioned at an examination by the bankruptcy trustee is entitled to be represented by an advocate.
(2) Such a person may be questioned by the bankrupt's advocate,...
- Section 172 - Creditor may inspect record of examination
A creditor, or the creditor's advocate, is entitled at any reasonable time to inspect the record of the examination of a person conducted in accordance with section 169.
- Section 173 - Report of examination not to be published without court's consent
(1) A person shall not, without the approval of the Court, publish a report of—
(a) any examination of a person summoned for examination by the bankruptcy trustee; or (b) any matter arising in the...
- Section 174 - Examination provisions also apply when bankruptcy trustee appointed interim trustee in respect of debtor's property
Sections 168 to 173 also apply when the bankruptcy trustee has been appointed as interim trustee in respect of all or part of a debtor's property under section 36 and, for that purpose, references in...
- Section 175 - No lien over bankrupt's documents and other records
(1) A person is not entitled as against the bankruptcy trustee to withhold possession of, or claim a lien over—
(a) a document that belongs to the bankrupt; or (b) the bankrupt's business...
- Section 176 - Offences relating to conduct of examinations by bankruptcy trustee
(1) A person who, without reasonable excuse—
(a) fails to comply with a summons attend the public examination of a bankrupt as required by section 168(1);
(b) fails without reasonable excuse to...
- Section 177 - Court to hold public examination if bankruptcy trustee or creditors require
(1) At any time before an absolute order for a bankrupt's discharge is made—
(a) the bankruptcy trustee; or
if a ordinary resolution has been passed at a creditor's meeting seeking the public...
- Section 178 - Bankruptcy trustee to serve notice of examination on bankrupt
(1) As soon as practicable after the Court has made an order under section 177, the bankruptcy trustee shall serve a copy of the order on the bankrupt.
(2) At least seven days before the date fixed...
- Section 179 - Bankruptcy trustee to lodge report with the Court before start of examination
Before the public examination of a bankrupt before the Court begins, the bankruptcy trustee shall lodge with the Court a report on— (a) the bankrupt's estate;
(b) the bankrupt's conduct; and
(c) all...
- Section 180 - Conduct of public examination before the Court
(1) At the time and date fixed by the Court for holding the public examination of a bankrupt, the bankrupt shall attend the examination, and may be examined as to the bankrupt's conduct, affairs and...
- Section 181 - Bankruptcy trustee to ensure record of examination is kept
(1) On the holding of a public examination of a bankrupt before the Court, the Court shall ensure that a written record is made of the examination.
(2) The Court shall also ensure that the record of...
- Section 182 - When examination ends
(1) The public examination of a bankrupt ends when the Court makes an order declaring that the examination is ended.
(2) The Court may make an order declaring that the examination has ended only if...
- Section 183 - Consequence of bankrupt's failing to attend examination
If the bankrupt does not appear for the examination at the appointed time and has no reasonable excuse—
(a) the Court may, either on the bankruptcy trustee's application or its own initiative, by...
- Section 184 - Bankrupt entitled to be paid expenses for attending examination
(1) A bankrupt is entitled to be paid such expenses for attending a public examination before the Court as are prescribed by the insolvency regulations for the purposes of this section.
(2) It the...
- Section 185 - Power to extend examination companies controlled by bankrupt and bankrupt's associates
(1) If authorised by the Court, the bankruptcy trustee or a person appointed by that trustee may exercise the powers specified in subsection (2) in relation to a company with which the bankrupt is...
- Section 186 - No privilege against self-incrimination, but statements not generally admissible in criminal proceedings against their maker
(1) A person (including the bankrupt) who is examined or questioned at a public examination of a bankrupt shall answer all questions put to the person in relation to the bankrupt's conduct, affairs...
- Section 187 - Offences relating to examinations of bankrupts
(1) A person who, without reasonable excuse—
(a) fails to attend an examination as required by section 180(1);
(b) fails to deliver a document as required under section 180(4)(a);
(c) fails to...
- Section 188 - Entitlement of examinee to be represented
(1) A person (including the bankrupt) who is examined or questioned at a public examination of a bankrupt is entitled to be represented by an advocate.
(2) Such a person may be questioned by the...
- Section 189 - Bankruptcy trustee may continue or disclaim bankrupt's contracts entered into before bankruptcy commenced
If a bankrupt is a party to a contract, the bankruptcy trustee may—
(a) continue the contract, subject to the terms of the contract and all relevant rules of law; or (b) disclaim the contract if it...
- Section 190 - Contract terminated by other contracting party
(1) This section applies if the other party to a contract to which the bankrupt is a party, in accordance with a term of the contract, terminates the contract in consequence of the...
- Section 191 - Transaction with bankrupt made in ignorance of bankruptcy
(1) This section applies to a payment of money or a delivery of property to a person who is adjudged bankrupt, whether the payment or delivery is made—
(a) on the order of the person; or
(b) from...
