BANKRUPTCY ORDINANCE - CHAPTER 6 BANKRUPTCY ORDINANCE - LONG TITLE Long title VerDate:30/06/1997 BANKRUPTCY ORDINANCE* To amend the law relating to bankruptcy. [1 January 1932] (Originally 10 of 1931 (Cap 6, 1950 Ed.)) ___________________________________________________________________________ _______ Note: *This Ordinance was amended by 18 of 2005. The transitional and savings provisions contained in s. 49 of that Amendment Ordinance are reproduced as follows: "49. Transitional and savings provisions (1) Notwithstanding anything contained in this Ordinance, the amendments effected under this Ordinance (except sections 12, 19 and 32) shall not apply to any case in which the bankruptcy petition was presented before the commencement date, and such case shall continue and be disposed of as if this Ordinance had not been enacted. (2) This section is in addition to and not in derogation of section 23 of the Interpretation and General Clauses Ordinance (Cap 1). (3) For the purpose of this section, “#commencement date” (生效日期) means the day appointed by the Secretary for Financial Services and the Treasury under section 1(2) of this Ordinance. # Commencement date: 10 December 2007. BANKRUPTCY ORDINANCE - SECT 1 Short title VerDate:30/06/1997 PART I SHORT TITLE AND INTERPRETATION This Ordinance may be cited as the Bankruptcy Ordinance. BANKRUPTCY ORDINANCE - SECT 2 Interpretation VerDate:10/12/2007 In this Ordinance, unless the context otherwise requires- "affidavit" (誓章) includes statutory declaration, affirmation and attestation on honour; "bailiff" (執達主任) includes any officer charged with the execution of a writ or other process; "bankruptcy debt" (破產債項), in relation to a bankrupt, means- (a) any debt or liability to which he is subject at the commencement of the bankruptcy; and (b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy; (Added 76 of 1996 s. 2) "court" (法院、法庭) means the Court of First Instance sitting in its bankruptcy jurisdiction; (Amended 92 of 1975 s. 59; 25 of 1998 s. 2) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) includes any debt or liability by this Ordinance made provable in bankruptcy; "goods" (貨品) includes all chattels personal; "nominee" (代名人) means the Official Receiver or some person who by reason of his experience and qualifications is, in the opinion of the court, a suitable person to perform the duties of the nominee specified in sections 20A, 20D, 20E and 20G; (Added 76 of 1996 s. 2) "oath" (誓言) includes affirmation, declaration and attestation on honour; "Official Receiver" (破產管理署署長) means the Official Receiver appointed under section 75; (Added 47 of 1984 s. 2) "ordinary resolution" (普通決議) 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; "prescribed" (訂明) means prescribed by general rules within the meaning of this Ordinance; "property" (財產) includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Hong Kong 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; (Amended 47 of 1984 s. 16) "proposal" (建議) means a proposal for a voluntary arrangement made to his creditors by a debtor; (Added 76 of 1996 s. 2) "provisional trustee" (暫行受託人), in relation to a bankrupt, means- (a) where no person is appointed as provisional trustee of the property of the bankrupt under section 12(1A), the Official Receiver; or (b) where any person is appointed as provisional trustee of the property of the bankrupt under section 12(1A), the person; (Added 18 of 2005 s. 2) "Registrar" (司法常務官) means the Registrar of the High Court, and any Senior Deputy Registrar, Deputy Registrar or Assistant Registrar of the High Court; (Replaced 47 of 1984 s. 2. Amended 25 of 1998 s. 2; 10 of 2005 s. 167) "resolution" (決議) means ordinary resolution; "secured creditor" (有抵押債權人) means a person holding a mortgage, 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; "special resolution" (特別決議) 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; "trustee" (受託人) means, subject to section 58(1B), the trustee in bankruptcy of a bankrupt's estate; (Amended 76 of 1996 s. 72; 18 of 2005 s. 2) "voluntary arrangement" (自願安排) means a composition in satisfaction of a debtor's debts or a scheme of arrangement of a debtor's affairs. (Added 76 of 1996 s. 2) (Amended 76 of 1996 s. 2) [cf. 1914 c. 59 s. 167 U.K.] "affidavit" (誓章) "bailiff" (執達主任) "bankruptcy debt" (破產債項) "court" (法院、法庭) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) "goods" (貨品) "nominee" (代名人) "oath" (誓言) "Official Receiver" (破產管理署署長) "ordinary resolution" (普通決議) "prescribed" (訂明) "property" (財產) "proposal" (建議) "provisional trustee" (暫行受託人) "Registrar" (司法常務官) "resolution" (決議) "secured creditor" (有抵押債權人) "special resolution" (特別決議) "trustee" (受託人) "voluntary arrangement" (自願安排) BANKRUPTCY ORDINANCE - SECT 2 Interpretation VerDate:08/07/2005 In this Ordinance, unless the context otherwise requires- "affidavit" (誓章) includes statutory declaration, affirmation and attestation on honour; "bailiff" (執達主任) includes any officer charged with the execution of a writ or other process; "bankruptcy debt" (破產債項), in relation to a bankrupt, means- (a) any debt or liability to which he is subject at the commencement of the bankruptcy; and (b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy; (Added 76 of 1996 s. 2) "court" (法院、法庭) means the Court of First Instance sitting in its bankruptcy jurisdiction; (Amended 92 of 1975 s. 59; 25 of 1998 s. 2) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) includes any debt or liability by this Ordinance made provable in bankruptcy; "goods" (貨品) includes all chattels personal; "nominee" (代名人) means the Official Receiver or some person who by reason of his experience and qualifications is, in the opinion of the court, a suitable person to perform the duties of the nominee specified in sections 20A, 20D, 20E and 20G; (Added 76 of 1996 s. 2) "oath" (誓言) includes affirmation, declaration and attestation on honour; "Official Receiver" (破產管理署署長) means the Official Receiver appointed under section 75; (Added 47 of 1984 s. 2) "ordinary resolution" (普通決議) 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; "prescribed" (訂明) means prescribed by general rules within the meaning of this Ordinance; "property" (財產) includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Hong Kong 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; (Amended 47 of 1984 s. 16) "proposal" (建議) means a proposal for a voluntary arrangement made to his creditors by a debtor; (Added 76 of 1996 s. 2) "Registrar" (司法常務官) means the Registrar of the High Court, and any Senior Deputy Registrar, Deputy Registrar or Assistant Registrar of the High Court; (Replaced 47 of 1984 s. 2. Amended 25 of 1998 s. 2; 10 of 2005 s. 167) "resolution" (決議) means ordinary resolution; "secured creditor" (有抵押債權人) means a person holding a mortgage, 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; "special resolution" (特別決議) 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; "trustee" (受託人) means the trustee in bankruptcy of a bankrupt's estate. (Amended 76 of 1996 s. 72) "voluntary arrangement" (自願安排) means a composition in satisfaction of a debtor's debts or a scheme of arrangement of a debtor's affairs. (Added 76 of 1996 s. 2) (Amended 76 of 1996 s. 2) [cf. 1914 c. 59 s. 167 U.K.] "affidavit" (誓章) "bailiff" (執達主任) "bankruptcy debt" (破產債項) "court" (法院、法庭) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) "goods" (貨品) "nominee" (代名人) "oath" (誓言) "Official Receiver" (破產管理署署長) "ordinary resolution" (普通決議) "prescribed" (訂明) "property" (財產) "proposal" (建議) "Registrar" (司法常務官) "resolution" (決議) "secured creditor" (有抵押債權人) "special resolution" (特別決議) "trustee" (受託人) "voluntary arrangement" (自願安排) BANKRUPTCY ORDINANCE - SECT 2 Interpretation VerDate:01/04/1998 Adaptation amendments retroactively made - see 25 of 1998 s. 2 In this Ordinance, unless the context otherwise requires- "affidavit" (誓章) includes statutory declaration, affirmation and attestation on honour; "bailiff" (執達主任) includes any officer charged with the execution of a writ or other process; "bankruptcy debt" (破產債項), in relation to a bankrupt, means- (a) any debt or liability to which he is subject at the commencement of the bankruptcy; and (b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy; (Added 76 of 1996 s. 2) "court" (法院、法庭) means the Court of First Instance sitting in its bankruptcy jurisdiction; (Amended 92 of 1975 s. 59; 25 of 1998 s. 2) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) includes any debt or liability by this Ordinance made provable in bankruptcy; "goods" (貨品) includes all chattels personal; "nominee" (代名人) means the Official Receiver or some person who by reason of his experience and qualifications is, in the opinion of the court, a suitable person to perform the duties of the nominee specified in sections 20A, 20D, 20E and 20G; (Added 76 of 1996 s. 2) "oath" (誓言) includes affirmation, declaration and attestation on honour; "Official Receiver" (破產管理署署長) means the Official Receiver appointed under section 75; (Added 47 of 1984 s. 2) "ordinary resolution" (普通決議) 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; "prescribed" (訂明) means prescribed by general rules within the meaning of this Ordinance; "property" (財產) includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Hong Kong 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; (Amended 47 of 1984 s. 16) "proposal" (建議) means a proposal for a voluntary arrangement made to his creditors by a debtor; (Added 76 of 1996 s. 2) "Registrar" (司法常務官) means the Registrar of the High Court, and any Deputy or Assistant Registrar of the High Court; (Replaced 47 of 1984 s. 2. Amended 25 of 1998 s. 2) "resolution" (決議) means ordinary resolution; "secured creditor" (有抵押債權人) means a person holding a mortgage, 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; "special resolution" (特別決議) 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; "trustee" (受託人) means the trustee in bankruptcy of a bankrupt's estate. (Amended 76 of 1996 s. 72) "voluntary arrangement" (自願安排) means a composition in satisfaction of a debtor's debts or a scheme of arrangement of a debtor's affairs. (Added 76 of 1996 s. 2) (Amended 76 of 1996 s. 2) [cf. 1914 c. 59 s. 167 U.K.] "affidavit" (誓章) "bailiff" (執達主任) "bankruptcy debt" (破產債項) "court" (法院、法庭) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) "goods" (貨品) "nominee" (代名人) "oath" (誓言) "Official Receiver" (破產管理署署長) "ordinary resolution" (普通決議) "prescribed" (訂明) "property" (財產) "proposal" (建議) "Registrar" (司法常務官) "resolution" (決議) "secured creditor" (有抵押債權人) "special resolution" (特別決議) "trustee" (受託人) "voluntary arrangement" (自願安排) BANKRUPTCY ORDINANCE - SECT 2 Interpretation VerDate:01/07/1997 Adaptation amendments retroactively made - see 25 of 1998 s. 2 In this Ordinance, unless the context other wise requires- "affidavit" (誓章) includes statutory declaration, affirmation and attestation on honour; "available act of bankruptcy" (可用的破產作為) 