Singapore legislation
Section 396
Section 396
Objection by creditor to discharge of bankrupt under section 395
(1)
Before issuing a certificate of discharge under section 395 in respect of any bankruptcy administered by the Official Assignee, the Official Assignee must serve on each creditor who has filed a proof of debt a notice of the Official Assignee’s intention to discharge the bankrupt, together with a statement of the Official Assignee’s reasons for wanting to do so.
(2)
A creditor who has been served with a notice under subsection (1) and who wishes to enter an objection to the Official Assignee issuing a certificate discharging the bankrupt may, within 21 days after the date of the Official Assignee’s notice, furnish the Official Assignee a statement of the grounds of the creditor’s objection.
(3)
A creditor who does not furnish to the Official Assignee a statement of the grounds of the creditor’s objection in accordance with subsection (2) is deemed to have no objection to the discharge.
(4)
A creditor who has furnished the Official Assignee with a statement of the grounds of the creditor’s objection in accordance with subsection (2) may, within 21 days after being informed by the Official Assignee that the objection has been rejected, make an application to the Court for an order prohibiting the Official Assignee from issuing the certificate of discharge.
(5)
Every application under subsection (4) must be served on the Official Assignee and on the bankrupt, and the Court must hear the Official Assignee and the bankrupt before making an order on the application.
(6)
Before requesting the Official Assignee to issue a certificate of discharge under section 395, a trustee in bankruptcy administering a bankrupt’s estate must serve, on each creditor who has filed a proof of debt, a notice of the trustee’s intention to request the Official Assignee to discharge the bankrupt, together with a statement of the trustee’s reasons why the bankrupt ought to be discharged.
(7)
A creditor who has been served with a notice under subsection (6) and who wishes to enter an objection to the Official Assignee issuing a certificate discharging the bankrupt may, within 21 days after the date of the trustee’s notice, furnish to the trustee in bankruptcy a statement of the grounds of the creditor’s objection.
(8)
A creditor who does not furnish to the trustee in bankruptcy a statement of the grounds of the creditor’s objection in accordance with subsection (7) is deemed to have no objection to the discharge.
(9)
A creditor who has furnished the trustee in bankruptcy with a statement of the grounds of the creditor’s objection in accordance with subsection (7) may, within 21 days after being informed by the trustee that the creditor’s objection has been rejected, make an application to the Court for an order prohibiting the Official Assignee from issuing the certificate of discharge.
(10)
Every application under subsection (9) must be served on the Official Assignee, the trustee in bankruptcy and the bankrupt, and the Court must hear the Official Assignee, the trustee and the bankrupt before making an order on the application.
(11)
On an application made under subsection (4) or (9), the Court may, if it thinks it just and expedient —
dismiss the application;
subject to subsections (13) and (14), make an order that the bankrupt must not be granted a certificate of discharge by the Official Assignee for a period not exceeding 2 years; or
make an order permitting the Official Assignee to issue a certificate discharging the bankrupt but subject to such conditions as the Court thinks fit to impose, including conditions with respect to —
any income which may be subsequently due to the bankrupt after the bankrupt’s discharge; or
any property devolving upon the bankrupt, or acquired by the bankrupt, after the bankrupt’s discharge,as may be specified in the order.
(12)
The Court must, when making an order under subsection (11)(b) on an application under subsection (4), appoint a trustee in bankruptcy to administer the bankrupt’s estate in place of the Official Assignee.
(13)
Subject to subsection (14), an order made under subsection (11)(b) must not postpone the grant of the certificate of discharge beyond —
in any case where the bankruptcy is not a repeat bankruptcy of the bankrupt, 9 years after the administration date of the bankruptcy; or
in any case where the bankruptcy is a repeat bankruptcy of the bankrupt, 11 years after the administration date of the bankruptcy.
(14)
When making an order under subsection (11)(b), the Court may, in an exceptional case, postpone the grant of the certificate of discharge beyond the period mentioned in subsection (13)(a) or (b), but not beyond the period mentioned in subsection (11)(b), if the Court, having regard to the conduct of the bankrupt, considers it just to do so.
(15)
For the purposes of calculating the periods of time mentioned in subsection (13), there must be disregarded any period —
during which the bankrupt was outside Singapore; and
for which the bankrupt did not obtain the Official Assignee’s permission to leave, remain or reside outside Singapore.