§ Mr. DewarI beg to move amendment No. 29, in page 66, line 38, at end insert 'or any individual creditor'.
§ Mr. DewarFortunately, the amendments need not detain us long because the Solicitor-General for Scotland has decided to fall into line with admirable advice that he has been given and table more skilfully drafted amendments which have the same effect. Clause 66(7) states:
A debtor who is engaged in trade or business shall be guilty of an offence if … he pledges or disposes of … any property which he has obtained on credit and has not paid for unless he shows that he did not intend to prejudice his creditors.It is suggested that a car might be bought on hire purchase and that the debtor might sell that car and use the proceeds to satisfy some of his creditors. He would not act in any sense to their prejudice, but would specifically prejudice the hire purchase company which would lose the car and the security which it represents.The amendment makes it clear that the phrase "prejudice his creditors" covers the prejudice of any individual creditor. The Minister proposes a different solution in his manuscript amendment No. 74, which includes the words
references to intent to prejudice creditors shall include references to intent to prejudice an individual creditor.That is more elegant, but it has the same intent and I am pleased with it.
§ The Solicitor-General for ScotlandThe purpose of the amendment is to prevent a debtor who has unlawfully disposed of goods on hire purchase from claiming that the disposal, far from prejudicing the general body of creditors, has benefited them at the expense of the unfortunate creditor involved in the hire purchase agreement.
786 Such a case is unlikely to arise frequently, but I accept that it is not beyond the bounds of possibility. I am grateful to the hon. Member for Glasgow, Garscadden (Mr. Dewar) for tabling his amendment. However, acceptance of the amendment in its present form might permit the debtor to establish a defence if he shows either that he did not intend to prejudice the general body of creditors or that he did not intend to prejudice any one of them.
My amendment makes it clear that the debtor must establish that he intended to prejudice neither the general body of the creditors nor any one of them. A similar point might also arise in connection with clause 66(2) and 66(6). The manuscript amendments cover those sections.
§ Amendment, by leave, withdrawn.
§ Amendments made: No. 73, in page 67, line 31, after 'section' insert '(a)'.
§
No. 74, in page 67, line 33, at end insert—
'(b) references to intent to prejudice creditors shall include references to intent to prejudice an individual creditor.'.—[The Solicitor-General for Scotland.]