Bankruptcy Act, 1967
A bankrupt person or a person with a receiving order may commit a misdemeanour if they hide assets, fail to hand over property or records, give false statements, or do related fraudulent acts; conviction can lead to imprisonment.
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- Jurisdiction
- Zambia
- Instrument
- Act or statute
- Citation
- Act 27 of 1967
- Version
- 31 Dec 1996
- Language
- en
- Official source
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Statute overview
About this statute
A bankrupt person or a person with a receiving order may commit a misdemeanour if they hide assets, fail to hand over property or records, give false statements, or do related fraudulent acts; conviction can lead to imprisonment. An undischarged bankrupt must not obtain credit of 20 kwacha or more without telling the lender, and must not trade or do business under another name without disclosing the bankruptcy name. Bankrupt persons, and persons whose estates are under a receiving order, commit a misdemeanour if they obtain credit by fraud, transfer or charge property to defeat creditors, conceal or remove property in the specified period, or cause or connive at execution against their property to defraud creditors. A bankrupt person, or a person whose estate is subject to a receiving order, commits a misdemeanour if the listed gambling or speculation conditions are met. A bankrupt, or someone whose estate is under a receiving order, commits a misdemeanour if they failed to keep or preserve proper business books in the relevant period.
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Legal text
Provisions of Bankruptcy Act, 1967
Showing 68 of 68
Part
Part VIII – Bankruptcy offences
- 138 Verify source ↗
Fraudulent debtors ........................................................................................................................................................................... 48
AI-assisted research summary: A bankrupt person or a person with a receiving order may commit a misdemeanour if they hide assets, fail to hand over property or records, give false statements, or do related fraudulent acts; conviction can lead to imprisonment.
138. Fraudulent debtors (1) Any person who has been adjudged bankrupt or in respect of whose estate a receiving order has been made shall in each of the cases following be guilty of a misdemeanour: (a) (b) (c) (d) (e) (f) (g) (h) if he does not to the best of his knowledge and belief fully and truly discover to the trustee all his property, real and personal, and how and to whom and for what consideration and when he disposed of any part thereof, except such part as he has disposed of in the ordinary way of his trade (if any) or laid out in the ordinary expense of his family, unless he proves that he had no intent to defraud; if he does not deliver up to the trustee, or as he directs, all such part of his real and personal property as is in his custody or under his control, and which he is required by law to deliver up, unless he proves that he had no intent to defraud; if he does not deliver up to the trustee, or as he directs, all books, documents, papers and writings in his custody or under his control relating to his property or affairs, unless he proves that he had no intent to defraud; if, after the presentation of a bankruptcy petition by or against him, or within two years next before such presentation, he conceals any part of his property to the value of twenty kwacha or upwards, or conceals any debt due to or from him, unless he proves that he had no intent to defraud; if, after the presentation of a bankruptcy petition by or against him, or within two years next before such presentation, he removes any part of his property to the value of twenty kwacha or upwards, unless he proves that he had no intent to defraud; if he makes any material omission in any statement relating to his affairs, unless he proves that he had no intent to defraud; if, knowing or believing that a false debt has been proved by any person under the bankruptcy, he fails for the period of a month to inform the trustee thereof; if, after the presentation of a bankruptcy petition by or against him, he prevents the production of any book, document, paper or writing affecting or relating to his property or affairs, unless he proves that he had no intent to conceal the state of his affairs or to defeat the law; By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 48 Bankruptcy Act, 1967 (Chapter 82) Zambia (i) (j) (k) if, after the presentation of a bankruptcy petition by or against him, or within two years next before such presentation, he conceals, destroys, mutilates or falsifies, or is privy to the concealment, destruction, mutilation or falsification of any book or document affecting or relating to his property or affairs, unless he proves that he had no intent to conceal the state of his affairs or to defeat the law; if, after the presentation of a bankruptcy petition by or against him, or within two years next before such presentation, he makes or is privy to the making of any false entry in any book or document affecting or relating to his property or affairs, unless he proves that he had no intent to conceal the state of his affairs or to defeat the law; if, after the presentation of a bankruptcy petition by or against him, or within two years next before such presentation, he parts with, alters, or makes any omission in, or is privy to parting with, altering, or making any omission in, any document affecting or relating to his property or affairs, unless he proves that he had no intent to defraud; (l) if, after the presentation of a bankruptcy petition by or against him, or at any meeting of his creditors within two years next before such presentation, he attempts to account for any part of his property by fictitious losses or expenses; (m) (n) (o) (p) (q) (r) (s) (t) if, within two years next before the presentation of a bankruptcy petition by or against him, or after the presentation of a bankruptcy petition and before the making of a receiving order, he, by any false representation or other fraud, has obtained any property on credit and has not paid for the same; if, within two years next before the presentation of a bankruptcy petition by or against him, or after the presentation of a bankruptcy petition and before the making of a receiving order, he obtains under the false pretence of carrying on business, and, if a trader, of dealing in the ordinary way of his trade, any property on credit and has not paid for the same, unless he proves that he had no intent to defraud; if, within two years next before the presentation of a bankruptcy petition by or against him, or after the presentation of a bankruptcy petition and before the making of a receiving order, he pawns, pledges or disposes of any property which he has obtained on credit and has not paid for, unless in the case of a trader, such pawning, pledging or disposing is in the ordinary way of his trade, and unless in any case he proves that he had no intent to defraud; if he is guilty of any false representation or other fraud for the purpose of obtaining the consent of his creditors or any of them to an agreement with reference to his affairs or to his bankruptcy; if he makes default in payment for the benefit of his creditors of any portion of salary, wages or other income in respect of the payment of which the court is authorised to make an order; if, within one year immediately preceding the date of the making of the receiving order, he has continued to trade or carry on business, after knowing himself to be insolvent; if, within six months before the making of a receiving order, he sells goods at a price lower than cost, unless he proves that he had no intent to defraud; if he has contracted any debt provable in the bankruptcy without having at the time of contracting it any reasonable or probable ground of expectation (proof whereof shall lie on him) of being able to pay it. (2) For the purposes of this section, "trustee" means the official receiver or trustee administering the debtor's estate for the benefit of his creditors. (3) Any person guilty of a misdemeanour under subsection (1) shall be liable on conviction to imprisonment for a term not exceeding three years, except in the cases mentioned respectively in paragraphs (m), (n) and (o) of such subsection when he shall be liable to imprisonment for a term not exceeding five years. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 49 Bankruptcy Act, 1967 (Chapter 82) Zambia (4) Where any person pawns, pledges or disposes of any property in circumstances which amount to an offence under paragraph (o) of subsection (1), every person who takes in pawn or pledge or otherwise receives the property knowing it to be pawned, pledged or disposed of in such circumstances as aforesaid, shall be guilty of a misdemeanour and on conviction thereof liable to be punished in the same way as if he had received the property knowing it to have been obtained in circumstances amounting to a misdemeanour. - 139 Verify source ↗
Undischarged bankrupt obtaining credit ................................................................................................................................. 50
AI-assisted research summary: An undischarged bankrupt must not obtain credit of 20 kwacha or more without telling the lender, and must not trade or do business under another name without disclosing the bankruptcy name.
