HC Deb 13 August 1913 vol 56 cc2601-4

  1. (1) All transactions by a bankrupt with any person dealing with him bona fide and 2602 for value and without knowledge of his bankruptcy, in respect. of property, whether real or personal, acquired by the bankrupt after the adjudication shall, if completed before any intervention by the trustee, be valid against the trustee, and any estate or interest in such property which by virtue of the enactments relating to bankruptcy is vested in the trustee shall determine and pass in such manner and to such extent as may be required for giving effect to any such transaction, and, where any such transaction is a transaction in the course of any trade or business carried on by the bankrupt, it shall be valid against the trustee, whether or net the person dealing with the bankrupt had knowledge of the bankruptcy. This Subsection shall apply to transactions with respect to real property completed before the commencement of this Act in any case where there has not been any intervention by the trustee before that date. For the purposes of this Sub-section the receipt of any money, security, or negotiable instrument from, or by the order or direction of, a bankrupt by his banker, and any payment made to, or by the order or direction of, a bankrupt by his banker, shall be deemed to be a transaction by the bankrupt with such banker dealing with him for value.
  2. (2) Where a banker has ascertained that a person having an account with him is an undischarged bankrupt then, unless the banker is satisfied that the account is on behalf of some other person, it shall be his duty forthwith to inform the trustee in bankruptcy or the Board of Trade of the existence of the account, and thereafter he shall not make any payments out of the account except under an order of the Court or in accordance with instructions from the trustee in bankruptcy, unless by the expiration of one month from the date of giving the information no instructions have been received from the trustee.
  3. (3) In the event of a second or subsequent receiving order being made against a bankrupt, any property acquired by him since he was last adjudged bankrupt which at the date when the subsequent petition was presented had not been distributed amongst the creditors in such last preceding bankruptcy, shall (subject to any disposition thereof made by the official receiver or trustee in that bankruptcy, without knowledge of the presentation of the subsequent petition and subject to the provisions of Sub-section (1) of this Section) vest in the trustee in the subsequent. bankruptcy, but any unsatisfied 2603 balance of the debts provable under the last preceding bankruptcy may be proved in the subsequent bankruptcy by the trustee in the last preceding bankruptcy.
  4. (4) Where the trustee in any bankruptcy receives notice of a subsequent petition in bankruptcy against the bankrupt, he shall hold any property then in his possession which has been acquired by the bankrupt since he was adjudged bankrupt until the subsequent petition has been disposed of, and if on the subsequent petition an order of adjudication is made he shall transfer all such property or the proceeds thereof (after deducting his costs and expenses) to the trustee in the subsequent bankruptcy.
  5. (5) Where a person has been adjudged bankrupt, nothing in any enactment relating to bankruptcy shall affect the rights of any person making title in good faith and for valuable consideration, and without knowledge of the trustee's title, through or under a person who has acquired from the bankrupt property which the bankrupt himself acquired after he was adjudged bankrupt.

Lords Amendment: In Sub-section (1), leave out the words "and without knowledge of his bankruptcy."

Mr. C. BATHURST

I should like to ask for some explanation of the Amendment. As the Bill went to the Lords it was necessary to prove knowledge of bankruptcy in all cases except where the transaction was one in the course in the trade or business carried on by the bankrupt. It appears now that it will not be necessary to prove knowledge of bankruptcy in any case whatever, whether it is in respect of the business carried on by the bankrupt or otherwise. Perhaps the hon. Gentleman will give some explanation of what appears to be a, somewhat material alteration.

The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Mr. J. M. Robertson)

This Amendment was promised on the Report stage in this House to the hon. and learned Gentleman (Mr. Cassel). It gives effect to concessions promised to be made by the Board of Trade. This is the form in which it has been considered proper to make it.

Question, "That this House doth agree with the Lords in the said Amendment," put, and agreed to.

Lords Amendments:—

Leave out the words "and, where any such transaction is a transaction in the course of any trade or business carried on by the bankrupt, it shall be valid against the trustee, whether or not the person dealing with the bankrupt had knowledge of the bankruptcy."

After the word "payment" ["and any payment made"], insert the words "and any delivery of any security or negotiable instrument."

Leave out the words "(5) Where a person has been adjudged bankrupt, nothing in any enactment relating to bankruptcy shall affect the rights of any person making title in good faith, and for valuable consideration, and without knowledge of the trustee's title, through or under a person who has acquired from the bankrupt property which the bankrupt himself acquired after he was adjudged bankrupt."

Lords Amendments agreed to.