Section 262 of Insolvency Act CAP 53: Power of the Court to grant or refuse discharge
(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt;
(b) discharge the bankrupt on conditions;
(c) discharge the bankrupt but suspend the order for a specified period; or
(d) discharge the bankrupt, with or without conditions, at a specified future date, or may refuse to make an order of discharge, in which case the Court may specify the earliest date when the bankrupt may reapply for discharge.
(2) The conditions referred to in subsection (1)(b) may include a condition that the bankrupt consents to a judgment or order for the payment of any sum of money.
(3) If the Court discharges the bankrupt on the condition that the bankrupt consents to any judgment, and the bankrupt does consent, the Court may vary the judgment to such extent as it considers appropriate.
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- Section 263 - Court may restrict bankrupt from engaging in business after discharge
(1) On making an order of discharge or at any earlier time, the Court may prohibit the bankrupt from doing after discharge all or any of the following without the Court's approval—
(a) entering into,...
- Section 264 - Court may quash order discharging bankrupt
(1) The bankruptcy trustee or a creditor of the bankrupt may make an application to the Court for an order under subsection (2).
(2) On the hearing of an application made under subsection (1), the...
- Section 265 - Effect of quashing order discharging bankrupt from bankruptcy
(1) The quashing of a discharge does not affect the rights or remedies that a person other than the bankrupt would have had if the discharge had not been quashed.
(2) It property acquired by the...
- Section 266 - Bankrupt may apply for absolute discharge on ground that conditions of discharge are too onerous
(1) A bankrupt may apply to the Court for an absolute discharge even though the bankrupt is not able to comply with any or all of the conditions of the bankrupt's discharge.
(2) The Court may...
- Section 267 - Debts from which bankrupt is released on discharge
(1) On being discharged, a bankrupt is released from all debts provable in the bankruptcy except those listed in subsection (2).
(2) The debts from which the bankrupt is not released are the...
- Section 268 - Discharge to be conclusive evidence of bankruptcy and the validity of bankruptcy proceedings
A discharge of a bankrupt from bankruptcy is conclusive evidence of the bankruptcy and of the validity of the proceedings in course of the bankruptcy.
- Section 269 - Discharge not to release partners of bankrupt and others
The discharge of a bankrupt does not release a person who, at the commencement of the bankruptcy, was
—
(a) a business partner of the bankrupt;
(b) a co-trustee with the bankrupt;
(c) jointly...
- Section 270 - Discharged bankrupt to assist bankruptcy trustee
(1) A person who is discharged from bankruptcy shall assist the bankruptcy trustee, as required by the Court or the bankruptcy trustee, in the realisation and distribution of the property of the...
- Section 271 - Official Receiver to record in public register decision of the Court refusing to discharge bankrupt, etc.
lf the Court refuses to discharge a bankrupt or makes an order discharging the bankrupt but suspends the discharge, the Official Receiver shall record that information in the relevant public register...
- Section 272 - Court may annul bankruptcy order in certain circumstance
(1) The Official Receiver or any other person claiming to have a legitimate interest in the matter may make an application to the Court for an order under subsection (2).
(2) On the hearing of an...
- Section 273 - When Official Receiver may annul bankruptcy order
(1) The Official Receiver may annul a bankruptcy order on any of the grounds specified in subsection
(2), but only if the order was made on a debtor's application.
(2) The grounds for annulment by...
- Section 274 - Effect of annulment of bankruptcy order
(1) On annulment of a bankruptcy order, all property of the bankrupt vested in the Official Receiver on bankruptcy and not sold or otherwise disposed of by the Official Receiver revests in the...
- Section 275 - Interpretation: Division 24
In this Division—
"confirming resolution" means a special resolution passed by a bankrupt's creditors in accordance with section 276 confirming a preliminary resolution;
"preliminary resolution"...
- Section 276 - Creditors may accept composition by passing preliminary resolution
(1) The creditors of a bankrupt may accept a composition in satisfaction of the debts due to them from the bankrupt by passing a special resolution that contains the terms of the composition.
