Insolvency (Amendment) Act 2023

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

in the shoulder note, by substituting for the words

“First and other meetings of creditors” the words

“Meeting of creditors”;

in subsection (1)—

by substituting for the words “a general meeting of his creditors, in this Act referred to as the first meeting of creditors, shall” the words

“, a meeting of creditors may”; and

in subsection (2), by substituting for the words

“first and other meetings of creditors” the words

“meeting of creditors”.

in subsection (2), by substituting for the words

“meeting of the creditors” the words “meeting of creditors”;

in subsection (3), by inserting after the words

“subsequent meeting” the words “of creditors”; and

in subsection (4), by inserting after the words

“subsequent meeting” the words “of creditors”.

Insolvency (Amendment)

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in subsection (2a)—

in paragraph (c), by deleting the word “and” at the end of the paragraph;

a bankrupt aged seventy years and above and in the opinion of the Director General of

Insolvency, is incapable of contributing to the administration of his estate.”; and

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by inserting after subsection (6) the following subsection:

“(7)  For the purposes of paragraph (2a)(e),

“mental disorder” and “psychiatrist” have the meaning assigned to them in the Mental Health Act 2001

[Act 615].”.

Amendment of section 33c

in the shoulder note, by inserting after the words

“Automatic discharge” the words “and suspension of automatic discharge”;

by substituting for subsection (1) the following subsection:

“(1)  A bankrupt shall be—

discharged automatically from bankruptcy on the expiration of three years from the date of the submission of the statement of affairs under subsection 16(1)—

if the bankrupt has paid the sum of money determined by the

Director General of Insolvency, for the purposes of the administration of the bankrupt’s estate, having regard to the financial ability of the bankrupt; and

suspended from the automatic discharge on the expiration of three years from the date of the submission of the statement of affairs under subsection 16(1) for a period not exceeding two years if the bankrupt has failed to comply with his duties and obligations under the Act.”;

Insolvency (Amendment)

in subsection (2)—

by substituting for the words “Contribution of the bankrupt’s provable debt referred to in paragraph (1)(a) shall be determined by the

Director General of Insolvency and” the words

“For the purposes of subparagraph (1)(a)(i), in determining the sum of money to be paid by the bankrupt,”;

by inserting after paragraph (f) the following paragraph:

“(g)  the debt provable in bankruptcy.”;

by inserting after subsection (2) the following subsection:

“(2a)  For the purposes of subsection (2) and the administration of the bankrupt’s estate, the Director

General of Insolvency may request the bankrupt to provide such further information as may be determined by the

Director General of Insolvency including information in respect of the income, expected income and properties of the bankrupt.”;

in subsection (3)—

by substituting for the words “a discharge under this section” the words “an automatic discharge under paragraph (1)(a)”;

in subsection (4), by substituting for the words

“discharge under this section” wherever appearing the words “automatic discharge under paragraph (1)(a)”;

by inserting after subsection (8) the following subsections:

“(8a)  For the purposes of suspension of an automatic discharge under paragraph (1)(b), the Director General of Insolvency shall serve a notice of the suspension of the automatic discharge on the bankrupt and on each creditor who has filed a proof of debts not less than six months before the expiration of the period referred to in paragraph (1)(b), but such notice shall not be served earlier than a year before the expiration of such period.

The suspension of the automatic discharge shall be effective on the date stated in the notice under subsection (8a).

Where the Director General of Insolvency suspends the automatic discharge under paragraph (1)(b), the bankrupt shall—

by renumbering the existing section as subsection (1);

by inserting after the word “therewith” in the renumbered subsection (1) the words “or by electronic communication in accordance with the prescribed rules”; and

by inserting after the renumbered subsection (1) the following subsection:

“(2)  Where a person has given his consent for a notice or other documents to be served on him through electronic communication, the notice or other documents

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shall be deemed to have been served at the time when the notice or other documents are transmitted to his account through the electronic communication.”.

Amendment of Schedule A

by deleting paragraph 1;

by substituting for paragraph 2 the following paragraph:

“2.  The Director General of Insolvency shall summon—

in the case of a debtor’s petition, the creditors mentioned in the bankrupt’s statement of affairs and the creditors who have filed the proof of debts, and the bankrupt; or

in the case of a creditor’s petition, the petitioner, the creditors mentioned in the bankrupt’s statement of affairs and the creditors who have filed the proof of debts, and the bankrupt, to a meeting of creditors by giving not less than seven days’ notice of the time and place thereof in the prescribed manner.”;

in paragraph 4, by inserting after the words “at such place” the words “or in such manner including the use of remote communication technology”;

in paragraph 5—

by substituting for the words “may at any time”

the word “shall”; and

in paragraph 6—

by substituting for the words “Meetings subsequent to the first meeting shall be summoned”

the words “Any meeting of creditors subsequent to the meeting mentioned in paragraph 2

shall be summoned by the Director General of

Insolvency”; and

in paragraph 7—

by inserting after the words “every meeting”

the words “of creditors”; and

a person who has been adjudged bankrupt who has filed his statement of affairs shall be discharged automatically from bankruptcy—

if a person who has been adjudged bankrupt has paid the sum of money determined by the

Director General of Insolvency, for the purposes of the administration of his estate, having regard to his financial ability; and

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a person who has been adjudged bankrupt shall be suspended from the automatic discharge for a period not exceeding two years if the person who has been adjudged bankrupt has failed to comply with his duties and obligations under the principal Act;

for the purposes of automatic discharge, the Director

General of Insolvency shall serve a notice of the automatic discharge on each creditor who has filed a proof of debts within twelve months after the coming into operation of this Act; and

for the purposes of suspension of the automatic discharge, the Director General of Insolvency shall serve a notice of the suspension of the automatic discharge on the person who has been adjudged bankrupt and on each creditor who has filed a proof of debts within twelve months after the coming into operation of this Act.