Deeds of Arrangement Act

LAWS OF KENYA
FOR
LECRARY
0 9-0
ACC N. .
(01S- 107,
riATE REV ELI 1 '7-
The Deeds of ArrangeiZeiirXct
CHAPTER 54
Revised Edition 1982 (1962)
Printed and Published by tile G -..-vernment Printer

1S- 107,
riATE REV ELI 1 '7-
The Deeds of ArrangeiZeiirXct
CHAPTER 54
Revised Edition 1982 (1962)
Printed and Published by tile G -..-vernment Printer

h CAP. 54 Deeds of Arrangement [Rev. 1982
CHAPTER 54
THE DEEDS OF ARRANGEMENT ACT
ARRANGEMENT OF SECTIONS
Section PART I—PRELIMINARY
1—Short title. 2—Interpretation. 3—Deeds of arrangement to which Act applies. PART II—AVOIDANCE OF DEEDS OF ARRANGEMENT
WHERE STATUTORY CONDITIONS NOT
COMPLIED WITH
4—Avoidance of unregistered deeds of arrangement. 5—Avoidance of deeds of arrangement unless assented to by
majority of creditors. PART III—REGISTRATION OF DEEDS OF ARRANGEMENT
6—Registrar. 7—Mode of registration. 8—Form of register. 9—Rectification of register. 10—Time for registration. 11—Inspection of register and registered deeds. 12—Local registration of copy of deeds. PART W—PROVISIONS AS TO TRUSTEES
13—Security by trustee. 14—Penalty on trustee acting when deed of arrangement void. 15—Transmission of accounts to Official Receiver. •
16—Transmission of accounts to creditors. 17—Audit of accounts. 18—Payment of undistributed moneys into court. 19—Preferential payment to creditor an offence. 20—Power of High Court to -appoint new trustee. 21—Protection of trustees under void deeds. 22—Notice to creditors of avoidance of deed.

r an offence. 20—Power of High Court to -appoint new trustee. 21—Protection of trustees under void deeds. 22—Notice to creditors of avoidance of deed.

23—Payment of expenses incurred by trustees,
24—Application of Part. PART V—GENERAL
25—Courts in which applications for enforcement of trusts to be
made. 26—Relation to bankruptcy law. 27—Office copies. 28—Fees. 29—Rules.

RT V—GENERAL
25—Courts in which applications for enforcement of trusts to be
made. 26—Relation to bankruptcy law. 27—Office copies. 28—Fees. 29—Rules.

Rev. 1982] Deeds of Arrangement CAP; 54 3
CHAPTER 54
THE DEEDS OF ARRANGEMENT ACT
Commencement: 3rd September, 1930
An Act of Parliament to regulate deeds of arrangement
PART I—PRELIMINARY
1.. This Act may be cited as the Deeds of Arrangement
Act. 2. (1) In this Act, except where the context otherwise
requires—
"creditors generally" includes all creditors who may
assent to, or take the benefit of, a deed of arrangement;
"property" includes money, goods, things in action, land
and every description of property whether movable or
immovable and whether situated in Kenya or elsewhere; and
also obligations, easements and every description of estate,
interest and profit, present or future, vested or contingent,
arising out of or incident to property as above defined. (2) For the purpose of determining the number of
creditors for whose benefit a deed is made, any two or more
joint creditors shall be treated as a single creditor. 3.

ose of determining the number of
creditors for whose benefit a deed is made, any two or more
joint creditors shall be treated as a single creditor. 3.

(1) A deed of arrangement to which this Act applies
includes any instrument of the classes hereinafter mentioned,
whether under seal or not—
(a)made by, for or in respect of the affairs of a debtor
for the benefit of his creditors generally;
(b)made by, for or in respect of the affairs of a debtor
who was insolvent at the date of the execution of the
instrument for the benefit of any three or more of
his creditors,
otherwise than in pursuance of the law for the time being in
force relating to bankruptcy. (2) The classes of instrument hereinbefore. referred to
are—
(a)an assignment of property;
(b)a deed of or agreement for a composition; and
Cap. 31 (1948),
15 of 1961,
28 of .1961. Short title. Interpretation. 15 of 1961, Sch. Deeds of
arrangement to
which Act
applies.

r a composition; and
Cap. 31 (1948),
15 of 1961,
28 of .1961. Short title. Interpretation. 15 of 1961, Sch. Deeds of
arrangement to
which Act
applies.

4 CAP. 54 Deeds of Arrangement [Rev. 1982
(c) in cases where creditors of the debtor obtain any con-
trol over his property or business-
(i)a deed of inspectorship entered into for the
purpose of carrying on or winding up a busi-
ness;
(ii) a letter of licence authorizing the debtor or any
other person to manage, carry on, realize or
dispose of a business with a view to the payment
of debts; and
(iii) any agreement or instrument entered into for the
purpose of carrying on or winding up the
debtor's business, or authorizing the debtor or
any other person to manage, carry on, realize
or dispose of the debtor's business with a view
the payment of his debts. Avoidance of
unregistered
deeds of
arrangement. 15 of 1961, Sch. Avoidance of
deeds of
arrangement
unless assented
to by majority
of creditors. PART II—AVOIDANCE OF DEEDS OF ARRANGEMENT WHERE
STATUTORY CONDITIONS NOT COMPLIED WITH
4.

of
arrangement
unless assented
to by majority
of creditors. PART II—AVOIDANCE OF DEEDS OF ARRANGEMENT WHERE
STATUTORY CONDITIONS NOT COMPLIED WITH
4.

A deed of arrangement shall be void unless it is
registered with the Registrar under this Act within seven
clear days after the first execution thereof by the debtor
or any creditor, or, if it is executed in any place out of the
City of Nairobi, then within seven clear days after the time at
which it would, in the ordinary course of post, arrive in
Nairobi if posted within one week after the execution thereof,
and unless it is duly stamped with the proper stamp duty. 5. (1) A deed of arrangement which either is expressed
to be or is in fact for the benefit of a debtor's creditors
generally shall be void unless, before or within twenty-one
days after the registration thereof, or within such extended
time as the High Court or the court having jurisdiction in
bankruptcy in the district in which the debtor resided or
carried on business at the date of the execution of the deed
may allow, it has received the assent of a majority in number
and value of the creditors of the debtor. (2) The list of creditors annexed to the affidavit of the
debtor filed on the registration of the deed of arrangement
shall be prima facie evidence of the names of the creditors
and the amounts of their claims.

btor filed on the registration of the deed of arrangement
shall be prima facie evidence of the names of the creditors
and the amounts of their claims.

(3) The assent of a creditor for the purposes of sub-
section (1) shall be established by his executing the deed of
arrangement or sending to the trustee his assent in writing
attested by a witness, but not otherwise,

hall be established by his executing the deed of
arrangement or sending to the trustee his assent in writing
attested by a witness, but not otherwise,

Rev. 1982] Deeds of Arrangement CAP. 54 5
(4) The trustee shall file with the Registrar at the time
of the registration of a deed of arrangement, or, in the case of
a deed of arrangement assented to after registration, within
twenty-eight days after registration or within such extended
time as the High Court or the court having jurisdiction in
bankruptcy in the district in which the debtor resided or
carried on business at the date of the execution of the deed
may allow, a statutory declaration by the trustee that the
requisite majority of the creditors of the debtor have assented
to the deed of arrangement, which declaration shall, in favour
of a purchaser for value, be conclusive evidence, and, in other
cases, be prima facie evidence, of the fact declared. (5) In calculating a majority of creditors for the purposes
of this section, a creditor holding security upon the property
of the debtor shall be reckoned as a creditor only in respect of
the balance (if any) due to him after deducting the value of
that security, and creditors whose debts amount to sums not
exceeding two hundred shillings shall be reckoned in the
majority in value, but not in the majority in number.

reditors whose debts amount to sums not
exceeding two hundred shillings shall be reckoned in the
majority in value, but not in the majority in number.

PART HI—REGISTRATION OF DEEDS OF ARRANGEMENT
6. The Registrar-General shall be the Registrar of
Deeds of Arrangement for the purposes of this Act. 7. (1) The registration of a deed of arrangement under
this Act shall be effected in the manner prescribed by sub-
section (2). (2) A true copy of the deed, and of every schedule or
inventory thereto annexed, or therein referred to, shall be
presented to and filed with the Registrar within seven clear
days after the execution of the deed (in the same manner as a
bill of sale given by way of security for the payment of money
is required to be filed), together with an affidavit verifying the
time of execution, and containing a description of the resi-
dence and occupation of the debtor, and of the place or places
where his business is carried on, and an affidavit by the
debtor stating the total estimated amount of property and
liabilities included under the deed, the total amount of the
composition (if any) payable thereunder and the names and
addresses of his creditors.

and
liabilities included under the deed, the total amount of the
composition (if any) payable thereunder and the names and
addresses of his creditors.

(3) No deed shall be registered under this Act unless
the original of the deed, duly stamped with the proper stamp
duty, is produced to the Registrar, at the time of registration. Registrar. Mode of
registration. 15 of 1961, Sch.

duly stamped with the proper stamp
duty, is produced to the Registrar, at the time of registration. Registrar. Mode of
registration. 15 of 1961, Sch.

6 CAP. 54 Deeds of Arrangement [Rev. 1982
Form of
register. Rectification
of register. Time for
registration. Inspection of
register and
registered deeds. 8. The Registrar shall keep a register wherein shall be
entered, as soon as conveniently may be after the presentation
of a deed for registration, an abstract of the contents of every
deed of arrangement registered under this Act, containing
the following and any other prescribed particulars—
(a) the date of the deed;
(b)the name, address and description of the debtor, and
the place or places where his business was carried
on at the date of the execution of the deed, and the
title of the firm or firms under which the debtor
carried on business, and the name and address of the
trustee (if any) under the deed;
(c)a short statement of the nature and effect of the deed,
and of the composition in the pound payable there-
under;
(d)the date of registration;
(e)the amount of property and liabilities included under
the deed, as estimated by the debtor. 9.

d payable there-
under;
(d)the date of registration;
(e)the amount of property and liabilities included under
the deed, as estimated by the debtor. 9.

The High Court upon being satisfied that the omission
to register a deed of arrangement within the time required
by this Act or that the omission or misstatement of the name,
residence or description of any person was accidental, or was
due to inadvertence or to some cause beyond the control of
the debtor and not imputable to any negligence on his part,
may, on the application of any party interested and on such
terms and conditions as are just and expedient, extend the
time for registration, or order the omission or misstatement
to be supplied or rectified by the insertion in the register of
the true name, residence or description. 10. Where the time for registering a deed of arrange-
ment expires on a Sunday, or other day on which the registra-
tion office is closed, the registration shall be valid if made
on the next following day on which the office is open. 11.

r day on which the registra-
tion office is closed, the registration shall be valid if made
on the next following day on which the office is open. 11.

