§
3 Page 3, leave out lines 3 to 5 and insert—
'(6) The power of the Secretary of State to regulate fees under section 2 of the Courts of Law Fees (Scotland) Act 1895 shall include power to prescribe the fees payable in respect of any matter relating to the functions of the Accountant in Bankruptcy.'.
§ 6 Clause 5, page 5, line 30, after 'amount', insert '(or of one such debt which amounts)'.
§ 7 Clause 6, page 7, line 11, leave out from 'partnership' to 'is' in line 13.
§ 8 Clause 7, page 7, line 31, after 'constituted', insert '(or, where he is already apparently insolvent, constituted anew)'.
§ 16 Page 8, line 31, after 'constituted', insert 'either in accordance with the foregoing provisions of this section or'.
§
17 Page 8, line 36, at end insert—
'(4) Notwithstanding subsection (2) of section 6 of this Act, the apparent insolvency of an entity such as is mentioned in paragraph (a) or (b) of that subsection may be constituted (or as the case may be constituted anew) under subsection (1) above; and any reference in the foregoing provisions of this section to a debtor shall, except where the context otherwise requires, be construed as including a reference to such an entity.'.
§ 19 Clause 10, page 11, line 6, leave out', or at the instance of,'.
§ 21 Clause 11, page 12, line 3, leave out 'an' and insert 'the'.
§ 23 Clause 13, page 13, line 22, after 'Act', insert 'or to subsection (3A) below'.
§
24 Page 13, line 34, at end insert—
'(3A) Where under section 1 (3) of this Act the court removes an interim trustee from office, the court, on the application of the Accountant in Bankruptcy, shall appoint another interim trustee from the list of interim trustees to act in his place.'.
§ 28 Clause 14, page 14, line 42, after 'such', insert 'a'.
§ 42 Clause 18, page 19, line 31, at end insert 'or'.
§ 75 Clause 30, page 30, line 33, after 'to', insert 'no'.
§ 88 Clause 33, page 35, line 6, leave out from 'that' to second 'or' in line 7 and insert 'immediately, or at any other time, after the alienation the debtor's assets were greater than his liabilities;'.
§ 98 Clause 35, page 36, line 29, leave out 'immediately'.
§ 105 Clause 38, page 41, line 16, after 'creditors', insert 'if the rights of the secured creditor or creditors are preferable to those of the permanent trustee'.
§ 106 Page 41, line 38, leave out 'either'.
§ 107 Page 41, line 38, leave out '(i) or'.
§ 118 Clause 51, page 54, line 24, after 'discharged', insert 'under or'.
§ 119 Page 54, line 24, leave out 'subsection (1) above', and insert 'this section or section 69(4) of this Act'.
641§ 120 Page 54, line 27, leave out 'and on payment to him of the prescribed fee'.
§ 121 Page 55, line 27, leave out 'its issue' and insert 'it is made'.
§ 122 Page 55, line 28, after 'subsection', insert '(4) or'.
§ 123 Page 55, line 38, after 'subsection' insert (4) or'.
§ 124 Page 55, line 40, leave out 'subsection (4)(b) above' and insert 'paragraph (b) of the said subsection (4)'.
§ 125 Page 55, line 46, leave out 'subsection (4)' and insert 'paragraph'.
§ 133 Clause 55, page 58, line 7, leave out 'sum deposited therein and' and insert 'amount of that dividend and of'.
§ 134 Clause 56, page 58, line 128, leave out 'Act' and insert 'section'.
§ 135 Clause 58, page 59, line 8, leave out from 'if' to 'the' in line 11.
§ 136 Page 59, line 11, after 'transaction', insert 'is or was extortionate and'.
§ 137 Page 59, line 21, at end insert '; and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this section is, or as the case may be was, extortionate.'.
§ 138 Page 59, line 24, leave out 'that is to say'.
§ 139 Page 59, line 39, leave out subsection (5).
§ 143 Clause 60, page 61, line 16, leave out 'so directed by'.
§ 144 Page 61, line 17, after 'Session', insert 'so directs'.
§ 156 Clause 68, page 65, leave out line 35.
§ 159 Page 66, line 36, leave out 'and'.
