Singapore legislation
Clause 316
Clause 316
Proceedings on creditor’s bankruptcy application
(1)
The Court hearing a creditor’s bankruptcy application must not make a bankruptcy order on the application unless the Court is satisfied that —
the debt or any one of the debts in respect of which the application is made is a debt which, having been payable at the date of the application, has neither been paid nor secured or compounded for; and
where the debtor does not appear at the hearing, the application has been duly served on the debtor.
(2)
Where a creditor’s bankruptcy application which relies on a statutory demand is made, pursuant to section 314, before 21 days have elapsed after the statutory demand was served, the Court hearing the application must not make a bankruptcy order until at least 21 days have elapsed after the statutory demand was served.
(3)
The Court may dismiss the application if —
it is not satisfied with the proof of the applicant creditor’s debt or debts;
it is not satisfied with the proof of the service of the application on the debtor;
it is satisfied that the debtor is able to pay all of the debtor’s debts;
it is satisfied that the debtor has made an offer to secure or compound for the applicant creditor’s debt the acceptance of which offer would have required the dismissal of the application and the offer has been unreasonably refused by the applicant creditor; or
it is satisfied that for other sufficient cause no order ought to be made on the application.
(4)
In determining for the purposes of subsection (3)(c) whether the debtor is able to pay all of the debtor’s debts, the Court is to take into account the debtor’s contingent and prospective liabilities.
(5)
When a bankruptcy application has been made against a debtor on the ground that the debtor —
has failed to pay a judgment debt, and there is pending an appeal from or an application to set aside, the judgment or order by virtue of which the judgment debt is payable; or
has failed to comply with a statutory demand, and there is pending an application to set aside the statutory demand,the Court may, if it thinks fit, stay or dismiss the application.
(6)
Where the debtor appears at the hearing of the application and denies that the debtor is —
indebted to the applicant; or
indebted to such an amount as would justify the applicant making a bankruptcy application against him,the Court may, subject to subsection (7), stay all proceedings on the application for such time as may be required for trial of the question relating to the debt.
(7)
The Court may not order any stay of proceedings under subsection (6) unless the debtor furnishes such security as the Court may order for payment to the applicant of —
any debt which may be established against the debtor in due course of law; and
the costs of establishing the debt.
(8)
Where proceedings are stayed, the Court may, if by reason of the delay caused by the stay of proceedings or for any other cause it thinks just, make a bankruptcy order on the application of some other creditor and dismiss, on such terms as it thinks just, the application in which proceedings have been stayed.
(9)
If a bankruptcy order may be made on the bankruptcy application, the Court must, instead of making the order, adjourn the bankruptcy application for a period of 6 months or such other period as the Court may direct and refer the matter to the Official Assignee for the purpose of enabling the Official Assignee to determine whether the debtor is suitable for a debt repayment scheme under Part 15, if all of the following qualifying criteria are satisfied:
the debt or the aggregate of the debts in respect of which the bankruptcy application is made does not exceed the prescribed amount;
the debtor is not an undischarged bankrupt, and has not been a bankrupt at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made, under this Act;
a voluntary arrangement under Part 14 in respect of the debtor is not in effect, and was not in effect at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made;
the debtor is not subject to any debt repayment scheme under Part 15, and has not been subject to any such debt repayment scheme at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made;
the debtor is not a sole proprietor, a partner of a firm within the meaning of the Partnership Act, or a partner in a limited liability partnership.
(10)
The Court is to proceed to hear a bankruptcy application adjourned under subsection (9) if —
the Official Assignee reports to the Court under section 289(2) that the debtor is not suitable for a debt repayment scheme under Part 15; or
at the end of the period of adjournment, a debt repayment scheme has not commenced under Part 15 in respect of the debtor.
(11)
If at any time during the period of adjournment of a bankruptcy application under subsection (9) a debt repayment scheme commences under Part 15 in respect of the debtor, the bankruptcy application is deemed to be withdrawn on the date of commencement of the debt repayment scheme.
(12)
The Court may give such orders or directions as it thinks fit for the adjournment, hearing or disposal of a bankruptcy application mentioned in subsection (9).
(13)
For the purpose of subsection (9)(d), a person in respect of whom the Official Assignee issues —
a certificate of inapplicability of a debt repayment scheme under section 299; or
a certificate of completion of a debt repayment scheme under section 301(1) —
which states that all the debts (including interest on each of such debts at the rate to which a creditor is entitled under any written law or rule of law) of the person which have been proved under, and all the costs and expenses of, the debt repayment scheme have been paid in full; and
which has not been revoked under section 302(1),is not to be treated as having been subject to that debt repayment scheme.
(14)
In subsection (9)(a), “debt” has the same meaning as in section 288(1).