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Wednesday, 23 March 1966

Mr SNEDDEN (Bruce) (AttorneyGeneral) . - I propose to move two amendments which relate to clauses 82 and 109, the relevant portions of which read -

Clause 82. (1.) Subject to this Division, all debts and liabilities, present or future, certain or contingent, to which a bankrupt was subject at the date of the bankruptcy, or to which he may become subject before his discharge by reason of an obligation incurred before the date of the bankruptcy, are provable in his bankruptcy. (2.) Demands in the nature of unliquidated damages arising otherwise than by reason of a contract, promise or breach of trust are not provable in bankruptcy.

Clause 109. (1.) Subject to this Act and sections 221 P and 221YU of the Income Tax and Social Services Contribution Assessment Act 1936-1964, the trustee shall, before applying the proceeds of the property of the bankrupt in making any other payments, apply those proceeds in the following order: -

(a)   firstly, in payment of an amount to the petitioning creditor equal to so much of the amount lodged by the creditor under section 48 of this Act as has been used for meeting the expenses referred to in that section;

(b)   secondly, in the order prescribed by the rules, in payment of the taxed costs of the petitioning creditor and the costs, charges and expenses of the administration of the bankruptcy, including the remuneration and expenses of the trustee;

(c)   thirdly, in payment of liabilities incurred in good faith before the date of the bankruptcy by a controlling trustee in exercise of the powers conferred on him by Part X. and any remuneration due to that controlling trustee;

(d)   fourthly, in payment of liabilities, commitments, expenses or remuneration referred to in section 114 of this Act;

(e)   fifthly, in the case of the estate of a deceased debtor whose estate is being administered under Part XI. in payment of proper funeral and testamentary expenses;

(f)   sixthly, in payment of amounts (including amounts in respect of long service leave, annual leave or recreation leave), not exceeding in the case of any one employee the sum of Three hundred pounds, due to or in respect of any employee of the bankrupt, whether remunerated by salary, wages, commission or otherwise, in respect of services rendered to or for the bankrupt before the date of the bankruptcy;

(g)   seventhly, in payment of amounts, not exceeding in any individual case One thousand pounds, in respect of compensation, being compensation the liability for which accrued before the date of the bankruptcy, under any Act or State Act or Ordinance of a Territory of the Commonwealth providing for compensation for personal injury by accident arising out of, or in the course of, employment;

(h)   eighthly, in payment of any sum payable under section 113 of this Act;

(i)   ninthly, in payment of assessed income tax or income tax and social services contribution, being tax or tax and contribution assessed under any Act or State Act or Ordinance of a Territory of the Commonwealth before the date of the bankruptcy, not exceeding in the whole one year's assessment; and

(j)   lenthly, in payment of -

(i)   such preferences, priorities or advantages in favour of any creditor or group of creditors as regards any other creditor or group of creditors; and

(ii)   such costs, charges and expenses incurred in the interests of creditors before the date of the bankruptcy, as a general meeting of creditors, by special resolution, resolves. (2.) Paragraph (g) of the last preceding subsection docs not apply to the extent to which the bankrupt is indemnified under a contract of insurance against the liability referred to in that paragraph. (3.) A special resolution shall not be deemed to have been duly passed for the purposes of paragraph 0) of sub-section (1.) of this section unless the notice convening the meeting at which it was passed contained a copy of the proposed resolution. (4.) A payment shall not be made under paragraph (j) of sub-section (1.) of this section until twenty-eight days after-

(a)   a certificate that the notice convening the meeting was duly forwarded to the bankrupt and to each person shown as a creditor in the statement of affairs; and

(b)   a copy of the special resolution, have been filed in the Court.

I seek leave to move the two amendments together.


There being no objection, leave is granted.

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