Singapore legislation

Section 354

of Insolvency, Restructuring and Dissolution Act 2018

Section 354

Right of landlord to distrain for rent

(1)

The right of any landlord or other person to whom rent is payable to distrain upon the goods and effects of a bankrupt for rent due to the landlord or other person from the bankrupt is, subject to subsection (5), available against goods and effects comprised in the bankrupt’s estate in respect only of not more than 3 months’ rent accrued due before the commencement of the bankruptcy.

(2)

Where a landlord or other person to whom rent is payable has distrained for rent upon the goods and effects of an individual to whom a bankruptcy application relates and a bankruptcy order is subsequently made on that application, any amount recovered by way of that distress which —

(a)

is in excess of the amount which by virtue of subsection (1) would have been recoverable after the commencement of the bankruptcy; or

(b)

is in respect of rent for a period or part of a period after the distress was levied,is held by the landlord or other person in trust for the bankrupt as part of the bankrupt’s estate and the landlord or other person must, upon being given notice by the Official Assignee to do so, make over to the Official Assignee the amount so held in trust by the landlord or other person for the bankrupt.

(3)

Where any person (whether or not a landlord or person entitled to rent) has distrained upon the goods or effects of an individual who is adjudged bankrupt before the end of the period of 3 months beginning with the distraint, so much of those goods or effects, or of the proceeds of their sale, as is not held by the person in trust for the bankrupt under subsection (2) are to be charged for the benefit of the bankrupt’s estate with the preferential debts of the bankrupt to the extent that the bankrupt’s estate is for the time being insufficient for meeting those debts.

(4)

Where by virtue of any charge under subsection (3) any person surrenders any goods or effects to the Official Assignee, that person ranks, in respect of the amount of the proceeds of the sale of those goods or effects by the Official Assignee or (as the case may be) the amount of the payment, as a preferential creditor of the bankrupt, except as against so much of the bankrupt’s estate as is available for the payment of preferential creditors by virtue of the surrender or payment.

(5)

A landlord or other person to whom rent is payable is not entitled at any time after the discharge of a bankrupt to distrain upon any goods or effects comprised in the bankrupt’s estate.

(6)

Any right to distrain against property comprised in a bankrupt’s estate is exercisable despite that the property has vested in the Official Assignee.

(7)

The provisions of this section do not affect a landlord’s right in a bankruptcy to prove for any debt due to the landlord from the bankrupt in respect of rent.

Section 354 — Insolvency, Restructuring and Dissolution Act 2018