BANKRUPTCY ORDINANCE, 1931

BANKRUPTCY ORDINANCE, 1931

No. 10 of 1931.

An Ordinance to amend the law relating to bankruptcy.

[1st january, 1932.]

PART I.

SHORT TITLE AND INTERPRETATION.

1. This Ordinance may be cited as the Bankruptcy
Ordinance, 1931.

2. In this Ordinance-

(a) ' Affidavit ' includes statutory declaration, affirmation
and attestation on. honour;

(b) ' Available act of bankruptcy' means any act of
bankruptcy available for a bankruptcy petition at the date of
the presentation of the petition on which the receiving order is
made;

(c) ' Bailiff ' includes any officer charged with the execu-
tion of a writ or other process;

(d) 'Court' means the Supreme Court sitting in its
bankruptcy jurisdiction

(e) ' Debt provable in bankruptcy ' or ' provable debt
includes any debt or liability by this Ordinance made provable
in bankruptcy;

(f) ' Gazetted ' means published in the Hong Kong
Government Gazette;

(g) Goods ' includes all chattels personal;

(h) ' Oath ' includes affirmation, declaration and attesta-
tion on honour;

(i) ' Ordinary resolution ' means a resolution decided by
a majority in value of the creditors present, personally or by
proxy, at a meeting of creditors and voting on the resolution

The rules formerly contained in the First and Second Schedules to this
Ordinance have been transferred to the corresponding volume of
the Regulations of Hong Kong.





(j) ' Prescribed ' means prescribed by general rules within
the meaning of this Ordinance;

(k) ' Property ' includes money, goods, things in action,
land and every description of property, whether real or personal
and whether situate in this Colony or elsewhere; also obligations,
easements and every description of estate, interest and profit,
present or, future, vested or contingent, arising out of or incident
to property as above defined;

(l) 'Resolution' means ordinary resolution

(m) 'Secured creditor ' means a person holding a mort-
gage, charge or lien on the property of the debtor or any part
thereof, as a security for a debt due to him from the debtor

(n) ' Special resolution ' means a resolution decided by a
majority in number and three-fourths in value of the creditors
present, personally or by proxy, at a meeting of creditors and
voting on the resolution

(o) ' Registrar ' includes the Registrar of the Supreme
Court and any Deputy Registrar of the Supreme Court;

(p) ' Trustee ' means the trustee in bankruptcy of a
debtor's estate.

PART II

PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE.

Acts of bankruptey.

3.-(1) A debtor commits an act of bankruptcy in each of
the following cases-

(a) if in this Colony or elsewhere he makes a conveyance
or assignment of his property to a trustee or trustees for the
benefit of his creditors generally;

(b) if in this Colony or elsewhere he makes a fraudulent
conveyance, gift, delivery or transfer of his property or of any
part thereof

(c) if in this Colony or elsewhere he makes any conveyance
or transfer of his property or any part thereof, or creates any





charge thereon, which would be void as a fraudulent preference
if he were adjudged bankrupt;

(d) if with intent to defeat or delay his creditors he does
any of the following things, namely, departs out of the Colony,
or being out of the Colony remains out of the Colony, or departs
from his dwelling-house or usual place of business, or otherwise
absents himself, or begins to keep house, or removes his property
or any part thereof beyond the jurisdictiow of the court;

(e) if execution against him has been levied by seizure of
his goods under process in an action, or proceeding in the court,
and the goods have been either sold or held by the bailiff for
twenty-one days:

Provided that, where an interpleader summons, has been
taken out in regard to the goods seized, the time elapsing
between the date at which such summons is taken out and the
date at which the proceedings on such summons are finally
disposed of, settled or abandoned shall not be taken into account
in calculating such period of twenty-one days;

(f) if he files in the court a declaration of his inability to
pay his debts or presents a bankruptcy petition against himself;

(g) if a creditor has obtained a final judgment or final
order against him for any amount, and execution thereon not
having been stayed, has served on him in this Colony or, by
leave of the court, elsewhere, a bankruptcy notice under this
Ordinance, and he does not, within seven days after service of
the notice, in case the service is effected in the Colony, and in
case the service is effected elsewhere, then within the time
limited in that behalf by the order giving leave to effect the
service, either comply with the requirements of the notice or
satisfy the court that he has a counter-claim, set off or cross
demand which equals or exceeds the amount of the judgment
debt or sum ordered to be paid, and which lie could not set up
in the action in which the judgment was obtained or the pro-
ceedings in which the order was obtained:

For the purposes of this paragraph and of section 4, any
person who is for the time being entitled to enforce a final
judgment or final order shall be deemed to be a creditor who
has obtained a final judgment or final order;





(h) if the debtor gives notice to, any of his creditors that
he has suspended or that he is about to suspend payment of his
debts.

(2) In this Oiffinance, ' a debtor ', unless the context
otherwise implies, includes any person, whether a British subject
or not, who at the time When any act of bankruptcy was done
or sufferedby him-

(a) was personally present in the Colony; or

(b) ordinarily resided or had a place of residence in the
Colony; or

(c) was carrying on business in the Colony, personally or
by means of an agent or manager; or

(d) was a member of a firm or partnership which carried
on business in the Colony.

4. A bankruptcy notice.under this Ordinance shall be issued
to a judgment creditor, or creditor who has obtained a final
order, by the Registrar on the filing of a request for that
purpose, and shall be in the prescribed form, and shall require
the debtor to pay the judgment debt or sum ordered to be paid
in accordance with the terms of the judgment or order, or to
secure or compound for it to the satisfaction of the creditor or
the court, and shall state the consequences of non-compliance
with the notice, and shall be.served in the prescribed manner:

Provided that a bankruptcy notice-

(a) may specify an agent to act on behalf of the creditor
in respect of any payment or other thing required by the notice
to be made to, or done to the satisfaction of, the creditor ;

(b) shall not be invalidated by reason only that the sum
specified in the notice as the amount due exceeds the amount
actually due, unless the, debtor within the time allowed for
payment gives notice to the creditor that he disputes the validity
of the notice on the ground of such misstatement; but if the
debtor does not give such notice, he shall be deemed to have
complied with the bankruptcy notice if within the time allowed
he takes such steps as would have constituted a compliance With
the notice had the actual amount due been correctly specified
therein.





Receiving order and Official Receiver.

5. Subject to the conditions hereinafter specified, if a debtor
commits, an act of bankruptcy the court may, on a bankruptcy
petition being presented dither by a creditor or by the debtor,
make an order, in this Ordinance called a receiving order, for
the protection of the estate.

6.-(1) Subject to the provisions of section 7, a creditor
shall not be entitled to present a bankruptcy petition against a
debtor unless-

(a) the debt owing by the debtor to the petitioning creditor,
or if two or more creditors join in the petition the aggregate
amount of debts owing to the several petitioning creditors,
amounts to five hundred dollars, and:

(b) the debt is a liquidated sum, payable either immediately
or at some certain future time, and
(c) the actof bankruptcy on which the petition is grounded
has occurred within three months before the presentation of the
petition, and

(d) the debtr is domiciled in the Colony, or within a year
before the date of the presentation of the petition has ordinarily
resided, or had a dwelling-house or place of business, in the
Colony, or has carried on business in the Colony, personally
or by means of an agent or manager, or is or within the said
period has been a member of a firm or partnership of persons
which has carried on business in the Colony by means of a
partner or partners or an agent or manager.

(2) If the petitioning creditor is a sectired creditor, he must
in his petition either state that he is willing to give up his
security for the benefit of the creditors in the event of the debtor
being adjudged bankrupt, or give an estimate of the value of his
security. In the latter case he may be admitted as a petitioning
creditor to the extentof the balance of the debt due to him after
deducting the value so estimated in the same manner as if he
were an unsecured creditor.

7.-(1) The following provisions shall have effect in the
case of a firm carrying on business in the Colony.---

(a) a creditor of the firm shall be entitled to present a





bankruptcy petition against the firm, and a receiving order may
be made against the firm in respect of an act of bankruptcy
committed in reference to the business of the firm by any partner
of the firm or by any person having the control or management
of the business of the firm. An act of bankruptcy shall be
deemed to be committed in reference to the business of the firm
in all cases in which the act relates to the property or creditors
of the firm and would be an act of bankruptcy by such partner
or person as aforesaid if it related to his property or creditors;

(b) it shall be sufficient that a receiving order against the
firm be made in the firm name, without mentioning the names
of the partners, and such receiving order sliall affect the joint
and separate property of all the partners;

(c) the right of a creditor to present a bankruptcy petition
against the firm, and the jurisdiction of the court to make a
receiving order or an adjudication of bankruptcy against the
firm, shall not be affected by the fact, if it is so, that all or any
of the partners of the firm are not British subjects or are not
resident or domiciled in the Colony.

(2) The provisions of this section shall, so far as the nature
of the case will permit, apply to any person carrying on business
in the Colony in a name or style other than his own name.

8.-(1) Immediately on the filing of any petition the Official
Receiver may, in cases where he has reason to believe that any
offence under this Ordinance or any fraud has been or is about
to be perpetrated, by notice sent by messenger or by ordinary
post, summon the debtor to attend before him to give such
information as he requires, and may, either by himself or his
agent authorized by him in writing, enter on, any premises
occupied by the debtor between the hours of 8 a.m. and 6 p.m.
for the purpose of inspecting his property, stock in trade and
books of account.

(2) It shall be the duty of the debtor to furnish the Official
Receiver with all sucla information as it is in the debtor's power
to give or to obtain.

(3) If the debtor fails without reasonable cause to attend on
the Official Receiver as aforesaid or to furnish him with such
information as aforesaid, or if the debtor obstructs the search
of the premises or the production of any book or document





required in connexion therewith, or authorizes or permits any
such obstruction, the debtor shall upon summary conviction be
liable to imprisonment for any term not exceeding six months,
and every person who takes any part in any such obstruction,
whether authorized or permitted by the debtor or not, shall be
liable to the like penalty.

9.-(1) A creditor's petition shall be verified by affidavit
of the creditor or of some person on his behalf having know-
ledge of the facts, and shall be served in the same manner as
a writ of summons unless some other manner of service be
prescribed.

(2) At the hearing the court shall require proof of the debt
of the petitioning creditor, of the service of the petition and
of the act of bankruptcy, or if more than one act of bankruptcy
is alleged in the petition, of some one of the alleged acts of
bankruptcy, and if satisfied with the proof, may make a receiving
order in pursuance of the petition.

(3) If the court is not satisfied With the proof of the
petitioning creditor's debt or of the act of bankruptcy or of
the service of the petition, or is satisfied by the debtor that he
is able to pay his debts, or is not satisfied that the assets for
division among the unsecured creditors, after payment of all
costs, charges and expenses, and the debts which are preferential
under this Ordinance, will be sufficient to pay a dividend of
fifteen per cent., or considers that for other sufficient cause no
order ought to be made, the court may dismiss the petition.

(4) When the act of bankruptcy relied on is non-compli-
ance with a bankruptcy notice to pay, secure or compound for
a judgment debt or sum ordered to be paid, the court may, if it
thinks fit, stay or dismiss the petition on tile ground that an
appeal is pending from the judgment or order.

(5) Where the debtor appears on the petition and denies
that he is indebted to the petitioner, or that he is indebted to
such an amount as would justify the petitioner in presenting a
petition against him, the court, on such security (if any) being
given as the court may require for payment to the petitioner of
any debt which may be established against him in due course
of law, and of the costs of establishing the debt, may instead
of dismissing the petition, stay all proceedings on thle petition





for such time as may be required for trial of the question relating
to the debt.

(6) Where proceedings are stayed the court may, if by
reason of the delay caused by the stay of proceedings or for
any other cause thinks just, make a receiving order on the
petition of some other creditor, and shall thereupon dismiss, on
such terms as it thinks just, the petition in which proceedings
have been stayed as aforesaid.

(7) A creditor's petition shall hot after presentment be
withdrawn without the leave of the court.

10.-(1). A debtor's petition shall allege that the debtor is
unable to pay his debts, and the presentation thereof shall be
deemed an act of bankruptcy without the previous filing by the
debtor of any declaratiow of inability to pay his debts, and the
court shall thereupon make a receiving order: Provided that
it shall be lawful for the court in its discretion to refuse the
order if it is not satisfied that, the assets for division among the
unsecured creditors after payment of all costs, charges and
expenses and the debts whidh are preferedtial under this Ordin-
ance, will be sufficient to pay a dividend of fifteen per cent., or
if the court considers for other sufficient cause that no order
ought to be made.

Sufficient cause in this sub-section shall be deemed to
include, inter alia the non-attendance of the debtor, or in the
case of a firm, of at least one of the partners thereof, on the
hearing of the petition, the absence of any material book of
account, or any fraud or misconduct not amounting to fraud by
the debtor in relation to his affairs, or in the case of a firm
or person carrying on business under a Chinese firm name, the
non-production of the partnership book or of the receipt and
money-payment chops used in connexion with the business.

(2). A debtor's petition shall not after presentment be
withdrawn wit hout the leave of the court.

11. On the hearing of any creditor's or debtor's petition it
shall be lawful for the Official Receiver to appear and to call,
examine and cross-examine any witness and, if he so thinks fit,
to support or oppose the making of a receiving order.




12.-(1) On the making of a receiving order the Official
Receiver shall be thereby constituted receiver of the property of
the debtor, and thereafter, except as directed by this Ordinance,
no creditor to whom the debtor is indebted in respect of any
debt provable in bankruptcy shall have any remedy against the
property or person of the debtor in respect of the debt, or shall
commence any action or other legal proceedings, unless with the
leave of the court and on such terms as the court may impose.

(2) This section shall not affect the power of any secured
creditor to realize or otherwise deal with his security.

13. The court may, if it is shown to:be necessary for the
protection of the estate, at any time after the presentation of a
bankruptcy petition and before a receiving order is made, appoint
the Official Receiver to be interim receiver of the property of the
debtor or of any part thereof and direct him to take immediate
possession thereof or of any part thereof.

14-(1) The court may at any time after the presentation
of a bankruptcy petition either stay any action, execution or
other legal process against-the property or person of the debtor
or allow it to continue on such terms as it may think just.

(2) Where the court makesan order staying any Action or
proceeding, or staying proceedings generally, the order may be
served by sending a copy, thereof, under the seal of the court,
by post to, the address for service of the plaintiff or other party
prosecuting such proceeding or to the address of his solicitor.

(3) Without prejudice to the provisions of sub-section (1),
if the court orders the release of any debtor who is under
execution for a civil debt, it may impose such conditions, as it
thinks fit, and in particular it may require as a condition of
such release that the debtor find security to attend in the
subsequent bankruptcy proceedings and to abide by all orders
of the court relating to the said proceedings.

15.-(1) The court may, on the application of the Official
Receiver or of any creditor or creditors, And if satisfied that the
nature of the debtor's estate or business, or the interests of the
creditors generally require the appointment of a special manager
of the estate or business other than the Official Receiver, appoint
a manager thereof accordingly to act until a trustee is appointed,





and with such powers (including any of the powers of a receiver)
as may be entrusted to him by the Official Receiver.

(2) The special manager shall give security and account in
such manner as the court may direct.

(3) The special manager shall receive such remuneration
as may be prescribed.

16. Notice of every receiving order, stating the name,
address and description of the debtor, the date of the order,
and the date oi the petition, shall be gazetted by the Official
Receiver.

Proceedings consequent on order.

17.-(1) As soon as may be after the making of a receiving
order against a debtor a general meeting of his creditors (in this
Ordinance referred to as the first meeting of creditors) shall be
held for the purpose of considering whether a proposal for a
composition or scheme of arrangement shall be accepted, or
whether it is expedient that the debtor shall be adjudged
bankrupt, and generally as to the mode of dealing with the
debtor's property.

(2) The Chief justice may, with the approval of the Legis-
lative Council make rules with respect to the summoning of and
proceedings at the first and other meetings of creditors.

18.-(1) Where a receiving order is made against a
debtor, he shall make out and submit to the Official Receiver
a statement of and in relation to his affairs in the prescribed
form, verified by affidavit, and showing the particulars of the
debtor's assets, debts and liabilities, wherever situate, the names,
residences and occupations of his creditors, whether in the
Colony or elsewhere, the securities held by them respectively,
the dates when the securities were respectively given, and such
further or other information as may be prescribed or as the
Official Receiver may require. Such statement shall also give
details of all property held by him in a t'ong name or under
any alias, or by his wife or any concubine of his, or by any
person in trust for him or them, with full particulars as to the
manner and date of its being acquired.

As amended by Law Rev. Ord. 1939, Supp. Sched.





(2) The statement shall be so submitted within the follow-
ing times, namely-

(a) if the order is made on the petition of the debtor, within
three days from the date of the order;

(b) if the order is made on the petition of a creditor, within
seven days from the date of the order,

but the court may, in either case for special reasons, extend the
time.

(3) If the debtor fails without reasonable excuse to comply
with the requirements of this section, he may be punished for a
contempt of court and the court may, on the application of the
Official Receiver or of any creditor, adjudge hini bankrupt.

(4) Any person stating himself to be a creditor of the
bankrupt may, on payment of the prescribed fee, personally or
by agent inspect the statement at all reasonable times and take
any copy thereof or extract therefrom, but any person untruth-
fully so stating himself to be a creditor shall be guilty of a
contempt of court and shall be punishable accordingly on the
application of the trustee or Official Receiver.

Public examination of debtor.

19.-(1) Where the court makes a receiving order, it shall,
save as in this Ordinance provided, hold a public sitting, on a
day to be appointed by the court, for the examination of the
debtor, and the debtor shall attend thereat and shall be-examined
as to his conduct, dealings and property.

(2) The examination shall be held as soon as conveniently
may be after the expiration of the time for the submission of
the debtor's statement of affairs.

(3) The court may adjourn the examination from time to
time.
(4) Any creditor who has tendered a proof or his
representative authorized in writing, may question the debtor
concerning his affairs and the causes of his failure,

(5) The Official Receiver shall take part in the examination
of the debtor, and for the purpose thereof, if specially authorized
by the court, may employ a solicitor with or without counsel,





No solicitor or counsel shall he allowed to take part in the
examination on behalf of the debtor.

(6) If a trustee is appointed before the conclusion of the
examination, he may take part therein.

(7) The court may put such questions to the debtor as it
may think expedient.

(8) The debtor shall be examined upon oath and it shall be
his duty to answer all such questions as the court may put or
allow to be put to him. Such notes of the examination as the
court thinks proper shall be taken down either in shorthand or
longhand and they or a transcript thereof shall be read over
either to or by the debtorand signed by him and may thereafter,
save as in this Ordinance provided, be used in evidence against
him; they shall also be open to the inspection of any creditor at
all reasonable times upon payment of the prescribed fee.

(9) When the court is of opinion that the affairs of the
debtor have been sufficiently investigated, it shall by order
cleclare that his examination is concluded, but such order shall
not be made until after the day appointed for the first meeting
of creditors.

(10) Where the debtor is a lunatic or suffers from any such
mental or physical affliction or disability as in the opinion of
the court makes him unfit to attend his public examination, or
is absent from the Colony, the court may make an order dis-
pensing with such examination or directing that the debtor be
examined on such terms, in such manner and at such place as
to the court seems expedient.

Compositions and schemes of arrangement.

20.-(1) Where a debtor intends to make a proposal for
composition in satisfaction of his debts or a proposal for a
scheme of arrangement of his affairs, he shall, withinfour days.
of submitting his statement of affair's or within such time there-
after as the Official Receiver may fix, lodge with the Official
Receiver a proposal in writing, signed by him, embodying the
terms of the composition or scheme which he is desirous of
submitting for the consideration of his creditors and setting out:
particulars of any sureties or securities proposed.






(2) In such case the Official Recei ver shall hold a meeting
of creditors before the public examination of the debtor is con-
cluded, and send to each creditor before the meeting a copy
of the debtor's proposal with a report therebri ; and if at that
meeting a majority in number and three-fourths in value of all
the creditors who have proved resolve to accept the proposal, it
shall be deemed to be duly accepted by the creditors, and when
approved by the court shall be binding on all the creditors.

(3) The debtor may at the meeting amend the terms of
his proposal, if the amendment is in the opinion of the Official
Receiver calculated to benefit the general body of creditors.

(4) Any creditor who has proved his debt may assent to or
dissent from the proposal by a letter addressed to the Official
Receiver so as to be received by him not later than the day
preceding the meeting, and any such assent or dissent shall
have effect as if the creditor had been present and had voted at
the meeting.

(5) The debtor or the Official Receiver may, after the
proposal is accepted by the creditors, apply to the court to
approve it, and notice of the time appointed for hearing the
application shall be given to each creditor who has proved.

(6) The application shall not be heard until after the con-
clusion of the public examination of the debtor. Any creditor
who has proved may be, heard by the court in opposition to
the application, notwithstanding that he may at a meeting of,
creditors have voted for the acceptance of the proposal.