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; "bailiff" (執達主任) includes any officer charged with the execution of a writ or other process; "court" (法院、法庭) means the Court of First Instance sitting in its bankruptcy jurisdiction; (Amended 92 of 1975 s. 59; 25 of 1998 s. 2) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債 權、可證債項) includes any debt or liability by this Ordinance made provable in bankruptcy; "goods" (貨品) includes all chattels personal; "oath" (誓言) includes affirmation, declaration and attestation on honour; "Official Receiver" (破產管理署署長) means the Official Receiver appointed under section 75; (Added 47 of 1984 s. 2) "ordinary resolution" (普通決議) 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; "prescribed" (訂明) means prescribed by general rules within the meaning of this Ordinance; "property" (財產) includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Hong Kong 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; (Amended 47 of 1984 s. 16) "Registrar" (司法常務官) means the Registrar of the High Court, and any Deputy or Assistant Registrar of the High Court; (Replaced 47 of 1984 s. 2. Amended 25 of 1998 s. 2) "resolution" (決議) means ordinary resolution; "secured creditor" (有抵押債權人) means a person holding a mortgage, 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; "special resolution" (特別決議) 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; "trustee" (受託人) means the trustee in bankruptcy of a debtor's estate. [cf. 1914 c. 59 s. 167 U.K.] "affidavit" (誓章) "available act of bankruptcy" (可用的破產作為) "bailiff" (執達主任) "court" (法院、法庭) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) "goods" (貨品) "oath" (誓言) "Official Receiver" (破產管理署署長) "ordinary resolution" (普通決議) "prescribed" (訂明) "property" (財產) "Registrar" (司法常務官) "resolution" (決議) "secured creditor" (有抵押債權人) "special resolution" (特別決議) "trustee" (受託人) BANKRUPTCY ORDINANCE - SECT 2 Interpretation VerDate:30/06/1997 In this Ordinance, unless the context other wise requires- "affidavit" (誓章) includes statutory declaration, affirmation and attestation on honour; "available act of bankruptcy" (可用的破產作為) 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; "bailiff" (執達主任) includes any officer charged with the execution of a writ or other process; "court" (法院、法庭) means the High Court sitting in its bankruptcy jurisdiction; (Amended 92 of 1975 s.59) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) includes any debt or liability by this Ordinance made provable in bankruptcy; "goods" (貨品) includes all chattels personal; "oath" (誓言) includes affirmation, declaration and attestation on honour; "Official Receiver" (破產管理署署長) means the Official Receiver appointed under section 75; (Added 47 of 1984 s. 2) "ordinary resolution" (普通決議) 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; "prescribed" (訂明) means prescribed by general rules within the meaning of this Ordinance; "property" (財產) includes money, goods, things in action, land and every description of property, whether real or personal and whether situate in Hong Kong 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; (Amended 47 of 1984 s. 16) "Registrar" (司法常務官) means the Registrar of the Supreme Court, and any Deputy or Assistant Registrar of the Supreme Court; (Replaced 47 of 1984 s. 2) "resolution" (決議) means ordinary resolution; "secured creditor" (有抵押債權人) means a person holding a mortgage, 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; "special resolution" (特別決議) 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; "trustee" (受託人) means the trustee in bankruptcy of a debtor's estate. [cf. 1914 c. 59 s. 167 U.K.] "affidavit" (誓章) "available act of bankruptcy" (可用的破產作為) "bailiff" (執達主任) "court" (法院、法庭) "debt provable in bankruptcy" (破產案中可證債權、破產案中可證債項) or "provable debt" (可證債權、 可證債項) "goods" (貨品) "oath" (誓言) "Official Receiver" (破產管理署署長) "ordinary resolution" (普通決議) "prescribed" (訂明) "property" (財產) "Registrar" (司法常務官) "resolution" (決議) "secured creditor" (有抵押債權人) "special resolution" (特別決議) "trustee" (受託人) BANKRUPTCY ORDINANCE - SECT 3 Who may present a bankruptcy petition VerDate:01/04/1998 PART II PROCEEDINGS FROM BANKRUPTCY PETITION TO DISCHARGE (Replaced 76 of 1996 s. 3) (1) A petition for a bankruptcy order to be made against a debtor may be presented to the court- (a) by one of the debtor's creditors or jointly by more than one of them; (b) by the debtor himself; (c) by the nominee of, or any person (other than the debtor) who is for the time being bound by, a voluntary arrangement proposed by the debtor and approved by his creditors; or (d) where a criminal bankruptcy order has been made against the debtor, by the Official Petitioner. (2) Subject to the following provisions of this Part, the court may make a bankruptcy order on any such petition. (Replaced 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 3 Acts of bankruptcy VerDate:30/06/1997 PART II PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE (1) A debtor commits an act of bankruptcy in each of the following cases- (a) if in Hong Kong 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 Hong Kong or elsewhere he makes a fraudulent conveyance, gift, delivery or transfer of his property or of any part thereof; (c) if in Hong Kong 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 Hong Kong, or being out of Hong Kong remains out of Hong Kong, 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 jurisdiction 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 21 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 21 days; (f) if he files in the court a declaration of his inability to pay his debts or presents a bankruptcy petition against himself; (See Form 2) (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 Hong Kong or, by leave of the court, elsewhere, a bankruptcy notice under this Ordinance, and he does not, within 7 days after service of the notice, in case the service is effected in Hong Kong, 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 he could not set up in the action in which the judgment was obtained or the proceedings 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 judgement 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 Ordinance, "a debtor" (債務人), unless the context otherwise requires, includes any person, whether a British subject or not, who at the time when any act of bankruptcy was done or suffered by him- (a) was personally present in Hong Kong; or (b) ordinarily resided or had a place of residence in Hong Kong; or (c) was carrying on business in Hong Kong, personally or by means of an agent or manager; or (d) was a member of a firm or partnership which carried on business in Hong Kong. (Amended 47 of 1984 s. 16) [cf. 1914 c. 59 s. 1 U.K.] "a debtor" (債務人) BANKRUPTCY ORDINANCE - SECT 4 Conditions to be satisfied in respect of debtor VerDate:01/04/1998 (1) A bankruptcy petition shall not be presented to the court under section 3(1)(a) or (b) unless the debtor- (a) is domiciled in Hong Kong; (b) is personally present in Hong Kong on the day on which the petition is presented; or (c) at any time in the period of 3 years ending with that day- (i) has been ordinarily resident, or has had a place of residence, in Hong Kong; or (ii) has carried on business in Hong Kong. (2) The reference in subsection (1)(c) to a debtor carrying on business includes- (a) the carrying on of business by a firm or partnership of which the debtor is a member; and (b) the carrying on of business by an agent or manager for the debtor or for such a firm or partnership. (Replaced 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 4 Bankruptcy notices VerDate:30/06/1997 A bankruptcy notice under this Ordinance shall be issued to a judgement 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: (See Forms 4, 5) 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. [cf. 1914 s. 59 s. 2 U.K.] BANKRUPTCY ORDINANCE - SECT 5 Other preliminary conditions VerDate:01/04/1998 (1) Where a bankruptcy petition relating to a debtor is presented by a person who is entitled to present a petition under 2 or more paragraphs of section 3(1), the petition is to be treated for the purposes of this Part as a petition under whichever of those paragraphs is specified in the petition. (2) A bankruptcy petition shall not be withdrawn without the leave of the court. (3) The court has a general power, if it appears to it appropriate to do so on the grounds that there has been a contravention of rules or for any other reason, to dismiss a bankruptcy petition or to stay such a petition and, where it stays such a petition, it may do so on such terms and conditions as it thinks fit. (4) Without prejudice to subsection (3), where a petition under section 3(1)(a), (b) or (c) in respect of a debtor is pending at a time when a criminal bankruptcy order is made against him, or is presented after such an order has been so made, the court may on the application of the Official Receiver dismiss the petition if it appears to it appropriate to do so. (Replaced 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 5 Jurisdiction to make receiving order VerDate:30/06/1997 Receiving order and Official Receiver Subject to the conditions hereinafter specified, if a debtor commits an act of bankruptcy the court may, on a bankruptcy petition being presented either by a creditor or by the debtor, make an order, in this Ordinance called a receiving order, for the protection of the estate. (See Forms 25, 26) [cf. 1914 c.59 s.3 U.K.] BANKRUPTCY ORDINANCE - SECT 6 Grounds of creditor's petition VerDate:01/04/1998 (1) A creditor's petition must be in respect of one or more debts owed by the debtor, and the petitioning creditor or each of the petitioning creditors must be a person to whom the debt or (as the case may be) at least one of the debts is owed. (2) Subject to sections 6A to 6C, a creditor's petition may be presented to the court in respect of a debt or debts if, but only if, at the time the petition is presented- <* Note - Exp. X-Ref.: Sections 6A, 6B, 6C *> (a) the amount of the debt, or the aggregate amount of the debts, is equal to or exceeds $10000 or a prescribed amount; (b) the debt, or each of the debts, is for a liquidated sum payable to the petitioning creditor, or one or more of the petitioning creditors, either immediately or at some certain, future time, and is unsecured; (c) the debt, or each of the debts, is a debt which the debtor appears either to be unable to pay or to have no reasonable prospect of being able to pay; and (d) there is no outstanding application to set aside a statutory demand served under section 6A in respect of the debt or any of the debts. (3) A debt is not to be regarded for the purposes of subsection (2) as a debt for a liquidated sum by reason only that the amount of the debt is specified in a criminal bankruptcy order. (4) Notwithstanding subsection (2)(c) and (d), a creditor's petition may be presented if there are