A 520
I assent.
(L.S.) GEORGE VELLA
President
23rd December, 2022
ACT No. XXIII of 2022
AN ACT to amend the Commercial Code, Cap. 13.
BE IT ENACTED by the President, by and with the advice and
consent of the House of Representatives, in this present Parliament
assembled, and by the authority of the same as follows:-
Short title.
Cap. 13.
Commencement.
Scope.1.(1) The short title of this Act is the Commercial Code
(Amendment) Act, 2022, and this Act shall be read and construed as
one with the Commercial Code, hereinafter referred to as "the Code".
(2) This Act shall come into force on such date or dates as the
Minister responsible for commerce may, by notice in the Gazette,
establish, and different dates may be so established for different
provisions and, or different purposes of this Act.
(3) The scope of this Act is to amend the Code to strengthen the
existing legal framework on bankruptcy and discharge of debt and to
partially transpose certain provisions of Directive (EU) 2019/1023 of
the European Parliament and of the Council of 20 June 2019 on
preventive restructuring frameworks, on discharge of debt and
disqualifications, and on measures to increase the efficiency of
procedures concerning restructuring, insolvency and discharge of debt,
and amending Directive (EU) 2017/1132 (Directive on restructuring
and insolvency).
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Amendment of 
the 
Arrangement of 
the Code.2.Part III - "Of Bankruptcy" of the Arrangement of the Code
shall be amended by the following:
(a) the words "Of the Rights and Duties of the Curator
of a Bankrupt" shall be substituted by the words "Of the Rights
and Duties of the Bankruptcy Trustee";
(b) the words "Of the Proof of Debts against the
Bankrupt’s Estate" shall be substituted by the words "Of the
Proof of Debts against the Bankruptcy Estate";
(c) the words "Of the Composition or Scheme of
Arrangement" shall be substituted by the words "Of Bankruptcy
with Debt Agreement";
(d) the words "Of the Ranking of Creditors" shall be
substituted by the words "Of Bankruptcy without Debt
Agreement"; and
(e) the words "Of the Rehabilitation and Discharge"
shall be substituted by the words "Of Bankruptcy in General".
Substitution of 
article 2 of the 
Code.3.Article 2 of the Code shall be substituted by the following
new article:
"2. The commercial law relates to traders and
to acts of trade done by any person, even though
not a trader and, for the purposes of Part III alone:
(a) extends to the persons referred to
in article 477; 
(b) shall not extend:
(i) to public corporations or
agencies established by law; 
(ii) where any applicable law
creates a separate patrimony in the
hands of a person or where a person is
vested with ownership, has registered in
his name, holds, exercises control or
powers of disposition over property
subject to fiduciary obligations;
(iii) to any accrued occupational
pension entitlements;
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(c) shall not extend insofar as these
may be inconsistent with, or insofar as these
may be construed as limiting or restricting,
the application of the following laws or
instruments, or any transposing legislation,
as may be amended from time to time:
(i) the Convention on
International Interests in Mobile
Equipment and its Protocol on Matters
Specific to Aircraft Equipment that was
opened for signature at Cape Town on
16 November 2001, as transposed or as
enforceable in terms of Maltese law; 
(ii) Directive 98/26/EC of the
European Parliament and of the Council
of 19 May 1998 on settlement finality
in payment and securities settlement
systems, as transposed in terms of
Maltese law; 
(iii) Directive 2002/47/EC of the
European Parliament and of the Council
of 6 June 2002 on financial collateral
arrangements, as transposed in terms of
Maltese law; 
(iv) Regulation (EU) No. 648/
2012 of the European Parliament and of
the Council of 4 July 2012 on OTC
derivatives, central counterparties and
trade repositories; 
(v) the safeguarding
requirements of funds for:
(aa) payment institutions
laid down under Directive (EU)
2015/2366 of the European
Parliament and of the Council of
25 November 2015 on payment
services in the internal market,
amending Directives 2002/65/EC,
2009/110/EC and 2013/36/EU
and Regulation (EU) No. 1093/
2010, and repealing Directive
2007/64/EC, as transposed in
terms of Maltese law; and
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Amendment of 
article 4 of the 
Code.4.In article 4 of the Code, the words "commercial
partnership." shall be substituted by the words "commercial
partnership:" and immediately thereafter there shall be added the
following new proviso:
"Provided that, for the purposes of Part III, the term
"trader" shall have the meaning assigned to it in article 477.". 
Substitution of 
Title I of Part III 
of the Code.5.Title I of Part III of the Code shall be substituted by the
following new Title:(bb) electronic money
institutions laid down under
Directive 2009/110/EC of the
European Parliament and of the
Council of 16 September 2009 on
the taking up, pursuit and
prudential supervision of the
business of electronic money
institutions amending Directives
2005/60/EC and 2006/48/EC and
repealing Directive 2000/46/EC,
as transposed in terms of Maltese
law;
S.L. 459.01.(vi) the Financial Collateral
Arrangements Regulations and any
financial collateral arrangement in
terms thereof;
Cap. 459. (vii) the Set-Off and Netting on
Insolvency Act.".
"Title I 
OF THE DECLARATION OF BANKRUPTCY
State of 
bankruptcy.477.  (1) Every trader who, having regard
also to his contingent and prospective liabilities, is
unable to pay his commercial debts, shall suspend
the payment of all his debts, and shall, upon the
suspension thereof, be in a state of bankruptcy.
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A 524
Cap. 12.(2) Without prejudice to the provisions of
sub-article (1), if a commercial debt due by the
trader has remained unsatisfied in whole or in part
after twenty-four (24) weeks from the
enforcement of an executive title against the trader
by any of the executive acts specified in article
273 of the Code of Organization and Civil
Procedure, the trader shall suspend the payment of
all his debts and be deemed to be in a state of
bankruptcy.
(3) For the purposes of this Part, the term
"trader" shall, in addition to the persons referred to
in article 4, also include any other natural or legal
person, in respect of commercial debts for which
such person is, or becomes, liable, whether as
principal debtor or otherwise.
(4) In this Part, unless the context
otherwise requires, the following expressions have
the meaning hereby assigned to them:
(a) "commercial debt" means any
liability incurred by any person, whether as
principal debtor or otherwise, insofar as that
liability was incurred, or otherwise arises as
a result of any liability which was originally
incurred in the course of, in connection with,
or for the purposes of, the exercise of any
trade, business, craft or profession by the
original debtor, and any other liabilities as
the Minister responsible for the Malta
Business Registry may, by regulations
prescribe;
(b) "personal debt" means any
liability incurred by any person, whether as
principal debtor or otherwise, which is not a
commercial debt; 
(c) "debt", when used alone, means
any liability incurred by any person, whether
as principal debtor or otherwise, and whether
a commercial debt or a personal debt; and
Act No. XXV 
of 2022.(d) "competent authority" means the
same as the definition assigned to it in the
Insolvency Practitioners Act, 2022.
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(5) A debt falling under sub-article (4)(a),
which is not exclusively incurred in the pursuit of
the activities described in sub-article (4)(a), shall,
for the purposes of this Part, be treated as a
commercial debt to the extent of that part of the
debt which has been incurred, or which has arisen
as a result of the activities provided for in sub-
article (4)(a), and the term "commercial debt"
shall, for the purposes of this Part, be read and
construed accordingly.
(6) Any transfer of assets, payment of
debts, or act of trade made by a trader who is in a
state of bankruptcy, and which are made between
the date of the suspension of payments and the
date of the judgment declaring bankruptcy, shall,
unless a determination is made by the court in
accordance with article 482(3) that the debtor is
not in a state of bankruptcy, be null and void.
Declaration in 
court.478.  Upon the suspension of payments,
every trader shall, without undue delay, file a
declaration of bankruptcy in the Civil Court
(Commercial Section).
Contents of the 
declaration of 
bankruptcy.479.  (1) The declaration of bankruptcy
filed by the trader must be confirmed on oath and
include the following:
(a) the trader’s name and his
identification or registration number;
(b) the nature of the trade, business,
craft or profession, in respect of which the
debts have been incurred;
(c) the name, identification or
registration number, and other particulars of
each of the trader’s creditors together with
their registered address or, in the absence of
a registered address, the address of their
place of business or place of residence;
(d) the value and nature of the
trader’s debts, both commercial and
personal, and the security, if any, enjoyed by
the respective creditors; and
(e) such other information as the
Minister may, by notice, prescribe.
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(2) In case of the bankruptcy of a legal
person, the declaration must also include the name
and the place of residence of each of the natural
persons jointly and severally liable for the debts of
the legal person.
Production of 
books.480.  On making the declaration mentioned
in the foregoing articles, the trader shall, at the
same time, file in the Civil Court (Commercial
Section), all his commercial books, records and
other papers:
Provided that, where the trader is not a
person bound to keep trade books in terms of
article 13, it shall be sufficient for such person to
file in the Civil Court (Commercial Section), all
information and documentation as may be
necessary to ascertain the circumstances in which
the respective debts were incurred, together with a
statement of the financial position of the person at
the time listing all assets and liabilities of such
person.
Declaration of 
bankruptcy on 
demand of 
creditor.481.  (1) Any creditor may, whether the
debt owing to him is a commercial debt or
otherwise, and even though such debt has not yet
fallen due, proceed summarily before the Civil
Court (Commercial Section), against a trader who
is his debtor, or his lawful representative,
demanding a declaration that such trader is in a
state of bankruptcy.
Declaration 
may not be 
sought by 
child against 
parent or vice 
versa, etc.(2) A declaration of bankruptcy may not be
sought by a child against their parent, or by a
parent against their child, or by one spouse against
the other.