(7) For the purpose of approving a composition or scheme
by joint debtors the court may, if it thinks fit and on the report
of the Official Receiver that it is expedient so to do, dispense
with the public examination of any of the joint debtors if they
are or any one of them is prevented from attending the examina-
tion by illness or absence from the Colony but one at least of
such joint debtors shall be publicly examined.

(8) The court shall before approving the proposal hear a
report, of the Official Receiver as to the terms thereof and as
to the conduct of the debtor, and any objections which: may be
made by pr on behalf of any creditor.

(9) If the court is of opinion that the terms of the proposal
are not reasonable or are not calculated to benefit the general





body of Creditors, or in any case in which the court is required, where the
debtor is adjudged bankrupt, to.refuse his discharge, the court shall refuse
to approve the proposal.

(n) If any facts are proved on proof of which the court would be
required either to refuse, suspend or attach conditions to the debtor's
discharge were headjudged bankrupt, the court shall refuse to approve the
proposal unless it provides reasonable security for the payment of not less
than twenty-five per cent on all the unsecured debts provable against the
debtor's estate.

(11) In any other case the court may either approve or refuse to approve
the proposal.

(12) If the court approves the proposal, the approval may be testified by
the seal of the court being attached to the instrument containing the terms of
the proposed composition or scheme, or by the terms being embodied in an
order of the court.

(13) A composition or scheme accepted and approved in pursuance of
this section shall be binding on all the creditors so far as relates to any debts
due to them from the debtor and provable in bankruptcy.

(14) A certificate of the Official Receiver that a composition or scheme
has been duly accepted and approved shall, in the absence of fraud, be
conclusive as to its validity.

(15) The provisions of a composition or scheme under this section may
be enforced by the court on application by any person interested, and any
disobedience of an order of the court made on the application shall be
deemed a contempt of court.

(16) If default is made in payment of any instalment due in pursuance of
the composition or scheme, or if it appears to the court on satisfactory
evidence that the composition or scheme cannot, in consequence of legal
difficulties or for any sufficient cause, proceed without injustice or undue
delay to the creditors or to the debtor, or that the approval of the court was
obtained by fraud, the court may, if it thinks fit, on application by the Official
Receiver or the trustee or by any creditor, adjudge the debtor bankrupt and
annul the composition or scheme, but without prejudice to the validity of
any sale, disposition or. payment duly made or thing duly done under or in
pursuance of the composition or scheme. Where a debtor Is adjudged
bankrupt





under this sub-section, any debt provable in other respects,
which has been contracted before the adjudication, shall be
provable in the bankruptcy.

(17) If under or in pursuance of a composition or,scheme
a trustee is appointed to administer the debtor's property or
manage his business or to distribute the composition, section 29
and Part V shall apply as if the trustee were a trustee in a
bankruptcy and as if the terms ' bankruptcy bankrupt ' and
' order of adjudication ' included respectively a composition or
scheme of arrangement, a compounding or arranging debtor and
an order approving the composition or scheme.

(18) Part III shall, so far as the nature of the case and
the terms of the composition or scheme admit, apply thereto,
the same interpretation being given to the words ' trustee
bankruptcy bankrupt ' and ' order of adjudication ', as
in sub-section (17).

(19) No composition or scheme shall be approved by the
court which does not provide for the. payment in priority to
other debts of all debts directed.to be so paid in the distribution
of the property of a bankrupt.

(20) The acceptance by a creditor of a composition or
scheme shall not release any person who under this Ordinance
would not be released by an order of discharge if the debtor had
been adjudged bankrupt.

21. Notwithstanding the acceptance and approval of a com-
position or scheme, the composition or scheme shall not be
binding on any creditor so far as regards a debt or liability from
which under the provisions of this Ordinance the debtor would
not be released by an order of discharge in bankruptcy, unless
the creditor assents to the composition or scheme.

Adjudication of bankruptcy.

22.-(1) Where a receiving order is made against a debtor,
then if the creditors at the first meeting or any adjournment
thereof by ordinary resolution resolve that the debtor be adjudged
bankrupt, or pass no resolution, or if the creditors do not meet,
or if a composition or scheme is not approved in pursuance of





this Ordinance within fourteen davs after the conclusion of the
examination of the debtor or such further time as the court
may allow, the court shall adjudge the debtor bankrupt; and
thereupon the property of the bankrupt shall become divisible
among his creditors and shall vest in a trustee.

(2) Notice of every order adjudging a debtor bankrupt,
stating the name, address and description of the bankrupt, the
date of the adjudication and the name of the trustee, shall be.
gazetted and shall be advertised in at least two local newspapers,
one of which shall be Chinese, or as may be prescribed, and
the date of the order shall for the purposes of this Ordinance
be the date of the adjudication.

(3) It shall be sufficient. that an adjudication order against
a firm be made in the firm name without mentioning the names
of the partners, and such adjudication order shall affect the joint
and separate property of all the partners.

23.-(1) Where a debtor is adjudged bankrupt or the
creditors have resolved that he be adjudged bankrupt, the
creditors may by ordinary resolution appoint the Official Receiver
or some other fit person, whether a creditor or not, to fill the
office of trustee of the property of the bankrupt or they may
resolve to leave his appointment to the committee of inspection
hereinafter mentioned. A person shall be deemed not fit to act
as trustee of the property of a bankrupt where he has been
previously removed from the office of trustee of a bankrupt's
property for misconduct or neglect of duty.

(2) The person apppinted shall, unless he is the Official
Receiver, give such security as the court may direct or as may
be prescribed, and the court, if satisfied with the security, Shall
certify under the hand of the Registrar that his appointment has
been duly made, unless the appointment is disapproved by the
court on the ground that it has not been made in good faith by
a majority in value of the creditors voting, or that the person
appointed is not fit to act as trustee, or that his connexion with
or relation to the bankrupt or his estate or any particular creditor
makes it difficult for him to act with impartiality in the interests
of the creditors generally.

(3) The appointment of a trustee shall take effect as from
the date of the certificate.





(4) When a debtor is adjudged bankrupt after the first
meeting of creditors has been held and a trustee has hot been
appointed prior to the adjudication, the Official Receiver shall
forthwith summon a meeting of creditors for the purpose of
appointing a trustee. If no trustee is, then appointed -by the
creditors the court shall on the application of the Official
Receiver appoint the Official Receiver or some other fit person
to be trustee.

24.-(1) The creditors qualified to vote may at their first or
any subsequent meeting, by resolution, appoint A committee of
inspection for the purpose of superintending the administration
of the bankrupt's property by the trustee.

(2) The committee of inspection shall, consist of not more,
than five nor less than three persons, possessing one or other of
the following qualifications-

(a) that of being a creditor or the holder of a general
proxy or general power of attorney from a creditor: Provided
that no creditor and no holder of a general proxy or general
power of attorney from a creditor shall be, qualified to act as a
member of the committee of inspection until the creditor has
proved his debt and the proof has been admitted; or

(b) that of being a person to whom a creditor intends to
give a general proxy or general power of attorney: Provided
that no such person shall be qualified to act as a member of
the committee of inspection until he holds such a proxy or
power of attorney, and until the creditor has proved his debt and
the proof has been admitted.

(3) The committee of inspection shall meet at such times
as they shall from time to time appoint, and failing such ap-
pointment, at least once a month, and the trustee or any member
of the committee may also call a meeting of the committee as
and when he thinks necessary.

(4) The committee may act by a majority of their members
present at a meeting, but shall not act unless a majority of the
committee are present at the meeting.

(5) Any member of the committee may resign his office by
notice in writing signed by him and delivered to the trustee.

(6) If a member of, the committee becomes bankrupt, or
compounds or arranges with his creditors, or is absent from five





consecutive meetings of the committee, his office shall thereupon
become vacant.

(7) Any member of the committee may be removed by an
ordinary resolution at any meeting of creditors of which seven
days' notice has been given stating the object of the meeting.

(8) On a vacancy occurring in the office of a member of
the committee the trustee shall forthwith summon a meeting of
creditors for the purpose of filling the vacancy, and the meeting
may by resolution appoint another creditor or other, person
eligible as above to fill the vacancy.

(9) The continuing members of. the committee, provided
there be not less than two such continuing members, may act.
notwithstanding any vacancy in their body, and where the
number of members of the committee of inspection is for the
time being less than five the creditors may increase that number
so that it do not exceed five.

(10) If there be no committee of inspection any act or thing
or any direction or permission by this Ordinance authorized or
required to be done or given by the committee may be done or
given by the court on the application of the trustee.

25.-(1) Where a debtor is adjudged bankrupt the creditors
may, if they think fit, at any time, after the adjudication, by a
majority in number and three-fourths in value of all the creditors
who have proved, resolve to accept a proposal for a composition
in satisfaction of the debts due to them under the bankruptcy
or for a scheme of arrangement of the bankrupt's affairs, and
thereupon the same proceedings shall be taken and the same
consequences shall ensue as in the case of a composition or
scheme accepted before adjudication.

(2) If the court approves the composition or scheme it may
make an order annulling the bankruptcy and vesting the prop-
erty of the bankrupt in him or in such other person as the court
may appoint, on such terms and subject to such conditions, if
any as the court may declare.

(3) If default is made in payment of any instalment due in
pursuance of the composition or scheme, or if it appears to the
court that the composition or scheme cannot proceed without





injustice or undue delay, or that the approval of the court was obtained by
fraud , the court may, if it thinks fit, on application by any person interested,
adjudge the debtor bankrupt and annul the composition or scheme, but
without prejudice to the validity of any sale, disposition or payment duly
made orthing duly done under or in pursuance of the composition or
scheme. Where a debtor is adjudged bankrupt under this sub-section, all
debts, provable in other respects, which have been contracted before the.
date of such adjudication shall be provable in the bankruptcy.

Control over person and property of debtor.

26.-(1) Every debtor against whom a receiving order is made shall,
unless prevented by sickness or other sufficient cause, attend the first
meeting of his creditors, and shall submit to such examination and give
such information as the meeting may require.

(2) He shall give such inventory of his property, such list of his creditors
and debtors, and of the debts due to and from them respectively, submit to
such examination in respect, of his property or his creditors, attend such
other meetings of his creditors, wait at such times. on the Official Receiver,
special manager or trustee, execute such powers of attorney, conveyances,
deeds and instruments, and generally do all such acts and things in relation
to his property and the distribution of the proceeds amongst his creditors, as
may be reasonably required by the Official Receiver, special manager or
trustee or may be provided by this Ordinance, or be prescribed or be directed
by the court by any special order or orders made in reference to any
particular case, or made on the occasion of any special application by the
Official Receiver, special manager, trustee or any creditor or person
interested.

(3) He shall, if adjudged bankrupt, aid to the utmost of his power in
the realization of his property and the distribution of the proceeds among
his creditors.

(4) If a debtor wilfully fails to perform the duties imposed on him by
this section or to deliver up possession of any part of his property, which is
divisible amongst his creditors under





this Ordinance and which is for the time being in his possession
or under his control, to the Official Receiver or to the trustee
or to any person authorized by the court to take possesion of it,
he shall, in addition to any other punishment to which he may
be subject, be guilty of a contempt of court and may be punished
accordingly.

27- (I) The court may, by warrant addressed to any person
or persons named therein, cause a debtor to be arrested, and any
books, papers, money and goods in his possession or under his
cgntrol or relating to his affairs to be seized, and him and them
to be safely kept as prescribed until such time as the court may
order under the following circumstances-.

(a) if, after a bankruptcy notice has been issued under this
Ordinance or after presentation of a bankruptcy petition by or
against him, it appears to the court that there is probable cause
for believing that he has absconded, or is about to abscond, with,
a view of avoiding payment of the debt in respect of which
the bankruptcy, notice was issued, or of avoiding service of a
bankruptcy petition, or of avoiding appearance to any such
petition, or of avoiding examination in respect of his affairs, or
of otherwise avoiding, delaying or embarrassing proceedings in
bankruptcy against him;

(b) if, after presentation of a bankruptcy petition by or
against him, it appears to the court that there is probable cause
for believing that he is about to dispose of or remove his goods
with a view to preventing or delaying possession being taken
of them by the Official Receiver or trustee, or that there
is probable ground for believing that he has concealed or is about
to conceal or destroy any of his goods or any books, documents
or writings which might be of use to his creditors in the course
of his bankruptcy;

(c) if, after service of a bankruptcy petition on him or after
a receiving order is made against him, he removes any goods
in his possession above the value of twenty-five dollars Without
the leave of the Official Receiver or trustee;

(d) if without good cause shown he fails to attend any
examination ordered by the court;





(e) if there is probable cause for believing that he has com-
mitted an otfence punishable under this Ordinance:

Provided that no arrest upon a bankruptcy notice shall be
valid and Protected unless the debtorbefore or at the time of
his arrest is served with such bankruptcy notice.

(2) No payment or composition made or security given
after arresf made under this section shall be exempt from the
provisions of this Ordinance relating to fraudulent preferences.

28. Where a receiving order is made against a debtor the
court, on the application of the Official Receiver ortrustee, may
from time to time order that for such time, not exceeding three,
months, as the court thinks fit telegrams and post letters and
other, postal packets, addressed to the debtor at any place or,
places mentioned in the order for re-direction; shall be re-
directed, sent or delivered by the agent of the telegraph
organization or the Postmaster General, or the officers acting
under them, to the Official Receiver or the trustee or otherwise
as the court directs, and the same shall be done accordingly.

29.(1) The court may, on the application of the Official
Receiver or trustee, at any time after a receiving order has
been made against a debtor summon before it the debtor or his
wife, or any person known or suspected to have in his possession
any of the estate or effects belonging to the debtor or supposed
to be indebted to the debtor, or any person whom the court may
deem.capable of giving information respecting the debtor, his
dealings or property, and the court may require any such person
Ao produce any documents in his custody or power relating to the
debtor, his dealings or property.

(2) If Any person so summoned, after having been tendered
a reasonable sum, refuses to come before the courtat the time
Appointed, or refuses to produce any such document, having no
lawful impediment made known to the court at the time of its
sitting and allowed by it, the court may, by warrant, Cause him
to be apprehended, and brought up for examination.

(3) The court may, by itself or by a commissioner ap-
pointed for the purpose, examine on oath, either by word of
mouth for by written interrogatories, any person so brought
before it concerning the debtor, his dealings or property.






(4) If any person on examination before, the court admits
that he is indebted tothe debtor, the court may, on the applica-
tion of the Official Receiver or trustee, order him to pay to the
Official Receiver or trustee, at such time and in such manner
as to the. court seems expedient, the amount admitted or any
part thereof, either in full discharge of the whole amount in
question or not, as the court thinks fit, with or without costs of
the examination.

(5) If any person on examination before the court admits
that he has in his possession any property belonging to the
debtor, the court may, on the application of the Official Receiver
or trustee, order him to deliver to the Official Receiver or trustee
such property or any part thereof, at such time and in such
manner and on such terms as to the court may seem just.

(6) The court may, if it thinks fit, order that any person
who if in the Colony would be liable to be brought before it
under this section shall be examined in any place out of the
Colony by a commissioner ap pointed for the purpose.

(7) In the case of the death of the debtor or his wife or
of any other witness whose evidence has been duly taken under
this Ordinance, the deposition of the person so deceased pur-
porting to be sealed with the seal of the court, or a copy thereof
purporting to be so sealed, shall in all legal proceedings be
admitted as evidence of the matters therein deposed to, saving
all just exceptions.

30.-(1) bankrupt may at any time after being adjudged
bankrupt apply to the court for an order of discharge, and the
court shall appoint a day for hearing the application, but the
application shall not be heard until the public examination of
the bankrupt is concluded. The application shall, except when
the court in accordance with rules under this Ordinance otherwise
directs, be heard in open court.

(2) Where the bankrupt does not of his own accord,
within such time as the court may deem reasonable, apply for,
his discharge, the court may, of its own motion or on the ap-
plication of the Official Receiver or the trustee or any creditor
who has proved, make, an order calling upon the bankrupt to
come up for his discharge on a day to be fixed by the court,
and on due service of the order, if the bankrupt does not appear





on the day fixed thereby, the court may make such order as it
thinks fit, subject to the provisions of this section and the
debtor shall, in addition to any other punishment to which fie
may be subject, be guilty of a contempt of court and may be
punished accordingly.

(3) On the hearing of the application, or on the day on
which the bankrupt has been ordered to come up for his
discharge or any subsequent day, the court shall take into
consideration a report of the Official Receiver as to the
bankrupt's conduct and affairs (including a report as to the
ba nkrupt's conduct during the proceedings under his bank-
ruptcy) and may either grant or refuse an absolute order ot
discharge, or suspend the operation of the order for a specified
time, or grant an order of discharge subject to any conditions
with respect to any earnings or income which may afterwards
become due to the bankrupt or with respect to his after acquired
property:

Provided that where the bankrupt, has committed any
misdemeanor under this Ordinance or any enactment repealed
by this Ordinance, or any other misdemeanor connected with
his bankruptcy, or any felony connected with his bankruptcy,
ot where in any case any of the facts hereinafter mentioned
are proved the court shall-

(a) refuse the discharge; or

(b) suspend the discharge for such period as the court
thinks proper; or

(c) suspend the discharge until a dividend of not less than
fifty per cent has been paid to the creditors; or

(d) require the bankrupt as a condition of his discharge to
consent to judgMent being entered against him by the Official
Receiver or trustee for any balance or part of any balance of
the debts provable under the bankruptcy which is not satisfied
at the date of the discharge, such balance or part of any balance
of the debts to be paid out of the future earnings or after
acquired property of the bankrupt in such manner and subject
to such conditions as the court may direct; but execution shall
not be issued on the judgment without leave of the court, which
leave may be given on proof that the bankrupt has since his





discharge acquired property or income available towards pay
ment of his debts:

Provided that, if at any time after the expiration of two
years from the date of any order made under this section the
bankrupt satisfies the court that there is no reasonable prob-
ability of his being in a position to comply with the terms of
such order, the court may modify the terms of the order or of
any substituted order in such manner and upon such conditions
as it may think fit.

(4) The facts hereinbefore referred to are-

(a) that the bankrupt's assets are not of a value equal to
fifty per cent of his unsecured liabilities, unless he satisfies
the court that the fact that the assets are, not of a value of fifty
per cent of his unsecured liabilities has arisen from circum-
stances for which he cannot justly be held responsible;

(b) that the bankrupt has omitted to keep such books of
account as are usual and proper in the business carried on by
him and as sufficiently disclose.his business transactions and
financial position within the three years immediately preceding
his bankruptcy, or in the case of a firm carrying on business
under a Chinese firm name, that a partnership book has not
been kept, or that such books have not been available for the
trustee during the bankruptcy proceedings, unless they have
been accidentally lost or destroyed, the onus of proof of such
accidental loss or destruction being on the bankrupt;

(c) that the bankrupt has continued to trade after knowing
himself to be insolvent;

(d) that the bankrupt has contracted any debt provable in
the bankruptcy without having at the time of contracting it
any reasonable or probable ground of expectation (proof
whereof shall lie on him) of being able to pay it;

(e) that the bankrupt has failed to account satisfactorily
for any loss of assets or for any deficiency of assets to meet
his liabilities;

(f) that the bankrupt has brought on or contributed to
his bankruptcy by rash and hazardous speculations, or by
unjustifiable extravagance in living, or by gambling, or by
culpable neglect of his business affairs;





(g) that the bankrupt has put any of his creditors to
unnecessary expense by a frivolous or vexatious defence to any
action properly brought against him

(h) that the bankrupt has brought on or contributed to
his bankruptcy by incurring unjustifiable expense by bringing
a frivolous or vexatious action

(i) that the bankrupt has within three months, preceding
the date of the receiving order, when unable to pay his debts
as they become due, given an undue preference to any of his
creditors;

(j) that the bankrupt has within three months preceding
the date of the receiving order incurred liabilities with a view
to making his assets equal to fifty per cent of his unsecured
liabilities;

(k) that the bankrupt has on any previous occasion,
whether in this Colony or elsewhere, been adjudged bankrupt
or made a composition or arrangement with his creditors;

(l) that the bankrupt has been guilty of any fraud or
fraudulent breach of trust.

(5) The court may, on proof to its satisfaction of any of
the facts mentioned in paragraphs (b), (c), (d), (f), (g), (h)
(i) or (l) of sub-section (4), summarily sentence the bankrupt
to imprisonment for any term not exceeding one year.

(6) For the purposes of this section, a bankrupt's assets
shall be deemed of a value equal to fifty per cent of his un-
secured liabilities when the court is satisfied that the property
of the bankrupt has realized or is likely to realize, or with due
care in realization might have realized, an amount equal to
fifty per cent of his unsecured liabilities, and a report by the
Official Receiver or the trustee shall be primd facie evidence
of the amount of such liabilities.

