992
THE HONGKONG GOVERNMENT GAZETTE, 7TH NOVEMBER, 1891.
Power of Trustee to deal with property.
(2.) The disclaimer shall operate to determine as from the date of disclaimer the rights interests and liabilities of the bankrupt and his property in or in respect of the pro- perty disclaimed and shall also discharge the Trustee from all personal liability in respect of the property disclaimed as from the date when the property vested in him but shall not except so far as is necessary for the purpose of releasing the bankrupt and his property and the Trustee from liability affect the rights or liabilities of any other person.
(3.) A Trustee shall not be entitled to disclaim a lease without leave of the Court and the Court may before or on granting such leave require such notices to be given to persons interested and impose such terms as a condition of granting leave and make such orders with respect to fixtures tenants improvements and other matters arising out of the tenancy as the Court thinks just.
(4.) The Trustee shall not be entitled to disclaim any property in pursuance of this section in any case where an application in writing has been made to the Trustee by any person interested in the property requiring him to decide whether he will disclaim or not and the Trustee has for a period of twenty-eight days after the receipt of the applica- tion or such extended period as may be allowed by the Court declined or neglected to give notice whether he disclaims the property or not and in the case of a contract if the Trustee after such application as aforesaid does not within the said period or extended period disclaim the contract he shall be deemed to have adopted it.
(5.) The Court may on the application of any person who is as against the Trustee entitled to the benefit or subject to the burden of a contract made with the bankrupt make an order rescinding the contract on such terms as to payment by or to either party of damages for the non- performance of the contract or otherwise as to the Court may seem equitable and any damages payable under the order to any such person may be proved by him as a debt under the bankruptcy.
(6.) The Court may on application by any person either claiming any interest in any disclaimed property or under any liability not discharged by this Ordinance in respect of any disclaimed property and on hearing such persons as it thinks fit make an order for the vesting of the property in or delivery thereof to any person entitled thereto or to whom it may seem just that the same should be delivered. by way of compensation for such liability as aforesaid or a trustee for him and on such terms as the Court thinks just and on such vesting order being made the property com- prised therein shall vest accordingly in the person therein named in that behalf without any conveyance or assign- ment for the purpose. Provided always that when the property disclaimed is of a leasehold nature the Court shall not make a vesting order in favour of any person claiming under the bankrupt except upon the terms of making such persons subject to the same liabilities and obligations as the bankrupt was subject to under the lease in respect of the property at the date when the bankruptcy petition was filed- and any mortgagee or under-lessee declining to accept & vesting order upon such terms shall be excluded from all interest in and security upon the property and if there shall be no person claiming under the bankrupt who is willing to accept an order upou such terms the Court shall have power to vest the bankrupt's estate and interest in the property in any person liable either personally or in a representative character and either alone or jointly with the bankrupt to perform the lessee's covenants in such lease freed and discharged from all estates encumbrances and interests created therein by the bankrupt.
(7.) Any person injured by the operation of a disclaimer under this section shall be deemed to be a creditor of the bankrupt to the extent of the injury and may accordingly prove the same as a debt under the bankruptcy.
49. Subject to the provisions of this Ordinance and to any general or special order of the Court the Trustee may do all or any of the following things -
:
(a.) Sell all or any part of the property of the bankrapt (including the good-will of the business if any and the book debts due or growing due to the bankrupt) by public auction or private contract with power to transfer the whole thereof to any person or company or to sell the same in parcels.