Bankruptcy Act, 1967
- Commenced on 14 April 1967
- [This is the version of this document at 31 December 1996.]
Part I – Preliminary
1. Short titleThis Act may be cited as the Bankruptcy Act.
2. InterpretationIn this Act, unless the context otherwise requires—"affidavit" includes a statutory declaration, affirmation, and attestation on honour;"available act of bankruptcy" means any act of bankruptcy available for a bankruptcy petition at the date of the presentation of the petition on which the receiving order is made;"the court" means the High Court;"debt provable in bankruptcy" or "provable debt" includes any debt or liability by this Act made provable in bankruptcy;"gazetted" means published in the Gazette;"general rules" and "rules" include forms;"goods" include all chattels personal;"local bank" means any bank in Zambia;"oath" includes affirmation, declaration, and attestation on honour;"ordinary resolution" means a resolution decided by a majority in value of the creditors present, personally or by proxy, at a meeting of creditors and voting on the resolution;"prescribed" means prescribed by general rules within the meaning of this Act;"property" includes money, goods, things in action, land, and every description of property whether real or personal and whether situate in Zambia or elsewhere; and also obligations, easements, and every description of estate, interest and profit, present or future, vested or contingent, arising out of or incident to property as herein defined;"reciprocating country" means any country declared a reciprocating country under section one hundred and forty-nine;"reciprocating court" means a court having jurisdiction in bankruptcy or insolvency in a reciprocating country;"relative by consanguinity or affinity" means a husband, wife, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, cousin and shall include relationship by adoption and whether legitimate or illegitimate and on the half blood as well as of the whole blood and any person who is married to any of the foregoing;"resolution" means ordinary resolution;"secured creditor" means a person holding a mortgage charge or lien on the property of the debtor, or any part thereof, as a security for a debt due to him from the debtor;"sheriff" includes any officer charged with the execution of a writ or other process;"special resolution" means a resolution decided by a majority in number and three-fourths in value of the creditors present, personally or by proxy, at a meeting of creditors and voting on the resolution;"trustee" means the trustee in bankruptcy of a debtor's estate.
Part II – Proceedings from act of bankruptcy to discharge
3. Acts of bankruptcy
4. Bankruptcy noticesA bankruptcy notice under this Act shall be in the prescribed form, and shall require the debtor to pay the judgment debt or sum ordered to be paid in accordance with the terms of the judgment or order, or to secure or compound for it to the satisfaction of the creditor or the court, and shall state the consequences of non-compliance with the notice, and shall be served in the prescribed manner:Provided that a bankruptcy notice—
5. Jurisdiction to make receiving orderSubject to the conditions hereinafter specified, if a debtor commits an act of bankruptcy the court may, on a bankruptcy petition being presented either by a creditor or by the debtor, make an order, in this Act called a receiving order, for the protection of the estate.
6. Conditions on which creditor may petition
7. Proceedings and order on creditor's petition
8. Debtor's petition and order thereon
9. Effect of receiving order
10. Power to appoint interim receiverThe court may, if it is shown to be necessary for the protection of the estate, at any time after the presentation of a bankruptcy petition, and before a receiving order is made, appoint the official receiver to be interim receiver of the property of the debtor, or of any part thereof, and direct him to take immediate possession thereof or of any part thereof.
11. Power to stay pending proceedings
12. Power to appoint special manager
13. Advertisement of receiving orderNotice of every receiving order, stating the name address and description of the debtor, the trading name or names (if any) of the debtor, the date of the order and the date of the petition, shall be gazetted and advertised in a local paper in the prescribed manner.
14. Power to rescind receiving order in certain cases
Proceedings consequent on order
15. First and other meetings of creditors
16. Debtor's statement of affairs
Public examination of debtor
17. Public examination of debtor
Composition or scheme of arrangement
18. Compositions and schemes of arrangement
19. Effect of composition or schemeNotwithstanding the acceptance and approval of a composition or scheme, the composition or scheme shall not be binding on any creditor so far as regards a debt or liability from which, under the provisions of this Act, the debtor would not be released by an order of discharge in bankruptcy, unless the creditor assents to the composition or scheme.
