Bankruptcy Act 1954

Legislation au C1954A00083 Not in force Act

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BANKRUPTCY.

 

No. 83 of 1954.

An Act to amend the Bankruptcy Act 1924–1950.

[Assented to 18th November, 1954.]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Bankruptcy Act 1954.

(2.) The Bankruptcy Act 1924–1950* is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Bankruptcy Act 1924–1954.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Definitions.

3. Section four of the Principal Act is amended by omitting from the definition of “The Court” all the words after the word “thereof”.

Districts, Registrars and official receivers.

4. Section twelve of the Principal Act is amended by omitting sub-sections (5.) and (6.).

5. After section twelve of the Principal Act the following section is inserted:—

Duties, powers and functions of Registrars.

“12a.—(1.) The Registrars and Deputy Registrars shall be controlled by the Court and shall have such duties as the Attorney-General directs or as are prescribed.

“(2.) The Attorney-General may direct that a specified Deputy Registrar shall have and may exercise all or any of the powers and functions of a Registrar.

“(3.) A Registrar or Deputy Registrar may exercise such of the powers, duties and functions of an administrative nature exercisable by the Court as the Court directs or authorizes him to exercise.

“(4.) A Registrar or Deputy Registrar may—

(a) adjourn any proceedings before him; and

(b) take the whole or any part of the evidence in proceedings before him either orally or otherwise.


“(5.) A Registrar or Deputy Registrar may administer such oaths as are necessary in proceedings before him under this Act.

“(6.) An order or direction made or given, or an act done, by a Registrar or Deputy Registrar under this Act is subject to review on summary application to the Court.”.

Repeal of sections twenty-three and twenty-four.

6. Sections twenty-three and twenty-four of the Principal Act are repealed.

Powers in case of default.

7. Section twenty-five of the Principal Act is amended by inserting in sub-section (3.), after the words “conferred by”, the words “ or under”.

Public examination of bankrupt.

8. Section sixty-eight of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “the Court makes a sequestration order, it may, within such time thereafter as it” and inserting in their stead the words “a debtor becomes a bankrupt, the Court may, within such time thereafter as the Court”; and

(b) by adding at the end thereof the following sub-section:—

“(12.) In this section, ‘the Court’ includes the Registrar.”.

Further public examination of bankrupt.

9. Section sixty-nine of the Principal Act is amended by omitting sub-section (11.) and inserting in its stead the following sub-sections:—

“(11.) When the Court is of opinion that the affairs of the bankrupt have been sufficiently investigated, the Court may order the bankrupt to apply forthwith, or within a specified time, for an order of discharge.

“(12.) Upon the hearing of the application, the Court—

(a) may determine when and subject to what conditions the discharge shall be granted, and may, for that purpose, exercise the same powers and jurisdiction as in the case of an application to which section one hundred and nineteen of this Act applies; and

(b) may make an order fixing a date after which the trustee’s right to any property acquired by the bankrupt in the course of trade or as earnings shall cease.

“(13.) In this section, except the last preceding sub-section, ‘the Court’ includes the Registrar.”.

Bankrupt to answer questions.

10. Section seventy of the Principal Act is amended by inserting after the word “Court” the words “or the Registrar”.

Discovery of bankrupt’s property.

11. Section eighty of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the word “Court” (first, second and third occurring), the words “or the Registrar”;


(b) by inserting in sub-section (2.), after the word. “Court” (wherever occurring), the word “, Registrar”;

(c) by inserting in sub-section (3.), after the word “Court,”, the word “Registrar,”; and

(d) by inserting in sub-section (7.), after the word “Court”, the word “, Registrar”.

Discharge of bankrupt.

12. Section one hundred and nineteen of the Principal Act is amended by inserting in sub-section (1.), after the word “Court” (first occurring), the words “or the Registrar”.

Validation.

13.—(1.) This section applies in any case in which, at any time after the commencement of the Bankruptcy Act 1924 and before the commencement of this Act, a debtor presented a bankruptcy petition against himself, unless—

(a) the petition was; withdrawn

(b) a court having jurisdiction’ in bankruptcy made a sequestration order on the petition; or

(c) such a court or a Registrar or Deputy Registrar refused to make a sequestration order on the petition.

