Acts Amendment (Insolvent Estates) Act 1984 (WA)

WESTERN AUSTRALIA.

ACTS AMENDMENT

(INSOLVENT ESTATES).

No. 72 of 1984.

AN ACT to amend the Administration Act 1903, the Married Women's Property Act 1892 and the Supreme Court Act 1935.

[Assented to 26 November 1984.]

BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and the Legislative Assembly of Western Australia, in this present Parliament assembled, and by the authority of the same, as follows:—

PART I.-PRELIMINARY.

1. This Act may be cited as the Acts Amendment Short title.

(Insolvent Estates) Act 1984.

No. 72.] Acts Amendment (Insolvent [1984.

Estates).

PART II.-ADMINISTRATION ACT 1903.

Principal Act.

Reprinted as 2. In this Part the Administration Act 1903 is

approved e r referred to as the principal Act.

23 December

1980 and

amended by

Act No. 48

of 1982.

Section 3

Section 3 of the principal Act is amended by

inserting after the definition of "Court" the follow-

ing definition-

amended. 3.

lt "Insolvent", in relation to the estate of a deceased person, means insufficient for the payment in full of the debts and liabilities of the estate of the deceased person. ".

Section 10 4.

Section 10 of the principal Act is amended by

inserting after subsection (3) the following

subsections

amended.

(4) An executor or administrator of the estate of a person who dies on or after the day on which the Acts Amendment (Insolvent Estates) Act 1984 comes into operation shall not have or exercise any right to give preference as between creditors standing in equal degree.

(5) Notwithstanding subsection (4), an executor or administrator who-

(a)	in good faith and at a time when he has no reason to believe that the estate of the deceased is insolvent, pays a debt, other than a debt payable to himself in his own right, of a person who is a creditor of the estate; or
(b)	not being an administrator to whom letters of administration have been granted solely by reason of his being a creditor, in good faith and at a time when he has no reason to believe that the estate of the deceased

1984.] Acts Amendment (Insolvent [No. 72.

Estates).

is insolvent, pays a debt payable to himself in his own right as a creditor of the estate,

shall not, if it subsequently appears that the estate is insolvent, be liable to account to a creditor of the same degree as the paid creditor for the sum so paid. ".

5.    The principal Act is amended by inserting isx.,:g.g:20A

after section 10 the following section-

10A. (1) Where the estate of a person =g.nt

dying on or after the day on which the Acts Amendment (Insolvent Estates) Act 1984 comes into operation is insolvent, his real and personal estate shall be administered in accordance with the rules set out in the Fifth Schedule.

(2) This section binds the Crown. ".

6. Section 13 of the principal Act is amended in g m e cgodne (13 .

subsection (1) by deleting "nine and ten" and

substituting the following-

" 9, 10 and 10A ".

n ac e t inoge a3 .

7.    Section 23 of the principal Act is amended in sa e

subsection (1) by deleting "In" and substituting

the following-

" Subject to section 10A, in ".

8. The principal Act is amended by adding after ESile g ieldule

added.

the Fourth Schedule the following Schedule—

tt

FIFTH SCHEDULE. Section 10A.

RULES AS TO PAYMENT OF DEBTS AND

LIABILITIES OF INSOLVENT ESTATES.

1. Funeral, testamentary and administration expenses

have priority.

No. 72.] Acts Amendment (Insolvent [1984.

Estates).

A demand, in respect of which proceedings are maintainable against an estate, shall be provable in the administration of the estate, notwithstanding that it is a demand in the nature of unliquidated damages arising otherwise than by a contract, promise or breach of trust.

2.

Subject to these rules, the same rules shall prevail and be observed as to

3.

(a)	the respective rights of secured and unsecured creditors;
(b)	debts and liabilities provable;
(c)	the valuation of annuities and future and con- tingent liabilities; and
(d)	the priorities of debts and liabilities,

as are, at the time of the death of the deceased person, in force under the Commonwealth law of bankruptcy with respect to the assets of persons adjudged bankrupt. ".

PART III.—MARRIED WOMEN'S PROPERTY

ACT 1892.

Section 3

repealed. 9. Section 3 of the Married Women's Property

Reprinted as	Act 1892 is repealed.
approved 7 March 1980.

PART IV.—SUPREME COURT ACT 1935.

Section 25	10.	Section 25 of the Supreme Court Act 1935 is
amended.

Reprinted as amended by repealing paragraph (1).

approved 12

May 1980

and

amended by

Acts Nos. 3,1,

10 and 47 of

1982,47 of

1983 and 9 of

1984.

Transitional.

11.

Notwithstanding the repeal of paragraph (1) of section 25 of the Supreme Court Act 1935 by section 10 of this Act, that paragraph shall continue to apply for the purpose of the administration by the Court of the assets of any person who has died before the coming into operation of the Acts Amend- ment (Insolvent Estates) Act 1984 and whose estate has proved or proves to be insufficient for the payment in full of his debts and liabilities.