Deedsof Arrangement Act Cap 54 - as Plain Text by MWakili

LAWS OF KENYA DEEDS OF ARRANGEMENT ACT CHAPTER 54 Revised Edition 2012 [2010] Published by the National Council for Law Reporting with the Authority of the Attorney-General www.kenyalaw.org [Rev.

2012] CAP.

54 Deeds of Arrangement CHAPTER 54 DEEDS OF ARRANGEMENT ACT ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1.

Short title.

2.

Interpretation.

3.

Deeds of arrangement to which Act applies.

PART II AVOIDANCE OF DEEDS OF ARRANGEMENT WHERE STATUTORY CONDITIONS NOT COMPLIED WITH 4.

Avoidance of unregistered deeds of arrangement.

5.

Avoidance of deeds of arrangement unless assented to by majority of creditors.

PART III REGISTRATION OF DEEDS OF ARRANGEMENT 6.

Registrar.

7.

Mode of registration.

8.

Form of register.

9.

Rectification of register.

10.

Time for registration.

11.

Inspection of register and registered deeds.

12.

Local registration of copy of deeds.

PART IV PROVISIONS AS TO TRUSTEES 13.

Security by trustee.

14.

Penalty on trustee acting when deed of arrangement void.

15.

Transmission of accounts to Official Receiver.

16.

Transmission of accounts to creditors.

17.

Audit of accounts.

18.

Payment of undistributed moneys into court.

19.

Preferential payment to creditor of an offence.

20.

Power of High Court to appoint new trustee.

21.

Protection of trustees under void deeds.

22.

Notice to creditors of avoidance of deed.

23.

Payment of expenses incurred by trustees.

24.

Application of Part.

PART V GENERAL 25.

Courts in which applications for enforcement of trusts to be made.

26.

Relation to bankruptcy law.

27.

Office copies.

28.

Fees.

29.

Rules.

3 [Issue 1] [Rev.

2012] CAP.

54 Deeds of Arrangement CHAPTER 54 DEEDS OF ARRANGEMENT ACT [Date of commencement: 3rd September, 1930.] An Act of Parliament to regulate deeds of arrangement [Cap.

31 of (1948), Act No.

15 of 1961, Act No.

28 of 1961, Act No.

36 of 1962, L.N.

2/1964.] PART I PRELIMINARY 1.

Short title This Act may be cited as the Deeds of Arrangement Act.

2.

Interpretation (1) In this Act, except where the context otherwise requires creditors generally includes all creditors who may assent to, or take the benefit of, a deed of arrangement; property includes money, goods, things in action, land and every description of property whether movable or immovable and whether situated in Kenya or elsewhere; and also obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, arising out of or incidental to property as above defined.

(2) For the purpose of determining the number of creditors for whose benefit a deed is made, any two or more joint creditors shall be treated as a single creditor.

[Act No.

15 of 1961, Sch.] 3.

Deeds of arrangement to which Act applies (1) A deed of arrangement to which this Act applies includes any instrument of the classes hereinafter mentioned, whether under seal or not (a) made by, for or in respect of the affairs of a debtor for the benefit of his creditors generally; (b) made by, for or in respect of the affairs of a debtor who was insolvent at the date of the execution of the instrument for the benefit of any three or more of his creditors, otherwise than in pursuance of the law for the time being in force relating to bankruptcy.

(2) The classes of instrument hereinbefore referred to are (a) an assignment of property; (b) a deed of or agreement for a composition; and (c) in cases where creditors of the debtor obtain any control over his property or business (i) a deed of inspectorship entered into for the purpose of carrying on or winding up a business; 5 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement (ii) a letter of licence authorizing the debtor or any other person to manage, carry on, realize or dispose of a business with a view to the payment of debts; and (iii) any agreement or instrument entered into for the purpose of carrying on or winding up the debtors business, or authorizing the debtor or any other person to manage, carry on, realize or dispose of the debtors business with a view to the payment of his debts.

PART II AVOIDANCE OF DEEDS OF ARRANGEMENT WHERE STATUTORY CONDITIONS NOT COMPLIED WITH 4.

Avoidance of unregistered deeds of arrangement A deed of arrangement shall be void unless it is registered with the Registrar under this Act within seven clear days after the first execution thereof by the debtor or any creditor, or, if it is executed in any place out of the City of Nairobi, then within seven clear days after the time at which it would, in the ordinary course of post, arrive in Nairobi if posted within one week after the execution thereof, and unless it is duly stamped with the proper stamp duty.

[Act No.

15 of 1961, Sch.] 5.

Avoidance of deeds of arrangement unless assented to by majority of creditors (1) A deed of arrangement which either is expressed to be or is in fact for the benefit of a debtors creditors generally shall be void unless, before or within twenty-one days after the registration thereof, or within such extended time as the High Court or the Court having jurisdiction in bankruptcy in the district in which the debtor resided or carried on business at the date of the execution of the deed may allow, it has received the assent of a majority in number and value of the creditors of the debtor.

(2) The list of creditors annexed to the affidavit of the debtor filed on the registration of the deed of arrangement shall be prima facie evidence of the names of the creditors and the amounts of their claims.

(3) The assent of a creditor for the purposes of subsection (1) shall be established by his executing the deed of arrangement or sending to the trustee his assent in writing attested by a witness, but not otherwise.

(4) The trustee shall file with the Registrar at the time of the registration of a deed of arrangement, or, in the case of a deed of arrangement assented to after registration, within twenty-eight days after registration or within such extended time as the High Court or the court having jurisdiction in bankruptcy in the district in which the debtor resided or carried on business at the date of the execution of the deed may allow, a statutory declaration by the trustee that the requisite majority of the creditors of the debtor have assented to the deed of arrangement, which declaration shall, in favour of a purchaser for value, be conclusive evidence, and, in other cases, be prima facie evidence, of the fact declared.

(5) In calculating a majority of creditors for the purposes of this section, a creditor holding security upon the property of the debtor shall be reckoned as a creditor only in respect of the balance (if any) due to him after deducting the [Issue 1] 6 [Rev.

2012] CAP.

54 Deeds of Arrangement value of that security, and creditors whose debts amount to sums not exceeding two hundred shillings shall be reckoned in the majority in value, but not in the majority in number.

PART III REGISTRATION OF DEEDS OF ARRANGEMENT 6.

Registrar The Registrar-General shall be the Registrar of Deeds of Arrangement for the purposes of this Act.

7.

Mode of registration (1) The registration of a deed of arrangement under this Act shall be effected in the manner prescribed by subsection (2).

(2) A true copy of the deed, and of every schedule or inventory thereto annexed, or therein referred to, shall be presented to and filed with the Registrar within seven clear days after the execution of the deed (in the same manner as a bill of sale given by way of security for the payment of money is required to be filed), together with an affidavit verifying the time of execution, and containing a description of the residence and occupation of the debtor, and of the place or places where his business is carried on, and an affidavit by the debtor stating the total estimated amount of property and liabilities included under the deed, the total amount of the composition (if any) payable thereunder and the names and addresses of his creditors.

(3) No deed shall be registered under this Act unless the original of the deed, duly stamped with the proper stamp duty, is produced to the Registrar at the time of registration.

[Act No.

15 of 1961, Sch.] 8.

