Re: Prem Singh (Bankruptcy Cause No. 4 of 1941) [1943] EACA 84 (1 January 1943)

BANKRUPTCY JURISDICTION

BEFORE BARTLEY. J.

Re PREM SINGH s/o DAULAT SINGH. Debtor

Bankruptcy Cause No. 4 of 1941

Bankruptcy—Application for discharge—Contents of Report by Official Receiver— Notice by Bankrupt disputing statements in report—Bankruptcy Ordinance. 1930, Section 28 (2)—Bankruptcy Rules, 1927, Rule 188.

On an application for discharge by the bankrupt the Official Receiver made the following report: $-$

- $\therefore$ "1. (a) The Receiving Order was made on 15th April, 1941. - (b) That an Order for Summary Administration was made on 5th May. 1941. $\mathcal{L}^{\mathcal{A}}(\mathcal{A})$ in a digensity of the - (c) The first Meeting of Creditors was held on 21st May, 1941. - (d) That an Order of Adjudication was made on 23rd May, 1941. - (e) The Public Examination was concluded on 23rd May, 1941. - 2. According to the Bankrupt's Statement of Affairs: - (a) The Liabilities to rank for dividend were estimated at £253-00-00. But the proofs actually admitted at this date $(\text{\textsterling}72-13-00)$ and the probable claims not yet admitted (£187-10-00) amount to £260-03-00. - (b) The Preferential and other claims payable in full were estimated by the Bankrupt to be $£8-00-00$ . - A Preferential claim was proved and paid—£3-00-00. - (c) The debtor disclosed no assets. - 3. That the debtor was on 20th March, 1942, ordered by the Court to pay Sh. 20 per month for the benefit of his creditors, commencing from March.

1942. The Debtor has so far paid Sh. 50 only and the arrears of instalments under this Order amount to Sh. 370 up to and including the instalment for the month of November, 1943. - 4. THE OFFICIAL RECEIVER submits: - (a) That the Bankrupt's assets are not of a value equal to Ten Shillings in the Pound on the amount of his unsecured Liabilities. - (b) That the Bankrupt-contracted debts provable in the Bankruptcy without having at the time of contracting them any reasonable or probable ground of expectation of being able to pay them. - (c) That the bankrupt's conduct during the proceedings has not been satisfactory.

Dated at Nairobi this 18th day of November, 1943.

(Sgd.) H. V. ANDERSON, Deputy Official Receiver."

Under Rule 188 of the Bankruptcy Rules, 1927, the Bankrupt by his advocates Messrs. Khanna & Mandavia gave the following notice to the Official Receiver: -

"We have to notify you that our client above-named is constrained to object to paragraphs 4 $(b)$ and $(c)$ of your Report herein dated the 18th inst., since the allegations therein are too vague to enable the Bankrupt to meet the same, and calculated to prejudice, embarrass and defeat fair trial of his application."

Held $(26-11-43)$ .—(1) That the Official Receiver should have made statements setting out the facts on which he relies and then his conclusions from those facts and not merely his conclusions from facts not set out in the report.

(2) That the bankrupt must be in a position to know the facts on which the Official Receiver relies to enable him to give notice under rule 188 of his intention to dispute the facts if he wishes to do so as well as the conclusions.

Khanna for the Bankrupt.

Anderson, Deputy Official Receiver.

ORDER.-I am quite satisfied from the facts and the decision in in re Woolf 22 T. L. R. 501 that the Official Receiver in his report should have made statements. setting out the facts on which he relies and then his conclusions from those facts and not merely his conclusions from facts not set out in the report. The applicant. must be in a position to know the facts on which the Official Receiver relies to enable him to give notice under Rule 188 of his intention to dispute the facts if he wishes to do so as well as the conclusions.

I order the Official Receiver to prepare an amended report setting out the facts on which he relies as well as his conclusions. The report to be treated as the original report. $\overline{ }$