Insolvency Act.pdf - Intax Info

epresent him when the sheriff is making his inventory.
(3) The sheriff or bailiff shall forthwith report to the Master in writing the fact of the
attachment, and shall transmit with the report a copy of his inventory and a list of any property
which to his knowledge is in the lawful possession of a pledgee.
(4) Every bailiff shall transmit to the Master without delay an inventory of all property
attached by him and known to belong to an insolvent.
(5) The sheriff or bailiff shall be entitled to fees and remuneration taxed by the Master
according to Tariff A in the Second Schedule.
PART III
Effects of Sequestration (ss 20-38)
Effect upon the Insolvent and his Property (ss 20-24)
20. Effect of sequestration on insolvent's property
(1) The effect of a sequestration order shall be-
(a) to divest the insolvent of his estate and to vest it in the Master until a trustee has been
appointed, and, upon the appointment of a trustee, to vest the estate in him;
(b) to stay, until the appointment of a trustee, any civil proceedings instituted by or against
the insolvent except such proceedings as may, in terms of this Act, be instituted by the
insolvent for his own benefit or be instituted against the insolvent:
Provided that if any claim which formed the subject of legal proceedings against
the insolvent which were so stayed, has been proved and admitted against the
insolvent's estate in terms of this Act, the claimant may also prove against the estate a
claim for his taxed costs, incurred in connection with those proceedings before the
sequestration of the insolvent's estate;
(c) as soon as any sheriff or messenger, whose duty it is to execute any judgment given
against an insolvent, becomes aware of the sequestration of the insolvent's estate, to
stay that execution, unless the court otherwise directs;
(d) to enable the insolvent, if in prison for debt, to apply to the court for his release, after
notice to the creditor at whose suit he is so imprisoned.
(2) For the purposes of subsection (1) the estate of an insolvent shall comprise-
(a) all property of the insolvent at the date of the sequestration, including property or the
proceeds thereof which are in the hands of a sheriff or a messenger under writ of
(b)
attachment; and
all property which the insolvent may acquire or which may accrue to him during the
sequestration, except as otherwise provided in section 22: Provided that any moneys
or policy of life insurance or asset or, as the case may be, any moneys or proceeds in
realization of any policy of life insurance or of any asset in respect of which protection
is afforded by virtue of any provision of Part VIII of the Insurance Industry Act to the
extent of that protection, shall be excluded from the estate.
(3) The additional effect of the sequestration of the separate estate of one of two
spouses who are not living apart under a notarial deed of separation or a judicial order of
separation shall be to vest in the Master, until a trustee has been appointed, and, upon the
appointment of a trustee, to vest in him all the property of the spouse whose estate has not
been sequestrated (hereinafter referred to as "the solvent spouse") as if it were property of the
sequestrated estate, and to empower the Master or trustee to deal with such property
accordingly, but subject to the following provisions of this section.
(4) The trustee shall release any property of the solvent spouse which is proved-
(a)
(b)
(c)
to have been the separate property of that spouse immediately before the marriage to
the insolvent;
to have been acquired by that spouse under a marriage settlement;
to have been acquired by that spouse during the marriage with the insolvent by a title
valid as against creditors of the insolvent;
Copyright Government of Botswana