Form of register The Registrar shall keep a register wherein shall be entered, as soon as conveniently may be after the presentation of a deed for registration, an abstract of the contents of every deed of arrangement registered under this Act, containing the following and any other prescribed particulars (a) the date of the deed; (b) the name, address and description of the debtor, and the place or places where his business was carried on at the date of the execution of the deed, and the title of the firm or firms under which the debtor carried on business, and the name and address of the trustee (if any) under the deed; (c) a short statement of the nature and effect of the deed, and of the composition in the pound payable thereunder; (d) the date of registration; (e) the amount of property and liabilities included under the deed, as estimated by the debtor.

9.

Rectification of register The High Court upon being satisfied that the omission to register a deed of arrangement within the time required by this Act or that the omission or 7 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement misstatement of the name, residence or description of any person was accidental, or was due to inadvertence or to some cause beyond the control of the debtor and not imputable to any negligence on his part, may, on the application of any party interested and on such terms and conditions as are just and expedient, extend the time for registration, or order the omission or misstatement to be supplied or rectified by the insertion in the register of the true name, residence or description.

10.

Time for registration Where the time for registering a deed of arrangement expires on a Sunday, or other day on which the registration office is closed, the registration shall be valid if made on the next following day on which the office is open.

11.

Inspection of register and registered deeds Any person shall be entitled, at all reasonable times, to search the register on payment of one shilling, or such other fee as may be prescribed, and, subject to such regulations as may be prescribed, shall be entitled, at all reasonable times, to inspect, examine and make extracts from any registered deed of arrangement, without being required to make a written application or to specify any particulars in reference thereto, upon payment of one shilling, or such other fee as may be prescribed, for each deed of arrangement inspected: Provided that the extracts shall be limited to the dates of execution and of registration, the names, addresses and descriptions of the debtor and of the parties to the deed, a short statement of the nature and affect of the deed and any other prescribed particulars.

12.

Local registration of copy of deeds (1) Where the place of business or residence of the debtor who is one of the parties to a deed of arrangement, or who is referred to therein, is situated in some place within an area in respect of which a district registry of the High Court has been established, the Registrar shall, within three clear days after registration in the principal registry, and, in accordance with the prescribed directions, transmit a copy of the deed to the district registrar of the area in which that place of business or residence is situated.

(2) Every copy so transmitted shall be filed, kept and indexed by the district registrar in the prescribed manner, and any person may search, inspect, make extracts from and obtain copies of the registered copy in the same manner and upon the same terms, as to payment or otherwise, as near as may be, as in the case of deeds registered under this Act.

PART IV PROVISIONS AS TO TRUSTEES 13.

Security by trustee (1) The trustee under a deed of arrangement shall, within fourteen days from the date on which the statutory declaration certifying the assent of the creditors is filed give security in the prescribed manner to the judge or registrar of the court having jurisdiction in bankruptcy in the district in which the debtor resided or carried on business at the date of the execution of the deed, in a sum equal to the estimated assets available for distribution amongst the unsecured creditors [Issue 1] 8 [Rev.

2012] CAP.

54 Deeds of Arrangement as shown by the affidavit filed on registration to administer the deed properly and account fully for the assets which come to his hands unless a majority in number and value of the debtors creditors, either by resolution passed at a meeting convened by notice to all the creditors, or by writing addressed to the trustee, dispense with his giving such security: Provided that, when such a dispensation has been so given, the trustee shall forthwith make and file with the Registrar a statutory declaration to that effect, which declaration shall, in favour of a purchaser for value, be conclusive evidence, and in other cases be prima facie evidence, of the facts declared.

(2) If a trustee under a deed of arrangement fails to comply with the requirements of this section, the court, having jurisdiction in bankruptcy in the district in which the debtor resided or carried on business at the date of the execution of the deed, on the application of any creditor and after hearing such persons as it may think fit, may declare the deed of arrangement to be void, or may make an order appointing another trustee in the place of the trustee appointed by the deed of arrangement.

(3) A certificate that the security required by this section has been given by a trustee, signed by the registrar to whom it was given and filed with the Registrar, shall be conclusive evidence of the fact.

(4) All moneys received by a trustee under a deed of arrangement shall be banked by him to an account to be opened in the name of the debtors estate.

(5) In calculating a majority of creditors for the purposes of this section, a creditor holding security upon the property of the debtor shall be reckoned as a creditor only in respect of the balance (if any) due to him after deducting the value of such security, and creditors whose debts amount to sums not exceeding two hundred shillings shall be reckoned in the majority in value but not in the majority in number.

14.

Penalty on trustee acting when deed of arrangement void If a trustee acts under a deed of arrangement (a) after it has to his knowledge become void by reason of non- compliance with any of the requirements of this Act or any enactment repealed by this Act; or (b) after he has failed to give security within the time and in the manner provided for by this Act or any enactment repealed by this Act, he shall be guilty of an offence and liable to a fine not exceeding one hundred shillings for every day between the date on which the deed became void or the expiration of the time within which security should have been given, as the case may be, and the last day on which he is proved to have acted as trustee, unless he satisfies the court before which he is accused that his contravention of the law was due to inadvertence, or that his action has been confined to taking such steps as were necessary for the protection of the estate.

15.

Transmission of accounts to Official Receiver (1) Every trustee under a deed of arrangement shall, at such times as may be prescribed, transmit to the Official Receiver in Bankruptcy, or as he directs, an account of his receipts and payments as trustee, in the prescribed form and verified in the prescribed manner.

9 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement (2) If any trustee fails to transmit such account, he shall be guilty of an offence and liable, on conviction by a subordinate court of the first class, to a fine not exceeding one hundred shillings for each day during which the default continues, and the High Court, for the purpose of enforcing the provisions of subsection (1) of this section, shall exercise, on the application of the Official Receiver, all the powers conferred on the court by subsection (2) of section 100 of the Bankruptcy Act (Cap.

53) in cases of bankruptcy.

(3) The accounts transmitted to the Official Receiver in pursuance of this section shall be open to inspection by the debtor or any creditor or other person interested, on payment of the prescribed fee, and copies of or extracts from the accounts shall, on payment of the prescribed fee, be furnished to the debtor, the creditors or any other persons interested.

(4) In this section, trustee includes any person appointed to distribute a composition or to act in any fiduciary capacity under any deed of arrangement, and prescribed means prescribed by rules under the Bankruptcy Act.

16.

Transmission of accounts to creditors Every trustee under a deed of arrangement shall, at the expiration of six months from the date of the registration of the deed, and thereafter at the expiration of every subsequent period of six months until the estate has been finally wound up, send to each creditor who has assented to the deed a statement in the prescribed form of the trustees accounts and of the proceedings under the deed down to the date of the statement, and shall, in his affidavit verifying his accounts transmitted to the Official Receiver, state whether or not he has duly sent those statements, and the dates on which the statements were sent; and, if a trustee fails to comply with any of the provisions of this section, the High Court may, for the purpose of enforcing those provisions, exercise, on the application of the Official Receiver, all the powers conferred on the Court by subsection (2) of section 100 of the Bankruptcy Act (Cap.

53) in cases of bankruptcy.

17.

Audit of accounts (1) Where, in the course of administration of the estate of a debtor who has executed a deed of arrangement, or within twelve months from the date when the final accounts of the estate were rendered to the Official Receiver, an application in writing is made to the Official Receiver by a majority in number and value of the creditors who have assented to the deed for an official audit of the trustees accounts, the Official Receiver may cause the trustees accounts to be audited, and in that case all the provisions of the Bankruptcy Act (Cap.