reasonable grounds for believing that the debtor intends to depart, or has departed, from Hong Kong and the debtor knows or ought reasonably to know that his departure would result in defeat or delay for his creditors, and this subsection applies irrespective of the reason for his departure. (5) The Financial Secretary may, by regulation, prescribe an amount greater than $10000 for the purposes of subsection (2)(a). (Replaced 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 6 Conditions on which creditor may petition VerDate:30/06/1997 (1) Subject to the provisions of section 7, a creditor shall not be entitled to present a bankruptcy petition against a debtor unless- (See Form 10) (a) the debt owing by the debtor to the petitioning creditor, or if 2 or more creditors join in the petition, the aggregate amount of debts owing to the several petitioning creditors, amounts to more than $5000; and (Amended 65 of 1976 s. 2) (b) the debt is a liquidated sum, payable either immediately or at some certain future time; and (c) the act of bankruptcy on which the petition is grounded has occurred within 3 months before the presentation of the petition; and (d) the debtor is domiciled in Hong Kong, 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 Hong Kong, or has carried on business in Hong Kong, 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 Hong Kong by means of a partner or partners or an agent or manager. (Amended 47 of 1984 s.16) (2) If the petitioning creditor is a secured 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 extent of 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. [cf. 1914 c.59 s.4 U.K.] BANKRUPTCY ORDINANCE - SECT 6A Definition of "inability to pay", etc.; the statutory demand VerDate:01/04/1998 (1) For the purposes of section 6(2)(c), the debtor appears to be unable to pay a debt if, but only if, the debt is payable immediately and either- (a) the petitioning creditor to whom the debt is owed has served on the debtor a demand (known as "the statutory demand") in the prescribed form requiring him to pay the debt or to secure or compound for it to the satisfaction of the creditor, at least 3 weeks have elapsed since the demand was served and the demand has been neither complied with nor set aside in accordance with the rules; or (b) execution or other process issued in respect of the debt on a judgment or order of any court in favour of the petitioning creditor, or one or more of the petitioning creditors to whom the debt is owed, has been returned unsatisfied in whole or in part. (2) For the purposes of section 6(2)(c) the debtor appears to have no reasonable prospect of being able to pay a debt if, but only if, the debt is not immediately payable and- (a) the petitioning creditor to whom it is owed has served on the debtor a demand (also known as "the statutory demand") in the prescribed form requiring him to establish to the satisfaction of the creditor that there is a reasonable prospect that the debtor will be able to pay the debt when it falls due; (b) at least 3 weeks have elapsed since the demand was served; and (c) the demand has been neither complied with nor set aside in accordance with the rules. (Added 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 6B Creditor with security VerDate:01/04/1998 (1) A debt which is the debt, or one of the debts, in respect of which a creditor's petition is presented need not be unsecured if either- (a) the petition contains a statement by the person having the right to enforce the security that he is willing, in the event of a bankruptcy order being made, to give up his security for the benefit of all the bankrupt's creditors; or (b) the petition is expressed not to be made in respect of the secured part of the debt and contains a statement by that person of the estimated value at the date of the petition of the security for the secured part of the debt. (2) In a case falling within subsection (1)(b) the secured and unsecured parts of the debt are to be treated for the purposes of sections 6 to 6C as separate debts. <* Note - Exp. X-Ref.: Sections 6, 6A, 6B, 6C *> (Added 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 6C Expedited petition VerDate:01/04/1998 In the case of a creditor's petition presented wholly or partly in respect of a debt which is the subject of a statutory demand under section 6A, the petition may be presented before the end of the 3-week period there mentioned if there is a serious possibility that the debtor's property or the value of any of his property will be significantly diminished during that period and the petition contains a statement to that effect. (Added 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 6D Proceedings on creditor's petition VerDate:01/04/1998 (1) The court shall not make a bankruptcy order on a creditor's petition unless it is satisfied that the debt, or one of the debts, in respect of which the petition was presented is either- (a) a debt which, having been payable at the date of the petition or having since become payable, has been neither paid nor secured nor compounded for; or (b) a debt which the debtor has no reasonable prospect of being able to pay when it falls due. (2) In a case in which the petition contains such a statement as is required by section 6C, the court shall not make a bankruptcy order until at least 3 weeks have elapsed since the service of any statutory demand under section 6A. (3) The court may dismiss the petition if it is satisfied that the debtor is able to pay all his debts or is satisfied- (a) that the debtor has made an offer to secure or compound for a debt in respect of which the petition is presented; (b) that the acceptance of that offer would have required the dismissal of the petition; and (c) that the offer has been unreasonably refused, and, in determining for the purposes of this subsection whether the debtor is able to pay all his debts, the court shall take into account his contingent and prospective liabilities. (4) In determining for the purposes of this section what constitutes a reasonable prospect that a debtor will be able to pay a debt when it falls due, it is to be assumed that the prospect given by the facts and other matters known to the creditor at the time he entered into the transaction resulting in the debt was a reasonable prospect. (5) Nothing in sections 6 to 6C or this section prejudices the power of the court, in accordance with the rules, to authorize a creditor's petition to be amended by the omission of any creditor or debt and to be proceeded with as if things done for the purposes of those sections had been done only by or in relation to the remaining creditors or debts. <* Note - Exp. X-Ref.: Sections 6, 6A, 6B, 6C *> (Added 76 of 1996 s. 4) BANKRUPTCY ORDINANCE - SECT 7 Liability of firm to have bankruptcy order made against it VerDate:01/04/1998 (1) The following provisions shall have effect in the case of a firm carrying on business in Hong Kong- (a) (Repealed 76 of 1996 s. 5) (b) it shall be sufficient that a bankruptcy order against the firm be made in the firm name, without mentioning the names of the partners, and such bankruptcy order shall affect the joint and separate property of all the partners; (Amended 76 of 1996 s. 5) (c) the right of a creditor to present a bankruptcy petition against the firm, and the jurisdiction of the court to make a bankruptcy order 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 resident or domiciled in Hong Kong. (Amended 76 of 1996 s. 5) (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 Hong Kong in a name or style other than his own name. (3) A creditor may present a petition for a bankruptcy order against a firm in the same way as he may present such a petition against a debtor provided that the conditions set out in sections 4(1)(c)(ii), 5, 6, 6A and 6B are met in respect of the firm. (Added 76 of 1996 s. 5) (Amended 47 of 1984 s. 16) BANKRUPTCY ORDINANCE - SECT 7 Liability of firm to have receiving order made against it VerDate:30/06/1997 (1) The following provisions shall have effect in the case of a firm carrying on business in Hong Kong- (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 shall 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 Hong Kong. (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 Hong Kong in a name or style other than his own name. (Amended 47 of 1984 s.16) BANKRUPTCY ORDINANCE - SECT 8 Powers of Official Receiver and duties of debtor on petition being filed VerDate:30/06/1997 (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 such 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 connection therewith, or authorizes or permits any such obstruction, the debtor shall be liable on summary conviction to imprisonment for any term not exceeding 6 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. BANKRUPTCY ORDINANCE - SECT 9 Creditor's petition and order thereon VerDate:01/04/1998 (1) A creditor's petition shall be verified by affidavit of the creditor or of some person on his behalf having knowledge of the facts, and shall be served in the prescribed manner. (Amended 39 of 1987 s. 2) (2) At the hearing the court shall require proof of the debt of the petitioning creditor and of the service of the petition, and, if satisfied with the proof, may make a bankruptcy order in pursuance of the petition. (Amended 76 of 1996 s. 6) (3) If the court is not satisfied with the proof of the petitioning creditor's debt or of the service of the petition, or is satisfied by the debtor that he is able to pay his debts or has a reasonable prospect of being able to pay them, or considers that for other sufficient cause no order ought to be made, the court may dismiss the petition. (Amended 45 of 1986 s.2; 76 of 1996 s. 6) (4) (Repealed 76 of 1996 s. 6) (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 the 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 it thinks just, make a bankruptcy 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. (Amended 76 of 1996 s. 6) (7) (Repealed 76 of 1996 s. 6) [cf. 1914 c. 59 s. 5 U.K.] BANKRUPTCY ORDINANCE - SECT 9 Creditor's petition and order thereon VerDate:30/06/1997 (1) A creditor's petition shall be verified by affidavit of the creditor or of some person on his behalf having knowledge of the facts, and shall be served in the prescribed manner. (See Forms 10, 10A, 11, 12) (Amended 39 of 1987 s. 2) (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 considers that for other sufficient cause no order ought to be made, the court may dismiss the petition. (Amended 45 of 1986 s.2) (4) When the act of bankruptcy relied on is non-compliance 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 the 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 the 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 it 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 not after presentment be withdrawn without the leave of the court. [cf. 