HC Deb 18 July 1985 vol 83 c605
Mr. Fletcher

I beg to move amendment No. 148, in page 126, line 26 at end insert—

'(2A) Sums clue from the bankrupt to another party shall not be included in the account taken under subsection (2) above if that other party had notice at the time they became due that a bankruptcy petition relating to the bankrupt was pending.'. This amendment creates an exception to clause 157(2) of the Bill and re-enacts, in terms appropriately modified to take account of the abolition of acts of bankruptcy by the Bill, the exception currently contained in section 31 of the Bankruptcy Act 1914. It has been represented to us that abuse against the concept of equality of treatment of creditors could occur if the relevant part of section 31 of the 1914 Act is not re-enacted. We agree with this.

Mr. Bermingham

Although I welcome this amendment as a step in the right direction it seems that the gremlins have begun on the right road. Unfortunately, they did not follow the tram tracks to the end of the tunnel. This is exactly the same case with regard to preference. If one knows that someone is going bankrupt, there are ways to gain preference. This good amendment seeks to guard against that happening, but the same thing can happen in company liquidations, deeds of assessment, voluntary arrangements and receiverships. I merely ask the Minister to take on board what I, and practitioners who have advised me, say: having got onto the right tracks, perhaps he would push the train a little further down so as to remove the preference in all other liquidations and receiverships.

Amendment agreed to

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