BANKRUPTCY ACT

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BANKRUPTCY ACT

CHAPTER B2 LAWS OF THE FEDERATION OF NIGERIA, L.F.N. 2004

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[EDITOR’S NOTE: This Act incorporates the Bankruptcy (Amendment) Act No 109 of 1992]

ARRANGEMENT OF RULES

Part I: Proceedings from Act of Bankruptcy to discharge

1.     Acts of bankruptcy.

2.     Bankruptcy notices.

3.     Jurisdiction to make receiving order.

4.     Conditions on which creditor may petition.

5.     Liability of firm to have receiving order made against it.

6.     Powers of Official Receiver and duties of debtor on petition being filed.

7.     Creditor’s petition and order thereon.

8.     Debtor’s petition and order thereon.

9.     Appearance of Official Receiver on petition.

10.    Effect of receiving order.

11.    Power to appoint interim receiver.

12.    Power to stay pending proceedings.

13.    Power to appoint special manager.

14.    Advertisement of receiving order.

15.    First and other meetings of creditors.

16.    Debtor’s statement of affairs.

Public examination of debtor

17.    Public examination of debtor.

18.    Compositions and schemes of arrangement.

19.    [Bindingness of Composition or scheme on a creditor]

Adjudication of bankruptcy

20.    Adjudication of bankruptcy where composition not accepted or not approved.

21.    Appointment of trustee.

 22.   Committee of inspection.

23.    Power to accept composition or scheme after adjudication.

Control over person and property of debtor

24.    Duties of debtor as to discovery and realization of property.

25.    Arrest of debtor under certain circumstances.

26.    Re-direction of debtor’s telegrams and letters.

27.    Inquiry as to debtor’s conduct, dealings and property.

28.    Discharge of bankrupt.

29.    Effect of discharge.

30.    Power of court to annul adjudication in certain cases.

31.    Automatic discharge of a bankrupt. 

Part II: Administration of property

Proof of debts

32.    Description of debts provable in bankruptcy.

33.    Mutual credit and set off.

34.    Rules as to proof of debts.

35.    Priority of costs and charges.

36.    Priority of debts.

37.    Preferential claims in case of apprenticeship.

38.    Landlord’s power of distress.

39.    Postponement of husband’s and wife’s claims.

Property available for payment of debts

 40.   Relation back of trustee’s title.

41.    Description of bankrupt’s property divisible amongst creditors.

42.    Provisions as to second bankruptcy.

Effect of bankruptcy on antecedent and other transactions

 43.   Restriction of rights of creditor under execution or attachment.

 44.   Duties of bailiff as to goods taken in execution.

 45.   Avoidance of general assignments of book debts unless registered.

46.    Avoidance of preference in certain cases.

47.    Protection of bona fide transaction without notice.

48.    Recovery of property transferred without knowledge of receiving order.

49.    Validity of certain payments to bankrupt and assignee.

50.    Dealings with undischarged bankrupt.

Realisation of Property 

 51.   Possession of property by trustee.

52.    Seizure of property of bankrupt.

53.    Sale of property out of Nigeria.

54.    Appropriation of portion of pay etc. to creditors.

55.    Vesting and transfer of property.

56.    Disclaimer of onerous property.

57.    Powers of trustee to deal with property.

58.    Powers exercisable by trustee with permission of committee of inspection.

59.    Power to allow bankrupt to manage property.

60.    Allowance to bankrupt for maintenance or service.

61.    Right of trustee to inspect goods pawned, etc.

62.    Limitation of trustees powers in relation to copyright.

63.    Protection of Official Receiver and trustee from personal liability in certain cases.

Distribution of Property

64.    Declaration and distribution of dividends.

65.    Joint and separate dividends.

66.    Provision for creditors residing at a distance, etc.

67.    Right of creditor who has not proved debt before declaration of a dividend.

68.    Interest on debts.

69.    Final dividends.

70.    No action for dividend.

