No. 7/2018
INSOLVENCY
Cap.6:07
work on behalf of the estate except costs awarded against the estate in
legal proceedings, are not subject to taxation by the taxing master of the
court if the liquidator has entered into any written agreement in terms of
which the fees of any legal practitioner are to be determined in accordance
with a specific tariff;
(b)
costs incurred to engage the services of a forensic investigator to perform
forensic investigation work on behalf of the estate are subject to taxation
by the taxing master of the court.
(2) If the liquidator has not entered into an agreement contemplated in subsection
(I), or there is any dispute as to the fees payable in terms of such an agreement, the
costs must be taxed by the taxing master of the High Court having jurisdiction or,
where the costs are not subject to taxation by the said taxing master, such costs must be
assessed by the Law Society of Zimbabwe in question or, where the legal practitioner
in question is not a member of the Law Society of Zimbabwe.
(3) No bill of costs based upon an agreement entered into under subsection ( 1)
may be accepted as costs of liquidation of the estate, unless such bill is accompanied
by a declaration under oath or affirmation by the liquidator stating that(a)
he or she had been duly authorised by either the creditors or the Master,
as the case may be, to enter into such an agreement;
(b)
any legal work specified in such bill has been performed to the best of
his or her knowledge and belief;
(c)
any disbursements specified in such bill have been made to the best of
his or her knowledge and belief; and
(d)
to the best of his or her knowledge and belief, the legal practitioner in
question has not overreached him or herself.
(4) Notwithstanding anything to the contrary contained in this Act, the Master
may disallow any costs incurred under this section if any such costs are excessive,
unnecessary, incorrect or improper, or if the liquidator acted in bad faith, negligently
or unreasonably in incurring any such costs.
(5) If it appears to the Court that a legal representative or legal adviser has,
with intent to benefit himself or herself, improperly given legal advice or acted with
intent to benefit himself or herself, whether for or against an insolvent estate, or has
caused any unnecessary expense in that regard, the Court may order that such expense
or any part thereof be borne by that legal representative or legal adviser personally.
PART XVI
SPECIAL PROVISIONS RELATING TO SALE OF PROPERTY BELONGING TO INSOLVENT ESTATE
91
Non-compliance with provisions of Act in sale of property of insolvent
estate
(l) If property of an insolvent estate is sold without this Act having been
complied with, the sale is void unless the purchaser proves that he or she acquired the
property in good faith and for value and, where applicable, that a Court order authorising
the sale was not a prerequisite.
(2) Any person who disposes of property of an insolvent estate in contravention
of this Act is liable to make good to the estate twice the amount of the loss that the
estate might have sustained as a result of such disposition.
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