Section 122

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

The Director General of Insolvency may present to the court a petition in the prescribed form praying for an order for the administration in bankruptcy of the estate of any deceased debtor.

Upon the prescribed notice being given to the legal representative, if any, of the deceased debtor the court may, in the prescribed manner, upon proof of the petitioner’s debt, unless the court is satisfied that there is a reasonable probability that the estate will be sufficient for the payment of the debts owing by the deceased, make an order for the administration in bankruptcy of the deceased debtor’s estate, or may, upon cause shown, dismiss the petition with or without costs.

Insolvency 119

An order of administration under this section shall not be made until the expiration of two months from the date of the grant of probate or letters of administration, unless with the concurrence of the legal representative of the deceased debtor, or unless the petitioner proves to the satisfaction of the court that the debtor committed an act of bankruptcy within three months prior to his decease.

A petition for administration under this section shall not be presented to the court after proceedings have been commenced for the administration of the deceased debtor’s estate; but the court may, in that case, on the application of any creditor and on proof that the estate is insufficient to pay its debts in the prescribed manner, make an order for the administration of the estate of the deceased debtor in bankruptcy, and the like consequences shall ensue as under an administration order made on the petition of a creditor.

Upon an order being made for the administration of a deceased debtor’s estate under this section the property of the debtor shall vest in the Director General of Insolvency as trustee thereof, and he shall forthwith proceed to realize and distribute the same in accordance with this Act.

Section 31 so far as they relate to persons other than the debtor, and, with the modifications hereinafter mentioned,

Part III shall, so far as the same are applicable, apply to the case of an administration order under this section. Sections 50, 51 and 52

shall apply in the case of an administration order under this section as if the administration order were a bankruptcy order made under section 4.

In the administration of the property of the deceased debtor under an order of administration, the Director General of Insolvency shall have regard to any claims by the legal representative of the deceased debtor to payment of the proper funeral and testamentary expenses incurred by him in and about the debtor’s estate; such claims shall be deemed a preferential debt under the order and be payable in full out of the debtor’s estate in priority to all other debts.

Act 360

If on the administration of a deceased debtor’s estate any surplus remains in the hands of the Director General of

Insolvency, after payment in full of all the debts due from the debtor, together with the costs of the administration and interest as provided by this Act in case of bankruptcy, the surplus shall be paid over to the legal representative of the deceased debtor’s estate or dealt with in such other manner as is prescribed.

Notice to the legal representative of a deceased debtor of the presentation by a creditor of a petition under this section shall, in the event of an order for administration being made thereon, be deemed to be equivalent to notice of an act of bankruptcy, and after the notice no payment or transfer of property made by the legal representative shall operate as a discharge to him as between himself and the Director General of Insolvency, but save as aforesaid, nothing in this section shall invalidate any payment made or act or thing done in good faith by the legal representative before the date of the order for administration.

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

General Rules

Power to make rules