Bankruptcy Act 1958

Legislation au C1958A00013 Not in force Act

Legislation content

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 Section forty-nine of the Principal Act is repealed and the following section inserted in its stead:—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 is so satisfied.”.

Failure to account for loss.

6. Section two hundred and ten of the Principal Act is amended by inserting in paragraph (g) of sub-section (1.), after the word “Court”, the words “or Registrar”.


Validation.

7.—(1.) Where—

(a) before the commencement of this Act, a Registrar in Bankruptcy or a Deputy Registrar in Bankruptcy purported to extend the time limited by the Bankruptcy Act for doing an act or thing in relation to a debtor or his estate or affairs; and

(b) that act or thing was done within the extended time,

all proceedings, orders, acts and things (including that act or thing) taken, made or done, or purporting to have been taken, made or done, under the Bankruptcy Act or under any other law, in relation to the debtor or his estate or affairs, shall, by force of this section, be deemed to have been for all purposes as lawfully and validly taken, made or done as if the time limited by the Bankruptcy Act for doing that act or thing had been the extended time.

(2.) The last preceding sub-section does not apply in relation to a sequestration order which, before the commencement of this Act, has been set aside by the High Court.

(3.) Where, in proceedings instituted under the Bankruptcy Act before the commencement of this Act in a State Court or a Court of a Territory of the Commonwealth, the expression “Court of Bankruptcy” was used before, or is used after, the commencement of this Act in any document, that expression shall, unless the contrary intention appears, be deemed to refer, and at all times to have referred, to the court in which the proceedings were so instituted.

(4.) In this section, “the Bankruptcy Act” means the Bankruptcy Act 1924, or that Act as in force as amended at any relevant time, and includes all rules or regulations as in force at any relevant time under that Act or that Act as amended.

 

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.

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Area of Law
Insolvency Law
Instrument
Act
Concepts
Commencement Provisions
Validation
Reporting & Disclosure Obligations

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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.