Section 194 of Insolvency Act CAP 53: 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 gift;
(d) a transaction at undervalue;
(e) a contribution by the bankrupt to the property of another person.
(2) The general effect of this Division is—
(a) to enable irregular transactions of the kinds listed in subsection (1)(a) to (c) to be cancelled on the initiative of the bankruptcy trustee; and
(b) to enable that trustee, in appropriate cases, to recover property or money from a party to an irregular transaction with the bankrupt.
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- 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
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- 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...
- 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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(b) the proceeds of sale of that property, by taking...
- Section 215 - Interpretation: Division 20
(1) For the purposes of this Division, a creditor's claim is a document that a creditor submits to the bankruptcy trustee for the purpose of proving the debt.
(2) A debt is proved when it is allowed...
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(1) For the purpose of this Division, a provable debt is a debt or liability that the bankrupt owes— (a) at the commencement of the bankruptcy; or
(b) after that commencement but before discharge,...
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(1) A creditor (including a creditor who has a preferential claim) who wishes to claim in the bankruptcy shall submit a creditor's claim to the bankruptcy trustee before the deadline for submitting...
- Section 218 - Bankruptcy trustee required to examine creditor's claim
(1) The bankruptcy trustee shall examine each creditor's claim and the grounds of the debt, unless of the opinion that no dividend will be paid to creditors.
(2) As soon as practicable after...
- Section 219 - Bankruptcy trustee to give creditor notice of grounds of rejection
As soon as practicable after rejecting a creditor's claim, or a part of it, the bankruptcy trustee shall give the creditor a notice rejecting the claim or part and specifying the grounds for the...
- Section 220 - Bankruptcy trustee's power to obtain evidence of debt
(1) The bankruptcy trustee may summon for examination, and examine (on oath or otherwise), any of the following persons—
(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.
(2) It the bankruptcy trustee has not made a decision allowing or rejecting the...
- Section 222 - Court may cancel creditor's claim
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- Section 223 - Power of court to quash or vary bankruptcy trustee's decision rejecting creditor's claim
(1)A creditor whose claim has been rejected by the bankruptcy trustee may apply to the Court to make an order under subsection (3).
(2)An application can be made only within twenty-one days after the...
- Section 224 - Parties to proceedings relating to creditor's claim
(1) This section applies to an application made under section 221, 222 or 223.
(2) If the applicant is not the bankruptcy trustee, the applicant shall serve a copy of the application on the...
- 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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(2) The options are as follows—
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(2) On the hearing of an application made under...
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(2) However, subsection (1) does not...
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- Section 230 - Offence for secured creditor to make false claim
(1) A person who—
(a) makes, or authorises the making of, a claim under section 229 (1) knowing it to be false or misleading; or
(b) omits, or authorises the omission of, any matter from a claim...
- Section 231 - Bankruptcy trustee's powers when secured creditor values property subject to charge and proves for balance
(1) If a creditor who holds a charge or security right over property of a bankrupt values the property and seeks to prove for the balance due, the bankruptcy trustee shall—
(a) accept the valuation...
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(2) The creditor may, with the...
- Section 233 - Bankruptcy trustee may estimate amount of uncertain creditor's claim
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- Section 234 - Application to the Court to determine amount of uncertain creditor's claim
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(b) has estimated the amount of the claim but the creditor is...
- Section 235 - Creditor's claim payable six months or more after commencement of bankruptcy
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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.
- Section 242 - Secured creditor can prove as unsecured creditor if security is void or partly void
If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly...
- Section 243 - Judgment creditor may prove for costs
A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that...
- Section 244 - Company may prove for unpaid calls
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(a) the amount of unpaid calls on the...