53) relating to the institution and enforcement of an audit of the accounts of a trustee in bankruptcy (including the provisions as to fees) shall, with necessary modifications, apply to the audit of the trustees accounts, and the Official Receiver may require production on the audit of a certificate for the taxed costs of any advocate whose costs have been paid or charged by the trustee, and may disallow the whole or any part or any costs in respect of which no certificate is produced.

(2) The Official Receiver may determine how and by what parties the costs, charges and expenses of and incidental to the audit (including any prescribed fees chargeable in respect thereof) are to be borne, whether by the applicants or by the trustee or out of the estate, and may, before granting an application for an audit, require the applicants to give security for the costs of the audit.

[Issue 1] 10 [Rev.

2012] CAP.

54 Deeds of Arrangement 18.

Payment of undistributed moneys into court At any time after the expiration of two years from the date of the registration of a deed of arrangement, the court having jurisdiction in bankruptcy in the district in which the debtor resided or carried on business at the date of the execution of the deed may, on the application of the trustee or a creditor, or on the application of the debtor, order that all moneys representing unclaimed dividends and undistributed funds then in the hands of the trustee or under his control be paid into court or to the Official Receiver for the credit of the Bankruptcy Estates account, as the Court deems fit.

19.

Preferential payment to creditor an offence If a trustee under a deed of arrangement pays to any creditor out of the debtors property a sum larger in proportion to the creditors claim than that paid to other creditors entitled to the benefit of the deed, then, unless the deed authorizes him to do so, or unless such payments are either made to a creditor entitled to enforce his claim by distress or are such as would be lawful in a bankruptcy, he shall be guilty of an offence and be liable to a fine not exceeding twenty thousand shillings or to imprisonment for a term not exceeding two years, or to both such fine and imprisonment.

[Act No.

28 of 1961, Sch.] 20.

Power of High Court to appoint new trustee (1) The High Court may, whenever it is expedient to appoint a new trustee under a deed of arrangement and it is found inexpedient, difficult or impracticable so to do without the assistance of the Court, make an order for the appointment of a new trustee; and, in particular and without prejudice to the generality of the foregoing provision, the Court may make an order for the appointment of a new trustee in substitution for a trustee who is convicted of felony or is a bankrupt.

(2) An order under this section, and any consequential vesting order or conveyance, shall not operate further or otherwise as a discharge to any former trustee than an appointment of a new trustee under any power for that purpose contained in any deed of arrangement would have operated.

21.

Protection of trustees under void deeds (1) Where a deed of arrangement is void by reason that the requisite majority of creditors have not assented thereto, or, in the case of a deed for the benefit of three or more creditors, by reason that the debtor was insolvent at the time of the execution of the deed and that the deed was not registered as required by this Act, but is not void for any other reason, and a receiving order is made against the debtor upon a petition presented after the lapse of three months from the execution of the deed, the trustee under the deed shall not be liable to account to the trustee in the bankruptcy for any dealings with or payments made out of the debtors property which would have been proper if the deed had been valid, if he proves that at the time of those dealings or payments he did not know, and had no reason to suspect, that the deed was void.

(2) Where a receiving order is made against a debtor under section 102 of the Bankruptcy Act (Cap.

53), this section shall apply if the receiving order was made after the lapse of three months from the execution of the deed.

11 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement 22.

Notice to creditors of avoidance of deed When a deed of arrangement is void by virtue of this Act for any reason other than that, being for the benefit of creditors generally, it has not been registered within the time allowed for the purpose by this Act, the trustee shall, as soon as practicable after he has become aware that the deed is void, give notice in writing thereof to each creditor whose name and address he knows, and file a copy of the notice with the Registrar, and if he fails, so to do he shall be guilty of an offence and be liable, on conviction by a subordinate court of the first class, to a fine not exceeding four hundred shillings.

23.

Payment of expenses incurred by trustees Where a deed of arrangement is avoided by reason of the bankruptcy of the debtor, any expenses properly incurred by the trustee under the deed in the performance of any of the duties imposed on him by this Act shall be allowed or paid to him by the trustee in the bankruptcy as a first charge on the estate.

24.

Application of Part The provisions of this Part, except such of those provisions (a) as relate to the transmission of accounts to the Official Receiver of debtors estates; (b) as provide for the protection of trustees under void deeds; (c) as require a notice to be given to creditors of avoidance of deeds; (d) as provide for the payment of expenses incurred by trustees, shall not apply to a deed of arrangement made for the benefit of any three or more of the debtors creditors unless it is in fact for the benefit of the debtors creditors generally.

PART V GENERAL 25.

Courts in which applications for enforcement of trusts to be made Any application by the trustee under a deed of arrangement which either is expressed to be or is in fact for the benefit of the debtors creditors generally, or by the debtor or by any creditor entitled to the benefit of such a deed of arrangement, for the enforcement of the trusts or the determination of questions under it shall be made to the High Court.

26.

Relation to bankruptcy law (1) If the trustee under a deed of arrangement which either is expressed to be or is in fact for the benefit of the debtors creditors generally serves in the prescribed manner on any creditor of the debtor notice in writing of the execution of the deed and of the filing of the statutory declaration certifying the creditors assents with an intimation that the creditor will not after the expiration of two months from the service of the notice be entitled to present a bankruptcy petition against the debtor founded on the execution of the deed or on any other act committed by him in the course or for the purpose of the proceedings preliminary to the execution of the deed as an act of bankruptcy, that creditor shall not, after the expiration of that period, unless the deed becomes void, be entitled to present a bankruptcy petition against the debtor founded on the execution of the deed or any act so committed by him as an act of bankruptcy.

[Issue 1] 12 [Rev.

2012] CAP.

54 Deeds of Arrangement (2) Where a deed of arrangement referred to in subsection (1) has become void by virtue of this Act or any enactment repealed by this Act, the fact that a creditor has assented to the deed shall not disentitle him to present a bankruptcy petition founded on the execution of the deed of arrangement as an act of bankruptcy.

(3) Save as otherwise expressly provided by this Act, nothing in this Act shall be construed as repealing or shall affect any provision of the law for the time being in force in relation to bankruptcy or shall give validity to any deed or instrument which by law is an act of bankruptcy or void or voidable.

27.

Office copies Subject to the provisions of this Act, and to any rules made thereunder, any person shall be entitled to have an office copy of, or extract from, any deed registered under this Act upon paying the prescribed fees, and any such copy or extract shall, in all courts and before all arbitrators or other persons, be admitted as prima facie evidence thereof, and of the fact and date of registration as shown thereon.

28.

Fees There shall be taken, in respect of the registration of deeds of arrangement, and in respect of any copies or extracts or official searches made by the Registrar, such fees as may be from time to time prescribed; and nothing in this Act contained shall make it obligatory on the Registrar to do, or permit to be done, any act in respect of which any fee is specified or prescribed, except on payment of that fee.

29.

Rules The Chief Justice may make rules for carrying into effect the objects of this Act.

[Act No.

28 of 1961, Sch., Act No.

36 of 1962, Sch.] 13 [Issue 1] [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] CHAPTER 54 DEEDS OF ARRANGEMENT ACT SUBSIDIARY LEGISLATION List of Subsidiary Legislation Page 1.

Deeds of Arrangement Rules.

17 15 [Issue 1] [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] DEEDS OF ARRANGEMENT RULES ARRANGEMENT OF RULES PART I DEEDS OF ARRANGEMENT RULES Rule 1.

Short title.

2.

Interpretation.

3.

Forms.

