HC Deb 22 July 1985 vol 83 cc788-9
Mr. Millan

I beg to move amendment No. 46, in page 88, line 34, at end insert— '7A. In the case of a trust deed to which paragraphs 6 and 7 of this Schedule apply, the trustee shall, not later than 28 days after final distribution to creditors of the estate which falls to be distributed under the trust deed registered under paragraph 5(D) of this Schedule, send to the accountant in bankruptcy a certificate that the estate has been distributed in accordance with the provisions of the trust deed together with a statement in the prescribed form as to the realisation of the estate and its distribution. 7B(1) Where a trustee under a trust deed to which paragraphs 6 and 7 of this Schedule apply has, in terms of that trust deed, obtained a discharge from the acceding creditors and from the debtor, he may give notice of his discharge to each qualified creditor who has not acceded to the trust deed. (2) Subject to sub-paragraphs (3) and (4) below, where notice has been given in terms of sub-paragraph (1) above then the creditors who did not accede to the trust deed shall be deemed to be parties to the discharge of the trustee. (3) A qualified creditor who has not acceded to the trust deed may within 28 days of the date of the notice given in terms of sub-paragraph (1) above apply to the court for an order setting aside his deemed participation in the discharge of the trustee. (4) The court shall make such an order if, but only if, it is satisfied that the conduct of the trustee has been such as to preclude a deemed discharge from the creditor concerned.'.

Mr. Deputy Speaker

With this we will discuss Government amendment No. 47.

Mr. Millan

I shall not spend a great deal of time discussing this amendment. It deals with a matter that I raised in Committee. The Institute of Chartered Accountants of Scotland drew attention to the fact that schedule 5 did not contain a provision for the discharge of the trustee in dealing with the voluntary trust deeds for creditors. I tabled the amendment to try to deal with that position. The Government's amendment is, no doubt, better drafted and I shall be happy to see it adopted.

I am grateful to the Solicitor-General for responding to the point that I made in Committee.

The Solicitor-General for Scotland

As the right hon. Gentleman indicated, there is no substantial difference between the two amendments. The Government amendment covers one or two minor points of detail not covered by the right hon. Gentleman's amendment. On that basis, and that basis alone, I ask the House to accept our amendment.

Mr. Millan

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment made: No. 47, in page 88, line 36, at end insert— '9. Where the trustee under a protected trust deed has made the final distribution of the estate among the creditors, he shall, not more than 28 days after the final distribution, send to the Accountant in Bankruptcy for registration in the register of insolvencies—

  1. (a) a statement in the prescribed form indicating how the estate was realised and distributed; and
  2. (b) a certificate to the effect that the distribution was in accordance with the trust deed.
10. Where the trustee under a protected trust deed has obtained a discharge from the creditors who have acceded to the trust deed he shall forthwith give notice of the discharge—
  1. (a) by sending the notice by recorded delivery to every creditor known to him who has not acceded to the trust deed; and
  2. (b) by sending the notice to the Accountant in Bankruptcy who shall register the fact of the discharge in the register of insolvencies, and, except where the court makes an order under paragraph 12 below, the sending of such notice to a creditor who has not acceded to the trust deed shall be effective to make the discharge binding upon that creditor.