Wakilii

Re In The Matter of A Petition For A Receiving Order By Thomas.I.Katto (Bankruptcy Petition No. 13 of 2002)

High Court · [2002] UGCOMMC 21 · 2002 Petition Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Bankruptcy petition filed by debtor seeking receiving order
Decision
Receiving order issued; debtor's estate placed under protection of Official Receiver

Observed later treatment

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Holding

Held that the debtor satisfied all procedural and substantive requirements for a receiving order under the Bankruptcy Act. The debtor proved his indebtedness through court judgments totalling over Shs 2.5 billion, and committed an act of bankruptcy by filing the petition. A receiving order was granted. However, the court declined to stay pending proceedings as the debtor failed to provide any reasons or particulars of such proceedings to support an exercise of judicial discretion.

Outcome

Receiving order issued; debtor's estate placed under protection of Official Receiver

Facts

Thomas I. Katto filed a bankruptcy petition as a debtor, seeking a receiving order against his estate and a stay of pending court actions. He was indebted to International Credit Bank in the approximate amount of Shs 2,369,249,261 arising from HCCS No. 212/2001 and to Nile Bank in the sum of Shs 145,007,849 arising from HCCS No. 685/99. The debtor filed a statement of affairs dated 30 July 2002 verified by affidavit, declaring his inability to pay his debts. The petition was attested by an advocate and notary public, and the required deposit was made.

Issues

  1. Whether the debtor satisfied the procedural requirements for a debtor's bankruptcy petition.
  2. Whether the debtor proved his indebtedness.
  3. Whether the debtor committed an act of bankruptcy.
  4. Whether the court should exercise its discretion to stay pending court actions against the debtor.

Orders

  • Receiving order granted for the protection of the estate of the debtor, Thomas I. Katto.
  • Official Receiver constituted receiver of the estate of Thomas I. Katto.
  • Thomas I. Katto required to attend the Official Receiver at the Companies Registry in Kampala immediately after issuance of this order.
  • Application for stay of pending court actions refused.
  • Costs of the petition to be costs in the cause.

Rules and key headnotes

Bankruptcy — Debtor's Petition — Procedural Requirements
A debtor's bankruptcy petition must be accompanied by a statement of affairs verified by affidavit showing particulars of assets, debts, liabilities, creditors, their residences and occupations, and securities held, submitted not more than three days before presentation of the petition, attested by an advocate and notary public, with the required deposit made at presentation.
Bankruptcy — UK Bankruptcy Rules — Application in Uganda
The Bankruptcy Rules 1915 of the United Kingdom are applicable in Uganda by virtue of section 164 of the Bankruptcy Act and shall be construed with such verbal alterations not affecting the substance as may be necessary to render them applicable to local circumstances, including accepting deposits in Uganda shillings rather than British pounds.
Bankruptcy — Act of Bankruptcy — Debtor's Petition
The filing of a bankruptcy petition by a debtor against himself and the declaration of inability to pay debts constitute an act of bankruptcy under section 3(1)(f) of the Bankruptcy Act, and the presentation of the debtor's petition is deemed an act of bankruptcy without previous filing of a declaration of inability.
Bankruptcy — Receiving Order — Mandatory Issuance
Upon a debtor's petition alleging inability to pay debts, the court shall make a receiving order once the debtor has filed with the official receiver a statement of affairs in accordance with section 16, provided the debtor proves his indebtedness and has committed an act of bankruptcy.
Bankruptcy — Stay of Proceedings — Exercise of Discretion
The power to stay actions, executions or legal processes against a debtor under section 11 of the Bankruptcy Act is discretionary, and the petitioner must give reasons and particulars of pending proceedings to enable the court to exercise its discretion; absent such information, the court cannot grant the stay.

Legislation cited (9)

  • Bankruptcy Act Cap. 71 s.3(1)(f)
  • Bankruptcy Act Cap. 71 s.5
  • Bankruptcy Act Cap. 71 s.8
  • Bankruptcy Act Cap. 71 s.11
  • Bankruptcy Act Cap. 71 s.16
  • Bankruptcy Act Cap. 71 s.164
  • Bankruptcy Rules 1915 (UK) Rule 148
  • Bankruptcy Rules 1915 (UK) Rule 149
  • Bankruptcy Rules 1915 (UK) Rule 166(1)

Cases cited (2)

  • Ex parte Painter [1895] 1 QB 85
  • Wavamuno v Sezi Teddy Cheeye (Bankruptcy Petition No. 1195)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Re In The Matter of A Petition For A Receiving Order By Thomas.I.Katto (Bankruptcy Petition No. 13 of 2002) [2002] UGCommC 21 (10 October 2002)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.