PART II REGISTRATION OF DEEDS 4.

Affidavits.

5.

Endorsement on copy of deed for filing.

6.

Execution of deed by trustee prior to registration.

7.

Certificate of registration on original deed.

Searches and Extracts 8.

Extracts from filed copy of deed.

9.

Search and inspection in court.

Transmission of Copies to District Registries or other Courts 10.

Endorsement to be made on copies transmitted to District Registries.

11.

Transmission of copy by post.

12.

Copies to be numbered and filed.

13.

Extra copies of deed to be furnished in certain cases.

14.

Index to be kept.

15.

Certified copies and searches.

PART III PROCEDURE 16.

Applications, how to be made.

17.

Applications, to whom to be made.

18.

Evidence.

19.

Affidavits by parties other than applicant.

20.

Chambers and adjournment to court.

21.

Service of application under section 13(2).

22.

Application to determine liability on bond.

23.

Procedure on application under section 13(2).

PART IV TRUSTEES 24.

Security by trustee.

25.

Copy of affidavit of debtor to be filed on giving security.

26.

Certificate that security given to be sent to Registrar.

27.

Notice by new trustee of appointment.

28.

Notice to creditor of execution of deed, etc.

29.

Audit of trustees accounts.

30.

Certificate of audit.

17 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] PART V ACCOUNTS Rule 31.

Transmission of accounts.

32.

Receipts and payments.

33.

Trading account.

34.

Accounts, size of paper.

35.

Petty expenses.

36.

Realisations.

37.

Dividends.

38.

Partnership accounts.

39.

Imperfect accounts.

40.

Affidavit of no receipts or payments.

41.

Affidavit verifying final account.

42.

Summary of accounts or modified forms of account in particular cases.

43.

Swearing affidavits respecting accounts.

PART VI FEES 44.

Fees.

SCHEDULES FIRST SCHEDULE FORMS SECOND SCHEDULE FEES [Issue 1] 18 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] DEEDS OF ARRANGEMENT RULES [Cap.

31 of (1948), Sub.

Leg., L.N.

336/1957.] RULES UNDER SECTION 27 PART I DEEDS OF ARRANGEMENT RULES 1.

Short title These Rules may be cited as the Deeds of Arrangement Rules.

2.

Interpretation In these Rules, except where the context or subject-matter otherwise requires debtor means any person by or for whom, or in respect of whose affairs, a deed of arrangement as defined by the Act shall be made or entered into, and includes a firm of persons in co-partnership; deed means any deed of arrangement as defined by the Act; Registrar means the Registrar of Deeds of Arrangement constituted by the Act.

Registrar of the Court includes a District or Deputy Registrar of the Court having jurisdiction under the Act; 3.

Forms (1) The forms in the Schedule or forms of a similar character with such variations as circumstances may require shall be used.

(2) The Chief Justice may from time to time alter any of the forms in the Schedule or substitute new forms in lieu thereof; and any forms so altered or substituted shall be published in the Gazette.

PART II REGISTRATION OF DEEDS 4.

Affidavits Affidavits made pursuant to section 7 of the Act shall be filed with the Registrar.

[Forms 4, 5, 6.] 5.

Endorsement on copy of deed for filing Upon every copy of a deed which is presented for filing there shall be endorsed, by the person who presents it, the name of the debtor, the date of the deed and of the filing thereof, the total amount of duty with which the deed is stamped and a certificate signed by the debtor or his advocate or the person who presents the copy for filing that the copy is a true copy of the deed.

6.

Execution of deed by trustee prior to registration An assignment of property by a debtor to a trustee or assignee for the benefit of his creditors shall not be registered under the Act unless it appears from the assignment that it has been or purports to have been executed, or (if not made by deed) signed by the trustee or assignee; and the Registrar shall before registering the assignment satisfy himself that the assignment purports to have been duly executed or signed as the case may be by the trustee or assignee thereunder.

7.

Certificate of registration on original deed When a deed is registered under the Act there shall be written on the original deed a certificate that the deed has been duly registered as prescribed by the Act, and the date of registration; and the certificate shall be sealed with the seal of the Registrar.

19 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] Searches and Extracts 8.

Extracts from filed copy of deed Extracts from the filed copy of a deed shall be limited to the date of execution and registration, the names, addresses and descriptions of the debtor and other parties to the deed and a short statement of the nature and effect of the deed.

9.

Search and inspection in court (1) The Registrar of the court shall permit inspection of the index kept by him at all times during court office hours and the taking of such extracts as are permitted by rule 8 upon payment of the prescribed fee.

(2) He shall also cause certified or uncertified copies to be made of any copy of a deed filed in his office as required, and shall issue the same upon payment of the prescribed fee.

Transmission of Copies to District Registries or other Courts 10.

Endorsement to be made on copies transmitted to District Registries Upon every copy of a deed which pursuant to the Act is transmitted to any District Registry of the High Court or to any other court, there shall be written copies of every endorsement or certificate written on the original deed or on the filed copy thereof; and the copies shall be signed by the Registrar or by some other person duly authorized by him.

11.

Transmission of copy by post Copies of deeds required to be transmitted to any District Registry or other court may be sent by registered letter post.

12.

Copies to be numbered and filed The Registrar of the court shall number the copies of deeds received by him in the order in which they are received, and shall file and keep them in his office.

13.

Extra copies of deed to be furnished in certain cases Where a debtor has a place of business or residence in some place within the area of a District Registry, there shall be furnished to the Registrar sufficient copies of the deed to enable him to transmit one to the District Registry of each area in which the place of business or residence is situated.

14.

Index to be kept The Registrar of the court shall keep an index, alphabetically arranged, in which he shall enter, under the first letter of the surname of the debtor, the surname, with his Christian name, or such name as he may have, address and description, and the number which has been affixed to the copy.

15.

Certified copies and searches The provisions of sections 11 and 27 of the Act shall apply to all documents filed with the Registrar pursuant to the Act or these Rules.

PART III PROCEDURE 16.

Applications, how to be made All applications other than applications under section 9 of the Act which by the Act or these Rules are directed or allowed to be made to the High Court shall be deemed to be [Issue 1] 20 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] proceedings in bankruptcy, and subject to the Act and these Rules shall be made in accordance with and in the manner prescribed for proceedings under the Bankruptcy Act (Cap.

53)and the Bankruptcy Rules, with such variations as the circumstances may require, and shall be supported by affidavit: Provided that applications for extension of time for procuring the assent of creditors to a deed under subsection (1) of section 5 of the Act or for filing the statutory declaration required by subsection (4) of section 5 of the Act may be made ex parte and shall be supported by affidavit unless the court shall in any case otherwise order.

17.

Applications, to whom to be made (1) The application, together with the affidavit in support, shall be filed with the Registrar of the court, who shall appoint a day for the hearing of the application not earlier than fourteen days from the date of such filing.

(2) The Registrar of the court may direct notice of the application to be served on such person or persons as he thinks fit, but in the absence of any such direction the notice, together with copies of the affidavits in support, shall be served, when the application is made by the trustee, on the debtor and on any creditor or other person to be affected thereby, and, when made by the debtor, on the trustee and on any creditor or other person to be affected thereby, and, when made by a creditor, on the trustee and the debtor.

18.

Evidence Evidence to be used on the application shall, unless the court otherwise orders, be given by affidavit, but any party opposing the application may, by notice in writing addressed to any deponent or his advocate, require the attendance of the deponent for cross-examination; and a copy of every such notice shall be filed with the Registrar of the court.

