§ [Nos. 18 and 19]
§ Clause 16, page 14, line 6, at beginning insert "Subject to subsection (3) below"
§
Clause 16, page 14, line 26, at end insert—
(3) Where a county court makes an attachment of earnings order to secure the payment of a judgment debt and also, under section (Extension of county court's power to make administration order) (1) of this Act orders the debtor to furnish to the court a list of all his creditors, sums paid to the collecting officer in compliance with the attachment of earnings order shall not be dealt with by him as mentioned in subsection (1) above, but shall be retained by him pending the decision of the court whether or not to make an administration order and shall then be dealt with by him as the court may direct.
§ THE LORD CHANCELLORMy Lords, if no noble Lord objects, I beg to move that this House doth agree with the Commons in Amendments Nos. 18 and 19. Clause 16(1) requires the collecting officer to whom the employer pays deductions made under an attachment of earnings order to deal with the money as if it has been paid by the debtor. This means that where the order has been made in respect of a judgment debt the collecting officer will pay the money over to the judgment creditor. Where, however, the attachment order has been made for the purpose of diverting the debtor's earnings pending the consideration 1006 of the question whether an administration order should be made, it would clearly be unfair to pay the money over to the creditor on whose application the attachment order was made. If the court ultimately decides to make an administration order, the money should be applied in payment of all the proved debts.
Clause 16(1) is therefore made subject to a new subsection (3), which provides that where the court makes an attachment order, and at the same time orders the debtor to furnish a list of all his creditors as a necessary preliminary to the making of an administration order under the clause, deductions paid to the collecting officer under the attachment order are to be retained by him pending the decision of the court whether or not to make an administration order, and to be dealt with as the court may direct.
§ Moved, That this House doth agree with the Commons in the said Amendments.—(The Lord Chancellor.)
VISCOUNT COLVILLE OF CULROSSMy Lords, this is, to coin a phrase, a pre-consequential Amendment on the new clause down as Amendment No. 31. It is plainly a sensible arrangement. Indeed, the whole point of the new Clause 31 will be vitiated for the short time concerned while the list is being collected and the court is deciding whether or not to make an administration order; and there are questions of preference of one creditor over another to be taken into account. I am sure that this is the right thing to do and I welcome the Amendments.
§ On Question, Motion agreed to.