(2) If...
- Section 277 - Composition not effective unless approved by confirming resolution
(1) A composition is ineffective only when creditors have passed a special resolution confirming preliminary resolution.
(2) In the confirming resolution, the creditors may vary the terms of the...
- Section 278 - Compositions with members of partnership
(1) If members of a partnership have been adjudged bankrupt, the joint creditors and each class of separate creditors can make separate compositions.
(2) lf subsection (1) applies, the majorities of...
- Section 279 - Composition not binding unless approved by the Court
(1) A composition is not binding until it is approved by the Court.
(2) When approved by the Court, a composition binds all the creditors in respect of provable debts due to them by the...
- Section 280 - Procedure for court approval of composition
(1) The bankrupt or the Official Receiver may apply to the Court to approve the composition.
(2) The Court may hear the application only if satisfied that each creditor who has submitted a claim in...
- Section 281 - Deed of composition to be executed
(1) As soon as practicable after the Court has approved a composition—
(a) the bankrupt and the Official Receiver shall execute a deed of composition for putting the proposal into effect;...
- Section 282 - Effect of deed of composition
When the Court has confirmed the deed and quashed the bankruptcy order—
(a) the deed binds all the creditors in all respects as if they had each executed the deed; and
(b) subject to the provisions...
- Section 283 - Bankrupt remains liable for unpaid balances of certain debts
(1) A bankrupt who makes a composition with the bankrupt's creditors remains liable for the unpaid balance of a debt if—
(a) the bankrupt, by means of fraud—
(i) incurred or increased the debt;...
- Section 284 - Deadlines for steps to approve composition and execute deed
(1) The deadlines for steps to approve the composition and execute the deed are as follows—
(a) the confirming resolution has to have been passed within one month after the preliminary resolution is...
- Section 285 - Procedure following approval of composition by the Court
(1) The Registrar of the Court shall, after recording the deed of composition— (a) endorse on the deed that it has been recorded in the Court registry; and
(b) if requested to do so by the Official...
- Section 286 - How composition may be enforced
(1) On the application of any person aggrieved by a failure to pay an amount payable in accordance with a composition approved by the Court, the Court may order that the failure to pay be...
- Section 287 - Jurisdiction of the Court in relation to composition and deed of composition
(1) After the preliminary resolution has been passed, the Court continues to have exclusive jurisdiction in relation to the composition and the deed of composition, and their administration.
(2) On...
- Section 288 - Law and practice in bankruptcy to apply to deed of composition
The Court shall decide a question arising under a deed of composition according to the law and practice of bankruptcy, in so far as that law and practice is relevant.
- Section 289 - Offences in relation to debts
(1) A bankrupt commits an offence if the bankrupt did not, when contracting a debt, have the capacity to pay the debt when it fell due for payment, as well as to pay all the bankrupt's other...
- Section 290 - Offences in relation to property
(1) A bankrupt commits an offence if the bankrupt—
(a) conceals, or removes from Kenya, any part of the bankrupt's property—
(i) during the two months immediately preceding the date on which an...
- Section 291 - Offence in relation to written statement to creditor, etc.
(1) A bankrupt commits an offence if, during the three years immediately preceding the time when the bankruptcy order was made in respect of the bankrupt, the bankrupt makes or produces to a material...
- Section 292 - Offence in relation to documents, etc.
(1) A bankrupt commits an offence if, during the two years immediately preceding the making of the application to the Court for a bankruptcy order in respect of the bankrupt, or at any time after the...
- Section 293 - Offence in relation to fictitious losses or expenses
A bankrupt commits an offence if, during the twelve months immediately preceding the making of the application to the Court for a bankruptcy order in respect of the bankrupt, or at any time after the...
- Section 294 - Offences in relation to credit, etc
(1) A bankrupt commits an offence if, during the three years preceding the making of the application to the Court for a bankruptcy order in respect of the bankrupt, or at any time after the...