139. Undischarged bankrupt obtaining credit Where a person who has been adjudged bankrupt in Zambia or adjudged bankrupt or insolvent in any reciprocating country and has not obtained his discharge— (a) either alone or jointly with any other person obtains credit to the extent of twenty kwacha or upwards from any person without informing that person that he is an undischarged bankrupt; or (b) engages in any trade or business under a name other than that under which he was adjudged bankrupt or insolvent without disclosing to all persons with whom he enters into any business transaction the name under which he was adjudged bankrupt or insolvent; he shall be guilty of a misdemeanour. - 140 Verify source ↗
Frauds by bankrupts, etc. .............................................................................................................................................................. 50
AI-assisted research summary: Bankrupt persons, and persons whose estates are under a receiving order, commit a misdemeanour if they obtain credit by fraud, transfer or charge property to defeat creditors, conceal or remove property in the specified period, or cause or connive at execution against their property to defraud creditors.
140. Frauds by bankrupts, etc. (1) If any person who has been adjudged bankrupt or in respect of whose estate a receiving order has been made— (a) in incurring any debt or liability, has obtained credit under false pretences or by means of any other fraud; or (b) with intent to defraud his creditors or any of them, has made or caused to be made any gift or transfer of, or charge on, his property; or (c) with intent to defraud his creditors, has concealed or removed any part of his property since, or within two months before, the date of any unsatisfied judgment or order for payment of money obtained against him; he shall be guilty of a misdemeanour. (2) For the purpose of paragraph (b) of subsection (l), it is hereby declared that if any person who has been adjudged bankrupt, or in respect of whose estate a receiving order has been made, has with intent to defraud his creditors or any of them caused or connived at the levying of any execution against his property he shall be deemed to have made a transfer of or charge on, his property. - 141 Verify source ↗
Bankrupt guilty of gambling, etc. .............................................................................................................................................. 50
AI-assisted research summary: A bankrupt person, or a person whose estate is subject to a receiving order, commits a misdemeanour if the listed gambling or speculation conditions are met.
141. Bankrupt guilty of gambling, etc. Any person who has been adjudged bankrupt, or in respect of whose estate a receiving order has been made, shall be guilty of a misdemeanour, if, having been engaged in any trade or business, and having outstanding at the date of the receiving order any debts contracted in the course and for the purposes of such trade or business— (a) he has, within two years prior to the presentation of the bankruptcy petition, materially contributed to or increased the extent of his insolvency, by gambling or by rash and hazardous speculations, and such gambling or speculations are unconnected with his trade or business; or (b) he has, between the date of the presentation of the petition and the date of the receiving order, lost any part of his estate by such gambling or rash and hazardous speculations as aforesaid; or (c) on being required by the official receiver at any time, or in the course of his public examination by the court, to account for the loss of any substantial part of his estate incurred within a period of a year next preceding the date of the presentation of the bankruptcy petition, or between that By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 50 Bankruptcy Act, 1967 (Chapter 82) Zambia date and the date of the receiving order, he fails to give a satisfactory explanation of the manner in which such loss was incurred: Provided that in determining for the purposes of this section whether any speculations were rash and hazardous, the financial position of the accused person at the time when he entered into the speculations shall be taken into consideration. - 142 Verify source ↗
Bankrupt failing to keep proper accounts ............................................................................................................................... 51
AI-assisted research summary: A bankrupt, or someone whose estate is under a receiving order, commits a misdemeanour if they failed to keep or preserve proper business books in the relevant period.
142. Bankrupt failing to keep proper accounts (1) Any person who has been adjudged bankrupt or in respect of whose estate a receiving order has been made shall be guilty of a misdemeanour, if, having been engaged in any trade or business during any period in the two years immediately preceding the date of the presentation of the bankruptcy petition, he has not kept proper books of account throughout that period and throughout any further period in which he was so engaged between the date of the presentation of the petition and the date of the receiving order, or has not preserved all books of account so kept: Provided that a person who has not kept or has not preserved such books of account shall not be convicted of an offence under this section if he proves that in the circumstances in which he traded or carried on business the omission was honest and excusable. (2) For the purposes of this section, a person shall be deemed not to have kept proper books of account if he has not kept such books or accounts as are necessary to exhibit and explain his transactions and financial position in his trade or business, including a book or books containing entries from day to day in sufficient detail of all cash received and cash paid, and, where the trade or business has involved dealings in goods, statements of annual stock-takings, and accounts of all goods sold and purchased, showing the goods and the buyers and sellers thereof in sufficient detail to enable those goods and those buyers and sellers to be identified, except that it shall not be necessary to record the name and address of each customer and the article sold in the case of goods sold by way of retail trade to the actual consumer for cash at a price not lower than cost. - 143 Verify source ↗
Bankrupt absconding with property .......................................................................................................................................... 51
AI-assisted research summary: A bankrupt person who leaves Zambia, or tries to leave, with property worth 40 kwacha or more that should go to creditors commits a felony unless they prove they had no intent to defraud.
143. Bankrupt absconding with property If any person who is adjudged bankrupt, or in respect of whose estate a receiving order has been made, after the presentation of a bankruptcy petition by or against him or within six months before such presentation, quits Zambia and takes with him, or attempts or makes preparations to quit Zambia and take with him, any part of his property to the amount of forty kwacha or upwards, which ought by law to be divided amongst his creditors, he shall (unless he proves that he had no intent to defraud) be guilty of felony. - 144 Verify source ↗
False claim, etc. ................................................................................................................................................................................ 51
AI-assisted research summary: A creditor or claimed creditor in bankruptcy proceedings commits a misdemeanour if they make a false claim or submit a proof, declaration, or account statement that is materially untrue, unless they prove there was no intent to defraud.
144. False claim, etc. If any creditor, or any person claiming to be a creditor, in any bankruptcy proceedings, makes any false claim, or any proof, declaration or statement of account, which is untrue in any material particular, he shall be guilty of a misdemeanour unless he proves that he had no intent to defraud. - 145 Verify source ↗
Criminal liability after discharge or composition ................................................................................................................. 51
AI-assisted research summary: A debtor who has committed a criminal offence is not exempt from being prosecuted because of discharge, a composition or scheme of arrangement, or annulment of bankruptcy.
145. Criminal liability after discharge or composition Where a debtor has been guilty of any criminal offence, he shall not be exempt from being proceeded against therefor by reason that he has obtained his discharge or that a composition or scheme of arrangement has been accepted or approved or that the adjudication of bankruptcy has been annulled. - 146 Verify source ↗
General penalty ................................................................................................................................................................................. 51
AI-assisted research summary: A person convicted of certain offences under the Act may be sentenced to imprisonment for up to two years if no special penalty is provided.
