Uganda Case Law

Lalji v Ahmed (C.A. 14/1933.)

Lalji v Ahmed (C.A. 14/1933.) [1933] EACA 2 (1 January 1933)

Court

East African Court of Appeal

Case number

C.A. 14/1933.

Judge

Abrahams CJ, Ag P (Uganda), Barth, C.J (Kenya), Sheridan, C.J. (Tanganyika)

The Court of Appeal held that the respondent was not a 'debtor' within the meaning of the Deeds of Arrangement Ordinance as construed by reference to the Bankruptcy Ordinance, 1930, and therefore the deed did not require registration in Kenya. The arrangement did not operate as a release of the original debts until payment of the composition was made, and the right of action on the promissory notes was suspended, not extinguished. The respondent's failure to procure and tender the promissory notes as stipulated in the deed entitled the appellant to revive his original cause of action. The exi…

Source excerpt

• Deeds Of Arrangement
• Novation
• Bankruptcy Definition
• Registration Requirements
• Fraudulent Preference
• Composition With Creditors

Shah Nemchand Bros.

Shah Nemchand Bros. (Bankruptcy Ordinance) (Cause No. 1927) [1927] EACA 11 (1 January 1927)

Court

East African Court of Appeal

Case number

Cause No. 1927

Judge

Crean AJ

The court approved a composition scheme despite offences under the Bankruptcy Ordinance, holding that creditor benefit and no opposition could justify discretion.

• Bankruptcy Scheme Of Arrangement
• Composition With Creditors
• Court Discretion In Insolvency
• Offences Under Bankruptcy Law
• Bankruptcy-scheme-of-arrangement
• Composition-with-creditors

In Re: Namchand Panachand Shah

In Re: Namchand Panachand Shah (Cause No., 14/1927.) [1927] EACA 44 (1 January 1927)

Court

East African Court of Appeal

Case number

Cause No., 14/1927.

Judge

Crean, Actg J

The court held that, although sections 18 and 28 of the Bankruptcy Ordinance, 1925 appear to mandate refusal of approval for a scheme where the bankrupt has committed an offence, section 28 allows for exceptions where special reasons exist. In this case, the unanimous support of the creditors and the Official Receiver's lack of objection constitute special reasons. The court determined that the interests of the creditors should take precedence, and that the court is not legally bound to refuse approval solely because of the bankrupt's offence. The scheme was therefore approved as being in the…

Source excerpt

• Bankruptcy Scheme Approval
• Composition With Creditors
• Bankrupt Offences
• Court Discretion In Insolvency