Adjudication of bankruptcy
20. Adjudication of bankruptcy
21. Appointment of trustee
22. Committee of inspection
Control over person and property of debtor
23. Duties of debtor as to discovery and realisation of property
24. Address and certain particulars to be furnished
25. Arrest of debtor under certain circumstances
26. Re-direction of debtor's lettersWhere a receiving order is made against a debtor, the court, on the application of the official receiver or trustee, may from time to time order that for such time, not exceeding six months, as the court thinks fit, letters, telegrams, cablegrams and other postal packets, addressed to the debtor at any place or places mentioned in the order for re-direction, shall be re-directed, sent or delivered by the Postmaster-General, or the officers acting under him, or any other person in charge of the transmission and receipt of letters, telegrams, cablegrams and other postal packets, to the official receiver, or the trustee, or otherwise as the court directs, and the same shall be done accordingly.
27. Inquiry as to debtor's conduct, dealings and property
28. Discharge of bankrupt
29. Fraudulent settlementsIn either of the following cases, that is to say:
30. Effect of order of discharge
31. Power for court to annul adjudication in certain cases
32. Bankrupt not to act as director or manager of company or to manage business with relative
Part III – Administration of property
Proof of debts
33. Description of debts provable in bankruptcy
34. Mutual credit and set-offWhere there have been mutual credits, mutual debts or other mutual dealings, between a debtor against whom a receiving order shall be made under this Act and any other person proving or claiming to prove a debt under the receiving order, an account shall be taken of what is due from the one party to the other in respect of such mutual dealings, and the sum due from the one party shall be set off against any sum due from the other party, and the balance of the account, and no more, shall be claimed or paid on either side respectively; but a person shall not be entitled under this section to claim the benefit of any set-off against the property of a debtor in any case where he had, at the time of giving credit to the debtor, notice of an act of bankruptcy committed by the debtor and available against him.
35. Rules as to proof of debtsWith respect to the mode of proving debts, the right of proof by secured and other creditors, the admission and rejection of proofs, and the other matters referred to in the Second Schedule, the rules in that Schedule shall be observed.
36. Priority of debtsSubject to the provisions of this Act and of any other law, all debts proved in the bankruptcy shall be paid pari passu.
37. Preferential claim in case of apprenticeship
38. Landlord's power of distress in case of bankruptcy
39. Postponement of claims
Property available for payment of debts
40. Relation back of trustee's title
41. Description of bankrupt's property divisible amongst creditorsThe property of the bankrupt divisible amongst his creditors, and in this Act referred to as the property of the bankrupt, shall not comprise the following particulars:
42. Provisions as to second bankruptcy
Effect of bankruptcy on antecedent and other transactions
43. Restriction of rights of creditor under execution or attachment
44. Duties of sheriff as to goods taken in execution
45. Avoidance of certain settlements
46. Avoidance of general assignments of book debts unless registered
47. Avoidance of preference in certain cases
48. Protection of bona fide transaction without noticeSubject to the foregoing provisions of this Act with respect to the effect of bankruptcy on an execution or attachment, and with respect to the avoidance of certain settlements, assignments and preferences, nothing in this Act shall invalidate, in the case of a bankruptcy—
49. Validity of certain payments to bankrupt and assigneeA payment of money or delivery of property to a person subsequently adjudged bankrupt, or to a person claiming by assignment from him, shall, notwithstanding anything in this Act, be a good discharge to the person paying the money or delivering the property, if the payment or delivery is made before the actual date on which the receiving order is made and without notice of the presentation of a bankruptcy petition, and is either pursuant to the ordinary course of business or otherwise bona fide.
50. Recovery of property transferred without knowledge of receiving orderWhere any money or property of a bankrupt has, on or after the date of the receiving order, but before notice thereof has been gazetted in the prescribed manner, been paid or transferred by a person having possession of it to some other person, and the payment or transfer is under the provisions of this Act void as against the trustee in the bankruptcy, then, if the person by whom the payment or transfer was made proves that when it was made he had not had notice of the receiving order, any right of recovery which the trustee may have against him in respect of the money or property shall not be enforced by any legal proceedings except where and in so far as the court is satisfied that it is not reasonably practicable for the trustee to recover in respect of the money or property or of some part thereof from the person to whom it was paid or transferred.