19.

Affidavits by parties other than applicant Affidavits intended to be used by any party to such application, other than the applicant, shall be filed in the court, and copies served on the applicant not less than four days before the day appointed for the hearing of the application.

20.

Chambers and adjournment to court All applications referred to in the preceding rules shall be heard and determined in chambers, but a judge may in any case adjourn the application to be heard and determined in court.

21.

Service of application under section 13(2) Notice of any application under subsection (2) of section 13 of the Act to declare a deed void, or to appoint another trustee, shall be served on the trustee named in the deed not less than eight days before the day appointed for the hearing.

22.

Application to determine liability on bond If a trustee fails to pay to a guarantee society or insurance company, party to a bond given by him under rule 23, the annual premium payable by him within fourteen days of the date when the premium becomes payable, or if the society or insurance company refuses to accept the premium, the society or insurance company may apply to the Registrar of the court to determine its liability under the bond and the Registrar of the court, if satisfied by affidavit that default in payment of the premium has been made by the trustee, or that the refusal of the society or insurance company to accept the premium in order that its liability may be determined is reasonable, may order that, as from the date of expiration of the year for which the last premium was paid, or as from the date of the order, whichever may be the later date, all further liability of the society or insurance 21 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] company shall cease and determine save and except in respect of any loss or damage occasioned by any act or default of the trustee in relation to his duties as trustee previously to the cesser and determination of liability, and the Registrar of the court may exercise any of the powers conferred by subsection (2) of section 13 of the Act.

23.

Procedure on application under section 13(2) Notice of any application under rule 22 shall be served on the three largest creditors named in the affidavit filed on registration of the deed not less than eight days before the day appointed for hearing the application, and any creditor may appear and be heard thereon, and rules 16 to 20 inclusive shall, so far as applicable, be observed.

PART IV TRUSTEES 24.

Security by trustee (1) The security to be given by the trustee under a deed of arrangement pursuant to subsection (1) of section 13 of the Act shall be by bond of a guarantee society or insurance company.

[Form 9.] (2) The Registrar of the court shall have an absolute discretion as to acceptance or refusal of the bond of any guarantee society or insurance company tendered to him.

(3) Pending the preparation of the bond, a cover note of an acceptable guarantee society or insurance company in the prescribed form shall be accepted by the Registrar of the court as temporary security.

[Form 10.] 25.

Copy of affidavit of debtor to be filed on giving security The trustee, on giving security for the due administration of the deed and for accounting fully for the assets pursuant to subsection (1) of section 13 of the Act, shall produce and hand to the Registrar of the court to whom the security is to be given a copy, certified by him, of the affidavit of the debtor filed on the registration of the deed, and the Registrar of the court shall file the certified copy.

26.

Certificate that security given to be sent to Registrar When security has been given by a trustee pursuant to subsection (1) of section 13 of the Act, the Registrar of the court to whom it is given shall, within three days after receipt thereof, send to the Registrar a certificate signed by him that security has been given and the Registrar shall forthwith file it; and the Registrar of the court shall also send to the Registrar within three days after any order made under subsection (2) of section 13 of the Act has been drawn up, a copy of the order.

[Forms 11, 12.] 27.

Notice by new trustee of appointment A trustee of a deed appointed in place of an original trustee shall forthwith send to the Registrar notice of his appointment, giving his full name and address, and showing how and when the appointment was made, and the Registrar shall forthwith file the notice.

28.

Notice to creditor of execution of deed, etc.

Notice under subsection (1) of section 26 of the Act to a creditor of the execution of a deed and of the filing of the certificate of the assents of creditors thereto shall be sent by prepaid registered post addressed to the creditor at the address mentioned in the affidavit of the debtor filed on registration of the deed, and service shall be deemed to have been made on the day on which the notice was posted.

[Form 14, Forms 2, 3.] [Issue 1] 22 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] 29.

Audit of trustees accounts Where the Official Receiver in Bankruptcy causes a trustees accounts to be audited, the trustee shall, within seven days of service upon him by registered post of an order made by the Official Receiver directing him so to do, deliver to the Official Receiver copies of all accounts transmitted by him to the Official Receiver pursuant to section 15 of the Act, together with an account in similar form from the date to which the last account extended to the date of the order; and the copies and account shall be accompanied by an affidavit of the trustee verifying them.

30.

Certificate of audit (1) The account as audited by the Registrar together with his certificate or observations thereon shall be filed and kept by the Official Receiver, and shall be open to the inspection of any creditor or of the trustee, who shall be at liberty to take a copy of the certificate or observations.

(2) A certified copy of the certificate or observations shall be supplied to the trustee or to any creditor on application.

PART V ACCOUNTS 31.

Transmission of accounts (1) In the case of any deed executed by the debtor after the 1st January in any year, the first account shall commence at the date of execution of the deed and be brought down to the 31st December next following the date thereof, and shall be transmitted within thirty days, and thereafter each succeeding account shall be for the year from the 1st January to the 31st December in each year, unless the estate is wound up prior to the 31st December, when the account shall run from the previous 1st January in that year to the date of closing the account: Provided that, in the case of any deed executed on or after the 1st October in any year, the account shall be filed not later than the 31st December in the following year.

[Form 15.] (2) Each account transmitted under this rule shall be verified by affidavit.

[Form 16.] (3) The trustee shall pay the prescribed fee to the Official Receiver at the time when he transmits his account.

32.

Receipts and payments Each receipt and payment shall be entered in such a manner as sufficiently to explain its nature.

33.

Trading account When the trustee carries on a business, a trading account shall be forwarded as a distinct account, and the total of receipts and payments on the trading account shall alone be set out in the yearly account.

[Form 17.] 34.

Accounts, size of paper All accounts shall be prepared on paper of such type as may be prescribed by the Registrar.

35.

Petty expenses Petty expenses shall be entered in accounts in sufficient detail to show that no estimated charges are made.

23 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] 36.

Realisations Where property has been realized, the gross proceeds of sale shall be entered as a receipt and the necessary disbursements and charges shall be entered as payments.

37.

Dividends Where dividends or instalments of a composition are distributed under the deed, the total amount of each dividend or instalment shall be entered in the trustees accounts as one sum, and the trustee shall forward to the Official Receiver (a) with each account in which a charge in respect of dividend or composition appears a statement showing the amount of the claim of each creditor and the amount of dividend or composition payable to each creditor, distinguishing in the statement the dividends or instalments paid and those remaining unpaid; and (b) with his final account a complete statement in similar form showing the amount of the claim and the full amount of dividend or composition paid to or reserved for each creditor.

[Form 18.] 38.

Partnership accounts Where the deed has been granted by a firm of debtors in partnership, distinct accounts shall be transmitted of the joint estate and of each partners estate.

39.

Imperfect accounts Where it appears to the Official Receiver that the account transmitted by a trustee under a deed of arrangement is incomplete, or requires amendment or explanation, the Official Receiver may require the account to be completed or amended, or require the trustee to furnish explanations with reference to any of the entries appearing therein; and any such requirement by the Official Receiver may be enforced in the same manner as the transmission of accounts under section 15 of the Act.

40.

Affidavit of no receipts or payments Where a trustee has not since the date of his becoming trustee, or since the last time that his accounts have been transmitted, as the case may be, received or paid any money on account of the debtors estate, he shall, at the period when he is required to transmit his accounts to the Official Receiver, forward to the Official Receiver an affidavit of no receipts or payments.