(7) For the purposes of this section, the report of the
Official Receiver shall be primfi facie evidence of the statements.
therein contained.

(8) Notice of the appointment by the court of the day for
hearing the application for discharge shall be published as the
court may direct or as may be prescribed and shall be sent





fourteen days at least before the day so appointed to each creditor
who has proved, and the court may hear the Official Receiver and
the trustee and may also heat any creditor. At the hearing the court
may put such questions to the debtor and receive such evidence as it
may think fit.

(9) The powers of suspending and of attaching conditions to a
bankrupt's discharge may be exercised concurrently.

(10) A discharged bankrupt shall, notwithstanding his
discharge, give such assistance as the trustee may require in
the realization and distribution of such of his property as is
vested in the trustee, and if he fails to do so he shall be guilty
of a contempt of court; and the court may also, if it thinks
fit, revoke his discharge, but without prejudice to the validity
of any sale, disposition or payment duly made or thing duly
done subsequent to the discharge but before its revocation.

31. In either ofthe following cases, that is to say

(1) in the case of a settlement made before and in consideration
of marriage whexe the settlor is not at the time of making the
settlement able to pay all his debts without the aid of the property
comprised in the settlement ; or

(2) in the case of any covenant or contract made in consideration
of marriage for the future settlement on or for the settlor's wife or
children of any money or property wherein he had not at the date of
his marriage any estate or interest (not being money or property of or
in right of his wife),

if the settlor is adjudged bankrupt or compounds or arranges with his
creditors and it appears to the court that such settlement, covenant or
contract was made in order to defeat or delay creditors, or was
unjustifiable having regard to the state of the settlor's affairs at the
time when it was made, the court may refuse or suspend an order
of discharge or grant an order subject to conditions or refuse to
approve a composition or arrangement, as the case may be, in like
manner as in cases where the debtor has been guilty of fraud.

32.-(1) An order of discharge shall not re-lease thebankrupt

As ameuded by Law Rev. Ord,, 1939, Supp. Sched.





(a) from any debt on a recognizance nor from any debt
with which the bankrupt may be chargeable at the suit of the
Crown or of any person for any offence against a statute relating
to any branch of the public revenue, or at the suit of any
public officer on a bail bond entered into for the appearance of
any person prosecuted for any such offence, and he shall not
be discharged from such excepted debts unless the Financial
Secretary certify in writing his consent to his being discharged
therefrom ; or

(b) from any debt or liability incurred by means of any
fraud or fraudulent breach of trust to which he was a party,
or from any debt or liability whereof he has obtained forbearance
by any fraud to which he was a party.

(2) An order of discharge shall release the bankrupt from
all other debts provable in bankruptcy.

(3) An order of discharge shall be conclusive evidence of
the bankruptcy and of the validity of the proceedings therein,
and in any proceedings that may be instituted against a
bankrupt who has obtained an order of discharge in respect
of any debt from which he is released by the order, the
bankrupt may plead that the cause of action occurred before his
discharge.

(4) An order of discharge shall not release any person
who at the date of the receiving order was a partner or co-
trustee with the bankrupt or was jointly bound or had made
any joint contract with him, or any person who was surety or
in the nature of a surety for him.

33.-(1) Where in the opinion of the court a debtor ought
not to have been adjudged bankrupt, or where the court is
satisfied that the assets for division among the unsecured
creditors after payment of all costs, charges and expenses and
the debts which are preferential under this Ordinance are not
and will not be sufficient to pay a dividend of fifteen per
cent., or where ii is proved to the satisfaction of the court that
the debts of the bankrupt are paid in full, the court may, on
the application of any person interested, by order annul the
adjudication.





(2) Where an adjudication is annulled under this section
all sales and dispositions of property and payments duly made,
and all acts theretofore done, by the Official Receiver, trustee
or other person acting under their authority, or by the court,
shall be valid, but the property of the debtor who was adjudged
bankrupt shall vest in such person as the court may appoint,
or in default of any such appointment revert to the debtor for
all his estate, or interest therein on such terms and subject to
such conditions, if any, as the court may declare by order.

(3) Notice of the order annulling an adjudication shall
be forthwith gazetted and shall be advertised in at least two
local newspapers, one of which shall be Chinese, or as may be
prescribed.

(4) For the purposes of this section, any debt disputed
by a debtor shall be considered as paid in full if the debtor
enters into a bond, in such sum and with such sureties as the
court approves, to pay the amount to be recovered In ny
proceeding for the recovery of or concerning the debt, with
costs, any any debt due to a creditor who cannot be found or
cannot be identified shall be considered as paid in full if paid
into court.

PART III

ADMINISTRATION OF PROPERTY.

Rroof of debts.

34.-(1) Demands in the nature of unliquidated damages
arising otherwise than by reason of a contract, promise or breach
of trust shall not be provable in bankruptcy.

(2) A person having notice of any act of bankruptcy
available against the debtor shall not prove under the order
for any debt or liability contracted by the debtor subsequently
to the date of his so having notice.

(3) Save as aforesaid, all debts and liabilities, present or
future, certain or contingent, to which the debtor is subject at
the date of the receiving order, or to which he may become
subject before his discharge by reason of any obligation incurred
before the date of the receiving order, shall be deemed to be
debts provable in bankruptcy.





(4) An estimate shall be made by the trustee of the value
of any debt or liability provable as aforesaid which by reason
of its being subject to any contingency or contingencies, or for
any other reason, does not bear a certain value.

(5) Any person aggrieved by any estimate made by the
trustee as aforesaid may appeal to the court.

(6) If in the opinion of the court the value of the debt
or liability is incapable. of being fairly estimated, the court may
make an order to that effect, and thereupon the debt or liability
shall, for the purposes of this Ordinance, be deemed to be a
debt not provable in bankruptcy.

(7) If in the opinion of the court the value of the debt
or liability is capable of being fairly estimated, the court may
direct the value to be assessed before the court itself without
the intervention of a jury and may give all necessary directions
for this purpose, and the amount of the value when assessed
shall be deemed to be a debt provable in bankruptcy.

(8) 'Liability' shall, for the purposes of this Ordinance,
include-

(a) any compensation for work or labour done;

(b) any obligation or possibility of an obligation to pay
money or money's worth on the breach of any express or
implied covenant, contract, agreement or undertaking, whethes
the breach does or does. not occur, or is or is not likely to occur
or capable of occurring, before the discharge of the debtor ;
(c) generally, any express or implied engagement agree-
ment or undertaking to pay or capable, of resulting in the
payment of money or money's worth, whether the payment is,
as respects amount, fixed or unliquidated, as respects time,
present or future, certain or dependent on any one contingency
or on two or more contingencies, or, as to mode of valuation,
capable of being ascertained by fixed rules or as matter of
opinion.

35. Where there have been mutual credits, mutual debts
or other mutual dealings between a debtor against whom a
receiving order is made under this Ordinance and any
other person proving or claiming to prove a debt under the

As amended by Law Rev. Orld., 1939, Supp. Sched.





receiving order, an account shall be taken of what is due from
the one party to the other in respect of such mutual dealings
and the sum due from the one party shall be set off against
any sum due from the other party, and the balance of the
account, and no more, shall be claimed or paid on either side
respectively; but a person shall not be entitled under this
section to claim the benefit of any set-off against the property
of a debtor in any case where he had, at the time of giving
credit to the debtor, notice of an act of bankruptcy committed
by the debtor and available against him.

36. The Chief justice May, with the approval of the
Legislative Council, make rules with respect to the mode of
proving debts, the right of proof by secured and other creditors,
the admission and rejection of proofs, and other matters.

37.-(1) The assets remaining after payment of the actual
expenses incurred in realizing any of the assets of the debtor
shall, subject to any order of the court, first be liable to the
following payments, which shall be made in the following order
of priority, namely-

(a) the actual expenses incurred by the Official Receiver in
protecting or attempting to protect the property or assets of the
debtor or any part thereof and any expenses or outlay incurred
by him or by his authosity in carrying on he business of the
debtor;

(b) the fees, percentages and charges payable to, or costs,
charges and expenses incurred or authorized by, the Official
Receiver, whether acting as Official Receiver or trustee;
(c) the remuneration of the special manager, if any; and

(d) the taxed costs of the petitioner, so far as the same
may not have been disallowed by the court.

(2) Whenever the court is satisfied that property of a
debtor in respect of whose estate a receiving order has been
made has been preserved for the benefit of the creditors by
means of legal proceedings brought by a creditor against
the debtor without notice of any available act of bankruptcy
committed by the debtor, the court may in its discretion order
the payment of the costs of such legal proceedings or any part

As amended by Law Rev. Ord., 1939, Supp. Sched.





of them (taxed as between party and party) out of the estate,
with the same priority as to payment as is herein provided in
respect of the taxed costs of the petitioner.

38.-(1) In the distribution of the property of a bankrupt
there, shall be paid in priority to all other debts-

(a) all debts due from the bankrupt to tne Crown at the date
of the receiving order and having become due and payable within
twelve months next before that time;

(b) all wages or salary (including commission, provided
that the amount thereof is fixed or ascertainable at the date of
the receiving order) of any clerk or servant in respet of services
rendered to the bankrupt during four months before the date of
the receiving order, not exceeding three hundred dollars;

(c) all wages of any labourer or workman not exceeding one
hundred dollars, whether payable for time or for piece work, in
respect of services rendered to the bankrupt during four months
before the date of the receiving order.

(2) The foregoing debts shall rank equally between them-
selves and shall be paid in full unless the property of the
bankrupt is insufficient to meet them, in which case they shall
abate in equal proportions between themselves.

(3) Subject to the provisions contained in section 37 and to
the retention of such sums as may be necessary for the costs of
administration or otherwise, the foregoing debts shall be dis-
charged forthwith so far as the property of the debtor is sufficient
to meet them.
(4) In the event of a landlord or other person distraining
or having distrained on any goods or effeds of a bankrupt
within three months next before the date of the receiving order
the debts to which priority is given by this section shall be a
first charge on the goods or effects so distrained on or the
proceeds of the sale thereof : Provided that in respect of any
money paid under any such charge the landlord or other person
shall have the same rights of priority as the person to whom
such payment is made.

(5) This section shall apply in the case of a deceased person
who dies insolvent as if he were a bankrupt and as if the date
of his death were substituted for the date of the receiving order.





(6) In the case of partners the joint estate shall be applicable in the first
instance in payment of their joint debts and the separate estate of each
partner shall be applicable in the first instance in payment of his separate
debts. If there is a surplus of the separate estates, it shall be dealt with as
part of the joint estate. If there is a surplus of the joint estate, it shall be dealt
with as part of the respective separate estates in proportion to the right and
interest of each partner in the joint estate.

(7) Subject to the provisions of this Ordinance, all debts proved in the
bankruptcy shall be paid pari passu.

(8) If there is any surplus after payment of the foregoing debts it shall
be applied in payment of interest from the date of the receiving order at the
rate of eight per cent per annum on all debts proved in the bankruptcy.

39.-(1) Where at the time of the presentation of the bankruptcy
petition any person is apprenticed or is an articled clerk to the bankrupt, the
adjudication of bankruptcy shall, if either the bankrupt or the apprentice or
clerk gives notice in writing to the trustee to that effect, be a complete
discharge of the indenture of apprenticeship or articles of agreement; and if
any money has been paid by or on behalf of the apprentice or clerk to the
bankrupt as a fee, the trustee may, on the application of the apprentice or
clerk or of some person on his behalf, pay such sum as the trustee, subject to
an appeal to the court, thinks reasonable, out of the bankrupt's property, to
or for the use of the apprentice or clerk, regard being had to the amount paid
by him or on his behalf and to the time during which he served with the
bankrupt under the indenture or articles before the commencement of the
bankruptcy and to the other circumstances of the case.

(2) Where it appears expedient to a trustee, he may, on the application
of any apprentice or articled clerk to the bankrupt or any person acting on
behalf of such apprentice or articled clerk, instead of acting under the
preceding provisions of this section, transfer the indenture of
apprenticeship or articles of agreement to some other person.

40. The landlord or other person to whom any rent is due from the
bankrupt may subject to the provisions of the Distress





for Rent Ordinance, 1883, at any time either before or after the
commencement of the bankruptcy, distrain upon the goods or
effects of the bankrupt for the retit due to him from the bankrupt,
with this limitation, that if such distress for rent be levied after
the commencement of the bankruptcy, it shall be available only
for six months' rent accrued due prior to the date of the order
of adjudication and shall not be available for rent payable in
respect of any period subsequent to the date when the distress
was levied, but the landlord or other person to whom the rent
may be due from the bankrupt may, prove under the bankruptcy
for the surplus due for which the distress May not have been
available.

41.-(1) Where a married woman has bee h adjudged
bankrupt, her husband shall not be entitled to claim any dividend
as a creditor in respect of any money or other estate lent or
entrusted by him to her until all claims of the other creditors of
his wife for valuable consideration in money or money's worth
have been satisfied.

(2) Where a debtor has been adjudged bankrupt, any, money
or other estate of his wife lent or entrusted by her to him shall
be treated as assets of his estate, and the wife shAl not be entitled
to claim any dividend as a creditor in respect of any such money
or other estate until all claims of the other creditors of the debtor
for valuable consideration in money or money's worth have been
satisfied.

(3) In this section 'married woman' and 'wife' include
'concubine'.

Property available for payment of debts.

42. The bankruptcy of a debtor, whether it takes place on
the debtor's own petition or upon that of a creditor or creditors,
shall be deemed to have relation back to and to commence at
the time of the act of bankruptcy being committed on which a
receiving order is made against him, or if the bankrupt is proved
to have committed more acts of bankruptcy than one, to have
relation back to and to commence at the time of the first of the
acts of bankruptcy proved to have been committed by the
bankrupt within three months next preceding the date of the
presentation of the bankrupicy petition, but no bankruptcy





petition, receiving order or adjudication shall be rendered invalid
by reason of any act of bankruptcy anterior to the debt of the
petitioning creditor.

43. The property of the bankrupt divisible amongst his
creditors, and in this Ordinance referred to as the property of
the bankrupt, shall not comprise the following particulars-

(1) property held by the bankrupt on trust for any other
person;

(2) the tools (if any) of his trade and the necessary wearing
apparel and bedding of himself and his family dependent on and
residing with him, to a value, inclusive of tools and apparel and
bedding, not exceeding one hundred dollars in the whole

But it shall comprise the following particulars-

(a) all such property as may belong to or be vested in the
bankrupt at the commencement of the bankruptcy or may be
acquired by or devolve on him before his discharge;
(b) the capacity to exercise and to take proceedings for
exercising all such powers in or over or in respect of property
as might have been, exercised by the bankrupt for his own
benefit at the commencement of his bankruptcy or before his
discharge;

(c) all goods being at the commencement of the bankruptcy
in the possession, order or disposition of the bankrupt, in his
trade or business, by the consent and permission of the true
owner, under such circumstances that he is the reputed owner
thereof: Provided that things in action other than debts due
or growing due to the bankrupt in the course of his trade or
business shall not be deemed goods within the meaning of this
section.

44.-(1) Where a second or subsequent receiving order is
made against a bankrupt, or where an order is made for the
administration in bankruptcy of the estate of a deceased
bankrupt, then for the purposes of any proceedings consequent
upon any such order the trustee in the last preceding bankruptcy
shall be deemed to be a creditor in respect of any unsatisfied
balance of the debts provable against the property of the
bankrupt in that bankruptcy.

As amended by Law Rev. Ord., 1939, Supp. Sched.





(2) In the event of a second or subsequent receiving order
made against a bankrupt being followed by an order adjudging
him bankrupt, or in the event of an order being made for the
administration in bankruptcy of the estate of a deceased bankrupt,
any property acquired by him since he was last adjudged
bankrupt, which at the date when the subsequent petition was
presented had not been distributed amongst the creditors in such
last preceding bankruptcy, shall subject to any disposition
thereof made by the Official Receiver or trustee in that bank-
ruptcy, without knowledge of the presentation of the subsequent
petition, and subject to the provisions of section 52, vest in the
trustee in the subsequent bankruptcy or administration in bank-
ruptcy as the case may be.

(3) Where the trustee in any bankruptcy receives notice of
a subsequent petition in bankruptcy against the bankrupt or after
his decease of a petition for the administration of his estate in
bankruptcy, the trustee shall hold any property then in his
possession which has been acquired by the bankrupt since he was
adjudged bankrupt until the subsequent petition has been
disposed of, and if on the subsequent petition an order of
adjudication or an order for the administration of the estate in
bankruptcy is made, he shall transfer all suc h property or the
proceeds thereof (after deducting his costs and expenses) to the
trustee in the subsequent bankruptcy or administration in
bankruptcy, as the case may be.

Effect of bankruptcy on antecedent and other transactions,

45.-(1) Where a creditor has issued execution against the
property of a debtor or has attached any debt due to him, he shall
not be entitled to retain the benefit of the execution or attachment
against the trustee in bankruptcy of the debtor unless he has
completed the execution or attachment before the date of the
receiving order and before notice of the presentation of any
bankruptcy petition by or against the debtor, or of the com-
mission of any availatle act of bankruptcy by the debtor,

(2) For the purposes of this Ordinance, an execution shall
be deemed to be completed-

(a) in the case of movable property in the posses sion of the
debtor or of negotiable instruments or of money, by receipt or
recovery by the judgment creditor of the full amount of the levy,





After due compliance by the bailiff with the provisions of section
46;
(b) in the case of movable property to which the debtor is
entitled subject to a lien or right of some person to the immediate
possession thereof, by attachment by prohibitory order and sale;

(c) in the case of lands, houses or other immovable property
or any interest therein, either at law or in equity, by attachment
by prohibitory order and due registration thereof in the
appropriate Land Office;

(d) in the case of An attachment of a debt not being a
negotiable instrument, by receipt of the debt,

(e) in the case of shares in any public company or
corporation, by attachment by prohibitory order;

(f) in the case of property in the custody or under the control
of any public officer in his official capacity or in custodia legis,
by attachment by prohi bitory order duly obtained and served;
and

(g) in the case of any equitable interest in lands, houses or
other immovable property, by the appointment of a receiver or
manager.

(3) An execution completed as aforesaid is not invalid by
reason only of its being an act of bankruptcy, and a person
who purchases the goods in good faith under a sale by the
bailiff shall in all cases acquire a good title to them against the
trustee in bankruptcy.

46.---(1) Where any movable property or negotiable
instruments or money of a debtor are taken in execution, and
before the receipt or recovery by, the judgment creditor of the
full amount of the levy, notice is served on the bailiff that a
receiving order has been made against the debtor, the bailiff
shall on request deliver the movable property, negotiable
instruments or money, or any money received in satisfaction or
part satisfaction of the execution, to the Official Receiver, but
the costs of the execution shall be a first charge on the property
so delivered and the Official Receiver or trustee may sell the
movable property or negotiable instruments, or an adequate part
thereof, or apply the money, for the purpose of satisfying the
charge.





(2) Where, under an execution in respect of a judgment for
a sum exceeding one hundred dollars, the property of a debtor
is sold or money is paid in order to avoid sale, the bailiff shall
deduct his costs of the execution from the proceeds of sale or the
money paid and pay the balance into court, and if within
fourteen clear days of such sale or payment as aforesaid a bank-
ruptcy petition is presented by or against the debtor, the said
balance shall remain in court and if the debtor is adjudged
bankrupt the balance shall be paid out to the trustee. in the
bankruptcy, who shall be entitled to retain, the same as against
the execution creditor, but otherwise it shall be dealt with as if
no bankruptcy petition had been presented.

47.-(1) Any settlement of property not being a settlement
made before and in consideration of marriage, or made in favour
of a purchaser or incumbrancer in good faith and for valuable
consideration, or a settlement made on or for the wife or children
of the settlor of property which has accrued to the settlor after
marriage in right of his wife, shall, if the settlor becomes bank-
rupt within two years after the date of the settlement, be void
against the trustee in the bankruptcy, and shall, if the settlor
becomes bankrupt at any subsequent firrie within ten years after
the date of the settlement, be void against the trustee in the
bankruptcy, unless the parties claiming under the settlement can
prove that the settlor was at the time of making the settlement
able to pay all his debts without the aid of the property com-
prised in the settlement and that the interest of the settlor in
such property passed to the trustee of such settledlent on the
execution thereof.

(2) Any covenant or contract made by any person (herein-
after called the settlor) in consideration of his or her marriage,
either for the future payment of money for the benefit of the
settlor's wife or husband or children or for the future settlement
on or for the settlor's wife or husband or Children of property,
wherein the settlor had not at the date of the marriage any estate
or interest, whether vested or contingent in possession or,
remainder, and not being money or property in right of the
settlor's wife or husband, shall if the settlor is adjudged bank-
rupt and the covenant or contract has not been executed at the
date of the commencement of his bankruptcy, be void against
the trustee in the bankruptcy except so far as it enables the
persons entitled under the covenant or contract to claim for





divid end in the settlor's bankruptcy under or in respect of the
covenant or contract, but any such claim to dividend shall be
postponed until all claims of the other creditors for valuable
consideration in money or money's worth have been satisfied.