71.    Right of bankrupt to surplus. 

Part III – Official receiver

72.    The Official Receiver.

73.    Status of Official Receiver.

74.    Duties of Official Receiver as regards the debtor’s conduct.

75.    Duties of Official Receiver as to debtor’s estate. 

Part IV: Trustees in bankruptcy

Official Name  

76.    Official name of trustee.

Appointment 

77.    Power to appoint joint or successive trustees.

 78.   Proceedings in case of vacancy in office of trustees.

Control of Trustee 

79.    Discretionary powers of trustee and control thereof.

80.    Appeal to court against trustee.

81.    Control of court over trustee. 

Remuneration

82.    Remuneration of trustee.

83.    Allowance and taxation of costs.

Receipts, payments, accounts and audit 

84.    Trustee to furnish list of creditors.

85.    Trustee to furnish statement of accounts.

86.    Annual statement of proceedings.

87.    Trustee not to pay into private accounts.

88.    Payment of money into banks.

89.    Records and account to be kept by trustee.

90.    Audit of trustee’s account.

Vacation of Office by Trustee 

91.    Release of trustee.

92.    Office of trustee vacated by insolvency.

 93.   Removal of trustee. 

Part V: Constitution, Procedure and Powers of Court

Jurisdiction

94.    General power of Court.

Review and Appeals 

95.    Review and appeals in bankruptcy 

Procedure 

96.    General rules of procedure.

97.    Discretionary power of court.

98.    Consolidation of petitions.

99.    Power to change or substitute creditors.

100. Continuance of proceedings on death of debtor.

101. Power to stay proceedings.

102. Power to present petition against one partner.

103. Power to dismiss petition against some respondents only.

104. Actions by trustee and bankrupt’s partner.

105. Actions on joint contracts.

106. Proceedings in partnership

Part VI: Supplemental Provisions 

Disobedience to order of court

107. Disobedience to Order of Court. 

Application of Act

108. Exclusion of corporations and companies.

109.  Administration in bankruptcy of estate of person dying insolvent.

General Regulations 

110. Power to make regulations.

Fees and Remuneration 

111. Fees and remuneration.

112.  Disposal of Official Receiver’s fees.

Evidence  

113.   Evidence of proceedings at meetings of creditors.

114.    Evidence of proceedings in bankruptcy.

115.    Swearing of affidavit.

116. Death of debtor or witness.

117. Statements made by Official Receiver or trustee through an interpreter.

118. Certificate of appointment of trustee.

Miscellaneous

 119. Computation of time.

120.  Service of notices.

121.          Formal defect not to invalidate proceedings.

122. Exemptions of deeds, etc. from stamp duty.

123. Action of corporations, partners, etc.

124. Certain provisions to bind the State.

Unclaimed Funds’ or Dividends

125. Unclaimed and undistributed dividends or funds.

Part VII: Disqualification of Bankruptcy  

126.  Disqualifications of bankrupt.

127. Offences and penalty.

128. Vacation of office, etc. by bankrupt.

Part VIII: Bankruptcy offences 

129. Fraudulent debtors.

130. Certain offences by persons other than the debtor.

131. Undischarged bankrupt obtaining credit.

132. Frauds by bankrupts, etc.

133. Bankrupt guilty of gambling, etc.

134. Bankrupt failing to keep proper account.

135. Bankrupt absconding with property.

136. Debtor concealing himself to avoid service, etc.

137. False claim, etc.

138. Order by court for prosecution on report of trustee.

139. Criminal liability after discharge or composition.

140. Trial and punishment of offences.

141. Summary trial.

Part IX: Supplementary

142.   Interpretation.

143.  Citation  

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BANKRUPTCY ACT

An Act to make provisions for declaring as bankrupt any person who cannot pay his debts of a specified amount and to disqualify him from holding certain elective and other public offices or from practicing any regulated profession (except as an employee). 

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[20^th day of April 1979]                        [Commencement]

ALPHABETICAL INDEX TO THE LAWS OF NIGERIA