Singapore legislation

Clause 373

of Insolvency, Restructuring and Dissolution Bill

Clause 373

Power to disclaim onerous property

(1)

The Official Assignee may, by the giving of the prescribed notice, disclaim any onerous property and may do so despite having taken possession of it, endeavoured to sell it, or otherwise exercised rights of ownership in relation to it.

(2)

The following is onerous property for the purposes of this section:

(a)

any unprofitable contract;

(b)

any other property comprised in the bankrupt’s estate which —

(i)

is unsaleable;

(ii)

is not readily saleable; or

(iii)

may give rise to a liability to pay money or perform any other onerous act.

(3)

A disclaimer under this section —

(a)

determines, as from the date of the disclaimer, the rights, interests and liabilities of the bankrupt and the bankrupt’s estate in or in respect of the property disclaimed; and

(b)

discharges the Official Assignee from all personal liability in respect of that property as from the commencement of the Official Assignee’s trusteeship,but does not, except so far as is necessary for the purpose of releasing the bankrupt, the bankrupt’s estate and the Official Assignee from any liability, affect the rights and liabilities of any other person.

(4)

A notice of disclaimer may not be given under subsection (1) in respect of any property —

(a)

in the case of property subject to any written law set out in the first column of the Second Schedule, unless —

(i)

the Official Assignee has given written notice of the Official Assignee’s intention to disclaim the property, to the relevant person set out opposite in the second column; and

(ii)

a period of 28 days starting on the date of the notice mentioned in sub‑paragraph (i) has elapsed; or

(b)

in any case, if —

(i)

a person interested in the property has applied in writing to the Official Assignee or one of the Official Assignee’s predecessors as trustee requiring the Official Assignee or that predecessor to decide whether or not the Official Assignee or that predecessor will disclaim the property; and

(ii)

the notice of disclaimer is not given under this section in respect of that property within a period of 28 days, or such longer period as the Court may allow, starting on the date of the application mentioned in sub‑paragraph (i).

(5)

The Official Assignee is deemed to have adopted any contract which by virtue of this section the Official Assignee is not entitled to disclaim.

(6)

Any person sustaining loss or damage in consequence of the operation of a disclaimer under this section is deemed to be a creditor of the bankrupt to the extent of the loss or damage and accordingly may prove for the loss or damage as a bankruptcy debt.

Read in full context — Insolvency, Restructuring and Dissolution Bill →