41.

Affidavit verifying final account As soon as a trustee has realized all the property comprised in a deed, or so much thereof as can be realised without unduly protracting the trusteeship, and has distributed a final dividend, or final instalment of composition, or in any other case as soon as the trusts of the deed and the obligations of the trustee have been completely fulfilled, the trustee shall forthwith transmit his final account together with an affidavit verifying it.

[Form 19.] 42.

Summary of accounts or modified forms of account in particular cases In any case in which it appears to the Official Receiver that an account of receipts and payments in the form and containing the particulars specified in these Rules may for special reasons be dispensed with, the Official Receiver may direct the trustee to transmit instead of accounts in the form therein specified, such a summary of his accounts or modified statement of accounts as to the Official Receiver appears sufficient.

[Issue 1] 24 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] 43.

Swearing affidavits respecting accounts Affidavits required by or made in pursuance of section 15 of the Act, or these Rules, shall be sworn before a commissioner for oaths, a justice of the peace or the Registrar of the court, and may, if sworn in any place outside Kenya, be sworn before any person having authority to administer an oath in that place.

PART VI FEES 44.

Fees The fees payable under these Rules shall be those specified in the Second Schedule.

FIRST SCHEDULE FORMS (r.

3) 1.

General Title.

2.

Assent of Creditor to Deed.

3.

Statutory Declaration by Trustee as to Assents of Creditors.

4.

Affidavit of Execution by Debtor.

5.

Affidavit of Execution where Deed is first Executed by a Creditor.

6.

Debtors Affidavit, with Schedule of Creditors.

7.

Form of Register to be kept by Registrar.

8.

Statutory Declaration by Trustee that Creditors had Dispensed with Security.

9.

Security by Trustee: Form of Bond.

10.

Security by Trustee: Cover Note.

11.

Certificate by Registrar of the Court that Security has been given by Trustee.

12.

Order Declaring Deed Void or Appointing new Trustee.

13.

Statement of Accounts to be sent to Creditors pursuant to section 16.

14.

Notice to Creditors by Trustee under section 26(1).

15.

Trustees Account of Receipts and payments.

16.

Affidavit Verifying Trustees Account.

17.

Trustees Trading Account.

18.

List of Dividends or Compositions.

19.

Affidavit Verifying Trustees Final Account.

25 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FORM 1 GENERAL TITLE IN the Matter of a Deed of Arrangement between ., of.

, (a) and his creditors, dated the.

day of ., 20.

(b) [., and registered under the Deeds of Arrangement Act on the.

day of ., 20.

].

Trustee: A.B.

of.

.

.

(a) Add description.

(b) Strike out words in brackets if deed has not been already registered.

FORM 2 ASSENT OF CREDITOR TO DEED [Title] I [We], being a creditor [creditors] of.

for Sh.

., hereby assent to the above-mentioned Deed of Arrangement.

Dated this.

day of ., 20.

.

Signature, address, and description of witness to creditors signature.

.

[Signed] [Issue 1] 26 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued FORM 3 STATUTORY DECLARATION BY TRUSTEE TO BE FILED WITH REGISTRAR AS TO ASSENTS OF CREDITORS [Title] I,.

, of.

, being the trustee under the above-mentioned Deed of Arrangement, do solemnly and sincerely declare that the requisite majority in number and value of the creditors of the said ., so far as to the same are known to me, have assented to the said Deed of Arrangement, and I make this solemn declaration conscientiously believing the same to be true and according to the Oaths and Statutory Declarations Act.

Declared at, etc.

FORM 4 AFFIDAVIT OF EXECUTION BY DEBTOR [Title] I,.

, of.

, make oath and say as follows: 1.

The document hereto annexed marked A is a true copy of a Deed of (a).

and of every Schedule or Inventory thereto annexed or therein referred to, and of every attestation of the execution thereof.

2.

The Deed was executed on the.

day of ., 20 ., by ., the debtor, at.

oclock in the.

noon.

I was present when the debtor executed the said Deed, and saw him execute it 3.

The said (b).

resides at ., and is a.

4.

The place [places] where the business of the said.

is carried on is [are] as follows (c).

.

Sworn at, etc.

(a) State whether deed or assignment of property; deed of or agreement for a composition; a deed of inspectorship; a letter of licence; or an agreement to carry on or wind up debtors business.

(b) Insert name, residence and occupation of debtor.

(c) State also in what other names (if any) debtor carried on business.

FORM 5 AFFIDAVIT OF EXECUTION WHERE DEED IS FIRST EXECUTED BY A CREDITOR [Title] I,.

, of.

, make oath and say as follows: 1.

The document hereto annexed marked A is a true copy of a Deed of (a).

and of every Schedule or Inventory thereto annexed or therein referred to.

27 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued 2.

The Deed was first executed by (b) ., a creditor, who resides at ., and is a ., on the.

day of ., 20 ., at.

oclock in the.

noon.

I was present when the said.

executed the said Deed, and saw him execute it.

3.

The debtor (c),.

, resides at.

, and is a.

4.

The place [places] where business of the said debtor is carried on is [are] as follows (d).

.

Sworn at, etc.

(a) State whether deed of assignment of property; deed of or agreement for a composition; a deed of inspectorship; a letter of licence; or an agreement to carry on or wind up debtors business.

(b) Insert name, residence and occupation of creditor.

(c) Insert name, residence and occupation of debtor.

(d) State also in what other names (if any) debtor carries on business.

FORM 6 DEBTORS AFFIDAVIT [Title] I,.

, of.

, make oath and say as follows: 1.

That on the.

day of ., 20 ., I executed a Deed of (a).

2.

The total estimated amount of my property included under the Deed is Sh.

., and the net amount of my property included under the Deed after deducting Sh.

., being the value (b) of securities held by creditors, and required to cover debts due to them, is Sh.

.

3.

The total estimated amount of my liabilities included under the Deed is Sh.

., and the net amount of my liabilities included under the Deed after deducting Sh.

., being the (c) amount covered by securities held by creditors, is Sh.

.

4.

(d) The total amount of the composition payable thereunder is Sh.

.

5.

The names of my creditors under the Deed with their full postal addresses (so far as the same are known to me) and the amount of debt due to or claimed by each of such creditors are contained in the Schedule to this my Affidavit.

Sworn at, etc.

(a) State whether deed of assignment of property; deed of or agreement for a composition; a deed of inspectorship; a letter of licence; or an agreement to carry on or wind up debtors business.

(b) The estimated surplus (if any) from securities held by creditors should not be deducted from the gross amount of property.

(c) This amount must correspond with the amount of securities deducted above.

No deduction should be made in respect of the unsecured balances of partially secured debts.

(d) If there is no composition payable, strike this clause out.

[Issue 1] 28 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued Amount of debt due to or Names of creditors Full postal addresses claimed by each creditor after deducting value of securities held by the creditor 29 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] continued FORM OF REGISTER FIRST SCHEDULE FORM 7 [Issue 1] 30 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued FORM 8 STATUTORY DECLARATION BY TRUSTEE TO BE FILED WITH REGISTRAR THAT CREDITORS HAVE DISPENSED WITH HIS GIVING SECURITY [Title] I,.

, of.

, being the trustee under the above-mentioned Deed of Arrangement do solemnly and sincerely declare that the requisite majority in number and value of the creditors of ., so far as the same are known to me, by resolution passed at a meeting convened by notice to all the creditors and duly held on the.

day of ., 20.

