Bankruptcy Ordinance [New Version]

Evidence

Creditors

In Bankruptcy

provided they appear to be sealed with the seal of the Court, or purport to be signed by a judge or Registrar of the Court, or have been certified as a true copy by the Chief Registrar of the Court.

681 Book of Laws 34 28 Elul 5740 09.09.1980

Subject to the provisions of the Regulations, an affidavit to be relied upon before the Court may be made —

Where the debtor, his spouse, or a witness whose testimony was received before a court in proceedings under this Ordinance has died, the testimony of the deceased, or a copy thereof, purporting to be sealed with the seal of the Court, shall be evidence of the matters stated therein.

Or a Deceased Witness

The Court shall have a seal describing it as the Minister shall direct; such a seal and the signature of the judge or Chief Registrar of the Court shall not require proof.

Seal

Where this Ordinance prescribes a period of less than three days for the doing of an act or thing, the following shall not be counted —

Any notice or certificate for which no provision has been made as to the manner of its service upon a person may be sent by post to his last known address.

Shall Not Invalidate

Every deed of conveyance or transfer and every other document relating solely to Real Property, or to a charge, right or interest in movable property or Real Property that forms part of the assets of a bankrupt and remains

and every other document relating solely to the assets of a bankrupt or to legal proceedings in Bankruptcy — shall be exempt from stamp duty.

The provisions of this Ordinance concerning remedies against a debtor's property, priority of debts, and the effect of a compromise, arrangement, or discharge shall bind the State, unless this Ordinance otherwise provides in the matter.

13 O.G. 5708, Supp. I, p. 1, p. 12; S.H. 5712, p. 10.

682 Book of Laws 34 28 Elul 5740 09.09.1980

Fees

The Minister may prescribe by Regulations the rates of fees and percentages to be imposed in respect of proceedings under this Ordinance.

The Minister may make Regulations for the implementation of the provisions of this Ordinance, and in particular may amend or replace the Regulations contained in the Schedules.

(Section 26(b))

Meetings of Creditors

The first meeting of creditors shall be convened within thirty days after the receiving Order has been made, unless the court considers it more convenient to convene it on a later date.

The Official Receiver shall publish, in such manner as he considers appropriate, the time and place fixed by him for the first meeting.

The Official Receiver shall notify the debtor at least three days in advance, in any manner that appears to him appropriate, of the time and place fixed by him for the first meeting.

The Official Receiver or the trustee may convene meetings of creditors at any time, and shall do so whenever the court so directs or whenever a creditor so demands in accordance with the provisions of this Ordinance.

The Official Receiver or the trustee, as the case may be, shall fix the times and places of meetings and shall send notice thereof as soon as practicable to the debtor and to every creditor whose name is known to him, at the address stated in that creditor's proof of debt, or if no proof of debt has been submitted, at the address stated in the statement of affairs, or at such other address as is known to the convener of the meeting; provided that the validity of the meeting shall not be affected if such notice was not sent or was not received.

A certificate by the Official Receiver or his officer, or a statutory declaration by the trustee or on his behalf, that notice of the creditors' meeting was duly sent shall be sufficient evidence that such notice was indeed duly sent to every person to whom it was addressed.

A trustee convening a meeting of creditors shall send to the Official Receiver a copy of the notice convening the meeting.

A person regarded as a creditor shall have no right to vote, whether at the first meeting or at subsequent meetings, unless he has duly submitted a proof of a provable debt owed to him by the debtor.

The proof of debt shall be submitted not later than 24 hours before the time fixed for the meeting, or at such earlier time as the convener of the meeting may have fixed in the notices sent to creditors.

The chairman of the meeting is empowered to admit or reject a proof for the purpose of voting, but his decision may be appealed to the court. If the chairman is in doubt whether to admit or reject the proof, he shall mark it as a proof subject to objection and shall allow the creditor to vote conditionally, so that if the objection is sustained the vote shall be disqualified.

683 Book of Laws 34 28 Elul 5740 09.09.1980

-11. A creditor shall have no right to vote in respect of an unliquidated, contingent, or uncertain debt.

Where a receiving Order has been made against a partner in a Partnership, every creditor to whom the partner is jointly indebted together with other partners in the Partnership shall be entitled to submit a proof of debt and to vote at meetings of creditors.

A secured creditor who has not surrendered his security shall, for the purpose of his right to vote at a meeting, be required to state in his proof the particulars of his security, the date on which it was given, and its value as estimated by him, and shall be entitled to vote only in respect of the balance remaining due to him after deducting that value; if the creditor votes in respect of his full debt, he shall be deemed to have surrendered his security, unless the court, on application made to it, finds that the value was not included in his proof by reason of inadvertence.

