Singapore legislation
Section 43
Section 43
Liability of trustee
(1)
Where —
the trustee of a bankrupt’s estate has misapplied or retained, or become accountable for, any money or other property comprised in the bankrupt’s estate; or
the estate of a bankrupt has suffered any loss in consequence of any misfeasance or breach of fiduciary or other duty by a trustee of the estate in the carrying out of his functions,the Official Assignee or any creditor of the bankrupt or the bankrupt himself may apply to the court for any order specified in subsection (2).
(2)
Upon hearing an application made under subsection (1), the court may, for the benefit of the estate, order the trustee to —
repay, restore or account for any money or other property (together with interest at such rate as the court may think just); or
pay such sum by way of compensation in respect of the misfeasance or breach of fiduciary or other duty as the court may think just.
(3)
Any order made by the court under subsection (2) shall be without prejudice to any liability on the part of the trustee arising apart from this section.
(4)
Where a trustee seizes or disposes of any property which is not comprised in the bankrupt’s estate and at the time of the seizure or disposal the trustee believes, and has reasonable grounds for believing, that he is entitled (whether in pursuance of an order of the court or otherwise) to seize or dispose of that property, the trustee —
shall not be liable to any person (whether under this section or otherwise) in respect of any loss or damage resulting from the seizure or disposal except in so far as the loss or damage is caused by the negligence of the trustee; and
shall have a lien on the property or the proceeds of its sale for such of the expenses of the bankruptcy as were incurred in connection with the seizure or disposal.