51. Dealings with undischarged bankrupt
Realisation of property
52. Possession of property by trustee
53. Seizure of property of bankruptAny person acting under warrant of the court may seize any part of the property of a bankrupt, or of a debtor against whom a receiving order has been made, in the custody or possession of the bankrupt, or the debtor, or of any other person, and with a view to such seizure may break open any house, building or room of the bankrupt, or the debtor, where the bankrupt, or the debtor, is supposed to be, or any building or receptacle of the bankrupt, or the debtor, where any of his property is supposed to be; and where the court is satisfied that there is reason to believe that property of a bankrupt, or a debtor against whom a receiving order has been made, is concealed in a house or place not belonging to him, the court may, if it thinks fit, grant a search warrant to any police officer or officer of the court, who may execute it according to its tenor.
54. Appropriation of portion of salary or wages to creditors
55. Vesting and transfer of property
56. Disclaimer of onerous property
57. Powers of trustee to deal with propertySubject to the provisions of this Act, the trustee may do all or any of the following things:
58. Powers exercisable by trustee with permission of committee of inspection
59. Power to allow bankrupt to manage propertyThe trustee, with the permission of the committee of inspection, may appoint the bankrupt himself to superintend the management of the property of the bankrupt or of any part thereof, or to carry on the trade (if any) of the bankrupt for the benefit of his creditors, and in any other respect to aid in administering the property, in such manner and on such terms as the trustee may direct:Provided that no such permission shall be required when the official receiver is acting as trustee and a committee of inspection has not been appointed.
60. Allowance to bankrupt for maintenance or serviceThe trustee may from time to time, with the permission of the committee of inspection, make such allowance as he may think just to the bankrupt out of his property for the support of the bankrupt and his family, or in consideration of his services if he is engaged in winding up his estate, but any such allowance may be reduced by the court:Provided that no such permission shall be required when the official receiver is acting as trustee and a committee of inspection has not been appointed.
61. Right of trustee to inspect goods pawned, etc.Where any goods of a debtor against whom a receiving order has been made are held by any person by way of pledge, pawn or other security, it shall be lawful for the official receiver or trustee, after giving notice in writing of his intention to do so, to inspect the goods, and, where such notice has been given, such person as aforesaid shall not be entitled to realise his security until he has given the trustee a reasonable opportunity of inspecting the goods and of exercising his right of redemption if he thinks fit to do so.
62. Limitation of trustee's powers in relation to copyrightWhere the property of a bankrupt comprises the copyright in any work or any interest in such copyright, and he is liable to pay to the author of the work royalties or a share of the profits in respect thereof, the trustee shall not be entitled to sell, or authorise the sale of, any copies of the work, or to perform or authorise the performance of the work, except on the terms of paying to the author such sums by way of royalty or share of the profits as would have been payable by the bankrupt, nor shall he, without the consent of the author or of the court, be entitled to assign the right or transfer the interest or to grant any interest in the right by licence, except upon terms which will secure to the author payments by way of royalty or share of the profits at a rate not less than that which the bankrupt was liable to pay.
63. Protection of official receiver and trustees from personal liability in certain casesWhere the official receiver or trustee has seized or disposed of any goods, chattels, property or other effects in the possession or on the premises of a debtor against whom a receiving order has been made, without notice of any claim by any person in respect of the same, and it is thereafter made to appear that the said goods, chattels, property or other effects were not, at the date of the receiving order, the property of the debtor, the official receiver or trustee shall not be personally liable for any loss or damage arising from such seizure or disposal sustained by any person claiming such property, nor for the costs of any proceedings taken to establish a claim thereto, unless the court is of opinion that the official receiver or trustee has been guilty of negligence in respect of the same.
Distribution of property
64. Declaration and distribution of dividends
65. Joint and separate dividends
66. Provision for creditors residing at a distance, etc.
67. Right of creditor who has not proved debt before declaration of a dividendAny creditor who has not proved his debt by the latest date for lodging proofs as specified in the notice of intention to declare a dividend shall not participate in that dividend, but shall be entitled to be paid out of any money for the time being in the hands of the trustee any dividend or dividends he may have failed to receive before that money is applied to the payment of any future dividend or dividends.