(3) Any payment of money (not being payment of premiums
on a policy of life assurance), or any transfer of property made
by the settlor in pursuance of such a covenant or contract as
aforesaid, shall be void against the trustee in the settlor's
bankruptcy unless the persons to whom the payment or transfer
was made prove---

(a) that the payment or transfer was made more than two
years before the date of the commencement of the bankruptcy; or

(b) that at the date of the payment or transfer the settlor
was able to pay all his debts without the aid of the money so
paid or the property so transferred; or

(c) that the payment or transfer was made in pursuance of
a covenant or contract to pay or transfer money or property
expected to come to the settlor from or on the death of a
particular person named in the covenant or contract and was
made within three months after the money or property came into
the possession or under the control of the settlor;

but, in the event of any such payment or transfer being declared
void, the persons to whom it was made shall be entitled to
claim for dividend under or in respect of the covenant or contract
in like manner as if it had not been executed at the commence-
ment of the bankruptcy.

(4) 'Settlement' shall, for the purposes of this section,
include any conveyance or transfer of property.

48.-(1) Where a person engaged in any trade or business
makes an assignment to any other person of his existing or
future book debts or any class thereof and is subsequently
adjudicated bankrupt, the assignment shall be void against the
trustee as regards any book debts which have not been paid at
the commencement of the bankruptcy, unless the assignment has
been registered with th6 Registrar of the Supreme Court in a
register to be kept by him for that purpose

Provided that nothing in this section shall have effect so as
to render void any assignment of book debts due at the date of





the assignment from specified. debtors, or of debts growing due
under specified contracts, or any assignment of book debts
included in a transfer of a business made bona fide and for value,
or in. any assignment of assets for the benefit of creditors
generally.

(2) For the purposes of this section, 'assignment' includes
assignment by way of security and other charges on book debts.

49.-(1) Every conveyance or transfer of property, or charge
thereon made, every payment made, every obligation incurred
and every judical proceeding taken or suffered by any person
unable to pay his debts as they become due from his own money
in favour of any creditor or of any person in trust for any
creditor, with a view to giving such creditor, or any surety or
guarantor for the debt due to such creditor, a preference over. the
other creditors, shall, if the person making, taking, paying or
suffering the same is adjudged bankrupt on a bankruptcy petition
presented within three months after the date of making, taking,
paying or suffering the same, be deemed fraudulent and void
as against the trustee in the bankruptcy.

(2) This section shall not affect the rights of any person
making title in good faith and for valuable consideration, through
or under a creditor of the bankrupt.

50.-(1) Subject to the provisions of this Ordinance with
respect to the effect of bankruptcy on an execution or attachment
and with respect to the avoidance of certain settlements,
assignments and preferences, nothing in this Ordinance shall
invalidate, in the case of a bankruptcy-
(a) any payment by the bankrupt to any of his creditors;

(b) any payment or delivery to the bankrupt;
(c) any conveyance or assignment by the bankrupt for
valuable consideration;

(d) any contract, dealing or transaction by or with the
bankrupt for valuable consideration
Provided that both the following conditions are complied
with, namely-
(i) that the payment, delivery, conveyance, assignment.
contract, dealing or transaction, as the case may be, takes place
before the date of the receiving order; and





(ii) that the person (other than the debtor) to, by or with
whom the payment, delivery, conveyance, assignment, contract,
dealing or transaction was made, executed or entered into has
not at the time of the payment, delivery, conveyance, assign-;
ment, contract, dealing or transaction notice of any available act
of bankruptcy committed by the bankrupt before that time.

(2) Where any money or property of a bankrupt has, on or
after the date of the receiving order but before notice thereof has
been gazetted in the prescribed manner, been paid or transferred
by a person having possession of it to some other person, and
the payment or transfer is under the provisioQs of this Ordinance
void as against the trustee in the bankruptcy, then if the person
by who m the payment or transfer was made proves that when
it was made he had not had notice of the receiving order, any
right of recovery which the trustee may have against him in
respect of the money or property shall not be enforced by any
legal proceedings except where and in so far as (he court is
satisfied that it is not reasonably practicable for the trustee to
recover in respect of the money or property or of some part
thereof from the person to whom it was paid or transferred.

51. A payment of money or delivery of property to a person
subsequently adjudged bankrupt or to a person claiming by
assignment from him shall, notwithstanding anything in this
Ordinance, be a good discharge to the person paying the money
or delivering the property if the payment or delivery is made
before the actual date on which the receiving order is made and
without notice of the presentation of a bankruptcy petition, and
is either pursuant to the ordinary course of business or otherwise
bond fide.

52.-(1) All transactions by a bankrupt with any person
dealing, with him bona fide and for value, in respect of property,
whether leasehold or pure personalty, acquired by the bankrupt
after the adjudication, shall, if completed before any intervention
by the trustee, be valid against the trustee, and any estate or
interest in such property which by virtue of this Ordinance is
vested in the trustee shall determine and pass in such manner
and to such extent as may be required for civinix effect, to any
such transaction.

* As amended by Law Rev. Ord., 1939, Supp. Sched.





For the purposes of this sub-section, the receipt of any
money, security or negotiable instrument from or by the order
or direction of a bankrupt by his banker, and any payment and
any delivery of any security or negotiable instrument made to
or by the order or direction of a bankrupt by his banker, shall
be deemed to be a transaction by the bankrupt with such banker
dealing with him for value.

(2) Where any individual, company or firm has ascertained
that a person having a deposit, whether a deposit in respect of
capital or not, or a credit balance, with such individual, company
or firm is an undischarged bankrupt, then it shall be the duty
of such individual, company or firm forthwith to inform the
Official Receiver and the trustee in the bankruptcy of the
existence of the deposit or credit balance, and such individual,
company or firm shall not make any payment out of or in respect
of the deposit or credit balance except under an order of the court
or in accordance with instructions from the Official Receiver or
the trustee in the bankruptcy.

(3) In case of any contravention of the provisions of sub-
section (2)the individual, or the directors and officers of the
company, or the partners and manager of the firm, as the case
may be, shall upon summary, conviction be liable to a fine not
exceeding one thousand dollars and to imprisonment for any
term not exceeding six months.

Realization of propoty.

53.-(1) The trustee shall as soon as may be take possession
of the deeds, books and documents of the bankrupt and all other
parts of his property capable of manual delivery.

(2) The trustee shall, in relation to and for the purpose of
acquiring or retaining possession of the property of the bankrupt,
be in the same position as if he were a receiver of the property
appointed by the court, and the court may on his application
enforce such acquisition or retention accordingly.

(3) Where any part of the property of the bankrupt consists
of stock, shares in ships, shares, or any other property transfer-
able in the books of any company, office or person, the trustee
may exercise the right to transfer the property to the same extent
as the bankrupt might have exercised it if he had not become
bankrupt.





(4) Where any part of the property of the bankrupt consists
of things in action, such things shall be deemed to have been
duly assigned to the trustee.

(5) Subject to the provisions of this Ordinance with respect
to property acquired by a bankrupt after adjudication, any
treasurer or other officer, or any banker, attorney, clerk, servant,
comprador, employer or agent, of a bankrupt, shall pay and
deliver to the trustee all money and securities in his possession
or power, which he is not by law entitled to retain as against the
bankrupt or the trustee. If he does not, he shall be guilty of a
contempt of court and may be punished accordingly on the
application of the trustee.

54. Any person acting under warrant of the court may seize
any part of the property of a bankrupt, or of a debtor against
whom a receiving order has been made, in the custody or
possession of the bankrupt or the debtor or of any other person,
and with a view to such seizure may break open any house,
building or room of the bankrupt or the debtor where the
bankrupt or the debt or is supposed to be, or any building or
receptacle of the bankrupt or the debtor where any of his property
is supposed to be; and where the court is satisfied that there is
reason- to believe that property of a bankrupt, or of a debtor
against whom a receiving order has been made, is concealed in
a house or place not belonging to him, the court may if it thinks
fit grant a search warrant to any constable or officer of the court,
who may execute it according to its tenor.

55. Where the bankrupt is possessed of any property out
of the Colony, the trustee shall require him to join in selling
the same for the benefit of the creditors and to sign all necessary
authorities, powers, deeds and documents for the purpose, and
if and so often as the bankrupt refuses to do so he may be
punished for a contempt of court.

56.-(1) Where a bankrupt is an officer of the navy, army
or air force, or an officer or clerk or otherwise employed or
engaged in the civil service of the Crown, or where a bankrupt
is in receipt of any pay or pension from the Government of Hong
Kong or is entitled to any allowance or compensation granted by
the Government of Hong Kong, the trustee shall receive for

As amended by Law Rev. Ord., 1939, Supp. Sched.





distribution among the creditors so much of the bankrupt's pay,
salary, pension, allowance or compensation as the court, with the
consent of the Governor, on the application of the trustee, may
direct.

(2) Where a bankrupt is in receipt of a salary or income
other than as aforesaid, the court, on the application of the
trustee, may from time to time make such order as it thinks just
for the payment of the salary or income or,of any part thereof
to the trustee, to be applied by him in such manner as the court
may direct.

(3) Nothing in this section shall take away or abridge any
power to dismiss a bankrupt or to declare the pay, pension,
allowance, compensation, salary or income of any bankrupt to
be forfeited.

57. Where a married woman who has been adjudged
bankrupt has property the income of which is subject to a restaint
on anticipation, the court shall have power, on the application
of the trustee, to order that, during such time as the court may
order, the whole or some part of such income be paid to the
trustee for distribution amongst the creditors, and in the exercise
of such power the court shall have regard to the means of
subsistence available for the woman and her children.

58.-(1) Until a trustee is appointed the Official Receiver
shall be the trustee for the purposes of this Ordinance, and
immediately on a debtor being adjudged bankrupt the property
of the bankrupt shall vest in the trustee.

(2) On the appointment of a trustee the property shall
forthwith pass to and vest in the trustee appointed.

(3) The property of the bankr upt shall pass from trustee to
trustee, including under that term the Official Receiver when he
fills the office of trustee, and shall vest in the irustee for the time
being during his continuance in office, without any conveyance,
assignment or transfer whatever.

59.-(1) Where any part of the property of the bankrupt
consists of land of anv teof shares or stock in companies,
of unprofitable contracts, or of

As amended by No. 10 of 1936 [20.3.36].





any other property that is unsaleable, or not readily saleable, by
reason of its binding the possessor thereof to the performance
of any onerous act or to the payment of any sum of money, the
trustee, notwithstanding that he has endeavoured to sell or has,
taken possession of the property or exercised any act of owner-
ship in relation thereto, but subject to the provisions of this
section, may, by writing signed by him, at any time within
twelve months after the first appointment of a trustee or such
extended period as may be allowed by the court, disclaim the
property

Provided that, where any such property has not come to the
knowledge of the trustee within one month after such appoint-
ment, he may disclaim such property at any time within twelve
months after he has become aware thereof or such extended period
as may be allowed by the court.

(2) The disclaimer shall operate to determine, as from the
date of disclaimer, the rights, interests and liabilities of the
bankrupt and his property in or in respect of the property
disclaimed, and shall also discharge the trustee from all personal
hability in respect of the property, disclaimed as from the date
when the property vested in him, but shall not, except so far as
is necessary for the pprpose of releasing the bankrupt and his
property and the trustee from liability, affect the rights or
liabilities of any other person.

(3) A trustee shall not be entitled to disclaim a lease without
the leave of the court, except in any cases which may be
prescribed by general rules and the court may before or on
granting such leave, require such notices to be given to persons
interested, and impose such terms as a condition of granting
leave, and rnake such orders with respect to fixtures, tenant's
improvements and other matters arising out of the tenancy, as
the court thinks just.

(4) The trustee shall not be entitled to disclaim any property
in pursuance of this section in any case where an application in
writing has been made to the trustee by any person interested in
the property requiring him to decide whether he will disclaim or
not and the trustee has for a period of twenty-eight days after
the receipt of the application, or such extended period as may
be allowed by the court, declined or neglected to give notice
whether he disclaims the property or not; and in the case of a





contract, if the trustee after Such application as aforesaid does
not within the said period or extended period disclaim the
contract, he shall be deemed to have adopted it.

(5) The court may, on the application of any person who
is, as against the trustee, entitled to the benefit or, subject to the
burden of a contract made with the bankrupt, make an order
rescinding the contract on such terms as to payment by or to
either party of damages for the non-performance ofthe contract,
or otherwise, as to the court may seem equitable, and any
damages payable under the order to any such person may be
proved by him as a debt under the bankruptcy.

(6) The court may, on application by any person claiming
either to have any interest in any disclaimed property or to be
under any liability not discharged by this Ordinance in respect
of any disclaimed property, and on hearing such persons as it
thinks fit, make in order for the vestIng of the property in or
delivery thereof to any person entitled thereto, or to whom it may
seem just that the same should be delivered by way of com-
pensation for such liability as aforesaid, or a trustee for him, and
on such terms as the court thinks just; and on any such vesting
order being made, the property comprised therein shall vest
accordingly in the person therein named in that behalf without
any conveyance or assignment for the purpose:

Provided that where the property disclaimed is of a leasehold
nature the court shall not make a vesting order in favour of any
person claiming under the bankrupt, whether as under-lessee or
as mortgagee by demise except upon the terms of making that
person-

(a) subject to the same liabilities and obligations as the
bankrupt was subject to under the lease in respect of the property
atthe date when the bankruptcy petition was filed; or
(b) if the court thinks fit, subject only to the same liabilities
and obligations as if the lease had been assigned to that person
at that date,

and in either event (if the case so requires) subject only to the
same liabilities and obligations as if the lease had comprised
only the property comprised in the vesting order; and any
mortgagee or under-lessee declining to accept a vesting order
upon such terms shall be excluded from all interest in and security





upon the property, and if there is no person claiming under the bankrupt
who is willing to accept an order upon such terms the court shall have
power to vest the bankrupt's estate and interest in the property in any
person liable either personally or in a representative character and either
alone or jointly with the bankrupt to perform the lessee's covenants in the
lease, freed and discharged from all estates, incumbrances and interests
created therein by the bankrupt.

(7) Where on the release, removal, resignation or death of a trustee in
bankruptcy the Official Receiver is acting as trustee, he may disclaim any
property which might be disclaimed by a trustee under the foregoing
provisions, notwithstanding that the time prescribed by this section for such
disclaimer has expired, but such power of disclaimer shall be exercisable only
within twelve months after the Official Receiver has become trustee in the
circumstances aforesaid or has become aware of the existence of such
property, whichever period may last expire.

(8) Any person injured by the operation of a disclaimer under this
section shall be deemed to be a creditor of the bankrupt to the extent of the
injury and may accordingly prove the same as adebt under the bankruptcy.

60. Subject to the provisions of this Ordinance and to any

order of the court, the trustee may do all or any of the following
things-

(1) sell all or any part of the property of the bankrupt (including the
goodwill of the business, if any, and the book debts due or growing due to
the bankrupt), by public auction or private contract, with power to transfer
the whole thereof to any person or company, or to sell the same in parcels,
and any transfer of a business of a bankrupt by the Official Receiver or
trustee shall be deemed to be exempted from the provisions of the
Fraudulent Transfers of Businesses Ordinance, 1923;

(2) give receipts for any money received by him which receipts shall
effectually discharge the person paying the money from all responsibility in
respect of the application thereof;

(3) prove, rank, claim and draw a dividend in respect of any debt due to
the bankrupt ;

(4) exercise any powers the capacity to exercise which is

* As amended by Law Rev. Ord., 1939, Supp. Sched.





vested in the trustee under this Ordinance and execute any powers
of attorney, deeds and other instruments for the purpose of
carrying into effect the provisions of this Ordinance.

61. The trustee may, with the permission of the committee
of inspection, do all or any of the following things--.
(1) carry on the business of the bankrupt so far as may be
necessary for the beneficial winding up of the same;

(2) bring, institute or defend any action or other legal
proceeding relating to the property of the bankrupt;
(3) employ a solicitor or other agent to take any proceedings
or do any business which may be sanctioned by the committee
of inspection;
(4) accept as the consideration for the sate of any property
of the bankrupt a sum of money payable at a future time subject
to such stipulations as to security and otherwise as the committee
think fit;
(5) mortgage or pledge any part of the property of the
bankrupt for the purpose of raising money for the payment of
his debts;
(6) refer any dispute to arbitration, or compromise any debts,
claims and liabilities, whether present or future, certain or
contingent, liquidated or unliquidated, subsisting or supposed
to subsist between the bankrupt and any person who may have
incurred any liability to the bankrupt, on the receipt of such
sums, payable at such times and generally on such terms as
may be agreed on;

(7) make such compromise or other arrangement as may be
thought expedient with creditors or persons claiming to be
creditors in respect of any debts provable undor the bankruptcy;
(8) make such compromise or other arrangement as may be
thought expedient with respect to any claim arising out of or
incidental to the property of the bankrupt, made or capable of
being made on the trustee by any person or by the trustee on
any person;
(9) divide in its existing form amongst the creditors, accord-
ing to its estimated value, any property which from its peculiar
nature or other special circumstances cannot be readily or
advantageously sold.

As amended by Law Rev. Ord., 1939, Supp. Sched.





The permission given for the purposes of this section shall not
be a general permission to do all or any of the above-mentioned
things but shall only be a permission to do the particular thing
or things for which permission is sought in the specified case or
cases.

62. The trustee, with the permission of the committee of
inspection, may appoint the bankrupt himself to superintend the
management of the property of the bankrupt or of any part
thereof, or to carry on the trade (if any) of the bankrupt for the
benefit of his creditors, and in any other respect to aid in
administering the property, in such manner and on such terms
as the trustee may direct.

63. The trustee may from time to time, with the permission
of the committee of inspection, make such allowance as he may
think just to the bankrupt out of his property for the support
of the bankrupt and his family, or in consideration of his services
if he is engaged. in winding up his estate, but any such allowance
may be reduced by the court.

64. Where any goods of a debtor against whom a receiving
order has been made are held by any person by way of pledge,
pawn or other security, it shall be lawful for the Official Receiver
or trustee, after giving notice in writing of his intention to do
so, to inspect the goods, and where such notice has been given,
such person as aforesaid shall not be entitled to realize his
security until he has given the trustee a reasonable opportunity
of inspectingthe goods and of exercising his right of redemption
if he thinks fit to do so.

65. Where the property of a bankrupt comprises the copy-
right in any work or any interest in such copyright and he is
liable to pay to the author of the work royalties or a share of the
profits in respect thereof, the trustee shall not be entitled to sell
or authorize the sale of any copies of the work, or to perform or
authorize the performance of the work, except on the terms of
paying to the author such sums by way of royalty or share of
the profits as would have been payable by the bankrupt, nor
shall he, without the consent of the author or of the court, be
entitled to assign the right or transfer the interest or to grant any
interest in the right by licence, except upon terms which will
secure to the author payments by way of royalty or share of the





profits at a rate pot less than that which the bankrupt was liable
to pay.

66. Where the Official Receiver or trustee has seized or
disposed of any goods, chattels, property or other effects in the
possession or on the premises or under the control of a debtor
against whom a receiving order has been made and it is there-
after made to appear that the said goods, chattels, property or
other effects were not at the date of the receiving order the
property of the debtor, the Official Receiver or trustee shall not
be personally liable for any loss or damage arising from such
seizure or disposal sustained by any person claiming such
property nor for the costs of any proceedings taken to establish
a claim thereto, unless the court is of opinion that the Official
Receiver or trustee has been guilty of mala fides or of gross
negligence in respect of the same.

Distribution of property.

67.-(1) Subject to the retention of such sums as may be
necessary for the costs of administration, or otherwise, the trustee
shall with all convenient speed declare and distribute dividends
amongst the creditors who have proved their debts.

(2) The first dividend, if any, shall be declared and dis-
tributed within four months after the conclusion of the first
meeting of creditors, unless the trustee satisfies the court that
there is sufficient reason for postponing the declaration to a later
date.

(3) Subsequent dividends shall, in the absence of sufficient
reason to the contrary, be declared and distributed at intervals
of not more than six months.

(4) Before declaring a dividend, the trustee shall cause
notice of his intention to do so to be gazetted and shall also send
reasonable notice thereof to each creditor mentioned in the
bankrupt's statement who has not proved his debt.

(5) When the trustee has declared a dividend he shall
cause to be gazetted and shall send to each creditor who has
proved a notice showing the amount of the dividend and when
and how it is payable.