Any person shall be entitled, at all reasonable times,
to search the register on payment of one shilling, or such
other fee as may be prescribed, and, subject to such regula-
tions as may be prescribed, shall be entitled, at all reasonable
times, to inspect, examine and make extracts from any
registered deed of arrangement, without being required to
make a written application or to specify any particulars in
reference thereto, upon payment of one shilling, or such other
fee as may be prescribed, for each deed of arrangement
inspected

ify any particulars in
reference thereto, upon payment of one shilling, or such other
fee as may be prescribed, for each deed of arrangement
inspected

Rev. 19821 Deeds of Arrangement CAP. 54
Provided that the extracts shall be limited to the dates
of execution and of registration, the names, addresses and
descriptions of the debtor and of the parties to the deed, a
short statement of the nature and effect of the deed and any
other prescribed particulars. 12. (1) Where the place of business or residence of the
debtor who is one of the parties to a deed of arrangement, or
who is referred to therein, is situated in some place within an
area in respect of which a district registry of the High Court
has been established, the Registrar shall, within three clear
days after registration in the principal registry, and, in accord-
ance with the prescribed directions, transmit a copy of the
deed to the district registrar of the area in which that place
of business or residence is situated. (2) Every copy so transmitted shall be filed, kept and
indexed. by the district registrar in the prescribed manner, and
any person may search, inspect, make extracts from and
obtain copies of the registered copy in the same manner and
upon the same terms, as to payment or otherwise, as near as
may be, as in the case of deeds registered under this Act.

red copy in the same manner and
upon the same terms, as to payment or otherwise, as near as
may be, as in the case of deeds registered under this Act.

Local
registration of
copy of deeds,
PART IV—PROVISIONS AS TO TRUSTEES
13.

Local
registration of
copy of deeds,
PART IV—PROVISIONS AS TO TRUSTEES
13.

(1) The trustee under a deed of arrangement shall, Security b
within fourteen days from the date on which the statutory trustee
declaration certifying the assent of the creditors is filed, give
security in the prescribed manner to the judge or registrar of
the court having jurisdiction in bankruptcy in the district in
which the debtor resided or carried on business at the date of
the execution of the deed, in a sum equal to the estimated
assets available for distribution amongst the unsecured credi-
tors, as shown by the affidavit filed on registration to administer
the deed properly and account fully for the assets which come
to his hands, unless a majority in number and value of the
debtor's creditors, either by resolution passed at a meeting
convened by notice to all the creditors, or by writing addressed
to the trustee, dispense with his giving such security :
Provided that, when such a dispensation has been so
given, the trustee shall forthwith make and file with the
Registrar a statutory declaration to that effect, which declara-
tion shall, in favour of a purchaser for value, be conclusive
evidence, and in other cases be prima facie evidence, of the
facts declared.

ch declara-
tion shall, in favour of a purchaser for value, be conclusive
evidence, and in other cases be prima facie evidence, of the
facts declared.

8 CAP. 54 Deeds of Arrangement [Rev. 1982
(2) If a trustee under a deed of arrangement fails to
comply with the requirements of this section, the court, having
jurisdiction in bankruptcy in the district in which the debtor
resided or carried on business at the date of the execution of
the deed, on the application of any creditor and after hearing
such persons as it may think fit, may declare the deed of
arrangement to be void, or may make an order appointing
another trustee in the place of the trustee appointed by the
deed of arrangement. (3) A certificate that the security required by this section
has been given by a trustee, signed by the registrar to whom
it was given and filed with the Registrar, shall be conclusive
evidence of the fact. (4) All moneys received by a trustee under a deed of
arrangement shall be banked by him to an account to be
opened in the name of the debtor's estate.

(4) All moneys received by a trustee under a deed of
arrangement shall be banked by him to an account to be
opened in the name of the debtor's estate.

(5) In calculating a majority of creditors for the purposes
of this section, a creditor holding security upon the property
of the debtor shall be reckoned as a creditor only in respect
of the balance (if any) due to him after deducting the value
of such security, and creditors whose debts amount to–sums
not exceeding two hundred shillings shall be reckoned in the
majority in value but not in the majority in number. 14. If a trustee acts under a deed of arrangement—
(a) after if 'has to his knowledge become void by reason
of non-compliance with any of the requirements of
this Act or any enactment repealed by this Act; or
(b). after he has failed to give security within the time
and in the manner provided for by this Act or any
enactment repealed by this Act.

is Act; or
(b). after he has failed to give security within the time
and in the manner provided for by this Act or any
enactment repealed by this Act.

he shall be guilty of an offence and liable to a fine not exceed-
ing one hundred shillings for every day between the date on
which the deed became void or the expiration of the time
within which security should have been given, as the case may
be, and the last day on which he is proved to have acted as
trustee, unless he satisfies the court before which he is accused
that his contravention of the law was due to inadvertence, or_
that his action has been confined to taking such steps as were
necessary for the protection of the estate. 15. (1) Every trustee under a deed of arrangement shall,
at such times as may be prescribed; transmit to the Official
Receiver in Bankruptcy, or as he directs, an account of his
receipts and payments as trustee, in the prescribed form and
verified in the prescribed manner. Penalty on
trustee acting
when deed of
arrangement
void. 'Transmission of
accounts to
Official Receiver.

d form and
verified in the prescribed manner. Penalty on
trustee acting
when deed of
arrangement
void. 'Transmission of
accounts to
Official Receiver.

Rev. 1982] Deeds of Arrangement • CAP. 54 9
(2) If any trustee fails to transmit such account, he shall
be guilty of an offence and liable, on conviction by a sub-
ordinate court of the first class, to a fine not exceeding one
hundred shillings for each day during which the default con
tinues, . and the . High Court, for the purpose of enforcing
the provisions of subsection (1) of this section, .shall exercise,
on the application of the Official Receiver, all the powers con-
ferred on the court by subsection (2) of section 100 of the
Bankruptcy Act in cases of bankruptcy. (3) The accounts transmitted to the Official Receiver in
pursuance of this section shall be open to inspection by the
debtor or any creditor or other person interested, on payment
of the prescribed fee, and copies of or extracts from the
accounts shall, on payment of the prescribed fee, be furnished
to the debtor, the creditors or any other persons interested. (4) In this section, "trustee" includes any person
appointed to distribute a composition or to act in any fiduciary
capacity under any deed of arrangement, and "prescribed"
means prescribed by rules under the Bankruptcy Act. 16.

omposition or to act in any fiduciary
capacity under any deed of arrangement, and "prescribed"
means prescribed by rules under the Bankruptcy Act. 16.

Every trustee under a deed of arrangement shall, at. the expiration of six months from the date of the registrati6n
of the deed, and thereafter at the expiration of every subse-
quent period of six months until the estate has been finally
wound up, send to each creditor who has assented to the deed
a statement in the prescribed form of the trustee's accounts
and of the proceedings under the deed down to the date of
the statement, and shall, in his affidavit verifying his accounts
transmitted to the Official Receiver, state whether or not he
has duly sent those statements, and the dates on which the
statements were sent; and, if a trustee fails to comply with
any of the provisions of this section, the High Court may,
for the purpose of enforcing those provisions, exercise, on the
application of the Official Receiver, all the powers conferred
on the court by subsection (2) of section 100 of the Bankruptcy
Act in cases of bankruptcy. 17.

ion of the Official Receiver, all the powers conferred
on the court by subsection (2) of section 100 of the Bankruptcy
Act in cases of bankruptcy. 17.

(1) Where, in the course of administratiOn of the
estate of a debtor who has executed a deed of arrangement, or
within twelve months from the date when the final accounts
of the estate were rendered to the Official Receiver, an appli-
cation in writing is made to the Official Receiver by a majority
in number and value of the creditors who have assented to the
deed for an official audit of the trustee's accounts, the Official
Receiver may cause the trustee's accounts to be audited, and
in that case all the provisions of the Bankruptcy Act
Cap. 53. Transmission of
accounts to
creditors. Cap. 53. Audit. of
accounts. Cap. 53.

dited, and
in that case all the provisions of the Bankruptcy Act
Cap. 53. Transmission of
accounts to
creditors. Cap. 53. Audit. of
accounts. Cap. 53.

10 ' CAP. 54 Deeds of Arrangement [Rev. 1982
Payment of
undistributed
moneys into
court. Preferential
payment to
creditor an
offence. Power of
High Court
to appoint new
trustee. relating to the institution and enforcement of ari audit of the
accounts of a trustee in bankruptcy (including the provisions
as to fees) shall, with necessary modifications, apply to the
audit of the trustee's accounts, and the Official Receiver may
require production on the audit of a certificate for the taxed
costs of any advocate whose costs have been paid or charged
by the trustee, and may disallow the whole or any part or
any costs in respect of which no certificate is produced. (2) The Official Receiver may determine how and by
what parties the costs, charges and expenses of and incidental
to the audit (including any prescribed fees chargeable in
respect thereof) are to be borne, whether by the applicants or
by the trustee or out of the estate, and may, before granting
an application for an audit, require the applicants to give
security for the costs of the audit. 18.

ee or out of the estate, and may, before granting
an application for an audit, require the applicants to give
security for the costs of the audit. 18.

At any time after the expiration of two years from
the date of the registration of a deed of arrangement, the
court having jurisdiction in bankruptcy in the district in which
the debtor resided or carried on business at the date of the
execution of the deed may, on the application of the trustee
or a creditor, or on the application of the debtor, order that
all moneys representing unclaimed dividends and undis-
tributed funds then in the hands of the trustee or under his
control be paid into court or to the Official Receiver for the
credit of the Bankruptcy Estates account, as the court deems
fit. 19.

stee or under his
control be paid into court or to the Official Receiver for the
credit of the Bankruptcy Estates account, as the court deems
fit. 19.

If a trustee under a deed of arrangement pays to any
creditor out of the debtor's property a sum larger in propor-
tion to the creditor's claim than that paid to other creditors
entitled to the benefit of the deed, then, unless the deed
authorizes him to do so, or unless such payments are either
made to a creditor entitled to enforce his claim by distress or
are such as would be lawful in a bankruptcy, he shall be guilty
of an offence and liable to a fine not exceeding twenty thousand
shillings or to imprisonment for a term not exceeding two
years, or to both such fine and imprisonment. 20. (1) The High Court may, whenever it is expedient
to appoint a new trustee under a deed of arrangement and it is
found inexpedient, difficult or impracticable so to do without
the assistance of the Court, make an order for the appointment
of a new trustee; and, in particular and without prejudice
to the generality of the foregoing provision, the Court may
make an order for the appointment of a new trustee in sub-
stitution for a trustee who is convicted of felony or is a bank-
rupt.

ision, the Court may
make an order for the appointment of a new trustee in sub-
stitution for a trustee who is convicted of felony or is a bank-
rupt.

Rev. 19821 Deeds of Arrangement CAP. 54 11
(2) An order under this section, and any consequential
vesting order or conveyance, shall not operate further or other-
wise as a discharge to any former trustee than an appointment
of a new trustee under any power, for that purpose contained
in any deed of arrangement would have operated. 21. (1) Where a deed of arrangement is void by reason
that the requisite majority of creditors have not assented
thereto, or, hi the case of a deed for the benefit of three or
more creditors, by reason that the debtor was insolvent at the
time of the execution of the deed and that the'deed was not
registered as required by this Act, but is not void for any
other reason, and a receiving order is made against the
debtor upon a petition presented after the lapse of three
months from the execution of the deed, the trustee under the
deed shall not be liable to account to the trustee in the bank-
ruptcy for any dealings with or payments made out of the
debtor's property which would have been proper if the deed
had been valid, if he proves that at the time of those dealings
or payments he did not know, and had no reason to suspect,
that the deed was void.

eed
had been valid, if he proves that at the time of those dealings
or payments he did not know, and had no reason to suspect,
that the deed was void.

