Insolvency Act.pdf - Intax Info

68. Legal proceedings against the estate
Every person who, having instituted legal proceedings against the insolvent which were
suspended by the sequestration, intends to continue the same, and every person who intends to
institute legal proceedings for the purpose of enforcing any claim against the estate which arose
before the sequestration shall, within three weeks after the first meeting of creditors, give the
trustee not less than three weeks' notice in writing before continuing or commencing those
proceedings; in default thereof the proceedings shall be considered to be abandoned, unless
the court finds that there was a reasonable excuse for the default and allow the proceedings to
continue or be commenced on terms or otherwise, as it may think fit.
69. Power of trustee to take legal advice
(1) The trustee may take legal advice on any question of law affecting the administration
or distribution of the estate, and may employ a legal practitioner for the conduct or defence of
legal proceedings on behalf of or against the estate, and all costs incurred under this section
since the commencement of the sequestration, as well as costs awarded against the estate in
those legal proceedings, shall be included under the costs of administration.
(2) The costs incurred in obtaining a sequestration order shall be taxed according to the
tariffs used in the court, unless the court otherwise orders.
(3) All costs which are not the subject of taxation by the taxing officer of the court shall
be taxed by the Master.
70. Improper advising or conduct of legal proceedings
If it appears to the court that any legal practitioner has, with intent to benefit himself,
improperly advised the institution, defence or conducting of legal proceedings or has incurred
any unnecessary expense therein, the court may order the whole or part of the expense thereby
incurred to be borne by that legal practitioner personally.
71. Recovery of debts due to estate
Immediately after his appointment the trustee shall proceed to recover (if need be by
legal proceedings) the debts due to the estate, and for that purpose and in the same notice in
which he advertises his appointment as trustee, he shall call upon all persons indebted to the
estate to pay their debts at such reasonable time and place as he may in that notice appoint.
72. Subsistence allowance for insolvent and family
(1) At any time before the second meeting of creditors the trustee may allow the
insolvent such moderate sum out of the estate as may appear to the trustee to be necessary for
the support of the insolvent, his wife and minor children.
(2) The amount of any such allowance to the insolvent and the grounds for making the
same shall forthwith be reported in writing to the Master by the trustee and shall be subject to
review by the court upon the application of the Master or any person interested.
73. Sale of movable property on authorization of Master
(1) At any time before the second meeting of creditors the trustee shall, if satisfied that
any movable property of the estate ought forthwith to be sold, recommend to the Master in
writing that any such property be sold and shall state his reasons for such recommendation.
(2) The Master, if satisfied that any such property ought to be sold, shall authorize its
sale, and the same shall thereupon be sold on such conditions and in such manner as the
Master may direct:
Provided that, if the Master has notice that any such property or a portion thereof is
subject to a right of preference, he shall not authorize the sale unless the person entitled to such
right of preference has given his consent thereto in writing or the trustee has guaranteed that
person against loss by such sale.
74. Continuation of insolvent's business
At any time before the second meeting of creditors the trustee may carry on or
discontinue any part of the business of the insolvent in so far as may be necessary for the
beneficial winding up thereof:
Copyright Government of Botswana