HL Deb 16 October 1985 vol 467 cc663-5

60 After Clause 26, insert the following new clause: 'Discharge of interim trustee. (1)On receiving a copy of the Accountant in Bankruptcy's determination sent under subsection (3)(b)(i) of section 26 of this Act the interim trustee may apply to him for a certificate of discharge. (2) The interim trustee shall send notice of an application under subsection (1) above to the debtor and to the permanent trustee and shall inform the debtor—

  1. (a) that he, the permanent trustee or any creditor may make written representations relating to the application to the Accountant in Bankruptcy within a period of 14 days after such notification;
  2. (b) that the audited accounts of his intromissions (if any) with the debtor's estate are available for inspection at the office of the interim trustee and that a copy of those accounts has been sent to the permanent trustee for insertion in the sederunt book; and
  3. (c) of the effect mentioned in subsection (5) below.
(3) On the expiry of the period mentioned in subsection (2(a) above the Accountant in Bankruptcy, after considering any representations duly made to him, shall—
  1. (a) grant or refuse to grant the certificate of discharge; and
  2. (b) notify (in addition to the interim trustee) the debtor, the permanent trustee, and all creditors who have made such representations, accordingly.
 (4) The interim trustee, the permanent trustee, the debtor or any creditor who has made representations under subsection (2)(a) above may, within 14 days after the issuing of the determination under subsection (3) above, appeal therefrom to the sheriff and if the sheriff determines that a certificate of discharge which has been refused should be granted he shall order the Accountant in Bankruptcy to grant it; and the sheriff clerk shall send a copy of the decree of the sheriff to the Accountant in Bankruptcy. (5) The grant of a certificate of discharge under this section by the Accountant in Bankruptcy shall have the effect of discharging the interim trustee from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the interim trustee in exercising the functions conferred on him by this Act.

(6) Where a certificate of discharge is granted under this section, the permanent trustee shall make an appropriate entry in the sederunt book. (7) Where the interim trustee has died, resigned office or been removed from office, then once the accounts of his intromissions (if any) with the debtor's estate are or have been submitted to and audited by the Accountant in Bankruptcy, the Accountant in Bankruptcy shall issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee and the provisions of subsection (4) of section 26 of this Act and the foregoing provisions of this section shall, subject to any necessary modifications, apply in relation to that interim trustee or, if he has died, to his executor as they apply in relation to an interim trustee receiving a copy of such a determination under subsection (3)(b)(i) of that section.'.

126 Clause 54, page 57, line 19, leave out 'known to the permanent trustee' and insert 'who have made such representations'.

127 Page 57, line 21, after 'creditor', insert 'who has made representations under subsection (2)(a) above'.

128 Page 57, line 24, after 'discharge', insert 'which has been refused'.

129 Page 57, line 25, leave out 'do so' and insert 'grant it'.

130 Page 57, line 28, after 'discharge', insert 'under this section'.

131 Page 57, line 33, at end insert 'including, where he was also the interim trustee, the functions conferred on him as interim trustee'.

132 Page 57, line 34, after 'granted', insert 'under this section'.

199 Schedule 5, page 82, line 42, 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. Creditors not acceding to protected trust deed 11. A creditor who has not acceded to a protected trust deed may, not more than 28 days after notice has been sent under paragraph 10 above, apply to the court for an order under paragraph 12 below. 12. Where, on an application by a creditor under paragraph 11 above, the court is satisfied (on grounds other than those on which a petition under paragraph 7(1)(b) above was or could have been presented by that creditor) that the intromissions of the trustee under the protected trust deed with the estate of the debtor have been so unduly prejudicial to that creditor's claim that he should not be bound by the discharge it may order that he shall not be so bound. 13. Where the court makes an order under paragraph 12 above, the clerk of court shall send a copy of the order to—
  1. (a) the trustee; and
  2. (b) the Accountant in Bankruptcy who shall register the copy of the order in the register of insolvencies.'.

These amendments make technical changes to the Bill. They are concerned with the discharge of interim trustees, permanent trustees and trustees under protective trust deed. Unless noble Lords wish me to detail them, I simply 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.