1914 c. 59 s. 5 U.K.] BANKRUPTCY ORDINANCE - SECT 10 Grounds of debtor's petition VerDate:01/04/1998 (1) A debtor's petition may be presented to the court only on the ground that the debtor is unable to pay his debts. (2) The petition shall be accompanied by a statement of the debtor's affairs containing- (a) such particulars of the debtor's creditors and of his debts and other liabilities and of his assets as may be prescribed; and (b) such other information as may be prescribed. (3) A debtor's petition may be presented whether or not the aggregate amount of indebtedness is equal to or exceeds the amount provided for a creditor's petition under section 6(2)(a). (Replaced 76 of 1996 s. 7) BANKRUPTCY ORDINANCE - SECT 10 Debtor's petition and order thereon VerDate:30/06/1997 (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 declaration of inability to pay his debts, and the court shall thereupon make a receiving order: (See Form 3) Provided that the court in its discretion may refuse the order if it considers that there is sufficient cause for no order to be made. (Replaced 45 of 1986 s. 3) In this subsection "sufficient cause" (充分因由) 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 connection with the business. (2) A debtor's petition shall not after presentment be withdrawn without the leave of the court. [cf. 1914 c. 59 s. 6 U.K.] "sufficient cause" (充分因由) BANKRUPTCY ORDINANCE - SECT 11 Appearance of Official Receiver on petition VerDate:01/04/1998 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 bankruptcy order. (Amended 76 of 1996 s. 73) BANKRUPTCY ORDINANCE - SECT 11 Appearance of Official Receiver on petition VerDate:30/06/1997 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. BANKRUPTCY ORDINANCE - SECT 12 Effect of bankruptcy order VerDate:10/12/2007 (1) On the making of a bankruptcy order, the Official Receiver shall thereby become the provisional trustee of the property of the bankrupt, and thereafter, except as directed by this Ordinance, no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the bankrupt in respect of the debt, nor shall proceed with or commence any action or other legal proceedings, unless with the leave of the court and on such terms as the court may impose. (Amended 76 of 1996 ss. 8 and 72; 18 of 2005 s. 3) (1A) In the case of a debtor's petition, the Official Receiver as the provisional trustee may at any time appoint any person to act as the provisional trustee of the property of the bankrupt in his place if he considers that— (a) the value of the property of the bankrupt is unlikely to exceed $200000; and (b) the person has the qualifications prescribed in Schedule 3. (Added 18 of 2005 s. 3) (1B) The power of the Official Receiver to appoint a person as provisional trustee includes power to appoint 2 or more persons as joint provisional trustees; but such an appointment must make provision as to the circumstances in which the provisional trustees must act together and the circumstances in which one or more of them may act for the others. (Added 18 of 2005 s. 3) (1C) The Secretary for Financial Services and the Treasury may, by notice published in the Gazette, amend Schedule 3. (Added 18 of 2005 s. 3) (2) This section shall not affect the power of any secured creditor to realize or otherwise deal with his security. [cf. 1914 c. 59 s. 7 U.K.] BANKRUPTCY ORDINANCE - SECT 12 Effect of bankruptcy order VerDate:01/04/1998 (1) On the making of a bankruptcy order the Official Receiver shall be thereby constituted receiver of the property of the bankrupt, and thereafter, except as directed by this Ordinance, no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the bankrupt in respect of the debt, nor shall proceed with or commence any action or other legal proceedings, unless with the leave of the court and on such terms as the court may impose. (Amended 76 of 1996 ss. 8 and 72) (2) This section shall not affect the power of any secured creditor to realize or otherwise deal with his security. [cf. 1914 c. 59 s. 7 U.K.] BANKRUPTCY ORDINANCE - SECT 12 Effect of receiving order VerDate:30/06/1997 (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. [cf. 1914 c.59 s.7 U.K.] BANKRUPTCY ORDINANCE - SECT 13 Power to appoint interim trustee VerDate:10/12/2007 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 bankruptcy order is made, appoint the Official Receiver to be interim trustee of the property of the debtor or of any part thereof, and direct him to take immediate possession thereof or of any part thereof. (Amended 76 of 1996 s. 9; 18 of 2005 s. 4) [cf. 1914 c. 59 s. 8 U.K.] BANKRUPTCY ORDINANCE - SECT 13 Power to appoint interim receiver VerDate:01/04/1998 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 bankruptcy 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. (Amended 76 of 1996 s. 9) [cf. 1914 c. 59 s. 8 U.K.] BANKRUPTCY ORDINANCE - SECT 13 Power to appoint interim receiver VerDate:30/06/1997 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. (See Form 13) [cf. 1914 c.59 s. 8 U.K.] BANKRUPTCY ORDINANCE - SECT 14 Power to stay pending proceedings VerDate:30/06/1997 (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 makes an order staying any action or proceedings 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 subsection (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. [cf. 1914 c. 59 s. 9 U.K.] BANKRUPTCY ORDINANCE - SECT 15 Power to appoint special manager VerDate:10/12/2007 (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, who shall have such powers (including any of the powers of a receiver) as may be entrusted to him by the Official Receiver. (Amended 18 of 2005 s. 5) (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 fixed by the court. (Amended 76 of 1996 s. 10) (4) The term of office of the special manager shall last until— (a) in a case where a provisional trustee is appointed under section 12(1A), the appointment; or (b) in any other case, a trustee is appointed or constituted under section 17, 100D(1), 112(4) or 112A(1)(i) or paragraph 6 of Part II of Schedule 1. (Added 18 of 2005 s. 5) [cf. 1914 c. 59 s. 10 U.K.] BANKRUPTCY ORDINANCE - SECT 15 Power to appoint special manager VerDate:01/04/1998 (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 fixed by the court. (Amended 76 of 1996 s. 10) [cf. 1914 c. 59 s. 10 U.K.] BANKRUPTCY ORDINANCE - SECT 15 Power to appoint special manager VerDate:30/06/1997 (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. [cf. 1914 c. 59 s. 10 U.K.] BANKRUPTCY ORDINANCE - SECT 16 Advertisement of bankruptcy order VerDate:01/04/1998 Notice of every bankruptcy order, stating the name, address and description of the debtor, the date of the order, and the date of the petition, shall be gazetted by the Official Receiver. (Amended 76 of 1996 s. 73) [cf. 1914 c. 59 s. 11 U.K.] BANKRUPTCY ORDINANCE - SECT 16 Advertisement of receiving order VerDate:30/06/1997 Notice of every receiving order, stating the name, address and description of the debtor, the date of the order, and the date of the petition, shall be gazetted by the Official Receiver. (See Form 27) [cf. 1914 c.59 s.11 U.K.] BANKRUPTCY ORDINANCE - SECT 17 Power to make appointment of trustees VerDate:01/04/1998 Proceedings consequent on order (1) The power to appoint some fit person as trustee (whether the first such trustee or a trustee appointed to fill any vacancy) is exercisable, except at a time when an order for the summary administration of the bankrupt's estate is in force, by a general meeting of the bankrupt's creditors. (2) Any power to appoint a person as trustee includes power to appoint 2 or more persons as joint trustees; but such an appointment must make provision as to the circumstances in which the trustees must act together and the circumstances in which one or more of them may act for the others. (3) The appointment of any person as trustee takes effect at the time specified in the creditors' resolution or the court order, as the case may be, appointing him. (4) This section is without prejudice to the provisions of this Ordinance under which the Official Receiver is, in certain circumstances, to be trustee. (Replaced 76 of 1996 s. 11) BANKRUPTCY ORDINANCE - SECT 17 First and other meetings of creditors VerDate:30/06/1997 Proceedings consequent on order (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. (See Forms 30, 31, 32, 39 45) (2) The Chief Justice may, with the approval of Legislative Council, make rules providing for the summoning of and proceedings at the first and other meetings of creditors. (Replaced 33 of 1939; G.N. 840 of 1940 Supp. Schedule) [cf. 1914 c.59 s.13 U.K.] BANKRUPTCY ORDINANCE - SECT 17A Summoning of meeting to appoint first trustee VerDate:10/12/2007 (1) Where a bankruptcy order has been made and no order for the summary administration of the bankrupt's estate has been made, it is the duty of the provisional trustee, as soon as practicable in the period of 12 weeks beginning with the day on which the order was made, to decide whether to summon a general meeting of the bankrupt's creditors for the purpose of appointing a trustee under section 17. (2) This section does not apply where a criminal bankruptcy order was made and it is subject to the provision made in section 17B(3). (3) Subject to section 17B, if the provisional trustee decides not to summon such a meeting, he shall, before the end of the period of 12 weeks referred to in subsection (1), give notice of his decision to the court and to every creditor of the bankrupt who is known to the provisional trustee or is identified in the bankrupt's statement of affairs. (4) On the date of the giving to the court of a notice under subsection (3) the provisional trustee is the trustee. (Added 76 of 1996 s. 11. Amended 18 of 2005 s. 6) BANKRUPTCY ORDINANCE - SECT 17A Summoning of meeting to appoint first trustee VerDate:01/04/1998 (1) Where a bankruptcy order has been made and no order for the summary administration of the bankrupt's estate has been made, it is the duty of the Official Receiver, as soon as practicable in the period of 12 weeks beginning with the day on which the order was made, to decide whether to summon a general meeting of the bankrupt's creditors for the purpose of appointing a trustee. (2) This section does not apply where a criminal bankruptcy order was made and it is subject to the provision made in section 17B(3). (3) Subject to section 17B, if the Official Receiver decides not to summon such a meeting, he shall, before the end of the period of 12 weeks referred to in subsection (1), give notice of his decision to the court and to every creditor of the bankrupt who is known to the Official Receiver or is identified in the bankrupt's statement of affairs. (4) On the date of the giving to the court of a notice under subsection (3) the Official Receiver is the trustee. (Added 76 of 1996 s. 11) BANKRUPTCY ORDINANCE - SECT 17B Power of creditors to requisition