LAWS OF MALAYSIA REPRINT Act 360 BANKRUPTCY ACT 1967 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006 2 Laws of Malaysia ACT 360 BANKRUPTCY ACT 1967 First enacted ... ... ... ... ... ... 1967 (Act 55 of 1967) Revised ... ... ... ... ... ... ... 1988 (Act 360 w.e.f. 31 December 1988) PREVIOUS REPRINT First Reprint ... ... ... ... ... 2001 3 Bankruptcy LAWS OF MALAYSIA Act 360 BANKRUPTCY ACT 1967 ARRANGEMENT OF SECTIONS PRELIMINARY Section 1. Short title and application Interpretation 2. Interpretation PART I PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE Acts of Bankruptcy 3. Acts of bankruptcy Receiving Order 4. Jurisdiction to make receiving order 5. Conditions on which creditor may petition 6. Proceedings and order on creditor's petition 7. Debtor 's petition and order thereon 8. Effect of receiving order 9. Court may detain or order arrest of debtor and commit him to prison unless he gives security not to leave Malaysia 10. Discretionary powers as to appointment of interim receiver and stay of proceedings 11. Service of order staying proceedings 12. Power to appoint special manager 4 Laws of Malaysia ACT 360 Section 13. Advertisement of receiving order 14. Power of court to rescind receiving order in certain cases Proceedings consequent on Receiving 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. Power for creditors to accept and court to approve composition or arrangement 19. Effect of composition or scheme 20. No deed of arrangement valid except under section 18 or 26 unless registered 21. Penalty for collusive preference 22. Power of Minister to make rules 23. Rectification of registers Adjudication of Bankruptcy 24. Adjudication of bankruptcy 25. Consultative committee 26. Power to accept composition or scheme after bankruptcy adjudication Control over Person and Property of Debtor 27. Duties of debtor as to discovery and realization of property 28. Arrest of debtor under certain circumstances 29. Release of debtor on security 30. Re-direction of letters and telegrams 31. Discovery of debtor's property 32. Director General of Insolvency to settle list of debtors to the estate Discharge of Bankrupt 33. Discharge of bankrupt by order of court 33A. Discharge of bankrupt by Certificate of Director General of Insolvency 5 Bankruptcy Section 33B. Objection by creditor to discharge of bankrupt under section 33A 34. Fraudulent settlements 35. Effect of discharge 35A. Discharged bankrupt to give assistance PART II DISQUALIFICATION AND DISABILITIES OF BANKRUPT 36. Disqualification of bankrupt 37. Vacating offices by bankruptcy Undischarged Bankrupt 38. Consequences of refusal of discharge 38A. Power to prevent bankrupt from leaving Malaysia 39. List of undischarged bankrupts to be kept PART III ADMINISTRATION OF PROPERTY Proof of Debts 40. Description of debts provable in bankruptcy 41. Mutual credit and set-off 42. Rules as to proof of debts 43. Priority of debts 44. Preferential claim in case of apprenticeship and in respect of passage money 45. Power to landlord to distrain for rent 46. Postponement of husband's or wife's claims Property Available for Payment of Debts 47. Relation back of Director General of Insolvency's title 48. Description of bankrupt's property divisible amongst creditors 49. Provisions as to second bankruptcy Effect of Bankruptcy on Antecedent Transactions 50. Restriction of rights of creditor under execution or attachment 6 Laws of Malaysia ACT 360 Section 51. Property taken in execution 52. Avoidance of voluntary settlement 53. Avoidance of preferences in certain cases 53A. Avoidance of assignment of book debts 53B. Property or proceeds therefrom deemed to be property of Director General of Insolvency 53C. Fair market value may be fixed on review Protection of bona fide transactions without notice 54. Realization of Property 55. Possession of property by assignee 56. Seizure of property of bankrupt 57. Appropriation of portion of pay or salary to creditors 58. Vesting and transfer of property 59. Disclaimer of onerous property 60. Powers of Director General of Insolvency to deal with property 61. Powers exercisable by Director General of Insolvency subject to orders of court Distribution of Property 62. Declaration and distribution of dividends 63. Joint and separate dividends Provision for creditors residing at a distance, etc. 64. 