When 
declaration 
may be sought 
after death of 
trader.(3) The bankruptcy of a trader, being a
natural person, may be declared after his death, if
prior to his death he had suspended payments; in
such case the declaration of bankruptcy cannot be
demanded by the creditors except within three (3)
months from the death of the debtor.
VERŻJONI ELETTRONIKA
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Creditor 
demanding 
adjudication of 
bankruptcy to 
give security.(4) In the case of a demand for a
declaration of bankruptcy as provided in this
article, the creditor making the demand shall,
simultaneously with the demand, give security in
an amount that shall be equivalent to the greater of
ten percent (10%) of the debt owing to such
creditor, or one thousand euro (€1,000) in favour
of the party against whom the demand is made, for
the due prosecution of the case without delay and
the substantiation of his claim; in default whereof,
the court may order the amount of the security to
be paid, in whole or in part, to the party in whose
favour such security has been given:
Provided that such payment shall not
operate as a bar to an action against the creditor
for damages and interest arising from such
proceedings.
Summoning of 
creditors.482.  (1) Where a declaration of
bankruptcy has been filed in terms of article 479,
the registrar shall, by notice, call upon the
creditors mentioned in the declaration to appear
before the Civil Court (Commercial Section), on
such date, and at such a time, as shall be specified
in the relevant notice, being a date not later than
thirty (30) days from the date on which the
declaration is made, to show cause why their
debtor should not be declared to be in a state of
bankruptcy, and to make representations
concerning the appointment by the court of a
bankruptcy trustee. The registrar shall cause the
notice to be served on the creditors mentioned in
the declaration, and for the notice together with
the declaration to be published by means of a
notice containing an abstract in the Gazette and in
one (1) or more daily newspapers.
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(2)  Where a declaration of bankruptcy is
demanded in terms of article 481, the registrar
shall, by notice, call upon the debtor mentioned in
the declaration to appear before the Civil Court
(Commercial Section), on such date, and at such a
time, as shall be specified in the relevant notice,
being a date not be later than thirty (30) days from
the date on which the declaration is demanded, to
show cause why he should not be declared to be in
a state of bankruptcy. The registrar shall cause the
notice to be served on the creditor making the
demand, and for the notice together with the
declaration to be published by means of a notice
containing an abstract in the Gazette and in one (1)
or more daily newspapers, calling upon interested
persons to show cause why the debtor should not
be declared to be in a state of bankruptcy, and to
make representations concerning the appointment
by the court of a bankruptcy trustee.
(3) Where the court, during the
proceedings referred to above, is satisfied that
cause has been shown why the debtor should not
be declared to be in a state of bankruptcy, the court
shall, by judgment, declare that the debtor is not in
a state of bankruptcy and shall award costs against
the party cast. The court shall also order that an
abstract of the judgment be published, by means
of a notice in the Gazette.
(4) Where the court, during the
proceedings referred to above, is satisfied that
cause has been shown why the debtor should be
declared to be in a state of bankruptcy, the court
shall deliver a judgment declaring the bankruptcy.
(5) In the event that the court is of the view
that the declaration of bankruptcy made by the
debtor in terms of article 479, or the declaration of
bankruptcy demanded by the creditor in terms of
article 481, is frivolous or vexatious, the court
may award double costs against the party cast.
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Suing out of 
acts and 
proceedings .483.  (1) If the creditor on whose demand
the bankruptcy has been declared neglects to sue
out, at his own expense, such acts and proceedings
as are necessary to arrive at the making of a
bankruptcy order, any other creditor, or even the
bankrupt himself, may proceed to sue out such
acts or proceedings.
Reimburse-
ment of 
expenses 
incurred by the 
creditor.(2) Subject to the provisions of article 499,
all necessary expenses incurred during bankruptcy
proceedings shall be repaid to the creditor
disbursing them, out of moneys received on
account of the bankruptcy estate in preference to
any other debt.
Stay of claims. 484.  (1) The execution of claims of a
monetary nature against the bankrupt or the
bankruptcy estate shall be stayed in respect of all
debts referred to in article 487 upon the delivery
of the judgment declaring bankruptcy.
(2) The stay of the execution of claims as
provided for in sub-article (1) shall cease with
regard to the bankrupt, upon the rehabilitation of
the bankrupt in terms of articles 524(1)(b) or
534(1)(b), as the case may be.
Acts in fraud 
of creditors are 
void or 
voidable.485.  Every act transferring property,
whether corporeal or incorporeal, including any
renunciation of any succession or of an acquired
prescription, and every obligation incurred, or
other act made by the bankrupt which defrauds his
creditors, shall be null and void, even though the
parties interested have acted, and, or are in good
faith.
The bankrupt 
is relieved of 
ownership of 
property.486.  (1) Upon the appointment of a
bankruptcy trustee in accordance with article 488,
the bankrupt shall be ipso jure  relieved of his
existing title to all assets other than those assets
referred to in article 492, whether corporeal or
incorporeal, and whether relating to his business
or not. The ownership of such assets shall, by
operation of law, devolve upon and vest in the
bankruptcy trustee who shall receive and hold
such assets for the benefit of the body of creditors.
All debts, including the debts referred to in article
487, shall, by operation of law, become due and
payable by the bankruptcy estate as vested in the
bankruptcy trustee:
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Substitution of 
Title II of Part 
III of the Code.6.Title II of Part III of the Code shall be substituted by the
following new Title:Provided that, notwithstanding
anything stated in any other law, no charge, levy
or other dues shall become payable in Malta by
way of tax, duty or other government tariff or levy,
notwithstanding the manner in which it is
described, upon, or as a result of the transfers
contemplated in terms of this article.
(2) Everything that devolves on the
bankrupt after the bankruptcy but prior to the
occurrence of the events referred to in articles
524(1) or 534(1), as the case may be, shall, by
operation of law, when and as the same so
devolves, vest in the bankruptcy trustee who shall
receive and hold the thing for the benefit of the
body of creditors:
Provided that, notwithstanding
anything stated in any other law, no charge, levy
or other dues shall become payable in Malta by
way of tax, duty or other government tariff or levy,
notwithstanding the manner in which it is
described, upon, or as a result of the transfer
contemplated in terms of this article.
(3) Any assets that shall devolve upon the
bankruptcy trustee by operation of sub-articles (1)
and (2) shall be received by the bankruptcy trustee
subject to any third-party rights, whether real or
personal, in existence at the time, which rights
shall be preserved and shall not be prejudiced
thereby.
Debts owing 
by bankrupt 
not yet due, 
become 
payable on 
declaration of 
bankruptcy.487.  Debts owing by the bankrupt which
have not fallen due, even if privileged, secured by
pledge or hypothecary, shall become payable upon
the judgment of the court declaring the
bankruptcy.".
"Title II 
OF THE RIGHTS AND DUTIES OF THE BANKRUPTCY 
TRUSTEE
Appointment 
of bankruptcy 
trustee.488.  (1) The court shall, in the judgment
declaring bankruptcy, appoint one (1) or more
persons as the bankruptcy trustee to exercise the
functions assigned to the bankruptcy trustee under
this Part:
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Provided that, where more than one (1)
person is appointed as the bankruptcy trustee, the
persons so appointed shall be appointed to act
jointly as the bankruptcy trustee and they shall be
jointly responsible for the exercise of the
functions assigned to the bankruptcy trustee under
this Part.
(2) The bankruptcy trustee shall be deemed
to be an officer of the court, and as such shall be
subject to the orders of the same.
(3) In the event of the death, interdiction,
incapacitation or resignation of the bankruptcy
trustee or any one (1) or more of the persons so
appointed, the court shall, at the instance of any
interested person or on its own motion, release the
said person or persons of their appointment. The
court shall appoint one (1) or more other persons
as the substitute bankruptcy trustee, and
immediately upon the appointment being made,
the provisions of articles 486, 489 and 490 shall
apply mutatis mutandis  to the substitute
bankruptcy trustee.
(4) Any interested party may, within
twenty (20) days from the publication of the notice
referred to in article 490, apply to the court for the
substitution of the bankruptcy trustee on the basis
that the latter is not fit and proper, whether due to
the subsistence of a conflict of interest or for any
other valid reason.
Authorisation 
of bankruptcy 
trustee.
Act No. XXV 
of 2022.489.  The bankruptcy trustee appointed by
the court shall be a person duly authorised to act
as such, in terms of article 4 of the Insolvency
Practitioners Act, 2022, and whom the court
deems fit to faithfully discharge the duties of his
office.
Publication of 
abstract of 
judgment in 
Gazette.490.  (1) The bankruptcy trustee shall,
within fourteen (14) days from the judgment
declaring bankruptcy, notify the competent
authority and the registrar of the said judgment,
and cause a notice containing an abstract of the
judgment to be published in the Gazette and in one
(1) or more newspapers, which notice shall clearly
indicate the name, surname and business address
of the person or persons appointed as the
bankruptcy trustee.
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A 532
 (2) An abstract of the judgment declaring
the bankruptcy shall also be enrolled in the Public
Registry within fourteen (14) days from the
judgment.
Removal of 
bankruptcy 
trustees.491.  (1) The court may, at any stage of
the proceedings, of its own motion or upon the
demand of one (1) or more creditors or of the
bankrupt, remove the bankruptcy trustee.
(2) No appeal shall lie against the
pronouncement of the court made in terms of sub-
article (1).
(3) Upon the removal of the bankruptcy
trustee by the court, the court shall appoint a
substitute bankruptcy trustee and the provisions of
article 488 shall apply mutatis mutandis .