68.-(1) Where one partner of a firm is adjudged bankrupt,
a creditor to whom the bankrupt is indebted jointly with the
other partners of the firm, or any of them, shall not receive any
dividend out of the separate property of the bankrupt until all
the separate creditors have received the full amount of their
respective debts.

(2) Where joint and separate properties are being
administered, dividends of the joint and separate properties
shall, unless otherwise directed by the court on the application
of any person interested, be declared together and the expenses
of and incidental to such dividends shall be fairly apportioned
by the trustee between the joint and separate properties, regard
being had to the work done for and the benefit received by each
property.

69.-(1) In the calculation and distribution of a dividend
the trustee shall make provision for debts provable in bankruptcy
appearing from the bankrupt's statements, or otherwise, to be
due to persons resident in places so distant from the Colony
that in the ordinary course of communication they have not had
sufficient time to tender their proofs or to establish them if
disputed, and also for debts provable in bankruptcy the subject
of claims not yet determined.

(2) He shall also make provision for any disputed proofs or
claims, and for the expenses necessary for the administration of
the estate or otherwise.

(3) Subject to the foregoing provisions, he shall distribute
as dividend all money in hand.

70. Any creditor who has not proved his debt before the
declaration of any dividend or dividends shall be entitled to be
paid out of any money for the time being in the hands of the
trustee any dividend or dividends he may have failed to receive
before that money is applied to the payment of any future
dividend or dividends, but he shall not be entitled to disturb
the distribution of any dividend declared before his debt was
proved by reason that he has not participated therein.

71.-(1) Where a debt has been proved and the debt
includes interest or any pecuniary consideration in lieu of
interest, such interest or consideration shall, for the purposes





of dividend, be calculated at a rate not exceeding eight per cent.
per annum and be calculated only up to the date of the receiving
order, without prejudice to the right of a creditor to receive out
of the estate any higher rate of interest to which he may be
entitled after all the debts proved in the estate have been paid in
full.

(2) In dealing with the proof of the debt the following rules
shall he observed-

(a) any account settled between the debtor and the creditor
within three years preceding the date of the receiving order may
be examined, and if it appears that the settlement of the account
forms substantially one transaction with any debt alleged to be
due out of the debtor's estate (whether in the form of renewal
of a loan or capitalization of interest or ascertainment of loans
or otherwise), the account may be reopened and the whole
transaction treated as one;

(b) any payments made by the debtor to the creditor before
the receiving order, whether by way of bonus or otherwise, and
any sums received by the creditor before the receiving order
from the realization of any security for the debt shall, notwith-
standing ady agreenitnt to the contrary, be appropriated to
principal and interest in the proportion that the principal bears
to the sum payable as interest at the agreed rate;

(c) where the debt due is secured and the security is
realized after the receiving order, or the value thereof is assessed
in the proof, the amount realized or assessed shall be appropriated
to the satisfaction of principal and interest in the proportion
that the principal bears to the sum payable as interest at the
agreed rate.

72.-(1) When the trustee.has realized all the property of
the bankrupt, or so-much, thereof as can be realized without
needlessly protracting the trusteeship, he shall declare a final
dividend, but before so doing he shall give notice in manner
prescribed to the persons whose claims to be creditors have been
notified to him, but not established to his satisfaction, that if
they do not establish their claims to the satisfaction of the court
within a time limited by the notice, he will proceed to make a
final dividend without regard to their claims.

(2) After the expiration of the time so limited or if the court





on application by any such claimant grants him further time
for establishing his claim, then on the expiration of such further
time, the property of the bankrupt shall be divided among the
creditors who have proved their debts, without regard to the
claims of any other persons.

73. No action for a dividend shall lie against the trustee,
but if the trustee refuses to pay any dividend the court may, if
it thinks fit, order him to pay it and also to pay out of his own
money interest thereon for the time that it is withheld and the
costs of the appfication.

74. The bankrupt shall be entitled to any surplus, remaining
after payment in full of his creditors, with interest, as by this
Ordinance provided, and of the costs, charges and expenses of
the proceedings under the bankruptcy petition.

PART IV.

OFFICIAL RECEIVER.

75.-(1) Subject to the provisions of sub-section (2), the
Governor may appoint such persons as he thinks fit to be
Official Receiver and Deputy Official keceiver of debtors'
estates under this Ordinance and may remove such persons from
such offices.

(2) No person shall be appointed Official Receiver or
Deputy Official Receiver unless at the date of such appointment,
he is a barrister advocate, solicitor or proctor or a member of
the Colonial Legal Service or has successfully passed the
examinations required before admission of a barrister, advocate,
solicitor, law agent or proctor.

(3) The Official Receiver shall act under the general
authority and direction of the Governor and shall also be an
officer of the court.

(4) Every Deputy Official Receiver shall have all the powers
conferred on the Official Receiver by this Ordinance or by any
Ordinance amending or substituted for the same.

(5) Every Deputy Official Receiver shall act under the
general authority and direction of the Official Receiver for the

As amended by Law Rev. Ord., 1939, Supp. Sched.




time being orif there be no Official Receiver for the time being,
under the gefieral authority and direction of the Governor, and
shall also be an officer of the court.

76.-(1), The duties of the Official Receiver shall have
relation both to the conduct of the debtor and to the administra-.
tion of his estate.

(2) The Official Receiver may, for the purpose of affidavits
verifying proofs Droceedings under this Ordinance,
administer oaths.

(3) All provisions in this or any other Ordinance referring
to the trustee in a bankruptcy shall, unless the context otherwise
requires or the Ordinance othetwisd provides, include the Official
Receiver when acting as trustee.

(4) The trustee shall supply the Official Receiver with such
information, and give him such access to and facilities for
inspecting the bankrupt's books and documents, and generally
shall give him such aid, as may be requisite for enabling the
Official Receiver to perform his duties under this Ordinance.

77. As regards the debtor, it shall be the duty of the Official
Receiver-

(1) to investigate the conduct of the debtor and to report to
the court, stating whether there is reason to believe that the
debtor has committed any act which constitutes a misdemeanor
under this Ordinance or which would justify the court in
refusing, suspending or qualifying an order for his discharge;
(2) to conduct the public examination of the debtor;

(3) to take such part and give such assistance in relation to
the prosecution of any fraudulent debtor as the Attorney General
may direct.

78.-(1) As regards the estate of a debtor, it shall be the
duty of the Official Receiver-

(a) pending the appointment of a trustee, to act as interim
receiver of the debtor's estate, and where a special manager is
not appointed, as manager thereof;

As amended by Law Rev. Ord., 1939, Supp Sched.





(b) to raise money in any case where in the interests of the
creditors it appears necessary so to do;

(c) to summon and preside at the first meeting of creditors;
(d) to issue forms of proxy for use at the meetings of
creditors;

(e) to report to the creditors as to any proposal which the
debtor may have made with respect to the mode of liquidating
his affairs;

(f) to advertise the receiving order, the date of the creditors'
first meeting and of the debtor's public examination, and such
other matters as it may be necessarv to advertise;

(g) to act, as trus tee during any vacancy in the office of
trustee ;
(h) to assist the debtor in preparing his statement of affairs
in case the debtor has no solicitor acting for him and is unable
properly to prepare it himself, and for this purpose he may
employ at the expense of the estate any person or persons to
assist in its preparation.

(2) For the purpose of his duties as interim receiver or
manager the Official Receiver shall have the same powers as if
he were a receiver and manager appointed by the court, but
shall, as far as practicable, consult the wishes of the creditors
with respect to the management of the debtor's property, and
may for that purpose, if he thinks it advisable, summon meetings
of the persons claiming to be creditors, and shall not, unless
the court otherwise orders, incur any expense beyond such as
is requisite for the protection of the debtor's property or the
disposing of perishable goods.

(3) The Official Receiver shall account to the court and
pay over all moneys and deal with all securities in such manner
is the court from time to time directs.

PART V.

TRUSTEES IN BANKRUPTCY.

Official name.

79. The official name of a trustee in bankruptcy shall be
'the trustee of the property of a bankrupt'





(inserting the name of the bankrupt), and by that name the trustee may hold
property of every description, make contracts, sue and be sued, enter into
any engagements binding on himself and his successors in office, and do all
other acts necessary or expedient to be done in the execution of his office.

Appointment.

80.-(1) The creditors may, if they think fit, appoint more persons than
one to the office of trustee and, when more persons than one are appointed,
shall declare whether any act required or authorized to be done by the
trustee is to be done by all or any one or more of such persons, but all such
persons are in this Ordinance included under the term 'trustee' and shall be
joint tenants of the property of the bankrupt.

(2) The creditors may also appoint persons to act as trustees in
succession in the event of one or more of the persons first named declining
to accept the office of trustee or failing to give security, or of the
appointment of any such person not being approved by the court.

81.-(1) If a vacancy occurs in the office of a trustee the the creditors in
general meeting may appoint a person to fill the vacancy and thereupon the
same proceedings shall be taken as in the case of a first appointment.

(2) The Official Receiver shall, on the requisition of any creditor,
summon a meeting for the purpose of filling any such vacancy.

(3) If the creditors do not within three weeks after the occurrence of a
vacancy appoint a person to fill the vacancy, the Official Receiver shall
report the matter to the court, and the court may appoint a trustee.

(4) During any vacancy in the office of trustee the Official Receiver
shall act as trustee.

Control over trustee.

82.-(1) Subject to the provisions of this Ordinance, the trustee shall, in
the administration of the property of the bankrupt and in the distribution
thereof amongst his creditors, have regard to any directions that may be
given by resolution





of the creditors at any general meeting or by the committee
of inspection, and any directions so given by the creditors at
any general meeting shall, in case of conflict, be deemed to
override any directions given by the committee of inspection.

(2) The trustee may from time to time summon general
meeting of the creditors for the purpose of ascertaining their
wishesm and it shall be his duty to summon meetings at such
times as the creditors, by resolution, either at the meeting
appointing or otherwise may direct, and it shall be
lawful for any creditor, with the concurrence of one-fourth in
value of the ceditors (including himself), at any time to request
the trustee or Official Receiver to call a meeting of the creditors,
and the trustee or Official Receiver shall call such meeting
accordingly within fourteen days:

Provided that the person at whose instance the meeting is
summoned shall, if so required, deposit with the trustee or the
Official Receiver, as the case may be a sum sufficient to pay
the costs of summoning the meeting, such sum to be repaid to
him out of the estate if the court so directs.

(3) The trustee may apply to the court in manndr prescribed
for direbtions in relation to any particular matter arising under
the bankruptcy.

(4) Subject to the provisions of this Ordinance the trustee
shall use his discretion in the management of the estate and
its distribution among the creditors.

83. If the bankrupt or any of the creditors or any other
person is aggrieved by any act or decision of the trustee, he
may apply fo the court, and the court may confirm, reverse or
modify the act or decision complained of and make such order
in the premises as it thinks just.

84.- (1) The court shall take cognizance of the conduct of
trustees, and in the event of any trustee not faithfully perform-
ing his duties and duly observing all the requirements imposed
or, him by Ordinance, rules or otherwise with respect to the
performance of his duties, or in the event of any complaint
being made to the court by any creditor in regard thereto by
notice duly served on the trustee ai least eight clear days before
the date of hearing, the court shall inquire into the matter and
take such action thereon as may be deemed expedient.





(2) The court may either of its own motion or on the
application of the Official Receiver at any time require, any
trustee to answer any inquiry made by it or him in relation to
any bankruptcy in which the trustee is engaged and may examine
on oath the trustee or any other person concerning the bank-
ruptcy.

(3) The court may also direct an investigation to be made
of the books and vouchers of the trustee.

Remuneration and costs.

85.-(1) Where the creditors appoint any person to be
trustee of a debtor's estate his remuneration (if any) shall be in
the nature of a commission or percentage, of which one part
shall be payable on the amount realized by the trustee, after
deducting any sums paid to secured creditors out of the proceeds
of their securities, and the other part on the amount distributed
in dividend. Such percentages shall be as the court may
approve or as may be prescribed.

(2) The remuneration shall cover all expenses except actual
out of pocket expenses properly incurred and no liability shall
attach to the bankrupt's estate or to the creditors in respect of
any other expenses.

(3) Where a trustee acts without remuneration he shall be
allowed out of the bankrupt's estate such proper expenses
incurred by him in or about the proceedings of the bankruptcy
as the court may approve.

(4) A trustee shall not under any circumstances whatever
make any arrangement for or accept from the bankrupt, or any
solicitor, auctioneer or any other person who may be employed
about a bankruptcy, any gift, remuneration or pecuniary or
other consideration or benefit whatever beyond his said
remuneratibn payable out ofthe estate, nor shall he make any
arrangement for giving up, or give up, any part of his
remuneration, Whether as receiver, manager or trustee, to the
bankrupt or any solicitor or other person who may be employed
about a bankruptcy.

86.-(1) Where a trustee or manager receives remuneration
for his services as such, no payment shall be allowed in his





accounts in respect of the performance by any other person of
the ordinary duties which are required by Ordinance or rules
to be performed by himself.

(2) Where the trustee is a solicitor he may contract that
the remuneration for his services as trustee shall include all
professional services.

(3) All bills and charges of solicitors, managers, account-
ants, auctioneers, brokers and other persons, not being trustees,
shall be taxed by the Registrar and no payments in respect
thereof shall be allowed in the trustee's accounts without ' proof
of such taxation having been made. The Registrar shall satisfy
himself before passing such bills and charges that the employ-
ment of such solicitors and other persons, in respect of the
particular matters out of which such charges arise, has been
duly sanctioned. The sanction must be obtained before the
employment, except in cases of urgency, and in such cases it
must be shown that no undue delay took place in obtaining the
sanction.

(4) Every such person shall, on request by the trustee
(which request the trustee shall make a sufficient time before
declaring a dividend), deliver his bill of costs or charges to
the Registrar for taxation, and if he fails to do so within seven
days after receipt of the request or such further time as the
court on application may grant, the trustee shall declare and
distribute the dividend without regard to any claim by him, and
thereupon any such claim shall be forfeited as well against the
trustee personally as against the estate.

Receipts, payinents, accounts, audit.

87. The trustee or Official Receiver shall, whenever required
by any creditor so to do, furnish and transmit to him by post
a list of the creditors showing the amount of the debt due to
each creditor, and shall be entitled to charge for such list the
sum of twenty-five cents per folio of seventy-two words.

88. It shall be lawful for any creditor, with the concurrence
of one-fourth of the creditors (including himself), at any time
to call upon the trustee or Official Receiver to furnish and
transmit to the creditors a statement of the accounts up to the
date of such notice, and the trustee shall upon receipt of such
notice furnish and transmit such statement of the accounts :





Provided that the person at whose instance the accounts
are furnished shall, if so required, deposit with the trustee
or Official Receiver, as the case may be, a sum sufficient to pay
the costs of furnishing and transmitting the accounts, which
sum shall, be repaid to him out of the estate if the court so
directs.

89.-(1) Every trustee in a bankruptcy shall from time to
time, as may be prescribed, and not less than once in every year
during the continuance of the bankruptcy, transmit to the Official
Receiver a statement showing the proceedings in the bankruptcy
up to the date of the statement, containing the prescribed
particulars and made out in the prescribed form.

(2) The Official Receiver shall cause the statements so
transmitted to be examined, and shall call the trustee to account
for any misfeasance, neglect or omission which may appear on
the said statements or in his accounts or otherwise, and may
apply to the court for an order that the trustee do make good
any loss which the estate of the bankrupt may have sustained by
the misfeasance, neglect or omission.

90. No trustee in a bankruptcy or under any composition
or scheme of arrangement shall pay any sums received by him
as trustee into his private banking account or use them other-
wise than in the administration of the estate.

91.-(1) The Official Receiver shall open in his name as
Official Receiver an account at a bank approved by the Governor
and shall pay to the credit thereof all sums received by him as
such Official Receiver or as trustee, and every trustee in a bank-
ruptcy, other than the Official Receiver, receiving money as
such trustee shall open an account at such bank in the name of
the debtor's estate and shall pay to the credit of such account
all sums which may from time to time be received by him as
such trustee.

(2) If a trustee at any time retains for more than ten days
a sum exceeding five hundred dollars, or such other amount as
the court in any particular case may authorize him to retain,
then unless he explains the retention to the satisfaction of the
court, lie shall pay interest on the amount so retained in
excess at the rate of twenty per cent per annum, and shall
have no claim to remuneration, and may be removed from his





office by the court and shall be liable to pay any expenses
occasioned by reason of his default.

(3) Any trustee paying money into his private banking
account or using it otherwise than in the administration of the
estate may without prejudice to any other liability be dismissed
from office without remuneration and may be ordered by the
court to make good all losses and expenses which the creditors
may suffer in consequence of his conduct.

92.-(1) The trustee shall keep a record in writing in which
he shall enter a minute of all proceedings had and resolutions
passed at any meeting of creditors or of the committee of
inspection and a statement of all negotiations and proceedings
necessary to give a correct view of the management of the bank-
rupt's property. Such record if in Chinese shall be supple-
mented by a correct English translation thereof and shall he
produced for inspection to the Official Receiver at any time on
demand.

(2) The trustee shall also keep an account, to be called the
Estate Account, in the form of an ordinary debtor and creditor
account, in which he shall enter from day to day all his receipts
and payments as trustee.

(3) The trustee shall produce at every meeting of creditors
and at every meeting of the committee of inspection the record
and, account above mentioned and also the pass-book of the
estate's bank account, and such documents shall be open to the
inspection of any creditor at all reasonable times.

93.-(1) Every trustee other than the Official Receiver shall,
at such times as may be prescribed but not less than once in
each year during his tenure of office, send to the Official Receiver
an account of his receipts and payments as such trustee.

(2) The account shall be in a prescribed form, shall be made
in duplicate and shall be verified by a statutory declaration in
the prescribed form.

(3) The Official Receiver shall cause the accounts so sent
to be audited, and for the purposes of the audit the trustee shall
furnish the Official, Receiver with such vouchers and information
as he may require, and he may at any time require the production
of and inspect any books or accounts kept by the trustee.





(4) When any such account has been audited it shall he
filed and kept by the Official Receiver and, shall be open on
payment of the prescribed fee to the inspection of any creditor
or of the bankrupt or of any person interested.

(5) The court may if it so desires examine the trustee and,
after hearing the explanation, if any, of the trustee, make such
order as it may think just for compelling, the trustee to make
good any loss to the estate which, after such audit or examina-
tion, may appear to the court to have been occasioned by any
misfeasance, neglect or improper conduct or omission of the
trustee.

Vacation of office by trustee.

94. -(1) When the trustee has realized all the property of
the bankrupt or so much thereof as can, in his opinion, be
realized without needlessly protracting the trusteeship, and
distributed a final dividend, if any, or has ceased to act by reason
of a composition having been approved, or has resigned or has
been removed from his office, he shall apply to the court for
his release, and if all the requirements of the court with respect
to accounts and with respect to any order of the court against
the trustee have been fulfilled, the court may make an order for
release accordingly.

(2) Where the release of a trustee is withheld the court
may, on the application of any creditor or person interested, make
such order as it thinks just, charging the trustee with the
consequences of any act or default he may have done or made
contrary to his duty.

(3) An order of the court releasing the trustee shall dis-
charge him from all liability in respect of any act done or default
made by him in the administration of the affairs of the bankrupt,
or otherwise in relation to his conduct as trustee, but any such
order may be revoked on proof that it was obtained by fraud or
by suppression or concealment of any material fact.

(4) The foregoing provisions of this section shall apply to
the Official Receiver when he is or is acting as trustee, and
when the Official Receiver has been released under this section
or any previous similar enactment he shall continue to act as





trustee for any subsequent purposes of the administration of
the debtor's estate but no liability shall attach to him personally
by reason of his so continuing in respect of any act done, default
made or liability incurred before his release.

(5) Where the trustee has not previously resigned or been
removed, his release shall operate as a removal of him from his
office, and thereupon the Official Receiver shall be the trustee.

(6) Where on the release of a trustee the Official Receiver
is or is acting as trustee, no liability shall attach to him
personally in respect of any act done or default made or liability
incurred by any prior trustee.

95. If a receiving order is made against a trustee he shall
thereby vacate his office of trustee.

96.-(1) The creditors may by ordinary resolution, at a
meeting specially called for that purpose of which seven days'
notice has been given, remove a trustee, other than the official
Receiver, appointed by thern, and may at the same or any
subsequent meeting appoint another person to fill the vacancy
as provided in case of a vacancy in the office of trustee.

(2) If the court is of opinion-

(a) that a trustee appointed by the creditors is guilty of
misconduct or fails to perform his duties under this Ordinance;
or

(b) that his trusteeship is being needlessly protracted with-
out any probable advantage to the creditors; or

(c) that lie is by reason of lunacy or continued sickness or
absence incapable of performing his duties; or

(d) that his connexion with or relation to the bankrupt or
his estate or any particular creditor might rnake it difficult for
him to act with impartiality in the interest of the creditors
generally; or

(e) that the interests.of the creditors require-it,

the court may remove him from his office and appoint another
person in his place.