68. Interest on debts
69. No action for dividendNo action for a dividend shall lie against the trustee, but, if the trustee refuses to pay, or unreasonably delays in paying, any dividend, the court may, if it thinks fit, order him to pay it, and also to pay out of his own money interest thereon for the time that it is withheld, and the costs of the application.
70. Right of bankrupt to surplusThe bankrupt shall be entitled to any surplus remaining after payment in full of his creditors as by this Act provided, and of the costs, charges and expenses of the proceedings under the bankruptcy petition.
Part IV – Official receiver and staff
71. Appointment of official receiver and assistant official receivers
72. Appointment of acting and deputy official receiver
73. Status of official receiver
74. Duties of official receiver as regards debtor's conductAs regards the debtor, it shall be the duty of the official receiver—
75. Duties of official receiver as regards debtor's estate
Part V – Trustees in bankruptcy
76. Official name of trusteeThe official name of a trustee in bankruptcy shall be "the trustee of the property of ________________ a bankrupt" (inserting the name of the bankrupt), and by that name the trustee may hold property of every description, make contracts, sue and be sued, enter into any engagements binding on himself and his successors in office, and do all other acts necessary or expedient to be done in the execution of his office.
77. Power to appoint joint or successive trustees
78. Proceedings in case of vacancy in office of trustee
79. Discretionary powers of trustee and control thereof
80. Appeal to court against trustee or official receiverIf the bankrupt or any creditor, or any other person, is aggrieved by any act or decision of the trustee or official receiver, he may apply to the court, and the court may confirm, reverse or modify the act or decision complained of, and make such order in the premises at it thinks just.
81. Control of official receiver over trustees
Remuneration and costs
82. Remuneration of trustee
83. Allowance and taxation of costs
Receipts, payments, accounts, audit
84. Trustee to furnish list of creditorsThe trustee or official receiver shall, whenever required by any creditor so to do, furnish and transmit to him by post a list of creditors showing the amount of the debt due to each creditor, and shall be entitled to charge for such list the sum of fifteen fee units and the further sum of three fee units for every folio of seventy-two words in excess of five folios, together with the cost of the postage thereof.[As amended by Act No. 13 of 1994]
85. Trustee to furnish statement of creditorsIt shall be lawful for any creditor, with the concurrence of one-sixth of the creditors (including himself), at any time to call upon the trustee or official receiver to furnish and transmit to the creditors a statement of the accounts up to the date of such notice, and the trustee shall, upon receipt of such notice, furnish and transmit such statement of the accounts:Provided that the person at whose instance the accounts are furnished shall deposit with the trustee or official receiver, as the case may be, a sum sufficient to pay the costs of furnishing and transmitting the accounts, which sum shall be repaid to him out of the estate if the creditors or the court so direct.
86. Books to be kept by trusteeThe trustee shall keep, in manner prescribed, proper books, in which he shall from time to time cause to be made entries or minutes of proceedings at meetings, and such other matters as may be prescribed, and any creditor of the bankrupt may, subject to the control of the court, personally or by his agent, inspect any such books.
87. Annual statement of proceedings
88. Trustee not to pay into private accountNo trustee in a bankruptcy or under any composition or scheme of arrangement shall pay any sums received by him as trustee into his private banking account.
89. Bankruptcy estates account
90. Investment of surplus funds
91. Audit of trustee's accounts
Vacation of office by trustee
92. Release of trustee
93. Office of trustee vacated by insolvencyIf a receiving order is made against a trustee, he shall thereby vacate his office of trustee.
94. Removal of trustee
Part VI – Constitution, procedure and powers of court
95. Jurisdiction in bankruptcy
96. Judge may exercise his powers in chambersSubject to the provisions of this Act and to general rules, a Judge of the court may exercise in chambers the whole or any part of his jurisdiction.