Protection
of trustees
under void
deeds. (2) Where a receiving order is made against a debtor
under section 102 of the Bankruptcy Act, this section shall cap. 53. apply if the receiving order was made after the lapse of three
months from the execution of the deed. 22. When a deed of arrangement is void by virtue of this
Act for any reason other than that, being for the benefit
of creditors generally, it has not been registered within the
time allowed for the purpose by this Act, the trustee shall,
as soon as practicable after he has become aware that the
deed is void, give notice in writing thereof to each creditor
whose name and address he knows, and file a copy of the
notice with the Registrar, and if he fails, so to do he shall be
guilty of an offence and liable, on conviction by a subordinate
court of the first class, to a fine not exceeding four hundred
shillings. 23. Where a deed of arrangement is avoided by reason
of the bankruptcy of the debtor, any expenses properly in-
curred by the trustee under the deed in the performance of any
of the duties imposed on him by this Act shall be allowed or
paid him by the trustee in the bankruptcy as a first charge on
the estate.

ormance of any
of the duties imposed on him by this Act shall be allowed or
paid him by the trustee in the bankruptcy as a first charge on
the estate.

Payment of
expenses
incurred by
Imam. Notice to
creditors of
avoidance of
deed.

Payment of
expenses
incurred by
Imam. Notice to
creditors of
avoidance of
deed.

12 CAP. 54 Deeds of Arrangement [Rev. 1982
Application of
Part. Courts in which
applications for
enforcement of
trusts to be
made. Relation to
bankruptcy law. 24. The provisions of this Part, except such of those pro-
visions—
(a)as relate to the transmission of accounts to the Official
Receiver of debtors' estates;
(b)as provide for the protection of trustees under void
deeds;
(c)as require a notice to be given to creditors of avoid-
ance of deeds;
(d)as provide for the payment of expenses incurred by
trustees,
shall not apply to a deed of arrangement made for the benefit
of any three or more of the debtor's Creditors unless it is in
fact for the benefit of the debtor's creditors generally. PART V--GENERAL
25. Any application by the trustee under a deed of
arrangement which either is expressed- to be or is in fact for
the benefit of the debtor's creditors generally, or by the debtor
or by any creditor entitled to the benefit of such a deed of
arrangement, for the enforcement of the trusts or the deter-
mination of questions under it shall be made to the High
Court. 26.

fit of such a deed of
arrangement, for the enforcement of the trusts or the deter-
mination of questions under it shall be made to the High
Court. 26.

(1) If the trustee under a deed of arrangement which
either is expressed to be or is in fact for the benefit of the
debtor's creditors generally serves in the prescribed manner
on any creditor of the debtor notice in writing of the execution
of the deed and of the filing of the statutory declaration certi-
fying the creditors' assents with an intimation that the creditor
will not after the expiration of two months from the service of
the notice be entitled to present a bankruptcy petition against
the debtor founded on the execution of the deed or on any
other act committed by him in the course or for the purpose
of the proceedings preliminary to the execution of the deed as
an act of bankruptcy, that creditor shall not, after the expira-
tion of that period, unless the deed becomes void, be entitled
to present a bankruptcy petition against the debtor founded
on the execution of the deed or any act so committed by him
as an act of bankruptcy.

itled
to present a bankruptcy petition against the debtor founded
on the execution of the deed or any act so committed by him
as an act of bankruptcy.

(2) Where a deed of arrangement referred to in sub-
section (1) has become void by virtue of this Act or any
enactment repealed by this Act, the fact that a creditor has
assented to the deed shall not disentitle him to present a
bankruptcy petition founded on the execution of the deed of
arrangement as an act of bankruptcy.

ted to the deed shall not disentitle him to present a
bankruptcy petition founded on the execution of the deed of
arrangement as an act of bankruptcy.

Rev. 19821 Deeds of Arrangement CAP. 54 9
(2) If any trustee fails to transmit such account, he shall
be guilty of an offence and liable, on conviction by a sub-
ordinate court of the first class, to a fine not exceeding one
hundred shillings for each day during which the default con
tinues, . and the. High Court, for the purpose of enforcing
the provisions of subsection (1) of this section, .shall exercise,
on the application of the Official Receiver, all the powers con-
ferred on the court by subsection (2) of section 100 of the
Bankruptcy Act in cases of bankruptcy. (3) The accounts transmitted to the Official Receiver in
pursuance of this section shall be open to inspection by the
debtor or any creditor or other person interested, on payment
of the prescribed fee, and copies of or extracts from the
accounts shall, on payment of the prescribed fee, be furnished
to the debtor, the creditors or any other persons interested. (4) In this section, "trustee" includes any person
appointed to distribute a composition or to act in any fiduciary
capacity under any deed of arrangement, and "prescribed"
means prescribed by rules under the Bankruptcy Act. 16.

omposition or to act in any fiduciary
capacity under any deed of arrangement, and "prescribed"
means prescribed by rules under the Bankruptcy Act. 16.

Every trustee under a deed of arrangement shall, at. the expiration of six months from the date of the registration
of the deed, and thereafter at the expiration of every subse-
quent period of six months until the estate has been finally
wound up, send to each creditor who has assented to the deed
a statement in the prescribed form of the trustee's accounts
and\ of the proceedings under the deed down to the date of
the statement, and shall, in his affidavit verifying his accounts
transmitted to the Official Receiver, state whether or not he
has duly sent those statements, and the dates on which the
statements were sent; and, if a trustee fails to comply with
any of the provisions of this section, the High Court may,
for the purpose of enforcing those provisions, exercise, on the
application of the Official Receiver, all the powers conferred
on the court by subsection (2) of section 100 of the Bankruptcy
Act in cases of bankruptcy. 17.

ion of the Official Receiver, all the powers conferred
on the court by subsection (2) of section 100 of the Bankruptcy
Act in cases of bankruptcy. 17.

(1) Where, in the course of administratiOn of the
estate of a debtor who has executed a deed of arrangement, or
within twelve months from the date when the final accounts
of the estate were rendered to the Official Receiver, an appli-
cation in writing is made to the Official Receiver by a majority
in number and value of the creditors who have assented to the
deed for an official audit of the trustee's accounts, the Official
Receiver may cause the trustee's accounts to be audited, and
in that case all the provisions of the Bankruptcy Act
Cap. 53. Transmission of
accounts to
creditors. Cap. 53. Audit of
accounts. Cap. 53.

udited, and
in that case all the provisions of the Bankruptcy Act
Cap. 53. Transmission of
accounts to
creditors. Cap. 53. Audit of
accounts. Cap. 53.

10 CAP. 54 Deeds of Arrangement [Rev. 1982
Payment of
undistributed
moneys into
court. Preferential
payment to
creditor an
offence. Power of
High Court
to appoint new
trustee. relating to the institution and enforcement of an audit of the
accounts of a trustee in bankruptcy (including the provisions
as to fees) shall, with necessary modifications, apply to the
audit of the trustee's accounts, and the Official Receiver may
require production on the audit of a certificate for the taxed
costs of any advocate whose costs have been paid or charged
by the trustee, and may disallow the whole or any part or
any costs in respect of which no certificate is produced. (2) The Official Receiver may determine how and by
what parties the costs, charges and expenses of and incidental
to the audit (including any prescribed fees chargeable in
respect thereof) are to be borne, whether by the applicants or
by the trustee or out of the estate, and may, before granting
an application for an audit, require the applicants to give
security for the costs of the audit. 18.

ee or out of the estate, and may, before granting
an application for an audit, require the applicants to give
security for the costs of the audit. 18.

At any time after the expiration of two years from
the date of the registration of a deed of arrangement, the
court having jurisdiction in bankruptcy in the district in which
the debtor resided or carried on business at the date of the
execution of the deed may, on the application of the trustee
or a creditor, or on the application of the debtor, order that
all moneys representing unclaimed dividends and undis-
tributed funds then in the hands of the trustee or under his
control be paid into court or to the Official Receiver for the
credit of the Bankruptcy Estates account, as the court deems
fit. 19.

stee or under his
control be paid into court or to the Official Receiver for the
credit of the Bankruptcy Estates account, as the court deems
fit. 19.

If a trustee under a deed of arrangement pays to any
creditor out of the debtor's property a sum larger in propor-
tion to the creditor's claim than that paid to other creditors
entitled to the benefit of the deed, then, unless the deed
authorizes him to do so, or unless such payments are either
made to a creditor entitled to enforce his claim by distress or
are such as would be lawful in a bankruptcy, he shall be guilty
of an offence and liable to a fine not exceeding twenty thousand
shillings or to imprisonment for a term not exceeding two
years, or to both such fine and imprisonment. 20. (1) The High Court may, whenever it is expedient
to appoint a new trustee under a deed of arrangement and it is
found inexpedient, difficult or impracticable so to do without
the assistance of the Court, make an order for the appointment
of a uew trustee; and, in particular and without prejlidice
to the generality of the foregoing provision, the Court may
make an order for the appointment of a new trustee in sub-
stitution for a trustee who is convicted of felony or is a bank-
rupt.

ision, the Court may
make an order for the appointment of a new trustee in sub-
stitution for a trustee who is convicted of felony or is a bank-
rupt.

Rev. 19821 Deeds of Arrangement CAP. 54 11
(2) An order under this section, and any consequential
vesting order or conveyance, shall not operate further or other-
wise as a discharge to any former trustee than an appointment
of a new trustee under any power, for that purpose contained
in any deed of arrangement 'would have operated. 21. (1) Where a deed of arrangement is void by reason
that the requisite majority of creditors have not assented
thereto, or, in the case of a deed for the benefit of three or
more creditors, by reason that the debtor was insolvent at the
time of the execution of the deed and that the deed was not
registered as required by this Act, but is not void for any
other reason, and a receiving order is made against the
debtor upon a petition presented after the lapse of three
months from the execution of the deed, the trustee under the
deed shall not be liable to account to the trustee in the bank-
ruptcy for any dealings with or payments made out of the
debtor's property which would have been proper if the deed
had been valid, if he proves that at the time of those dealings
or payments he did not know, and had no reason to suspect,
that the deed was void.

eed
had been valid, if he proves that at the time of those dealings
or payments he did not know, and had no reason to suspect,
that the deed was void.

(2) Where a receiving order is made against a debtor
under section 102 of the Banlcruptcy Act, this section shall cap. 53. apply if the receiving order was made after the lapse of three
months from the execution of the deed. 22. When a deed of arrangement is void by virtue of this
Act for any reason other than that, being for the benefit
of creditors generally, it has not been registered within the
time allowed for the purpose by this Act, the trustee shall,
as soon as practicable after he has become aware that the
deed is void, give notice in writing thereof to each creditor
whose name and address he knows, and file a copy of the
notice with the Registrar, and if he fails, so to do he shall be
guilty of an offence and liable, on conviction by a subordinate
court of the first class, to a fine not exceeding four hundred
shillings. 23. Where a deed of arrangement is avoided by reason Payment of
of the bankruptcy of the debtor, any expenses properly in- exPensesincurred by
curred by the trustee under the deed in the performance of any trustees. of the .duties imposed on him by this Act shall be allowed or
paid him by the trustee in the bankruptcy as a first charge on
the estate.

any trustees. of the .duties imposed on him by this Act shall be allowed or
paid him by the trustee in the bankruptcy as a first charge on
the estate.

