CHAPTER 26
DEEDS OF ARRANGEMENT ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   RULES

      The Deeds of Arrangement Rules

RULES

THE DEEDS OF ARRANGEMENT RULES

(Section 28)

G.N. No. 161 of 1931
[R.L. Cap. 26]

[1st December, 1931

PART I
PRELIMINARY PROVISIONS
(rules 1-3)

1.   Short title and commencement

   These Rules may be cited as the Deeds of Arrangement Rules, and shall also apply, as far as practicable, and unless otherwise expressly provided, to all matters arising and to all proceedings taken on any matters under the Act or any Act amending the same, on or after the said day.

2.   Interpretation of terms

   In these Rules unless the context requires otherwise–

   "the Act" means the Deeds of Arrangement Act *;

   "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;

   "district registrar" means a district registrar appointed under the High Court Registries Rules;

   "judge" means a judge of the High Court;

   "magistrate" means a magistrate of a court having jurisdiction in bankruptcy;

   "receiver" means the official receiver in bankruptcy and includes a deputy official receiver;

   "registrar" means the registrar as defined in section 6 of the Act, and includes a deputy registrar.

3.   Forms

   (1) The forms in the Appendix when applicable, and when they are not applicable, forms of a like character with such variations as circumstances may require, shall be used. When such forms are applicable any costs occasioned by the use of any other or more prolix forms shall be borne by or disallowed to the party using the same unless the court shall otherwise direct.

   (2) The receiver may from time to time alter any forms which relate to matters of an administrative and not of a judicial character, or substitute new forms in lieu thereof. When the receiver alters any form or substitutes a new form in lieu of one prescribed by these Rules, such altered or substituted form shall be published in the Gazette.

PART II
EXECUTION OF DEEDS (rules 4-15)

REGISTRATION OF DEEDS (rules 4-7)

4.   Affidavits: Forms 4, 5, 6

   The affidavits to be made pursuant to section 7 of the Act shall be filed with the registrar.

5.   Endorsement on copy of deed for filing

   Upon every copy of a deed which is presented for filing there shall be endorsed, by the person who presents it, the name of the debtor, the date of the deed and of the filing thereof, the total amount of duty with which the deed is stamped, and a certificate signed by the advocate of the debtor or the person who presents the copy for filing certifying that the copy is a correct copy of the deed.

6.   Execution of deed by trustee prior to registration

   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 it shall be the duty of the registrar before registering such an assignment, to 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.   Certificate of registration on original deed

   When a deed is registered under the Act there shall be written on the original deed a certificate stating that the deed has been duly registered as prescribed by the Act, and the date of registration. Such certificate shall be sealed with the seal of the registrar.

SEARCHES AND EXTRACTS (rules 8-9)

8.   Extracts from filed copy of deed

   Extracts from the filed copy of a deed shall be limited to the date of execution and registration, the names, addresses and descriptions of the debtor and the parties to the deed, and a short statement of the nature and effect of the deed.

9.   Search and inspection in district registry

   A district registrar shall allow any person to search the index kept by him at any time during office hours, and to make the same extracts as are permitted by the last preceding rule upon payment by such person of the prescribed fee.

   A district registrar shall also, if required, cause an office copy to be made of any copy of a deed filed in his office and shall mark and seal the same upon payment of the prescribed fee.

TRANSMISSION OF COPIES TO DISTRICT REGISTRIES (rules 10-15)

10.   Endorsement to be made on copies transmitted to district registries

   Upon every copy of a deed which pursuant to the Act is transmitted to a district registry there shall be written copies of every endorsement or certificate written on the original deed or on the filed copy thereof. Such copies shall be signed by the registrar or by some other person duly authorised by him.

11.   Transmission of copy by post

   The copy of a deed which, pursuant to the Act, is required to be transmitted to a district registrar may be transmitted to him by post.

12.   Copies to be numbered and filed in district registry

   The district registrar shall number the copies of deeds received by him in the order in which they shall respectively be received, and shall file and keep them in his office.

13.   Extra copies of deeds to be furnished in certain cases

   When a debtor who is one of the parties to a deed of arrangement or who is referred to therein has a place of business or residence situate in the area in which a district registry has been established, there shall be furnished to the registrar sufficient copies of the deed of arrangement to enable him to transmit a copy to the district registrar of each area in which such place of business or residence is situate.

14.   Index to be kept in district registry

   The district registrar shall keep an index, alphabetically arranged, in which he shall enter, under the first letter of the surname of the debtor, such surname, with his Christian or other names, address and description, and the number affixed to the copy.

15.   Office copies and searches

   The provisions of sections 11 and 25 of the Act shall apply to all documents filed with the registrar pursuant to the Act or these Rules.