Property 
which may be 
retained by the 
bankrupt.492.  Where the bankrupt is a natural person,
the bankrupt shall be entitled to retain the use,
possession and ownership of any property that, as
the bankrupt may reasonably demonstrate to the
satisfaction of the bankruptcy trustee, comprises:
(a) the bankrupt’s main residence;
(b) any vehicle, tools, or equipment
of the bankrupt, insofar as the bankrupt may
reasonably demonstrate these to be
necessary for the performance, by him, of an
activity permissible in terms of article
498(3);
(c) any apparel and other movable
effects necessary for the personal use of the
bankrupt or that of any person related to him
by consanguinity or affinity to the third
degree inclusively;
(d) any medical supplies or
equipment of the bankrupt, insofar as the
bankrupt may reasonably demonstrate these
to be necessary for his own physical or
mental well-being or that of any person
related to him by consanguinity or affinity to
the third degree inclusively; and
(e) any right of nomination that the
bankrupt may have to any vacant
ecclesiastical benefice.
VERŻJONI ELETTRONIKA
A 533
Seizure of 
property.493.  (1) In order to secure possession of
the property of the bankrupt, including his books,
records and other papers, the bankruptcy trustee,
shall apply to the Civil Court (Commercial
Section), for the issue of a warrant of seizure
against any person who may have possession of
the property, including the bankrupt.
(2) In the case of bankruptcy of a legal
person, the warrant of seizure shall be executed
not only at the principal offices or premises of the
bankrupt, but also at the residence or premises of
each of the persons jointly and severally liable for
the debts of the legal person.
Books open to 
inspection by 
the interested 
parties.494.  The books, records and other papers of
the bankrupt shall be kept at such place as the
court may direct, and shall be open to inspection
by all interested parties on a written request made
to the bankruptcy trustee, provided that the
bankruptcy trustee is satisfied that the person
making the request is an interested party.
Bankruptcy 
estate.495.  (1) The bankruptcy estate shall
include all sums due to the bankrupt, including
any amounts derived by the bankrupt from the
conduct of any activities in terms of articles 496,
497 and 498:
Provided that the provisions of this
article shall cease to have effect until they are
superseded by a debt agreement or bankruptcy
order made in terms of this Part, and shall, in no
event, apply for a period longer than three (3)
years from the date of the judgment declaring
bankruptcy.
(2) Where the bankrupt carries out
activities in terms of article 498(3), the bankrupt
shall be entitled to receive from the bankruptcy
trustee, out of any sum due to the bankrupt by way
of remuneration for the said activities, an amount
to be determined by the bankruptcy trustee, which
amount shall not be less than the national
minimum wage established for persons of
eighteen (18) years and over, calculated pro rata
throughout the duration of the appointment of the
bankruptcy trustee.
VERŻJONI ELETTRONIKA
A 534
(3) Where the bankrupt is unable, for reasons
which the bankruptcy trustee finds to be
legitimate, to carry out activities in terms of article
498(3), the bankrupt shall be entitled to receive,
from the bankruptcy estate, an allowance which
shall not be less than the national minimum wage
established for persons of eighteen (18) years and
over, calculated pro rata throughout the duration
of time during which the bankruptcy trustee is
appointed.
(4) The amount referred to in sub-articles
(2) and (3) shall exceed the national minimum
wage where the bankrupt reasonably demonstrates
to the satisfaction of the bankruptcy trustee, that
the bankrupt has an overriding need for the
additional amount on account of grave and
justifiable circumstances specific to the bankrupt
or his dependants.
Sale of 
perishables.496.  (1) The bankruptcy trustee shall,
without delay sell, whether by means of a licensed
auctioneer or otherwise, such assets as the
bankruptcy trustee shall deem to be perishable.
(2) Any perishables in respect of which a
right of recovery in terms of Title III has not been
exercised prior to their sale, shall be sold in terms
of sub-article (1), and any respective right of
recovery shall be extinguished and the moneys
realised shall form part of the bankruptcy estate in
terms of article 495.
Sale of non-
perishable 
assets.497.  (1) Non-perishable assets cannot be
sold by the bankruptcy trustee prior to the
confirmation of the proposed terms of a debt
agreement in terms of Title V or the sale of assets
held on trust in terms of Title VI, as the case may
be, except in pursuance of a summary judgment of
the court, upon a sworn application issued against
the parties interested.
(2) In deciding upon the sworn application,
the court shall, among other things, consider:
(a) whether the value of the asset
will be substantially preserved by its
immediate sale;
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A 535
(b) whether the bankruptcy trustee
requires additional liquidity to continue the
trade, business, craft or profession of the
bankrupt in accordance with article 498; and
(c) whether the bankrupt is urgently
in need of moneys to satisfy his ordinary and
reasonable daily expenses.
(3) No appeal shall lie against the
pronouncement of the court made in terms of sub-
article (1).
Bankruptcy 
trustee may 
continue 
business.498.  (1) It shall be lawful for the
bankruptcy trustee, with the authority of the court,
by a decree, to, where possible, cause the
continuation of the trade, business, craft or
profession of the bankrupt, where the bankruptcy
trustee is of the opinion that the said continuation
will afford a means of increasing his assets for the
benefit of the body of creditors:
Provided that, as may be necessary for
the continuation of the trade, business, craft or
profession of the bankrupt, the bankruptcy trustee
may request the authority of the court to make use
of any property held on trust in the exercise of the
said trade, business, craft or profession.
(2) The court shall, when granting such
authority, give such directions by a decree as the
court deems most advantageous to the interests of
the body of creditors:
Provided that where any creditor files
an opposition to a decree by the court in terms of
this article, the court may, on just cause being
shown, after hearing the bankruptcy trustee,
withdraw the authority.
(3) Without prejudice to the provisions of
sub-article (1), the bankrupt shall not carry out any
act of trade until rehabilitated in terms of this Part.
Any bankrupt who is  a natural person may, prior to
the rehabilitation in terms of articles 524(1)(b) or
534(1)(b), as the case may be, pursue the lawful
conduct of any activity:
Provided that the conduct of that
activity shall not require, give rise to, or
necessitate, the performance of any acts of trade
by the bankrupt:
VERŻJONI ELETTRONIKA
A 536
Cap. 16.Provided further that the exercise of
any act of extraordinary administration in terms of
article 1322 of the Civil Code by the bankrupt
after the declaration of bankruptcy but prior to the
rehabilitation in terms of articles 524(1)(b) or
534(1)(b), as the case may be, shall, at all times,
require the express prior written consent of the
bankruptcy trustee.
Sum of money 
which 
bankruptcy 
trustee may 
hold on trust.499.  (1) The bankruptcy trustee may
appropriate such sum or sums as the court shall
determine, to remunerate the bankruptcy trustee
and to meet any expenses as the bankruptcy
trustee may reasonably incur in the performance
of his duties in terms of this Part, as a first charge
out of the bankruptcy estate in preference to any
other expense. All other moneys shall continue to
be held by the bankruptcy trustee on trust, distinct
and separate from the personal property of the
bankruptcy trustee and from other property held
by the bankruptcy trustee under any other trust.
Act No. XXV 
of 2022.(2) The Minister may, in consultation with
the competent authority mentioned in the
Insolvency Practitioners Act, 2022, make
regulations for the payment of the expenses and
remuneration of the bankruptcy trustee.
(3) The Court shall have the power to order
that of the expenses and remuneration of the
bankruptcy trustee are paid in terms of regulations
made in terms of sub -article (2).
Action against 
bankruptcy 
trustee.500.  (1) An action against the bankruptcy
trustee may be brought by an interested party only
on the grounds that the bankruptcy trustee has
failed to carry out his functions, whether arising in
terms of this Part or by order of the court.
(2) The bankruptcy trustee shall be
unlimitedly and personally liable for any damages
caused as a result of fraud or gross negligence on
his part.
Preservation of 
rights.501.  (1) The bankruptcy trustee, once
appointed, shall take every necessary step for the
preservation of rights previously pertaining to the
bankrupt as against his debtors and shall also
cause to be registered in the Public Registry any
hypothec affecting the property of the debtors of
the bankrupt, if the bankrupt has failed to do so.
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(2) It shall be the duty of the bankruptcy
trustee to sue for the payment of any debts due to
the bankrupt, for the benefit of the bankruptcy
estate.
(3) It shall not be lawful for the bankruptcy
trustee to make any compromise or refer any
dispute to arbitration without the consent in
writing of the majority in value of the creditors of
the bankrupt and the authority of the court.
Making up of 
inventory.502.  (1) Within thirty (30) days from the
judgment declaring bankruptcy, the bankruptcy
trustee shall make up an inventory of the property
comprising the bankruptcy estate and file such
inventory in the registry:
Provided that the inventory shall be
updated by the bankruptcy trustee with such
frequency as the bankruptcy trustee may deem
appropriate, having regard to the facts and
circumstances, and in no case later than three (3)
months from the last filing of the inventory.
(2) The period for the making up of the
original inventory may, on the request of the
bankruptcy trustee and for just cause, be extended
to not more than forty-five (45) days.
(3) Every creditor has a right, and the
bankrupt is bound, to assist in the making up of
the inventory.
Contents of 
inventory.503.  The inventory shall contain a true list,
together with a description and the estimated
value, of all the property movable and immovable
comprising the bankruptcy estate held on trust by
the bankruptcy trustee, a statement of the debts
owing to or due by the bankruptcy estate, a
statement of the profits and losses of the bankrupt,
and a statement of the expenses.
Power of the 
court.504.  It shall be lawful for the Civil Court
(Commercial Section), of its own motion or on the
demand of the bankruptcy trustee or of one (1) or
more of the creditors, to compel the bankrupt and
any other person to declare on oath all such
information as it may deem necessary or useful in
the interest of the body of creditors or for the
making up of the inventory, or to confirm on oath
the correctness of the inventory.".