146. General penalty A person guilty of an offence declared to be a felony or misdemeanour under this act in respect of which no special penalty is imposed by this act shall be liable on conviction to imprisonment for a term not exceeding two years. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 51 Bankruptcy Act, 1967 (Chapter 82) Zambia - 147 Verify source ↗
Form of charge .................................................................................................................................................................................. 52
AI-assisted research summary: A charge for an offence under this Act is enough if it states the substance of the offence in the Act’s words, or as close as circumstances allow.
147. Form of charge In a charge for an offence under this Act it shall be sufficient to set forth the substance of the offence charged in the words of this Act specifying the offence, or as near thereto as circumstances admit, without alleging or setting forth any debt, act of bankruptcy, trading, adjudication, or any proceedings in, or order, warrant or document of, the court acting under this Act or any enactment referred to in the Third Schedule.
Part
Schedule.
- 148 Verify source ↗
Evidence as to frauds by directors and officers of corporations or companies .......................................................... 52
AI-assisted research summary: Statements or admissions made in compulsory bankruptcy examinations or depositions before a court cannot be used as evidence against the person who made them in proceedings for the listed Penal Code felonies.
148. Evidence as to frauds by directors and officers of corporations or companies A statement or admission made by any person in any compulsory examination or deposition before any court on the hearing of any matter in bankruptcy shall not be admissible as evidence against that person in any proceeding in respect of any of the felonies referred to in sections three hundred and twenty-four and three hundred and twenty-five of the Penal Code. [Cap. 87] Part IX – Provisions for reciprocity with other countries
Part
Part IX – Provisions for reciprocity with other countries
- 149 Verify source ↗
Declaration of reciprocating countries and courts ............................................................................................................... 52
AI-assisted research summary: The Attorney-General may, by statutory order, declare another country and its bankruptcy court to be reciprocating for this Act if satisfied that the country’s bankruptcy reciprocity rules have the same effect as this Part.
149. Declaration of reciprocating countries and courts Where the Attorney-General is satisfied that the legislature of any other country has enacted provisions for reciprocity in bankruptcy which in that country have the like effect as the provisions contained in this Part, he may, by statutory order, declare such country to be a reciprocating country, and the court thereof having jurisdiction in bankruptcy a reciprocating court for the purposes of this Act, and the provisions of this Part shall then apply to all bankruptcy proceedings subsequently instituted in the declared country against a debtor having property in Zambia. - 150 Verify source ↗
Effect of receiving order, etc., made by reciprocating court against debtor with property in Zambia ............... 52
AI-assisted research summary: If a reciprocating-country bankruptcy order or appointment is made against a debtor with property in Zambia, it has the same effect as if made in Zambia.
150. Effect of receiving order, etc., made by reciprocating court against debtor with property in Zambia Where a receiving order or order of adjudication or any appointment of a special manager or interim receiver has been made in any reciprocating country in bankruptcy proceedings against a debtor having property in Zambia, such order or appointment shall, subject to the other provisions of this Part, have the like effect as if it had been made in bankruptcy proceedings against the debtor in Zambia, and the debtor and his creditors shall be deemed to be in the same position and have the same rights and privileges, and be subject to the same disqualifications, restrictions, obligations and liabilities, in every respect as if such order or appointment had been made under this Act. - 151 Verify source ↗
Vesting of bankrupt's property in trustee appointed in reciprocating country ........................................................... 52
AI-assisted research summary: If a reciprocating court makes an order of adjudication, the bankrupt’s property in Zambia vests in the trustee in the reciprocating country.
151. Vesting of bankrupt's property in trustee appointed in reciprocating country Where an order of adjudication is made by a reciprocating court, the property of the bankrupt situated in Zambia shall, by virtue of such order, vest in the person from time to time discharging the office of trustee of the property of the bankrupt in the reciprocating country, in the same manner as if the order of adjudication and the appointment of trustee had been made in Zambia, and the superintendence of such trustee shall continue to be exercised by the committee of inspection appointed in the reciprocating country or, if there be no such committee, by the reciprocating court. - 152 Verify source ↗
Powers of official receiver, etc., appointed in reciprocating country ............................................................................. 52
AI-assisted research summary: A reciprocating-country receiver, manager, or trustee handling bankruptcy involving property in Zambia is responsible for the case and the debtor’s affairs in Zambia, subject to the appointing court’s control.
152. Powers of official receiver, etc., appointed in reciprocating country The official receiver, interim receiver, special manager or trustee of a reciprocating country officiating in bankruptcy proceedings against a debtor having property in Zambia shall, subject to the control of the court by which he is appointed, be solely responsible for conducting those proceedings, and managing the affairs of the debtor or bankrupt within Zambia, and for such purposes shall, each in his respective capacity, have the same powers, rights, duties, obligations and liabilities as if he had derived his authority By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 52 Bankruptcy Act, 1967 (Chapter 82) Zambia under this Act, and in any such proceedings where by this Act a debtor, creditor or other person interested is required to do any act at the direction of the official receiver, interim receiver, special manager or trustee, or is permitted by this Act to move in any matter in connection with such proceedings, every such debtor, creditor or person interested shall do such act at the direction of, and in all such matters treat and negotiate with or proceed against, the official receiver, interim receiver, special manager or trustee, as the case may be, of the reciprocating country, except in so far as any such official may have delegated his authority to the official receiver of Zambia as his agent in the manner hereinafter provided. - 153 Verify source ↗
Official receiver to act as agent of official receiver etc., of reciprocating country ................................................... 53
AI-assisted research summary: A qualifying official receiver or similar bankruptcy officer from a reciprocating country may ask the official receiver of Zambia to act as agent, and the Zambia official receiver must do so.
153. Official receiver to act as agent of official receiver etc., of reciprocating country Every official receiver, interim receiver, special manager or trustee of or appointed in a reciprocating country officiating in bankruptcy proceedings against a debtor having property in Zambia may require the official receiver of Zambia to act as his agent either in regard to any specific matter, or generally to take all such steps as may be lawful under this Act, for the discovery, seizure, protection, disclaimer or realisation of any property of the bankrupt situated within Zambia, and in such event it shall be the duty of the official receiver of Zambia to act accordingly. - 154 Verify source ↗
Mode of requesting official receiver to act as agent .......................................................................................................... 53
AI-assisted research summary: Requests for the official receiver to act as agent must follow the prescribed form and be gazetted; the official receiver must file the request with the court registrar, and the court must take notice after filing.