PART III
PROCEDURE (rules 16-22)

16.   Applications, how to be made

   All applications other than applications under section 9 of the Act which by the Act or these Rules are directed or allowed to be made to the High Court or court having jurisdiction in bankruptcy shall be deemed to be proceedings in bankruptcy and subject to the Act and these Rules shall be made in accordance with and in the manner prescribed for proceedings under the Bankruptcy Act and the Bankruptcy Rules for the time being in force, with such variations as the circumstances may require and shall be supported by affidavit:

   Provided that applications for extension of time for procuring the assent of creditors to a deed under section 5(1) or for filing the statutory declaration required by section 5(4) may be made ex parte and without affidavit unless the court shall in any case otherwise order.

17.   Applications: to whom to be made

   The application shall be made to the registrar of the court or magistrate as the case may be who shall cause the same, together with the affidavits in support, to be filed, and shall appoint a day for the hearing not earlier than fourteen days from the filing of the application. The registrar of the court or the magistrate, as the case may be, may direct notice of the application to be served on such person or persons as he thinks fit, but in the absence of any special direction by him, 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 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.   Evidence

   The evidence to be used on the application shall, unless the court otherwise orders, be given by affidavit, but any opposite party may require, by notice in writing addressed to any deponent or his advocate, the attendance of such deponent for cross-examination.

19.   Affidavits by parties other than applicant

   All affidavits intended to be used by any party to such application other than the applicant, shall be filed in court, and copies served on the applicant not less than four days before the day appointed for the hearing of the application.

20.   Chambers and adjournment to court

   All applications shall be heard and determined by a judge or magistrate as the case may be in chambers but in any case the application may be adjourned to be heard and determined in court.

21.   Service of application under section 12(2)

   Notice of any application under section 12(2) of the Act to declare a deed void, or 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.   Application to determine liability on bond and procedure under section 12(2) to apply

   If a trustee fails to pay to a guarantee society, party to a bond under rule 23, the annual premium payable by him within fourteen days of the date when such premium becomes payable, or if the society refuses to accept such premium, the society may apply to the registrar of the court, or magistrate, as the case may be, to determine its liability under the bond and the registrar of the court or magistrate, as the case may be, if satisfied by affidavit that default in payment of the premium has been made by the trustee, or that the refusal of the society 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 shall cease and determine, save and except in respect of any loss or damage occasioned by any act or default of the said trustee in relation to his duties as such trustee as aforesaid previously to such cesser and determination of liability, and the registrar of the court or the magistrate, as the case may be, may exercise any of the powers conferred by section 12(2) of the Act *. Notice of any application under this rule 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 or hearing the application, and any of such creditors may appear and be heard thereon, and rules 16 to 20 inclusive shall, so far as applicable, be observed.

PART IV
TRUSTEES (rules 23-29)

23.   Security by trustee

   The security to be given by the trustee under a deed of arrangement pursuant to section 12(1) of the Act shall be by bond of a guarantee society. The guarantee society named in such bond shall be a society whose bonds are accepted by the registrar of the court or magistrate of the court to whom security is given. Pending the preparation of the bond a cover note shall be accepted by the registrar or magistrate of the court, as the case may be.

24.   Copy of affidavit of debtor to be filed on giving security

   Every trustee on giving security for the due administration of the deed and for accounting fully for the assets pursuant to section 12(1) of the Act shall produce and hand to the registrar of the court or the magistrate, as the case may be, an office copy of the affidavit of the debtor filed on the registration of the deed and the registrar of the court or magistrate, as the case may be, shall file such office copy.

25.   Certificate that security given and copy of order to be sent to registrar

   When security has been given by a trustee pursuant to section 12(1) of the Act the registrar of the court or magistrate, as the case may be, of the court to which it is given shall within three days after receipt thereof send to the registrar a certificate signed by him certifying that security has been given and the registrar shall forthwith file the same. The registrar of the court or the magistrate, as the case may be, shall also send to the registrar, within three days after any order made under section 12(2) has been perfected, a copy of such order.

26.   Notice by new trustee of appointment

   Where a new trustee of a deed has been appointed he shall forthwith send to the registrar a notice of his appointment, giving his full name and address, and showing how and when the appointment has been made, and the registrar shall forthwith file the same.

27.   Notice to creditor of execution of deed, etc.

   Notice under section 25(1) of the Act to a creditor of the execution of a deed and of the filing of the certificate of the assent of creditors thereto shall be sent by prepaid registered post addressed to such creditor at the address mentioned in the affidavit of the debtor filed on the registration of the deed, and service shall be deemed to have been made on the day on which the notice would in the ordinary course of post reach its destination.

28.   Audit of trustee's accounts

   Where the receiver 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 receiver directing him to do so, deliver to the receiver copies of all the accounts transmitted by him to the receiver pursuant to section 14 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. Such copies and account shall be sent together with an affidavit verifying the same.

29.   Certificate of audit

   The account as audited and the auditor's certificate or observations thereon shall be filed and kept by the 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 such certificate or observations. A certified copy of the certificate or observations shall be supplied to the trustee or to any creditor on application, on payment of the prescribed fee.