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Substitution of 
Title III of Part 
III of the Code.7.Title III of Part III of the Code shall be substituted by the
following new Title:
"Title III
OF THE RIGHTS OF RECOVERY
Recovery of 
bills of 
exchange, etc.505.  In case of bankruptcy, it shall be lawful
to recover all bills of exchange and other
documents of title yet unpaid which are found in
kind in the possession of the bankrupt at the time
of the bankruptcy, whenever such bills of
exchange or documents of title shall have been
endorsed by the owner for collection for his own
account.
Recovery of 
goods.506.  (1) It shall likewise be lawful to
recover goods delivered to the bankrupt by way of
deposit or sold on account of the owner, so long as
the same exist in kind, wholly or in part.
(2) It shall also be lawful to recover the
price or part of the price of such goods, which has
not been paid in cash or otherwise, or set off in
account current between the bankrupt and the
buyer.
Recovery of 
goods sold to 
bankrupt.507.  (1) Goods sold to the bankrupt or
forwarded to his account may be recovered, so
long as they are in his possession or in the
possession of the bankruptcy trustee.
(2) Nevertheless, such right of recovery
may not subsist in cases where, before their
arrival, the goods have been, without fraud, sold
on invoices or bills of lading signed by the party
forwarding the goods.
(3) The party recovering the goods shall be
bound to return to the bankruptcy estate the sums
received by him on account, and all advances
made in respect of freight, commission, insurance
or other expenses, and shall pay what remains due
in respect of such charges.
Goods not yet 
delivered to 
bankrupt.508.  It shall be lawful for the seller to retain
any goods sold by him to the bankrupt that are yet
unpaid for by the bankrupt, and which have not
yet been delivered to the bankrupt or not yet
forwarded to him or to a third party on his behalf.
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Substitution of 
Title IV of Part 
III of the Code.8.Title IV of Part III of the Code shall be substituted by the
following new Title:Bankruptcy 
trustee’s 
power to 
withdraw 
goods.509.  In the cases mentioned in articles 507
and 508, the bankruptcy trustee shall have the
power to take the goods on paying the seller the
price agreed upon between him and the
bankrupt.".
"Title IV
OF THE PROOF OF DEBTS AGAINST THE 
BANKRUPTCY ESTATE
List of 
creditors.510.  (1) Within fourteen (14) days of
filing the inventory in the registry, the bankruptcy
trustee shall make a list of all the creditors, and
file such list in the registry.
Meeting of 
creditors.(2) Within fourteen (14) days of the filing
of the list of creditors in the registry, the registrar
shall, by order of the court, summon a meeting of
the creditors by means of a notice published in the
Gazette and in one (1) or more newspapers, which
meeting shall be held not later than thirty (30)
days from such order, in the presence of the court
on the day and at the place fixed in the notice:
Provided that a copy of the notice shall
be served upon the listed creditors at their
residential or business address, by means of
registered post.
Organisation 
of debts.(3) The bankruptcy trustee shall, at such
meeting, present a written debt register, by virtue
of which the bankruptcy trustee shall examine the
bankrupt’s debts and organise the debts separately
into commercial debts and personal debts, having
regard to the quality and nature of such debts, and
the manner in which they arose or were incurred:
Provided that, in the event that the debt
register comprises a debt that has not been
incurred exclusively in the pursuit of a trade,
business, craft or profession, the bankruptcy
trustee shall designate the said debt as being a
commercial debt only to the extent that the debt
has been incurred in a manner that would cause
the debt to be treated as a commercial debt in
accordance with article 477, having regard, in
particular, to:
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(a) the manner in which any asset,
good, or service that has been acquired by
virtue of the debt under examination has
been utilised or consumed;
(b) the importance of any asset,
good, or service that has been acquired by
virtue of the debt under examination, to the
trade, business, craft or profession of the
bankrupt and the manner in which said asset,
good, or service has been integrated into the
bankrupt’s commercial practices and relied
upon for the purposes thereof; and
(c) the extent to which any asset,
good, or service that has been acquired by
virtue of the debt under examination, has
been enjoyed for purposes extraneous to the
trade, business, craft or profession of the
bankrupt.
Therefore, and for the purposes of this
Part, any debt that has not been incurred
exclusively in the pursuit of a trade, business, craft
or profession shall, to the extent that the said debt
has been designated as being a commercial debt in
terms of this article, be treated as a commercial
debt, and otherwise as a personal debt.
Contents of 
debt register.(4) The debt register shall comprise, as a
minimum:
(a) the value of each debt;
(b) the name and address of the
creditor to whom each debt pertains;
(c) the date on which each debt
arose;
(d) the bankruptcy trustee’s
classification of each debt as a commercial
or personal debt, provided that, where the
debt has not been incurred exclusively in the
pursuit of a trade, business, craft or
profession, the bankruptcy trustee shall set
out the extent to which the debt has been
designated as being a commercial debt in
terms of sub-article (3), and shall provide
any relevant documentation or information
substantiating the manner in which the debt
has been designated;
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(e) the cause and nature of any
preference or security, if any, attaching to
each debt; and
(f) the manner in which all of the
bankrupt’s debts shall rank according to law.
Application of 
creditor.511.  (1) Every creditor of the bankrupt
shall, at any time prior to such meeting, submit a
request to the bankruptcy trustee for the admission
of his debt, and shall produce and specify the
documents in support of the same, on the basis of
which the bankruptcy trustee shall decide whether
to admit or refuse the claim, and the contents of
the inventory and debt register shall be determined
accordingly.
(2) Any interested party may, within
twenty (20) days of such meeting, make
submissions against the veracity of the contents of
the inventory and debt register. The court shall
only make the determination contemplated in
article 514 after having heard the debtor, the
bankruptcy trustee, or the creditors, as the case
may be.
(3) A procès verbal  shall be drawn up
containing the pleas set up by the debtor, the
bankruptcy trustee and the creditors.
Person 
interested can 
assist in the 
examination of 
claims.512.  Any person, although his debt has not
been proved and admitted, may, on summarily
showing that he is interested, assist in the
examination of the claims of the other creditors
and set up pleas in regard thereto, and shall,
following a request made to the bankruptcy
trustee, be provided, at his expense, a copy of the
inventory and debt register.
False claim. 513.  (1) Where any person wilfully
makes any false claim or falsely claims a larger
sum than that actually due to him, he may be sued
before the Civil Court (Commercial Section), and
shall, on conviction, be liable for the payment of
twice the amount falsely claimed, for the benefit
of the estate of the bankrupt.
(2) Such an action may be brought by the
bankrupt, by any creditor of the bankrupt, or by
the bankruptcy trustee, and shall lapse after a
period of five (5) years from the date of such
claim.
VERŻJONI ELETTRONIKA
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Examination 
of 
submissions.514.  (1) Following the submissions
referred to in article 511(2), the court shall
proceed to the examination of the submissions.
The court shall confirm or vary the contents of the
debt register, as may be relevant within thirty (30)
days of the submissions of an interested party in
terms of article 511(2).
(2) The bankruptcy trustee shall, within
fourteen (14) days, supplement the contents of the
inventory referred to in article 502(1), by the
publication of the debt register drawn up in
accordance with the requirements of article 510,
and the debt register shall be maintained and
updated with such frequency as the inventory in
accordance with the requirements of article
502(1).
(3) Notwithstanding the expiration of the
period referred to in article 511(2), any interested
person may, by application to the court, request
leave to present an application to the bankruptcy
trustee for the admission of a debt not previously
brought to his attention. Where the court accedes
to the request, the bankruptcy trustee shall update
the debt register and the procedures in articles
511(1) and (2), and 514(1), shall, mutatis
mutandis, apply.
Appeal. 515.  (1) Any decree made in terms of
article 514(1) shall be subject to appeal, by
application filed in the registry of the Court of
Appeal within twenty (20) days from the date of
the decree, and any such appeal shall have no
suspensive effects on proceedings in terms of this
Part:
Provided that where more than one (1)
appeal against the decree is filed, the Court of
Appeal shall hear all appeals simultaneously:
VERŻJONI ELETTRONIKA
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Substitution of 
Title V of Part 
III of the Code.9.Title V of Part III of the Code shall be substituted by theProvided further that in hearing the
appeal, the Court of Appeal may decide to admit
any new document or testimony as evidence of a
debt being claimed. Where, however, the Court of
Appeal finds that the claim itself, or any new
document or testimony related to it, could have
been filed at the time of the submissions made in
terms of article 511(2), the Court of Appeal may
order the appellant to bear the costs of the appeal,
in whole or in part.
(2) An appeal against the decree shall not
lie on the grounds that a debt, not incurred
exclusively in the pursuit of a trade, business, craft
or profession, has been incorrectly apportioned in
terms of the proviso to article 510(3), except
where the respective creditor is able to
demonstrate that the apportionment has been
performed in a manner that is manifestly incorrect,
grossly negligent, or fraudulent.
List of 
creditors 
failing to 
appear.516.  (1) The debt register shall separately
identify and contain the names of any known
creditors who failed to appear, in person or by
proxy, at the meeting referred to in article 510(2),
and the said creditors who failed to appear shall
not be taken into account: 
Provided that any listed creditor who
would have ranked below the debt pertaining to
known creditors who failed to appear, shall only
receive payment of his debt, in terms of this Part,
on condition that he provides sufficient security to
the satisfaction of the bankruptcy trustee that will
ensure the making, by him, of a pro rata
contribution in favour of any creditor who has
failed to appear in the event of their appearing
within one (1) year from the day on which the
security was given.
(2) Any creditor that has failed to appear at
the meeting referred to in article 510(2) shall have
the right to request the court to order his inclusion
in the debt register and to order the taking of such
other action as may be necessary so as to give
effect to their inclusion.".
