This Ordinance was repealed on 2013-07-01 by Insolvency Act, 2011.
- Commenced on 1 January 1931
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
- [Repealed by Insolvency Act, 2011 on 1 July 2013]
Part I – Interpretation
1. InterpretationIn this Act, unless the context otherwise requires—
Part II – Proceedings from act of bankruptcy to discharge
Acts of bankruptcy
2. Acts of bankruptcy
3. Bankruptcy notices
4. Jurisdiction to make a receiving orderSubject to the conditions hereafter 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.
5. Conditions on which a creditor may petition
6. Proceedings and order on a creditor’s petition
7. Debtor’s petition and order on the petition
8. Effect of a receiving order
9. Power to appoint an 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 of it, and direct him or her to take immediate possession of the property of the debtor or any part of it.
10. Power to stay pending proceedings
11. Power to appoint a special manager
12. Advertisement of a receiving orderNotice of every receiving order, stating the name, residential and business addresses and description of the debtor, the date of the order, the court by which the order is made and the date of the petition, shall be gazetted in the prescribed manner.
Proceedings consequent on a receiving order
13. First meeting of creditorsAs soon as may be after the making of a receiving order against a debtor, a general meeting of his or her creditors (in this Act referred to as the first meeting of creditors), shall be held for the purpose of considering whether a proposal for a composition or scheme of arrangement shall be accepted, or whether it is expedient that the debtor shall be adjudged bankrupt, and generally as to the mode of dealing with the debtor’s property.
14. Meetings to be governed by rulesWith respect to the summoning of and proceedings at the first and other meetings of creditors, the rules in the First Schedule to this Act shall be observed.
15. Debtor’s statement of affairs
Public examination of the debtor
16. Public examination of the debtor
Composition or scheme of arrangement
17. Composition or scheme of arrangement
18. Effect of a 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 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
19. Adjudication of bankruptcy where a composition is not accepted or approved
20. Appointment of a trustee
21. Committee of inspection
22. Power to accept a composition or scheme after a bankruptcy adjudication
Control over the person and property of the debtor
23. Duties of the debtor as to discovery and realisation of property
24. Address and particulars of employment to be furnished
25. Arrest of a debtor under certain circumstances
26. Redirection of a debtor’s letters, etc.Where 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 articles, addressed to the debtor at any place mentioned in the order for redirection, shall be redirected, sent or delivered by the managing director of the Uganda Post Limited, or the officers acting under him or her, or by any other person in charge of the transmission and receipt of telegrams and cablegrams, 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. Bankrupt to apply for a discharge
29. Failure to apply for a dischargeIf the bankrupt does not appear on the day fixed for hearing his or her application for discharge or on such subsequent day as the court may direct, or if the bankrupt does not apply for an order of discharge within the period specified under section 28(1), he or she commits an offence against this Act.
30. Fraudulent settlementsIn either of the following cases, that is to say—
31. Effect of an order of discharge
32. Power for the court to annul an adjudication in certain cases
Part III – Administration of property
Proof of debts
33. Description of debts provable in bankruptcy
34. Mutual credit and setoffWhere there have been mutual credits, mutual debts or other mutual dealings, between a debtor against whom a receiving order is 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 their mutual dealings, and the sum due from 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 setoff against the property of a debtor in any case where he or she had, at the time of giving credit to the debtor, notice of an act of bankruptcy committed by the debtor and available against him or her.
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 to this Act, the rules in that Schedule shall be observed.
36. Priority of debts
37. Preferential claim in case of apprenticeship
38. Landlord’s power of distress in case of bankruptcyThe landlord or other person to whom any rent is due from the bankrupt may at any time, either before or after the commencement of the bankruptcy, distrain upon the goods or effects of the bankrupt for the rent due to him or her from the bankrupt, with this limitation, that if such distress for rent is levied after the commencement of the bankruptcy, it shall be available only for six months’ rent accrued due prior to the date of the order of adjudication and shall not be available for rent payable in respect of any period subsequent to the date when the distress was levied, but the landlord or other person to whom the rent may be due from the bankrupt may prove under the bankruptcy for the surplus due for which the distress may not have been available.
39. Postponement of claims of relativesWhere a receiving order has been made against a debtor, any relative by consanguinity or affinity of that debtor who has a claim against the debtor for salary or wages due or in respect of any money or other estate lent or entrusted to the debtor shall not be entitled to claim as a creditor in respect of that claim until all claims of other creditors for valuable consideration or money’s worth have been satisfied.