97. Jurisdiction in bankruptcy of registrar
98. General powers of bankruptcy courts
99. Power to make receiving order in lieu of committal orderWhere application is made by a judgment creditor to the court for the committal of a judgment debtor, the court may, if it thinks fit, decline to commit, and in lieu thereof, with the consent of the judgment creditor and on payment by him of the prescribed fee, make a receiving order against the debtor; and in such case the judgment debtor shall be deemed to have committed an act of bankruptcy at the time the order is made, and the provisions of this Act shall apply as if for references to the presentation of a petition by or against a person there were substituted references to the making of such a receiving order.
100. Appeals in bankruptcy
101. Discretionary powers of court
102. Consolidation of petitionsWhere two or more bankruptcy petitions are presented against the same debtor or against joint debtors, the court may consolidate the proceedings, or any of them, on such terms as the court thinks fit.
103. Power to change carriage of proceedingsWhere the petitioner does not proceed with due diligence on his petition, the court may substitute as petitioner any other creditor to whom the debtor may be indebted in the amount required by this Act in the case of the petitioning creditor.
104. Continuance of proceedings on death of debtorIf a debtor by or against whom a bankruptcy petition has been presented dies, the proceedings in the matter shall, unless the court otherwise orders, be continued as if he were alive.
105. Power to stay proceedingsThe court may at any time, for sufficient reason, make an order staying the proceedings under a bankruptcy petition, either altogether or for a limited time, on such terms and subject to such conditions as the court may think just.
106. Power to present petition against one partnerAny creditor whose debt is sufficient to entitle him to present a bankruptcy petition against all the partners of a firm may present a petition against any one or more partners of the firm without including the others.
107. Power to dismiss petition against some respondents onlyWhere there are more respondents than one to a petition, the court may dismiss the petition as to one or more of them, without prejudice to the effect of the petition as against the other or others of them.
108. Property of partners to vest in same trusteeWhere a receiving order has been made on a bankruptcy petition by or against one member of a partnership, any other bankruptcy petition by or against a member of the same partnership shall be filed with the first-mentioned petition, and, unless the court otherwise directs, the same trustee or receiver shall be appointed as may have been appointed in respect of the property of the first-mentioned member of the partnership, and the court may give such directions for consolidating the proceedings as it thinks just.
109. Actions by trustee and bankrupt's partnersWhere a member of a partnership is adjudged bankrupt, the court may authorise the trustee to commence and prosecute any action in the names of the trustee and of the bankrupt's partner; and any release by such partner of the debt or demand to which the action relates shall be void; but notice of the application for authority to commence the action shall be given to him, and he may show cause against it, and on his application the court may, if it thinks fit, direct that he shall receive his proper share of the proceeds of the action, and, if he does not claim any benefit therefrom, he shall be indemnified against costs in respect thereof as the court directs.
110. Actions on joint contractsWhere a bankrupt is a contractor in respect of any contract jointly with any person or persons, such person or persons may sue or be sued in respect of the contract without the joinder of the bankrupt.
111. Proceedings in partnership nameAny two or more persons, being partners, or any person carrying on business under a partnership name, may take proceedings or be proceeded against under this Act in the name of the firm, but in such case the court may, on application by any person interested, order the names of the persons who are partners in such firm or the name of such person to be disclosed in such manner, and verified on oath or otherwise, as the court may direct.
Orders and warrants of court
112. Courts to be auxiliary to other Commonwealth courtsThe court and all the officers thereof shall, in all matters of bankruptcy, act in aid of and be auxiliary to every court elsewhere in the Commonwealth having jurisdiction in bankruptcy or insolvency, and an order of the court seeking aid, with a request to this court, shall be deemed sufficient to enable this court to exercise, in regard to the matters directed by the order, such jurisdiction as either the court which made the request or this court could exercise in regard to similar matters within their respective jurisdictions, save that to enable the official receiver of Zambia to act as the agent of an officer of a reciprocating court, or to enable an officer of this court to seek the aid of an official receiver of a reciprocating court, in the manner provided in Part IX, it shall not be necessary for this court, or any reciprocating court, to make any order, or send any request, under this section.
113. Commitment to prisonWhere the court commits any person to prison, the commitment may be to such convenient prison as the court thinks expedient.