meeting VerDate:10/12/2007 (1) Where in the case of any bankruptcy, the provisional trustee has not yet summoned, or has decided not to summon, a general meeting of the bankrupt's creditors for the purpose of appointing a trustee under section 17, any creditor of the bankrupt may request the provisional trustee to summon such a meeting for that purpose. (2) If such a request appears to the provisional trustee to be made with the concurrence of not less than 1/4 in value of the bankrupt's creditors (including the creditor making the request), it is the duty of the provisional trustee to summon the requested meeting. (3) Where subsection (2) applies, the provisional trustee is required neither to reach a decision for the purposes of section 17A nor (if he has reached one) to serve any notice under section 17A(3). (Added 76 of 1996 s. 11. Amended 18 of 2005 s. 7) BANKRUPTCY ORDINANCE - SECT 17B Power of creditors to requisition meeting VerDate:01/04/1998 (1) Where in the case of any bankruptcy, the Official Receiver has not yet summoned, or has decided not to summon, a general meeting of the bankrupt's creditors for the purpose of appointing the trustee, any creditor of the bankrupt may request the Official Receiver to summon such a meeting for that purpose. (2) If such a request appears to the Official Receiver to be made with the concurrence of not less than 1/4 in value of the bankrupt's creditors (including the creditor making the request), it is the duty of the Official Receiver to summon the requested meeting. (3) Where subsection (2) applies, the Official Receiver is required neither to reach a decision for the purposes of section 17A nor (if he has reached one) to serve any notice under section 17A(3). (Added 76 of 1996 s. 11) BANKRUPTCY ORDINANCE - SECT 18 Statement of affairs VerDate:10/12/2007 (1) Where a bankruptcy order has been made otherwise than on a debtor's petition, the bankrupt shall submit a statement of his affairs, which shall be verified by affidavit, to the trustee not more than 21 days after the day the order was made. (2) The statement of affairs shall contain- (a) such particulars of the bankrupt's creditors and of his debts and other liabilities and of his assets as may be prescribed; and (b) such other information as may be prescribed. (3) The trustee may, if he thinks fit- (Amended 18 of 2005 s. 8) (a) release the bankrupt from his duty under subsection (1); or (b) extend the period specified in that subsection, and, where the trustee has refused to exercise a power conferred by this section, the court may, if it thinks fit, exercise it. (4) A bankrupt who, without reasonable excuse- (a) fails to comply with the obligation imposed by this section; or (b) submits a statement of affairs that does not comply with the prescribed requirements, is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which he may be subject). (5) 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 untruthfully so stating himself to be a creditor is guilty of a contempt of court and liable to be punished accordingly on the application of the trustee. (Replaced 76 of 1996 s. 12. Amended 18 of 2005 s. 8) BANKRUPTCY ORDINANCE - SECT 18 Statement of affairs VerDate:01/04/1998 (1) Where a bankruptcy order has been made otherwise than on a debtor's petition, the bankrupt shall submit a statement of his affairs, which shall be verified by affidavit, to the Official Receiver not more than 21 days after the day the order was made. (2) The statement of affairs shall contain- (a) such particulars of the bankrupt's creditors and of his debts and other liabilities and of his assets as may be prescribed; and (b) such other information as may be prescribed. (3) The Official Receiver may, if he thinks fit- (a) release the bankrupt from his duty under subsection (1); or (b) extend the period specified in that subsection, and, where the Official Receiver has refused to exercise a power conferred by this section, the court may, if it thinks fit, exercise it. (4) A bankrupt who, without reasonable excuse- (a) fails to comply with the obligation imposed by this section; or (b) submits a statement of affairs that does not comply with the prescribed requirements, is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which he may be subject). (5) 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 untruthfully so stating himself to be a creditor is guilty of a contempt of court and liable to be punished accordingly on the application of the trustee or Official Receiver. (Replaced 76 of 1996 s. 12) BANKRUPTCY ORDINANCE - SECT 18 Debtor's statement of affairs VerDate:30/06/1997 (1) Where a receiving order is made against a debtor, he shall, unless the court otherwise orders, 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, addresses and occupations of his creditors, whether in Hong Kong 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. (See Form 28) (Amended 65 of 1976 s.3; 47 of 1984 ss.3 & 16) (2) The statement shall be so submitted within the following times, namely- (a) if the order is made on the petition of the debtor, within 3 days from the date of the order; (b) if the order is made on the petition of a creditor, within 7 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 him bankrupt. (See Form 75) (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 untruthfully 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. [cf. 1914 c. 59 s. 14 U.K.] BANKRUPTCY ORDINANCE - SECT 19 Public examination of bankrupt VerDate:10/12/2007 Public examination of debtor (1) Where a bankruptcy order has been made, the Official Receiver or the trustee may at any time before the discharge of the bankrupt apply to the court for the public examination of the bankrupt. (Amended 18 of 2005 s. 9) (2) Unless the court otherwise orders, the trustee shall make an application under subsection (1) if notice requiring him to do so is given to him, in accordance with the rules, by one of the bankrupt's creditors with the concurrence of not less than 1/4 in value of such creditors (including the creditor giving notice). (Amended 18 of 2005 s. 9) (3) Where one of the bankrupt's creditors, without the requisite concurrence under subsection (2), so requests, the trustee shall make an application under subsection (1) but, notwithstanding subsection (4), the court may decline to direct that a public examination of the bankrupt be held. (Amended 18 of 2005 s. 9) (4) On an application under subsection (1), the court shall direct that a public examination of the bankrupt shall be held on a day appointed by the court; and the bankrupt shall attend on that day and be publicly examined as to his affairs, dealings and property. (4A) The trustee may, before or at any time after making an application under subsection (1), in writing request the creditor at whose instance the application is made to deposit with him within the specified time such sum or further sum as he considers necessary to pay his costs and expenses in holding the public examination. (Added 18 of 2005 s. 9) (4B) Notwithstanding anything in subsections (2) and (3), the trustee may refuse to make an application under subsection (1) or discontinue the public examination concerned if the creditor to whom a request is made under subsection (4A) fails to comply with the request. (Added 18 of 2005 s. 9) (5) The following may take part in the public examination of the bankrupt and may question him concerning his affairs, dealings and property and the causes of his failure- (a) the Official Receiver and, in the case of a debtor adjudged bankrupt on a petition under section 3(1)(d), the Official Petitioner; (b) the trustee; (Amended 18 of 2005 s. 9) (c) any person who has been appointed as special manager of the bankrupt's estate or business; (d) any creditor of the bankrupt who has tendered a proof in the bankruptcy. (6) The bankrupt may, but not at the expense of the estate, employ a solicitor with or without counsel, who may put to him such questions as the court may allow for the purpose of enabling him to explain or qualify any answer given by him, and may make representations on his behalf. (7) There shall be made in writing such record of the examination as the court thinks proper and the record shall be read over either to or by the bankrupt, signed by him, and verified by affidavit at a venue fixed by the court. (8) (Repealed 18 of 2005 s. 9) (9) It shall be the duty of a bankrupt examined under this section to answer all questions that the court may put or allow to be put to him. (10) Evidence given on oath under this section shall not be admissible in criminal proceedings other than for perjury by the person who gave it. (Replaced 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 19 Public examination of bankrupt VerDate:01/04/1998 Public examination of debtor (1) Where a bankruptcy order has been made, the Official Receiver may at any time before the discharge of the bankrupt apply to the court for the public examination of the bankrupt. (2) Unless the court otherwise orders, the Official Receiver shall make an application under subsection (1) if notice requiring him to do so is given to him, in accordance with the rules, by one of the bankrupt's creditors with the concurrence of not less than 1/4 in value of such creditors (including the creditor giving notice). (3) Where one of the bankrupt's creditors, without the requisite concurrence under subsection (2), so requests, the Official Receiver shall make an application under subsection (1) but, notwithstanding subsection (4), the court may decline to direct that a public examination of the bankrupt be held. (4) On an application under subsection (1), the court shall direct that a public examination of the bankrupt shall be held on a day appointed by the court; and the bankrupt shall attend on that day and be publicly examined as to his affairs, dealings and property. (5) The following may take part in the public examination of the bankrupt and may question him concerning his affairs, dealings and property and the causes of his failure- (a) the Official Receiver and, in the case of a debtor adjudged bankrupt on a petition under section 3(1)(d), the Official Petitioner; (b) the trustee, if his appointment has taken effect; (c) any person who has been appointed as special manager of the bankrupt's estate or business; (d) any creditor of the bankrupt who has tendered a proof in the bankruptcy. (6) The bankrupt may, but not at the expense of the estate, employ a solicitor with or without counsel, who may put to him such questions as the court may allow for the purpose of enabling him to explain or qualify any answer given by him, and may make representations on his behalf. (7) There shall be made in writing such record of the examination as the court thinks proper and the record shall be read over either to or by the bankrupt, signed by him, and verified by affidavit at a venue fixed by the