PART VI.

CONSTITUTION, PROCEDURE AND POWERS OF COURT.

jurisdiction.

97.-(1) Subject to the provisions of this Ordinance, the
court shall have full power to decide all questions of priorities
and all other questions whatsoever, whether of law or fact,
which may arise in any case of bankruptcy coming within the
cognizance of the court or which the court may deem it expedient
or necessary to decide for the purpose of doing complete justice
or making a complete distribution of property in any such case.

(2) If in any proceeding in bankruptcy there arises any
question of fact which either of the parties desires to be tried
before a jury instead of by the court itself or which the court
thinks ought to be tried by a jury, the court may, if it thinks fit,
direct the trial to be had with a jury and the trial may be had
accordingly.

Review and appeals.

98.-(1) The court may review, rescind or vary any order
made by it under its bankruptcy jurisdiction.

(2) Every order of the court shall be subject to appeal to
the Full Court. The appeal shall be commenced within twenty-
one days from the time, when the decision appealed against is
pronounced or made.-

Procedure.

99.-(1) The rules and practice of the Supreme Court for
the time being for regulating the ordinary civil procedure of
the court shall, so far as the same may be applicable and not
inconsistent with the provisions of this Ordinance, be applied
to bankruptcy proceedings, and every order of the court made
in connexion with bankruptcy proceedings may be enforced in
the same way as a judgment of the court made in respect of any
other civil proceedings may be enforced.

(2) The Registrar shall in cases of urgency have power
to make interim orders and to hear and determine unopposed
or ex parte applications and any order so made shall, subject
to an appeal to the court, be deemed to be an orddr of the court.





100.-(1) Subject to the provisions of this Ordinance and
to general rules, the costs of and incidental to any proceeding
in court under this Ordinance shall be in the discretion of the
court : Provided that, where, any. issue is tried by a jury, the
costs shall follow the event unless, upon application made at
the trial, for good cause shown, the judge before whom such
issue is tried otherwise orders.

(2) The court may at any time adjourn any proceedings
before it uponsuch terms, if any, as it may think fit to impose.

(3) The court may at any time amend any written process
or proceeding tinder this Ordinance upon such terms, if any,
as it may think fit to impose.

(4) Where by this Ordinance or by general rules the time
for doing any act or thing is limited, the court may extend the
time either before or after the expiration thereof upon such
terms, if any, as the court may think fit to impose.

(5) Subject to general rules, the court may in any Matter
take the whole or any part of the evidence viva voce or by
interrogatories or upon affidavit or, out of the Colony, by
commission.

101. Where two or more bankruptcy petitions are presented
against the same debtor or against joint debtors the court may
consolidate the proceedings or any of them on such terms as
the court thinks fit.

102. Where the petitioner does not proceed with due
diligence on his petition the court may either dismiss the
petition or substitute as petitioner any other creditor to whom
the debtor may be indebted in the amount required by this
Ordinance in the place of the petitioning creditor.

103. If a debtor by or against whom a bankruptcy petition
has been presented dies, the proceedings in the matter shall,
unless the court otherwise orders, be continued as if he were
alive.

104. The court may at any time, for sufficient reason, make
an order staying the proceedings under a bankruptcy petition,
either altogether or for a limited time, on such terms and subject
to such conditions as the court may think just.





105. Any creditor whose debt is sufficient to entitle him
to present a bankruptcy Petition against all the partners of a
firm may present a petition against any one or more partners
of the firm without including the others.

106. Where there are more respondents than one to a
petition the court may dismiss the petition as to one or more
of them without prejudice to the effect of the petition as against
the other or others of them.

107. Where a member of a partnership is adjudged bank-
rupt the court may authorize the trustee to commence and
prosecute any action in the names of the trustee and of the
bankrupt's partner; and any release by such partner of the debt
or demand to which the action relates shall be void; but notice
of the application for authority to commence the action shall be
given to him, and he may show cause against it, and on his
application the court may, if it thinks fit, direct that he shall
receive his proper share of the proceeds of the action, and if
lie does not claim any benefit therefrom he shall be indemnified
against costs in, respect, thereof as the court directs.

108. Where a bankrupt is a contractor in respect of any
contract jointly with any person or persons, such person or
persons may sue or be sued in respect of the contract without
the joinder of the bankrupt.

109. Any two or more persons, being partners, or any
person carrying on business under a partnership name, may
take proceedings or be proceeded against under this Ordinance
in the name of the firm but in such case the court may, on
application by any person interested, order the names of the
persons who are partners in such firm tor the name of such
person to be disclosed in such manner, and verified on oath nr
otherwise, as the court may direct.

PART VII.

SUPPLEMENTAL PROVISIONS.

Disobedience to order of court.

110. Where default is made by a trustee, debtor or other
person in, obeying any order or direction made or given by the





court under this Ordinance, the court may make an immediate
order for the committal of such trustee, debtor or other person
for contempt of court: Provided that the power given by this
section shall be deemed to be in addition to and not in sub-
stitution for any other right, remedy or liability in respect of
such default.
Application of OrdinanCe.

[s. III, rep. No. 10 of 1936.]

112. A receiving order shall not be made against any
corporation, or against any association or company registered
under the Companies Ordinance, 1932, or any enactment repealed
by that Ordinance, or against any partnership registered under
the Limited Partnerships Ordinance, 1912.

113.-(1) Any creditor of a deceased debtor, whose debt
would have been sufficient to support a bankruptcy petition
against the debtor, had he been alive, may present to the court
a petition in the prescribed forin praying for an order for the
administration in bankruptcy of the estate of the deceased debtor,
according to the law of bankruptcy.

(2) The petition shall be served on the legal personal
representative of the deceased debtor or, if there is none in
the.Colony, on the Official Administrator, and the court may
in the prescribed manner, upon proof of the petitioner's debt,
unless the court is satisfied that there is a reasonabfe probability
that the estate will be sufficient for the payment of the debts
owing by the deceased, make an order for the administration
in bankruptcy of the deceased debtor's estate or may upon cause
shown dismiss the petition with or without costs.

(3) A petition for administration in bankruptcy under this
section shall not be presented to the court after proceedings have
been commenced under the Code of Civil Procedure for the
administration of the deceased debtor's estate but the court may,
when satisfied that the estate is insufficient to pay its debts,
make an order for the administration in bankruptcy of the estate
of the deceased debtor and the like consequences shall ensue as
under an administration order made on the petition of a creditor.

As amended by Law Rev. Ord., 1939, Supp. Sched.





(4) Upon an order being made for the administration in
bankruptcy of a deceased debtor's estate the property of the
debtor shall vest in the Official Receiver as trustee thereof and
he shall forthwith proceed to realize and distribute it in
accordance with the provisions of this Ordinance:

Provided that the creditors shall have the same powers as
to appointment of trustees and committees of inspection as
they have in other cases where the estate of a debtor is being
administered or dealt with in bankruptcy, and the provisions of
this Ordinance relating to trustees and committees of inspection
shall apply to trustees and committees of inspection appointed
under the power so conferred.

If no committee of inspection is appointed any act or thing
or any direction or permission which might have been done or
given by a committee of inspection may be done or given by
the court.

(5) With the modifications hereinafter mentioned, all the
provisions of Part III (relating to the administration of the
property of a bankrupt) and subject to any modification that
may be made therein by general rules under sub-section (10) of
this section, the following provisions, namely section 29 (Which
relates to inquiries as to the debtor's conduct, dealings and
property) and section 86 (which relates to the costs of trustees,
managers and other persons) shall, so far as the same are
applicable, apply to the case of an administration order under
this section in like manner as to an order of adjudication under
this Ordinance, and section 4o shall apply as if for the reference.
to an order of adjudication there were substituted a reference
to in administration order under this section.

(6) In the administration of the property of the deceased
debtor under an order of administration the Official Receiver
or trustee shall have regard to any claim by the legal personal
representative of the deceased debtor to payment of the proper
funeral and testamentary expenses incurred by him in and
about the debtor's estate, and such claims shall be deemed a
preferential debt under the order and shall notwithstanding
anything to the contrary in the provisions of this Ordinance
relating to the priority of other debts, be payable in full out
of the debtor's estate in priority to all other debts.

(7) If on the administration of a deceased debtor's estate





any surplus remains in the hands of the Official Receiver or
trustee, after payment in full of all the debts due from the
debtor together with the costs of the administration and interest
as provided by this Ordinance in case of bankruptcy, such
surplus shall be paid over to the legal personal representative
of the deceased debtor's estate, or failing such representative,
to the Official Administrator.

(8) Service on the legal personal representative of a
deceased debtor or on the Official Administrator of a petition
under this section shall, in the event of an order for administra-
tion being made thereon, be deemed to be equivalent to notice
of an act of bankruptcy, and after such service no payment or
transfer of property made by the legal personal representative
shall operate as a discharge to him as between himself and the
Official Receiver or trustee; save as aforesaid nothing in this
section shall invalidate any payment made or any act or thing
done in good faith by the legal personal representative before
the date of the order for administration.

(9) A petition for the administration of the estate of a
deceased debtor under this section may be presented by the
legal personal representative of the debtor or by the Official
Administrator; and where a petition is so presented by such a
representative or by the Official Administrator this section shall
apply subject to such modifications as may be prescribed by
general rules made under sub-section (10).

(m) General rules for carrying into effect the provisions
of this section may be made in the same manner and to the like
effect and extent as in bankruptcy.

General rules.

114. The Chief justice with the approval of the Legislative
Council may make general rules for carrying into effect the
objects of this Ordinance.

Fees and remuneration.

115.-(1) The Chief justice with the approval of the
Legislative Council may prescribe a scale of fees and percentages
to be charged for or in respect of proceeding under this
Ordinance.





(2) The court may remit the payment of any particular fee
or fees due from any debtor, or any part thereof, either
absolutely or on such terms as it may think fit.

116. All fees and commissions received by or payable to
the Official Receiver on the appointment of a trustee other than
himself or for acting as trustee, and any remuneration received
by the Official Receiver as an interim receiver or otherwise,
shall be paid by such officer forthwith into the Treasury.

Evidence.

117.-(1) A minute of proceedings at a meeting of creditors
under this Ordinance, signed by a person describing himself
as or appearing to be chairman of the meeting, shall be received
in evidence without further proof.

(2) Until the contrary is proved every meeting of creditors
in respect of the proceedings whereof a minute has been so
signed shall be deerned to have been duly convened and held
and all resolutions passed or proceedings had thereat to have
been duly passed or had.

118. Any petition or copy of a petition in bankruptcy, any
order or certificate or copy of an order or certificate made by
the court, any instrument or copy of an instrument, affidavit or
document made or used in the course of any bankruptcy
proceedings or other proceedings had under this Ordinance
shall, if it appears to be sealed with the seal of the court or
purports to be signed by the Registrar, or is certified as a true
copy by the Registrar, be receivable in evidence in all legal
proceedings whatsoever.

119. Subject to general rules,, any affidavit, to be used in
a bankruptcy court may be sworn before any person authorized
to administer oaths, or in the case of a person who is out of
the Colony, before a magistrate or justice of the peace or other
person qualified to administer oaths in the country where he
resides the being certified to be a magistrate or justice of the
peace, or qualified as aforesaid, by a British minister or British
consul or by a notary public).

120. In the case of the death of the debtor or his wife, or
of a witness whose evidence has been received by the court in





any proceeding under this Ordinance, the deposition of the
person so deceased, purporting to be sealed with the seal of
the court, or a copy thereof purporting to be so scaled, shall be
admitted as evidence of the matters therein deposed to.

121. Any statement made by a debtor or creditor in any
bankruptcy to the Official Receiver or trustee through an
interpreter shall be deemed to have been made to the Official
Receiver or trustee as the case may be respectively, and
evidence thereof shall be receivable from the Official Receiver
or trustee, on it being proved either that the interpreter employed
was a sworn interpreter or that fie held the substantive or
acting appointment of interpreter, or of clerk and interpreter,
to the Official Receiver.

122. A certificate of the Official Receiver that a person
has been appointed trustee tinder this Ordinance shall be con-
clusive cv iden'ce of his appointment.

Miscellaneous.

123.-(1), Where by this Ordinance any limited time from
or after any date or event is appointed or allowed for the doing
of any act or the taking of any proceeding, then in the com-
putation of that limited time the same shall be taken as exclusive
of the day of that date or of the happening of that event, and
as commencing at the beginning of the next following day; and
the act or proceeding shall be done or taken at latest on the last
day of that limited time as so computed.

(2) Where the limited time so appointed or allowed is less
than six days, public holidoys and general holidays as defined.
by the Holidays Ordinance, 1912, shall not be reckoned in the
computation of such time.

(3) Where the limited time so appointed or allowed expires
on one of the days in this section specified, the act or proceeding
shall be considered as done or taken in clue time if it is done
or taken on the next day afterwards which is not one of the days
in this section specified.

(4) The provisions of this section shall take effect notwith-
standing anything contained in the, Supreme Court (Vacations)
Ordinance, 1898.





124. All notices and other documents for the service of
which no special mode is directed may be sent by post to the
last known address of the person to be served therewith.

125.(1) No proceeding in bankruptcy shall be invalidated
by any formal defect or by any irregularity unless the court is
of opinion that substantial injustice has been caused by the defect
or irregularity and that thle injustice cannot be remedied by any
order of the court.

(2) No defect or irregularity in the appointment or election
of a receiver, trustee or member of a committee of inspection
shall vitiate any act done by him in good faith.

126. Every deed, conveyance, assignment, surrender or
other assurance relating solely to freehold or leasehold property,
or to any mortgage, charge or other incumbrance on, or any estate,
right or interest in, any real or personal property, which is part
of the estate of any bankrupt, and which, after the execution of
the deed, conveyance, assignment, surrender or other assurance,
either at law or in equity, is or remains the estate of the bank-
rupt or of the trustee under the bankruptcy, and every power
of attorney, proxy paper, writ, order, certificate, affidavit, bond
or other instrument or writing relating solely to the property of
any bankrupt, or to any proceeding under any bankruptcy,
shall be exempt from stamp duty except in respect of fees under
this Ordinance.

127. For all or any of the purposes of this Ordinance a
corporation may act by any of its officers authorized in that
behalf under the seal of the corporation, a firm may act by any
-of its members and a lunatic may act by his committee or citralor
bonis.

[S. 128, rep. Law Revision Ordinance, 1939, Supp. Sched.]

129. Save as provided in this Ordinance, the provisions of
this Ordinance relating to the remedies against the property of
a debtor, the priorities of debts, the effect of a composition or
scheme of arrangement, and the effect of a discharge, shall bind
the Crown.





Unclaimed funds or dividends.

130.-(1) Where the trustee, under any bankruptcy, com-
position or scheme, pursuant to this Ordinance has under his
control any unclaimed dividend which has remained unclaimed
for more than Six months or where, after making a final
dividend, he has in his hands or under his control any unclaimed
or undistributed money arising from the property of the debtor,
he shall forthwith pay it to the Registrar who shall carry the
same to an account to be termed the Bankruptcy Estates Account.
The Registrar's receipt for the money so paid shall be a
sufficient discharge to the trustee in respect thereof.

(2) The trustee, whether he has obtained his release or not,
may be called upon by the court to account for any unclaimed
funds or dividends and any failure to comply with the requisi-
tions of the court in this behalf may be dealt with as a contempt
of court.

(3) Any person claiming to be entitled to any moneys paid
into the Bankruptcy Estates Account under this Ordinance may,
within five years of the date when the same was so paid in,
apply to the Registrar for payment to him of the same, and the
Registrar, if satisfied that the person claiming is entitled, shall
make an order for the payment to such person of the sum due.
Any person dissatisfied with the decision of the Registrar may
appeal to the court.

(4) After any money has remained unclaimed in the Bank-
ruptcy Estates Account for a period of five years, it shall be
dealt with in accordance with the provisions of the Unclaimed
Balances Ordinance, 1929.

PART VIII.

BANKRUPTCY OFFENCES.

131.-(1) Any person who has been adjudged bankrupt or
in respect of whose estate a receiving order has been made shall
in each of the cases following be guilty of a misdemeanor-

(a) if he does not to the best of his knowledge and belief
fully and truly discover to the trusice all his property, real

As amended by Law Rev. Ord., 1939, Supp. Sched.
But Ordinance No. 5 of 1929 (see s. 13 thereof) does not affect any
of the provisions of this Ordinance relating to unclaimed dividends
and funds in bankruptcy proceedings,





and personal, and how and to whom and for what consideration
and when he disposed of any part thereof, except such part as
has been disposed of in the ordinary way of his trade (if any)
or laid out in the ordinary expenses of his family, unless he
proves that he had no intent to defraud;
(b) if he does not deliver up to the trustee, or as he directs,
all such part of his movable or immovable property as is in his
custody or under his control and which he is required by law
to deliver up, unless he proves that he had no intent to defraud;
(c) if he does not deliver up to the trustee, or as he directs,
all books, documents, papers and writings in his custody or
under his control relating to his property or affairs, unless he
proves that he had no intent to defraud;
(d) if, after the presentation of a bankruptcy petition by or
against him, or within twelve months next before such presenta-
tion, he conceals any part of his property to the value of fifty
dollars or upwards or conceals any debt due to or from him,
unless he proves that he had no intent to defraud;
(e) if, after the presentation of a bankruptcy petition by or
against him or within twelve months next before such presenta-
tion, he fraudulently removes any part of his property to the
value of fifty dollars or upwards;
(f) if he makes any material omission or misstatement in
any statement relating to his affairs, unless he proves that he
had no intent to defraud;
(g) if, knowing or having any reason to believe that a
false debt has been proved by any person under the bankruptcy,
he fails for the period of a month to inform the trustee thereof;
(h) if, after the presentation of a bankruptcy petition by
or against him, he prevents or is party or privy to preventing
the production of any book, document, paper or writing affecting.
or relating to his property or affairs, unless he proves that he
had no intent to conceal the state of his affairs or to defeat the
law;
(i) if, after the presentation of a bankruptcy petition by
or against him or within twelve months next before such
presentation, he removes, conceals, destroys, mutilates or
falsifies or is privy to the removal, concealment, destruction,
mutilation or falsification of any book or document affecting or
relating to his property or affairs, unless he proves that he had
no intent to conceal the state of his affairs or to defeat the law;





(i) if, after the presentation of a bankruptcy petition by
or against him or within twelve months next before such
presentation, he makes or is privy to the making of any false
entry in any book or document affecting or relating to his
property or affairs, unless he proves that he had no intent to
conceal the state of his affairs or to defeat the law;

(k) if, after the presentation of a bankruptcy petition by
or against him or within twelve months next before such
presentation, he fraudulently parts with, alters or makes any
omission in, or is privy to the fraudulently parting with,
altering or making any omission in, any document affecting or
relating to his property or affairs;

(l) if, after the presentation of a bankruptcy petition by
or against him or at any meeting of his creditors within twelve
months next before such presentation, he attempts to account
for any part of his property by fictitious losses or expenses;

(m) if, within twelve months next before the presentation
of a bankruptcy petition by, or against him or after the pres-
entation of a bankruptcy petition and before the making of
a receiving order, he by any false representation or other fraud
has obtained any property on credit, and has not paid for the

(n) if, within twelve months next before the presentation
of a bankruptcy petition by or against him or after the
presentation of a bankruptcy petition and before the making of
a receiving order, he obtains under the false pretence of carrying
on business, and if a trader, of dealing in the ordinary way of
his trade, any property on credit and has not paid for the same,
unless he proves that he had no intent to defraud;

(o) if, within twelve months next before the presentation
of a bankruptcy petition by or against him or after the
presentation of a bankruptcy petition and before the making
of a receiving order, he pawns, pledges or disposes of any
property Which he has obtained on credit and has not paid for,
unless, in the case of a trader, such pawning, pledging or
disposing is in the ordinary way of his trade, and unless in any
case he proves that lie had no intent to defraud;

(p) if he is guilty of any false representation or other
fraud for the purpose of obtaining the consent of his creditors





or any of them to an agreement with reference to his affairs
or to his bankruptcy.

(2) A person who has sent out of the Colony any property
which he has obtained on credit and has not paid for shall until
the contrary is proved be deemed to have disposed of the same
otherwise than in the ordinary way of his trade if, such property
not having been paid or accounted for at the date of the receiving
order by the person to whom the same was sent, such last-
mentioned person does not pay or account for the same within
a reasonable time after being called upon to do so by the trustee
or cannot be found within a reasonable time.

(3) In any prosecution under paragraph (i) of sub-section
(i) the absence of any such book or document as is referred to
in the said paragraph shall be prinid facie evidence that such
book or document was removed by the debtor contraty try to the
provisions of the said paragraph or that he was privy to
its removal contrary to those provisions, and thereupon the onus
shall be upon the debtor to prove that he did not so remove such
book or document and that he was not privy to such removal.

