Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Wednesday, 11 November 1914

Senator KEATING (Tasmania) . - In accordance with notice I move -

That the words " the presentation of a petition," in sub-clause 4, be left out, with a view to insert in lieu thereof the words " an available act of bankruptcy."

If my amendment is passed sub-clause 4 will read -

Nothing in this 'section shall affect or prejudice the title. or interest of any person who, before sequestration, and without notice of an available act of bankruptcy-

In clause 50 it is- provided 'that a debtor commits an act of bankruptcy in each of the cases enumerated in paragraphs a to h. The mere presentation of a petition against a "man is nob the only ground on which a man- may be bankrupted. If he commits any of the acts- enumerated in clause 50 he has committed what is known as an available, act of bankruptcy, and if that is known by a person it should be equivalent even to knowledge of the presentation of a petition. A man may no. be aware of the presentation of a petition, but he may be aware that a debtor has committed an available act of bankruptcy, and to all intents and purposes he is just as well aware that the man is bankrupt or on the verge of bankruptcy, as if he knew that there was a petition being presented against him.

Senator Senior - Has not sub-clause 4 reference' to the presentation of a petition under clause 87?

Senator KEATING - No, it. is the presentation of a petition to bankrupt a man, and the expression is used again in the last line of sub-clause 1 of clause 90. I think it is a common thing on the part of the draftsmen of ' Bankruptcy Acta to make, not merely knowledge of the presentation of a petition, but knowledge of the existence of an available act of bankruptcy, quite sufficient to put a man on his guard, and to prevent him taking advantage of that knowledge to trade with a bankrupt or with persons through him to the detriment of the other creditors. The effect of this will be to make the man not merely liable to lose the interest he endeavours to acquire when he is conscious of a petition having been filed against a debtor, but equally liable to lose that interest which he has not bona fide endeavoured to acquire when it is known to him that a man is practically in bankruptcy, because he has committed an available act of bankruptcy.

Suggest corrections