Property available for payment of debts
40. Relation back of trustee’s title
41. Description of bankrupt’s property divisible among creditors
42. Provisions as to a second bankruptcy
Effect of bankruptcy on antecedent and other transactions
43. Restriction of rights of a creditor under execution or attachment
44. Duties of a bailiff as to the 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 transactions 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 a bankrupt and an assigneeA payment of money or delivery of property to a person subsequently adjudged bankrupt, or to a person claiming by assignment from him or her, 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. Dealings with undischarged bankrupt
Realisation of property
51. Possession of property by the trustee
52. Seizure of the property of a 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 or her property is supposed to be; and where the court is satisfied that there is reason to believe that property of a bankrupt, or of a debtor against whom a receiving order has been made, is concealed in a house or place not belonging to him or her, 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.
53. Appropriation of a proportion of pay or salary to creditors
54. Appropriation of income of property restrained from anticipationWhere a married woman who has been adjudged bankrupt has property the income of which is subject to a restraint on anticipation, the court shall have power, on the application of the trustee, to order that, during such time as the court may order, the whole or some part of such income be paid to the trustee for distribution among the creditors, and in the exercise of such power, the court shall have regard to the means of subsistence available for the woman and her children.
55. Vesting and transfer of property
56. Disclaimer of onerous property
57. Power of the trustee to deal with propertySubject to this Act, the trustee may do all or any of the following things—
58. Powers exercisable by the trustee with permission of the committee of inspection
59. Power to allow the bankrupt to manage propertyThe trustee, with the permission of the committee of inspection, may appoint the bankrupt himself or herself to superintend the management of the property of the bankrupt or of any part of the property, or to carry on the trade, if any, of the bankrupt for the benefit of his or her creditors, and in any other respect to aid in administering the property, in such manner and on such terms as the trustee may direct.
60. Allowance to the bankrupt for maintenance or serviceThe trustee may from time to time, with the permission of the committee of inspection, make such allowance as he or she may think just to the bankrupt out of his or her property for the support of the bankrupt and his or her family, or in consideration of his or her services if he or she is engaged in winding up his or her estate, but any such allowance may be reduced by the court.
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, the official receiver or trustee may, after giving notice in writing of his or her intention to do so, inspect the goods, and where the notice has been given, that person shall not be entitled to realise his or her security until he or she has given the trustee a reasonable opportunity of inspecting the goods and of exercising his or her right of redemption if he or she thinks fit to do so.
62. Limitation of the 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 or she 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 or she, 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 the official receiver and trustee 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 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 the seizure or disposal sustained by any person claiming such property, nor for the costs of any proceedings taken to establish a claim to the property, unless the court is of opinion that the official receiver or trustee has been guilty of negligence in respect of those goods, chattels, property or other effects.
Distribution of property
64. Declaration and distribution of dividends
65. Joint and separate dividends
66. Provisions for creditors residing at a distance, etc.
67. Right of a creditor who has not proved debt before declaration of a dividendAny creditor who has not proved his or her debt before the declaration of any dividend shall be entitled to be paid out of any money for the time being in the hands of the trustee any dividend he or she may have failed to receive before that money is applied to the payment of any future dividend, but the creditor shall not be entitled to disturb the distribution of any dividend declared before his or her debt was proved by reason that he or she has not participated in the distribution.
68. Interest on debts
69. Final dividend
70. No action for dividendNo action for dividend shall lie against the trustee, but, if the trustee refuses to pay any dividend, the court may, if it thinks fit, order him or her to pay it, and also to pay out of his or her own money interest on the dividend for the time that it is withheld, and the costs of the application.
71. Right of bankrupt to surplusThe bankrupt shall be entitled to any surplus remaining after payment in full of his or her creditors, with interest, as provided by this Act, and of the cost, charges and expenses of the proceedings under the bankruptcy petition.
Part IV – Official receiver and staff
72. Appointment of an official receiver and deputy official receivers
73. Status of the official receiver
74. Duties of the official receiver as regards the debtor’s conductAs regards the debtor, it shall be the duty of the official receiver—
75. Duties of the official receiver as to the debtor’s estate
Part V – Trustees in bankruptcy
76. Official name of the 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, in any part of Uganda or elsewhere, hold property of every description, make contracts, sue and be sued, enter into any engagements binding on himself or herself and his or her successors in office and do all other acts necessary or expedient to be done in the execution of his or her office.
77. Power to appoint joint or successive trustees
78. Proceedings in case of vacancy in the office of trustee
Control over the trustee
79. Discretionary powers of the trustee and control thereof
80. Appeal to the court against the trusteeIf the bankrupt or any of the creditors, or any other person, is aggrieved by any act or decision of the trustee, he or she 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 as it thinks just.
