Legislative Dictionary - A
Act of Bankruptcy
|Title||Act of Bankruptcy|
Any of the following acts of the debtor shall be an act of bankruptcy, namely:—
(a) if, in Bangladesh or elsewhere, he makes a transfer of all or substantially all 4he property kept in his name or in the name of his wife, son or daughter by benami to a third person for the benefit of his creditors generally;
(b) if, in Bangladesh or elsewhere, he makes a transfer of his property or property kept in the name of his wife, son or daughter by benami or of any part thereof with intent to defeat or delay his creditors' demand;
Explanation.— A person shall be deemed to have transferred his property or any part thereof with intent to defeat or delay his creditors' demand, if he, without receiving reasonable value therefore, made such transfer at a time when he was unable to pay his debts.
(c) if, in Bangladesh or elsewhere, he makes any transfer of his property or of any part thereof or mortgages, pledges, hypothecates or creates charge thereon, which would, under this Act or any other enactment for the time being in force, be void as a fraudulent preference if he were adjudged bankrupt;
(d) if, with intent to defeat or delay his creditors' demand—
(i) he departs or remains out of Bangladesh;
(ii) he departs from his dwelling-house or usual place of business or otherwise absents himself;
(iii) he secludes himself so as to deprive his creditors of the means of communicating with him;
(iv) submits collusively or fraudulently to an adverse decree, judgment or order of any court or other authority;
(e) if any of his property has been sold in execution of a decree of any court for the payment of money;
(f) if he files plaint to the court for being adjudged bankrupt under the provisions of this Act;
(g) if he gives notice to any of his creditors that he has suspended, or that he is about to suspend, the payment of his debts;
(h) if he is imprisoned in execution of a decree of any court for the payment of debt; or
(i) if one or more creditors, having a valid and matured debt against the debtor for an amount of not less than Tk. 5,00,000.00 has or have served on such debtor a formal demand under this Act requiring such debtor to pay the debt or to give security for it to the satisfaction of such creditor or creditors and, within 90 days after service of the demand, the debtor does not comply with the requirements of the demand.
[See, Section 9, the Bankruptcy Act, 1997 (Act No. X of 1997)].
|Created On||December 19, 2010, 11:27 AM|