- Section 295 - Offences in relation to obtaining consent of creditors
A bankrupt commits an offence if the bankrupt—
(a) makes a false representation; or
(b) does any other fraudulent act, for the purpose of obtaining the consent of any one or more of the bankrupt's...
- Section 296 - Offence for bankrupt to leave Kenya without consent
(1) A bankrupt commits an offence if, during the twelve months immediately preceding the making of the application to the Court for a bankruptcy order in respect of the bankrupt, or at any time after...
- Section 297 - General penalties for bankruptcy offences
A bankrupt who is found guilty of an offence under a provision of sections 289 to 296 is liable on conviction to a fine not exceeding two million shillings or to imprisonment for a term not exceeding...
- Section 298 - Failure to keep and preserve proper record of transactions
(1) A bankrupt commits an offence if, at any time during the three years immediately preceding the date on which the bankrupt was adjudged bankrupt—
(a) the bankrupt had failed to record of the...
- Section 299 - Failure to keep proper records with intent to conceal
(1) A bankrupt commits an offence if, with intent to conceal the true state of the bankrupt's affairs, the bankrupt has failed to keep and preserve a proper record of the bankrupt' s...
- Section 300 - When bankrupt presumed not to have kept or preserved proper records
(1) For the purposes of sections 298 and 299, a bankrupt is, in the absence of evidence to the contrary, presumed not to have kept a proper record of the bankrupt's transactions if, being engaged in a...
- Section 301 - Offence by bankrupt in relation to management of companies
(1) A bankrupt who—
(a) acts or purports to act as a director of a company or as a partner of a firm or limited liability partnership; or
(b) fails without reasonable excuse to comply with section...
- Section 302 - Other bankruptcy offences
(1) A bankrupt commits an offence if the bankrupt—
(a) in the course of the administration of the bankrupt's affairs, makes to the bankruptcy trustee or the Official Receiver (if not the bankruptcy...
- Section 303 - Interpretation: Division 1
(1) In this Division—
"debtor" means a debtor who is a natural person;
"interim order" means an order made under section 306;
"proposal" means a proposal made by a debtor to the debtor's creditors...
- Section 304 - When application for interim order can be made
(1) An application to the Court for an interim order may be made if the debtor intends to make a proposal to the debtor's creditors under this Division for a composition in satisfaction of the...
- Section 305 - Effect of application for interim order
(1) While an application under section 304 for an interim order is pending, the following provisions apply:
(a) a landlord or other person to whom rent is payable by the debtor may exercise a right...
- Section 306 - Power of the Court to make interim order
(1) On the hearing of an application made under section 304, the Court may make an interim order if satisfied—
(a) that the debtor intends to make a proposal under this Division;
(b) that on the day...
- Section 307 - Provisional supervisor to report on debtor's proposal
(1) As soon as practicable after the making of an interim order, the provisional supervisor shall, before the order ceases to have effect, submit a report to the Court stating—
(a) whether, in that...
- Section 308 - Debtor's proposal and provisional supervisor's report
(1) This section applies if—
(a) a debtor intends to make a proposal under this Division;
(b) no interim order has been made in relation to the proposal and no application for such an order is...
- Section 309 - When provisional supervisor is to convene creditors' meeting to consider debtor's proposal
(1) If it has been reported to the Court under section 307 or 308 that a meeting of the debtor's creditors should be convened, the provisional supervisor shall, unless the Court otherwise directs,...
- Section 310 - Conduct of creditors' meeting: consideration of debtor's proposal
(1) The main purpose of a creditors' meeting convened under section 309 is to decide whether to approve the debtor's proposal (with or without modifications).
(2) At the beginning of the meeting,...
- Section 311 - Approval of debtor's proposal
(1) This section applies to the decisions taken at the meeting of creditors held in accordance with section 310 to consider a debtor's proposal (with or without modifications).
(2) The debtor's...
- Section 312 - Effect of approval of debtor's proposal by meeting of creditors or by the Court
(1) A debtor's proposal (with or without modifications) takes effect as a voluntary arrangement by the debtor on the day after the date on which it is approved by the Court by order made under section...