[or by writing addressed to me], dispensed with my giving the security directed to be given by section 13(1) of the Deeds of Arrangement Act.

And I make this solemn declaration conscientiously believing the same to be true and according to the Oaths and Statutory Declarations Act.

Declared at, etc.

FORM 9 SECURITY BY TRUSTEE UNDER SECTION 13(1) OF THE ACT No.

.

Amount of guarantee: Sh.

.

Annual Premium: Sh.

.

KNOW ALL MEN by these presents, that we [trustee] and the [a guarantee society or insurance company] (hereinafter called the said Society [Insurance Company]) are jointly and severally held and firmly bound to their Lordships and the Chief Justice and Judges of the High Court of Kenya in the sum of Sh.

.

, to be paid to the said Court, for which payment to be made I, the said ., and we, the said Society [Insurance Company], for ourselves and our successors, jointly and severally bind ourselves firmly by these presents.

Sealed with our seals, and dated this.

day of ., 20.

WHEREAS on the.

day of ., 20 .,.

of ., executed a Deed of Arrangement for the benefit of his [or her or their] creditors, which was duly registered on the.

day of ., 20.

; And whereas the said.

(hereinafter called the said trustee) is the trustee under the aforesaid Deed of Arrangement; and whereas the estimated assets available for distribution among the unsecured creditors, as shown by the affidavit filed on registration of the Deed, amount to the sum of Sh.

.

Now, therefore, the condition of this Bond or Obligation is such that if the said trustee shall administer the Trust Deed properly and account fully for the assets which come to his hands, and shall and do from time to time well and sufficiently perform and execute all and singular the duties required of him under the Deed of Arrangement of which he is trustee, and by any Statutes and Rules relating to such trusteeship, or if the said trustee shall fail therein and the said Society [Insurance Company] shall make good any loss or damage occasioned by any such default made on or after the date hereof to the estate of the said debtor to the extent of Sh.

., this Obligation shall be void or otherwise shall remain in full force and virtue: Provided always, and it is hereby agreed and declared, that this Bond is entered into by the said Society [Insurance Company] on the condition that the capital stock and funds for the time being of the said Society [Insurance Company] shall alone be liable to answer and make good all claims or demands in respect of this Bond, and that no director or other proprietor or holder of shares of the said Society [Insurance Company] shall in any manner be personally liable or subject to any claims or demands, by reason of such Bond, beyond his or her particular share or shares of such capital stock and funds: 31 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued Provided further, and it is further agreed between the said trustee and the said Society [Insurance Company], that the said trustee on ceasing to act as such trustee as aforesaid shall forthwith give notice thereof in writing to the said Society [Insurance Company]: Provided further, that the said trustee, and his heirs, executors and administrators, shall and will from time to time and at all times save, defend, and keep harmless the said Society [Insurance Company] and their successors and the capital stock, funds or property of the said Society [Insurance Company] from and against all loss or damage, costs and expenses which the said Society [Insurance Company] or the capital, stock, funds or property thereof shall or may or otherwise might at any time sustain or be put unto for or by reason or in consequence of the said Society [Insurance Company] having entered into the above written Bond for him and at his request.

And the said trustee hereby covenants that he will, on the.

day of.

of each successive year during the continuance of his administration of the estate, under the Deed, pay or cause to be paid to the said Society [Insurance Company] the annual premium of Sh.

.

In witness whereof the said trustee hath hereunto set his hand and seal and the said Society [Insurance Company] have hereunto caused their seal to be affixed the day and year first above written.

Signed, sealed and delivered by the said.

in the presence of.

L.S.

The seal of the said Society [Insurance Company] was hereunto affixed in the presence of.

.

L.S.

FORM 10 COVER NOTE Bond No.

., 20.

Mr.

.

, of.

, having this day effected a Guarantee for Sh.

.

in favour of Their Lordships the Chief Justice and Judges of the High Court of Kenya, as trustee under a Deed of Arrangement executed by.

.

on the terms and conditions contained in the Societys [Insurance Companys] Bonds (according to the form prescribed under the Deeds of Arrangement Rules), a Bond will be prepared and delivered to the Registrar of the Court within fourteen days of this date.

Dated this.

day of ., 20.

.

Manager of the said Society or Insurance Company.

[Issue 1] 32 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued FORM 11 CERTIFICATE OF SECURITY [Title] I certify that Mr.

.

, of.

the trustee under the above-mentioned Deed of Arrangement, has given security to my satisfaction in the sum of Sh.

.

by Bond (a) of the.

Society [Insurance Company] for the due performance of his duties under the Deed pursuant to section 13(1) of the Deeds of Arrangement Act.

Dated this.

day of ., 20.

.

Registrar of the Court (a) Or cover note.

FORM 12 ORDER DECLARING DEED VOID OR APPOINTING NEW TRUSTEE [Title] WHEREAS.

is the trustee under the above-mentioned Deed of Arrangement; And Whereas it has been proved to the satisfaction of the Court that the said.

has failed to comply with the requirements of section 13(1) of the Deeds of Arrangement Act: Now, on the application of.

., a creditor, and upon hearing ., and upon reading ., this Court doth declare the said Deed of Arrangement to be void [or doth order that.

, of ., be appointed trustee under the said Deed in place of the said.

], but this Order shall not take effect unless the said.

shall give security as provided by section 13(1) of the Deeds of Arrangement Act within.

days after this date [or as the Court may order with reference to security], By the Court,.

Registrar FORM 13 STATEMENT PURSUANT TO SECTION 16 [Title] Statement of Trustees Accounts and of proceedings under the Deed from the.

.

day of ., 20 .to the.

day of ., 20.

33 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued RECEIPTS Sh.

PAYMENTS Sh.

Cash deposited by debtor with Law costs of preparation and advocate for costs of deed.

registration of deed.

Cash at bank at date of deed.

Law costs of advocate to trustee.

Cash in hand at date of deed.

Other law costs (c).

Book debts.

Stock-in-trade realized from sale by Accountants charges (a).

Auctioneers and valuers Machinery realised from sale by (a).

charges.

Trade fixtures, fittings, etc., realised Trustees remuneration.

from sale by (a).

Possession.

Incidental expenses Furniture realized from sale by (a).

Other costs and charges (c).

Surplus from securities in hand of creditors.

Total costs and charges Trading receipts.

Other property, viz.: realised from Allowance to debtor sale by (a).

Payments to creditors, viz.: Sh.

Sh Gross receipts.

.

Rent from 20 ., to 20.

Less: Trading payments Rates and taxes.

Payments to redeem Salaries and wages.

securities, viz.

(b) Other preferential payments, viz.

(c).

Sh.

Dividend of.

in the on Paid Unpaid Other payments (if any) (c) Total.

Balance in hand (if any).

Net realizations Balance due to Trustee (if any).

(a) Insert gross proceeds of sale, and state how goods were sold, e.g.

by auction, by valuation, or as the case may be.

(b) Here insert to whom payments made, nature of security redeemed and amount of each payment; or annex schedule giving these particulars.

(c) Insert particulars or annex schedule.

[Issue 1] 34 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued The total payments into the (d).

Bank to the.

day of, ., 20 .,were.

, and the total payments out of the said Bank to the.

day of ., 20 ., were.

The amounts of the assets and liabilities at the time the Deed was executed as estimated by the debtor were.

Assets, after deducting Sh.

.

the value of securities held by creditors and required to cover debts due to them,.

