Insolvency Act.pdf - Intax Info

thereunto required in writing, fails to deposit those surplus moneys in accordance with this
section; and the court may order that trustee to pay by way of penalty such sum, not exceeding
the amount which has been unduly detained, as to the court may seem fit.
(4) If a trustee fails to comply with any order of the court made under the provisions of
any of the preceding sections, the court may order that any sum which that trustee was
condemned to pay be recovered by attachment and sale of the goods of the trustee and may
further commit him for contempt.
104. Enforcing payment of contributions of creditors by writ of execution
At any time after the expiry of 60 days from the publication in the Gazette of the notice
under section 100, the trustee may take out a writ of execution against any creditor who, being
liable to contribute under the plan of contribution, has failed to satisfy the amount of his liability.
Authentication of Accounts (s 105)
105. Authentication of confirmed accounts by Master and transmission to magistrate
and local inspection of same
(1) After the confirmation of any account the Master shall authenticate every duplicate
transmitted to him by a magistrate, as hereinbefore provided, by affixing his signature thereto,
and shall endorse thereon the date upon which the account has been confirmed.
(2) He shall transmit to the magistrate from whom the same has been received the
duplicate of every account confirmed.
(3) Every such duplicate shall, upon receipt thereof by the magistrate, be filed in his
office and every person shall be at liberty to inspect and take copies thereof without charge at
any time during office hours.
PART VIII
Compositions and Rehabilitations (ss 106-115)
Compositions (ss 106-108)
106. Offer of composition or security for composition by insolvent
(1) At any meeting of creditors, other than the first meeting, the insolvent may make an
offer of composition or security for composition:
Provided that notice of the intention to make that offer and the nature thereof has been
published in the Gazette not less than 10 days before the meeting or adjourned meeting at
which the offer is considered.
(2) If the offer is accepted by creditors whose votes amount to not less than three-fourths
in value and three-fourths in number of the votes of all the creditors whose claims have been
proved against the estate, the insolvent shall, as soon as the payment under the composition
has been made or security given to the satisfaction of the trustee, be entitled to a certificate
under the hand of the Master of the acceptance of the offer:
Provided that-
(i) no offer may be so accepted which contains any condition whereby any creditor would
obtain as against another creditor who has not expressly agreed thereto in writing any
benefit to which he would not have been entitled upon the distribution of the estate in
(ii)
the ordinary way; and
any condition purporting to make the offer of composition or the fulfilment thereof or of
any part thereof subject to the rehabilitation or to the consent of the creditors to the
rehabilitation of the insolvent shall be of no effect.
107. Effect of acceptance of offer of composition
(1) An offer of composition which has been accepted as aforesaid shall be binding upon
the insolvent and upon all the concurrent creditors of the estate; but the right of any creditor
entitled to be paid in preference shall not be prejudiced thereby, except in so far as that creditor
has expressly consented in writing to surrender his preference.
(2) If it is a condition of the composition that any property of the insolvent shall be
restored to the insolvent, the acceptance of the composition shall divest the trustee of such
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