Division 14 — Distribution of dividends
Notice of intended dividend
74.—(1)  Before declaring a dividend to creditors of a bankrupt’s estate, the trustee of the bankrupt’s estate must —
(a)cause a notice of the trustee’s intention to do so (called in this Division the notice of intended dividend) to be published in a local newspaper or in any other manner that the trustee thinks fit; and
(b)send the notice of intended dividend to the last known address of every creditor mentioned in the bankrupt’s statement of affairs who has not proved the creditor’s debt.
(2)  The notice of intended dividend —
(a)must be in Form BR-17; and
(b)must specify the latest date by which a creditor’s proof may be filed, beyond which the creditor cannot prove the creditor’s debt in the bankruptcy according to section 347(2) of the Act.
Provision for dividend
75.—(1)  A creditor who has made, or who intends to make, any of the following applications must, in writing and within 14 days after the date of a notice of intended dividend sent to the creditor under regulation 74, inform the trustee of the bankrupt’s estate of the application or intention:
(a)an application to the Court or trustee under section 347(3) or (4) of the Act, respectively, for an extension of the period during which the creditor may prove the creditor’s debt;
(b)an application to the Court under rule 127(1) of the Personal Insolvency Rules against the decision of the trustee in rejecting the creditor’s proof in whole or in part;
(c)an application to the Court under rule 128(1) of the Personal Insolvency Rules against the decision of the trustee in expunging the creditor’s proof of debt or varying its amount.
(2)  A creditor who intends to provide any further evidence or information in support of the creditor’s proof under regulation 58(4)(b) must, in writing and within 7 days after the date of a notice of dividend sent to the creditor under regulation 74, inform the trustee of such intention.
(3)  Where paragraph (1) or (2) applies, the trustee must make provision for the dividend payable upon the creditor’s proof in the event that the creditor succeeds in the creditor’s application, or the trustee issues a revocation of the trustee’s decision upon the trustee’s examination of the further evidence or information submitted by the creditor under regulation 58(4)(b), as the case may be.
(4)  The trustee must declare, out of the provision made under paragraph (3) for that creditor’s proof, or any part of the provision that the creditor is not properly entitled, a dividend payable to the other creditors whose proofs have been admitted, if —
(a)the creditor has informed the trustee of the creditor’s application, or the creditor’s intention to make the application, mentioned in paragraph (1)(a), (b) or (c), as the case may be, and —
(i)no such application is made within the time allowed to the creditor to make the application; or
(ii)the application is dismissed in whole or in part; or
(b)the creditor has informed the trustee of the creditor’s intention to submit further evidence or information in support of the creditor’s proof under regulation 58(4)(b), and —
(i)no such further evidence or information is submitted within the time allowed to the creditor to so submit; or
(ii)upon the trustee’s examination of the further evidence or information submitted by the creditor, the trustee issues a confirmation of the trustee’s decision or issues a notice of revocation of the trustee’s decision without admitting the creditor’s proof in full.
Declaration of dividend
76.—(1)  Subject to regulation 75(3), after the expiration of 14 days after the date of the notice of intended dividend sent by a trustee of a bankrupt’s estate, the trustee must proceed to declare a dividend, and send to each creditor a notice of dividend specifying the percentage of dividend payable and the amount of dividend payable to the creditor.
(2)  If after the payment of dividend, any creditor’s proof which has been admitted is withdrawn or expunged or the amount of it is realised, the creditor must repay to the trustee of the bankrupt’s estate in question for the credit of the estate any amount overpaid by way of dividend.
(3)  If it becomes necessary, in the opinion of the trustee of a bankrupt’s estate, to postpone the declaration of the dividend, the trustee may postpone the declaration of dividend as the trustee thinks fit.
Production of bills of exchange, etc.
77.  Subject to section 70 of the Bills of Exchange Act (Cap. 23), a bill of exchange, promissory note, or other negotiable instrument or security upon which proof has been made must, unless the Court on special grounds dispenses with its production, be exhibited to the trustee of the bankrupt’s estate in question before payment of any dividend on the proof, and the amount of dividend paid must be endorsed on the instrument.
Separate firms
78.—(1)  If any 2 or more of the members of a partnership constitute a separate and independent firm, the creditors of such firm are treated as a separate set of creditors and subject to the same rules as the separate creditors of any individual member of the partnership.
(2)  Where any surplus remains after the administration of the assets of the separate firm, the surplus must be carried over to the separate estates of the partners in that firm according to their respective rights in that firm.