Section 191 of Insolvency Act CAP 53: 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 the person to an assignee or to the order of an assignee.
(2) The payment or delivery is a good discharge to the person who made the payment or delivery if—
(a) the payment or delivery was made before the bankruptcy of the person referred to in subsection (1) was advertised; and
(b) the person making the payment or delivery satisfies the Court that—
(i) that person had no knowledge of the bankruptcy or that an application for a bankruptcy order had been made; and
(ii) the payment or delivery was made in the ordinary course of business or was otherwise made in good faith.
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- Section 194 - Application of Division 19
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(c) an insolvent...
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For the purposes of this Division, a two year period or a six months period referred to in this Division can be extended—
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- 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—
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- Section 198 - Insolvent transaction presumed
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- Section 201 - Charge for new consideration or replacement charge not affected
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(c) any other valuable...
- Section 202 - Presumption that bankrupt unable to pay due debts
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- 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...
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- Section 206 - Cancellation of gifts made within two years before bankruptcy
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—
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- 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
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(a) for the...
- Section 210 - Limits on what can be recovered
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- Section 212 - Court may order recipient of bankrupt's contribution to property of another to pay value to bankruptcy trustee
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- Section 213 - Court's powers in relation to bankrupt's contribution to recipient's property
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- Section 214 - How bankruptcy trustee is to use repayment of bankrupt's contribution to property
(1) The bankruptcy trustee shall apply—
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- Section 216 - What debts are provable debts
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- Section 218 - Bankruptcy trustee required to examine creditor's claim
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- Section 220 - Bankruptcy trustee's power to obtain evidence of debt
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(a) a person who has submitted a creditor's claim;
(b) a person who has made...
- Section 221 - Notice by bankrupt or creditor to bankruptcy trustee to allow or reject creditor's claim
(1) The bankrupt or any creditor may give the bankruptcy trustee notice to allow or reject a creditor's claim.
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- Section 222 - Court may cancel creditor's claim
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- Section 225 - Court may make order as to costs
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- Section 226 - Secured creditor’s options in relation to property that is subject to a charge
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- Section 234 - Application to the Court to determine amount of uncertain creditor's claim
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(2) The...
- Section 236 - Bankruptcy trustee's duty when mutual dealings have occurred between the bankrupt and other persons
If there have been mutual credits, mutual debts or other mutual dealings between a bankrupt and another person, the bankruptcy trustee shall—
(a) take an account of what is due from the one party to...
- Section 237 - Creditor may claim pre-bankruptcy interest
A creditor may claim interest up to the date on which the bankruptcy commences—
(a) in the case of contract debt interest, at the rate specified in the contract that provides for interest on the...
- Section 238 - Post-bankruptcy interest payable at prescribed rate if surplus remains
(1) The bankruptcy trustee shall pay interest on all allowed creditors' claims at the prescribed rate if surplus assets remain after the bankruptcy trustee has paid the claims.
(2) The bankruptcy...
- Section 239 - Additional post-bankruptcy interest on contract or judgment debt if surplus remains
(1) If there is a surplus after the bankruptcy trustee has paid post-bankruptcy interest as provided by section 238, the bankruptcy trustee shall pay additional interest on allowed proofs for a...
- Section 240 - Meaning of prescribed rate for purposes of sections 238 and 239
For the purposes of sections 238 and 239, the prescribed rate of interest is the rate for the time being prescribed by the insolvency regulations for the purposes of those sections.
- Section 241 - Creditor required to deduct trade discounts
A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.