Protection
of trustees
under void
deeds. Notice to
creditors of
avoidance of
deed.

Protection
of trustees
under void
deeds. Notice to
creditors of
avoidance of
deed.

12 CAP. 54 Deeds of Arrangement [Rev. 1982
24. The provisions of this Part, except such of those pro-
visions—
(a)as relate to the transmission of accounts to the Official
Receiver of debtors' estates;
(b)as provide for the protection of trustees under void
deeds;
(c)as require a notice to be given to creditors of avoid-
ance of deeds;
(d)as • provide for the payment of expenses incurred by
trustees,
shall not apply to a deed of arrangement made for the benefit
of any three or more of the debtor's creditors unless it is in
fact for the benefit of the debtor's creditors generally. Application of
Part. Courts in which
applications for
enforcement of
trusts to be
made. Relation to
bankruptcy law. PART V--GENERAL
25. Any application by the trustee under a deed of
arrangement which either is expressed to be or is in fact for
the benefit of the debtor's creditors generally, or by the debtor
or by any creditor entitled to the benefit of such a deed of
arrangement, for the enforcement of the trusts or the deter-
mination of questions under it shall be made to the High. Court. 26.

it of such a deed of
arrangement, for the enforcement of the trusts or the deter-
mination of questions under it shall be made to the High. Court. 26.

(1) If the trustee under a deed of arrangement which
either is expressed to be or is in fact for the benefit of the
debtor's creditors generally serves in the prescribed manner
on any creditor of the debtor notice in writing of the execution
of the deed and of the filing of the statutory declaration certi-
fying the creditors' assents with an intimation that the creditor
will not after the expiration of two months from the service of
the notice be entitled to present a bankruptcy petition against
the debtor founded on the execution of the deed or on any
other act committed by him in the course or for the purpose
of the proceedings preliminary to the execution of the deed as
an act of bankruptcy, that creditor shall not, after the expira-
tion of that period, unless the deed becomes void, be entitled
to present a bankruptcy petition against the debtor founded
on the execution of the deed or any act so committed by him
as an act of bankruptcy.

itled
to present a bankruptcy petition against the debtor founded
on the execution of the deed or any act so committed by him
as an act of bankruptcy.

(2) Where a deed of arrangement referred to in sub-
section (1) has become void by virtue of this Act or any
enactment repealed by this Act, the fact that a creditor has
assented to the deed shall not disentitle him to ptesent a
bankruptcy petition founded on the execution of the deed of
arrangement as an act of bankruptcy.

ted to the deed shall not disentitle him to ptesent a
bankruptcy petition founded on the execution of the deed of
arrangement as an act of bankruptcy.

Rev. 1982] Deeds of Arrangement CAP. 54 13
(3) Save as otherwise expressly provided by this Act,
nothing in this Act shall be construed as repealing or shall
affect any provision of the law for the time 'being in farce
in relation to bankruptcy or shall give validity to any deed
or instrument which by law is an act of bankruptcy or void
or voidable. 27. Subject to the provisions of this Act, and tO any
rules made thereunder, any person shall be entitled to have
an office copy of, or extract from, any deed registered under
this Act upon paying the prescribed fees, and any such copy
or extract shall, in all courts and before all arbitrators or other
persons, be admitted as prima facie evidence thereof, and of
the fact and date of registration as shown thereon. 28, There shall be taken, in respect of the registration Fees. of deeds of arrangement, and in respect of any copies or
extracts or official searches made by the Registrar, such fees
as may be from time to time prescribed; and nothing in this
Act contained shall make it obligatory on the Registrar to
do, or permit to be done, any act in respect of which any fee
is specified or prescribed, except on payment of that fee. 29.

atory on the Registrar to
do, or permit to be done, any act in respect of which any fee
is specified or prescribed, except on payment of that fee. 29.

The Chief Justice may make rules for carrying into Rules. effect the objects of this Act. 28 of 1961, Sch. Office copies.

The Chief Justice may make rules for carrying into Rules. effect the objects of this Act. 28 of 1961, Sch. Office copies.

Rev. 19821 Deeds of Arrangement CAP. 54 15
[Subsidiary]
SUBSIDIARY LEGISLATION
Rules under section 29
THE DEEDS OF ARRANGEMENT RULES S ap .,
(1948),
. L.N. 336/1957. PART I
1. These Rules may be cited as the Deeds of Arrangement Rules. Short title. 2. In these Rules, except where the context or subject-matter Interpretation. otherwise requires—
"debtor" means any person by or for whom, or in respect of
whose 'affairs, a deed of arrangement as defined by the Act shall be
made or entered into, and includes a firm of persons in co-partnership;
"deed" means any deed of arrangement as defined by the Act;
"Registrar of the court" includes a District or Deputy Registrar
of the court having jurisdiction under the Act;
"Registrar" means the Registrar of Deeds of Arrangement con-
stituted by the Act;
3. (1) The forms in the Schedule or forms of a similar character
with such variations as circumstances may require shall be used. (2) The Chief Justice may from time to time alter any of the
forms in the Schedule or substitute new forms in lieu thereof; and
any forms so altered or substituted shall be published in the . Gazette. PART II—REGISTRATION OF DEEDS
4.

or substitute new forms in lieu thereof; and
any forms so altered or substituted shall be published in the . Gazette. PART II—REGISTRATION OF DEEDS
4.

Affidavits made pursuant to section 7 of the Act shall be Affidavits. filed with the Registrar. Forms 4, 5, 6. 5. Upon every copy of a deed which is presented for filing there Endorsement
shall be endorsed, by the person who presents it, the name of the on copy a
debtor, the date of the deed and of the filing thereof, the total amount deed for filing. of duty with which the deed is stamped and a certificate signed by the
debtor or his advocate or the person who presents the copy for filing
that the copy is a true copy of the deed. 6. An assignment of property by a debtor to a trustee or assignee
for the benefit of his creditors shall not be registered under the Act
unless it appears from the assignment that it has been or purports
to have been executed, or (if not made by deed) signed by the trustee
or assignee; and the Registrar shall before registering the assignment
satisfy himself that the assignment purports to have been duly executed
or signed as the case may be by the trustee or assignee thereunder. 7.

ignment
satisfy himself that the assignment purports to have been duly executed
or signed as the case may be by the trustee or assignee thereunder. 7.

When a deed is registered under the Act there shall be
written on the original deed a certificate that the deed has been duly
registered as prescribed by the Act, and the date of registration;
and the certificate shall be sealed with' the seal of the Registrar. Forms. Exec/,ticn of
deed by trustee
prior to
registration. Certificate of
registration
on original
deed.

l be sealed with' the seal of the Registrar. Forms. Exec/,ticn of
deed by trustee
prior to
registration. Certificate of
registration
on original
deed.

Extracts from
filed copy
, of deed. Search and
inspection
in court. Endorsement
to be made on
copies trans-
mittq to
District
Registries. transmission
of copy by post. Copies to be
numbered
and filed. Extra copies
of deed to be
furnished in
certain cases. Index to be
kept. Certified copies
and searches. 16 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
SEARCHES AND EXTRACTS
8. Extracts from the filed copy of a deed shall be limited to the
date of execution and registration, the names, addresses and descrip-
tions of the debtor and other parties to the deed and a short statement
of the nature and effect of the deed. 9. (1) The Registrar of the court shall permit inspecti of the
index kept by him at all times during court office hours and \ taking
of such extracts as are permitted by rule 8 upon payment of the
prescribed fee. (2) He shall also cause certified or uncertified copies to be made
of any copy of a deed filed in his office as required, and shall issue
the same upon payment of the prescribed fee. TRANSMISSION •OF COPIES TO DISTRICT REGISTRIES OR OTHER
COURTS
10.

is office as required, and shall issue
the same upon payment of the prescribed fee. TRANSMISSION •OF COPIES TO DISTRICT REGISTRIES OR OTHER
COURTS
10.

Upon every copy of a deed which pursuant to the Act
is transmitted to any District Registry of the High Court or to
any other court, there shall be written copies of every endorsement or
certificate written on the original deed or on the filed copy thereof;
and the copies shall be signed by the Registrar or by some' other
person duly authorized by him. 11. Copies of deeds required to be transmitted to any District
Registry or other court may be sent by registered letter post. 12. The Registrar of the court shall number the copies of deeds
received by him in the order in which they are received, and shall
file and keep them in his office. 13. Where a debtor has a place of business or residence in Some
place within the area of a District Registry, there shall be furnished
to the Registrar sufficient copies of the deed to enable him to transmit
one to the District Registry of each area in which the place of
business or residence is situated. 14.

nt copies of the deed to enable him to transmit
one to the District Registry of each area in which the place of
business or residence is situated. 14.

The Registrar of the court shall keep an index, alphabetically
arranged, in which he shall enter, under the first letter of the surname
of the debtor, the surname, with his christian name, or such other
name as he may have, address and description, and the number which
has been affixed to the copy. 15. The provisions of sections 11 and 27 of the Act shall apply
to all documents filed with the Registrar pursuant to the Act or
these Rules. PART III—PROCEDURE
Applications, 16. All applications other than applications under section 9 of thehow to be made. Act which by the Act or these Rules are directed or allowed to be
made to the High Court shall be deemed to be proceedings in bank-
ruptcy, and subject to the Act and these Rules shall be made in
accordance with and in the manner prescribed for proceedings under
Cap. 53. the Bankruptcy Act and the Bankruptcy Rules, with such variations
as the circumstances may require, and shall be supported by affidavit:

nder
Cap. 53. the Bankruptcy Act and the Bankruptcy Rules, with such variations
as the circumstances may require, and shall be supported by affidavit:

Rev. 1982] Deeds of Arrangement CAP. 54 17
[Subsidiary]
Provided that applications for extension of time for procuring
the assent of creditors to a deed under subsection (1) of section 5 of
the Act or for filing the statutory declaration•required by subsection
(4) of section 5 of the Act may be made ex. -rte and shall be
supported by affidavit unless the court shall in any case otherwise
order. 17. (1) The application, together with the affidavit in support,
shall be filed with the Registrar of the court, who shall appoint a day
for the hearing of the application not earlier than fourteen days from
the date of such filing. (2) The Registrar of the court may direct notice - of the applica-
tion to be served on such person or persons as he thinks fit, but in the
absence of any such direction the notice, together with copies of the
affidavits in support, shall be served, when the application is made by
the trustee, on the debtor and on any creditor or other person to be
affected thereby, and, when made by the debtor, on the trustee and on
any creditor or other person to be affected thereby, and, when made
by a creditor, on the trustee and the debtor. 18.

he debtor, on the trustee and on
any creditor or other person to be affected thereby, and, when made
by a creditor, on the trustee and the debtor. 18.

Evidence to be used on the application shall, unless the court Evidence. otherwise orders, be given by affidavit, but any party opposing the
application may, by notice in writing addressed to any deponent or
his advocate, require the attendance of the deponent for cross-
examination; and a copy of every such notice shall be filed with the
Registrar of the court. 19. Affidavits intended to be used by any party to such applica-
tion, other than the applicant, shall be filed in the court, .and copies
served on the applicant not less than four days before the day
appointed for the hearing of the 'application. 20. All applications referred to in the preceding rules shall be
heard and determined in chambers, but a judge may in any case
adjourn the application to be heard and determined in court. 21. Notice of any application under subsection (2) of section 13
of the Act to declare a deed void, or to appoint another trustee,
shall be served on the trustee named in the deed not less than eight
days before the day appointed for the hearing. 22.

or to appoint another trustee,
shall be served on the trustee named in the deed not less than eight
days before the day appointed for the hearing. 22.