court. (8) Where the Official Receiver, after a public examination is held, is of the opinion that the application for the holding of the public examination was frivolous or vexatious, he may apply to the court for an order that the creditors who required the public examination to be held pay, on a pro rata basis based on value of debts, the costs incurred by the Official Receiver in holding it and the court may, if it agrees, assess the costs incurred and make an order for the pro rata payment of such costs. (9) It shall be the duty of a bankrupt examined under this section to answer all questions that the court may put or allow to be put to him. (10) Evidence given on oath under this section shall not be admissible in criminal proceedings other than for perjury by the person who gave it. (Replaced 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 19 Public examination of debtor VerDate:30/06/1997 Public examination of debtor (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. (See Forms 52 to 63) (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 be 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 debtor and 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 declare 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 Hong Kong, the court may make an order dispensing 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. (Amended 47 of 1984 s.16) [cf. 1914 c. 59 s. 15 U.K.] BANKRUPTCY ORDINANCE - SECT 19A (Repealed 76 of 1996 s. 13) VerDate:01/04/1998 BANKRUPTCY ORDINANCE - SECT 19A Power of court to dispense with public examination of debtor on application of Official Receiver VerDate:30/06/1997 (1) Notwithstanding section 19 the court may, on the application of the Official Receiver, make an order dispensing with the public examination of the debtor. (2) Before making an application under subsection (1) the Official Receiver shall- (a) publish notice of his intention to make the application in the Gazette; and (b) give notice of his intention to make the application to every creditor who has tendered a proof. (3) Any creditor who has tendered a proof and wishes to oppose the making of an order under subsection (1) shall, within 21 days after the date of publication of a notice pursuant to subsection (2), give notice in writing to the Official Receiver of his intention to oppose the making of an order and may thereafter appear and oppose the making of an order. (4) Before making an order under subsection (1) the court shall consider a report of the Official Receiver made in the manner prescribed. (Added 1 of 1976 s.2) BANKRUPTCY ORDINANCE - SECT 20 Interim order VerDate:01/04/1998 Voluntary arrangements (1) In the circumstances specified in section 20A, the court may make an interim order under this section. (2) An interim order has the effect that, during the period for which it is in force- (a) no bankruptcy petition relating to the debtor may be presented or proceeded with; and (b) no other proceedings, no execution or other legal process and no distress may be commenced or continued against the debtor or his property except with the leave of the court. (Replaced 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20 Compositions and schemes of arrangement VerDate:30/06/1997 Compositions and schemes of arrangement (1) Where a debtor intends to make a proposal for a composition in satisfaction of his debts or a proposal for a scheme of arrangement of his affairs, he shall, within 4 days of submitting his statement of affairs or within such time thereafter 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 Receiver shall hold a meeting of creditors before the public examination of the debtor is concluded, and send to each creditor before the meeting a copy of the debtor's proposal with a report thereon; 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. (See Forms 64, 65, 66) (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. (See Form 68) (6) The application shall not be heard until after the public examination of the debtor has been concluded, or dispensed with under section 19A. 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. (Amended 1 of 1976 s.3) (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 examination by illness or absence from Hong Kong but one at least of such joint debtors shall be publicly examined. (Amended 47 of 1984 s.16) (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 or 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, the court shall refuse to approve the proposal. (10) 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 he adjudged bankrupt, the court shall refuse to approve the proposal unless it provides reasonable security for the payment of not less than 25 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. (See Form 70) (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. (See Forms 72, 73, 98, 101) (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 subsection, 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" (破 產、破產案), "bankrupt" (破產人) and "order of adjudication" (判決令) 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 subsection (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. [cf. 1914 c. 59 s. 16 U.K.] "bankruptcy" (破產、破產案), "bankrupt" (破產人) and "order of adjudication" (判決令) BANKRUPTCY ORDINANCE - SECT 20A Application for interim order VerDate:01/04/1998 (1) Application to the court for an interim order may be made where the debtor intends to make a proposal. (2) The proposal must provide for a nominee to act in relation to the voluntary arrangement either as trustee or otherwise for the purpose of supervising its implementation. (3) The application may be made- (a) if the debtor is an undischarged bankrupt, by the debtor, the trustee or the Official Receiver; and (b) in any other case, by the debtor. (4) An application shall not be made by an undischarged bankrupt unless he has given notice of the proposal to- (a) the Official Receiver; and (b) the trustee, if any. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20B Effect of application VerDate:01/04/1998 (1) At any time when an application under section 20A for an interim order is pending the court may stay any action, execution or other legal process against the property or person of the debtor. (2) Any court in which proceedings are pending against a debtor may, on proof that an application under that section has been made in respect of that debtor, either stay the proceedings or allow them to continue on such terms as it thinks fit. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20C Cases in which interim order can be made VerDate:01/04/1998 (1) The court shall not make an interim order on an application under section 20A unless it is satisfied- (a) that the debtor intends to make a proposal; (b) that on the day of the making of the application the debtor was an undischarged bankrupt or was able to petition for his own bankruptcy; and (c) that no previous application has been made by the debtor for an interim order in the period of 12 months ending with that day. (2) The court may make an order if it thinks that it would be appropriate to do so for the purpose of facilitating the consideration and implementation of the debtor's proposal. (3) Where the debtor is an undischarged bankrupt, the interim order may contain provision as to the conduct of the bankruptcy, and the administration of the bankrupt's estate, during the period for which the order is in force. (4) Subject to subsections (5) and (6), the provision contained in an interim order by virtue of subsection (3) may include provision staying proceedings in the bankruptcy or modifying any provision of this Ordinance or the rules in their application to the debtor's bankruptcy. (5) An interim order shall not, in relation to a bankrupt, make provision relaxing or removing any of the requirements of this Ordinance or the rules, unless the court is satisfied that that provision is unlikely to result in any significant diminution in, or in the value of, the debtor's estate for the purposes of the bankruptcy. (6) Subject to sections 20A to 20L, an interim order made on an application under section 20A ceases to have effect at the end of the period of 14 days beginning with the day after the making of the order. <* Note - Exp. X-Ref.: Sections 20A, 20B, 20C, 20D, 20E, 20F, 20G, 20H, 20I, 20J, 20K, 20L *> (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20D Nominee's report on debtor's proposal VerDate:01/04/1998 (1) Where an interim order has been made on an application under section 20A, the nominee shall, before the order ceases to have effect, submit a report to the court stating- (a) whether, in his opinion, a meeting of the debtor's creditors should be summoned to consider the debtor's proposal; and (b) if in his opinion such a meeting should be summoned, the date on which, and time and place at which, he proposes the meeting should be held. (2) For the purpose of enabling the nominee to prepare his report the debtor shall submit to the nominee- (a) a document setting out the terms of the voluntary arrangement which the debtor is proposing; and (b) a statement of his affairs containing- (i) such particulars of his creditors and of his debts and other liabilities and of his assets as may be prescribed; and (ii) such other information as may be prescribed. (3) The court may, on an application made by the debtor or the nominee in a case where the nominee has failed to submit the report required by this section, direct that the interim order shall continue, or (if it has ceased to have effect) be renewed, for such further period as the court may specify in the direction. (4) If the court is satisfied on receiving the nominee's report that a meeting of the debtor's creditors would be summoned to consider the debtor's proposal, the court shall direct that the period for which the interim order has effect shall be extended, for such further period as it may specify in the direction, for the purpose of enabling the debtor's proposal to be considered by his creditors. (5) The court may discharge the interim order if it is satisfied, on the application of the nominee- (a) that the debtor has failed to comply with his obligations under subsection (2); or (b) that for any other reason it would be inappropriate for a meeting of the debtor's creditors to be summoned to consider the debtor's proposal. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20E Summoning of creditors' meeting VerDate:01/04/1998 (1) Where it has been reported to the court under section 20D that a meeting of the debtor's creditors should be summoned, the nominee shall, unless the court otherwise directs, summon that meeting for the time, date and place proposed in his report. (2) The persons to be summoned to the meeting are every creditor of the debtor of whose claim and address the person summoning the meeting is aware. (3) For this purpose the creditors of a debtor who is an undischarged bankrupt include- (a) every person who is a creditor of the bankrupt in respect of a bankruptcy debt; and (b) every person who would be such a creditor if the bankruptcy had commenced on the day on which notice of the meeting is given. