No. 7/2018
INSOLVENCY
Cap.6:07
(23) Reasons for which a composition may be revoked include(a)
failure by the debtor to comply with his or her obligations in terms of the
composition; or
(b)
if the debtor renders false information in his or her statement or in the
course of the questioning; or
(c)
if the debtor gives a benefit in respect of a claim that falls under the
composition to a creditor on whom the composition is binding and \vho
is not entitled to the benefit in terms of the composition.
(24) Any creditor who is entitled to a benefit in terms of the composition may,
notwithstanding subsection (19), after 14 days standard notice to the debtor apply to
the administrator to revoke the composition if the debtor does not comply with his or
her obligations in terms of the composition.
(25) The creditor must lodge an affidavit in support of his or her application.
(26) The administrator must order that the composition be revoked if the debtor
did not substantially comply with his or her obligations.
(27) If the composition is revoked, or if the estate of a debtor has been liquidated
in terms of this Act before he or she complied with his or her obligations in terms of
the composition, the claim of a creditor is restored to the extent that the claim has not
been satisfied in terms of the composition.
(28) If a composition is not accepted by the required majority, and the debtor
is unable to make available to creditors substantially more than that which he or she
offered in the proposed composition(a) the administrator must declare that the proceedings in terms of this clause
have ceased and that the debtor is once again in the position he or she was
prior to the commencement thereof and lodge a copy of the declaration
with the Master and known creditors by standard notice; and
(b)
the Master may, upon application by the debtor, grant a discharge of debts
of the debtor other than secured or preferred debts if(i) the debtor satisfies the Master that the administrator and all known
creditors were given standard notice of the application for the
discharge with a copy of the debtor's application at least 28 days
before the application to the Master; and
(ii) the Master is satisfied after consideration of comments, if any, by
creditors and the administrator and the application by the debtorA.
8.
that the proposed composition was the best offer which the
debtor could make to creditors;
that the inability of the debtor to pay debts in full was not
caused by criminal or inappropriate behavior by the debtor.
(29) Between the determination of a date for a hearing and the conclusion of
the hearing, no creditor with a claim the cause of which arose before the determination
of the date may without the permission of the Court institute any action against the
debtor or apply for the liquidation of the estate of the debtor.
120 Post-liquidation composition
( 1) A debtor other than a company may at any time after the issuing of the first
liquidation order but after he or she has sent his or her statement of affairs by standard
notice as required by section 43, lodge with the liquidator of his or her estate a written
offer of composition.
(2) If the liquidator is of the opinion that there is a likelihood that the creditors
of the estate will accept the offer of composition, he or she must as soon as possible after
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