§
160 Page 66. line 38, at end insert '; and
unfair preference" means a preference created as is mentioned in subsection (1) of section 35 of this Act by a transaction to which subsection (4) of that section applies.'.
§ 163 Clause 69, page 67, line 17, leave out 'before the coming into force of this section'.
§ 164 Page 67, line 18. after 'sequestrated', insert 'before the coming into force of this section.'.
§
166 Page 68, line 5, at end insert—
'(6A) Unless the context otherwise requires, any reference in any enactment or document to a person's estate being sequestrated under the Bankruptcy (Scotland) Act 1913 shall be construed as, or as including, a reference to its being sequestrated under this Act; and analogous references shall be construed accordingly.'.
§ 167 Page 68, line 9, after 'trustee', insert ', or in a case where no permanent trustee has been elected or appointed an interim trustee,'.
§
168 Page 68, line 10. at end insert—
'(8) Unless the context otherwise requires, any reference in any enactment or document—
§
169 Clause 72, page 68, line 31, leave out from 'force' to 'without' in line 33 and insert 'on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be so appointed for different purposes and for different provisions.
(2A) An order under subsection (2) above may contain such transitional provisions and savings as appear to the Secretary of State necessary or expedient in connection with the provisions brought into force (whether wholly or partly) by the order.
(2B)'.
§ 170 Page 68, line 34, after 'Act,', insert 'this Act'.
§ 171 Page 68, line 35, leave out 'such'.
642§ 172 Page 68, line 36, after 'force', insert 'of section 5 of this Act'.
§ 198 Schedule 4, page 76, line 35, leave out from 'commissioners' to 'or' in line 36.
§
200 Schedule 7, page 86, line 20, at end insert—
'The Judicial Factors (Scotland) Act 1880 (c.4) In section 3 (interpretation), for the words "section 14 or 163 of the Bankruptcy (Scotland) Act 1913" there shall be substituted the words "section 11A of the Judicial Factors (Scotland) Act 1889".
The Bankruptcy Act 1883 (c.52).
.—(1) In subsection (1) of section 32 after the words "adjudged bankrupt" there shall be inserted the words "or his estate has been sequestrated".
(2) After subsection (2) of that section there shall be inserted the following subsection:
(2A) The disqualifications to which a debtor whose estate has been sequestrated in Scotland is subject shall cease to have effect if and when—
(3) After section 34 there shall be inserted the following section—
("Extent of Part II
34A. This Part of this Act (except section 34 above) shall extend to Scotland.".'.
§
201 Page 86, line 22, leave out 'In the Judicial Factors (Scotland) Act 1889' and insert—
'In section 2, at the beginning there shall be inserted the words "Without prejudice to section 1(2) of the Bankruptcy (Scotland) Act 1985 (Accountant of Court to be Accountant in Bankruptcy),".
1A.'.
§
202 Page 87, line 33, at end insert—
'The Third Parties (Rights Against Insurers) Act 1930 (c.25)
2A.—(1) In section 1(2) (rights of third parties against insurers on bankruptcy of insured), after the words "provable in bankruptcy" there shall be inserted the words "(in Scotland, any claim accepted in the sequestration)".
(2) In section 4 (application to Scotland)—
The Exchange Control Act 1947 (c.14)
2B. In paragraph 7 of the Fourth Schedule (application of that Schedule to Scotland), for sub-paragraph (4) there shall be substituted the following sub-paragraph—
(4) In paragraph 6, for the words from 'complies' to 'creditor's debt' there shall be substituted the words 'is a debt which would allow a creditor to be a qualified creditor in accordance with the requirements of subsection (4) of section 5 of the Bankruptcy (Scotland) Act 1985, be a debt in respect of which a creditor may present a petition for sequestration.'.".
The Conveyancing and Feudal Reform (Scotland) Act 1970 (c.35)
2C. In paragraph 9(2)(b) of Schedule 3 ("insolvent" for purposes of standard condition as to default), for the words "163 of the Bankruptcy (Scotland) Act 1913" there shall be substituted the words "11A of the Judicial Factors (Scotland) Act 1889".
The Superannuation Act 1972 (c.11)
2D. In section 5(2) (benefits under civil service superannuation schemes not negotiable), for the words "148" and "1913" there shall be substituted, respectively, the words "31(2) and (3)" and "1985".