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20F Decisions of creditors' meeting VerDate:01/04/1998 (1) A creditors' meeting summoned under section 20E shall decide whether to approve the proposed voluntary arrangement. (2) The meeting may approve the proposed voluntary arrangement with modifications, but shall not do so unless the debtor consents to each modification. (3) The meeting shall not approve any proposal or modification which affects the right of a secured creditor of the debtor to enforce his security, except with the concurrence of the creditor concerned. (4) The meeting shall not approve any proposal or modification under which- (a) any debt of the debtor that is given priority under section 38 is to be paid otherwise than in priority to such of his debts as are not given such priority; or (b) a creditor of the debtor in respect of a debt that is given priority under section 38 is to be paid an amount that is less than he would be entitled to under the provisions of that section, except with the concurrence of the creditor concerned. (5) The meeting shall be conducted in accordance with the rules. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20G Report of decisions to court VerDate:01/04/1998 (1) After the conclusion in accordance with the rules of the meeting summoned under section 20E, the nominee shall report the result of the meeting to the court and, immediately after so reporting, shall give notice of the result of the meeting to such persons as may be prescribed. (2) If the report is that the meeting has declined (with or without modifications) to approve the debtor's proposal, the court may discharge any interim order which is in force in relation to the debtor. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20H Effect of approval VerDate:01/04/1998 (1) Where the meeting summoned under section 20E approves the proposed voluntary arrangement (with or without modifications)- (a) the approved arrangement- (i) takes effect as if made by the debtor at the meeting; and (ii) binds every person who in accordance with the rules had notice of, and was entitled to vote at, the meeting (whether or not he was present or represented at it) as if he were a party to the arrangement; and (b) any interim order in force in relation to the debtor immediately before the end of the period of 28 days beginning with the day on which the report with respect to the creditors' meeting was made to the court under section 20G ceases to have effect at the end of that period. (2) Subsection (1)(b) applies except to such extend as the court may direct for the purposes of any application under section 20J. (3) Where proceedings on a bankruptcy petition have been stayed by an interim order which ceases to have effect under subsection (1)(b), that petition is deemed, unless the court otherwise orders, to have been dismissed. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20I Effect where debtor an undischarged bankrupt VerDate:01/04/1998 (1) Where the creditors' meeting summoned under section 20E approves the proposed voluntary arrangement (with or without modifications) and the debtor is an undischarged bankrupt, the court may- (a) annul the bankruptcy order by which he was adjudged bankrupt; or (b) give such directions with respect to the conduct of the bankruptcy and the administration of the bankrupt's estate as it thinks appropriate for facilitating the implementation of the approved voluntary arrangement. (2) The court shall not annul a bankruptcy order under subsection (1)- (a) at any time before the end of the period of 28 days beginning with the day on which the report of the creditors' meeting was made to the court under section 20G; or (b) at any time when an application under section 20J, or an appeal in respect of such an application, is pending or at any time in the period within which such an appeal may be brought. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20J Challenge of meeting's decision VerDate:01/04/1998 (1) Subject to this section, an application to the court may be made, by any of the persons specified in subsection (2), on one or both of the following grounds- (a) that a voluntary arrangement approved by a creditors' meeting summoned under section 20E unfairly prejudices the interests of a creditor of the debtor; (b) that there has been some material irregularity at or in relation to such a meeting. (2) The persons who may apply under this section are- (a) the debtor; (b) a person entitled, in accordance with the rules, to vote at the creditors' meeting; (c) the nominee (or his replacement under section 20K(3)); and (d) if the debtor is an undischarged bankrupt, the trustee or the Official Receiver. (3) An application under this section shall not be made after the end of the period of 28 days beginning with the day on which the report of the creditors' meeting was made to the court under section 20G. (4) Where on an application under this section the court is satisfied as to either of the grounds mentioned in subsection (1), it may do one or both of the following- (a) revoke or suspend any approval given by the meeting; (b) give a direction to any person for the summoning of a further meeting of the debtor's creditors to consider any revised proposal he may make or, in a case falling within subsection (1)(b), to reconsider his original proposal. (5) Where at any time after giving a direction under subsection (4)(b) for the summoning of a meeting to consider a revised proposal the court is satisfied that the debtor does not intend to submit such a proposal, the court shall revoke the direction and revoke or suspend any approval given at the previous meeting. (6) Where the court gives a direction under subsection (4)(b), it may also give a direction continuing or, as the case may require, renewing, for such period as may be specified in the direction, the effect in relation to the debtor of any interim order. (7) In any case where the court, on an application made under this section with respect to a creditors' meeting, gives a direction under subsection (4)(b) or revokes or suspends an approval under subsection (4)(a) or (5), the court may give such supplemental directions as it thinks fit and, in particular, directions with respect to- (a) things done since the meeting under any voluntary arrangement approved by the meeting; and (b) such things done since the meeting as could not have been done if an interim order had been in force in relation to the debtor when they were done. (8) Except in pursuance of the preceding provisions of this section, an approval given at a creditors' meeting summoned under section 20E is not invalidated by any irregularity at or in relation to the meeting. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20K Implementation and supervision of approved voluntary arrangement VerDate:01/04/1998 (1) Where a voluntary arrangement approved by a creditors' meeting summoned under section 20E has taken effect and the debtor, any of his creditors or any other interested person is dissatisfied by any act, omission or decision of the nominee, he may apply to the court; and on such an application the court may- (a) confirm, reverse or modify any act or decision of the nominee; (b) give him directions; or (c) make such other order as it thinks fit. (2) The nominee may apply to the court for directions in relation to any particular matter arising under the voluntary arrangement. (3) The court may, whenever- (a) it is expedient to appoint a person to carry out the functions of the nominee; and (b) it is inexpedient, difficult or impracticable for an appointment to be made without the assistance of the court, make an order appointing a person who is experienced in insolvency matters, either in substitution for the existing nominee or to fill a vacancy. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 20L Default in connection with voluntary arrangement VerDate:01/04/1998 (1) The court shall not make a bankruptcy order on a petition under section 3(1)(c) (nominee of, or person bound by, voluntary arrangement proposed and approved) unless it is satisfied- (a) that the debtor has failed to comply with his obligations under the voluntary arrangement; or (b) that information which was false or misleading in any material particular or which contained material omissions- (i) was contained in any statement of affairs or other document supplied by the debtor under sections 20 to 20K to any person; or <* Note - Exp. X-Ref.: Sections 20, 20A, 20B, 20C, 20D, 20E, 20F, 20G, 20H, 20I, 20J, 20K *> (ii) was otherwise made available by the debtor to his creditors at or in connection with a meeting summoned under those sections; or (c) that the debtor has failed to do all such things as may for the purposes of the voluntary arrangement have been reasonably required of him by the nominee of the arrangement. (2) Where a bankruptcy order is made on a petition under section 3(1)(c), any expenses properly incurred as expenses of the administration of the voluntary arrangement in question shall be a first charge on the bankrupt's estate. (Added 76 of 1996 s. 13) BANKRUPTCY ORDINANCE - SECT 21 (Repealed 76 of 1996 s. 13) VerDate:01/04/1998 BANKRUPTCY ORDINANCE - SECT 21 Effect of composition or scheme VerDate:30/06/1997 Notwithstanding the acceptance and approval of a composition 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. [cf. 1914 c.59 s.17 U.K.] BANKRUPTCY ORDINANCE - SECT 22 (Repealed 76 of 1996 s. 13) VerDate:01/04/1998 BANKRUPTCY ORDINANCE - SECT 22 Adjudication of bankruptcy where composition not accepted or not approved VerDate:30/06/1997 Adjudication of bankruptcy (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 14 days 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 2 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. (See Form 27) (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. (See From 78) [cf. 1914 c. 59 s. 18 U.K.] BANKRUPTCY ORDINANCE - SECT 23 Provisions where person other than Official Receiver is appointed trustee VerDate:10/12/2007 (1) Where in a bankruptcy a person other than the Official Receiver is appointed trustee, that person- (a) shall not be capable of acting as trustee until he has notified his appointment to the Official Receiver and given security as provided in subsection (2)(a) to the satisfaction of the Official Receiver; (b) shall give the Official Receiver such information and such access to and facilities for inspecting the books and documents of the bankrupt, and generally such aid as may be requisite for enabling the Official Receiver to perform his duties under this Ordinance. (Amended 18 of 2005 s. 10) (2) In the