Singapore legislation
Section 328
Section 328
Restrictions on dispositions of property by bankrupt
(1)
Where a person is adjudged bankrupt, any disposition of property made by the bankrupt during the period beginning on the day of the making of the bankruptcy application and ending on the day of the making of the bankruptcy order is void except to the extent that such disposition has been made with the consent of, or been subsequently ratified by, the Court.
(2)
For the purpose of this section, a disposition of property includes any payment (whether in cash or otherwise) made to any person by the bankrupt and accordingly, where any payment is void by virtue of this section, the person to whom the payment was made holds the sum paid for the bankrupt as part of the bankrupt’s estate.
(3)
Nothing in this section gives a remedy against any person in respect of —
any property or payment which the person received from the bankrupt before the commencement of the bankruptcy in good faith, for value and without notice that the bankruptcy application had been made; or
any interest in property which derives from an interest in respect of which there is, by virtue of this subsection, no remedy.
(4)
Where, after the commencement of his or her bankruptcy, the bankrupt has incurred a debt to a banker or any other person by reason of the making of a payment which is void under this section, that debt is deemed for the purposes of Parts 3 and 13 to 22 to have been incurred before the commencement of the bankruptcy unless —
that banker or person had notice of the bankruptcy before the debt was incurred; or
it is not reasonably practicable for the amount of the payment to be recovered from the person to whom it was made.
(5)
A disposition of property is void under this section even if the property is not or, as the case may be, would not be comprised in the bankrupt’s estate, but nothing in this section affects any disposition made by a person of property held by that person on trust for any other person.