81. Control of the official receiver over trustees
Remuneration and costs
82. Remuneration of the trustee
83. Allowance and taxation of costs
Receipts, payments, accounts, audit
84. Trustee to furnish a list of creditorsThe trustee or official receiver shall, whenever required by any creditor so to do, furnish and transmit to him or her by post a list of the creditors showing the amount of the debt due to each creditor, and shall be entitled to charge for the list the sum of fifty cents per folio of one hundred words, together with the cost of the postage of the list.
85. Trustee to furnish a statement of accounts
86. Books to be kept by the trusteeThe trustee shall keep, in the manner prescribed, proper books, in which he or she shall from time to time cause to be made entries or minutes of proceedings at meetings, and of 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 or her agent, inspect any such books.
87. Annual statement of proceedings
88. Trustee not to pay into the trustee’s private accountNo trustee in a bankruptcy or under any composition or scheme of arrangement shall pay any sums received by him or her as trustee into his or her private banking account.
89. Payment of money into the prescribed bank
90. Investment of surplus funds
91. Audit of a trustee’s accounts
Vacation of office by trustee
92. Release of a trustee
93. Office of trustee vacated by insolvencyIf a receiving order is made against a trustee, he or she shall thereby vacate his or her office of trustee.
94. Removal of a trustee
Part VI – Constitution, procedure and powers of court
95. Jurisdiction in bankruptcyThe court having jurisdiction in bankruptcy shall be the High Court, but the Chief Justice may by statutory order delegate all or any part of the jurisdiction of the High Court in bankruptcy to any magistrate’s court, either generally or for the purpose of any particular case or class of cases.
96. Judge may exercise his or her powers in chambersSubject to this Act, and to general rules, a judge of the court may exercise in chambers the whole or any part of his or her powers.
97. Official receiver to make payments in accordance with directions of courtWhere any monies or funds have been received by the official receiver under this Act and the court makes an order declaring that any person is entitled to the monies or funds, the official receiver shall make payment accordingly to that person.
98. General powers of the court
99. Disqualifications of bankrupt
100. Power to make a receiving order in lieu of a committal order
101. Appeals in bankruptcy
102. Discretionary power of the court
103. 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.
104. Substitute petitionerWhere the petitioner does not proceed with due diligence on his or her 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.
105. Continuance of proceedings on death of a 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 or she were alive.
106. 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.
107. Power to present a petition against one partnerAny creditor whose debt is sufficient to entitle him or her 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.
108. Power to dismiss a 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.
109. Property of partners to be vested 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.
110. 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 or her, and he or she may show cause against it, and on his or her application the court may, if it thinks fit, direct that he or she shall receive his or her proper share of the proceeds of the action, and if he or she does not claim any benefit from the proceeds of the action, he or she shall be indemnified against costs in respect of the action as the court directs.
111. Actions on joint contractsWhere a bankrupt is a contractor in respect of any contract jointly with any person, that person may sue or be sued in respect of the contract without the joinder of the bankrupt.
112. 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 the firm or the name of such person to be disclosed in such manner, and verified on oath or otherwise, as the court may direct.
113. Court to be auxiliary to other Commonwealth courtsThe court and all its officers 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 the court, shall be deemed sufficient to enable the court to exercise, in regard to the matters directed by the order, such jurisdiction as either the court or the court which made the request could exercise in regard to similar matters within their respective jurisdictions, except that to enable the official receiver of Uganda to act as the agent of an officer of a reciprocating court or to enable an officer of the court to seek the aid of an official receiver of a reciprocating court in the manner provided in Part IX of this Act, it shall not be necessary for the court or any reciprocating court to make any order or send any request under this section.
114. Commitment to prisonWhere the court commits any person to prison, the commitment may be to such convenient prison as the court thinks expedient, and, if the gaoler of any prison refuses to receive any prisoner so committed, he or she shall on conviction be liable for every such refusal to a fine not exceeding two thousand shillings.
Part VII – Supplemental provisions
Application of the Act
115. Married womenEvery married woman shall be subject to the bankruptcy laws as if she were feme sole.
116. Exclusion of companiesA receiving order shall not be made against any corporation or against any association or company registered under the Companies Act and any Act passed in substitution for it.
117. Application of the Act in case of 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 property of the debtor is not likely to exceed in value six thousand shillings, 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 the estate of a person dying insolvent
119. Power to make general rulesThe Chief Justice, with the approval of the Minister, may make general rules for carrying into effect the objects of this Act.
Fees and salaries, etc.
120. Fees, etc.The Chief Justice, with the approval of the Minister, may prescribe a scale of fees and percentages to be charged for or in respect of proceedings under this Act.
