Section 15

No pension or gratuity which would under this Act be granted to a person shall be so granted if, at the date he became eligible for the grant of such pension, he has been adjudged a bankrupt or declared insolvent by judgment of a court of competent jurisdiction in Singapore or elsewhere and has not obtained his discharge from such adjudication or declaration.

If any person to whom a pension has been granted under this Act is adjudged a bankrupt or is declared insolvent by judgment of any such court, then such pension shall forthwith cease.

Where a pension or gratuity ceases or is not granted by virtue of this section, it shall be lawful for the President, from time to time, during the remainder of the life of the person whose pension has ceased or who would have been eligible to receive the pension, or during such shorter period or periods, either continuously or otherwise, as the President thinks fit, to direct all or any part of the moneys to which that person would have been eligible to receive by way of pension or gratuity, had he not become a bankrupt or insolvent, to be paid to or applied for the maintenance and benefit of all or any (to the exclusion of others) of the following, namely, the person himself and his wife, child or children, or other dependants in such proportions and manner as the President thinks proper; and such moneys shall be paid or applied accordingly.

Moneys applied for the discharge of the debts of the person whose pension has ceased or not been granted shall, for the purposes of subsection (3), be regarded as applied for his benefit.

When a person to whom a pension or gratuity has not been granted, or whose pension has ceased under the provisions of this section, obtains a full and proper discharge from his bankruptcy or insolvency, his pension or gratuity or both, as the case may be, shall be restored to him with effect from the date of the discharge.