If a trustee fails to pay to a guarantee society or insurance
company, party to a bond given by him under rule 23, the annual
premium payable by him within fourteen days of the date when
the premium becomes payable, or if the society or insurance com-
pany refuses to accept the premium, the society or insurance company
may apply to the Registrar of the court to determine its liability
under the bond and the Registrar of the court, if satisfied by affidavit
that default in payment of the premium has been made by the
trustee, or that the refusal of the society or insurance company to
accept the premium in order that its liability may be determined—is-
reasonable, may order that, as from the date of expiratiOn of the year
for which the last premium was paid, or as from the date of the order,
whichever may be the later date, all further liability of the society or
insurance company shall cease and determine save and except in
respect of any loss or damage occasioned by any act or default of
Applications,
to whom to
be made. Affidavits by
parties other
than applicant. Chambers and
adjournment
to court. Service of
application
under section
13 (2).

tions,
to whom to
be made. Affidavits by
parties other
than applicant. Chambers and
adjournment
to court. Service of
application
under section
13 (2).

Application
to determine
liability on
bond.

Application
to determine
liability on
bond.

18 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
the trustee in relation to his duties as trustee previously to the cesser
and determination of liability, and the Registrar of the court may
exercise any of the powers conferred by subsection (2) of section 13
of the Act. Procedure
on application
under section
13 (2). 23. Notice of any application under rule 22 shall be served on
the three largest creditors named in the affidavit filed on registration
of the deed not less than eight days before the day appointed for
hearing the application, and any creditor may appear and be heard
thereon, and rules' 16 to 20 inclusive shall, so far as applicable, be
observed. PART IV—TRusTEEs
24. (1) The security to be given by the trustee under a deed of
arrangement pursuant to subsection (1) of section 13 of the Act
sha') be by bond of a guarantee society or insurance company. (2) The Registrar of the court shall have an absolute discretion
as to acceptance or refusal of the bond of any guarantee society or
insurance company tendered to him. (3) Pending the preparation of the bond, a cover note of an
Form 10. acceptable guarantee society or insurance company in the prescribed .

red to him. (3) Pending the preparation of the bond, a cover note of an
Form 10. acceptable guarantee society or insurance company in the prescribed .

form shall be accepted by the Registrar of the court as temporary
security. 25. The trustee, on giving security for the due administration of
the deed and for accounting fully for the assets pursuant to subsection
(1) of section 13 of the Act, shall produce and hand to the Registrar
of the court to whom the security is to be given a copy, certified
by him, of the affidavit of the debtor filed on the registration of the
deed, and the Registrar of the court shall file the certified copy. 26. When security has been given by a trustee pursuant to sub-
section (1) of section 13 of the Act, the Registrar of the court
to whom it is given shall, within three days after receipt thereof,
send to the Registrar a certificate signed by him that security has been
given and the Registrar shall forthwith file it; and the Registrar of
the court shall also send to the Registrar within three days after any
order made under subsection (2) of section 13 of the Act has been
drawn up a copy of the order. Notice by new
trustee of
appointment. Notice to
creditor of
execution of
deed, etc. Form 14. Forms 2, 3. 27.

ct has been
drawn up a copy of the order. Notice by new
trustee of
appointment. Notice to
creditor of
execution of
deed, etc. Form 14. Forms 2, 3. 27.

A trustete of a deed appointed in place of an original trustee
shall forthwith send to the Registrar notice of his appointment, giv-
ing his full name and address, and showing how and when the appoint-
ment was made, and the Registrar shall forthwith file the notice. 28. Notice under subsection (1) of section 26 of the Act to
a creditor of the execution of a deed and of the filing of the certifi-
cate of the assents of creditors thereto shall be sent by prepaid
registered post addressed to the creditor at the address mentioned in
the affidavit of the debtor filed on registration of the deed, and ser-
vice shall be deemed to have been made - on the day on which the
notice was posted. Security by
trustee. Form 9. Copy of
affidavit of
debtor to be
filed on giving
security. Certificate that
security given to
be sent to
Registrar. Forms 11, 12.

by
trustee. Form 9. Copy of
affidavit of
debtor to be
filed on giving
security. Certificate that
security given to
be sent to
Registrar. Forms 11, 12.

Rev. 1982] Deeds of Arrangement CAP. 54 19
29. Where the Official Receiver in Bankruptcy causes a trustee's
accounts to be audited, the trustee shall, within seven days of service
upon him by registered post of an order made by the Official Receiver
directing him so to do, deliver to the Official Receiver copies of all
accounts transmitted by him to the Official Receiver pursuant to sec-
tion 15 of the Act, together with an account in similar form from
the date to which the last account extended to the date of the order;
and the copies and account shall be accompanied by an affidavit of
the trustee verifying them. 30. (1) The account as audited by the Registrar together with his
certificate or observations thereon shall be filed and kept by the
Official Receiver, and shall be open to the inspection of any creditor
or of the trustee, who shall be at liberty to take a copy of the certifi-
cate or observations. (2) A certified copy of the certificate or observations shall be
supplied to the trustee or to any creditor on application. PART V-ACCOUNTS
31.

tions. (2) A certified copy of the certificate or observations shall be
supplied to the trustee or to any creditor on application. PART V-ACCOUNTS
31.

(1) In the case of any deed executed by the debtor after the
1st January in any year, the first account shall commence at the date
of execution of the deed and be brought down to the 31st December
next following the date thereof, and shall be transmitted within thirty
days, and thereafter each succeeding account shall be for the year
from the 1st January to the 31st December in each year, unless the
estate is wound up prior to the 31st December, when the account
shall run from the previous 1st January in that year to the date of
closing the account:
Provided that, in the case_of any deed executed on or after the
1st October in any year, the account shall be filed not later than the
31st December in the following year. (2) Each account transmitted under this rule shall be verified by Form 16. affidavit. (3) The trustee shall pay the prescribed fee to the Official Receiver
at the time when he transmits his account. [Subsidiary]
Audit of
trustee's
accounts. Certificate
of audit. Transmission
of accounts. Form 15. 32. Each receipt and payment shall be entered in such a manner
as sufficiently to explain its nature. 33.

of audit. Transmission
of accounts. Form 15. 32. Each receipt and payment shall be entered in such a manner
as sufficiently to explain its nature. 33.

When the trustee carries on a business, a trading account shall
be forwarded as a distinct account, and the total of receipts and pay-
ments on the trading account shall alone be set out in the yearly
account. 34. All accounts shall be prepared on paper of such type as may
be prescribed by the Registrar. 35. Petty expenses shall be entered in accounts in sufficient detail
to show that no estimated charges are made. 36. Where property has been realized, the gross proceeds of sale
4 shall be entered as a receipt and the necessary disbursements and
charges shall be entered as payments. MI
Receipts and
payments. Trading
account. Form 17. Accounts, size
of paper. Petty expenses. Realizations.

s and
charges shall be entered as payments. MI
Receipts and
payments. Trading
account. Form 17. Accounts, size
of paper. Petty expenses. Realizations.

20 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
Dividends. 37. Where dividends or instalments of a composition are dis-
tributed under the deed, the total amount of each dividend or instal-
ment shall be entered in the trustee's accounts as one sum, and the
trustee shall forward to the Official Receiver—
(a) with each account in which a charge in respect of dividend or
Form 18. composition appears a statement showing the amount of the
claim of each creditor and the amount of dividend or com-
position payable to each creditor, distinguishing in the state-
ment the dividends or instalments paid and those remaining
unpaid; and
(b) with his final account a complete statement in similar form
showing the amount of the claim and the full amount of
dividend or composition paid to or reserved for each creditor. 38. Where the deed has been granted by a firm of debtors in
partnership, distinct accounts shall be transmitted of the joint estate
and of each partner's estate. 39.

eed has been granted by a firm of debtors in
partnership, distinct accounts shall be transmitted of the joint estate
and of each partner's estate. 39.

Where it appears to the Official Receiver that the account
transmitted by a trustee under a deed of arrangement is incomplete,
or requires amendment or explanation, the Official Receiver may
require the account to be completed or amended, or require the
trustee to furnish explanations with reference to any of the entries
appearing therein; and any such requirement by the Official Receiver
may be enforced in the same manner as the transmission of accounts
under section 15 of the Act. 40. Where a trustee has not since the date of his becoming
trustee, or since' the last time that his accounts have been transmitted,
as the case may be, received or paid any money on account of the
debtor's estate, he shall, at the period when he is required to transmit
his accounts to the Official Receiver, forward to the Official Receiver
an affidavit of no receipts or payments. 41.

d when he is required to transmit
his accounts to the Official Receiver, forward to the Official Receiver
an affidavit of no receipts or payments. 41.

As soon as a trustee has realized all the property -comprised
in a deed, or so much thereof as can be realized without unduly pro-
tracting the trusteeship, and has distributed a final dividend, or final
instalment of composition, or in any other case as soon as the trusts
of the deed and the obligations of the trustee have been completely
fulfilled, the trustee shall forthwith transmit his final account together
with an affidavit verifying it
42. In any case in which it appears to the Official Receiver
that an account of receipts and payments in the form and containing
the particulars specified in these Rules may for special reasons be dis-
pensed with, the Official Receiver may direct the trustee to transmit,
instead of accounts in the form therein specified, such a summary of
his accounts or modified statement of accounts as to the Official
Receiver appears sufficient. Partnership
accounts. Imperfect
accounts. Affidavit of
no receipts
or payments. Affidavit
verifying final
account. Form 19. Summary of
accounts or
modified forms
of account in
particular
cases. Swearing
affidavits
respecting
accounts. 43.

t
verifying final
account. Form 19. Summary of
accounts or
modified forms
of account in
particular
cases. Swearing
affidavits
respecting
accounts. 43.

Affidavits required by or made in pursuance of section 15
of the Act, or these Rules, shall be sworn before a commissioner
for oaths, a justice of the peace of the Registrar of the court, and
may, if sworn in any place outside Kenya, be sworn before any person
having authority to administer an oath in that place.

Registrar of the court, and
may, if sworn in any place outside Kenya, be sworn before any person
having authority to administer an oath in that place.

Rev. 1982] Deeds of Arrangement CAP. 54 21
(Subsidiary'
PART VI—FEES . 44. The fees payable under these Rules shall be those specified Fees. in the Second Schedule. FIRST SCHEDULE (r. 3)
FORMS
List of Forms
No. 1. General Title. 2. Assent of Creditor to Deed. 3. Statutory Declaration by Trustee as to Assents of Creditors. 4. Affidavit of Execution by Debtor. 5. Affidavit of Execution where Deed is First Executed by a
Creditor. 6. Debtor's Affidavit, with Schedule of Creditors. 7. Form of Register to be kept by Registrar. 8. Statutory Declaration by Trustee that Creditors have Dispensed
with Security. 9. Security by Trustee: Form of Bond. 10. Security by Trustee: Cover Note. 11. Certificate by Registrar of the Court that Security has been given
by Trustee. 12. Order Declaring Deed Void or Appointing new Trustee. 13. Statement of Accounts to be sent to Creditors pursuant to
section 16. 14. Notice to Creditors by Trustee under section 26 (1). 15. Trustee's Account of Receipts and Payments. 16. Affidavit Verifying Trustee's Account
17. Trustee's Trading Account. 18. List of Dividends or Compositions. 19. Affidavit Verifying Trustee's Final Account. FoRM No.

ying Trustee's Account
17. Trustee's Trading Account. 18. List of Dividends or Compositions. 19. Affidavit Verifying Trustee's Final Account. FoRM No.

