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Magistrates' Courts Act, 1944 (Act No. 32 of 1944)

Part II : Civil Matters

Chapter IX : Execution

74B. Hearing of application for administration order

 

(1) At the hearing of an application for an administration order—
(a) any creditor, whether he has received notice in terms of section 74A(5) or not, may attend the hearing and provide proof of his debt and object to any debt listed by the debtor in the statement of his affairs referred to in section 74A(1);
(b) every debt listed by the debtor in the said statement shall be deemed to be proved, subject to any amendment made thereto by the court, unless any creditor raises objections thereto or the court rejects it or requires substantiation thereof by evidence;
(c0 any creditor to whose debt an objection is raised by the debtor or any other creditor or who is required by the court to substantiate his debt with evidence shall provide proof of debt;
(d) the court may defer proof of debt and postpone consideration of the application for an administration order or proceed to deal with such application and, if an administration order is granted, the debt shall subsequently when proved be added to the debts listed;
(e) the debtor may be interrogated by the court and by any creditor whose debt has been acknowledged or proved, or by leave of the court, by any creditor the proof of whose debt has been deferred, or by the legal representative of such creditor with regard to—
(i) his assets and liabilities;
(ii) his present and future income and that of his wife living with him;
(iii) his standard of living, and the possibility of economising; and
(iv) any other matter that the court may deem relevant.

 

(2) If at the hearing it appears to the court that any debt other than a debt on the ground of or arising from any judgment debt is a matter of contention between the debtor and the creditor or between the creditor and any other creditor of the debtor, the court may, upon inquiry into the objection, allow or reject the debt or a part thereof.

 

(3) Any person whose debt has been rejected in accordance with subsection (2) may, notwithstanding the provisions of section 74P, institute proceedings or proceed with an action already instituted in respect of such debt.

 

(4) If any person referred to in subsection (3) has obtained judgment in respect of any debt referred to in that subsection, the amount of the judgment shall be added to the list of proved debts referred to in subsection (1).

 

(5) No administration order shall be granted at the request of any debtor if it is proved that any administration order was rescinded within the preceding period of 6 months because of the debtor's non-compliance therewith, unless the debtor proves to the satisfaction of the court that his non-compliance with the order was not wilful.