Section 105

Where in the opinion of the court a debtor ought not to have been adjudged bankrupt, or where it is proved to the satisfaction of the court that the debts of the bankrupt are paid in full, or where it appears to the court that proceedings are pending in Malaysia for the distribution of the bankrupt’s estate and effects among his creditors under the bankruptcy or insolvency law of Malaysia and that the distribution ought to take place in Malaysia, the court may annul the adjudication.

Where an adjudication is annulled under this section, all sales and dispositions of property, and payments duly made, and all acts theretofore done by the Official Assignee, or other person acting under his authority, or by the court, shall be valid, but the property of the debtor who was adjudged bankrupt shall vest in such person as the court appoints, or in default of any such appointment revert to the debtor for all his estate or interest therein on such terms and subject to such conditions, if any, as the court declares by order.

Notice of the order annulling an adjudication shall be forthwith gazetted and published in at least one local paper.

For the purposes of this section any debt disputed by a debtor shall be considered as paid in full if the debtor enters into a bond, in such sum and with such sureties as the court approves, to pay the amount to be recovered in any proceeding for the recovery of or concerning the debt with costs, and any debt due to a creditor who cannot be found or cannot be identified shall be considered as paid in full if paid into court.

When the court annuls the adjudication under this section it shall also rescind the receiving order.