VERŻJONI ELETTRONIKA
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following new Title:
"Title V - OF BANKRUPTCY WITH DEBT AGREEMENT
Call of 
meeting.517.  (1) After the publication of the debt
register in accordance with article 514(2), the
registrar shall call a meeting of the creditors
whose claims have been admitted, that shall be
held within thirty (30) days of the publication.
(2) The bankrupt shall also be summoned
to such meeting. He cannot attend by proxy except
with the approval and for reasons approved by the
court. The court shall examine the instruments of
proxy of those who appear on behalf of absent
creditors.
Proceedings 
during 
meeting.518.  (1) The court shall cause the
bankruptcy trustee to give, in its presence, an
account of the state of the bankruptcy and of
everything that has taken place since the
commencement of proceedings, including but not
being limited to:
(a) any property of the bankruptcy
estate that the bankruptcy trustee has
determined to fall within the terms of article
492;
(b) the admitted debts, and the
contents of the inventory and debt register;
and
(c) whether, in the view of the
bankruptcy trustee, any evidence subsists to
indicate that the bankruptcy may be
fraudulent.
(2) The bankrupt may, in all cases, be
heard. If absent, the meeting shall continue
without him and the bankruptcy trustee shall file a
note in the registry recording this absence.
Terms of debt 
agreement and 
debtor’s 
income 
payment plan.519.  (1) During the meeting, the
bankruptcy trustee shall propose for discussion
and approval by the creditors, the terms of a debt
agreement, for the settlement of the claims of the
creditors, in whole or in part, out of the
bankruptcy estate, which terms have been agreed
to by the bankrupt.
VERŻJONI ELETTRONIKA
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(2) Where the bankrupt is a natural person,
the bankruptcy trustee may propose, within the
terms of the debt agreement referred to in sub-
article (1), an income payment plan, in terms of
which the bankrupt shall be required to continue
to contribute a defined amount of money towards
the bankruptcy estate in the hands of the
bankruptcy trustee, out of anything that devolves
on, or is derived by, the bankrupt after the
rehabilitation in terms of article 524(1)(b), for a
period not exceeding three (3) years to be
reckoned from the date of appointment of the
bankruptcy trustee, for the further settlement of
debts, in whole or in part, in accordance with the
terms of the debt agreement.
(3) The bankruptcy trustee shall, in support
of the debt agreement, provide such information
as shall be necessary to enable the creditors to
appropriately evaluate the proposed terms, and in
the case of an income payment plan being
proposed in terms of sub-article (2), such
information shall include a financial projection
covering the entire duration of the income
payment plan as proposed, illustrating:
(a) the income that the bankrupt may
be reasonably expected to generate, on the
basis of the bankruptcy trustee’s best
assessment, regard being had to the
bankrupt’s circumstances, previous
experience, and qualifications; and
(b) the expenditure that the bankrupt
may be reasonably expected to incur, on the
basis of the bankruptcy trustee’s best
assessment, regard being had to the
bankrupt’s circumstances and dependants.
(4) The bankruptcy trustee shall, during
such meeting, organise the creditors into classes,
for the purpose of voting on the proposed terms,
as the bankruptcy trustee may deem necessary to
distinguish between the varying economic
interests thereof, and which classes shall, at
minimum, distinguish between:
(a) the holders of secured debts;
(b) the holders of unsecured debts;
VERŻJONI ELETTRONIKA
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(c) the holders of subordinated
debts, meaning debts that, in the event of the
liquidation of the bankruptcy estate, would
remain unpaid until the full settlement of all
the non-subordinated debts of the bankrupt;
and
(d) the holders of any ownership
rights, or other similar interests, in the
bankrupt.
(5) The creditors may, at the discretion of
the bankruptcy trustee, be further divided into
additional classes, as may be necessary in order to
distinguish between creditors within the same
class but having debts pertaining to different legal
priorities.
(6) All creditors comprising part of a
specific class shall be treated equally for the
purposes of the proposed terms, except insofar as
with regard to any detrimental treatment that is
expressly agreed to by the directly affected
creditor or creditors.
(7) Any agreement extraneous to the
proposed terms, howsoever formulated, that
purports to grant an unfair advantage to a creditor,
shall be null and void.
Taking of 
votes.520.  The creditors shall have at least
fourteen (14) days to consider the proposed terms
of the debt agreement, and shall reconvene on the
day and at such time fixed by the court, which
shall be in no case later than thirty (30) days
thereafter, for the taking of a vote in the presence
of the judge.
Proposed 
terms shall be 
agreed upon 
by majority of 
creditors.521.  (1) The registrar shall draw up a
procès verbal  of the proceedings that have been
held and of the resolutions passed at such
meetings.
(2) Only classes of creditors shall be
entitled to vote, and the proposed terms shall be
deemed to be approved by the body of creditors
upon receiving the approval of each class of
creditors.
VERŻJONI ELETTRONIKA
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(3) The vote of a class of creditors shall be
exercised on the basis of a resolution of the
creditors comprising that class, which resolution
shall be supported by at least seventy-five percent
(75%) of the said creditors by reference to the
value of the debts represented thereby, for the
purpose of approval.
(4) Where such agreement does not secure
the support of each class of creditors in terms of
sub-article (2), the proposed terms shall be
approved by the court in accordance with article
523, where the court is satisfied that the proposed
terms:
(a) shall not result in a dissenting
creditor within a dissenting creditors’ class
being worse off under the proposed terms
than that dissenting creditor would be if the
terms were not approved and proceedings
were instead undertaken in terms of Title VI;
(b) do not purport to allow any class
of creditors to receive economic value in
excess of the full amount of the debts
pertaining thereto;
(c) ensure that any dissenting class
of creditors is treated at least as favourably
as any other class of creditors whose debts
would, if the normal ranking of creditors
were to be applied, rank pari passu with the
debts pertaining to the dissenting class of
creditors, and more favourably than any
other class of creditors whose debts would
rank below the debts pertaining to the
dissenting class; and
(d) have received the approval of
classes of creditors representing, by
reference to the value of the debts
represented thereby, at least fifty percent
(50%) by reference to the value of the debts.
(5) The Civil Court (Commercial Section)
shall have the authority to examine and approve
any request by tutors or curators of creditors for
their approval or otherwise of the proposed terms
and their execution.
VERŻJONI ELETTRONIKA
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Proposal of 
fresh terms.522.  (1) If the proposed terms are not
deemed to have been approved by the creditors in
accordance with article 521(3), the bankrupt, or
any of the creditors, shall have the right during the
same meeting, to, prior to the approval referred to
in article 523, request the court to permit that the
creditors submit a round of fresh terms within not
more than fourteen (14) days of the refusal of the
proposed terms, and in such case, the court shall
allow the bankrupt and bankruptcy trustee to be
heard before granting such leave.
(2) When the court has granted leave for
the proposal of fresh terms, it shall call a new
meeting in terms of article 518, that shall be held
not later than thirty (30) days from the granting of
such leave, for the approval of the fresh terms.
Any fresh terms shall be submitted to the
bankruptcy trustee at least seven (7) days prior to
such meeting, and the bankruptcy trustee shall
undertake to discuss the fresh terms with the
bankrupt prior to the meeting.
(3) The provisions of this article for the
court to grant leave for the proposal of a round of
fresh terms may only be availed of once:
Provided that any creditor may propose
fresh terms during the meeting to be held in terms
of sub-article (2), and when alternative terms are
proposed for approval, all of the alternative
proposed terms shall be considered.
(4) Where multiple alternative proposed
terms are approved in accordance with article
521(3), the court shall identify the proposed terms
that enjoy the broadest support by reference to the
value of the debts represented by the creditors
voting in favour, and such terms shall prevail to
the exclusion of all others.
Proposed 
terms shall be 
confirmed by 
court.523.  (1) The court shall, when it is
satisfied that the proposed terms have been
approved in accordance with article 521(3), by
order, confirm that the proposed terms have been
lawfully approved by the creditors, and such
confirmation shall be sufficient to make such
terms binding.
VERŻJONI ELETTRONIKA
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(2) If the proposed terms are not deemed to
have been approved in accordance with article
521(3), their confirmation by the court, once it is
satisfied that the conditions referred to in article
521(4) subsist, shall be sufficient to make such
terms binding:
Provided that it shall be assumed by the
court that the requirements of article 521(4)(a) are
satisfied, without any further inquiry by the court,
unless any dissenting creditor has, by application,
requested the court to assess whether the said
requirements do, in fact, subsist.
(3) The confirmation or refusal of the
proposed terms by the court, and any decision of
the court within the context of the proceedings for
the proposal and confirmation of the proposed
terms of a debt agreement, shall be subject to
appeal, by application to the Court of Appeal
within twenty (20) days from the day of the
decision of the court to confirm or refuse the
proposed terms.
(4) The Court of Appeal may,
notwithstanding that it has accepted an appeal
made in terms of sub-article (3), uphold the
decision of the court to confirm the proposed
terms at first instance, and provide such remedy as
necessary to ensure that the appellant is protected
from the effects of the proposed terms, or duly
compensated, such that the appellant:
(a) shall be entitled to receive an
amount at least equivalent to that which the
appellant would have been entitled to if the
normal ranking of priorities were applied, or
in the event of the next-best-alternative
scenario, if the proposed terms had not been
confirmed; or 
VERŻJONI ELETTRONIKA
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(b) shall be treated at least as
favourably as any other creditor within any
class of creditors whose debts would, if the
normal ranking of priorities were to be
applied, rank pari passu  with the debts
pertaining to the appellant, and more
favourably than any other creditor within
any class of creditors whose debts would, if
the normal ranking of priorities were to be
applied, rank below the debts pertaining to
the appellant.