(4) In any prosecution under paragrapli (11) of sub-section
(i) the mutilation or falsification of any such book or document
as is referred to the said paragraph shall be Privid facie
evidence that such book or docurnent svas, mutilated or falsified
bv the debtor in contravention of the provisions of the said
paragraph or that he was privy to its mutilation or falsification
Contrary to those provisions, and thereupon the onus shall be
upon the debtor to prove that he did not so mutilate or falsify
the said book or document and that he was not privy to such
mutilation or falsification.

(5) Every person guilty of a misdemeanor in the cases
mentioned respectively in paragraphs (m), (n) and (o) of
sub-section (i) shall upon conviction on indictment be, liable to
imprisonment for any term not exceeding five years or upon
summary conviction to imprisonment for any term not exceeding
one year.

(6) For the purposes of this section, the term 'trustee'
includes the Official Receiver, whether acting as Official Receiver
or as a trustee.





132.-(1) If any manager, accountant or book-keeper in the
employment of the debtor does any act which if committed by
the debtor would be a contravention of any of the provisions of
paragraph (i) or paragraph (j) of sub-section (i) of section 131,
or is privy to any such act whether committed by the debtor or
by any other person, such manager, accountant or book-keeper
shall be deemed to be guilty of a misdemeanor.

(2) Where any person pawns, pledges or disposes of any
property in circumstances which amount to a misdemeanor
under paragraph (o) of sub-section (i) of section 131, every
person who.takes in pawn or pledge or otherwise receives the
property, knowing it to be pawned, pledged or disposed of in
such circumstances as aforesaid, shall be guilty of a misdemeanor
and shall upon conviction on indictment be liable to imprison-
ment for any term not exceeding five years or upon summary
conviction to imprisonment for any term not exceeding one year.

133. Any undischarged bankrupt shall in each of the cases
following be guilty of a misdemeanor-
(1) if either alone or Jointly with any other person he
obtains credit to the extent one, hundred dollars or upwards
from any person without first informing that person that he is
an undischarged: bankrupt; or
(2) if he engages in any trade or business under a name or
names other than that or those under which he was adjudicated
bankrupt and in the course of such trade or business: obtains
credit from any person without first disclosing to such person
the name or names under which he was adjudicated bankrupt; or
(3) if he engages in any trade or business under a name
or names other than that or those under which he was
adjudicated bankrupt without first publishing, once in the
Gazette, and in three successive issues of two local newspapers
one of which shall be Chinese, a notice containing the following
particulars-
(a) the name or names under which he was adjudicated
bankrupt;
(b) the last address at which he carried on any trade or,
business prior to the adjudication;
(c) the name or names under which he intends to carry on
the trade or business;

As amended bv Law Rev. Ord.. 1939. Supp. Sched.





(d) the nature of the trade or business which he intends
to carry on; and

(e) the address or addresses at which he intends to carry
it on.

134. Any person who h as been adjudged, bankrupt or in
respect of whose estate a receiving order has been made shall in
each of the cases following be guilty of a misdemeanor-

(1) if in incurring any debt or liability he has obtained
credit under false pretences or by means of any bther fraud; or

(2) if with intent to defraud his creditors or any of them
he has made or caused to be made any gift or transfer of or
charge on his property; or

(3) if with intent to defraud his creditors he has concealed
or removed any part of his property since or within two months
before the date of any unsatisfied judgment or order for pay-
ment of money obtained against him; or

(4) if with intent to defraud his creditors or any of them
he has caused or connived at the levying of any execution
against his property.

135.-(1) Any person who has been adjudged bankrupt, or
in respect of whose estate a receiving order has been made,
shall be guilty of a misdemeanor if, having been engaged in
any trade or business and having outstanding at the date of
the receiving order any debts contracted in the course and for
the purposes of such trade or business-

(a) he has within two years prior to the presentation of the
bankruptcy petition materially contributed to or increased the
extent of his insolvency by gambling or by rash and hazardous
speculations and such gambling or speculations are unconnected
with his trade or business; or

(b) he has between the date of the presentation of the
petition and the date of the receiving order lost any part of his
estate by such gambling or rash and hazardous speculations as
aforesaid; or
(c) on being required by the Official Receiver at any time,
or in the course of his public examination by the court, to

As amended by Law Rev. Ord., 1939, Supp. Sched,





account for the loss of any substantial part of his estate incurred
within a period of a year next preceding the date of the pres-
entation of the bankruptcy petition or between that date and the
date of the receiving order, he fails to give a satisfactory
explanation of the manner in which such loss was incurred:

Provided that, in determining for the purposes of this
section whether any speculations were rash and hazardous, the
financial position of the accused person at the time when he
entered inte) the speculations shall be taken into consideration.

(2) A prosecution shall not be instituted against any person
under this section except by order of the court.

136.-(1) Any person who has been adJudged bankrupt or
in respect of whose estate a receiving order has been made shall
be guilty, of a misdemeanor if, having been engaged in any trade
or business during any period in the two years immediately
preceding the date of the presentation of the bankruptcy petition,
he has not kept proper books of account throughout that period
and throughout any further period in which he was so engaged
between the date of the presentation of the petition and the date
of the receiving order, or has not preserved all books of account
so kept:

Provided that a person who has not kept or has not
preserved such books of account shall not be convicted of an
Offence under this section-

(a) If his unsecured liabilities at the date of the receiving
order did not exceed, in the case. of a person who hits not on
any previous occasion in this Colony, elsewhere been adjudged
bankrupt or made a composition or arrangement with his
Creditors, five thousand dollars, or in any, other case one
thousand dollars; or

(b) if he proves what in the circunistances in which he
traded or carried on business the omission was honest and

(2) A prosecution shall not be instituted against any person
under this section except by oreler of the court.

As amended by Law Rev. Ord., 1939, Supp. Sched.





(3) For the purposes of this section, a person shall be
deemed not to have kept proper books of account if lie has not
kept such books or accounts as are necessary to exhibit or
explain his transactions and financial position in his trade or
business, including a book or books containing entries from day
to day in sufficient detail of all cash received and cash paid, and
where the trade or business has involved dealings in goods,
statements of annual stocktakings, and (except in the case of
goods sold by way of retail trade to the actual consumer)
accounts of all goods sold and purchased showing the buyers
and sellers thereof in sufficient detail to enable the goods and
the buyers and sellers thereof to be identified. In the case of
books or accounts kept in the Chinese ktinguage a person shall,
for the purposes of this section, be deemed not to have kept
proper books of account if fie has not kept such books or
accounts as may be proved to be usual and necessary, for the
purposes aforesaid, in the particular trade or business carried
on by the debtor.

137. If any person who is adjudged bankrupt, or in
respect of whose estate a receiving order has been made, after
the presentation of a bankruptcy petition by or against him, or
within six months before such presentation, quits the Colony
and takes with him, or makes preparation to quit
the Colony and take with him, any part of his property to the
amount of one hundred dollars or upwards, which ought by law
to be divided amongst his creditors, he shall (unless he proves
that he had no intent to defraud) be guilty of a misdemeanor.

138. If any person against whom a receiving order is made
coliceals himself or absents hirnself from his ustial or last
known place of abode or business or quits the Colony, with
intent to avold service of nny process in bankruptcy or to avoid
examination in respect of his affairs or otherwise to defeat,
embarrass or delay any proceedings against him in bankruptcy,
he shall be guilty of a misdemeanor. A person who, after the
presentation of a bankruptcy petition by or against him or
within three months next before such presentation, conceals or
absents himself as aforesaid or quits the Colony shall until the
contrary is proved be deerned to have concealed or absented
himself or quitted the Colony with such intent as is mentioned
in this section.





139. If any creditor, or any person claiming to be a
creditor, in any bankruptcy proceedings, wilfully and with intent
to defraud makes any false claim, or any proof, declaration or
statement of account which is untrue in any material particular,
he shall be guilty of a misdemeanor.

140. Where the Official Receiver or a trustee in a bank-
ruptcy reports to the court that in his opinion a debtor who has
been adjudged bankrupt or in respect of whose estate a receiving
order has been made has been guilty of any offence under this
Ordinance, or where the court is satisfied upon the representation
of any creditor or member of the committee of inspection that
there is ground to believe that the debtor has been guilty of any
such offence, the court shall, if it appears to the court that there
is a reasonable probability that the debtor will be convicted and
that the circumstances are such as to render a prosecution
desirable, order that the debtor be prosecuted for such offence,
but no such order shall be a condition antecedent to any
prosecution under this Ordinance.

141. Where a debtor has been guilty of any criminal offence
he shall not be exempt from being proceeded against therefor
by reason that he has obtained his discharge or that a com-
position or scheme of arrangement has been accepted or
approved.

142.-(1) A person guilty of an offence declared to be a
misdemeanor under this Ordinance in respect of which no
special penalty is imposed by this Ordinance shall be liable on
conviction on indictment to imprisonment for any term not
exceeding two years or on summary conviction to imprisonment
for any term not exceeding twelve months.

(2) Summary proceedings in respect of any such offence
shall not be instituted after one year from the first discovery
thereof either by the Official Receiver or by the trustee in the
bankruptcy, or in the case of proceedings instituted by a creditor,
by the creditor, nor in any case shall they be instituted after
three years from the commission of the offence.

(3) In an indictment for an offence under this Ordinance it
shall be sufficient to set forth the substance of the offence

As amended by Law Rev. Ord., 1939, Supp. Sched.





charged in the words of this Ordinance specifying the offence,
or as near thereto as circumstances admit, without alleging or
setting forth any debt, act of bankruptcy, trading, adjudication,
or any proceedings in, or order, warrant or document of, the
court acting under this Ordinance.

143. A statement or admission made by any person in any
compulsory examination or deposition before the court on the
hearing of any matter in bankruptcy shall not be admissible as
evidence against that person in any proceeding in respect of any
of the misdemeanors referred to in section 38 of the Larceny
Ordinance, 1935, (which section relates to frauds by agents,
bankers and.factors).

144. Any offence under this Ordinance may be dealt with
summarily by a magistrate.

No. 11 of 1931, incorporated in No. 10 of 1899.

No. 12 of 1931, incorporated in No. 12 of 1923.

No. 13 of 1931, incorporated in No. 1 of 1871.

No. 14 of 1931, repealed by Law Revision
Ordinance, 1939, Supp. Sched.

No. 15 of 1931, repealed by No. 19 of 1932.

No. 16 of 1931, incorporated in No. 6 of 1901.

+ As amended by No. 23 of 1933 [13.10.33].
* As amended by Law Rev. Ord., 1939, Supp. Sched,
[Originally No. 10 of 1931. No. 23 of 1933. No. 10 of 1936. Law Rev. Ord., 1939.] Short title. Interpretation. 4 & 5 Geo. 5, c. 59, s. 167. Acts of bankruptcy. 4 & 5 Geo. 5, c. 59, s. 1. [s. 3 contd.] Rules. Form No. 2. [cf. No. 39 of 1932, ss. 261 (6), 262 (3).] Bankruptcy notices. 4 & 5 Geo. 5, c. 59 s. 2. Rules. Forms Nos. 4, 5. Jurisdiction to make receiving order. 4 & 5 Geo. 5, c. 59, s. 3. Rules. Froms Nos. 25, 26. Conditions on which creditor may petition. 4 & 5 Geo. 5, c 59, s. 4. Rules Form No. 10. Liability of firm to have receiving order made against it. Powers of Official Receiver and duties of debtor on petition being filed. Creditor's petition and order thereon. 4 & 5 Geo. 5, c. 59, s. 5. Rules. Forms Nos. 10, 11, 12. Debtor's petition and order thereon. 4 & 5 Geo. 5, c. 59, s. 6. Rules. Form No. 3. Appearance of Official Receiver on petition. Effect of receiving order. 4 & 5 Geo. 5, c. 59, s. 7. Power to appoint interim receiver. 4 & 5 Geo. 5, c. 59 s. 8. Rules. Form No. 13. Power to stay pending proceedings. 4 & 5 Geo. 5, c. 59, s. 9. Power to appoint special manager. 4 & 5 Geo. 5, c. 59, s. 10. Advertisement of receiving order. 4 & 5 Geo. 5, c. 59, s. 11. Rules. Form, No. 27. First and other meetings of creditors. 4 & 5 Geo. 5, c. 59, s. 13. Rules. Forms Nos. 30, 31, 32, 39, 45. Rules Debtor's statement of affairs. 4 & 5 Geo. 5, c. 59, s. 14. Rules. Form No. 28. Rules. Form No. 75. Public examination of debtor. 4 & 5 Geo. 5, c. 59, s. 15 Rules. Forms Nos. 52 to 63. [See s. 143.] Compositions and schemes of arrangement. 4 & 5 Geo. 5, c. 59, s. 16. [s. 20 contd.] Rules. Forms Nos. 64, 65, 66. Rules. Forms No. 68. [s. 20 contd.] Rules. Form No. 70 Rules. Forms Nos. 72, 72, 98, 101. Effect of composition or scheme. 4 & 5 Geo. 5, c. 59, s. 17. Adjudication of bankruptcy where composition not accepted or not approved. 4 & 5 Geo. 5. C. 59, s. 18. Rules. Forms Nos. 27, 28. Appointment of trustee. 4 & 5 Geo. 5, c. 59, s. 19. Committee of inspection. 4 & 5 Geo. 5, c. 59 s. 20. Power to accept composition or scheme after adjudication. 4 & 5 Geo. 5, c, 59, s. 21. Rules. Forms Nos. 31, 64, 65, 66. Duties of debtor as to discovery and realization of property. 4 & 5 Geo. 5, c. 59, s. 22. Rules. Forms Nos. 99, 102, 104. Arrest of debtor under certain circumstances. 4 & 5 Geo. 5, c. 59, s. 23. Rules. Forms Nos. 109, 110. Re-direction of debtor's telegrams and lettes. 4 & 5 Geo. 5, c. 59, s. 24. Rules. Form No. 111. Inquiry as to debtor's conduct, dealings and property. 4 & 5 Geo. 5, c. 59, s. 25. Rules. Forms Nos. 112 to 116. Discharge of bankrupt. 4 & 5 Geo. 5, c. 59, s. 26. Rules. Forms Nos. 81 to 89. [s. 30 contd.] 16 & 17 Geo. 5, c. 7, s. 1 (1) (a). 16 & 17 Geo. 5, c. 7, s. 1 (1) (b). [s. 30 contd.] [s. 30 contd.] 16 & 17 Geo. 5, c. 7, s. 1 {2). Fraudulent settlements. 4 & 5 Geo. 5, c. 59, s. 27. Effect of order of discharge. 4 & 5 Geo. 5, c. 59, s. 28. Power for court to annual adjudication in certain cases. 4 & 5 Geo. 5, c. 59, s. 29. Description of debts provable in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 30. Mutual credit and set-off. 4 & 5 Geo. 5, c. 59, s. 31. Rules as to proof of debts. 4 & 5 Geo. 5, c. 59, s. 32. Priority of costs and charges. Bankruptcy Rules, 1915, Rule 117 (England). Priority of debts. 4 & 5 Geo. 5, c. 59, s. 33. 16 & 17 Geo. 5, c. 7, s. 2. Rules Form No. 154. Preferential claim in case of apprenticeship. 4 & 5 Geo. 5, c. 59, s. 34. Landlord's power of distress. 4 & 5 Geo. 5, c. 59, s. 35. Ordinance No. 1 of 1883. Postponement of husband's and wife's claims. 4 & 5 Geo. 5, c. 59, s. 36. Relation back of trustee's title. 4 & 5 Geo. 5, c. 59, s. 37. Description of bankrupt's property divisible amongst creditors. 4 & 5 Geo. 5, c. 59, s. 38 (1). Provisions as to second bankruptcy. 16 & 17 Geo. 5, c. 7, s. 3. Restriction of rights of creditor under execution or attachment. 4 & 5 Geo. 5, c. 59, s. 40. Duties of bailiff as to goods taken in execution. 4 & 5 Geo. 5, c. 59, s. 41 (1). [cf. No. 3 of 1901, s. 427A.] Avoidance of certain settlements, 4 & 5 Geo. 5, c. 59 , s. 42. Avoidance of general assignements of book debts unless registered. 4 & 5 Geo. 5, c. 59, s. 43. Avoidance of preference in certain cases. 4 & 5 Geo. 5, c. 59, s. 44. Protection of bona fide transactions without notice. 4 &5 Geo. 5, c. 59, s. 45. Recovery of property transferred without knowledge of receiving order. 16 & 17 Geo. 5, c. 7, s. 4. Validity of certain payments to bankrupt and assignee. 4 & 5 Geo. 5, c. 59 , s. 46. Dealings with undischarged bankrupt. 4 & 5 Geo. 5, c. 59, s. 47. Possession of property by trustee. 4 & 5 Geo. 5, c. 59, s. 48. Rules. Forms Nos. 100, 103. Seizure of property of bankrupt. 4 & 5 Geo. 5, c. 59, s. 49. Rules Form No. 108. Sale of property out of the Colony. Appropriation of portion of pay, etc., to creditors. 4 & 5 Geo. 5, c. 59, s. 51. Rules Forms Nos. 118, 120. Rules. Form No. 121. Apporpriation of income of property restrained from anticipation 4 & 5 Geo. 5, c. 59, s. 52. Rules. Forms Nos. 119, 122. Vesting and transfer of property. 4 & 5 Geo., c. 59, s. 53. Disclaimer of onerous property. 4 & 5 Geo. 5, c. 59, s. 54. [s. 59 contd.] Rules Forms Nos. 123 to 130. [s. 59 contd.] Powers of trustee to deal with property. 4 & 5 Geo. 5, c. 59, s. 55. Ordinance No. 25 of 1923. Powers exercisable by trustee with permission of committee of inspection. 4 & 5 Geo. 5, c. 59, s. 56. Power to allow bankrupt to manage property. 4 & 5 Geo. 5, c. 59, s. 57. Allowance to bankrupt for maintenance or service. 4 & 5 Geo. 5, c. 59, s. 58. Right of trustee to inspect goodss pawned, etc. 4 & 5 Geo. 5, c. 59, s. 59. Limitation of trustee' s poowers in relation to copyright. 4 & 5 Geo. 5, c. 59, s. 60. Protection of Official Receiver and trustee from personal liability in certain cases. 4 & 5 Geo. 5, c. 59, s. 61. Declaration and distribution of dividends. 4 & 5 Geo. 5, c. 59, s. 62. Rules. Forms Nos. 138, 139, 141. Joint and separate dividends. 4 & 5 Geo. 5, c. 59, s. 63. Provision for creditors residing at a distance, etc. 4 & 5 Geo. 5, c. 59, s. 64. Right of creditor who has not proved debt before declaration of a dividend. 4 & 5 Geo. 5, c. 59, s. 65. Interest on debts. 4 & 5 Geo. 5, c. 59, s. 66. Final dividend. 4 & 5 Geo. 5, c. 59, s. 67. No action for dividend. 4 & 5 Geo. 5, c. 59, s. 68. Right of bankrupt to surplus. 4 & 5 Geo. 5, c. 59, s. 69. Appointment of Official Receiver. Status of Official Receiver. 4 & 5 Geo. 5, c. 59, s. 72. Duties of Official Receiver as regards the debtor's conduct. 4 & 5 Geo. 5, c. 59, s. 73. Duties of Official Receiver as to debtor's estate. 4 & 5 Geo. 5, c. 59, s. 74. Ruls. Forms Nos. 50, 51. Rules. Form No. 27. Official name of trustee. 4 & 5 Geo. 5, c. 59, s. 76. Power to appoint joint or successive trustees. 4 &5 Geo. 5, c. 59 s. 77. Proceedings in case of vacancy in office of trustee. 4 & 5 Geo. 5, c. 59, s.78. Discretion ary powers of trustee and control thereof. 4 & 5 Geo. 5, c. 59, s. 79. Rules. Forms Nos. 131, 132. Appeal to court against trustee. 4 & 5 Geo. 5, c. 59, s. 80. Control of court over trustee. 4 & 5 Geo. 5, c. 59, s. 81 Remuneration of trustee. 4 & 5 Geo. 5, c. 59, s. 82. Allowance and taxation. of costs. 4 & 5 Geo. 5, c. 59, s. 83. Trustee to furnish list of creditors. 4 & 5 Geo. 5, c. 59, s. 84. Trustee to furnish statement of accounts. 4 & 5 Geo. 5, c. 59, s. 85. Rules. Form No. 150. Annual statement of proceedings. 4 & 5 Geo. 5, c. 59, s. 87. Rules. Form. No. 146. Trusteee not to pay into private account. 4 & 5 Geo. 5, c. 59, s. 88. Payment of moneys into bank. 4 & 5 Geo. 5, c. 59, s. 89 (5). Record and account to be kept by trustee. Audit of trustee's accounts. 4 & 5 Geo. 5, c. 59, s. 92. Rules. Form. No. 146. Release of trustee. 4 & 5 Geo. 5, c. 59, s. 93. Rules. Forms Nos. 137, 152, 153. Office of trustee vacated by insolvency. 4 & 5 Geo. 5, c. 59, s. 94. Rremoval of trustee. 4 & 5 Geo. 5, c. 59, s. 95. General power of court. 4 & 5 Geo. 5, c. 59, s. 105. Rules. Form No. 133. Review and appeals in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 108. General rules of procedure. Discretionary powers of court. 4 & 5 Geo. 5, c. 59, s. 109. Consolidation of petitions. 4 & 5 Geo. 5, c. 59, s. 110. Power to change carriage of proceedings. 4 & 5 Geo. 5, c. 59, s. 111. Continuance of proceedings on death of debtor. 4 & 5 Geo. 5, c. 59, s. 112. Power to stay proceedings. 4 & 5 Geo. 5, c. 59, s. 113. Power to present petition against one partner. 4 & 5 Geo. 5, c. 59, s. 114. Power to dismiss petition against some respondents only. 4 & 5 Geo. 5, c. 59, s. 115. Actions by trustee and bankrupt's partners. 4 & 5 Geo. 5, c. 59, s. 117. Actions on joint contracts. 4 & 5 Geo. 5, c. 59, s. 118. Proceedings in partnership name. 4 & 5 Geo. 5, c. 59, s. 119. Disobedience to order. of court. 4 & 5 Geo. C. 59, s. 105 (5). Rules. Forms Nos. 98, 101. [20.3.36] Exclusion of corporations, companies and limited partnerships. 4 & 5 Geo. 5, c. 59, s. 126. Ordinances Nos. 39 of 1932, 18 of 1912. Administration in bankruptcy of estate of person dying insolvent. 4 & 5 Geo. 5, c. 59, s. 130. Rules. Form No. 134. Ordinance No. 3 of 1901. [s. 113 contd.] Rules. Form No. 136. Rules. Form No. 135. Power to make general rules. 4 & 5 Geo. 5, c. 59, s. 132 (1). Fees and remuneration. 4 & 5 Geo. 5, c. 59, s. 133 (1). Disposal of Official Receiver's fees. Evidence of proceedings at meetings of creditors. 4 & 5 Geo. 5, c. 59, s. 138. Evidence of proceedings in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 139. Swearing of affidavits. 4 & 5 Geo. 5, c. 59, s. 140. Death of debtor or witness. 4 & 5 Geo. 5, c. 59, s. 141. Statements made to Official Receiver or trustee through an interpreter. Certificate of appointment of trustee. 4 & 5 Geo. 5, c. 59, s. 143. Computation of time. 4 & 5 Geo. 59, s. 145. Ordinance No. 5 of 1912. Ordinance No. 5 of 1898. Service of notices. 4 & 5 Geo. 5, c. 59, s. 146. Formal defect not to invalidate proceedings. 4 & 5 Geo. 5, c. 59, s. 147. Exemption of deeds, etc., from stamp duty. 4 & 5 Geo. 5, c. 59, s. 148. Acting of corporations, partners, etc. 4 & 5 Geo. 5, c. 59, s. 149. Certain provisions to bind Crown. 4 & 5 Geo. 5, c. 59, s. 151. Unclaimed and undistributed dividends or funds. 4 & 5 Geo. 5, c. 59, s. 153 (1). [cf. No. 39 of 1932, s. 271 (2).] Ordinance No. 5 of 1929. Fraudulent debtors. 4 & 5 Geo. 5, c. 59, s. 154. 16 & 17 Geo. 5, c. 7, s. 5. [s. 131 contd.] [s. 131 contd.] [s. 131 contd.] Certain offences by persons other than the debtor. 16 & 17 Geo. 5, c. 7, s. 5 (2). Undischarged bankrupt obtaining credit. 4 & 5 Geo. 5, c. 59, s. 155. Frauds by bankrupts, etc., 4 & 5 Geo. 5, c. 59, s. 156. [cf. No. 32 of 1935, s. 50.] 16 & 17 Geo. 5, c. 7. s. 6. Bankrupt guilty of gambling, etc. 4 & 5 Geo. 5, c. 59, s. 157. Bankrupt failing to keep proper accounts. 4 & 5 Geo. 5, c. 59, s. 158. 16 & 17 Geo. 5, c. 7, s. 7. Bankrupt absconding with property. 4 & 5 Geo. 5, c. 59, s. 159. Debtor concealing himself to avoid service, etc. False claim, etc. 4 & 5 Geo. 5, c. 59, s. 160. Order by court for prosecution on report of trustee. 4 & 5 Geo. 5, c. 59, s. 161. 16 & 17 Geo. 5, c. 7, s. 8. Criminal liability after discharge or composition. 4 & 5 Geo. 5, c. 59, s. 162. Trial and punishment of offences. 4 & 5 Geo. 5, c. 59, s. 164. 16 & 17 Geo. 5, c. 7, s. 10. Evidence as to frauds by agents. 4 & 5 Geo. 5, c. 59, s. 166. Ordinance No 32 of 1935. Summary prosecution. [cf. No. 41 of 1932.] [10.6.32.]