Part VII – Supplemental provisions
Application of Act
114. Exclusion of companiesA receiving order shall not be made against any corporation or against any partnership or association or company registered under the Companies Act, or any enactment repealed by that Act.[Cap. 388]
115. Limited partnershipsSubject to such modifications as may be made by general rules under this Act, the provisions of this Act shall apply to limited partnerships in like manner as if limited partnerships were ordinary partnerships, and, on all the general partners of a limited partnership being adjudged bankrupt, the assets of the limited partnership shall vest in the trustee.
116. Privilege of parliamentIf a person having privilege of Parliament commits an act of bankruptcy, he may be dealt with under this Act in like manner as if he had not such privilege.
117. Small estatesWhere a petition is presented by or against a debtor, if the court is satisfied by affidavit or otherwise, or the official receiver reports to the court, that the amount of the unsecured liabilities of the debtor is not likely to exceed in value four thousand kwacha, the court may make an order that the debtor's estate be administered in a summary manner, and thereupon the provisions of this Act shall be subject to the following modifications:
118. Administration in bankruptcy of estate of person dying insolvent
119. Power to make general rulesThe Chief Justice may, from time to time, by statutory instrument, make general rules for carrying into effect the objects of this Act; and may, from time to time, alter, amend, or revoke all or any of such general rules, as occasion may require.
Fees, remuneration and audit
120. Fees and percentagesThe Chief Justice may prescribe a scale of fees and percentages to be charged in respect of proceedings under this Act; and may, by statutory instrument, make general rules, regulating the deposits payable and by whom and in what manner such deposits, fees and percentages are to be collected and accounted for; and may, from time to time, vary, increase or diminish such fees and percentages and alter, amend or revoke all or any of such general rules, as occassion may require.
122. Audit of accounts of official receiverThe accounts of the official receiver in connection with proceedings under this Act shall be audited in such manner as the Minister responsible for finance may direct; and, for such purpose, the official receiver shall make such returns and give such information as the auditor appointed by the said Minister for the purpose may require.
123. Gazette to be evidence
124. Evidence of proceedings at meetings of creditors
125. Evidence of proceedings in bankruptcyAny petition or copy of a petition in bankruptcy, any order or certificate or copy of an order or certificate made by the court, any instrument or copy of an instrument, affidavit or document made or used in the course of any bankruptcy proceedings or other proceedings had under this Act, shall, if it appears to be sealed with the seal of the court, or purports to be signed by any Judge thereof, or is certified as a true copy by any registrar thereof, be receivable in evidence in all legal proceedings whatever.
126. Swearing of affidavitsSubject to general rules, any affidavit to be used in the court may be sworn before any person authorised to administer oaths in the High Court, or before any registrar in bankruptcy, or a magistrate, or, in the case of a person residing out of Zambia, before any person qualified to administer oaths in the country where he resides (he being certified to be qualified as aforesaid by a Zambian diplomatic representative or other diplomatic representative acting for the Republic of Zambia, or by a notary public).
127. Death of debtor or witnessIn the case of the death of the debtor or his wife, or of a witness whose evidence has been received by the court in any proceeding under this Act, the deposition of the person so deceased, purporting to be sealed with the seal of the court, or a copy thereof purporting to be so sealed, shall be admitted as evidence of the matters therein deposed to.
128. Certificate of appointment of trusteeA certificate of the official receiver that a person has been appointed trustee under this Act shall be conclusive evidence of his appointment.
129. Certificate of acts of official receiverA certificate signed by the official receiver that any order made, certificate issued or act done, is the order, certificate or act of the official receiver shall be conclusive evidence of the fact so certified.
130. Computation of time
131. Service of noticesAll notices and documents for the service of which no special mode is directed shall be sufficiently served if sent by post to the last known address of the person to be served therewith.
132. Formal defects not to invalidate proceedings
133. ***[Repealed by Act No. 17 of 1994]
134. Acting as corporations, partners, etc.For all or any of the purposes of this Act, a corporation may act by any of its officers authorised in that behalf under the seal of the corporation, a firm may act by any of its members, and a mentally disordered person may act by his receiver.