case of a trustee other than the Official Receiver, the following provisions as to security shall have effect, namely- (a) the security shall be given to the Official Receiver in such manner as he may from time to time direct; (b) it shall not be necessary that security shall be given in each separate bankruptcy; but security may be given either specially in a particular bankruptcy, or generally, to be available for any bankruptcy in which the person giving security may be appointed, as trustee; (c) the Official Receiver shall fix the amount and nature of such security, and may from time to time, as he thinks fit, either increase or diminish the amount of special or general security which any person has given; (d) the cost of furnishing the required security by a trustee, including any premiums which he may pay to a guarantee society, shall be borne by him personally, and shall not be charged against the assets of the estate as an expense incurred in the bankruptcy. (Replaced 76 of 1996 s. 14) BANKRUPTCY ORDINANCE - SECT 23 Provisions where person other than Official Receiver is appointed trustee VerDate:01/04/1998 (1) Where in a bankruptcy a person other than the Official Receiver is appointed trustee, that person- (a) shall not be capable of acting as trustee until he has notified his appointment to the Official Receiver and given security as provided in subsection (2)(a) to the satisfaction of the Official Receiver; (b) shall give the Official Receiver such information and such access to and facilities for inspecting the books and documents of the bankrupt, and generally such aid as may be requisite for enabling that officer to perform his duties under this Ordinance. (2) In the case of a trustee other than the Official Receiver, the following provisions as to security shall have effect, namely- (a) the security shall be given to the Official Receiver in such manner as he may from time to time direct; (b) it shall not be necessary that security shall be given in each separate bankruptcy; but security may be given either specially in a particular bankruptcy, or generally, to be available for any bankruptcy in which the person giving security may be appointed, as trustee; (c) the Official Receiver shall fix the amount and nature of such security, and may from time to time, as he thinks fit, either increase or diminish the amount of special or general security which any person has given; (d) the cost of furnishing the required security by a trustee, including any premiums which he may pay to a guarantee society, shall be borne by him personally, and shall not be charged against the assets of the estate as an expense incurred in the bankruptcy. (Replaced 76 of 1996 s. 14) BANKRUPTCY ORDINANCE - SECT 23 Appointment of trustee VerDate:30/06/1997 (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 appointed 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 connection 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 not 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. [cf. 1914 c.59 s. 19 U.K.] BANKRUPTCY ORDINANCE - SECT 24 Creditors' committee VerDate:01/04/1998 (1) The creditors qualified to vote may at their first or any subsequent meeting, by resolution, appoint a creditors' committee to act with the trustee. (2)-(9) (Repealed 76 of 1996 s. 15) (10) If there be no creditors' committee 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. (Amended 76 of 1996 s. 15) [cf. 1914 c. 59 s. 20 U.K.] BANKRUPTCY ORDINANCE - SECT 24 Committee of inspection VerDate:30/06/1997 (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 2 or more persons, possessing one or other of the following qualifications- (Amended 1 of 1976 s.4) (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 appointment, 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 5 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 7 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: (Amended 47 of 1984 s.4) Provided that if the trustee is of the opinion that it is unneces- sary for the vacancy to be filled he may apply to the court and the court may make an order that the vacancy shall not be filled, or shall not be filled except in such circumstances as may be specified in the order. (Added 47 of 1984 s.4) (9) The continuing members of the committee, provided there be not less than 2 such continuing members, may act notwithstanding any vacancy in their body. (Replaced 1 of 1976 s.4) (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. [cf. 1914 c.59 s.20 U.K.] BANKRUPTCY ORDINANCE - SECT 25 (Repealed 76 of 1996 s. 16) VerDate:01/04/1998 BANKRUPTCY ORDINANCE - SECT 25 Power to accept composition or scheme after adjudication VerDate:30/06/1997 (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. (See Forms 31, 64, 65, 66) (2) If the court approves the composition or scheme it may make an order annulling the bankruptcy and vesting the property 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 or thing duly done under or in pursuance of the composition or scheme. Where a debtor is adjudged bankrupt under this subsection, all debts, provable in other respects, which have been contracted before the date of such adjudication shall be provable in the bankruptcy. [cf. 1914 c.59 s.21 U.K.] BANKRUPTCY ORDINANCE - SECT 26 Duties of debtor as to discovery and realization of property VerDate:01/04/1998 Control over person and property of debtor (1) Every debtor against whom a bankruptcy 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. (Amended 76 of 1996 s. 73) (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 aid to the utmost of his power in the realization of his property and the distribution of the proceeds among his creditors. (Amended 76 of 1996 s. 17) (4) If a bankrupt 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 possession 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. (Amended 76 of 1996 s. 72) [cf. 1914 c. 59 s. 22 U.K.] BANKRUPTCY ORDINANCE - SECT 26 Duties of debtor as to discovery and realization of property VerDate:30/06/1997 Control over person and property of debtor (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 possession 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. (See Forms 99, 102, 104) [cf. 1914 c.59 s.22 U.K.] BANKRUPTCY ORDINANCE - SECT 27 Arrest of debtor under certain circumstances VerDate:01/04/1998 (1) 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 control 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 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 a debt, 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 bankruptcy order is made against him he removes any goods in his possession above the value of $50 without the leave of the Official Receiver or trustee; (Amended 37 of 1950 Schedule) (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 committed an offence punishable under this Ordinance. (Amended 76 of 1996 s. 18) (2) No payment or composition made or security given after arrest made under this section shall be exempt from the provisions of this Ordinance relating to unfair preferences. (Amended 76 of 1996 ss. 18 and 73) [cf. 1914 c. 59 s. 23 U.K.] BANKRUPTCY ORDINANCE - SECT 27 Arrest of debtor under certain circumstances VerDate:30/06/1997 (1) 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 control 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- (See Forms 109, 110) (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 $50 without the leave of the Official Receiver or trustee; (Amended 37 of 1950 Schedule) (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 committed an offence punishable under this Ordinance: Provided that no arrest upon a bankruptcy notice shall be valid and protected unless the debtor before or at the time of his arrest is served with such bankruptcy notice. (2) No payment or composition made or security given after arrest made under this section shall be exempt from the provisions of this Ordinance relating to fraudulent preferences. [cf. 1914 c.59 s.23 U.K.] BANKRUPTCY ORDINANCE - SECT 28 Re-direction of debtor's telegrams and letters VerDate:01/04/1998 Where a bankruptcy order is made against a bankrupt the court, on the application of the Official Receiver or trustee, may from time to time order that for such time, not exceeding 3 months, as the court thinks fit telegrams and post letters and other postal packets, addressed to the bankrupt 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 Post-master 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. (Amended 76 of 1996 ss. 72 and 73) [cf. 1914 c. 59 s. 24 U.K.] BANKRUPTCY ORDINANCE - SECT 28 Re-direction of debtor's telegrams and letters VerDate:30/06/1997 Where a receiving order is made against a debtor the court, on the application of the Official Receiver or trustee, may from time to time order that for such time, not exceeding 3 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 Post-master 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. (See Form 111) [cf. 1914 c.59 s.24 U.K.] BANKRUPTCY ORDINANCE - SECT 29 Inquiry as to bankrupt's conduct, dealings and property VerDate:01/04/1998 (1) The court may, on the application of the Official Receiver or trustee, at any time after a bankruptcy order has been made against a bankrupt summon before it the bankrupt or his spouse, or any person known or suspected to have in his possession any of the estate or effects belonging to the bankrupt or supposed to be indebted to the bankrupt, or any person whom the court may deem capable of giving information respecting the bankrupt, his dealings or property, and the court may require any such person to produce any documents in his custody or power relating to the bankrupt, his dealings or property. (Amended 76 of 1996 ss. 71, 72 and 73) (1A) The court may require a person referred to in subsection (1), other than the bankrupt, to submit an affidavit to the court containing an account of his dealings with the bankrupt or to produce any documents in his possession or under his control relating to the bankrupt or the bankrupt's dealings, affairs or property. (Added 76 of 1996 s. 19) (2) If any person so summoned, after having been tendered a reasonable sum, refuses to come before the court at 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 appointed for the purpose, examine on oath, either by word of mouth or by written interrogatories, any person so brought before it concerning the bankrupt, his dealings or property and any other matter the court considers relevant. (Amended 76 of 1996 ss. 19 and 72) (3A) It shall be the duty of a person examined under subsection (3) to answer all questions that the court may put or allow to be put to him. (Added 76 of 1996 s. 19) (3B) Evidence given on oath under this section shall not be admissible in criminal proceedings other than for perjury by the person who gave it. (Added 76 of 1996 s. 19) (4) If on the examination of any person it appears to the court