Insolvency Act.pdf - Intax Info

(1) Proceedings to set aside any disposition under section 25, 28, 29 or 30, or for the
recovery of damages under section 30, shall be taken by the trustee.
(2) If the trustee refuses or neglects to take such proceedings they may be taken by any
creditor in the name of the trustee upon his indemnifying the trustee against all costs thereof.
(3) In any such proceedings the insolvent may be compelled to give evidence on a
subpoena issued on the application of any party to the proceedings or he may be called by the
court to give evidence.
(4) When giving such evidence he may not refuse to answer any question on the ground
that the answer may tend to incriminate him or on the ground that he is about to be tried on a
criminal charge and may be prejudiced at such a trial by his answer.
(5) When any disposition of property is set aside under any of the said sections, the
court by which it is set aside shall declare the trustee entitled to recover any property alienated
under the said disposition or in default of such property the value thereof at the date of the
disposition.
33. Indemnification by trustee of creditors
(1) No person who, in return for any disposition by the insolvent which is liable to be set
aside under this Act has parted with any property or security that he held or who has lost any
rights or recourse against third parties, shall, if he acted in good faith, be obliged to restore any
money or property or other benefit received under such disposition, unless the trustee has
indemnified him for parting with such security or for losing such rights, property, security, or
recourse.
(2) Nothing in section 25, 28, 29 or 30 shall affect the rights of any person acquiring
property in good faith and for value from any person other than the insolvent.
34. Sales of a business
(1) Every sale or alienation by a trader of any business or of the goodwill, book-debts, or
assets of that business other than sales of stock in the ordinary course of his trade, shall upon
the sequestration of his estate within six months after the sale or alienation be void against the
trustee, unless the seller had previously given 14 days' notice of such intended sale or
alienation by advertisement twice in the Gazette and twice in a newspaper circulating in the
district in which that business is carried on.
(2) On the first publication of that notice in the Gazette every liquidated claim against the
business shall become payable at the option of the payee, subject in the case of such amounts,
as would otherwise not have become payable until some later date to a rebate of six per cent
per annum as from such later date.
35. Contracts to buy immovable property
(1) If the insolvent, before the sequestration of his estate has contracted to buy or
receive in exchange any immovable property, transfer of which has not been effected in his
favour, the trustee may elect to adopt or to abandon the contract.
(2) If the trustee does not make his election within six weeks after being required in
writing to do so, the person entitled under the contract may apply by motion to the court for the
cancellation of the contract and delivery of the possession of the immovable property and the
court may make such order as it thinks fit:
Provided that nothing in this section shall affect any concurrent claim against the estate
for damages for non-fulfilment of the contract.
36. Sales for cash
(1) When any person has, before the sequestration of the insolvent's estate, sold and
delivered for cash to the insolvent any movable property and has not received full payment for
the same, the seller may only reclaim that property if within 30 days after the delivery thereof he
gave notice in writing to the insolvent or the legal representative of the estate that he reclaims
that property:
Provided that if the trustee disputes the seller's right thereto, the seller shall take
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