Section 57, The Bankruptcy Act, 2009

(1) Where any part of the property of the bankrupt consistsof land or any tenure burdened with onerous covenants, shares or stocks in companies, unprofitable contracts, or of any other property that is unsaleable, or not readily saleable, by reason of its binding the possessor to the performance of any onerous act or to the payment of any sum of money, the trustee, notwithstanding that he has endeavoured to sell, or has taken possession of the property or exercised any act of ownership in relation thereto, but subject to the provisions of this section may, by writing signed by him, at any time within twelve months after the first appointment of a trustee or such extended period as may be allowed by the court, disclaim the property; but, where the property has not come to the knowledge of the trustee within one month after the appointment, he may disclaim the property at any time within twelve months after he has become aware of it or such extended period as may be allowed by the court. (2) The disclaimer shall operate to determine, as from the date of disclaimer, the rights, interests and liabilities of the bankrupt and his property in or in respect of the property disclaimed, and shall also discharge the trustee from all personal liability in respect of the property disclaimed as from the date when the property vested in him, but shall not, except so far as is necessary for the purpose of releasing the bankrupt and his property and the trustee from liability, affect the rights or liabilities of any other person. 46 47 Seizure of property of Sale of property out of Sierra Leone. Appropriation of portion of pay etc. to Vesting and transfer of Disclaimer of onerous (3) A trustee shall not be entitled to disclaim a lease without the leave of the court, except in prescribed cases, and the court may, before granting such leave, require such notices to be given to persons interested and impose such orders with respect to fixtures, tenant’s improvements and other matters arising out of the tenancy, as the court thinks just. (4) The trustee shall not be entitled to disclaim any property in pursuance of this section in any case where an application in writing has been made to the trustee by any person interested in the property requiring him to decide whether he will disclaim or not and the trustee has, for a period of twenty-eight days after the receipt of the application, or such extended period as may be allowed by the court, declined or neglected to give notice whether he disclaims the property or not; and in the case of a contract, if the trustee after the application does not within the period or extended period disclaim the contract, he shall be deemed to have adopted it. (5) The court may, on the application of any person who is against the trustee, entitled to the benefit or subject to the burden of a contract made with the bankrupt, make an order rescinding the contract on such terms as to payment by or to either party of damages for the non-performance of the contract, or otherwise, as the court thinks equitable, and any damages payable under the order to the person may be proved by him as a debt under the bankruptcy. (6) The court may, on application by any person claiming either to have any interest in any disclaimed property or to be under any liability not discharged by this Act in respect of any disclaimed property and on hearing the person make an order for the vesting of the property in or delivery thereof to any person entitled to it, or to whom it is just that it should be delivered by way of compensation for such liability, or a trustee for him, and on such terms as the court thinks just: and on such vesting order being made, the property comprised in it shall vest accordingly in the person named in it in that behalf without any conveyance or assignment for the purpose; but where the property disclaimed is a lease-hold, the court shall not make a vesting order in favour of any person claiming under the bankrupt, whether as under-lessee or as mortgagee by demise except upon the terms of making that person- (a) subject to the same liabilities and obligations as the bankrupt was subject to under the lease in respect of the property at the date when the bankruptcy petition was filed; or (b) if the court thinks fit, subject only to the same liabilities and obligations as if the lease had been assigned to that person at that date, and in either event (if the case so requires) subject only to the same liabilities and obligations as if the lease had comprised only the property comprised in the vesting order. (7) Any mortgagee or under-leasee declining to accept a vesting order upon such terms shall be excluded from all interest in and security upon the property, and if there is no person claiming under the bankrupt who is willing to accept an order upon such terms, the court may vest the bankrupt’s estate and interest in the property in any person liable either personally or in a representative character and either alone or jointly with the bankrupt to perform the lessee’s covenants in the lease, freed and discharged from all estates, incumbrances and interests created in it by the bankrupt. (8) Where on the release, removal, resignation or death of a trustee in bankruptcy the official receiver is acting as trustee, he may disclaim any property which might be disclaimed by a trustee under this section, notwithstanding that the time prescribed by this section for such disclaimer has expired; but the disclaimer shall be exercisable only within twelve months after the official receiver has become trustee in the circumstances referred to or has become aware of the existence of the property whichever period expires last. (9) Any person injured by the operation of a disclaimer under this section shall be deemed to be a creditor of the bankrupt to the extent of the injury and may accordingly prove it as a debt under the bankruptcy.