1
GENERAL TITLE
IN the Matter of a Deed of Arrangement between (a) Add
, of , (a) and his creditors, description. dated the day of , 19.. AI (b) Strike out
wi words in
[, and registered under the Deeds of Arrangement Act on the brackets if
day a , 19....]. deed has not
Trustee: A.B. been alreadyofregistered. FoRM No. 2
ASSENT OF CREDITOR TO DEED
[Title]
I [We], being a creditor [creditors] of
for Sh. , hereby assent to the above-mentioned Deed of
Arrangement. Dated this day of , 19.... Signature, address, and description [Signed]
of witness to creditor's signature.

o the above-mentioned Deed of
Arrangement. Dated this day of , 19.... Signature, address, and description [Signed]
of witness to creditor's signature.

22 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
FORM No. 3
STATUTORY DECLARATION BY TRUSTEE TO BE FILED WITH REGISTRAR
AS TO ASSENTS OF CREDITORS
[Title]
, of , being
the trustee under the above-mentioned Deed of Arrangement, do
solemnly and sincerely declare that the requisite majority in number
and value of the creditors of the said , so far as
the same are known to me, have assented to the said Deed of Arrange-
ment, and I make this solemn declaration conscientiously believing
the same to be true and according to the Oaths and Statutory Declara-
tions Act. Declared at, etc. Foam No. 4
AFFIDAVIT OF EXECUTION BY DEBTOR
[Title]
, of
make oath and say as follows:—
1. The document hereto annexed marked "A" is a true copy
(a) State of a Deed of (a) and of every Schedule or
whether deed
of assignment Inventory thereto annexed or therein referred to, and of every attesta-
of property ;
deed of or tion of the execution thereof. agreement for
a composition ;
a deed of . 2. The Deed was executed on the day
inspectorship ;
a letter of of , 19...., by , the debtor, at
licence ; or an
agreement to o'clock in the noon.

f . 2. The Deed was executed on the day
inspectorship ;
a letter of of , 19...., by , the debtor, at
licence ; or an
agreement to o'clock in the noon.

I was present when the debtor
carry on or
wind up debtor's executed the said Deed, and saw him execute it. business. (b) Insert name, 3. The said (b) resides
residence and
occupation of at , and is a
debtor. 4. The place [places] where the business of the said
is carried on is [are] as follows
(c) State also (c)
in what other
names (if any) Sworn at, etc. debtor carried
on business.

the business of the said
is carried on is [are] as follows
(c) State also (c)
in what other
names (if any) Sworn at, etc. debtor carried
on business.

Rev. 1982] Deeds of Arrangement CAP. 54 23
[Subsidiary]
FORM No. 5
AFFIDAVIT OF EXECUTION WHERE DEED IS FIRST EXECUTED
BY A CREDITOR
[Title]
1, , of
make oath and say as follows:—
1. The document hereto annexed marked "A" is a true copy of
a Deed of (a) and of every Schedule or Inventory (a) State whether
deed of
assignment
thereto annexed or therein referred to. of property ;
deed of or
agreement for
a composition ;
a deed of
inspectorship ;
a letter of
licence ; or an
agreement to
carry on or
wind up debtor's
business.
2. The Deed was first executed by (b)
a creditor, who resides at , and is a
, on the day of
19...., at o'clock in the noon. I was present
when the said executed the said
Deed, and saw him execute it.
3. The debtor (c), , resides
at , and is a
(b) Insert name,
residence and
occupation of
creditor.
(c) Insert name,
residence and
occupation of
debtor.
4. The place [places] where business of the said debtor is carried
on is [are] as follows (d) (d) State also
in what other
names (if any)
Sworn at, etc, debtor carries
on business.

siness of the said debtor is carried
on is [are] as follows (d) (d) State also
in what other
names (if any)
Sworn at, etc, debtor carries
on business.

24 CAP. 54 Deeds of Arrangement [Rev. 1982
(Subsidiary]
(a) State whether
deed of
assignment
of property ;
deed of or
agreement for
a composition ;
a deed of
inspectorship ;
a letter of
licence ; or an
agreement to
carry on or
wind up debtor's
business. FORM No. 6
DEBTOR'S AFFIDAVIT
[Title]
, of
make oath and say as follows:—
1. That on the day of
19...., I executed a Deed of (a)
2. The total estimated amount of my property included under the
Deed is Sh. , and the net amount of my property included
under the Deed after deducting Sh. , being the value (4) of
securities held by creditors, and required to cover debts due to them,
is Sh. 3. The total estimated amount of my liabilities included under
the Deed is Sh. , and the net amount of my liabilities . included under the Deed after deducting Sh. , being the (c)
amount covered by securities held by creditors, is Sh. 4. (d) The total amount of the composition payable thereunder
is Sh. 5. The names of my creditors under the Deed with their full
postal addresses (so far as the same are known to me) and the amount
of debt due to or claimed by each of such creditors are contained in
the Schedule to this my Affidavit. Sworn at, etc.

are known to me) and the amount
of debt due to or claimed by each of such creditors are contained in
the Schedule to this my Affidavit. Sworn at, etc.

(b) The
estimated
surplus (if any)
from securities
held by creditors
should not be
deducted from
the gross amount
of property. (c) This amount
must correspond
with the amount
of securities
deducted above. No deduction
should be made
in respect of
the unsecured
balances of
partially
secured debts. (d) If there is
no composition
payable, strike
this clause out.

Amount of debt due to or
claimed by each creditor
• after deducting value of
securities held by the
creditor
. Names of creditors Full postal addresses
Rev. 19821 Deeds of Arrangement CAP. 54 25
[Subsidiary]
FORM No. 6—(Contd.)
SCHEDULE

s held by the
creditor
. Names of creditors Full postal addresses
Rev. 19821 Deeds of Arrangement CAP. 54 25
[Subsidiary]
FORM No. 6—(Contd.)
SCHEDULE

26 CAP. 54 Deeds of Arrangement fRev. 1982
[Subsidiary]
sxuvpiall
l'i.0
APPOINTMENT
OF
NEWTRUSTEE 1uutultmodds jo ora
• popqoddu tuoqm Ag
omuttn moll JO ssoappe pue oureN
AVOIDANCE
OF
DEED
loy -ii jo •(j
JO ZZ 's aapun aulsrul Aq oopou Jo Ma
13V 'V Jo 'fa
JO (z) Et 's aopun panda jo Jape, jo oleo
SECU RITY uoDesuodsw JO uopurpop JO olua
apsoggiao Jo mu
sJompan jo Aq.lofetu Aq mossy jo uope.repop jo mu
uorpgsgtoi Jo ma
poop jo oreu
P.g
00I e,
AMOUNTOF
LIABILITIES AS
ESTIMATED
BY DEBTOR solququll jo unto= IoN
sommoos Aq polo/too slqop jo mummy
sopmqgq jo lunoun? ssoup
AMOUNTOF
PROPERTY AS
ESTIMATED•
BYDEBTOR Apodold jo omen lox
srqd.ms polutunso
Auu Swim-pug uoniS summon jo otquA
Avadaul jo lunotus swap
(Aur j!) oolsnx$ Jo ssoappr pub otueN
ssoupnq
uo paiuro JoKap gam. Japun swig io wag Jo opa
uopduosaQ
uo pop= ssoupnq =gm SODEId SO ootqd
snippy
iolqup jo otuum
•orq

$ Jo ssoappr pub otueN
ssoupnq
uo paiuro JoKap gam. Japun swig io wag Jo opa
uopduosaQ
uo pop= ssoupnq =gm SODEId SO ootqd
snippy
iolqup jo otuum
•orq

Rev. 19821 Deeds of Arrangement CAP. 54 27
[Subsidiary]
FORM No. 8
STATUTORY DECLARATION BY TRUSTEE TO BE FILED WITH REGISTRAR
THAT CREDITORS HAVE DISPENSED WITH HIS GIVING SECURITY
[Title]
, of
being the trustee under the above-mentioned Deed of Arrangement,
do solemnly and sincerely declare that the requisite majority in num-
ber and value of the creditors of , so far as the same are
known to me, by resolution passed at a meeting convened by notice
to all the creditors and duly held on the day of
, 19.... [or by writing addressed to mei, dispensed
with my giving the security directed to be given by section 13 (1) of
the Deeds of Arrangement Act. And I make this solemn declara-
tion conscientiously believing the same to be true and according to
the Oaths and Statutory Declarations Act. Declared at, etc. FORM No. 9
SECURITY BY TRUSTEE UNDER SECTION 13 (1) OF THE ACT
No. Amount of guarantee: Sh. Annual Premium: Sh.

ry Declarations Act. Declared at, etc. FORM No. 9
SECURITY BY TRUSTEE UNDER SECTION 13 (1) OF THE ACT
No. Amount of guarantee: Sh. Annual Premium: Sh.

KNOW ALL MEN by these presents, that we [trustee] and the
[a guarantee society or insurance company] (hereinafter called the said
Society [Insurance Company]) are jointly and severally held and
firmly bound to their Lordships and the Chief Justice and Judges of the
High Court of Kenya in the sum of Sh. , to be paid to
the said Court, for which payment to be made I, the said
, for myself and my heirs, executors and
administrators, and we, the said Society. [Insurance Company], for
ourselves and our successors, jointly and severally bind ourselves
firmly by these presents. Sealed with our seitls, and dated this day of
, 19.... WHEREAS on the
, of
Arrangement for the benefit
was duly registered on the
19
And whereas the said (hereinafter
called the said trustee) is the trustee under the aforesaid Deed of
Arrangement ; and whereas the estimated assets available for distribu-
tion among the unsecured creditors, as shown by the affidavit filed
on registration of the Deed, amount to the sum of Sh.

sets available for distribu-
tion among the unsecured creditors, as shown by the affidavit filed
on registration of the Deed, amount to the sum of Sh.

Now, therefore, the condition of this Bond or Obligation is such that
if the said trustee shall administer the Trust Deed properly and
account fully for the assets which come to his hands, and shall and do
from time to time well and sufficiently perform and execute all and
day of , 19....,
, executed a Deed of
of his [or her or their] creditors, which
day of

time to time well and sufficiently perform and execute all and
day of , 19....,
, executed a Deed of
of his [or her or their] creditors, which
day of

28 CAP. 54 Deeds of Arrangement 1082
[Subsidiary]
FORM No. 9—(Contd.)
singular the duties required of him under the Deed of Arrangement , of
which he is trustee, and by any Statutes and Rules relating to such
trusteeship, or if the said trustee shall fail therein and the said Society
[Insurance Company] shall make good any loss or damage occasioned
by any such default made on or after the date hereof to the estate
of the said debtor to the extent of Sh.

all make good any loss or damage occasioned
by any such default made on or after the date hereof to the estate
of the said debtor to the extent of Sh.