(5) An appeal made in terms of sub-article
(3) shall have no suspensive effects on the
execution of that decision, or on the execution of
any proposed terms approved within the procedure
in which that decision was made.
Effects of 
confirmation.524.  (1) On the proposed terms of the
debt agreement being confirmed, the bankrupt
shall:
(a) where the bankrupt is a legal
person, be automatically discharged of all
debts, and shall be struck off the relevant
register, and any debts that shall remain
unpaid following the execution of the terms
of the debt agreement shall, where so
provided in terms of law, become the
personal liabilities of such other person or
persons as so contemplated by law or by the
constitutive documents of the legal person:
Provided that, insofar as required
for the purposes of this sub-article, the
bankruptcy trustee shall perform any duties
that would ordinarily be assigned to the
liquidator or such equivalent person being
responsible for the winding up of the
relevant legal person:
Provided further that the
bankruptcy trustee shall notify the
competent authority of the discharge of debt,
and the competent authority shall, publish a
notice of completion of bankruptcy
proceedings within the records of the
competent authority, to which the terms of
the debt agreement shall be annexed; or
VERŻJONI ELETTRONIKA
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(b) where the bankrupt is a natural
person, be deemed to be ipso jure
rehabilitated to trade, and may recover the
ownership and possession of his property, in
whole or in part, under the conditions, if any,
embodied in the debt agreement:
Provided that a stipulation that
the bankrupt shall have no power to do any
one (1) or various acts, whether of
administration or of alienation, without the
consent of the bankruptcy trustee, until the
complete or partial fulfilment of the
bankrupt’s obligations in terms of the
income payment plan, shall be a valid
stipulation, and shall have effect even
against third parties who have contracted in
good faith with the bankrupt alone: 
Provided further that upon the
fulfilment of the terms of the income
payment plan, or upon the confirmation of
the proposed terms of the debt agreement if
these do not comprise an income payment
plan, the bankrupt shall be automatically
discharged of all commercial debts that may
at any time previous to the declaration of
bankruptcy have been claimed against him,
and the payment of any commercial debt, or
part thereof, of the bankrupt that shall
remain unpaid following the full execution
of the terms of the debt agreement shall be
abated in full, to the benefit of the
bankruptcy estate.
(2) Upon the rehabilitation to trade of a
bankrupt, being a natural person, a notice of the
rehabilitation shall be published by the bankruptcy
trustee, by means of a notice in the Gazette and in
any one (1) or more newspapers.
VERŻJONI ELETTRONIKA
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Cap. 16.(3) Upon the rehabilitation to trade of a
bankrupt, being a natural person, any personal
debts of the bankrupt that shall remain unpaid
following the full execution of the terms of the
debt agreement, shall, by novation, become the
personal liabilities of the rehabilitated bankrupt,
provided that the novation of such debts shall,
notwithstanding the provisions of article 1186 of
the Civil Code, be without prejudice to the
preservation of any privilege or hypothec securing
the debt:
Provided that an application may be
made to the court by the rehabilitated bankrupt, by
not later than twenty (20) days from the
confirmation of the proposed terms, for any of the
aforementioned personal liabilities to remain the
liabilities of the bankruptcy trustee, who shall
continue to receive payment from the rehabilitated
bankrupt against such personal liabilities, in terms
of the provisions of an agreement reached by and
between the rehabilitated bankrupt and the
relevant creditors thereof, until the respective
personal debt has been satisfied in full, or until an
earlier resolutive condition expressly stipulated in
the agreement between the rehabilitated bankrupt
and his creditor or creditors has been reached:
Provided further that the court shall
only accede to a request made in terms of the first
proviso if it is satisfied that a valid agreement has
been reached by and between the rehabilitated
bankrupt and the relevant creditors thereof, and
only after having received the assent of the
bankruptcy trustee.
(4) The provisions of a debt agreement
shall not be subject to change following the
confirmation thereof, provided that amendment to
the terms of an income payment plan comprising
part of a debt agreement may be requested, at any
time prior to the fulfilment of the terms thereof,
by:
VERŻJONI ELETTRONIKA
A 553
(a) the bankrupt, in the event that,
due to a material change in the
circumstances of the bankrupt or his
dependants, the obligations set out in terms
of the income payment plan exceed the
means of the bankrupt; or
(b) the creditors of the bankrupt, in
the event that, due to a material change in
the circumstances of the bankrupt, the
bankrupt may make a greater contribution
towards the payment of his debts.
(5) Any stipulation contained in the
instrument of the debt agreement, not being
contrary to law, shall be valid. The
aforementioned instrument may provide for the
selection of one (1) or more persons, for the
purpose of ensuring the execution of the terms
thereof, of assisting in the sale of property if any
such sale takes place, and of ensuring the
distribution of the proceeds amongst the several
creditors.
(6) A default in making payment according
to the terms of the debt agreement shall have no
effect on the abatement of debts discharged in
terms of the provisions of this Part.
Where debt 
agreement 
provides for 
the abatement 
of personal 
debts.525.  If the debt agreement provides for the
abatement of all or any part of a personal debt, the
bankrupt shall be discharged, even as regards his
future property, from the part abated:
Provided that such abatement and any
time granted to the bankrupt for the payment of
the personal debt shall not operate in favour of any
other person, being a co-debtor or surety jointly
and severally liable with the bankrupt.
Right of action 
of creditors 
against co-
debtors.526.  Notwithstanding the debt agreement,
the right of action of the creditors for the whole
amount of their debts against the co-debtors or
sureties jointly and severally liable with the
bankrupt shall remain unimpaired, even though
such creditors may have assented to the debt
agreement.
VERŻJONI ELETTRONIKA
A 554
Substitution of 
Title VI of Part 
III of the Code.10.Title VI of Part III of the Code shall be substituted by the
following new Title:The 
bankruptcy 
trustee shall 
render 
accounts.527.  (1) The bankruptcy trustee shall,
within fourteen (14) days subsequent to the
approval of the debt agreement, or, where
relevant, from the date of the completion of the
last of those terms of the debt agreement which
require the intervention of the bankruptcy trustee,
render his final account, and may be compelled to
render such account at the instance of the bankrupt
or of any other interested party.
(2) The bankruptcy trustee shall, within a
period of fourteen (14) days from the date of
delivery of his final account, deliver to the
bankrupt or to the person appointed under the debt
agreement, all the bankrupt’s property, books,
records and other papers or effects, in accordance
with the terms of the debt agreement.
(3) Without prejudice to the requirements
of sub-article (1), the bankruptcy trustee shall,
every six (6) months, that shall be reckoned from
the date of confirmation of the debt agreement,
until the date of the submission of final accounts
referred to in sub-article (1), present an interim
report to the court of all activities conducted by
the bankruptcy trustee, during the relevant period.
The court shall, upon receipt of the report, assess
the extent to which the bankruptcy trustee’s
functions are being conducted in a manner
consistent with the object and purpose of his
appointment, and the court shall, where necessary,
give such orders as required to ensure the swift
and effective execution of the terms of the debt
agreement.".
VERŻJONI ELETTRONIKA
A 555
"Title VI - OF BANKRUPTCY WITHOUT DEBT 
AGREEMENT
If debt 
agreement is 
not approved.528.  If the bankrupt at any time
communicates his intention to proceed with a
bankruptcy without a debt agreement, or does not
provide his consent to the proposed terms of a debt
agreement in terms of the provisions of Title V, or
in the event that the proposed terms are not
confirmed by the creditors and leave has not been
granted for the proposal of fresh terms in
accordance with article 522, or if the proposed
terms have not been confirmed by the court in
accordance with article 523, the court shall:
(a) if the bankrupt is a legal person,
instruct the bankruptcy trustee to appear
before the court, on such date, and at such a
time as shall be specified in the relevant
notice, being a date which shall not be later
than thirty (30) days from the meeting held
in terms of article 518, to present the
proposed terms of the bankruptcy order,
which shall include:
(i) the admitted debts and the
contents of the inventory and debt
register;
(ii) a request to proceed to the
sale of assets comprising the
bankruptcy estate, under the authority
of the court; and
(iii) a request for such
additional authorisations as the
bankruptcy trustee may consider to be
necessary or required for the fulfilment
of the proposed terms of the bankruptcy
order;
VERŻJONI ELETTRONIKA
A 556
(b) if the bankrupt is a natural
person, instruct the bankruptcy trustee to
appear before the court, on such date, and at
such a time, as shall be specified in the
relevant notice, being a date which shall not
be later than thirty (30) days from the
meeting held in terms of article 518, to
present the proposed terms of the bankruptcy
order, which shall include:
(i) the admitted debts and the
contents of the inventory and debt
register;
(ii) the assets, retained by the
bankrupt, that the bankruptcy trustee
has deemed to be protected in terms of
article 492, provided that the
bankruptcy trustee shall, where he
deems that such assets have an
excessive value in consideration of the
circumstances of the bankrupt, or in
any circumstances where he is so
petitioned by creditors representing in
excess of ten per cent (10%) of the
admitted debts, propose that such assets
be seized and realised in terms of
article 528(b)(iii), and that a
determined portion of the resultant
proceeds be reimbursed to the
bankrupt, as the bankruptcy trustee may
deem necessary for the bankrupt to
secure the use of assets that would
represent a suitable replacement;
(iii) the assets, forming part of
the bankruptcy estate, that shall be sold,
under the authority of the court, for the
settlement of the debts pertaining to the
creditors, in whole or in part;
VERŻJONI ELETTRONIKA
A 557
(iv) the conditions, if any,
pursuant to which the bankrupt may
recover ownership of those assets,
forming part of the bankruptcy estate,
which are not proposed for sale in terms
of article 528(b)(iii), provided that such
assets shall automatically fall to be sold
in terms of article 528(b)(iii) if the
prescribed conditions are not met;
(v) the established amount
that the bankrupt shall contribute
towards the bankruptcy estate in the
hands of the bankruptcy trustee, in
terms of an income payment plan, if
any, forming part of the bankruptcy
order, out of anything that devolves on,
or is derived by, the bankrupt after the
rehabilitation in terms of article
534(1)(b), for a period not exceeding
three (3) years that shall be reckoned
from the date of the original
appointment of the first bankruptcy
trustee, for the further settlement of
debts, in whole or in part, which
amount shall be formulated in
accordance with the bankruptcy
trustee’s projection of the bankrupt’s
income and expenditure in terms of
article 519(3); and
(vi) any other obligations that
shall be imposed on the bankrupt for
the duration of the income payment
plan.
