Insolvency Act.pdf - Intax Info

confirmation of the distribution account under which the money is distributed he applies to the
Master and the Master is satisfied, by a certificate of the trustee or other evidence deemed by
him sufficient, that the mortgagee is entitled to the amount or part thereof.
(2) If the last known address of the mortgagee is ascertainable by the trustee, he shall
transmit to the mortgagee at that address by registered post not less than three months before
lodging the said account with the Master notice of the sequestration of the mortgagor's estate.
(3) Any amount which is not paid to the said mortgagee after the expiry of that period
shall be distributed amongst the creditors who have proved claims in the insolvent estate prior
to the confirmation of the said distribution account, as if the amount had, at the date of such
confirmation, been available for distribution among them.
(4) Any creditor claiming to be entitled to a share in the distribution, shall make written
application to the Master for payment of his share, and the Master may pay out to such creditor
or may hand the money to the trustee, if any, for distribution amongst the creditors entitled
thereto, or, if there is no trustee, may appoint a trustee for the purpose of making such
distribution.
(5) Any trustee charged with the duty of making such a distribution shall lodge a
supplementary account in respect thereof and sections 97 to 103 relating to the confirmation of
accounts and the distribution and payment of dividends shall apply in respect of such
supplementary account.
(6) After payment of the costs of the sequestration and in so far as the same shall be
preferent upon the free residue all preferent claims with interest thereon from the date of
sequestration to the date of payment, the free residue shall be applied-
(a)
(b)
in the payment of the concurrent claims in proportion to the amount of the same; and
if the concurrent claims have been paid in full, in the payment thereafter of interest on
the concurrent claims from the date of sequestration to the date of payment in
proportion to the amounts thereof.
(7) Interest on all claims shall be calculated at the rate of six per cent per annum unless
otherwise lawfully stipulated in writing, when it shall be calculated at the stipulated rate.
91. Equalizing dividends in case of late proof
Any creditor who has not received a dividend under a distribution of assets by reason of
his not having proved his claim before that dividend was paid, shall be entitled on any further
distribution after he has proved his claim, to receive the amount that he would have received
under the previous distribution if he had so proved so long as such creditor satisfies the Master
that his delay in proving was due to some reasonable cause:
Provided that any creditor who had knowledge of proceedings having been taken under
sections 25, 28, 29 or 30, and who delayed proving his claim until after the court had given
judgment in such proceedings, shall not be entitled to share in the distribution of the proceeds of
any assets or of any moneys recovered in such proceedings.
Contributions (s 92)
92. Contributions by creditors towards costs of sequestration when free residue
insufficient
(1) When the free residue of the estate is insufficient to pay all the costs in the
sequestration hereinbefore declared to be a charge against the same, all creditors who have
proved their claims against the estate shall be personally liable to make good any deficiency,
the concurrent creditors each in proportion to the amount of his claim and the secured creditors
each in proportion to the amount for which he would have ranked upon the surplus of the free
residue, if there had been any:
Provided that-
(i)
where all the creditors who have proved claims against the estate are secured creditors
who would not have ranked upon the surplus of the free residue, if there had been any,
such creditors shall be liable to make good the whole of the deficiency, each in
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