(a)	in the 12 months before the making of the bankruptcy application by or against the bankrupt, materially contributed to, or increased the extent of, the bankrupt’s insolvency by gambling or by rash and hazardous speculations; or
(b)	in the initial period, lost any part of the bankrupt’s property by gambling or by rash and hazardous speculations.

(2) In determining for the purposes of this section whether any speculation was rash and hazardous, the financial position of the bankrupt at the time when the bankrupt entered into it is to be taken into consideration.