PART V
ACCOUNTS (rules 30-41)

30.   Transmission of accounts

   (1) The accounts of receipts and payments to be transmitted to the receiver by every trustee under a deed shall be on sheets of a size to be prescribed by the receiver and shall be transmitted with the prescribed fee to the official receiver in bankruptcy at Dar-es-Salaam.

   (2) The first account shall commence at the date of execution of the deed and be brought down to the end of twelve months from the date of registration thereof, and shall be transmitted within thirty days from the expiration of such twelve months and the subsequent accounts shall be transmitted at intervals of twelve months. Each account shall be brought down to the end of the period of twelve months for which it is sent, and shall be verified by affidavit.

31.   Receipts and payments

   In the account each receipt and payment must be entered in such a manner as sufficiently to explain its nature.

32.   Trading account

   When the trustee carries on a business, a trading account must be forwarded as a distinct, and total of receipts and payments on the trading account must alone be set out in the yearly account. The trading account shall be on sheets of such size as the receiver may prescribe.

33.   Petty expenses

   Petty expenses must be entered in the accounts in sufficient detail to show that no estimated charges are made.

34.   Realisations

   Where property has been realised, the gross proceeds of sale must be entered under receipts in the account, and the necessary disbursements and charges incidental to sales must be entered as payments.

35.   Dividends

   Where dividends or instalments of composition are distributed under the deed, the total amount of each dividend or instalment of composition must be entered in the trustee's accounts as one sum, and the trustee shall forward to the receiver:

   (a)   with each account in which a charge in respect of dividend or composition appears, a statement showing the amount of the claim of each creditor, and the amount of dividend or composition payable to each creditor, distinguishing in such statement the dividends or instalments of composition paid and those remaining unpaid; and

   (b)   with his final account a complete statement in a similar form showing the amount of the claim and the full amount of dividend or composition paid to or reserved for each creditor. Such statements shall be on sheets of such size as the receiver may prescribe.

36.   Partnership accounts

   Where the deed has been made by a firm of debtors in partnership, distinct accounts shall be transmitted of the joint estate and of each of the separate estates.

37.   Imperfect accounts

   Where it appears to the receiver that the account transmitted by a trustee under a deed of arrangement is incomplete, or requires amendment or explanation, the receiver may require such 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 receiver may be enforced in the same manner as the transmission of accounts under section 14.

38.   Affidavit of no receipts or payments

   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 receiver, forward to the receiver an affidavit of no receipts or payments.

39.   Affidavit verifying final account

   As soon as a trustee has realised all the property included in any deed of arrangement, or so much thereof as can probably be realised, and has distributed a final dividend, or final instalment 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 the same.

40.   Summary of accounts or modified form of account in particular cases

   In any particular case in which it shall appear to the receiver that an account of receipts and payments in the form and containing the particulars specified in these Rules may for special reasons be dispensed with, the receiver may permit 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 receiver shall appear sufficient.

41.   Swearing affidavits respecting accounts

   All affidavits required by or made in pursuance of section 14 of the Act or these Rules shall if sworn in any place in Tanzania be sworn before a commissioner for oaths, a justice of the peace or magistrate for that place, or the registrar of the court; and may if sworn in any place out of Tanzania be sworn before any person having authority to administer an oath in that place.

PART VI
RETURNS OF REGISTERED DEEDS (rules 42-44)

42.   Returns of registered deeds

   A return of every registration of a deed of arrangement shall be made to the receiver by the registrar within one week of the date of such registration.

43.   Contents of return

   The return referred to in rule 42 shall contain the following particulars relating to the deed of arrangement registered–

   (a)   the date of the deed;

   (b)   the date of registration;

   (c)   the full name and address of the debtor;

   (d)   the description of the trade or business of the debtor;

   (e)   the place or places where the debtor carries on business, and the title of the firm (if any) under which the business is carried in;

   (f)   the full name and address of each trustee (if any) under the deed;

   (g)   the nature and effect of the deed, and where a composition is provided for, the amount of composition payable thereunder;

   (h)   the gross amount and net amount of liabilities as shown in the register;

   (i)   the gross value and net value of the property as shown in the register;

   (j)   such further particulars as the receiver may by letter addressed to the registrar require.

44.   Returns by registrar

   The registrar shall furnish the receiver with copies of all alterations in and additions to particulars in the register of any deed of arrangement within one week of such alteration or addition being made.

APPENDIX
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.

7.

Form of register to be kept by registrar.

8.

Statutory declaration by trustee that creditors have dispensed with his giving security.

9.

Security by trustee under section 12(1).

10.

Cover note.

11.

Certificate of the Act of security.

12.

Order declaring deed void or appointing new trustee.

13.

Statement pursuant to section 15.

14.

Notice to creditors of deed of arrangement.

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.

FORMS

FORM 1
GENERAL TITLE

THE DEEDS OF ARRANGEMENT ACT (CAP. 26)

   In the matter of a Deed of Arrangement between ............................................................
of ............................................................ 1 and his creditors, dated the .........................
day of ..............................., 20......, 2 [and registered under the Deeds of Arrangement Act on the .............................. day of .................................. 20......]

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