Section 208 of Insolvency Act CAP 53: 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 a class prescribed by the insolvency regulations for the purposes of this section.
(2) A bankruptcy trustee who wishes to cancel an irregular transaction to which this section applies shall—
(a) lodge a notice with the Court that complies with subsection (3); and (b) serve the notice on—
(i) the other party to the transaction; and
(ii) any other party from whom the bankruptcy trustee intends to recover.
(3) A notice complies with this subsection if it—
(a) is in writing;
(b) states the bankruptcy trustee's postal and street addresses and e-mail address (if any);
(c) specifies the irregular transaction to be cancelled;
(d) describes the property, or states the amount, that the bankruptcy trustee wishes to recover;
(e) includes a statement that the person named in the notice may object to the cancellation of the transaction by sending to the bankruptcy trustee a notice of objection to be received by the bankruptcy trustee at that trustee's postal, street or email address within twenty-one days after service on that person of that trustee's notice;
(f) states that a person making an objection is required to specify the reasons for the objection;
(g) states that the transaction will be cancelled as against the person named in the notice if that person does not object; and
(h) states that if the person named in the notice does object, the bankruptcy trustee may apply to the Court for the transaction to be cancelled.
(4) An irregular transaction is automatically cancelled in relation to a person on whom the bankruptcy trustee has served a bankruptcy trustee's notice, if the person has not objected by sending to the bankruptcy trustee a notice of objection that is received by the bankruptcy trustee at that trustee's postal, street or email address within twenty-one days after the bankruptcy trustee's notice has been served on that person.
(5) The bankruptcy trustee may disregard a notice of objection that fails to specify the reasons for the objection.
(6) The Court may, on the application of the bankruptcy trustee, cancel an irregular transaction that is not automatically cancelled by subsection (4).
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