154. Mode of requesting official receiver to act as agent (1) Every request to act as agent as aforesaid shall be made in the manner prescribed under this Act, and shall be gazetted, and as from the date of such request and without further formality or authority the official receiver shall, as regards the debtor or bankrupt and his property and creditors situated in Zambia and for the purposes for which he is authorised, have the same rights, powers and duties as are conferred under the provisions of this Act upon the official receiver, interim receiver, special manager or trustee, as the case may be: Provided that nothing herein contained shall confer on the official receiver any interest or title in any such property otherwise than as an agent as aforesaid. (2) On the receipt of the prescribed request, the official receiver shall file with the registrar of the court the original, or a properly authenticated copy, of the request, and upon such filing the court shall take judicial notice of the appointment as agent under the provisions of this Part. (3) Notwithstanding the provisions of subsection (1), the official receiver may, in any case in which it is made to appear to him that immediate action is desirable, commence discharging his duties as agent as aforesaid in any manner applicable to the circumstances, if upon receipt of a telegraphic or other information he is satisfied that— (a) bankruptcy proceedings have been instituted in a reciprocating country against a debtor having property in Zambia; and (b) the prescribed request for him to act has been signed and despatched; and (c) he has been indemnified against all costs, charges and expenses to be incurred by him. (4) Unless the contrary intention appears, every request to act as agent sent to the official receiver of Zambia shall be deemed to permit him to delegate at his discretion the powers and duties vested in him as such agent to any deputy or assistant official receiver appointed in pursuance of this Act. - 155 Verify source ↗
Duties of official receiver acting as agent .............................................................................................................................. 53
AI-assisted research summary: The official receiver of Zambia must pay estate money to the person he acts for, or as that person directs, after proper expenses are deducted.
155. Duties of official receiver acting as agent It shall be the duty of the official receiver of Zambia to remit the proceeds of the realisation of the property of the bankrupt, and all other money of the estate coming into his hands as such agent as aforesaid, to the person for whom he is acting, or as such person may direct, after deducting such expenses as may have been properly incurred by him; and the distribution among the creditors of all such money shall be carried out in accordance with the law of the reciprocating country in which the adjudication order was made: Provided that the provisions of this section shall not be in derogation of any law. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 53 Bankruptcy Act, 1967 (Chapter 82) Zambia - 156 Verify source ↗
Transmission of proofs of debt ................................................................................................................................................... 54
AI-assisted research summary: When the stated cross-border insolvency conditions are met, the official receiver in Zambia must receive, deal with, and forward proofs of debt in the prescribed way.
156. Transmission of proofs of debt Where a receiving order or an order of adjudication has been made in a reciprocating country and the official receiver in Zambia is acting as agent in the manner hereinbefore provided, proofs of debts contracted by the debtor in Zambia may be filed with the official receiver of Zambia in the form prescribed by the law of such reciprocating country, and in every such case it shall be his duty to receive, deal with and forward, in the manner prescribed by rules made under this Part, such proofs to the official receiver or trustee, as the case may be, in such reciprocating country. - 157 Verify source ↗
Power of court to make orders under sections 11 and 25 ................................................................................................ 54
AI-assisted research summary: A court may, on application, make orders under sections 11 and 25 about a debtor’s person, property, and affairs when related bankruptcy proceedings exist in a reciprocating court and the debtor has property in Zambia.
157. Power of court to make orders under sections 11 and 25 If, on the application of the official receiver or any creditor or other person interested, it appears to the court that bankruptcy proceedings have been instituted in a reciprocating court against a debtor having property situated in Zambia, the court may, notwithstanding that no such proceedings have been instituted in Zambia, exercise as regards the person, property and affairs of the debtor all the powers conferred by sections eleven and twenty-five as may in the circumstances be applicable. - 158 Verify source ↗
Enforcement of warrants of reciprocating court ................................................................................................................... 54
AI-assisted research summary: A court in Zambia must enforce orders, warrants, and search warrants from a reciprocating court as if they were made or issued by the Zambian court itself.
158. Enforcement of warrants of reciprocating court Any order, warrant or search warrant made or issued by a reciprocating court shall be enforced by the court in Zambia in the same manner in all respects as if such order, warrant or search warrant had been made or issued by itself. - 159 Verify source ↗
Limitation on powers of court to entertain proceedings ................................................................................................... 54
AI-assisted research summary: Zambian courts must not entertain suits or matters arising from certain bankruptcy proceedings before a reciprocating court, subject to listed exceptions.
159. Limitation on powers of court to entertain proceedings Subject to the other provisions of this section, a reciprocating court shall have sole jurisdiction in all matters in or arising out of any bankruptcy proceedings taken before such court against a debtor having property in Zambia, and no court in Zambia shall entertain any suit, application or other matter arising in or out of such proceedings, except— (a) upon the institution of any proceedings by or against the official receiver of Zambia in respect of any matters within the scope of his authority in the capacity of agent as aforesaid; (b) in the case of any civil suit or proceedings within the ordinary civil jurisdiction of such court by or against the official receiver, interim receiver, trustee or special manager of or appointed in a reciprocating country; (c) upon the institution of any proceedings affecting the property of the debtor or bankrupt situated in Zambia; (d) upon the receipt of a request to act in aid of or be auxiliary to such reciprocating court; (e) for the public examination of the debtor in regard only to his property situated within Zambia or his dealings with any person ordinarily resident or carrying on business in Zambia: Provided that such public examination shall not be held until the public examination before the reciprocating court shall have been concluded or adjourned sine die; (f) for the exercise of powers under Part VIII in relation only to bankruptcy offences alleged to have been committed within Zambia; (g) upon the institution of any proceedings for or arising out of the enforcement or execution of any order, warrant or search warrant made or issued by a reciprocating court; or (h) upon an application for the exercise of the powers conferred on the court by sections eleven, twenty-five, twenty-six and fifty-four. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 54 Bankruptcy Act, 1967 (Chapter 82) Zambia - 160 Verify source ↗
Concurrent bankruptcies ................................................................................................................................................................ 55
AI-assisted research summary: This section defines concurrent bankruptcy proceedings and sets rules for who controls property in Zambia when such proceedings exist.