, this Obligation
shall be void or otherwise shall remain in full force and virtue :
Provided always, and it is hereby agreed and declared, that this
Bond is entered into by the said Society [Insurance Company] on
the condition that the capital stock and funds for the time being of
the said Society [Insurance Company] shall alone be liable to answer
and make good all claims or demands in respect of this Bond, and
that no director or other proprietor or holder of shares of the said
Society [Insurance Company] shall in any manner be personally liable
or subject to any claims or demands, by reason of such Bond, beyond
his or her particular share ox shares of such capital stock and funds:
Provided further, and it is further agreed between the said trustee
and the said Society [Insurance Company], that the said trustee on
ceasing to act as such trustee as aforesaid shall forthwith give notice
thereof in writing to the said Society [Insurance Company]:
Provided further, that the said trustee, and his heirs, executors and
administrators, shall and will from time to time and at all times save,
defend, and keep harmless the said Society [Insurance Company] and
their 'successors and the capital stock, funds or property of the said
Society [Insurance Company] from and against all loss or damage,
costs and expenses which the said Society [Insurance Company] or
the capital, stock, funds or property thereof shall or may or otherwise
might at any time sustain or he put unto for or by reason or in conse-
quence of the said Society [Insurance Company] having entered into
the above written Bond for him and at his request.

to for or by reason or in conse-
quence of the said Society [Insurance Company] having entered into
the above written Bond for him and at his request.

And the said trustee hereby covenants that he will, on the
day of of each successive year during the con-
tinuance of his administration of the estate, under the Deed, pay or
cause to be paid to the said Society [Insurance Company] the annual
premium of Sh. In witness whereof the said trustee hath hereunto set his hand
and seal and the said Society [Insurance Company] have hereunto
caused their seal to be affixed the day and year first above written. Signed, sealed and delivered by the said in the
presence of
The seal of the said Society [Insurance Company] was hereunto
affixed in the presence of

. Signed, sealed and delivered by the said in the
presence of
The seal of the said Society [Insurance Company] was hereunto
affixed in the presence of

Rev..19821 Deeds of Arrangement CAP. 54 29
[Subsidiary]
FORM No. 10
COVER Nom
Bond No. , 19....
Mr. , of
having this day effected a Guarantee for Sh. in favour of
Their Lordships the Chief Justice and Judges of the High Court of
Kenya, as trustee under a Deed of Arrangement executed by
on the terms and conditions contained in the Society's
[Insurance Company's] Bonds (according to the form prescribed under
the Deeds of Arrangement Rules), a Bond will be prepared and
delivered to the Registrar of the Court within fourteen days of this
date.
Dated this day of , 19
Manager of the said Society or
Insurance Company.
FORM No. 11
CERTIFICATE OF SECURITY
[Title]
I certify that Mr. , of •
the trustee under the above-mentioned Deed of Arrangement, has
given security to my satisfaction in the sum of Sh. by Bond
(a) of the Society [Insurance Company]
for the due performance of his duties under the Deed pursuant to
section 13 (1) of the Deeds of Arrangement Act.
Dated this day of , 19....
Registrar of the Court.
(a) Or cover
note.

uties under the Deed pursuant to
section 13 (1) of the Deeds of Arrangement Act.
Dated this day of , 19....
Registrar of the Court.
(a) Or cover
note.

30 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
FORM No. 12
ORDER DECLARING DEED VOID OR APPOINTING NEW TRUSTEE
[Title]
WHEREAS is the trustee under the
above-mentioned Deed of Arrangement; And Whereas it has been
proved to the satisfaction of the Court that the said
has failed to comply with the requirements of section 13 (1) of the
Deeds of Arrangement Act: Now, on the application of
, a creditor, and upon hearing
, and upon reading
this Court doth declare the said Deed of Arrangement to be void [or
doth order that , of , be
appointed trustee under the said Deed in place of the said ],
but this Order shall not take effect unless the said • shall
give security as provided by section 13 (1) of the Deeds of Arrange-
ment Act within days after this date
[or as the Court may order with reference to security].
By the Court,
Registrar.
FORM No. 13
STATEMENT PURSUANT TO SECTION 16
[Title]
Statement of Trustee's Accounts and of proceedings under the
Deed from the day of , 19...., to
the • day of , 19....

NT PURSUANT TO SECTION 16
[Title]
Statement of Trustee's Accounts and of proceedings under the
Deed from the day of , 19...., to
the • day of , 19....

CAP. 54 31Rev. 1982] Deeds of Arrangement
[Subsidiary]
FORM No. 13—(Contd.)
RECEIPTS £ Sh. PAYMENTS Sh. deposited by deb- Law costs of prepara-
with advocate for tion and registration
Is of deed.. • .. of deed .. .. xeel .. .. to trustee .. .. at bank at date of Law costs of advocate
xl.. .. .. k debts .. .. in hand at date of Other law costs (c)
ock-in-trade realized Accountant's charges
m sale by (a) .. Auctioneer's and
unary realized from valuer's charges .. e by (a) .. .. Trustee's remunera-
: fixtures; fittings, tion .. .. ., realized from sale Possession .. .. (a) .. .. Incidental expenses
urniture realized from Other costs and
e by (a) .. .. charges (c) .. Ills from securities
ing receipts .. hand of creditors.. Total costsandcharges
r property, viz.:— Allowance to debtor
realized from sale by Payments to creditors,
.. .. . . viz.:— £ Sh. :cross receipts .. Rent from
£ Sh. _19. ,to 19.. Trading
yments Rates and
taxes .. tents to wages .. lm secu- Other prefer-
, viz. (b) ential pay-
Salaries and
ments, viz. £ Sh. (ic) .. Dvidend of
in the £
on £
Paid .. Unpaid .. Other pay-
ments(ifany)
(c) .. Vet realizations .. Total .. Ice due to Trustee Balance in hand
any) .. ..

. Dvidend of
in the £
on £
Paid .. Unpaid .. Other pay-
ments(ifany)
(c) .. Vet realizations .. Total .. Ice due to Trustee Balance in hand
any) .. ..

(if any) .. .. £
•
(a) Insert gross proceeds of sale, and state how goods were sold, e.g. by auction, by valuation, or as the case may be. (b)Here insert to whom payments made, nature of security redeemed
and amount of each payment; or annex schedule giving these
particulars. (c) Insert particulars or annex schedule. Cash
for
CO
Cash
Cash
Boo
St fro
Mac
sal
Trad
etc
by
sal
Surp
in
Trad
Othe
(a)
Less
pa
Payn
redee
rities
(if

(c) Insert particulars or annex schedule. Cash
for
CO
Cash
Cash
Boo
St fro
Mac
sal
Trad
etc
by
sal
Surp
in
Trad
Othe
(a)
Less
pa
Payn
redee
rities
(if

32 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
FORM ND. 1 3—(Contd.)
The total payments into the (d) Bank
to the day of , 19...., were £
and the total payments out of the said Bank to the day of
, 19. , were £
The amounts of the assets and liabilities at the time the Deed
was executed as estimated by the debtor were
Assets, after deducting Sh. the value of securities
held by creditors and required to cover debts due to them, £
Liabilities, after deducting Sh. the amount covered by
securities, £
(c) Insert The nature and value of the assets unrealized are (c)
particulars or
annex The causes which delay the termination of the winding up of
schedule. the estate are (c)
The estate will probably be completely wound up within
The following special circumstances affect the costs of realization
and the administration of the estate, viz. (c)
Trustee
[Address] •
[Date]
FORM No.

The following special circumstances affect the costs of realization
and the administration of the estate, viz. (c)
Trustee
[Address] •
[Date]
FORM No.

14
NOTICE TO CREDITORS OF DEED OF ARRANGEMENT
[Title]
TAKE NOTICE that a Deed of Arrangement by, for or in
respect of the affairs of
of , has been duly executed
and registered, and a certificate of the assents of creditors thereto duly
filed, and that after the expiration of two months from
[insert date of posting] you will not be entitled to present a bank-
ruptcy petition against founded
on the execution of the Deed, or on any other act committed by him
[them] in the course of or for the purpose of proceedings preliminary
to the execution of the Deed, as an act of bankruptcy, unless the
Deed becomes void. Dated this day of , 19.... Trustee under the said Deed
of Arrangement
To A.B. (a creditor of the said debtor[s]).

uptcy, unless the
Deed becomes void. Dated this day of , 19.... Trustee under the said Deed
of Arrangement
To A.B. (a creditor of the said debtor[s]).

Rev.,19821 Deeds of Arrangement CAP. 54 29
[Subsidiary
FORM No. 10
COVER NOTE
Bond No. , 19
Mr. , of
having this day effected a Guarantee for Sh. in favour of
Their Lordships the Chief Justice and Judges of the High Court of
Kenya, as trustee under a Deed of Arrangement executed by
on the terms and conditions contained in the Society's
[Insurance Company's] Bonds (according to the form prescribed under
the Deeds of Arrangement Rules), a Bond will be prepared and
delivered to the Registrar of the Court within fourteen days of this
date.
Dated this day of , 19....
Manager of the said Society or
Insurance Company.
FORM No. 11
CERTIFICATE OF SECURITY
[Title]
I certify that Mr. , of
the trustee under the above-mentioned Deed of Arrangement, has
given security to my satisfaction in the sum of Sh. by Bond
(a) of the Society [Insurance Company]
for the due performance of his duties under . the Deed pursuant to
section 13 (1) of the Deeds of Arrangement Act.
Dated this day of , 19....
(a) Or cover
note.
Registrar of the Court.

ies under . the Deed pursuant to
section 13 (1) of the Deeds of Arrangement Act.
Dated this day of , 19....
(a) Or cover
note.
Registrar of the Court.

30 CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
FORM No. 12
ORDER DECLARING DEED VOID OR APPOINTING NEW TRUSTEE
[Title]
WHEREAS is the trustee under the
above-mentioned Deed of Arrangement; And Whereas it has been
proved to the satisfaction of the Court that the said
has failed to comply with the requirements of section 13 (I) of the
Deeds of Arrangement Act: Now, on the application of
, a creditor, and upon hearing
, and upon reading
this Court doth declare the said Deed of Arrangement to be void [or
doth order that , of , be
appointed trustee under the said Deed in place of the said j,
but this Order shall not take effect unless the said • shall
give security as provided by section 13 (1) of the Deeds of Arrange-
ment Act within days after this date
[or as the Court may order with reference to security].
By the Court,
Registrar.
Foitm No. 13
STATEMENT PURSUANT TO SECTION 16
[Title]
Statement of Trustee's Accounts and of proceedings under the
Deed from the day of , 19...., to
the " day of r , 19....

PURSUANT TO SECTION 16
[Title]
Statement of Trustee's Accounts and of proceedings under the
Deed from the day of , 19...., to
the " day of r , 19....

