Insolvency Act

191. Transaction with bankrupt made in ignorance of bankruptcy

Edition: 2022-12-31 · In force

191. Transaction with bankrupt made in ignorance of bankruptcy

(1)This section applies to a payment of money or a delivery of property to a person who is adjudged bankrupt, whether the payment or delivery is made—

(a)on the order of the person; or

(b)from the person to an assignee or to the order of an assignee.

(2)The payment or delivery is a good discharge to the person who made the payment or delivery if—

(a)the payment or delivery was made before the bankruptcy of the person referred to in subsection (1) was advertised; and

(b)the person making the payment or delivery satisfies the Court that—

(i)that person had no knowledge of the bankruptcy or that an application for a bankruptcy order had been made; and

(ii)the payment or delivery was made in the ordinary course of business or was otherwise made in good faith.

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Source: Kenya Law