121. Salaries and remunerationThe Chief Justice, with the approval of the Minister, shall direct whether any and what remuneration is to be allowed to any person (other than the official receiver or his or her staff) performing any duties under this Act, and may vary, increase or diminish such remuneration, as he or she may think fit.
122. Gazette to be evidence
123. Evidence of proceedings at meetings of creditors
124. 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 of the court, or is certified as a true copy by any registrar of the court, be receivable in evidence in all legal proceedings.
125. 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 court, or before a magistrate or a justice of the peace, or in the case of a person residing out of Uganda, before any person qualified to administer oaths in the country where he or she resides (he or she being certified to be qualified as aforesaid by a foreign service officer or diplomatic representative of a Commonwealth country, or by a notary public).
126. Death of the debtor or a 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 of the deposition purporting to be so sealed, shall be admitted as evidence of the matters deposed in it.
127. Certificate of appointment of a trusteeA certificate of the court that a person has been appointed trustee under this Act shall be conclusive evidence of his or her appointment.
128. Computation of time
129. Service of noticesAll notices and other documents for the service of which no special mode is directed may be sent by post to the last known address of the person to be served with the notices or other documents.
130. Formal defect not to invalidate proceedings
131. Exemption of deeds, etc. from stamp duty
132. Acting of corporations, partners, etc.For all or any of the purposes of this Act, a corporation may act by any of its officers authorised for that purpose under the seal of the corporation, a firm may act by any of its members, and a person of unsound mind may act by the manager of his or her estate or other persons appointed under the Administration of Estates of Persons of Unsound Mind Act.
133. Certain provisions to bind GovernmentExcept 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 Government.
Unclaimed funds or dividends
134. Unclaimed and undistributed dividends or funds under this Act
Part VIII – Bankruptcy offences
135. Fraudulent debtors
136. Undischarged bankrupt obtaining creditWhere a person who has been adjudged bankrupt or insolvent in Uganda or any reciprocating territory and has not obtained his or her discharge—
137. Frauds by bankrupts, etc.
138. Bankrupt guilty of gambling, etc.
139. Bankrupt failing to keep proper accounts
140. 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 her, or within six months before such presentation, quits Uganda and takes with him or her, or attempts or makes preparation to quit Uganda and take with him or her, any part of his or her property to the amount of four hundred shillings or upwards, which ought by law to be divided among his or her creditors, he or she (unless he or she proves that he or she had no intent to defraud) commits an offence.
141. 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 or she commits an offence, unless he or she proves that he or she had no intent to defraud.
142. Order by the court for prosecution on report of trusteeWhere an official receiver or trustee in a bankruptcy reports to the court that in his or her opinion a debtor who has been adjudged bankrupt or in respect of whose estate a receiving order has been made has committed an offence under this Act, or where the court is satisfied upon the representation of any creditor or member of the committee of inspection that there is ground to believe that the debtor has committed any such offence, the court shall, if it appears to the court that there is a reasonable probability that the debtor will be convicted, and that the circumstances are such as to render a prosecution desirable, order that the debtor be prosecuted for the offence.
143. Criminal liability after discharge or compositionWhere a debtor has committed any criminal offence, he or she shall not be exempt from being proceeded against for it by reason that he or she has obtained his or her discharge or that a composition or scheme of arrangement has been accepted or approved.
144. General penaltyA person guilty of an offence under this Act in respect of which no special penalty is imposed by this Act is liable on conviction to imprisonment for a period not exceeding two years.
145. 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.
146. Director of Public Prosecutions to act in certain casesWhere the court orders the prosecution of any person for any offence under this Act or for any offence arising out of or connected with any bankruptcy proceedings, the Director of Public Prosecutions shall institute and carry on the prosecution, except that where the order of the court is made on the application of the official receiver and based on his or her report, the official receiver may institute the prosecution and carry on the proceedings, if or so long as those proceedings are conducted before a magistrate’s court, unless in the course of the proceedings circumstances arise which render it desirable that the remainder of the proceedings should be carried on by the Director of Public Prosecutions.
147. Evidence as to frauds by agentsA statement or admission made by any person in any compulsory examination or deposition before the 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 offence relating to frauds by agents, bankers or factors.
Part IX – Provisions for reciprocity with other territories
148. Declaration of reciprocating territories and courtsWhere the Minister is satisfied that the legislature of any territory, the court of which having jurisdiction in bankruptcy is subordinate to the Court of Appeal, has enacted provisions for reciprocity in bankruptcy which in that territory have the like effect as the provisions contained in this Part of this Act, the Minister may by statutory instrument declare that territory to be a reciprocating territory, and the court of that territory having jurisdiction in bankruptcy, a reciprocating court for the purposes of this Act, and as from the date of publication of that instrument in the Gazette the provisions of this Part of this Act shall apply to all bankruptcy proceedings subsequently instituted in the declared territory against a debtor having property in Uganda.