65. Right of creditor who has not proved debt before declaration of a dividend 66. Final dividend 67. No action for dividend 68. Power to allow bankrupt to manage property 69. Right of bankrupt to surplus PART IV DIRECTOR GENERAL OF INSOLVENCY Appointment 70. Appointment of Director General of Insolvency and other officers 7 Bankruptcy Duties Section 71. Status of Director General of Insolvency 72. Duties of Director General of Insolvency as regards the debtor's conduct 73. Duties of Director General of Insolvency as to debtor's estate 74. Protection of Director General of Insolvency and person acting under his direction or control Costs 75. Allowance and taxation of costs Receipts, Payments, Accounts, Audit 76. Bankruptcy Estates Account 77. Investment of surplus funds 78. Inspection and audit of Director General of Insolvency's accounts 79. Director General of Insolvency to furnish list of creditors 80. Books to be kept by Director General of Insolvency 81. Official examination of Director General of Insolvency's records Release 82. Release of Director General of Insolvency Official Name 83. Official name of Director General of Insolvency Vacation of Office on Insolvency 84. Office of Director General of Insolvency vacated by insolvency Additional Powers 84A. Additional powers of Director General of Insolvency Control 85. Discretionary powers of Director General of Insolvency and control thereof 86. Appeal to court against Director General of Insolvency 87. Control of court over Director General of Insolvency 8 Laws of Malaysia ACT 360 PART V CONSTITUTION, PROCEDURE AND POWERS OF COURT Jurisdiction Section 88. High Court to be the court having jurisdiction in bankruptcy 89. Exercise in Chambers of jurisdiction 90. Jurisdiction in bankruptcy of Registrar 91. General power of bankruptcy courts Appeals 92. Appeals in bankruptcy Procedure 93. Discretionary powers of the court 94. Consolidation of petitions 95. Power to change carriage of proceedings 96. Continuance of proceedings on death of debtor 97. Power to stay proceedings 98. Power to present petition against one partner 99. Power to dismiss petition against some respondents only 100. Consolidation of bankruptcy proceedings by or against partners 101. Actions by Director General of Insolvency and bankrupt's partners 102. Actions on joint contracts 103. Proceedings in partnership name 104. Reciprocal provisions relating to Singapore and designated countries Annulment of Adjudication 105. Power of court to annul adjudication in certain cases PART VI SMALL BANKRUPTCIES 106. Summary administration in small cases 107. Wage-earner 9 Bankruptcy Section 108. No public examination in small cases PART VII FRAUDULENT DEBTORS AND CREDITORS 109. Punishment of fraudulent debtors 110. Bankrupt failing to keep proper account 111. Bankrupt incurring debt without reasonable ground of expectation of paying it 112. Penalty for absconding with property 113. Penalty for absconding in order to avoid service of bankruptcy process or embarrass bankruptcy proceedings Penalty on fraudulently obtaining credit, etc. 114. Penalty on false claims, etc. 115. 116. Debts incurred by fraud (Deleted) 117. 117A. Sessions Court to have full jurisdiction to try offences 118. Criminal liability after discharge or composition 119. Form of charge PART VIII SUPPLEMENTAL PROVISIONS Application of Act 120. Application to married women 121. Exclusion of corporations and companies 122. Administration in bankruptcy of estate of person dying insolvent General Rules 123. Power to make rules Fees 124. Fees Evidence Gazette to be evidence 125. 10 Laws of Malaysia ACT 360 Section 126. Evidence of proceedings at meetings of creditors 127. Evidence of proceedings in bankruptcy 128. Swearing of affidavits 129. Death of witness Notices 130. Service of notices Formal Defects