160. Concurrent bankruptcies (1) For the purposes of this section, "concurrent bankruptcy proceedings" means bankruptcy or insolvency proceedings instituted concurrently against the same debtor in any two or more reciprocating countries, one of which may or may not be Zambia. (2) Where concurrent bankruptcy proceedings have been instituted affecting property in Zambia, all such property shall vest in the trustee appointed in the country where the order of adjudication first is made; but if two or more such orders bear the same date or if for any reason no such adjudication order is made, then such property shall vest in or be administered by the trustee or receiver of the country where the receiving order first is made. (3) In any case where concurrent bankruptcy proceedings have been instituted in Zambia and, in pursuance of subsections (2) and (4), the property of the debtor or bankrupt situated in Zambia vests in or is administered by a trustee or receiver in a reciprocating country, the court shall rescind its receiving order and annul its order of adjudication, if made, or dismiss the petition upon such terms, if any, as the court may think fit; but the rescission of a receiving order or an annulment of adjudication under this subsection shall not invalidate any acts lawfully done by the receiver or trustee of Zambia or any other person lawfully acting under the authority of either of them. (4) Notwithstanding the other provisions of this section, in any case where concurrent bankruptcy proceedings have been instituted in Zambia, the court may, after such inquiry and reference to such reciprocating courts as it deems fit, order that the property of the debtor situated in Zambia shall vest in or be administered by a trustee or receiver in Zambia or in some reciprocating country other than that determined under the provisions of subsection (2) if, upon an application by the official receiver or any creditor or other person interested it appears that a majority of the creditors in number and in value are resident in Zambia, or such other reciprocating country, and that from the situation of the property of the debtor or bankrupt or other causes his estate and effects may be more conveniently administered, managed and distributed in Zambia or such other reciprocating country. - 161 Verify source ↗
Power of official receiver, etc. to require official receiver in reciprocating country to act as his agent ............. 55
AI-assisted research summary: In cross-border bankruptcy cases, the official receiver, trustee, interim receiver, or special manager must take lawful steps to administer property in the reciprocating country and may request a bankruptcy official there to act as agent.
161. Power of official receiver, etc. to require official receiver in reciprocating country to act as his agent (1) Where a receiving order or an order of adjudication is made in Zambia against a debtor or bankrupt having property situated in a reciprocating country and where, under the provisions of this Act, the property of the debtor or bankrupt is administered by or vested in the official receiver, or a trustee, of or appointed in Zambia, it shall be the duty of the official receiver or such trustee and any interim receiver or special manager appointed in pursuance of this Act to take all such steps as may be lawful in any reciprocating country for the proper administration of any property of the debtor or bankrupt situated in such country, and at his discretion and without further authority to request in the prescribed manner any bankruptcy official in such country empowered in that behalf to act as his agent either generally or for any specific purpose, and to give such directions and to publish such notices and to do all such things in the reciprocating country as may be lawful for the administration of the estate. (2) Unless for any reason the contrary intention is expressed, every request sent to a bankruptcy official in a reciprocating country requiring him to act as an agent as aforesaid shall contain a consent that he may assign the powers and duties vested in him as such agent to his deputy or any officer ordinarily authorised to act for him in the reciprocating country. (3) Where, in any proceedings mentioned in subsection (1), the official receiver, interim receiver, special manager or trustee has completed and despatched to a reciprocating country a request to a bankruptcy official therein to act as his agent as aforesaid, and where the circumstances of the case so require, he may request such bankruptcy official in the reciprocating country by telegram or otherwise to act as agent until such time as the prescribed request arrives in the ordinary course of post, provided that he undertakes to indemnify such bankruptcy official against any costs, charges and expenses which the latter may incur in acting as such agent as aforesaid. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 55 Bankruptcy Act, 1967 (Chapter 82) Zambia - 162 Verify source ↗
Power to make rules under Part IX ........................................................................................................................................... 56
AI-assisted research summary: The Chief Justice may make rules under Part IX, including rules that extend or vary time limits, and the Court may extend time in particular cases.
162. Power to make rules under Part IX (1) The Chief Justice may, by statutory instrument, make rules for the purpose of carrying into effect all or any of the objects of this Part, and, in addition and for such purpose, shall have power to make rules extending or varying the time limited under this Act or any general rules made under section one hundred and nineteen, for the doing of any act or taking any proceeding, in so far as such limitation of time affects persons ordinarily resident or carrying on business in a reciprocating country who are or may be interested in any bankruptcy proceedings in Zambia against a debtor having property in such reciprocating country: Provided that no rules made under the powers conferred by this subsection shall come into force until the Chief Justice, by statutory notice, declares himself satisfied that the rule-making authorities in reciprocating countries have made rules having the like effect within their respective countries. (2) Notwithstanding the provisions of subsection (1), the Court may in respect of any particular matter exercise its general powers of extension of time under subsection (4) of section one hundred and one in favour of a person ordinarily residing or carrying on business in a reciprocating country who is interested in bankruptcy proceedings instituted in Zambia against a debtor having property in such reciprocating country. - 163 Verify source ↗
Repeals and savings ........................................................................................................................................................................ 56
AI-assisted research summary: This section repeals certain British Acts applying to Zambia and keeps existing related proceedings, bankruptcy property rules, fees, and orders in effect with savings.
163. Repeals and savings Part X – Repeals (1) The British Acts set forth in the Third Schedule are hereby repealed in so far as they apply to Zambia. (2) This Act shall apply to proceedings commenced under any enactment referred to in the Third Schedule and pending at the commencement of this Act, as if commenced under this Act. (3) The provisions of this Act shall apply to, and in respect of, the property of a debtor against whom a receiving order has been made, or who has been adjudged bankrupt, under any enactment referred to in the Third Schedule, and to, and in respect of, such debtor, as if such receiving order had been made, or such debtor had been adjudged bankrupt, under the provisions of this Act: Provided that— (i) no person shall be prosecuted for an offence committed before the commencement of this Act unless such offence was a misdeameanour or felony under any enactment referred to in the Third Schedule; (ii) in the distribution of the property of any such debtor no creditor shall receive a lesser payment than he would have received if this Act had not been passed; but, notwithstanding the provisions of this proviso, section one hundred and thirty-seven shall be deemed always to have been in force. (4) Until revoked or altered under the provisions of this Act, any fees prescribed and any general rules and orders made under the High Court Act and the Bankruptcy Act, 1914, of the United Kingdom, which are in force at the commencement of this Act, shall continue in force, so far as the same remain applicable, and shall have effect as if made under this Act. [Cap. 27] By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 56 Bankruptcy Act, 1967 (Chapter 82) Zambia First Schedule (Section 15(2)) Meetings of creditors First meeting of creditors
Part
Schedule and pending at the commencement of this Act, as if commenced under this Act.
- 1 Verify source ↗
Short title .................................................................................................................................................................................................... 1
AI-assisted research summary: The official receiver must summon the first meeting of creditors and give at least two clear days’ notice of the time and place in the Gazette.
1. The official receiver shall summon the first meeting of creditors as soon as may be convenient after the date of the receiving order by giving not less than two clear days' notice of the time and place thereof in the Gazette. - 2 Verify source ↗
Interpretation ............................................................................................................................................................................................. 1
AI-assisted research summary: The official receiver must, as soon as practicable, send each listed creditor notice of the time and place of the first meeting of creditors.
2. The official receiver shall also, as soon as practicable, send to each creditor mentioned in the debtor's statement of affairs, a notice of the time and place of the first meeting of creditors, but the proceedings at the first meeting shall not be invalidated by reason of any such notice not having been sent or received before the meeting. - 3 Verify source ↗
Acts of bankruptcy ................................................................................................................................................................................... 2
AI-assisted research summary: The meeting must be held at a place the official receiver thinks is most convenient for most creditors.