The Road Traffic Act 1972 (c.20)
2E. In section 150(2) (effect of bankruptcy of insured or secured persons)—
§
203APage 87, line 46, after "4", insert—
' —(1) In section 106(b) (payments out of fund to employees), in paragraph (b) for the words from "163" to "1913" there shall be substituted the words "11A of the Judicial Factors (Scotland) Act 1889".
(2) In section 122(8) (employee's rights on insolvency of employer), for the word "admitted" there shall be substituted the word "accepted".
(3)'.
§
204 Page 87, line 49, at end insert—
'(4) In section 127(2)(b) (interpretation) for the words from "163" to "1913" there shall be substituted the words "11A of the Judicial Factors (Scotland) Act 1889".
The Land Registration (Scotland) Act 1979 (c. 33)
4A. In section 12(3)(b) (restriction as regards indemnity in respect of registered interest in land), after the word "reduced" where it first occurs, there shall be inserted the words ", whether or not under subsection (4) of section 33, or subsection (5) of section 35, of the Bankruptcy (Scotland) Act 1985 (or either of those subsections as applied by section 615A(5) and 615B of the Companies Act 1985, respectively),".
The Banking Act 1979 (c. 37)
4B. In section 28 (payments to depositors on institution's insolvency)—
The Estate Agents Act 1979 (c. 38)
4C. In section 23(2) (bankrupts not to engage in estate agency work), in paragraph (a) after the word "recalled" there shall be inserted the words "or reduced".
The Value Added Tax Act 1983 (c. 55)
4D. In section 22(4)(a)(ii) ("insolvency" for purposes of refund of tax in cases of bad debts), for the words "163 of the Bankruptcy (Scotland) Act 1913" there shall be substituted the words "11A of the Judicial Factors (Scotland) Act 1889".'.
§ 205 Page 88, leave out lines 1 to 5.
§ 206 Page 88, line 33, after 'applies', insert 'and—
- (a) the winding up of a company has commenced,'.
§ 207 Page 88, line 34, leave out 'a' and insert 'the'.
§ 208 Page 88, line 35, leave out '(a)' and insert '(i)'.
§ 209 Page 88, line 36, after 'the', insert 'date of such'.
§ 210 Page 88, line 37, leave out 'of the winding up of the company'.
§ 211 Page 88, line 38, leave out '(b)', and insert '(ii)'.
§ 212 Page 88, line 38, at end insert—
- '(b) an administration order is in force in relation to a company, an alienation by the company is challengeable by the administrator.'.
§ 213 Page 89, line 1, leave out from '(b)' to 'the' in line 3.
§ 214 Page 89, line 4, leave out '(c)' and insert '(b)'.
§ 215 Page 89, line 12, leave out 'the commencement of' and insert 'the date on which—
- (i) '.
§ 216 Page 89, line 13, after 'company', insert 'commences; or
- (ii) as the case may be, the administration order is made'.
§ 217 Page 89, line 15, leave out 'commencement' and insert 'date'.
§ 217A Page 89, leave out lines 16 to 19.
§ 218 Page 89, line 20, after '(4)', insert', (4A)'.
644§ 219 Page 89, line 28, after 'liquidator', insert 'and, after the coming into force of Chapter III of part II of the Insolvency Act 1985, an administrator appointed thereunder'.
§
220 Page 89, line 28, at end insert—
'(6) In subsections (1) to (3) above, any reference to an administrator or to an administration order—
(7) This Section extends to Scotland only.'.
§ 221 Page 89, line 29, leave out 'In the winding up of a company registered in Scotland'.
§ 222 Page 89, line 31, leave out from 'preferences)' to end of line 13 on page 90 and insert 'applies for the purposes of this Act as it applies for the purposes of that Act but as if—
- (a) for any reference to a debtor there is substituted a reference to a company;
- (b) in subsection (1), for paragraphs (a) to (c) there are substituted the words "the commencement of the winding up of the company or the making of an administration order in relation to the company.";
- (c) in subsection (4) for paragraphs (a) and (b) there are substituted the following paragraphs—
- "(a) in the case of a winding up—
- (i) any creditor who is a creditor by virtue of a debt incurred on or before the date of commencement of the winding up; or
- (ii) the liquidator; and (b) in the case of an administration order, the administrator.";
- (d) in subsection (6), for the words from the beginning to "1889" there are substituted the words "A liquidator and an administrator"; and
- (e) for subsection (7) there is substituted the following subsection—
(7) This section shall be construed as one with Part XX of the Companies Act 1985; and subsection (6) of section 615 A of that Act shall apply in relation to the foregoing provisions of this section as it applies in relation to subsections (1) to (3) of that section.".
