Insolvency Interrogations: A brief investigation

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The law of insolvency exists primarily to protect a creditor’s claim against a debtor.

Section 64(1) of the lnsolvency Act is obligatory in that it compels the Insolvent and certain other persons to attend the enquiry.

Section 65(1) of the lnsolvency Act empowers the presiding officer to administer an oath and interrogate the insolvent and other witnesses who might have been subpoenaed to attend to the enquiry.

The insolvent/witnesses must fully disclose any material information relating to the previous financial affairs of the previously solvent company or natural person.

Any creditor with a claim against the insolvent estate is entitled to interrogate any person who has been subpoenaed to attend the enquiry.

As the witnesses are under subpoena, they may not refuse to answer any questions. They are under oath so they will not be allowed to fabricate any of the information which needs to be furnished to the prescribed officer.

However, creditors may not ask baseless, unjustified and disingenuous questions.

The presiding officer has discretion to disallow any type of question mentioned above and is further permitted to disallow a question which would prolong the interrogation unnecessarily.

Section 66(1) of the Insolvency Act empowers the presiding officer to issue a warrant for the apprehension of any person who fails to answer to the summons issued under section 64 of the Act. The officer in charge of the prison to which the said person or insolvent was committed, shall detain him and produce him at the time and place appointed by the first mentioned officer for his production.


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