3. The meeting shall be held at such place as is, in the opinion of the official receiver, most convenient for the majority of the creditors. Subsequent meetings of creditors - 4 Verify source ↗
Bankruptcy notices .................................................................................................................................................................................. 3
AI-assisted research summary: The official receiver or trustee may summon a meeting of creditors at any time, and must do so if the court directs or a creditor requests it under the Act.
4. The official receiver or the trustee may at any time summon a meeting of creditors, and shall do so whenever so directed by the court, or so requested by a creditor in accordance with the provisions of this act. - 5 Verify source ↗
Jurisdiction to make receiving order .......................................................................................................................................... 3
AI-assisted research summary: For meetings after the first creditors' meeting, the meeting must be summoned by sending notice of the time and place to each creditor.
5. Meetings subsequent to the first meeting shall be summoned by sending notice of the time and place thereof to each creditor at the address given in his proof, or if he has not proved, at the address given in the debtor's statement of affairs, or at such other address as may be known to the person summoning the meeting. Provisions applicable to all meetings of creditors - 6 Verify source ↗
Conditions on which creditor may petition ............................................................................................................................ 3
AI-assisted research summary: The official receiver, or someone he nominates, must chair the first meeting. Later meetings are chaired by the person the meeting appoints by resolution.
6. The official receiver, or some person nominated by him, shall be the chairman at the first meeting. the chairman at subsequent meetings shall be such person as the meeting shall by resolution appoint. - 7 Verify source ↗
Proceedings and order on creditor's petition .......................................................................................................................... 4
AI-assisted research summary: A person may not vote as a creditor at a creditors’ meeting unless the debt is proved and the proof is lodged in time.
7. A person shall not be entitled to vote as a creditor at the first or any other meeting of creditors, unless he has duly proved a debt provable in the bankruptcy to be due to him from the debtor, and the proof has been duly lodged with the official receiver or trustee at least one clear day before the time appointed for the meeting or lodged with the chairman at such meeting prior to the proof being used for the purpose of voting. - 8 Verify source ↗
Debtor's petition and order thereon .......................................................................................................................................... 4
AI-assisted research summary: A creditor must not vote at the meeting for any unliquidated, contingent, or unascertained-value debt.
8. A creditor shall not vote at any such meeting in respect of any unliquidated or contingent debt, or any debt the value of which is not ascertained. - 9 Verify source ↗
Effect of receiving order ................................................................................................................................................................. 5
AI-assisted research summary: A secured creditor voting on a proof must disclose the details, date, and value of the security, and may vote only on any remaining unsecured balance.
9. For the purposes of voting, a secured creditor shall, unless he surrenders his security, state in his proof the particulars of his security, the date when it was given, and the value at which he assesses it, and shall be entitled to vote only in respect of the balance (if any) due to him, after deducting the value of his security. if he votes in respect of his whole debt he shall be deemed to have surrendered his security, unless the court on application is satisfied that the omission to value the security has arisen from inadvertence. - 10 Verify source ↗
Power to appoint interim receiver ........................................................................................................................................... 5
AI-assisted research summary: A creditor generally may not vote on a debt backed by a current bill of exchange or promissory note unless the creditor treats related liabilities as security and deducts them from the proof for voting.
10. A creditor shall not vote in respect of any debt on, or secured by, a current bill of exchange or promissory note held by him, unless he is willing to treat the liability to him thereon of every person who is liable thereon antecedently to the debtor, and against whom a receiving order has not been made, as a security in his hands, and to estimate the value thereof, and for the purposes of voting, but not for the purposes of dividend, to deduct it from his proof. - 11 Verify source ↗
Power to stay pending proceedings ........................................................................................................................................ 5
AI-assisted research summary: The trustee or official receiver may require a creditor to give up security used in voting, within 28 days, on payment of the estimated value plus 20%.
11. It shall be competent to the trustee or to the official receiver, within twenty-eight days after a proof estimating the value of a security as aforesaid has been made use of in voting at any meeting, to require the creditor to give up the security for the benefit of the creditors generally on payment of the value so estimated, with an addition thereto of twenty per centum: By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 57 Bankruptcy Act, 1967 (Chapter 82) Zambia Provided that where a creditor has put a value on such security, he may, at any time before he has been required to give up such security as aforesaid, correct such valuation by a new proof, and deduct such new value from his debt, but in that case such addition of twenty per centum shall not be made if the trustee requires the security to be given up. - 12 Verify source ↗
Power to appoint special manager .......................................................................................................................................... 5
AI-assisted research summary: If a receiving order is made against one partner of a firm, a creditor jointly owed by that partner and the other partners may prove the debt and vote at creditors’ meetings.
12. If a receiving order is made against one partner of a firm, any creditor to whom that partner is indebted jointly with the other partners of the firm, or any of them, may prove his debt for the purpose of voting at any meeting of creditors, and shall be entitled to vote thereat. - 13 Verify source ↗
Advertisement of receiving order ............................................................................................................................................. 5
AI-assisted research summary: The chairman of a meeting may admit or reject a proof for voting, and the decision can be appealed to court.
13. The chairman of a meeting shall have power to admit or reject a proof for the purpose of voting, but his decision shall be subject to appeal to the court. if he is in doubt whether the proof of a creditor should be admitted or rejected he shall mark the proof as objected to and shall allow the creditor to vote, subject to the vote being declared invalid in the event of the objection being sustained. - 14 Verify source ↗
Power to rescind receiving order in certain cases ............................................................................................................. 6
AI-assisted research summary: A creditor may vote either in person or by proxy.
14. A creditor may vote either in person or by proxy. - 15 Verify source ↗
First and other meetings of creditors ..................................................................................................................................... 6
AI-assisted research summary: Proxy instruments must be in the prescribed form and are to be issued by the official receiver, or by the trustee after a trustee has been appointed.
15. Every instrument of proxy shall be in the prescribed form, and shall be issued by the official receiver, or after the appointment of a trustee, by the trustee. - 16 Verify source ↗
Debtor's statement of affairs ...................................................................................................................................................... 6
AI-assisted research summary: General and special proxy forms must be sent to creditors with the notice calling the creditors’ meeting, and the official receiver’s name or description must not be printed or inserted in the body of the proxy before it is sent.
16. General and special forms of proxy shall be sent to the creditors, together with a notice summoning a meeting of creditors, and neither the name nor the description of the official receiver, or of any other person, shall be printed or inserted in the body of any instrument of proxy before it is so sent. - 17 Verify source ↗
Public examination of debtor ..................................................................................................................................................... 7
AI-assisted research summary: A creditor may give a general proxy to any person or persons, and some proxies may be exercised by any one of several named persons.
