BANKRUPTCY ACT

Topics: Bankruptcy, Debtor, Insolvency law Pages: 85 (38305 words) Published: June 16, 2014
LAWS OF KENYA

BANKRUPTCY ACT
CHAPTER 53

Revised Edition 2012 [2010]
Published by the National Council for Law Reporting
with the Authority of the Attorney-General
www.kenyalaw.org

[Rev. 2012]

Bankruptcy

CAP. 53

CHAPTER 53
BANKRUPTCY ACT
ARRANGEMENT OF SECTIONS
PART I – PRELIMINARY
Section
1.
2.

Short title.
Interpretation.

PART II – PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE
Acts of Bankruptcy
3.
4.

Acts of bankruptcy.
Bankruptcy notices.

Receiving Order
5.
6.
7.
8.
9.
10.
11.
12.
13.

Jurisdiction to make receiving order.
Conditions on which creditor may petition.
Proceedings and order on creditor’s petition.
Debtor’s petition and order thereon.
Effect of receiving order.
Power to appoint interim receiver.
Power to stay pending proceedings.
Power to appoint special manager.
Advertisement of receiving order.

Proceedings Consequent on Order
14.
15.
16.

First meeting of creditors.
Meetings to be governed by rules.
Debtor’s statement of affairs.

Public Examination of the Debtor
17.

Public examination of debtor.

18.
19.

Compositions and schemes of arrangement.
Effect of composition or scheme.

20.
21.
22.
23.

Adjudication of bankruptcy where composition not accepted or approved. Appointment of trustee.
Committee of inspection.
Power to accept composition or scheme after adjudication.

24.
25.

Duties of debtor as to discovery and realization of property. Address and certain particulars to be furnished.

Composition or Scheme of Arrangement

Adjudication of Bankruptcy

Control over Person and Property of Debtor

B3 - 3

[Issue 1]

CAP. 53

Bankruptcy

[Rev. 2012]

Section
26.
27.
28.
29.
30.
31.
32.
33.
34.

Arrest of debtor in certain circumstances.
Redirection of debtor’s letters.
Inquiry as to debtor’s conduct, dealings and property.
Bankrupt to apply for discharge within time specified by court. Fraudulent settlements.
Failure to apply for discharge.
Effect of order of discharge.
Power of court to annual adjudication.
Bankrupt not to manage business with relative.

PART III – ADMINISTRATION OF PROPERTY
Proof of Debts
35.
36.
37.
38.
39.
40.
41.

Kinds of debts provable in bankruptcy.
Mutual credit and set-off.
Rules as to proof of debts.
Priority of debts.
Preferential claim in case of apprenticeship.
Landlord’s power of distress in case of bankruptcy.
Postponement of claims by relatives.

Property Available for Payment of Debts
42.
43.
44.

Relation back to trustee’s title.
Description of bankrupt’s property divisible amongst creditors. Provisions as to second bankruptcy.

Effect of Bankruptcy on Antecedent and Other Transactions
45.
46.
47.
48.
49.
50.
51.
52.

Restriction of rights of creditor under execution or attachment. Duties of bailiff as to goods taken in execution.
Avoidance of certain settlements, covenants and payments.
Assignments to be registered.
Avoidance of preference in certain cases.
Protection of bona fide transactions without notice.
Validity of certain payments to bankrupt and assignee.
Dealings with undischarged bankrupt.

Realization of Property
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.

Possession of property by trustee.
Seizure of property of bankrupt.
Appropriation of proportion of pay or salary to creditors.
Appropriation of income restrained from anticipation.
Vesting and transfer of property.
Disclaimer of onerous property and rescission of contracts.
Powers of trustee to deal with property.
Powers exercisable by trustee with permission of committee of inspection. Power to allow bankrupt to manage property.
Allowance to bankrupt for maintenance or service.

[Issue 1]

B3 - 4

[Rev. 2012]

Bankruptcy

CAP. 53

Section
63.
64.
65.

Right of trustee to inspect goods pawned, etc.
Limitation of trustee’s powers in relation to copyright.
Protection of official receiver...
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