ADVOKS GLOBAL · KENYA
Insolvency Act
212. Court may order recipient of bankrupt's contribution to property of another to pay value to bankruptcy trustee
Edition: 2022-12-31 · In force
212. Court may order recipient of bankrupt's contribution to property of another to pay value to bankruptcy trustee
(1)The bankruptcy trustee may make an application to the Court for an order directing the recipient of a contribution by the bankrupt to the recipient's property to pay the value of the contribution to the bankruptcy trustee.(2)On the hearing on an application made under subsection (1), the Court may make the order sought but only if satisfied that—(a)the bankrupt was not paid an adequate amount in money or money's worth for the contribution;(b)the value of the bankrupt's assets was reduced by the contribution; and(c)the bankrupt made the contribution—(i)within the two years immediately preceding the commencement of the bankruptcy; or(ii)within the five years immediately before that commencement, and the recipient is not able to prove that the bankrupt, either at the time of the contribution or at any later time before that commencement, was able to pay the bankrupt's debts without the aid of the contribution.(3)For the purposes of this section and section 213, a bankrupt has made a contribution to the recipient's property if the bankrupt has—(a)erected buildings on, or otherwise improved, land or any other property of the recipient;(b)bought land or any other property in the recipient's name;(c)provided money to buy land or any other property in the recipient's name or on the recipient's behalf; or(d)paid instalments for the purchase of, or towards the purchase of, land or any other property in the recipient's name or on the recipient's behalf.