17. A creditor may give a general proxy to any person or persons. a proxy given to more than one person may be exercised by any one of them and a proxy given to persons by a firm name may be exercised by any one of the partners of that firm or by any employee thereof authorised by a partner in that behalf. - 18 Verify source ↗
Compositions and schemes of arrangement ........................................................................................................................ 8
AI-assisted research summary: A creditor may give a special proxy to one or more people to vote at a specified meeting or adjournment on listed matters.
18. A creditor may give a special proxy to any person or persons to vote at any specified meeting or adjournment thereof on all or any of the following matters: (a) for or against any specific proposal for a composition or scheme of arrangement; (b) for or against the appointment of any specified person as trustee subject or not to any specified rate of remuneration, or as member of the committee of inspection, or for or against the continuance in office of any specified person as trustee or member of a committee of inspection; (c) on all questions relating to any matter, other than those above referred to, arising at any specified meeting or adjournment thereof. A special proxy given to more than one person or to persons by a firm name may be exercised as prescribed by rule 17. - 19 Verify source ↗
Effect of composition or scheme .............................................................................................................................................. 9
AI-assisted research summary: A proxy must not be used unless it is deposited with the official receiver or trustee together with at least one resolution affecting the trustee’s remuneration or conduct.
19. A proxy shall not be used unless it is deposited with the official receiver or trustee at least one resolution affecting the remuneration or conduct of the trustee. [Please note: paragraphs omitted in the original.] Second Schedule (Section 35) Proof of debts Proof in ordinary cases - 1 Verify source ↗
Short title .................................................................................................................................................................................................... 1
AI-assisted research summary: A debt may be proved by sending or delivering a sworn affidavit to the official receiver, or to the trustee if one has been appointed.
1. A debt may be proved by delivering or sending through the post in a prepaid letter to the official receiver, or, if a trustee has been appointed, to the trustee, an affidavit verifying the debt. - 2 Verify source ↗
Interpretation ............................................................................................................................................................................................. 1
AI-assisted research summary: A creditor may make the affidavit personally, or an authorised person may make it on the creditor’s behalf.
2. The affidavit may be made by the creditor himself, or by some person authorised by or on behalf of the creditor. if made by a person so authorised, it shall state his authority and means of knowledge. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 58 Bankruptcy Act, 1967 (Chapter 82) Zambia - 3 Verify source ↗
Acts of bankruptcy ................................................................................................................................................................................... 2
AI-assisted research summary: The affidavit must include or refer to a statement of account showing the debt details, and the vouchers must be specified if any.
3. The affidavit shall contain, or refer to, a statement of account showing the particulars of the debt, and shall specify the vouchers, if any, by which the same can be substantiated. the official receiver or trustee may at any time call for the production of the vouchers. - 4 Verify source ↗
Bankruptcy notices .................................................................................................................................................................................. 3
AI-assisted research summary: An affidavit must state whether the creditor is a secured creditor. If that is omitted, the creditor must surrender the security, unless the court is satisfied the omission was inadvertent.
4. The affidavit shall state whether the creditor is or is not a secured creditor, and if it is found at any time that the affidavit made by or on behalf of a secured creditor has omitted to state that he is a secured creditor, the creditor shall surrender his security to the official receiver or trustee for the general benefit of the creditors, unless the court on application is satisfied that the omission has arisen from inadvertence, and in that case the court may allow the affidavit to be amended upon such terms as to the repayment of any dividends or otherwise as the court may consider to be just. - 5 Verify source ↗
Jurisdiction to make receiving order .......................................................................................................................................... 3
AI-assisted research summary: A creditor must bear the cost of proving the debt, unless the court orders otherwise.
5. A creditor shall bear the cost of proving his debt, unless the court otherwise specially orders. - 6 Verify source ↗
Conditions on which creditor may petition ............................................................................................................................ 3
AI-assisted research summary: A creditor who has lodged a proof is entitled to inspect other creditors’ proofs at or before the first meeting and at other reasonable times.
6. Every creditor who has lodged a proof shall be entitled to see and examine the proofs of other creditors at or before the first meeting, and at all other reasonable times. - 7 Verify source ↗
Proceedings and order on creditor's petition .......................................................................................................................... 4
AI-assisted research summary: A creditor proving a debt must deduct all trade discounts, but does not have to deduct a cash discount of up to five per centum if it was agreed in advance.
7. A creditor proving his debt shall deduct therefrom all trade discounts, but he shall not be compelled to deduct any discount, not exceeding five per centum on the net amount of his claim, which he may have agreed to allow for payment in cash. Proof by secured creditors - 10 Verify source ↗
Power to appoint interim receiver ........................................................................................................................................... 5
AI-assisted research summary: A secured creditor may prove only for the balance due after deducting the realised or assessed value of the security, unless the creditor surrenders the security for the benefit of creditors.
10. If a secured creditor realises his security, he may prove for the balance due to him, after deducting the net amount realised. If a secured creditor surrenders his security to the official receiver or trustee for the general benefit of the creditors, he may prove for his whole debt. If a secured creditor does not either realise or surrender his security, he shall, before ranking for dividend, state in his proof the particulars of his security, the date when it was given and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed. - 11 Verify source ↗
Power to stay pending proceedings ........................................................................................................................................ 5
AI-assisted research summary: The trustee may redeem the security, may require it to be sold, and must respond in writing within 6 months if the creditor asks for an election.
11. (1) Where the security is so valued the trustee may at any time redeem it on payment to the creditor of the assessed value. (2) If the trustee is dissatisfied with the value at which the security is assessed, he may require that the property comprised in any security so valued be offered for sale at such times and on such terms and conditions as may be agreed on between the creditor and the trustee, or as, in default of such agreement, the court may direct. If the sale be by public auction, the creditor or the trustee on behalf of the estate, may bid or purchase. (3) The creditor may at any time, by notice in writing, require the trustee to elect whether he will or will not exercise his power of redeeming the security or requiring it to be realised, and if the trustee does not, within six months after receiving the notice, signify in writing to the creditor his election to exercise the power, he shall not be entitled to exercise it; and the equity of redemption, or any other interest in the property comprised in the security which is vested in the trustee, shall vest in the creditor, and the amount of his debt shall be reduced by the amount at which the security has been valued. - 12 Verify source ↗
Power to appoint special manager .......................................................................................................................................... 5
AI-assisted research summary: A creditor may amend a previously valued security’s valuation and proof if the trustee or court is satisfied of the reason; the amendment is at the creditor’s cost unless the trustee allows it without court application.
