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Section 302 of Insolvency Act CAP 53: 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 trustee) a statement that the bankrupt knows or has reason to know was false or misleading in a material respect;
(b) after becoming aware that any person has lodged a false proof in the bankruptcy, fails to disclose that fact immediately to the bankruptcy trustee or to the Official Receiver (if not the bankruptcy trustee);
(c) has, during the two years immediately preceding the date on which the bankrupt was adjudged bankrupt and while the bankrupt was insolvent, given any undue preference to any of the bankrupt's creditors with intent to defraud any other of the bankrupt's creditors; or
(d) before the bankrupt obtains a final order or discharge from bankruptcy (either alone or jointly with one or more other persons)—
(i) obtains credit of one hundred thousand shillings or more; or
(ii) incurs a liability to any person of one hundred thousand shillings or more for the purpose of obtaining credit for another person.
(2) In proceedings for an offence under subsection (1)(d)(ii), it is a defence to prove that, before obtaining the relevant credit, the bankrupt informed the credit provider that the bankrupt was an undischarged bankrupt.
(3) In proceedings for an offence under subsection (1)(d)(ii), it is a defence to prove that, before incurring the relevant liability, the credit provider was informed that the person incurring the liability was an undischarged bankrupt.
(4) A person who is found guilty of an offence under subsection (1) is liable on conviction a fine not exceeding one million shillings or to imprisonment for a term not exceeding twelve months, or to both.

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Disclaimer: This document is not to be taken as legal advise.

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