135. Certain provisions to bind the stateSave as provided in this Act, the provisions of this Act relating to the remedies against the property of a debtor, the priorities of debts, the effect of a composition or scheme of arrangement, and the effect of a discharge, shall bind the State.
Unclaimed dividends and indivisible balances
136. Unclaimed and undistributed dividends or funds
137. Indivisible balances
Part VIII – Bankruptcy offences
138. Fraudulent debtors
139. Undischarged bankrupt obtaining creditWhere a person who has been adjudged bankrupt in Zambia or adjudged bankrupt or insolvent in any reciprocating country and has not obtained his discharge—
140. Frauds by bankrupts, etc.
141. Bankrupt guilty of gambling, etc.Any person who has been adjudged bankrupt, or in respect of whose estate a receiving order has been made, shall be guilty of a misdemeanour, if, having been engaged in any trade or business, and having outstanding at the date of the receiving order any debts contracted in the course and for the purposes of such trade or business—
142. Bankrupt failing to keep proper accounts
143. Bankrupt absconding with propertyIf any person who is adjudged bankrupt, or in respect of whose estate a receiving order has been made, after the presentation of a bankruptcy petition by or against him or within six months before such presentation, quits Zambia and takes with him, or attempts or makes preparations to quit Zambia and take with him, any part of his property to the amount of forty kwacha or upwards, which ought by law to be divided amongst his creditors, he shall (unless he proves that he had no intent to defraud) be guilty of felony.
144. False claim, etc.If any creditor, or any person claiming to be a creditor, in any bankruptcy proceedings, makes any false claim, or any proof, declaration or statement of account, which is untrue in any material particular, he shall be guilty of a misdemeanour unless he proves that he had no intent to defraud.
145. Criminal liability after discharge or compositionWhere a debtor has been guilty of any criminal offence, he shall not be exempt from being proceeded against therefor by reason that he has obtained his discharge or that a composition or scheme of arrangement has been accepted or approved or that the adjudication of bankruptcy has been annulled.
146. General penaltyA person guilty of an offence declared to be a felony or misdemeanour under this act in respect of which no special penalty is imposed by this act shall be liable on conviction to imprisonment for a term not exceeding two years.
147. Form of chargeIn a charge for an offence under this Act it shall be sufficient to set forth the substance of the offence charged in the words of this Act specifying the offence, or as near thereto as circumstances admit, without alleging or setting forth any debt, act of bankruptcy, trading, adjudication, or any proceedings in, or order, warrant or document of, the court acting under this Act or any enactment referred to in the Third Schedule.
148. Evidence as to frauds by directors and officers of corporations or companiesA statement or admission made by any person in any compulsory examination or deposition before any court on the hearing of any matter in bankruptcy shall not be admissible as evidence against that person in any proceeding in respect of any of the felonies referred to in sections three hundred and twenty-four and three hundred and twenty-five of the Penal Code.[Cap. 87]
Part IX – Provisions for reciprocity with other countries
149. Declaration of reciprocating countries and courtsWhere the Attorney-General is satisfied that the legislature of any other country has enacted provisions for reciprocity in bankruptcy which in that country have the like effect as the provisions contained in this Part, he may, by statutory order, declare such country to be a reciprocating country, and the court thereof having jurisdiction in bankruptcy a reciprocating court for the purposes of this Act, and the provisions of this Part shall then apply to all bankruptcy proceedings subsequently instituted in the declared country against a debtor having property in Zambia.
150. Effect of receiving order, etc., made by reciprocating court against debtor with property in ZambiaWhere a receiving order or order of adjudication or any appointment of a special manager or interim receiver has been made in any reciprocating country in bankruptcy proceedings against a debtor having property in Zambia, such order or appointment shall, subject to the other provisions of this Part, have the like effect as if it had been made in bankruptcy proceedings against the debtor in Zambia, and the debtor and his creditors shall be deemed to be in the same position and have the same rights and privileges, and be subject to the same disqualifications, restrictions, obligations and liabilities, in every respect as if such order or appointment had been made under this Act.