Minimum 
requirements 
of the 
bankruptcy 
order.529.  (1) The provisions of a bankruptcy
order, in terms of article 528(b), shall ensure that
the bankrupt is permitted to retain moneys
equivalent to the combined value of:
(a) the national minimum wage
established for persons of eighteen (18)
years and over, calculated pro rata for the
duration of the income payment plan; and
VERŻJONI ELETTRONIKA
A 558
(b) an additional amount in excess of
the national minimum wage where the
bankrupt reasonably demonstrates, to the
satisfaction of the court, that the bankrupt
has an overriding need for the additional
amount on account of grave and justifiable
circumstances specific to the bankrupt or his
dependants.
(2) Any funds resulting from the sale of
those assets comprising the bankruptcy estate and
listed in terms of article 528(b)(iii) shall be
utilised for the settlement of the debts of the
bankrupt, whether personal or commercial in
nature, in the order in which these shall rank in
terms of law.
(3) Any contributions to the bankruptcy
estate made by virtue of an income payment plan
in terms of article 528(b)(v) shall be utilised
exclusively for the settlement of the commercial
debts of the bankrupt, in the order in which these
shall rank according to law:
Provided that any contributions to the
bankruptcy estate made in terms of an income
payment plan by virtue of article 528(b)(v) that are
made subsequent to the full settlement of the
commercial debts of the bankrupt shall be utilised
for the further settlement of the personal debts of
the bankrupt.
Presentation of 
evidence 
regarding 
fraud.530.  During the hearing referred to in article
528, the bankruptcy trustee shall also present a
statement reflecting his evaluation of whether the
bankruptcy may be fraudulent, and in the event
that the statement maintains the possibility of the
subsistence of fraud, the bankruptcy trustee shall
submit all evidence in support of his statement.
Right to be 
heard.531.  The bankrupt and the creditors shall, at
such hearing, or at a later date that shall be
determined by the court, be given the opportunity
to be heard.
VERŻJONI ELETTRONIKA
A 559
Confirmation 
and variation.532.  (1) Within fourteen (14) days of the
hearing held in terms of article 528, or article 531
if applicable, the court shall, by order, proceed to
confirm, subject to any variations as it may deem
appropriate, the proposed terms of the bankruptcy
order proposed in accordance with article 528, and
such confirmation shall be sufficient to make the
proposed terms binding.
(2) Upon the confirmation by the court in
terms of sub-article (1), the court shall accede to
the request of the bankruptcy trustee to proceed,
within such period as shall be stipulated by the
court, to the sale, under the authority of the court,
of those assets comprising the bankruptcy estate
and listed in terms of articles 528(a)(i) or
528(b)(iii).
(3) The terms of the bankruptcy order, and
any decision of the court within the context of the
proceedings for the making of a bankruptcy order,
shall be subject to appeal, by application to the
Court of Appeal within twenty (20) days from the
day of the decision of the court to confirm or
refuse the proposed terms of the bankruptcy order.
(4) The Court of Appeal may,
notwithstanding that it has accepted an appeal
made in terms of sub-article (3), uphold the
decision of the court to confirm the proposed
terms at first instance, and provide such remedy as
necessary to ensure that the appellant is protected
from the effects of the proposed terms, or duly
compensated, such that the appellant:
(a) shall be entitled to receive an
amount at least equivalent to that which the
appellant would have been entitled to if the
normal ranking of priorities were applied, or
in the event of the next-best-alternative
scenario, if the proposed terms had not been
confirmed; and
VERŻJONI ELETTRONIKA
A 560
(b) shall be treated at least as
favourably as any other creditor within any
class of creditors whose debts would, if the
normal ranking of priorities were to be
applied, rank pari passu  with the debts
pertaining to the appellant, and more
favourably than any other creditor within
any class of creditors whose debts would, if
the normal ranking of priorities were to be
applied, rank below the debts pertaining to
the appellant.
(5) An appeal made in terms of sub-article
(3) shall have no suspensive effects on the
execution of that decision, or on the execution of
any proposed terms approved within the procedure
in which that decision was made.
Redemption of 
pledges.533.  (1) Upon being instructed to proceed
to the sale of assets comprising the bankruptcy
estate, the bankruptcy trustee shall be authorized
to redeem pledges, for the benefit of the
bankruptcy estate, upon payment of the respective
debts.
(2) If the pledge is not redeemed by the
bankruptcy trustee, and is sold by the creditor for a
price exceeding the debt, the surplus shall be
collected by the bankruptcy trustee; if the price
realized is less than the debt, the creditor who had
the pledge may prove and compete for the
difference.
Liability for 
unpaid debts 
and 
rehabilitation.534.  (1) Upon the instruction by the
court, to the bankruptcy trustee to proceed to the
sale of assets comprising the bankruptcy estate,
the bankrupt shall, provided that there is no
determination by the court of the bankruptcy being
fraudulent:
Where the 
bankrupt is a 
legal person.(a) where the bankrupt is a legal
person, be automatically discharged of all
debts, and shall be struck off the relevant
register, and any debts that shall remain
unpaid following the sale of assets shall,
where so provided in terms of law, become
the personal liabilities of such other person
or persons as so contemplated by law or by
the constitutive documents of the legal
person:
VERŻJONI ELETTRONIKA
A 561
Provided that, insofar as required
for the purposes of this sub-article, the
bankruptcy trustee shall perform any duties
that would ordinarily be assigned to the
liquidator or such equivalent person being
responsible for the winding up of the
relevant legal person:
Provided further that the
bankruptcy trustee shall notify the competent
authority of the discharge of debt, and the
competent authority shall publish a notice of
completion of bankruptcy proceedings
within the records of the competent
authority, to which the terms of the
bankruptcy order shall be annexed; or
Where the 
bankrupt is a 
natural person.(b) where the bankrupt is a natural
person, be deemed to be ipso jure
rehabilitated to trade, and may recover the
ownership and possession of his property, in
whole or in part, under the conditions, if any,
embodied in the bankruptcy order:
Provided that a stipulation that
the bankrupt shall have no power to do any
one (1) or various acts, whether of
administration or of alienation, without the
consent of the bankruptcy trustee, until the
complete or partial fulfilment of the
bankrupt’s obligations in terms of the
income payment plan, shall be a valid
stipulation, and shall have effect even
against third parties who have contracted in
good faith with the bankrupt alone:
Provided further that upon the
fulfilment of the terms of the income
payment plan, or upon the confirmation of
the proposed terms of the bankruptcy order if
these do not comprise an income payment
plan, the bankrupt shall be automatically
discharged of all commercial debts that may
at any time previous to the declaration of
bankruptcy have been claimed against him,
VERŻJONI ELETTRONIKA
A 562
 and the payment of any commercial debt, or
part thereof, of the bankrupt that shall
remain unpaid following the full execution
of the terms of the bankruptcy order shall be
abated in full, to the benefit of the
bankruptcy estate.
(2) Upon the rehabilitation to trade of a
bankrupt, being a natural person, a notice of the
rehabilitation shall be published by the bankruptcy
trustee, in the Gazette and in any one (1) or more
newspapers.
Cap. 16.(3) Upon the rehabilitation to trade of a
bankrupt, being a natural person, any personal
debts of the bankrupt that shall remain unpaid
following the full execution of the terms of the
bankruptcy order, shall, by novation, become the
personal liabilities of the rehabilitated bankrupt,
provided that the novation of such debts shall,
notwithstanding the provisions of article 1186 of
the Civil Code, be without prejudice to the
preservation of any privilege or hypothec securing
the debt:
Provided that an application may be
made to the court by the rehabilitated bankrupt, by
not later than twenty (20) days from the making of
a bankruptcy order, for any of the aforementioned
personal debts to remain the liabilities of the
bankruptcy trustee, who shall continue to receive
payment from the rehabilitated bankrupt against
such personal debts, in terms of an agreement
reached by and between the rehabilitated bankrupt
and the relevant creditors thereof, until the
respective personal debt has been satisfied in full,
or until an earlier resolutive condition expressly
stipulated in the agreement between the
rehabilitated bankrupt and his creditor or creditors
has been reached:
Provided further that the court shall
only accede to a request made in terms of the first
proviso, if it is satisfied that a valid agreement has
been reached by and between the rehabilitated
bankrupt and the relevant creditors thereof, and
only after having received the assent of the
bankruptcy trustee.
VERŻJONI ELETTRONIKA
A 563
(4) The provisions of a bankruptcy order
shall not be subject to change following the
confirmation thereof, provided that amendment to
the terms of an income payment plan comprising
part of a bankruptcy order may be requested at any
time prior to the fulfilment of the terms thereof,
by:
(a) the bankrupt, in the event that,
due to a material change in the
circumstances of the bankrupt or his
dependants, the obligations set out in terms
of the income payment plan exceed the
means of the bankrupt; or
(b) the creditors of the bankrupt, in
the event that, due to a material change in the
circumstances of the bankrupt, the bankrupt
is able to make a greater contribution
towards the payment of commercial debts
that would otherwise be discharged.
