100. Relevant time under sections 98 and 99
Feedback & supportLast amended by an amending law of 2009. 2 amendments in all.
Subject to this section, the time at which an individual enters into a transaction at an undervalue or gives an unfair preference shall be a relevant time if the transaction is entered into or the preference given —
transaction
“transaction” includes any gift, agreement or arrangement, and any reference to entering into a transaction shall be construed accordingly;
in the case of a transaction at an undervalue —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption referred to in section 62(d), within the period commencing 5 years before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of 5 years ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt;
in the case of an unfair preference which is not a transaction at an undervalue and which is given to a person who is an associate of the individual (otherwise than by reason only of being his employee) —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption referred to in section 62(d), within the period commencing 2 years before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of 2 years ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case of an unfair preference which is not a transaction at an undervalue —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption referred to in section 62(d), within the period commencing 6 months before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of 6 months ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt.
Where an individual enters into a transaction at an undervalue or gives an unfair preference at a time mentioned in subsection (1)(a), (b) or (c), that time is not a relevant time for the purposes of sections 98 and 99 unless the individual —
is insolvent at that time; or
becomes insolvent in consequence of the transaction or preference.
Where a transaction is entered into at an undervalue by an individual with a person who is an associate of his (otherwise than by reason only of being his employee), the requirements under subsection (2) shall be presumed to be satisfied unless the contrary is shown.
For the purposes of subsection (2), an individual shall be insolvent if —
he is unable to pay his debts as they fall due; or
the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
In this section, “relevant bankruptcy application” means the bankruptcy application made against an individual that resulted in the debt repayment scheme referred to in section 62(d) in respect of that individual.
relevant bankruptcy application
“relevant bankruptcy application”, in relation to a debtor under a debt repayment scheme, means the bankruptcy application adjourned by the court under section 65(7) or 67(3) which enabled the Official Assignee to determine the debtor’s suitability for the scheme and to implement the scheme;