Ans to the question no 7

The issue here Mr. X, a dental surgeon of Bangladesh, having a dental clinic at Dhaka was adjudicated
bankrupt by a Bankruptcy Court and accordingly a Receiver was appointed. All the things is under the
section 23 or 31 under act 1997.

From the case MR. X refuse to give his two-dental chair, his Gulshan house and Mr. Y refuse give up his
two storied building to the receiver which he bought form one of Mr. X creditor.

Anything contained in any other provisions of this Act the following property of an individual debtor
shall not be liable to be taken over, or vested under Section 23 or 31 respectively,
(i) the tools, if any, used by the debtor himself;
(ii) wearing appeal and household furnishing and debtor’s un-mortgaged dwelling place or homestead, the
area of which is not exceeding 2500 square feet of land or plinth in one or more than one storied building
in the urban area or 5000 square feet of land or plinth in one or more than one storied building in any
other area;
Provided that the total value of the articles specified in clauses (i) shall not exceed taka 3,00,000 (three
lac).
In this case,

According to “Act of Bankruptcy”, section 09, transfer of property which would be void as
fraudulent preference. So, Mr. Y must return the two storied building he bought from Mr. X .As
Mr X already announce as a bankrupt.
On the other hand, notwithstanding any of the other provisions of this Act, the following
properties of a specific debtor shall not be liable to be taken over or vested in compliance with
Section 23 or Section 31, respectively, and such properties shall be referred to as exempted
assets. Debtor’s un-mortgaged dwelling place or homestead, the area of which is not exceeding
2500 square feet of land or plinth in one or more than one storied building in the urban area or
5000 square feet of land or plinth in one or more than one storied building in any other area. So,
receiver has no right to take over this building where currently Mr. X Stays in. Under section 23
& 31 receiver can’t take the tools, if any, used by the debtor himself simply meaning tools of
profession. But shall not exceed taka 3,00,000 (three lac). In Bangladesh market a single dental
chair might cost 150,000. So, two costs very high. The receiver may ask to take it back one chair
from Mr. X.
From my perspective, right after knowing that a bankruptcy case has been filed against him, Mr.
X sold the property to Mr. Y. This will be considered as a shrewd act of Mr. X as he already
knew that has been filed bankrupted. So, whatever happens, Mr. Y must surrender the building
he bought from Mr. X.
On the other hand, the current residing place which is approximately 2350 sq. ft. and here he
resides with his family so I believe, Mr. X is right here. And tools of profession can’t be taken
over but here Mr. X is a dentist and his chair costs a higher price that’s why receivers can take
over one chair and let him keep another one which is pretty much justified.
In conclusion, a fair decision has to be taken for both creditors and the debtor. There shouldn’t
be any negligence because court has to address the issue and to look after both the party very
carefully. Through, a rational and appropriate manner, the problem needs to be addressed.

ANS TO THE Q> NO 3

Who is a Bankrupt and why? What constitutes an act of bankruptcy? What are the basic
requirements that ‘Creditor’ and ‘Debtor’ must fulfill in order to succeed in a
bankruptcy proceeding? When a secured creditor can participate in bankruptcy
proceedings?

When an individual or business feels like they are no longer able to repay all of their Outstanding debts,
they may seek to file for bankruptcy. The bankruptcy process begins with a petition filed by the debtor,
which is most common, or on behalf of creditors, which is less common. Although there are several
different types of bankruptcy and different qualifying factors for each, the end goal is the same: to
be discharged from debts and get a financial fresh start.
In the past, the Provincial Insolvency Act (5 of 1920) and Insolvency (Capital of the Federation and
Dhaka) Act (III of 1909) were the major Acts which contain provisions regarding Bankruptcy in
Bangladesh but in 1997 with the enactment of Bankruptcy Act, 1997 new Bankruptcy Course were
created to deal with all bankruptcy proceedings.

constitutes an act of bankruptcy:

According to Sec 9 In any of the following cases a debtor commits a 'Act of bankruptcy’:
(1) Transfer of all or substantially all his property, in Bangladesh or elsewhere, by benami to a
third party for the benefit of creditors generally;
(2) Transfer of property with intent to defeat or delay creditors;
(3) Transfer of property which would be void as fraudulent preference;
(4) If with intent to defeat or delay creditors, (i) he departs or remains out of Bangladesh; (ii)
departs from the dwelling house or usual place of business; (iii) secludes himself so as to
deprive his creditors of the means of communicating with him;
(5) If any of the property has been sold in execution of a decree for money;
(6) If he petitions to be adjudged a bankrupt;
(7) If he notifies his creditors that he has suspended or is about to suspend payment of debts;
(8) If he is imprisoned in execution of decree for money;
(9) If one or more creditor, having a valid and matured debt against the debtor for an amount of not less
than Tk. 5,00,000/- has served on such debtor a formal demand under this Act requiring such debtor to
pay the debt or to give security for it to the satisfaction of such creditor or creditors and, within 90 days
after service of the demand, the debtor does not comply with the requirements of the demand.

the basic requirements of ‘Creditor’ :

1) A creditor shall not present a Bankruptcy petition against a debtor unless:
(i) the debt owing by the debtor to the creditor, or, if two or more creditors join in the petition,
the aggregate amount of debts owing to such creditors, amounts to five lack takas;
(ii) such creditors have a prima facie case that the debtor has committed an act of bankruptcy
(iii) the act of Bankruptcy on which the petition is grounded has occurred within one year
before the presentation of the petition.