A creditor shall not vote in respect of a debt on the basis of a bill of exchange or promissory notes held by him, unless he has agreed to treat as security in his hands the liability owed to him under the instrument by every person who is liable thereon prior to the debtor and against whom no receiving Order has been made, and has agreed to estimate the value of all such liability and to deduct that value from his proof for the purpose of voting but not for the purpose of dividend.

Within twenty-eight days after a creditor has voted pursuant to the provisions of Section 13, the trustee or Official Receiver shall be empowered to require him to surrender the security for the benefit of all creditors, after payment to him of the value as estimated in his proof plus twenty percent; such creditor may, before being required to surrender the security, amend the valuation by submitting a new proof of debt and deducting the new value from his debt, but if after such amendment the trustee requires him to surrender the security, the creditor shall not be entitled to the addition of twenty percent.

A creditor may vote either in person or by proxy.

A proxy for voting shall be drawn up in the prescribed form and shall be lodged with the convener of the meeting at the commencement of the meeting; however, the convener of the meeting may require that it be presented at an earlier time fixed by him.

The power of attorney shall be signed by the creditor or by their duly authorized representative.

A creditor may appoint the Official Receiver as their proxy for the purpose of voting.

Where the court finds that the trustee, or a person acting on their behalf, has used solicitation to obtain a power of attorney or to secure appointment to a position, the court may order that no remuneration whatsoever be paid to them.

A proxy is not entitled to vote at a meeting in favour of a resolution that may, directly or indirectly, enable them, their partner, or their employer to receive any benefit from the debtor's assets, beyond the proportion due to them as one of the debtor's creditors; however, if they hold powers of attorney to vote in favour of their own appointment as trustee, they are entitled to vote thereon accordingly.

The Official Receiver or a person appointed by them shall be the chairperson of the first meeting; at subsequent meetings, the chairperson shall be whoever is elected thereto.

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With the consent of the meeting, the chairperson may adjourn the continuation thereof from time to time and may transfer it from place to place.

The chairperson shall direct that minutes be kept of the meeting, and shall sign them.

In any matter other than the election of a chairperson, the admission of claims, or the adjournment of proceedings, the meeting is not competent to act unless there are present, in person or by their representatives, at least three creditors, or all creditors — if their total number does not exceed two.

If within half an hour of the time appointed for the meeting a quorum of creditors is not present, whether in person or by their representatives, the meeting shall be adjourned to the following week, on the same day, at the same time and at the same place, or to such time and place as the chairperson shall appoint.

The vote of the trustee or their representative, when voting as a creditor or as the representative of a creditor, shall not be counted towards the majority required for the passing of a resolution concerning the remuneration or conduct of the trustee.

(Section 75)

Proof of Debts

If the trustee intends to declare a dividend within a period of less than six months from the date of the receiving order, they may require, notwithstanding the provisions of Section 1(a), that proofs of debt be submitted by an earlier date as fixed by them.

A proof of debt shall be in the form of an affidavit verifying it, and shall be submitted to the Official Receiver or to the trustee, if one has been appointed, in the prescribed form.

The deponent may be the creditor themselves, or a person authorized by the creditor or authorized on their behalf; in an affidavit made by an authorized person, their authority and the source of their knowledge shall be set out in detail.

The affidavit shall contain or refer to a copy of an account setting out particulars of the debt, and shall specify every document capable of substantiating it; the Official Receiver or the trustee may at any time require the production of such documents.

Where a secured creditor has decided to submit a proof of debt, notwithstanding the security held by them, they shall state in their proof the amount of their secured debt and the amount of the unsecured debt, if any; if it is found that a proof of debt made by or on behalf of a secured creditor does not state that they are a secured creditor, the secured creditor shall surrender their security to the Official Receiver or to the trustee for the benefit of all creditors, unless the court is satisfied, upon an application made to it, that the omission arose from inadvertence, in which case the court shall be entitled

685 Book of Laws 34 28 Elul 5740 09.09.1980

to permit the amendment of the proof on such terms regarding the payment of dividends and such other matters as it considers just to impose.

A creditor shall bear the costs of their proof of debt, unless the court sees fit, in special circumstances, to direct otherwise.

Every creditor who has submitted a proof of debt shall be entitled to inspect and examine the proofs of other creditors before the first meeting and at any reasonable time.

A creditor proving their debt shall deduct therefrom any trade discount they have allowed.

The creditor shall present before the Official Receiver or before the Trustee, if appointed, every document upon which the proof of debt is based.

Upon the appointment of a Trustee, the Official Receiver shall transfer to the Trustee, in accordance with a list to be prepared by the Official Receiver, all proofs of debt that have come into the Official Receiver's possession.