149. Local effect of receiving order, etc. made by reciprocating court against debtor having property in UgandaWhere a receiving order or order of adjudication or any appointment of a special manager or interim receiver has been made in any reciprocating territory in bankruptcy proceedings against a debtor having property in Uganda, the order or appointment shall, subject to the other provisions of this Part of this Act, have the like effect as if it had been made in bankruptcy proceedings against the debtor in Uganda, and the debtor and his or her 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 the order or appointment had been made under this Act.
150. Vesting of bankrupt’s local property in trustee appointed in reciprocating territoryWhere an order of adjudication is made by a reciprocating court, the property of the bankrupt situated in Uganda shall, by virtue of that order, vest in the person from time to time discharging the office of trustee of the property of the bankrupt in the reciprocating territory, in the same manner as if the order of adjudication and the appointment of trustee had been made in Uganda, and the superintendence of the trustee shall continue to be exercised by the committee of inspection appointed in the reciprocating territory or, if there is no such committee, by the reciprocating court.
151. Local powers of official receiver, etc. appointed in a reciprocating territoryThe official receiver, interim receiver, special manager or trustee of a reciprocating territory officiating in bankruptcy proceedings against a debtor having property in Uganda shall, subject to the control of the court by which he or she is appointed, be solely responsible for conducting those proceedings and managing the affairs of the debtor or bankrupt within Uganda, and for such purposes shall, each in his or her respective capacity, have the same powers, rights, duties, obligations and liabilities as if he or she had derived his or her 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 an 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 territory, except insofar as any such official may have delegated his or her authority to the official receiver of Uganda as his or her agent in the manner hereafter provided.
152. Local official receiver to act as agent of official receiver, etc. of reciprocating territoryEvery official receiver, interim receiver, special manager or trustee of a reciprocating territory officiating in bankruptcy proceedings against a debtor having property in Uganda may require the official receiver of Uganda to act as his or her 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 Uganda, and in such event the official receiver of Uganda shall act accordingly.
153. Mode of requesting official receiver to act as agent
154. Duties of official receiver acting as agentThe official receiver of Uganda shall remit the proceeds of the realisation of the property of the bankrupt and all other money of the estate coming into his or her hands as such agent as aforesaid to the person for whom he or she is acting, after deducting such expenses as may have been properly incurred by him or her; and the distribution among the creditors of all such money shall be carried out in accordance with the law of the reciprocating territory in which the adjudication order was made.
155. Transmission of proofs of local debtsWhere a receiving order or an order of adjudication has been made in a reciprocating territory and the official receiver of Uganda is acting as agent in the manner hereinbefore provided, proofs of debts contracted by the debtor in Uganda may be filed with the local official receiver in the form prescribed by the law of the reciprocating territory, and in every such case, he or she shall receive, deal with and forward in the manner prescribed by the rules made under this Part of this Act such proofs to the official receiver or trustee, as the case may be, of the reciprocating territory.
156. Power of local court to make orders under sections 10 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 Uganda, the court may, notwithstanding that no such proceedings have been instituted in Uganda, exercise as regards the person, property and affairs of the debtor all the powers conferred by sections 10 and 25 as may be applicable in the circumstances.
157. Local enforcement of warrants of reciprocating courtAny order, warrant or search warrant made or issued by a reciprocating court shall be enforced by the court of Uganda in the same manner in all respects as if the order, warrant or search warrant had been made or issued by itself.
158. Limitation on powers of local 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 Uganda, and no court in Uganda shall entertain any suit, application or other matter arising in or out of such proceedings except—
159. Concurrent bankruptcies
160. Power of official receiver, etc. to request an official receiver in a reciprocating territory to act as his or her agent
161. Power to make special rules under this Part
Part X – General
162. Bankruptcy Rules, 1915, appliedUntil the Chief Justice makes general rules and prescribes fees under the powers conferred in sections 119 and 120, the Bankruptcy Rules, 1915, made under section 132 of the Bankruptcy Act, 1914, of the United Kingdom and the scale of fees prescribed under section 133 of the same Act are declared to be in force in Uganda and shall be read with and considered as part of this Act, and the court may construe the rules with such verbal alterations not affecting the substance as may be deemed expedient to render the rules applicable to local circumstances and to any matter before the court, except that any such construction or alteration shall not be inconsistent with the provisions of this Act.
History of this document
01 July 2013
Repealed by Insolvency Act, 2011
01 January 1931