151. Vesting of bankrupt's property in trustee appointed in reciprocating countryWhere an order of adjudication is made by a reciprocating court, the property of the bankrupt situated in Zambia shall, by virtue of such order, vest in the person from time to time discharging the office of trustee of the property of the bankrupt in the reciprocating country, in the same manner as if the order of adjudication and the appointment of trustee had been made in Zambia, and the superintendence of such trustee shall continue to be exercised by the committee of inspection appointed in the reciprocating country or, if there be no such committee, by the reciprocating court.
152. Powers of official receiver, etc., appointed in reciprocating countryThe official receiver, interim receiver, special manager or trustee of a reciprocating country officiating in bankruptcy proceedings against a debtor having property in Zambia shall, subject to the control of the court by which he is appointed, be solely responsible for conducting those proceedings, and managing the affairs of the debtor or bankrupt within Zambia, and for such purposes shall, each in his respective capacity, have the same powers, rights, duties, obligations and liabilities as if he had derived his authority under this Act, and in any such proceedings where by this Act a debtor, creditor or other person interested is required to do any act at the direction of the official receiver, interim receiver, special manager or trustee, or is permitted by this Act to move in any matter in connection with such proceedings, every such debtor, creditor or person interested shall do such act at the direction of, and in all such matters treat and negotiate with or proceed against, the official receiver, interim receiver, special manager or trustee, as the case may be, of the reciprocating country, except in so far as any such official may have delegated his authority to the official receiver of Zambia as his agent in the manner hereinafter provided.
153. Official receiver to act as agent of official receiver etc., of reciprocating countryEvery official receiver, interim receiver, special manager or trustee of or appointed in a reciprocating country officiating in bankruptcy proceedings against a debtor having property in Zambia may require the official receiver of Zambia to act as his agent either in regard to any specific matter, or generally to take all such steps as may be lawful under this Act, for the discovery, seizure, protection, disclaimer or realisation of any property of the bankrupt situated within Zambia, and in such event it shall be the duty of the official receiver of Zambia to act accordingly.
154. Mode of requesting official receiver to act as agent
155. Duties of official receiver acting as agentIt shall be the duty of the official receiver of Zambia to remit the proceeds of the realisation of the property of the bankrupt, and all other money of the estate coming into his hands as such agent as aforesaid, to the person for whom he is acting, or as such person may direct, after deducting such expenses as may have been properly incurred by him; and the distribution among the creditors of all such money shall be carried out in accordance with the law of the reciprocating country in which the adjudication order was made:Provided that the provisions of this section shall not be in derogation of any law.
156. Transmission of proofs of debtWhere a receiving order or an order of adjudication has been made in a reciprocating country and the official receiver in Zambia is acting as agent in the manner hereinbefore provided, proofs of debts contracted by the debtor in Zambia may be filed with the official receiver of Zambia in the form prescribed by the law of such reciprocating country, and in every such case it shall be his duty to receive, deal with and forward, in the manner prescribed by rules made under this Part, such proofs to the official receiver or trustee, as the case may be, in such reciprocating country.
157. Power of court to make orders under sections 11 and 25If, on the application of the official receiver or any creditor or other person interested, it appears to the court that bankruptcy proceedings have been instituted in a reciprocating court against a debtor having property situated in Zambia, the court may, notwithstanding that no such proceedings have been instituted in Zambia, exercise as regards the person, property and affairs of the debtor all the powers conferred by sections eleven and twenty-five as may in the circumstances be applicable.
158. Enforcement of warrants of reciprocating courtAny order, warrant or search warrant made or issued by a reciprocating court shall be enforced by the court in Zambia in the same manner in all respects as if such order, warrant or search warrant had been made or issued by itself.
159. Limitation on powers of court to entertain proceedingsSubject to the other provisions of this section, a reciprocating court shall have sole jurisdiction in all matters in or arising out of any bankruptcy proceedings taken before such court against a debtor having property in Zambia, and no court in Zambia shall entertain any suit, application or other matter arising in or out of such proceedings, except—
160. Concurrent bankruptcies
161. Power of official receiver, etc. to require official receiver in reciprocating country to act as his agent
162. Power to make rules under Part IX
Part X – Repeals
163. Repeals and savings
History of this document
31 December 1996 this version
14 April 1967