Cap. 6:07
INSOLVENCY
No. 7/2018
by the debtor does not belong to the insolvent estate and claims any right thereto, then
it must be presumed, unless the contrary is proved, that the said property does not form
part of the insolvent estate.
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Disposition without value
(I) Every disposition of property not made for value may be set aside by the
Court if such disposition \vas made by the debtor within two years before the presentation
of the application for liquidation of his or her estate to the registrar, or within three
years before the presentation of the application for liquidation to the registrar if the
disposition was made in favour of an associate:
Provided that if it is proved by someone opposing the setting aside of the
disposition that the liabilities of the debtor at any time after the making of the disposition
exceeded his or her assets by less than the value of the property disposed of, the
disposition may be set aside only to the extent of such excess.
(2) A disposition of property not made for value, which was set aside under
subsection (I) or \Vhich was not completed by the debtor, docs not give rise to any
claim in competition with the creditors of the debtor's estate:
Provided that in the case of a disposition of property not made for value, which
was not completed by the debtor, and which(a)
was made by way of suretyship, guarantee or indemnity; and
(b)
has not been set aside under subsection (I);
the beneficiary in question may compete with the creditors of the debtor's estate for an
amount not exceeding the amount by which the value of the debtor's assets exceeded
his or her liabilities immediately before the making of that disposition.
25
Antenuptial contracts
(I) In this section-
"immediate benefit" means a benefit given by a transfer, delivery, payment,
cession, pledge, or special bond of property completed before the
expiration of a period of three months as from the date of the marriage.
(2) No immediate benefit under a duly registered antenuptial contract given in
good faith by one spouse to the other or to any child to be born of the marriage may
be set aside as a disposition without value, unless the application for the liquidation of
the estate of the spouse who gave the benefit was presented to the registrar within two
years of the registration of that antenuptial contract.
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Voidable preferences
(I) Every disposition of his or her property made by a debtor which has the
effect that any one of his or her creditors receives a benefit to which he or she would
not have been entitled had the debtor's estate been under liquidation at the time of the
making of the disposition, may be set aside by the court if(a)
the debtor's liabilities exceeded the value of his or her assets immediate!;
after the making of the disposition; and
(b)
the disposition was made within six months before the presentation of the
application for liquidation of the debtor's estate to the registrar, or within
12 months before the said presentation in the case where the disposition
was made to an associate of the debtor;
unless the person for whose benefit the disposition was made proves that it was made
in the ordinary course of business and that it was not intended thereby to prefer one
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