Insolvency Act.pdf - Intax Info

shall lie for the inspection of creditors for such time and at such place or places as is prescribed
by this Act in cases where a debtor is about to surrender his estate under the provisions thereof.
122. Effect of publication of notice of assignment
(1) The publication of the notice of assignment in the Gazette shall have the following
effect-
(a)
(b)
it shall have the same effect as the publication of notice of surrender in regard to
property and the proceeds of property of the debtor in the hands of the sheriff or bailiff;
and
except as hereinafter provided, it shall have the effect of staying all proceedings for the
sequestration of the debtor's estate, whether on his own petition or the petition of a
creditor:
Provided that any creditor may, at any time after the publication of the notice of
assignment and before registration of the deed as hereinafter provided, apply to the court, after
notice to the Master, for the sequestration of the debtor's estate on the ground that the
schedules of the debtor do not fully disclose the debts or the property of the debtor, or, if the
court so allows, on any other ground.
(2) The court may supersede the assignment and place the estate under sequestration
provisionally or may set aside the assignment altogether, or may make such order as it may
deem fit.
123. When deed may be signed by creditors entitled to sign
(1) The deed or the duplicate thereof may be signed by creditors entitled to sign, at any
office in which that deed or duplicate is advertised to be open for inspection of creditors and at
any time during office hours and before the expiry of the period for which it is advertised.
(2) Every such duplicate which has been open for inspection at the office of a magistrate
shall, on the expiry of the period aforesaid, be transmitted by the magistrate to the Master,
together with his certificate that it has been open for inspection as advertised.
(3) No stamp duty shall be payable in respect of such certificate.
124. When deed not signed
(1) If, within the period during which the deed has been open for inspection, that deed, or
that deed and the duplicate thereof together, have not been signed by creditors representing at
least three-fourths in value of the claims and three-fourths in number of the creditors entitled to
sign and disclosed in the schedules, the creditors shall be deemed to have declined the
assignment, and the notice of assignment shall be deemed to be a notice of surrender.
(2) If, however, a sequestration order is not lodged with the Master within 14 days after
the expiry of the period aforesaid, the Master shall notify the assignee under the deed and every
officer who has been notified of the assignment that the assignment has been declined; and
thereupon the debtor and his estate shall be released from all the effects of the assignment and
of the notice of the assignment.
125. Duty of Master if creditors do or do not take action to set aside assignment or place
estate under sequestration
(1) If no creditor has given to the Master notice in writing that he intends to make
application to the court to set aside the assignment or place the estate under sequestration, or if
a creditor, having given such notice, has failed within seven days thereafter to obtain and lodge
with the Master an order placing the estate under provisional sequestration or setting aside the
assignment, then, upon the expiry of the period during which the deed was advertised to be
open for inspection or of the said period of seven days (whichever be the later), the Master shall
satisfy himself that the deed and schedules and the duplicate thereof (if there be such) have
been advertised and have been open for inspection as aforesaid, and that the deed or the deed
and the duplicate thereof together have been signed by creditors representing not less than
three-fourths in value of the claims and three-fourths in number of all creditors entitled to sign
and disclosed in the schedules.
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