HL Deb 01 November 1976 vol 376 cc967-9

[Nos.7 to 9.]

After Clause 5, insert the following new clause:

Automatic discharge of bankrupt.

'(1) Where the court makes an order—

  1. (a)declaring that a debtor's examination under section 15 of the Bankruptcy Act 1914 has been concluded; or
  2. (b)dispensing with his examination under that section,
the court may, if it thinks fit, make an order directing that subsection (2) below shall have effect if he is or has been adjudged bankrupt in the proceedings; and in determining whether to make such an order the court shall have regard to all the circumstances of the case, including in particular, any such facts as are stated in section 26(3) of the said Act of 1914 and whether the debtor has committed any offence under that Act or any other offence connected with his bnakruptcy.

(2) Where the court makes an order under subsection (1) above, then, if the debtor is or has been adjudged bankrupt in the proceedings and—

  1. (a) is not discharged in respect of the adjudication under section 26 of the said Act of 1914 before the fifth anniversary of the date of the adjudication; and
  2. (b) the adjudication is not annulled before that anniversary under section 21(2) or 29 of that Act,
the same results shall ensue as if the court had on that anniversary granted him an absolute order of discharge in respect of the adjudication under the said section 26.

(3) Section 108(1) of the said Act of 1914 (power to review, rescind or vary an order) shall not apply to an order under subsection (1) above, but the court may on the application of the official receiver or the trustee rescind the order at any time before the fifth anniversary of the date of the adjudication.

(4) Where a person has been adjudged bankrupt more than five years before the coming into force of this section and—

  1. (a) has not been discharged in respect of the adjudication under section 26 of the said Act of 1914 before the relevant date (that is to say, the coming into force of this section or the tenth anniversary of the date of the adjudication, whichever is the later); and
  2. (b) the adjudication has not been annulled before the relevant date under section 21(2) or 29 of that Act,
the same results shall ensue as if the court had on the relevant date granted him an absolute order of discharge under the said section 26.

(5) In subsections (2)(a) and (4)(a) above references to discharge are references to discharge by an absolute order of discharge or by the expiration of the period, or satisfaction of any requirement, specified by a suspended or conditional order.'

Clause 6, page 4, line 38, at end insert— (a) the court has not made an order under section (Automatic discharge of bankrupt) (1) above in relation to the adjudication or any such order has been rescinded; and'

Clause 6, page 4, line 42, leave out to apply to the court for a review ' and insert make an application to the court in respect'.

Lord ORAM

My Lords, with the leave of the House I beg to move that this House doth agree with the Commons in their Amendments Nos.7 to 9 en bloc, and with the leave of the House I will also speak to Amendments Nos. 22, 23, 24 and 48. The new clause would have three effects. First, it will empower the court at the time it makes an order concluding the public examination or dispensing with one, to make another order directing that the bankrupt shall have an absolute order of discharge on the fifth anniversary of the date of the adjudication. Secondly, it will empower the Official Receiver or the trustee where such an order has been made, to apply to the court to rescind the order at any time before the discharge becomes effective; that is, before the fifth anniversary of the date of the adjudication. Thirdly, it will grant an absolute discharge on the coming into force of this section, or on the tenth anniversary of the date of adjudication, whichever is the later, to all bankrupts who were adjudged bankrupt more than five years before the coming into force of this section.

Amendment No. 8 has the effect of excluding from the review for the purpose of discharge, cases where the court has made an order granting absolute discharge on the fifth anniversary of the date of the adjudication, and such order has not been rescinded. Amendment No. 9 has the effect merely of changing the description of the procedure under which bankruptcies will be reviewed for the purpose of discharge.

Amendment No. 22 provides that the new clause provided for in Amendment No. 7 shall have effect as if contained in the Bankruptcy Act 1914. Amendment No. 23 has the effect of delaying the coming into force of the Act until such date as may be specified by the Secretary of State by order made by Statutory Instrument. The purpose of Amendment No. 24 is merely to reword the subsection in the interests of clarity without changing its effect in any way. I beg to move.

Moved, That this House doth agree with the Common in the said Amendments—(Lord Oram.)

On Question, Motion agreed to.