Rev. 1982] Deeds of Arrangement CAP. 54 31
[Subsidiary]
FORM No. 13—(Contd.)
RECEIPTS £ Sh. PAYMENTS Sh. Cash deposited by deb- Law costs of prepara-
tor with advocate for tion and registration
costs of deed.. • .. of deed .. .. Cash at bank at date of Law costs of advocate
deed .. .. • • to trustee .. .. Cash in hand at date of Other law costs (c)
deed .. .. .. Book debts .. .. Stock-in-trade realized Accountant's charges
from sale by (a) .. Auctioneer's and
Machinery realized from valuer's charges .. sale by (a) .. .. Trustee's remunera-
Trade fixtures; fittings, tion .. .. etc., realized from sale Possession .. .. by (a).. .. Incidental expenses
Furniture realized from Other costs and
sale by (a) .. .. charges (c) . . Surplus from securities
in hand of creditors.. Totalcostsandcharges
Trading receipts .. Other property, viz.:— Allowance to debtor
realized from sale by Payments to creditors,
(a) .. .. • • viz.:— £ Sh. Gross receipts Rent from
£ Sh. _19_, to _19_
Less: Trading
payments Rates and
taxes .. Salaries and
Payments to
redeem secu-
rides, viz. (b)
wages .. Other prefer-
ential pay-
ments, viz. £ Sh. (i
c) .. Dvidend of
in the £
on £
Paid .. Unpaid . .

and
Payments to
redeem secu-
rides, viz. (b)
wages .. Other prefer-
ential pay-
ments, viz. £ Sh. (i
c) .. Dvidend of
in the £
on £
Paid .. Unpaid . .

Other pay-
ments(ifany)
(c) .. Net realizations .. Total .. Balance due to Trustee Balance in hand
(if any) .. .. (if any) .. . •
£
(a) Insert gross proceeds of sale, and state how goods were sold, e.g. by auction, by valuation, or as the case may be. (b)Here insert to whom payments made, nature of security redeemed
and amount of each payment; or annex schedule giving these
particulars. (c) Insert particulars or annex schedule.

ts made, nature of security redeemed
and amount of each payment; or annex schedule giving these
particulars. (c) Insert particulars or annex schedule.

32 . CAP. 54 Deeds of Arrangement [Rev. 1982
[Subsidiary]
FORM No. 13—(Contd.)
The total payments into the (d) Bank
to the day of , 19...., were £
and the total payments out of the said Bank to the day of
, 19. , were f
The amounts of the assets and liabilities at the time the Deed
was executed as estimated by the debtor were
Assets, after deducting Sh. the value of securities
held by creditors and required to cover debts due to them, £
Liabilities, after deducting Sh. the amount covered by
securities, f
(c) Insert The nature and value of the assets unrealized are (c)
particulars or
annex The causes which delay the termination of the winding up of
schedule. the estate are (c)
The estate will probably be completely wound up within
The following special circumstances affect the costs of realization
and the administration of the estate, viz. (c)
Trustee
[Address]
[Date]
FORM No.

n
The following special circumstances affect the costs of realization
and the administration of the estate, viz. (c)
Trustee
[Address]
[Date]
FORM No.

14
NOTICE TO CREDITORS OF DEED OF ARRANGEMENT
[Title]
TAKE NOTICE that a Deed of Arrangement by, for or in
respect of the affairs of
of , has been duly executed
and registered, and a certificate of the assents of creditors thereto duly
filed, and that after the expiration of two months from
[insert date of posting] you will not be entitled to present a bank-
ruptcy petition against founded
on the execution of the Deed, or on any other act committed by him
[them] in the course of or for the purpose of proceedings preliminary
to the execution of the Deed, as an act of bankruptcy, unless the
Deed becomes void. Dated this day of , 19. To A.B. (a creditor of the said debtor[s]). Trustee under the said Deed
of Arrangement

nkruptcy, unless the
Deed becomes void. Dated this day of , 19. To A.B. (a creditor of the said debtor[s]). Trustee under the said Deed
of Arrangement

Rev. 19821 Deeds of Arrangement CAP. 54 33
[Subsidiary]
FORM No. 15
No. TRUSTEE'S ACCOUNT OF RECEIPTS AND PAYMENTS
[Title]
Trustee
Account of Receipts and Payments pursuant to section 15 of the
Deeds of Arrangement Act. RECEIPTS PAYMENTS
Of Nature To Nature
Date whom
received of
receipt Amount Date whom
paid of
payment Amount
Note.—The outstanding estate consists of [here set out particulars
of any outstanding estate and the estimated value thereof]. FORM No. 16
AFFIDAVIT VERIFYING TRUSTEE'S ACCOUNT
[Title]
1, , of
the trustee of the estate comprised in the above-mentioned Deed, make
oath and say:-
1. That *[the account hereunto annexed marked "B" contains
a full and true account of my receipts and payments on account of
the estate comprised in the said Deed] from the
day of , 19...., to the day of
19...., inclusive, *[and that] I have not, nor has any other person by
my order or for my use during such period, received or paid any
moneys on account of the said estate *[other than and except the items
mentioned and specified in the said account]. 2.

h period, received or paid any
moneys on account of the said estate *[other than and except the items
mentioned and specified in the said account]. 2.

That on the • day of , 19...., and
the day of , 19...., I duly sent to each
creditor of the said who has assented to the
Deed a statement of accounts and proceedings as required by section
16 of the Deeds of Arrangement Act. Sworn at, etc. * If no receipts or payments, strike out the words in brackets.

proceedings as required by section
16 of the Deeds of Arrangement Act. Sworn at, etc. * If no receipts or payments, strike out the words in brackets.

34 CAP. 54 Deeds of Arrangement [Rev. 1982
(Subsidiary]
To be inserted
if the accounts
have been
audited by a
committee of
inspection.
FORM No. 17
TRUSTEE'S TRADING ACCOUNT
[Title]
Account of Receipts and Payments in connexion with the debtor's
business, pursuant to rule 33.
Receipts Payments
Date Date
Trustee
[Date]
We have examined this account with the vouchers and find the
same correct, and we are of opinion the expenditure has been proper.
Dated this day of , 19....
• : •
[.Member of the] Committee of Inspection
FORM No. 18
LIST OF DIVIDENDS OR COMPOSITIONS
[Title]
I HEREBY CERTIFY that a dividend [composition] of
• in the £ has been paid in the above matter, and
that the creditors whose names are set forth below are entitled to the
amounts set opposite their respective names in the columns headed
"Amount of dividend [composition]"; and I further certify that the
column headed "Unpaid" contains a full and complete list of all un-
paid dividends [compositions].
Dated the day of , 19....
Trustee
To the Official Receiver.
Surname Christian name Amount
of
claim
Amount of dividend
(composition]
Paid Unpaid

ions].
Dated the day of , 19....
Trustee
To the Official Receiver.
Surname Christian name Amount
of
claim
Amount of dividend
(composition]
Paid Unpaid

Rey. 1982] Deeds of Arrangement CAP. 54 35
(Subsidiary]
FORM No 19
AFFIDAVIT VERIFYING TRUSTEE'S FINAL ACCOUNT
[Title}
1, , of
the Trustee for the purposes of the above-mentioned Deed [or the
person distributing the composition herein] make oath and say :—
1. That *[the account hereunto annexed marked "B" contains
a full and true account of my receipts and payments on account of
the estate comprised in the said Deed] from the day of
, 19...., to the date of swearing this my affidavit,
inclusive, *[and that] I have not, nor has any person by my order or
for my use during such period, received or paid any moneys on
account of the said estate *[other than and except the items mentioned
and specified in the said account]. 2. t That all the property assigned under the Deed, or so much
thereof as can probably be realized, has been realized and distributed
according to the terms of the Deed, and that a dividend [or dividends]
of in the £ has been paid as shown in the list here-
unto annexed marked "C". OR
2. t That the composition proposed under the Deed has been
fully received and distributed as far as possible, as shown in the list
hereunto annexed marked "C". 3.

e composition proposed under the Deed has been
fully received and distributed as far as possible, as shown in the list
hereunto annexed marked "C". 3.

That on the day of , 19....,
and the ........ day of , 19. ,.., I duly sent to
each creditor of the said who has assented to the
Deed a statement of accounts and proceedings as required by
section 16 of the Deeds of Arrangement Act. Sworn at, etc. * If no receipts or payments, strike out the words in brackets. t Strike out paragraph not applicable or, if neither paragraph is
applicable, strike out both and add a special paragraph setting out the
facts.

kets. t Strike out paragraph not applicable or, if neither paragraph is
applicable, strike out both and add a special paragraph setting out the
facts.

36 CAP. 54 Deeds of Arrangement [Rev. 1982
(Subsidiary)
SECOND SCHEDULE (r. 44)
FEES
Item Fee
On filing a deed—
(i) where the total estimated amount of property
included therein, or the total amount of
composition payable thereunder, appears
from the affidavit of the debtor—
Sh. cts. (a) not to exceed £1,000 .. .. .. 20 00
(b) to exceed £1,000 but not to exceed £2,000 40 00
(c) to exceed £2,000 but not to exceed £3,000 60 00
(d) to exceed £3,000 but not to exceed £4,000 80 00
(e) to exceed £4,000 .. .. .. .. (ii) in every case to which the above fees do not
apply .. .. .. .. .. .. 100
40
00
00
On certificate, endorsed on an original deed, of
the registration thereof .. .. .. .. 5 00
On filing a statutory declaration or notice with
the Registrar of Deeds of Arrangement pursuant
to the Act or these Rules .. .. .. 4 00
On searching the register and on inspecting the
filed copy, including the limited extract to be
taken pursuant to the Act and these Rules (for
every name inspected) .. .. .. .. 4 00 .

inspecting the
filed copy, including the limited extract to be
taken pursuant to the Act and these Rules (for
every name inspected) .. .. .. .. 4 00 .

On an account transmitted by a trustee in pur-
suance of section 15 of the Act: a fee
upon the gross amount of the assets realized and
brought to credit or in the case of a composition
a fee upon the gross amount of the composition
distributed during the period comprised in the
account according to the following scale—
(a) on every £100 or fraction of £100 up to £500 8 00
(b) on every £100 or fraction of £100 above £500 4 00
On an application under section 15(3) of the
Ordinance, to inspect accounts of a trustee under
a deed of arrangement .. .. .. .. 2 00
On an application to the Official Receiver under
section 17(1) of the Act, for an official audit
of a trustee's account .. .. .. .. 30 00
On the audit of a trustee's accounts by the Official
Receiver under section 17(1) of the Act: a fee,
not being less than Sh. 150, according to the
following scale on the amount brought to
credit after deducting (1) the amount received
and spent in carrying on the business, and (2)
the amount paid to secured creditors out of the
proceeds of their securities, viz.:—
(a) on every £100 or fraction of £100 up to £5,000
(b) on every £100 or fraction of £100 beyond
£5,000 .. .. .. .. .. ..

s of their securities, viz.:—
(a) on every £100 or fraction of £100 up to £5,000
(b) on every £100 or fraction of £100 beyond
£5,000 .. .. .. .. .. ..

30
15
00
00
Provided that there shall be deducted from this
fee the amount of any fee taken on accounts
transmitted under section 15 of the Act
On copies furnished by the Official Receiver,
per folio .. .. .. .. .. .. 00 50
1
2
3
4
5
6
7
8

Rev. 1982] Deeds of Arrangement CAP. 54 37
[Subsidiary]
SECOND SCHEDULE—(Contd.)
COURT FEEs
'On applying to give security under a deed of arrangement, pursuant
to section 13 (1) of the Act—
For taking security and giving certificate, where the estimated
assets available for distribution amongst the unsecured creditors,
as shown by the affidavit filed on registration, are—
(a) less than £100 .. Sh. 15
Sh. 30
(b) in all other cases
In any matter not specifically provided for in these fees, such fees as
are exigible under the rules of court relating to civil matters.
GPK (L)