[Originally No. 10 of 1931. No. 23 of 1933. No. 10 of 1936. Law Rev. Ord., 1939.] Short title. Interpretation. 4 & 5 Geo. 5, c. 59, s. 167. Acts of bankruptcy. 4 & 5 Geo. 5, c. 59, s. 1. [s. 3 contd.] Rules. Form No. 2. [cf. No. 39 of 1932, ss. 261 (6), 262 (3).] Bankruptcy notices. 4 & 5 Geo. 5, c. 59 s. 2. Rules. Forms Nos. 4, 5. Jurisdiction to make receiving order. 4 & 5 Geo. 5, c. 59, s. 3. Rules. Froms Nos. 25, 26. Conditions on which creditor may petition. 4 & 5 Geo. 5, c 59, s. 4. Rules Form No. 10. Liability of firm to have receiving order made against it. Powers of Official Receiver and duties of debtor on petition being filed. Creditor's petition and order thereon. 4 & 5 Geo. 5, c. 59, s. 5. Rules. Forms Nos. 10, 11, 12. Debtor's petition and order thereon. 4 & 5 Geo. 5, c. 59, s. 6. Rules. Form No. 3. Appearance of Official Receiver on petition. Effect of receiving order. 4 & 5 Geo. 5, c. 59, s. 7. Power to appoint interim receiver. 4 & 5 Geo. 5, c. 59 s. 8. Rules. Form No. 13. Power to stay pending proceedings. 4 & 5 Geo. 5, c. 59, s. 9. Power to appoint special manager. 4 & 5 Geo. 5, c. 59, s. 10. Advertisement of receiving order. 4 & 5 Geo. 5, c. 59, s. 11. Rules. Form, No. 27. First and other meetings of creditors. 4 & 5 Geo. 5, c. 59, s. 13. Rules. Forms Nos. 30, 31, 32, 39, 45. Rules Debtor's statement of affairs. 4 & 5 Geo. 5, c. 59, s. 14. Rules. Form No. 28. Rules. Form No. 75. Public examination of debtor. 4 & 5 Geo. 5, c. 59, s. 15 Rules. Forms Nos. 52 to 63. [See s. 143.] Compositions and schemes of arrangement. 4 & 5 Geo. 5, c. 59, s. 16. [s. 20 contd.] Rules. Forms Nos. 64, 65, 66. Rules. Forms No. 68. [s. 20 contd.] Rules. Form No. 70 Rules. Forms Nos. 72, 72, 98, 101. Effect of composition or scheme. 4 & 5 Geo. 5, c. 59, s. 17. Adjudication of bankruptcy where composition not accepted or not approved. 4 & 5 Geo. 5. C. 59, s. 18. Rules. Forms Nos. 27, 28. Appointment of trustee. 4 & 5 Geo. 5, c. 59, s. 19. Committee of inspection. 4 & 5 Geo. 5, c. 59 s. 20. Power to accept composition or scheme after adjudication. 4 & 5 Geo. 5, c, 59, s. 21. Rules. Forms Nos. 31, 64, 65, 66. Duties of debtor as to discovery and realization of property. 4 & 5 Geo. 5, c. 59, s. 22. Rules. Forms Nos. 99, 102, 104. Arrest of debtor under certain circumstances. 4 & 5 Geo. 5, c. 59, s. 23. Rules. Forms Nos. 109, 110. Re-direction of debtor's telegrams and lettes. 4 & 5 Geo. 5, c. 59, s. 24. Rules. Form No. 111. Inquiry as to debtor's conduct, dealings and property. 4 & 5 Geo. 5, c. 59, s. 25. Rules. Forms Nos. 112 to 116. Discharge of bankrupt. 4 & 5 Geo. 5, c. 59, s. 26. Rules. Forms Nos. 81 to 89. [s. 30 contd.] 16 & 17 Geo. 5, c. 7, s. 1 (1) (a). 16 & 17 Geo. 5, c. 7, s. 1 (1) (b). [s. 30 contd.] [s. 30 contd.] 16 & 17 Geo. 5, c. 7, s. 1 {2). Fraudulent settlements. 4 & 5 Geo. 5, c. 59, s. 27. Effect of order of discharge. 4 & 5 Geo. 5, c. 59, s. 28. Power for court to annual adjudication in certain cases. 4 & 5 Geo. 5, c. 59, s. 29. Description of debts provable in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 30. Mutual credit and set-off. 4 & 5 Geo. 5, c. 59, s. 31. Rules as to proof of debts. 4 & 5 Geo. 5, c. 59, s. 32. Priority of costs and charges. Bankruptcy Rules, 1915, Rule 117 (England). Priority of debts. 4 & 5 Geo. 5, c. 59, s. 33. 16 & 17 Geo. 5, c. 7, s. 2. Rules Form No. 154. Preferential claim in case of apprenticeship. 4 & 5 Geo. 5, c. 59, s. 34. Landlord's power of distress. 4 & 5 Geo. 5, c. 59, s. 35. Ordinance No. 1 of 1883. Postponement of husband's and wife's claims. 4 & 5 Geo. 5, c. 59, s. 36. Relation back of trustee's title. 4 & 5 Geo. 5, c. 59, s. 37. Description of bankrupt's property divisible amongst creditors. 4 & 5 Geo. 5, c. 59, s. 38 (1). Provisions as to second bankruptcy. 16 & 17 Geo. 5, c. 7, s. 3. Restriction of rights of creditor under execution or attachment. 4 & 5 Geo. 5, c. 59, s. 40. Duties of bailiff as to goods taken in execution. 4 & 5 Geo. 5, c. 59, s. 41 (1). [cf. No. 3 of 1901, s. 427A.] Avoidance of certain settlements, 4 & 5 Geo. 5, c. 59 , s. 42. Avoidance of general assignements of book debts unless registered. 4 & 5 Geo. 5, c. 59, s. 43. Avoidance of preference in certain cases. 4 & 5 Geo. 5, c. 59, s. 44. Protection of bona fide transactions without notice. 4 &5 Geo. 5, c. 59, s. 45. Recovery of property transferred without knowledge of receiving order. 16 & 17 Geo. 5, c. 7, s. 4. Validity of certain payments to bankrupt and assignee. 4 & 5 Geo. 5, c. 59 , s. 46. Dealings with undischarged bankrupt. 4 & 5 Geo. 5, c. 59, s. 47. Possession of property by trustee. 4 & 5 Geo. 5, c. 59, s. 48. Rules. Forms Nos. 100, 103. Seizure of property of bankrupt. 4 & 5 Geo. 5, c. 59, s. 49. Rules Form No. 108. Sale of property out of the Colony. Appropriation of portion of pay, etc., to creditors. 4 & 5 Geo. 5, c. 59, s. 51. Rules Forms Nos. 118, 120. Rules. Form No. 121. Apporpriation of income of property restrained from anticipation 4 & 5 Geo. 5, c. 59, s. 52. Rules. Forms Nos. 119, 122. Vesting and transfer of property. 4 & 5 Geo., c. 59, s. 53. Disclaimer of onerous property. 4 & 5 Geo. 5, c. 59, s. 54. [s. 59 contd.] Rules Forms Nos. 123 to 130. [s. 59 contd.] Powers of trustee to deal with property. 4 & 5 Geo. 5, c. 59, s. 55. Ordinance No. 25 of 1923. Powers exercisable by trustee with permission of committee of inspection. 4 & 5 Geo. 5, c. 59, s. 56. Power to allow bankrupt to manage property. 4 & 5 Geo. 5, c. 59, s. 57. Allowance to bankrupt for maintenance or service. 4 & 5 Geo. 5, c. 59, s. 58. Right of trustee to inspect goodss pawned, etc. 4 & 5 Geo. 5, c. 59, s. 59. Limitation of trustee' s poowers in relation to copyright. 4 & 5 Geo. 5, c. 59, s. 60. Protection of Official Receiver and trustee from personal liability in certain cases. 4 & 5 Geo. 5, c. 59, s. 61. Declaration and distribution of dividends. 4 & 5 Geo. 5, c. 59, s. 62. Rules. Forms Nos. 138, 139, 141. Joint and separate dividends. 4 & 5 Geo. 5, c. 59, s. 63. Provision for creditors residing at a distance, etc. 4 & 5 Geo. 5, c. 59, s. 64. Right of creditor who has not proved debt before declaration of a dividend. 4 & 5 Geo. 5, c. 59, s. 65. Interest on debts. 4 & 5 Geo. 5, c. 59, s. 66. Final dividend. 4 & 5 Geo. 5, c. 59, s. 67. No action for dividend. 4 & 5 Geo. 5, c. 59, s. 68. Right of bankrupt to surplus. 4 & 5 Geo. 5, c. 59, s. 69. Appointment of Official Receiver. Status of Official Receiver. 4 & 5 Geo. 5, c. 59, s. 72. Duties of Official Receiver as regards the debtor's conduct. 4 & 5 Geo. 5, c. 59, s. 73. Duties of Official Receiver as to debtor's estate. 4 & 5 Geo. 5, c. 59, s. 74. Ruls. Forms Nos. 50, 51. Rules. Form No. 27. Official name of trustee. 4 & 5 Geo. 5, c. 59, s. 76. Power to appoint joint or successive trustees. 4 &5 Geo. 5, c. 59 s. 77. Proceedings in case of vacancy in office of trustee. 4 & 5 Geo. 5, c. 59, s.78. Discretion ary powers of trustee and control thereof. 4 & 5 Geo. 5, c. 59, s. 79. Rules. Forms Nos. 131, 132. Appeal to court against trustee. 4 & 5 Geo. 5, c. 59, s. 80. Control of court over trustee. 4 & 5 Geo. 5, c. 59, s. 81 Remuneration of trustee. 4 & 5 Geo. 5, c. 59, s. 82. Allowance and taxation. of costs. 4 & 5 Geo. 5, c. 59, s. 83. Trustee to furnish list of creditors. 4 & 5 Geo. 5, c. 59, s. 84. Trustee to furnish statement of accounts. 4 & 5 Geo. 5, c. 59, s. 85. Rules. Form No. 150. Annual statement of proceedings. 4 & 5 Geo. 5, c. 59, s. 87. Rules. Form. No. 146. Trusteee not to pay into private account. 4 & 5 Geo. 5, c. 59, s. 88. Payment of moneys into bank. 4 & 5 Geo. 5, c. 59, s. 89 (5). Record and account to be kept by trustee. Audit of trustee's accounts. 4 & 5 Geo. 5, c. 59, s. 92. Rules. Form. No. 146. Release of trustee. 4 & 5 Geo. 5, c. 59, s. 93. Rules. Forms Nos. 137, 152, 153. Office of trustee vacated by insolvency. 4 & 5 Geo. 5, c. 59, s. 94. Rremoval of trustee. 4 & 5 Geo. 5, c. 59, s. 95. General power of court. 4 & 5 Geo. 5, c. 59, s. 105. Rules. Form No. 133. Review and appeals in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 108. General rules of procedure. Discretionary powers of court. 4 & 5 Geo. 5, c. 59, s. 109. Consolidation of petitions. 4 & 5 Geo. 5, c. 59, s. 110. Power to change carriage of proceedings. 4 & 5 Geo. 5, c. 59, s. 111. Continuance of proceedings on death of debtor. 4 & 5 Geo. 5, c. 59, s. 112. Power to stay proceedings. 4 & 5 Geo. 5, c. 59, s. 113. Power to present petition against one partner. 4 & 5 Geo. 5, c. 59, s. 114. Power to dismiss petition against some respondents only. 4 & 5 Geo. 5, c. 59, s. 115. Actions by trustee and bankrupt's partners. 4 & 5 Geo. 5, c. 59, s. 117. Actions on joint contracts. 4 & 5 Geo. 5, c. 59, s. 118. Proceedings in partnership name. 4 & 5 Geo. 5, c. 59, s. 119. Disobedience to order. of court. 4 & 5 Geo. C. 59, s. 105 (5). Rules. Forms Nos. 98, 101. [20.3.36] Exclusion of corporations, companies and limited partnerships. 4 & 5 Geo. 5, c. 59, s. 126. Ordinances Nos. 39 of 1932, 18 of 1912. Administration in bankruptcy of estate of person dying insolvent. 4 & 5 Geo. 5, c. 59, s. 130. Rules. Form No. 134. Ordinance No. 3 of 1901. [s. 113 contd.] Rules. Form No. 136. Rules. Form No. 135. Power to make general rules. 4 & 5 Geo. 5, c. 59, s. 132 (1). Fees and remuneration. 4 & 5 Geo. 5, c. 59, s. 133 (1). Disposal of Official Receiver's fees. Evidence of proceedings at meetings of creditors. 4 & 5 Geo. 5, c. 59, s. 138. Evidence of proceedings in bankruptcy. 4 & 5 Geo. 5, c. 59, s. 139. Swearing of affidavits. 4 & 5 Geo. 5, c. 59, s. 140. Death of debtor or witness. 4 & 5 Geo. 5, c. 59, s. 141. Statements made to Official Receiver or trustee through an interpreter. Certificate of appointment of trustee. 4 & 5 Geo. 5, c. 59, s. 143. Computation of time. 4 & 5 Geo. 59, s. 145. Ordinance No. 5 of 1912. Ordinance No. 5 of 1898. Service of notices. 4 & 5 Geo. 5, c. 59, s. 146. Formal defect not to invalidate proceedings. 4 & 5 Geo. 5, c. 59, s. 147. Exemption of deeds, etc., from stamp duty. 4 & 5 Geo. 5, c. 59, s. 148. Acting of corporations, partners, etc. 4 & 5 Geo. 5, c. 59, s. 149. Certain provisions to bind Crown. 4 & 5 Geo. 5, c. 59, s. 151. Unclaimed and undistributed dividends or funds. 4 & 5 Geo. 5, c. 59, s. 153 (1). [cf. No. 39 of 1932, s. 271 (2).] Ordinance No. 5 of 1929. Fraudulent debtors. 4 & 5 Geo. 5, c. 59, s. 154. 16 & 17 Geo. 5, c. 7, s. 5. [s. 131 contd.] [s. 131 contd.] [s. 131 contd.] Certain offences by persons other than the debtor. 16 & 17 Geo. 5, c. 7, s. 5 (2). Undischarged bankrupt obtaining credit. 4 & 5 Geo. 5, c. 59, s. 155. Frauds by bankrupts, etc., 4 & 5 Geo. 5, c. 59, s. 156. [cf. No. 32 of 1935, s. 50.] 16 & 17 Geo. 5, c. 7. s. 6. Bankrupt guilty of gambling, etc. 4 & 5 Geo. 5, c. 59, s. 157. Bankrupt failing to keep proper accounts. 4 & 5 Geo. 5, c. 59, s. 158. 16 & 17 Geo. 5, c. 7, s. 7. Bankrupt absconding with property. 4 & 5 Geo. 5, c. 59, s. 159. Debtor concealing himself to avoid service, etc. False claim, etc. 4 & 5 Geo. 5, c. 59, s. 160. Order by court for prosecution on report of trustee. 4 & 5 Geo. 5, c. 59, s. 161. 16 & 17 Geo. 5, c. 7, s. 8. Criminal liability after discharge or composition. 4 & 5 Geo. 5, c. 59, s. 162. Trial and punishment of offences. 4 & 5 Geo. 5, c. 59, s. 164. 16 & 17 Geo. 5, c. 7, s. 10. Evidence as to frauds by agents. 4 & 5 Geo. 5, c. 59, s. 166. Ordinance No 32 of 1935. Summary prosecution. [cf. No. 41 of 1932.] [10.6.32.]

https://oelawhk.lib.hku.hk/items/show/1627

1937

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No. 10 of 1931

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