When the three provisions in clauses I ii and iii remain, the debtor's creditor is entitled to make
a petition.
the basic requirements of ‘Debtor’ :
1. A debtor shall not present a Bankruptcy petition unless he is specifically mentioned in his
plaint that he is unable to pay his debts, and -
(i) his debts amount to taka twenty thousand; or
(ii) he is under arrest or imprisonment in execution of the decree of any Court for the payment
of money; or
(iii) an order of attachment in execution of such a decree has been made, and is subsisting
against his property.

According to Bankruptcy Act, 1997 [Sec. 12(1)] , a secured creditor can participate in bankruptcy
proceedings if “ A secured creditor shall either state his willingness to relinquish his security for the
benefit of the creditors or give an estimate of the value of the security. Failing which he shall be deemed
to have opted to be treated as an unsecured creditor “
.
Ans To the Q.No.4
A)

Court may grant a protection order to the insolvent on his application at any time after the order of
adjudication. It may apply to all the debts of the insolvent or only to some of them as the Court may
think fit and shall be in force for such time as the Court may direct. It may be revoked or renewed at the
discretion of the Court. The effect of order is to protect the insolvent from arrest or detention in prison
for any debts. If the insolvent is already in jail, he shall be entitled to be released on the grant of a
protection order.

Anything contained in any other provisions of this Act the following property of an individual debtor
shall not be liable to be taken over, or vested under Section 23 or 31 respectively,
(i) the tools, if any, used by the debtor himself;
(ii) wearing appeal and household furnishing and debtor’s un-mortgaged dwelling place or homestead, the
area of which is not exceeding 2500 square feet of land or plinth in one or more than one storied building
in the urban area or 5000 square feet of land or plinth in one or more than one storied building in any
other area;
Provided that the total value of the articles specified in clauses (i) shall not exceed taka 3,00,000 (three
lac).
The rationale behind it “Bankruptcy Act, 1997” is make based on humanity. If a man is bankrupt and all
his belonging taken from him than how he live his or her life. One of the purposes of “Bankruptcy Act,
1997” is to be discharged from debts and get a fresh start in life.

B)
A 'composition' or a 'scheme of arrangement' is a settlement between the insolvent and his
creditors whereby the creditors agree to accept something less than the amount actually due to
them, in full settlement of their claims.
The debtor may send a proposal for 'composition' or 'arrangement' of his debts in the prescribed form to
the Official Assignee / Receiver after the order of adjudication is made. A copy of the proposal is
submitted by the Official Assignee or Receiver to each creditor and a meeting of the creditors is held. If
in the consideration of the proposition, 2/3 (two third) in value of all the creditors, approve the proposal,
The debtor can then order its permission from the Judge. If the Court gives its approval to the scheme,
the scheme becomes binding on all the creditors. The debtor will then have right to deal with his estate
as if he had not been adjudged in insolvent.

Yes, the Bankruptcy court always bound to accept the scheme because If in the consideration of the
proposal, 2/3 (two third) in value of all the creditors accept the proposal, the same is duly accepted by
the creditors.
The case goes under section 56 of the contract act 1872 which is also known as DOCTRINE OF
FRUSTATION along with section 65 of the contract act 1872. By combining both the sections, it says
that when a contract becomes void due to the impossibility of performance, any payment made
under such a contract can be recovered. The venue due to fails its safety inspection just before the
day of program of the student union of BRAC University student society. Under section 56 of
contract act 1872, if for any none of the parties are responsible such as some supervening
circumstances which make the parties unable to perform, then the contract comes to an end due to
frustration. Since there will be no show, LRB has some right and liabilities. On this event, we can
allude to Section 56 and 62 of The Contract Act, 1872. According to Doctrine of Frustration and 62, if
an agreement gets void by excellence of resulting difficulty of execution, it is officeholder on the
beneficiary to reestablish the sum. In this circumstance, the agreement got void since the
amphitheater consumed, which was something inevitable. In any case, LRB acquired a few costs while
getting ready for the show, they pay nonrefundable deposit 5000 tk. Thus, they can keep that sum
from the cash which was paid to them at first TK 100000. Subsequent to deducting their costs, they
should restore the leftover measure of cash to the Students Union.

In conclusion, the LRB band has right to deduct their cost TK 5000 and liable to BRAC University
student society. They need to back the rest of money TK 950000after deduction of their cost which
they have taken from the student.

This is a matter of Frustration According to law there are provisions for occurrence due to
unavoidable circumstances. It means whenever any act is happening due to unavoidable
circumstances or known as act of god, legal terms are applied in a different way. In the given fact the
concert is supposed to be happen in BRAC University. LRB was paid half of the payment. As the
venue fails to satisfy safety inspection. It is nothing but an act of god or unavoidable circumstances.
In such situation LRB has rights and liabilities. They cannot beyond act of god or unavoidable
circumstances. As the payment was nonrefundable LRB will not refund as per the contract they won't
get the other half as the performance was due. Therefore, unavoidable circumstances lies on the
responsibilities of the students as well as the rights of the band.