(5) Any stipulation contained in the
bankruptcy order, not being contrary to law, shall
be valid. The aforementioned instrument may
provide for the selection of one (1) or more
persons, for the purpose of ensuring the execution
of the terms thereof, of assisting in the sale of
property if any such sale takes place, and of
securing the distribution of the proceeds amongst
the several creditors. 
(6) A default in making payment according
to the terms of the bankruptcy order shall have no
effect on the abatement of debts discharged in
terms of the provisions of this Part.
Where 
bankruptcy 
order provides 
for the 
abatement of 
part of debt.535.  If the bankruptcy order provides for the
abatement of all or any part of a personal debt, the
bankrupt shall be discharged, even as regards his
future property, from the part abated:
 Provided that such abatement and any
time granted to the bankrupt for the payment of
the personal debt shall not operate in favour of any
other person, being a co-debtor or surety jointly
and severally liable with the bankrupt.
VERŻJONI ELETTRONIKA
A 564
Substitution of 
Title VII of Part 
III of the Code.11.Title VII of Part III of the Code shall be substituted by the
following new Title:Right of action 
of creditors 
against co-
debtors.536.  Notwithstanding the bankruptcy order,
the right of action of the creditors for the whole
amount of their debts against the co-debtors or
sureties jointly and severally liable with the
bankrupt shall remain unimpaired.
The 
bankruptcy 
trustee shall 
render 
accounts.537.  (1) The bankruptcy trustee shall,
within fourteen (14) days subsequent to the
approval of the bankruptcy order, or, where
relevant, from the date of the completion of any of
the terms of the bankruptcy order which require
the intervention of the bankruptcy trustee, render
his final account, and may be compelled to render
such account at the instance of the bankrupt or of
any other interested party.
(2) The bankruptcy trustee shall, within a
period of fourteen (14) days from the date of
delivery of his final account, deliver to the
bankrupt or to the person appointed under the
bankruptcy order, all the bankrupt’s property,
books, records and other papers or effects, in
accordance with the terms of the bankruptcy order.
(3) Without prejudice to the requirements
of sub-article (1), the bankruptcy trustee shall,
every six (6) months, that shall be reckoned from
the date of confirmation of the bankruptcy order
until the date of the submission of final accounts
referred to in sub-article (1), present an interim
report to the court of all activities conducted by
the bankruptcy trustee, during the relevant period.
The court shall, upon receipt of the report, assess
the extent to which the bankruptcy trustee’s
functions are being conducted in a manner
consistent with the object and purpose of his
appointment, and the court shall, where necessary,
give such orders as required to ensure the swift
and effective execution of the terms of the
bankruptcy order.".
VERŻJONI ELETTRONIKA
A 565
"Title VII - OF BANKRUPTCY IN GENERAL
General 
provisions.538.  In all cases of bankruptcy:
Appointment 
of curator to 
give his 
consent in lieu 
of a creditor.(1)(a) Upon the authorisation of the court for
the bankruptcy trustee to proceed to the sale of
assets comprising the bankruptcy estate in terms
of article 497, or in pursuance to a debt agreement,
or a bankruptcy order, and if the bankruptcy
trustee has identified the need to obtain the
consent of a creditor prior to the transfer of any
asset or assets, and, or, where the creditor is
required to appear on any pertinent public deed so
as to consent to the cancellation of, or a reduction
in, any cause of preference and the registration of
the same, enjoyed by the creditor over the said
asset or assets, the bankruptcy trustee may, if he is
of the opinion that the consent of the said creditor
is, or may be withheld, make an application to the
court for the appointment of a curator.
(b) A curator appointed in terms of this
article, may under the authority of the court,
consent to the transfer of assets and, or, appear on
any pertinent public deed to consent for and on
behalf of the creditor, referred to in paragraph (a) ,
who may withhold his consent to the cancellation
of, or reduction in, any cause of preference, and
the registration of the same, enjoyed by the said
creditor, on condition that the curator receives that
portion of the proceeds of the sale of assets which,
in terms of law and subject to the debt agreement
or bankruptcy order, which pertains to the said
creditor, that shall be applied in his favour in
terms of article 538(1)(c):
VERŻJONI ELETTRONIKA
A 566
Provided that the court shall only proceed to
the appointment of a curator for the sale of assets
comprising the bankruptcy estate in terms of
article 497, where the bankruptcy trustee has, in
his application, expressed the opinion that the
creditor, referred to in paragraph (a) , who may
withhold his consent shall receive, as a result of
the sale of assets, an amount at least equivalent to
that which the said creditor would have been
entitled to if the normal ranking of priorities were
applied, or in the event of the next-best-alternative
scenario, if the sale of assets were not to take
place.
(c) The curator shall receive, for and on
behalf of the creditor, referred to in paragraph (a) ,
who may withhold his consent, that portion of the
proceeds of the sale of assets referred to in article
538(1)(b) which, in terms of law and subject to the
debt agreement or bankruptcy order, pertains to
the said creditor, and shall ensure that such funds
are either distributed to the said creditor or, if this
is not reasonably practicable, deposited in court
for the benefit of the said creditor:
Provided that the proceeds of a sale of assets
in terms of article 497, shall not be distributed or
deposited in terms of paragraph (c), but shall
aggregate to the bankruptcy estate in terms of
article 495.
(2) (a) once the judgment declaring
bankruptcy is given in terms of article 488, no
interest on the sums due by the bankrupt shall
accrue from the date of the declaration of
bankruptcy made by the trader himself, or from
the date of the application by a creditor demanding
a declaration of bankruptcy, as the case may be;
and
(b) there shall be no possibility of
discharge with respect to debts arising from:
(i) any fine (ammenda or
multa) due by the debtor in terms of the
Laws of Malta;
(ii) civil debts due by the
debtor by way of damages in tort;
VERŻJONI ELETTRONIKA
A 567
Cap. 452.(iii) wages due by the debtor
and constituting a privileged claim over
the assets of the debtor in terms of
article 20 of the Employment and
Industrial Relations Act;
Cap. 386.(iv) debts due by the debtor by
way of fraudulent or wrongful trading
in terms of the relevant provisions of
the Companies Act; and
Cap. 16.(v) debts due by the debtor in
relation to maintenance obligations in
terms of the relevant provisions of the
Civil Code.
Fraudulent 
bankruptcy.539.  (1) The benefits granted by articles
524 and 534 in favour of the bankrupt shall not
apply in the case of fraudulent bankruptcy.
(2) A bankrupt shall be deemed to be a
fraudulent bankrupt in each one (1) of the
following cases:
(a) if he makes an untrue statement
in respect of the debts owing to or from him,
or in respect of his bankruptcy, saving any
criminal proceedings which may be brought
against the bankrupt for having perjured
himself or sworn falsely;
(b) if he has simulated any expenses
or losses or if he fails to give a satisfactory
explanation of the manner in which his
income has been disposed of;
(c) if he has concealed or removed
any sum of money, or any debt due to him,
goods, merchandise or other movable
effects;
(d) if he has made fictitious sales,
transactions or donations;
(e) if he has simulated collusive
debts between himself and fictitious
creditors, by simulated writings or by
declaring himself debtor, without
consideration or cause, in any public or
private act;
(f) if he has concealed or destroyed
his books, documents or other papers
relating to his accounts.
VERŻJONI ELETTRONIKA
A 568
Substitution of 
article 547 of 
the Code.12.Article 547 of the Code shall be substituted by the
following new article :
Cap. 12"547. Commercial jurisdiction, except for the provisions
of Part III, shall be exercised by the Civil Court, First Hall, in
accordance with the provisions contained in the Code of
Organization and Civil Procedure.".
Substitution of 
article 549 of 
the Code.13.Article 54 9 of the Code shall be substituted by the
following new article:
"549. The Civil Court, First Hall, shall also take
cognizance of actions against agents or other persons
commissioned by merchants or their subordinates in regard only
to transactions carried out in the ordinary course of the business
of their principal; and of actions by the former against the
principal.".
Consequential 
amendment to 
the Civil Courts 
(Establishment 
of Sections) 
Order. 
S.L.12.19.14.Regulation 5A of the Civil Courts (Establishment of
Sections) Order shall be amended by the following:  
(a) the marginal note thereof shall be substituted by the
following new marginal note:
"Assignment of cases to the Civil Court
(Commercial Section). Cap. 13. Cap. 386. Cap. 378. Cap.
379. Cap. 510. Act No. XXIV of 2022 ."; and
(b) the words "matters regulated by the Companies Act"
thereof shall be substituted by the words "matters regulated by
the Third Part of the Commercial Code and any regulations
made thereunder, by the Companies Act, by the Pre-Insolvency
Act, 2022".Cases where 
trader may be 
adjudged a 
fraudulent 
bankrupt.540.  A bankrupt may in the following cases
be adjudged a fraudulent bankrupt, unless he
sufficiently proves that he had no intent to
defraud:
(a) if he has not kept books or if his
books do not show the true state of his assets
and liabilities;
(b) if, on being lawfully summoned
for any meeting which, by the provisions of
this Part he is bound to attend, he fails to
attend;
(c) if he has not aided in the making
up of the inventory.".
VERŻJONI ELETTRONIKA
A 569
Passed by the House of Representatives at Sitting No. 70 of the 14th
December, 2022.
ANĠLU FARRUGIA
Speaker
RAYMOND SCICLUNA
Clerk of the House of Representatives
VERŻJONI ELETTRONIKA
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