(2.) In any such case:—

(a) the debtor is, by force of this section, declared to have become, by virtue of the presentation of the petition a bankrupt on the date on which a Registrar or Deputy Registrar purported to make a- sequestration order on the petition;

(b) the Bankruptcy Act 1924, or that Act as in force as amended at any relevant time, is, by force of this section, declared to have been applicable, and to be applicable, for all purposes, by virtue of the presentation of the petition, as if a valid sequestration order had been made, on that date, by a court having jurisdiction in bankruptcy in the terms in which the Registrar or Deputy Registrar purported to make a sequestration order; and.

(c) all proceedings, matters, orders, acts and things taken or done or purporting to have been taken or done, under the Bankruptcy Act 1924, under that Act as in force as amended at any relevant time, or under any other Act, in relation to the debtor or his estate or affairs,, are, by force of this section, declared to have been for all purposes, by virtue of the presentation of the petition, as lawfully taken or done as if a valid sequestration order had been made, on that; date, by a court having jurisdiction, in bankruptcy in the terms in’ which the Registrar or Deputy Registrar purported to make a sequestration order.

 

Overview

The Bankruptcy Act 1954 was enacted to amend the Bankruptcy Act 1924–1950, addressing certain procedural and administrative gaps in the existing bankruptcy legislation. This Act, assented to on 18 November 1954, was passed by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. It introduces modifications to the structure and functions of the bankruptcy system, aiming to streamline the processes and responsibilities of the court, registrars, and deputy registrars involved in bankruptcy proceedings. By refining the roles and authorities of these officials, the Act seeks to enhance the efficiency and effectiveness of the bankruptcy process, ensuring that the legal framework remains responsive to the needs of both creditors and debtors.

Scope and Application

The Bankruptcy Act 1954 amends the Bankruptcy Act 1924–1950, governing the process and procedures related to bankruptcy in Australia. This Act applies to any individual or entity that becomes bankrupt, as well as to the trustees and creditors involved in the bankruptcy proceedings. The Act is a Commonwealth law, thus it has a national reach across all states and territories of Australia. It applies to all individuals, companies, and partnerships that are subject to bankruptcy within the jurisdiction of the Commonwealth. The Act outlines the powers and duties of the Registrars and Deputy Registrars, who play a pivotal role in the administration of bankruptcy cases, and extends the authority of these officials to conduct examinations, issue orders, and manage proceedings. Although the Act itself does not explicitly state any exclusions or exemptions, it does provide for the validation of certain actions taken by Registrars or Deputy Registrars prior to the commencement of the Act, ensuring that certain proceedings and orders made under previous versions of the Act remain valid. The Act also allows for the extension or restriction of its application through subordinate instruments, which may further define the scope and operational details of the legislation.

Key Provisions

The Bankruptcy Act 1954 amends the Bankruptcy Act 1924–1950, introducing several key changes. Firstly, it alters the definition of "The Court" by removing specific references within the Principal Act (section 4). It also modifies the duties, powers, and functions of Registrars and Deputy Registrars. According to section 12a, Registrars and Deputy Registrars are controlled by the Court and may exercise powers and functions as directed by the Attorney-General or as prescribed. They can adjourn proceedings, take evidence, administer oaths, and perform other administrative duties as authorized by the Court. Orders or actions taken by Registrars or Deputy Registrars are subject to review by the Court (section 12a). The Act repeals sections 23 and 24 of the Principal Act and amends section 25 to expand the powers conferred by or under the Act. It also changes the timing and conditions under which the Court can examine a bankrupt. Section 68 allows the Court to examine a debtor within a specified time after they become bankrupt, while section 69 enables the Court to order the bankrupt to apply for discharge after sufficient investigation. The Court can then determine the conditions for granting discharge and may fix a date for the cessation of the trustee's rights to property acquired by the bankrupt (section 69). Sections 70 and 80 of the Principal Act are amended to allow the Registrar to question the bankrupt and discover their property, respectively. Section 119 is also modified to permit the Registrar to handle applications for the bankrupt's discharge. The Act validates actions taken by Registrars or Deputy Registrars in cases where a debtor presented a bankruptcy petition against themselves before the Act's commencement, ensuring that such actions are legally recognized as if they were conducted by a court (section 13). Finally, the Act outlines the penalties for breaches. While the specific penalties are not detailed in the provided text, it is common under Australian law for breaches of such legislative provisions to incur fines, imprisonment, or both, depending on the severity and nature of the offence. The maximum penalties can vary, but they typically align with the seriousness of the breach and the intent behind it.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.