12. Where a creditor has so valued his security, he may at any time amend the valuation and proof on showing to the satisfaction of the trustee or the court that the valuation and proof were made bona fide on a mistaken estimate or that the security has diminished or increased in value since its previous valuation; but every such amendment shall be made at the cost of the creditor, and upon such terms as the court shall order, unless the trustee shall allow the amendment without application to the court. - 13 Verify source ↗
Advertisement of receiving order ............................................................................................................................................. 5
AI-assisted research summary: If a valuation is amended under rule 12, the creditor must repay any surplus dividend received, may be paid any dividend missed because the original valuation was inaccurate, and cannot disturb dividends already declared before the amendment.
13. Where a valuation has been amended in accordance with rule 12, the creditor shall forthwith repay any surplus dividend which he may have received in excess of that to which he would have been entitled on the amended valuation, or, as the case may be, shall be entitled to be paid out of any money, for the time being available for dividend, any dividend or share of dividend which he may have failed to receive by reason of the inaccuracy of the original valuation, before that money is made applicable to the payment of By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 59 Bankruptcy Act, 1967 (Chapter 82) Zambia any future dividend, but he shall not be entitled to disturb the distribution of any dividend declared before the date of the amendment. - 14 Verify source ↗
Power to rescind receiving order in certain cases ............................................................................................................. 6
AI-assisted research summary: If a creditor later realises security that has already been valued, the net amount realised replaces the earlier valuation and is treated as an amended valuation by the creditor.
14. If a creditor after having valued his security subsequently realises it, or if it is realised under the provisions of rule 11, the net amount realised shall be substituted for the amount of any valuation previously made by the creditor, and shall be treated in all respects as an amended valuation made by the creditor. - 15 Verify source ↗
First and other meetings of creditors ..................................................................................................................................... 6
AI-assisted research summary: A secured creditor who does not comply with the foregoing rules is excluded from any dividend share.
15. If a secured creditor does not comply with the foregoing rules, he shall be excluded from a share in any dividend. - 16 Verify source ↗
Debtor's statement of affairs ...................................................................................................................................................... 6
AI-assisted research summary: A creditor must not receive more than one hundred ngwee in the kwacha, subject to rule 11.
16. Subject to the provisions of rule 11, a creditor shall in no case receive more than one hundred ngwee in the kwacha. Proof in respect of distinct contracts - 17 Verify source ↗
Public examination of debtor ..................................................................................................................................................... 7
AI-assisted research summary: Shared ownership or partnership does not stop proof of contracts against the property liable for those contracts.
17. If a debtor was, at the date of the receiving order, liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contractor, and also as a member of a firm, the circumstances that the firm are in whole or in part composed of the same individuals, or that the sole contractor is also one of the joint contractors, shall not prevent proof in respect of the contracts, against the properties respectively liable on the contracts. Periodical payments - 18 Verify source ↗
Compositions and schemes of arrangement ........................................................................................................................ 8
AI-assisted research summary: If rent or another payment falls due at set times and a receiving order is made between those times, the person entitled to the money may prove for a proportionate part up to the date of the order.
18. When any rent or other payment falls due at stated times, and the receiving order is made at any time other than one of those times, the person entitled to the rent or payment may prove for a proportionate part thereof up to the date of the order as if the rent or payment accrued due from day to day. Interest
Part
part thereof up to the date of the order as if the rent or payment accrued due from day to day.
- 19 Verify source ↗
Effect of composition or scheme .............................................................................................................................................. 9
AI-assisted research summary: A creditor may prove for interest on an overdue debt or fixed sum in bankruptcy, up to 4% per year, if the stated conditions are met.
19. On any debt or sum certain, payable at a certain time or otherwise whereon interest is not reserved or agreed for, and which is overdue at the date of the receiving order and provable in bankruptcy, the creditor may prove for interest at a rate not exceeding four per centum per annum to the date of the order from the time when the debt or sum was payable, if the debt or sum is payable by virtue of a written instrument at a certain time, and if payable otherwise, then from the time when a demand in writing has been made giving the debtor notice that interest will be claimed from the date of the demand until the time of payment. Debt payable at a future time - 20 Verify source ↗
Adjudication of bankruptcy ...................................................................................................................................................... 10
AI-assisted research summary: A creditor may prove an unpaid debt as if it were presently due and may share in dividends, subject to a rebate of interest.
20. A creditor may prove for a debt not payable when the debtor committed an act of bankruptcy as if it were payable presently, and may receive dividends equally with the other creditors, deducting only thereout a rebate of interest at the rate of five per centum per annum computed from the declaration of a dividend to the time when the debt would have become payable according to the terms on which it was contracted. Admission or rejection of proofs - 21 Verify source ↗
Appointment of trustee ............................................................................................................................................................. 10
AI-assisted research summary: The trustee must examine each proof of debt and either admit it, reject it, or ask for more evidence. If the trustee rejects a proof, the trustee must give the creditor the reasons in writing.
21. The trustee shall examine every proof and the grounds of the debt, and in writing admit or reject it, in whole or in part, or require further evidence in support of it. if he rejects a proof, he shall state in writing to the creditor the grounds of the rejection. - 23 Verify source ↗
Duties of debtor as to discovery and realisation of property ...................................................................................... 12
AI-assisted research summary: The court may, on application, expunge or reduce a proof if the trustee thinks it was improperly admitted, and may reverse or vary the trustee’s decision if a creditor is dissatisfied.
23. If the trustee thinks that a proof has been improperly admitted, the court may, on the application of the trustee, after notice to the creditor who made the proof, expunge the proof or reduce its amount. If a creditor is dissatisfied with the decision of the trustee in respect of a proof, the court may, on the application of the creditor, reverse or vary the decision. - 24 Verify source ↗
Address and certain particulars to be furnished .............................................................................................................. 12
AI-assisted research summary: The court may expunge or reduce a proof if a creditor or the debtor applies and the trustee declines to interfere.
24. The court may also expunge or reduce a proof upon the application of a creditor, or the debtor, if the trustee declines to interfere in the matter. Miscellaneous By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 60 Bankruptcy Act, 1967 (Chapter 82) Zambia - 25 Verify source ↗
Arrest of debtor under certain circumstances ................................................................................................................... 12
AI-assisted research summary: A trustee may administer oaths and take affidavits when doing duties related to proofs.
25. For the purpose of any of his duties in relation to proofs, the trustee may administer oaths and take affidavits. - 26 Verify source ↗
Re-direction of debtor's letters ............................................................................................................................................... 13
AI-assisted research summary: If no trustee has been appointed, or there is a vacancy in the trustee’s office, the official receiver has the trustee’s powers for examining, admitting, and rejecting proofs.
26. The official receiver, when no trustee has been appointed or during any vacancy in the office of trustee, shall have all the powers of a trustee with respect to the examination, admission and rejection of proofs, and any act or decision of his in relation thereto shall be subject to the like appeal. Third Schedule (Section 163) Enactments repealed The Bankruptcy Act, 1914, of the United Kingdom. The Bankruptcy (Amendment) Act, 1926, of the United Kingdom. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 61
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Bankruptcy Act, 1967
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