An individual is declared bankrupt when he has been adjudicated bankrupt and the Court has made a bankruptcy order. The creditor of the debtor or the debtor himself can petition the Court for a bankruptcy order.

When a debtor is adjudicated bankrupt?


Ø   A debtor is adjudicated bankrupt where a creditor of the debtor petitions the Court for a bankruptcy order or the debtor petitions the Court for a bankruptcy order and the Court makes the bankruptcy order.


Creditor’s petition for a bankruptcy order


Ø   A petition for a bankruptcy order may be made by a creditor, by creditors jointly where there are 2 or more creditors or by the trustee, provisional trustee or supervisor of a debtor. A secured creditor may petition the Court for a bankruptcy order where:


(1)  the petition contains a statement that he is willing, in the event of a bankruptcy order being made, to give up his security for the benefit of all the bankrupt’s creditors; or,


(2)  the petition is expressed not to be made in respect of the secured part of the debt and contains a statement by that person of the estimated value at the date of the petition of the security for the secured part of the debt.


Ø   The petition for a bankruptcy order may be made to the Court where:


(1)  the debtor owes the creditor 50,000 rupees or more or, where 2 or more creditors join in the application, the debtor owes a total of 50,000 rupees or more to those creditors between them;


(2)  one of the following grounds for adjudication is established to the satisfaction of the Court:

(a)  failure to comply with a bankruptcy notice;

(b)  departure from Mauritius with intent to defeat or delay a creditor;

(c)  notification in writing by the debtor to a creditor that he has suspended, or proposes to suspend, payment of his debts; or

(d)  admission to creditors that the debtor is insolvent.


(3)  the debt is a specific sum (“une somme certaine”); and,


(4)  the debt is payable either immediately or at some certain future time.


Ø   A debtor against whom a bankruptcy order may be made must be domiciled in Mauritius. He must be present in Mauritius on the day on which a petition for a bankruptcy order is presented or have, at any time in the period of 3 years ending with that day been ordinarily resident, or had a place of residence, in Mauritius or have carried on business in Mauritius.


Ø   The application by a creditor for a bankruptcy order shall be verified by affidavit of the creditor or some other person having knowledge of the facts. It shall be served on the debtor in the prescribed manner and shall call on the debtor to show cause at the hearing of the application as to why the debtor should not be made bankrupt.



Ø   Regarding a secured creditor, the Court will not make a bankruptcy order on the petition of a secured creditor unless the creditor has established that the amount of the debt exceeds the value of the security claimed by the creditor by at least 50,000 rupees.


What is a bankruptcy notice?

Ø   The bankruptcy notice requires the debtor, in relation to the judgment debt or the sum ordered to be paid under a final order or the amount otherwise claimed to be owing:


(1)  to pay the amount owing, including any interest to the date of payment of a debt that carries interest, plus costs;


(2)  to give security for the amount owing that satisfies the creditor or the Court; or,


(3)  to compromise the amount owing on terms that satisfy the Court or the creditor.


Ø    The notice also states what the consequences are if the debtor does not comply with the bankruptcy notice. It must be served on the debtor in Mauritius or, with the Court’s permission, outside Mauritius.


Ø    Where the debtor is served with the bankruptcy notice in Mauritius, the debtor has 14 days to comply with the requirements of the notice or to satisfy the Court that he has a cross-claim against the creditor.


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