Abdul Muhammed Law Practice
Abdul Muhammed Law Practice shares 6 sections of the AMCON Act you should pay close attention to when you have to defend against an AMCON debt claim.
1. Section 52(1).
Where the court gives a decision against any body corporate in a debt recovery action under the AMCON Act requiring a debtor company to pay any sum to the AMCON, and such sum is not liquidated or paid over to the AMCON within 90 days from the date of the order for payment, AMCON may apply to the courts to issue a winding up order against the debtor company.
2. Section 6(1) (ua)
Pursuant to an order of the Federal High Court obtained ex-parte AMCON could place any bank account or any other account comparable to a bank account of an AMCON debtor of an eligible financial institution under surveillance.
3. Section 51(2)
Subject to subsection (1) of section 51, it shall not be necessary for the AMCON debtor to commit an act of bankruptcy for AMCON to file a Bankruptcy Petition or for any of the conditions precedent for the grant a receiving order specified under the Bankruptcy Act to be satisfied before the court grants a receiving order against the AMCON debtor.
4. Section 49(1)
Where AMCON has ‘reasonable cause’ to believe that an AMCON debtor or debtor company is the bonafide owner or any movable or immovable property, AMCON could apply to the court by way of an ex-parte application for an order granting possession of the property to AMCON.
5. Section 50(1)
Where AMCON has ‘reasonable cause’ to believe that an AMCON debtor or debtor company has any funds in any account with any eligible financial institution, it may apply to the court my motion ex parte for an order freezing the debtor or debtor company’s account.
6. Section 48(3)
The powers of a receiver acting under the provisions of this section shall be exercisable over all the assets and entire undertaking of the debtor company notwithstanding that only a part of the assets of the debtor company was charged, mortgaged or pledged as security in relation to the eligible bank asset acquired by AMCON.
7. Section 35
For the purpose of the provisions of the Limitation Law of a State or the Limitation Act of the Federal Capital Territory with respect to any debt owed to the Corporation by reason of the acquisition of an eligible bank asset, time shall begin to run and the cause of action deemed to arise, from the date of the purchase of the eligible bank asset by AMCON.
8. Section 33 (1)
As soon as possible, after the acquisition of an eligible bank asset from an eligible financial institution, the eligible financial institution shall notify the relevant debtor, associated debtor and guarantor or surety of the debtor and any other person that the Corporation directs, of the acquisition of the eligible bank asset by the Corporation.
PREVIOUS ARTICLE: 3 amendments to the AMCON Act, plus the principal legislation – all in one place
