Period between award of sequestration and statutory meeting of creditors

18Interim preservation of estate

(1)The interim trustee may give general or particular directions to the debtor relating to the management of the debtor's estate.

(2)In exercising the functions conferred on him by section 2(1)(a) of this Act, an interim trustee may—

(a)require the debtor to deliver up to him any money or valuables, or any document relating to the debtor's business or financial affairs, belonging to or in the possession of the debtor or under his control;

(b)place in safe custody anything mentioned in paragraph (a) above;

(c)require the debtor to deliver up to him any perishable goods belonging to the debtor or under his control and may arrange for the sale or disposal of such goods ;

(d)make or cause to be made an inventory or valuation of any property belonging to the debtor;

(e)require the debtor to implement any transaction entered into by the debtor ;

(f)effect or maintain insurance policies in respect of the business or property of the debtor;

(g)close down the debtor's business.

(3)The court, on the application of the interim trustee, may—

(a)empower the interim trustee to—

(i)carry on any business of the debtor;

(ii)borrow money,

in so far as it is necessary for the trustee to do so to safeguard the debtor's estate;

(b)on cause shown, grant a warrant authorising the interim trustee to enter the house where the debtor resides or his business premises and to search for and take possession of anything mentioned in paragraphs (a) and (c) of subsection (2) above, if need be by opening shut and lock-fast places ; or

(c)make such other order to safeguard the debtor's estate as it thinks appropriate.

(4)The court, on an application by the debtor on the grounds that a direction under subsection (1) above is unreasonable, may—

(a)if it considers the direction to be unreasonable, set aside the direction ; and

(b)in any event, give such directions to the debtor regarding the management of his estate as it considers appropriate ;

but, subject to any interim order of the court, the debtor shall comply with the direction appealed against pending the final determination of the appeal.

(5)The debtor shall be guilty of an offence if—

(a)he fails without reasonable excuse to comply with—

(i)a direction under subsection (1) or (4)(b) above ; or

(ii)a requirement under subsection (2)(a), (c) or (e) above; or

(b)he obstructs the interim trustee where the interim trustee is acting in pursuance of subsection (3)(b) above.

(6)A person convicted of an offence under subsection (5) above shall be liable—

(a)on summary conviction to a fine not exceeding the statutory maximum or—

(i)to imprisonment for a term not exceeding 3 months; or

(ii)if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,

or (in the case of either sub-paragraph) to both such fine and such imprisonment; or

(b)on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.