(2) This section applies to Scotland only.'
§
224 Page 91, line 36, at end insert—
'(5) Any reference in the foregoing provisions of this paragraph to a debtor shall be construed as including a reference to an entity whose apparent insolvency may, by virtue of subsection (4) of section 7 of this Act, be constituted under subsection (1) of that section.
(6) This paragraph shall apply in respect of arrestments and poindings which have been executed either before or after the coming into force of this paragraph.
(7) The repeal of the Bankruptcy (Scotland) Act 1913 shall not affect the equalisation of arrestments and poindings (whether executed before or after the coming into force of this paragraph) in consequence of the constitution of notour bankruptcy under that Act.'.
§ 225 Page 91, leave out from line 37 to line 20 in page 92.
§ 226 Page 92, Une 35, leave out 'power of attorney, commission, factory.'
§ 227 Schedule 8, page 93, line 13, at end insert—
| '52 & 53 Vict. c. 39. | The Judicial Factors (Scotland) Act 1889. | In section 5, the words ", and of the Bankruptcy Acts and Cessio Acts," and the words "and accountant in Bankruptcy respectively,". |
| In section 14, the proviso. | ||
| Sections 15 and 16. | ||
| Section 22. | ||
| 57 & 58 Vict. c. 60. | The Merchant Shipping Act 1894. | Section 36.'. |
§ 228 age 93, line 24, at end insert—
| '20&21 Geo. 5.c. 25. | The Third Parties (Rights Against Insurers) Act 1930. | In section 4, paragraph (a).'. |
§ 229 Page 93. line 26, at end insert—
| '11 & 12 Geo. 6. c. 39. | The Industrial Assurance and Friendly Societies Act 1948. | In section 2(4), the words "where the receiving order or the award of sequestration of his estate was made after the passing of this Act".'. |
§ 231 Page 93, line 33, at end insert—
| '1969 c. 48. | The Post Office Act 1969. | In Schedule 4, paragraph 22.'. |
§ 232 Page 93, leave out lines 37 and 38 and insert—
| '1972 c. 20. | The Road Traffic Act 1972. | In section 150(2), the words " 'company' includes a limited partnership, and".'. |
§ 233 Page 93, line 47, column 3, at beginning insert 'In'.
§ 235 Page 93, line 50, column 3, at beginning insert 'In'.
§ 236 Page 94, line 11, at end insert—
| '1979 c. 37. | The Banking Act 1979. | In section 28(7)(c) the words "where the sequestration is declared at an end by a competent court". |
| 1979 c. 54. | The Sale of Goods Act 1979. | In section 61(4), the words ", and whether he has become a notour bankrupt or not".'. |
§ I appreciate that this is a large group of amendments, but they all consist of amendments of a purely drafting nature and those which make necessary technical changes to the Bill and consequential amendments to other Acts. I do not propose to detain your Lordships unnecessarily by describing each amendment, but if any noble Lord wishes me to explain any of these amendments, or indeed any other amendments as I proceed, I shall be pleased to attempt to do so.
§ I should like, however, to draw your Lordships' attention to Amendment No. 169, which has the effect of providing for the Bill to be commenced by order made by the Secretary of State. At present, the Bill provides that it will commence six months after the date of enactment, but having regard to the need to bring different provisions in at different times it was considered necessary to commence the Bill by order. Your Lordships may wish to know that we are at present aiming to commence most of the Bill on 1st April, 1986. I hope that it will prove possible to meet this target but your Lordships will appreciate that the exact date will depend upon a number of factors, such as the making of regulations and court rules and upon the necessary preparations being made by the professional bodies and in the office of the accountant of bankruptcy. I beg to move.
§ Moved, That this House do agree with the Commons in the said amendment—(Lord Cameron of Lochbroom.)
§ On Question Motion agreed to.