- Section 192 - Bankrupt's co-contractor may sue and be sued if there is a joint contractual liability
If the bankrupt is jointly liable under a contract with another person, that other person may sue and be sued on the contract without the bankrupt being joined as a party to the proceeding.
- Section 193 - Bankruptcy trustee may recover advocate's costs
(1) The bankruptcy trustee may recover money paid by a bankrupt to the bankrupt's advocate for costs in obtaining a bankruptcy order, except for those (if any) prescribed for the purpose of this...
- Section 194 - Application of Division 19
(1) This Division applies to the following irregular transactions by the bankrupt before the bankruptcy commenced—
(a) an insolvent transaction;
(b) an insolvent charge;
(c) an insolvent...
- Section 195 - Power to extend certain periods specified in this Division
For the purposes of this Division, a two year period or a six months period referred to in this Division can be extended—
(a) in the case of a bankruptcy order made on a creditor's application, by...
- Section 196 - Insolvent transactions may be cancelled by bankruptcy trustee
A transaction by a bankrupt can be cancelled on the bankruptcy trustee's initiative if it—
(a) is an insolvent transaction; and
(b) was made within two years immediately before the bankruptcy...
- Section 197 - Meaning of insolvent transaction for purposes of sections 196
(1) For the purposes of section 196, a transaction is an insolvent transaction by a bankrupt if it—
(a) is entered into or made at a time when the bankrupt is unable to pay the bankrupt's debts;...
- Section 198 - Insolvent transaction presumed
For the purposes of section 196, a transaction that was entered into within the six months before a bankrupt is adjudged bankrupt is presumed, until the contrary is proved, to have been made at a time...
- Section 199 - When series of transactions are to be regarded as single transaction
(1) This section applies if a series of transactions made for commercial purposes forms an integral part of a continuing business relationship (such as a running account) between a bankrupt and a...
- Section 200 - Insolvent charges can be cancelled on bankruptcy trustee's initiative
A charge over any property of a bankrupt can be cancelled on the bankruptcy trustee's initiative if— (a) the charge was created within the two years immediately before the bankruptcy commenced;...
- Section 201 - Charge for new consideration or replacement charge not affected
(1) A charge may not be cancelled under section 200 if it secures—
(a) money actually advanced or paid;
(b) the actual price or value vof property sold or transferred; or
(c) any other valuable...
- Section 202 - Presumption that bankrupt unable to pay due debts
A bankrupt who gave a charge within the six months immediately preceding the commencement of the bankruptcy is presumed, until the contrary is proved, to have been unable to pay the bankrupt's debts...
- Section 203 - Charge for unpaid purchase price given after sale of property
(1) If, in relation to property purchased by a bankrupt, the bankrupt has given to the seller a charge over the property within the two years immediately preceding the bankruptcy, section 200 does not...
- Section 204 - Appropriation of payments by bankrupt to secured creditor
(1) This section applies if the bankrupt has made a payment or payments to a secured creditor after the bankrupt has given a charge to which section 202 or 203 applies.
(2) The bankruptcy trustee...
- Section 205 - Charge agreed before specified period not to be cancelled
A charge or a security right given by the bankrupt under an agreement to give the charge or create a security right that was made or made effective against third parties before the two years...
- Section 206 - Cancellation of gifts made within two years before bankruptcy
A gift made by a bankrupt to another person can be cancelled on the bankruptcy trustee's initiative if the bankrupt made the gift within the two years immediately preceding the commencement of the...
- Section 207 - Cancellation of gifts made by bankrupt made within five and two years before bankruptcy
(1) A gift by a bankrupt to another person can be also cancelled on the bankruptcy trustee's initiative if
—
(a) the bankrupt made the gift during the period beginning five years and ending two...
- Section 208 - Procedure for cancelling irregular transactions
(1) The procedure set out in this section applies to the following irregular transactions— (a) an insolvent transaction;
(b) an insolvent charge;
(c) an insolvent gift;
(d) any other transaction of...
- Section 209 - Court may order retransfer of property or payment of an equivalent value
(1) On the cancellation of an irregular transaction under which property of the bankrupt, or an interest in property of the bankrupt, was transferred, the Court may make an order—
(a) for the...
- Section 210 - Limits on what can be recovered
The Court may not make an order under section 209 against a person if the person proves that when the person received the property or interest in the property—
(a) the person acted in good...
- Section 211 - Bankruptcy trustee may recover difference in value if transaction is found to be under value
(1) Under section 212, the bankruptcy trustee may recover from a party to a transaction with the bankrupt an amount calculated in accordance with the following formula: A = B - C
where—
A is the...
- Section 212 - Court may order recipient of bankrupt's contribution to property of another to pay value to bankruptcy trustee
(1) The bankruptcy trustee may make an application to the Court for an order directing the recipient of a contribution by the bankrupt to the recipient's property to pay the value of the contribution...
- Section 213 - Court's powers in relation to bankrupt's contribution to recipient's property
(1) The Court may—
(a) ascertain the value of the bankrupt's contribution for the purposes of section 212; and (b) order the recipient to pay an amount equal to that value to the bankruptcy...