Liabilities, after deducting Sh.

.

the amount covered by securities,.

The nature and value of the assets unrealised are (c).

The causes which delay the termination of the winding up of the estate are (c).

The estate will probably be completely wound up within.

The following special circumstances affect the costs of realisation and the administration of the estate, viz.

(c).

.

.

Trustee [Address].

[Date].

FORM 14 NOTICE TO CREDITORS OF DEED OF ARRANGEMENT [Title] TAKE NOTICE that a Deed of Arrangement by, for or in respect of the affairs of.

.

of ., has been duly executed and registered, and a certificate of the assents of creditors thereto duly filed, and that after the expiration of two months from.

[insert date of posting] you will not be entitled to present a bankruptcy petition against.

.

founded on the execution of the Deed, or on any other act committed by him [them] in the course of or for the purpose of proceedings preliminary to the execution of the Deed, as an act of bankruptcy, unless the Deed becomes void.

Dated this.

day of ., 20.

.

Trustee under the said Deed of Arrangement To A.B.

(a creditor of the said debtor[s]).

35 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued FORM 15 TRUSTEES ACCOUNT OF RECEIPTS AND PAYMENTS No.

.

[Title] Trustee.

Account of Receipts and Payments pursuant to section 15 of the Deeds of Arrangement Act RECEIPTS PAYMENTS Of whom Nature of To whom Nature of Date received receipt Amount Date paid payment Amount Note.The outstanding estate consists of [here set out particulars of any outstanding estate and the estimated value thereof].

FORM 16 AFFIDAVIT VERIFYING TRUSTEES ACCOUNT [Title] I,.

of ., the trustee of the estate comprised in the above-mentioned Deed make oath and say 1.

That *[the account hereunto annexed marked B contains a full and true account of my receipts and payments on account of the estate comprised in the said Deed] from the.

day of ., 20.

, to the.

day of ., 20.

inclusive, *[and that] I have not, nor has any other person by my order or for my use during such period, received or paid any moneys on account of the said estate *[other than and except the items mentioned and specified in the said account].

2.

That on the.

day of ., 20 ., and the.

day of.

, 20 ., I duly sent to each creditor of the said.

who has assented to the Deed a statement of accounts and proceedings as required by section 16 of the Deeds of Arrangement Act.

Sworn at, etc.

* If no receipts or payments, strike out the words in brackets.

[Issue 1] 36 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued FORM 17 TRUSTEES TRADING ACCOUNT [Title] Account of Receipts and Payments in connection with the debtors business, pursuant to rule 33.

Receipts Payments Date Date.

Trustee [Date].

We have examined this account with the vouchers and find the same correct, and we are of opinion the expenditure has been proper.

Dated this.

day of ., 20.

.

[Member of the] Committee of Inspection To be inserted if the accounts have been audited by a committee of inspection.

FORM 18 LIST OF DIVIDENDS OR COMPOSITIONS [Title] I HEREBY CERTIFY that a dividend [composition] of.

in the has been paid in the above matter, and that the creditors whose names are set forth below are entitled to the amounts set opposite their respective names in the columns headed Amount of dividend [composition]; and I further certify that the column headed Unpaid contains a full and complete list of all unpaid dividends [compositions].

Dated the.

day of ., 20.

.

Trustee 37 [Issue 1] CAP.

54 [Rev.

2012] Deeds of Arrangement [Subsidiary] FIRST SCHEDULEcontinued To the Official Receiver.

Christian Amount Amount of dividend Surname name of [composition] claim Paid Unpaid Form 19 AFFIDAVIT VERIFYING TRUSTEES FINAL ACCOUNT [Title] I,.

, of ., the Trustee for the purposes of the above-mentioned Deed [or the person distributing the composition herein] make oath and say: 1.

That *[the account hereunto annexed marked B contains a full and true account of my receipts and payments on account of the estate comprised in the said Deed] from the.

day of ., 20 ., to the date.

of swearing this my affidavit, inclusive, *[and that] I have not, nor has any person by my order or for my use during such period, *[other than and except the items received or paid any moneys on account of the said estate mentioned and specified in the said account].

2.

That all the property assigned under the Deed, or so much thereof as can probably be realized, has been realized and distributed according to the terms of the Deed, and that a dividend [or dividends] of in the has been paid as shown in the list hereunto annexed marked C.

OR 2.

That the composition proposed under the Deed has been fully received and distributed as far as possible, as shown in the list hereunto annexed marked C.

3.

That on the.

day of ., 20 ., and the.

day of ., 20 ., I duly sent to each creditor of the said.

who has assented to the Deed a statement of accounts and proceedings as required by section 16 of the Deeds of Arrangement Act.

Sworn at, etc.

* If no receipts or payments, strike out the words in brackets.

Strike out paragraph not applicable, strike out both and add a special paragraph setting out the facts.

[Issue 1] 38 [Rev.

2012] CAP.

54 Deeds of Arrangement [Subsidiary] SECOND SCHEDULE [Rule 44, L.N.

336/1957.] FEES Item Fee 1.

On filing a deed Sh.

Cts (i) where the total estimated amount of property included therein, or the total amount of composition payable thereunder, appears from the affidavit of the debtor (a) not to exceed 1,000.

20 00 (b) to exceed 1,000 but not to exceed 2,000.

40 00 (c) to exceed 2,000 but not to exceed 3,000.

60 00 (d) to exceed 3,000 but not to exceed 4,000.

80 00 (e) to exceed 4,000.

100 00 (ii) in every case to which the above fees do not apply.

40 00 2.

On certificate, endorsed on an original deed of the registration thereof.

5 00 3.

On filing a statutory declaration or notice with the Registrar of Deeds of Arrangement pursuant to the Act or these Rules.

4 00 4.

On searching the register and on inspecting the filed copy, including the limited extract to be taken pursuant to the Act and these Rules (for every name inspected).

400 5.

On an account transmitted by a trustee in pursuance of section 15 of the Act: a fee upon the gross amount of the assets realised and brought to credit or in the case of a composition a fee upon the gross amount of the composition distributed during the period comprised in the account according to the following scale (a) on every 100 or fraction of 100 up to 500.

8 00 (b) on every 100 or fraction of 100 above 500.

4 00 6.

On an application under section 15(3) of the Act, to inspect accounts of a trustee under a deed of arrangement.

2 00 7.

On an application to the Official Receiver under section 17(1) of the Act, for an official audit of a trustees account.

30 00 8.

On the audit of a trustees accounts by the Official Receiver under section 17(1) of the Act: a fee, not being less than Sh.

150, according to the following scale on the amount brought to credit after deducting (1) the amount received and spent in carrying on the business, and (2) the amount paid to secured creditors out of the proceeds of their securities, viz.: (a) on every 100 or fraction of 100 up to 5,000.

30 00 (b) on every 100 or fraction of 100 beyond 5,000.

15 00 Provided that there shall be deducted from this fee the amount of any fee taken on account transmitted under section 15 of the Act.

9.

On copies furnished by the Official Receiver per folio.

0 50 COURT FEES On applying to give security under a deed of arrangement, pursuant to section 13(1) of the Act For taking security and giving certificate, where the estimated assets available for distribution amongst the unsecured creditors, as shown by the affidavit filed on registration, are (a) less than 100.

Sh.

15 (b) in all other cases.

Sh.

30 In any matter not specifically provided for in these fees, such fees as are eligible under the rules of court relating to civil matters 39 [Issue 1].