HC Deb 06 May 1881 vol 260 cc1958-9
MR. HEALY

asked Mr. Attorney General for Ireland, Whether, under the 249th section of "The Irish Bankrupt and Insolvent Act, 1857," the servant, clerk, labourer, or workman of any bankrupt or insolvent is not entitled to have his debts (not exceeding six months' wages, and not exceeding £30, in the case of a servant or clerk, and not exceeding £5 in the case of a labourer or workman) paid to him in full by the Court of Bankruptcy out of the estate; whether, notwithstanding this section, the official assignees of the Court of Bankruptcy, in cases where an arranging debtor compounds with his creditors under the protection of the Court, do not refuse to allow the servant, &c. of such arranging debtor to prove for more than the amount of the composition offered to the other creditors; whether the official assignees so acting act legally; if so, whether it is not the fact that the Law puts the servants, &c. of an arranging debtor in a far worse position than the servants, &c. of an actual bankrupt; and, whether in that case the Government will take steps to redress this anomaly, by inserting a special Clause dealing with Ireland in the English Bankruptcy Bill, or otherwise?

THE ATTORNEY GENERAL FOR IRELAND (Mr. LAW)

Under the Act in question, persons in the position referred to have no absolute right to payment of their claims in full, as the Question appears to suppose; but the Court has power to make an order to that effect if it thinks fit. The provisions of the Act do not apply to cases of arrangement, the terms of which are left to the parties themselves. I cannot promise any special legislation on the subject.