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Uganda Judgment

Commercial Court of Uganda

In Re: A Petition by Mohammed Amer Abdel Kaher Mohammed Abdel Magid Nagy (Bankruptcy Petition No. 8 of 2002) [2004] UGCommC 38 (16 November 2004)

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01

Holding and result

The court found that the petitioner had not complied with the mandatory requirement of filing a statement of affairs with the official receiver as stipulated under section 15 of the Bankruptcy Act. The statement of affairs attached to the petition did not bear the stamp of the official receiver, indicating non-compliance. Section 7 of the Act requires that a receiving order shall not be granted until the debtor has filed the statement of affairs with the official receiver. The court emphasized that compliance with all statutory conditions is a prerequisite for granting a receiving order. Consequently, the petition for a receiving order was refused, and the petitioner was directed to first file the statement of affairs with the official receiver as required by law.

Court disposition

Petition for receiving order refused due to non-compliance with statutory requirements.

Orders

  • Petitioner is directed to file the statement of affairs with the official receiver as required by sections 7 and 15 of the Bankruptcy Act before a receiving order can be considered.

02

Material facts

Parties

Mohammed Amer Abdel Kaher

Applicant Counsel: Mr. Phillip Karugaba

Mohammed Abdel Magid Nagy

Applicant Counsel: Mr. Phillip Karugaba

03

Procedural history

  1. Posture

    Bankruptcy Petition / Ruling on Petition for Receiving Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The petitioner seeks a receiving order and adjudication of bankruptcy on the ground of inability to pay debts, relying on sections 2(1)(f), 7, and 15 of the Bankruptcy Act. The petition is accompanied by a statement of affairs, but it was not filed with the official receiver as required by law.
Respondent
There is no respondent in this ex parte bankruptcy petition. The court considered compliance with statutory requirements on its own motion.

05

Court’s reasoning

  1. 01

    Section 15(1) and (2)(a) of the Bankruptcy Act (Cap 67)

    A debtor must file a statement of affairs with the official receiver prior to or within three days before presenting a bankruptcy petition.

  2. 02

    Section 7 and 15 of the Bankruptcy Act (Cap 67); Re Pinfold, Ex parte Pinfold (1892) 1 Q.B. 73

    A receiving order cannot be granted unless all prescribed statutory conditions are met, including the filing of the statement of affairs with the official receiver.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the petitioner had not complied with the mandatory requirement of filing a statement of affairs with the official receiver as stipulated under section 15 of the Bankruptcy Act. The statement of affairs attached to the petition did not bear the stamp of the official receiver, indicating non-compliance. Section 7 of the Act requires that a receiving order shall not be granted until the debtor has filed the statement of affairs with the official receiver. The court emphasized that compliance with all statutory conditions is a prerequisite for granting a receiving order. Consequently, the petition for a receiving order was refused, and the petitioner was directed to first file the statement of affairs with the official receiver as required by law.

Obiter and limits

  • A receiving order can only be granted after the debtor has complied with all the prescribed conditions.

Court disposition

Petition for receiving order refused due to non-compliance with statutory requirements.

  • Petitioner is directed to file the statement of affairs with the official receiver as required by sections 7 and 15 of the Bankruptcy Act before a receiving order can be considered.

Source and reliance status

Commercial Court of Uganda

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Source document

Commercial Court of Uganda

Judgment

[2004] UGCommC 38

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}{ \b\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 IN THE HIGH COURT OF UGANDA AT }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid16191988 KAMPALA}{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \line }{ \b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (COMMERCIAL DIVISION) \line }{\b\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 BANKRUPTCY PETITION NO. 8/2002 \line }{\b\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 IN THE MATTER OF A PETITION \line BY MOHAMMED AMER ABDEL \line }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid16191988 KAHER}{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 MOHAMMED ABDEL MAGID NAGY }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \line }{ \lang1033\langfe2057\langnp1033\insrsid8258196 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8258196 {\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 BEFORE:

}{ \b\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 THE HON. LADY JUSTICE M. S. ARACH }{\ul\lang1033\langfe2057\langnp1033\insrsid8258196 - }{\b\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 AMOKO \line }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\b\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 RULING: }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \line }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 The above named has filed this petition under S. 2 (1) (f), 7 and 15 of the Bankruptcy \line Act (cap 67). He is seeking a Receiving Order and order that he may be adjudged \line bankrupt. \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 The main ground for the petition is that he is unable to pay his debts. Section 2 (1) (f) of the Act provides that: \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid8258196 {\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \'93 (1). A debtor commits an act of bankruptcy in each of the following \line cases: }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line

}{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (a,). }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line }{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (b). }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \par }{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (c). }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line }{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (d). }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line }{\i\lang1033\langfe2057\langnp1033\insrsid8258196 (e)}{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line }{\i\lang1033\langfe2057\langnp1033\insrsid8258196 (f}{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 ). If he}{\i\lang1033\langfe2057\langnp1033\insrsid8258196 or she files in the Court a decl}{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 aration of his inability to pay his or \line her debts or presents a bankruptcy petition against himself or he}{ \i\lang1033\langfe2057\langnp1033\insrsid8258196 rs}{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 elf\'94 \line }{\i\lang1033\langfe2057\langnp1033\insrsid8258196 \par }\pard \s15\ql

\li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8258196 {\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 Section 4 of the Act empowers the Court to make a Receiving order for the protection of a debtor\rquote s estate, where a debtor commits an act of bankruptcy. Section 7 of the Act provides that a debtor\rquote s petition shall allege that the debtor is unable to pay his or her debts, and the presentation of the petition shall be deemed an act of bankruptcy without the previous filing by the debtor of any declaration of inability to pay his or her debts, and the Court shall there upon make a receiving order \'93except }{\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 however, that the order shall be refused until the debtor shall have filed with the official receiver a statement of and in relation to his or her affairs prepared in accordance with section }{ \ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid8258196 15}{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \'94. \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 Section 15 is entitled }{\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \'93Debtor\rquote s Statement of affairs.\'94 \line

}{ \i\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 It provides in subsection (1) and (2) (a) as follows: \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid8258196 {\i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \'93 (1). The debtor shall make out and submit to the official receiver a statement of and in relation to his or her affairs in the prescribed form, verified by affidavit; and showing particulars of the debtor\rquote s assets, debts and liabilities, the names, residences and occupation of his or her creditors, the securities held by them respectively, the dates when the securities were respectively given and such further or other information as may be prescribed or as the official receiver may require. \line (2). The statement shall be so submitted }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 - \line }{ \i\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 (a). prior to, but not more than three days before, the date of the presentation of the debtor\rquote s petition.\'94 \line }{\i\lang1033\langfe2057\langnp1033\insrsid8258196 \par }\pard \s15\ql

\li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8258196 {\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 I have carefully examined the petition before this Court and I find that the petitioner has not complied with the provisions of section 15 of the Act by filing the statement of affairs with the official receiver as required. The Statement of Affairs ac companying this petition does not bear the stamp of the official Receiver \emdash a clear indication that it was not so filed. In the circumstances, the petition for a Receiving order is refused and the Petitioner is directed to first file his statement of affai rs with the official Receiver as required by sections 7 and 15 of the Act. \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 A Receiving order can only be granted after the debtor has complied }{\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 with all the }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 prescribed conditions. See: Re Pinfold, EX parte Pinfold (}{\lang1033\langfe2057\langnp1033\insrsid8258196 1892) 1 Q. B. 73. \line \par M. S. Arach - }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 Amoko \line

}{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 JUDGE \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 17/11/2004 \line }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16191988 {\ul\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 Ruling received in the presence of: }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \line 1. Mr. Phillip Karugaba for the Petitioner. \line 2. Petitioner. \line 3. Okuni \emdash Court clerk. \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 \par }{\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 M. S. Arach \emdash Amoko \line }{\b\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 JUDGE \line }{\lang1033\langfe2057\langnp1033\insrsid8258196 17/11/2004 \line }{ \lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16191988 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid16471681\charrsid14751626 \par }}

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Re Pinfold, Ex parte Pinfold (1892) 1 Q.B. 73

Case cited

Bankruptcy Act (Cap 67) ss. 2(1)(f), 4, 7, 15

Legislation

Legislation referenced in the available case record.

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