ARRANGEMENT OF SECTIONS
1. Short title.
3. Deeds of arrangement to which the Act applies.
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 a majority of the creditors.
REGISTRATION OF DEEDS OF ARRANGEMENT
6. Appointment of registrar.
7. Mode of registration.
8. Form of register.
9. Rectification of register.
10. Time for registration.
11. Inspection of register and registered deeds.
PROVISIONS AS TO TRUSTEES
12. Security by trustee.
13. Penalty on trustee acting when deed of arrangement becomes void.
14. Transmission of accounts to official receiver.
15. Transmission of accounts to creditors.
16. Audit of accounts.
17. Payment of undistributed moneys into court.
18. Preferential payment to creditor an offence.
19. Power of High Court to appoint new trustee.
20. Provisions for the protection of trustees under void deeds.
21. Notice to creditors of avoidance of deed.
22. Payment of expenses incurred by trustees.
23. Application of Part IV.
24. Courts in which applications for enforcement of trusts to be made.
25. Relation to bankruptcy law.
26. Office copies.
THE DEEDS OF ARRANGEMENT ACT
An Act to regulate deeds of arrangement.
[25th February, 1930]
10 of 1930
13 of 1954
41 of 1958 1
G.N. No. 478 of 1962
[R.L. Cap. 26]
PRELIMINARY PROVISIONS (ss 1-3)
This Act may be cited as the Deeds of Arrangement Act.
(1) In this act, unless the context requires otherwise–
"creditors generally" includes all creditors who may assent to, or take the benefit of, a deed of arrangement;
"prescribed" means prescribed by rules made under this Act;
"property" has the same meaning as in the Bankruptcy Act *;
"registrar" means the registrar appointed under the provisions of section 6 and includes an assistant registrar
(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.
(1) A deed of arrangement to which this Act applies shall include 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 in cases where creditors of the debtor obtain any control over his property or business–
(i) a deed of inspectorship entered into for the purpose of carrying on or winding up a business;
(ii) a letter of licence authorising the debtor or any other person to manage, carry on, realise 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 authorising the debtor or any other person to manage, carry on, realise or dispose of the debtor's business with a view to the payment of his debts.
AVOIDANCE OF DEEDS OF ARRANGEMENT WHERE STATUTORY CONDITIONS NOT COMPLIED WITH (ss 4-5)
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 first executed in any place out of the municipality of Dar es Salaam, then within seven days after the time at which it would, in the ordinary course of post, arrive in Dar es Salaam, if posted within one week after the first execution thereof, and unless it bears such ordinary and ad valorem stamp as is provided by this Act.
This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.