BANKRUPTCY.
No. 13 of 1958.
An Act to amend the Bankruptcy Act 1924–1955, and for other purposes.
[Assented to 14th May, 1958.]
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 1958.
(2.) The Bankruptcy Act 1924–1955 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 1924–1958.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
3. Section forty-nine of the Principal Act is repealed and the following section inserted in its stead:—
Seal of Court.
“49. The Federal Court of Bankruptcy shall have a seal, which shall be as prescribed.”.
Shorthand notes of evidence.
4. Section fifty-one of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-sections:—
“(1.) In this section, ‘approved shorthand writer’ means a shorthand writer approved by the Registrar for the purposes of this section.
“(1a.) The Court may direct that any evidence, argument, ruling or direction in proceedings before the Court be taken down by an approved shorthand writer, and the charges and costs incurred in carrying out such a direction, including the costs of any copy of the transcript of the notes for the use of the Court, shall be costs in the proceedings.
“(1b.) The Registrar may direct that any evidence to be given before him by a bankrupt, or by another person in relation to a bankrupt, shall be taken down by an approved shorthand writer, and the charges and costs incurred in carrying out such a direction, including the costs of any copy of the transcript of the notes for the use of the Registrar, shall, subject to any order of the Court, be deemed to be costs awarded by the Court out of the estate of the bankrupt.”.
Bankruptcy notice.
5. Section fifty-three of the Principal Act is amended by adding at the end thereof the following sub-section:—
“(2.) If, before the expiration of the time limited by or under this Act for compliance by a debtor with a bankruptcy notice, the debtor has filed with the Registrar an affidavit to the effect that he has a counter-claim, set-off or cross demand of the kind referred to in paragraph (j) of the last preceding section and the Court has not, before the expiration of that time, determined whether it is satisfied that the debtor has such a counter-claim, set-off or cross demand, that time shall be deemed to have been extended, immediately before the expiration of that time, until the day on which the Court determines whether it…
Overview
The Bankruptcy Act 1958 was enacted to amend the Bankruptcy Act 1924-1955 and address certain issues within the existing framework. This Act was assented to on 14th May 1958 and was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary objective of this legislation was to modernise and streamline the bankruptcy processes in Australia, including the establishment of the Federal Court of Bankruptcy and the introduction of approved shorthand writers to record court proceedings. By validating previous actions taken under the former act and clarifying certain terms, the Act aimed to ensure a more coherent and legally sound bankruptcy process.
The Bankruptcy Act 1958 introduced significant amendments to the existing legal framework, such as the introduction of a seal for the Federal Court of Bankruptcy and the regulation of shorthand notes in court proceedings. Additionally, it provided for the extension of time limits for debtors to respond to bankruptcy notices if they had filed a counter-claim or set-off. The Act also aimed to address any potential issues arising from actions taken before its enactment by deeming such actions valid if performed within the extended time limits. This comprehensive approach sought to enhance the efficiency and fairness of the bankruptcy system in Australia.
Scope and Application
The Bankruptcy Act 1958 applies to individuals and entities that may be declared bankrupt, including debtors and creditors, as well as to the Federal Court of Bankruptcy and its officials, such as the Registrar. This Act extends its jurisdiction across the Commonwealth of Australia, thereby establishing uniform bankruptcy laws throughout the country. It does not explicitly exclude specific individuals or entities from its purview but rather provides a framework for dealing with insolvency cases. The Act is designed to amend the existing Bankruptcy Act 1924–1955, thereby integrating new provisions and clarifying existing ones to streamline the bankruptcy process. The application and interpretation of the Act may be further refined through subordinate instruments, such as regulations and rules, which can provide additional detail or exceptions as necessary.
Key Provisions
- The key operative sections of the Bankruptcy Act 1958 (C1958A00013) include the introduction of a new seal for the Federal Court of Bankruptcy (section 49), changes to the process for recording proceedings through approved shorthand writers (section 51), provisions for extending the time for compliance with a bankruptcy notice if a debtor has filed a counterclaim or set-off (section 53), amendments to the grounds for failure to account for a loss (section 210), and validation of certain actions taken before the Act came into effect (section 7).
- The Act imposes several obligations on the parties and entities it governs. For example, it mandates that any evidence, argument, ruling, or direction in proceedings before the Court be recorded by an approved shorthand writer, with the associated costs being treated as costs in the proceedings (section 51(1a)). Similarly, the Registrar may direct that evidence given by a bankrupt or in relation to a bankrupt be recorded by an approved shorthand writer, with the costs being treated as costs awarded by the Court out of the estate of the bankrupt (section 51(1b)). Additionally, the Act outlines the procedures for extending the time for compliance with a bankruptcy notice if a debtor files a counterclaim or set-off (section 53(2)).
- Failure to comply with the provisions of the Act may result in civil consequences. For instance, under section 210(1)(g), a person who fails to account for a loss in relation to the debtor's estate may be liable. This could include actions taken by the Court or Registrar, which are now validated under section 7 if they occurred before the Act came into effect and were completed within the extended time.
- Offences under the Act may lead to both civil and criminal consequences. While the Act does not explicitly outline penalties for specific breaches, it is understood that breaches could result in fines or imprisonment, as is typically the case under Australian law. The maximum penalties would depend on the specific nature of the offence and the discretion of the Court.
- Area of Law
- Insolvency Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Validation
- Reporting & Disclosure Obligations
