The Gazette 1973

Bankruptcy Law Committee Report SUMMARY OF RECOMMENDATIONS

able by instalments if the final instalment is not payable within two years from the date of the approval of the offer. The Court should have full control over compo- sitions. A bankrupt should be entitled to his discharge and the revesting of his estate on the lodgment of the cash and/or the bills with the Official Assignee. A claim by a creditor having a corrupt agreement with a bank- rupt should be voia and both should be guilty of an offence. Chapter 6: Bankrupt Dying after Adjudication— Major Recommendation If a debtor dies after adjudication the bankruptcy should continue. Chapter 7: Summonses, Warrants for Committal and Examinations— Major Recommendations A person in prison pursuant to an order of the Court should, if required by its direction, be brought before it. If he satisfies the Court that he has complied with its lawful requirements he should be released, otherwise he should be taken back to prison. While examinations should normally be held in public the Court may direct that the whole or any part of any sitting should be held in camera. Chapter 8: Warrants— Major Recommendations A search warrant should be necessary to enter prem- ises other than the bankrupt's. Chapter 9: Vesting (including Election and Disclaimer) —Major Recommendations There should be absolute vesting in the Official Assig- nee only. The dual system of election and disclaimer should be abolished and a single system of disclaimer substituted. Power should be given to the Court to make an order for possession to the person entitled under the disclaimer and to vest property in him. Notification of a disclaimer should be given to the Registrar of Titles. Cahpter 11: Registration of Lands, Deeds, Convey- ances, etc.— Major Recommendations A certificate under the seal of the Court should be issued to the Official Assignee as evidence of the vesting of a bankrupt's property in him, this certificate to be registrable as if it were a conveyance. Chapter 12: Excepted Articles— Major Recommen- dations The monetary limit for excepted articles should be increased from £20 to £100 or such further sum as the Court may allow. Chapter 13: Clauses in Agreements or Leases which (1) Provide for Forfeiture or (2) Prohibit Aliena- tion— Major Recommendations The Official Assignee should be in a position to dis- pose of a bankrupt's interest in a lease. Every covenant or provision for forfeiture in a lease on the bankruptcy of the lease should be void against the Official Assignee. A condition in a hire purchase agreement providing for the termination of the agreement on the bankruptcy of the hirer should also be void against the Official Assignee.

The Report of the Bankruptcy Law Committee under the Chairmanship of Mr. Justice Budd, was published on the 3rd October 1973. Among the more important recommendations are the following. Section I, Paragraph 15, Sub-section 1 An examination of the existing law contained in the Bankruptcy Acts of 1857 and 1872 was undertaken. The general principles were found to be satisfactory and have been retained. "Where considered suitable, we have taken some ideas from contemporary bankruptcy, and, having adapted them to Irish conditions, have included them in the draft Bill contained in Appendix D. In the light of decisions of the Irish Courts, we have found it necessary to introduce a number of new provisions and to amend some of the existing ones. In doing so, we have borne in mind the necessity in doing justice to the creditors and the bankrupts, by keeping a balance be- tween the harshness of creditors and the fraud of debtors. Constant reference is also made to reports and recommendations made by Committees established in England, relating to Bankruptcy Law. As there are no modern books available on Irish bankruptcy law, we have made our Report as extensive as possible." Chapter 2: Petitions, Acts of Bankruptcy and Adjudi- cation— Major Recommendations (1) Petition to Court —This procedure should be re- tained. Petition and adjudication should be contem- poraneous. The minimum amount of the petitioning creditor's debt should be increased to £100. An act of bankruptcy should be available for three months only. The debt of the petitioning creditor should be a liqui- dated sum. A secured creditor should be able to petition for adjudication. (2) Acts of Bankruptcy —Levying of execution by the seizure of a debtor's goods or a return of no goods made by the Sheriff or County Registrar, whether by endorse- ment on the order or otherwise, should be an act of bankruptcy. A debtor's summons should be renamed a "Bankruptcy Summons". The giving of a fraudulent preference should be an act of bankruptcy. (3) Adjudication —Immediate seizure of a bankrupt's property should be made on adjudication. Only one statutory sitting of the Court is necessary. A debtor in prison under the Enforcement of Court Orders Act 1926 should be released on adjudication. A statement of affairs should be less complicated. The assets of a debtor adjudicating himself bankrupt should not be less than £100. Chapter 3: Composition after Bank r up t cy— M a j or Recommendations The system of paying compositions after bankruptcy should be continued. The second composition sitting should be abolished. In deciding on an offer any creditor whose debt is below £20 in number and value should be ignored. An instalment of a composition should not be secured by a bill, note or other security signed by or enforceable against the bankrupt alone. The Court should have discretion to refuse to accept an offer pay-

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