Bankruptcy Act 1959

Legislation au C1959A00049 Not in force Act

Legislation content

BANKRUPTCY.

 

No. 49 of 1959.

An Act relating to Bankruptcy.

[Assented to 22nd May, 1959.]

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 1959.

(2.) The Bankruptcy Act 1924–1958, as amended by this Act, may be cited as the Bankruptcy Act 1924–1959.

Commencement.

2.—(1.) Sub-section (2.) of section one and section three of this Act shall come into operation on a date to be fixed by Proclamation.

(2.) Section four of this Act shall be deemed to have come into operation on the fourteenth day of May, One thousand nine hundred and fifty-eight.

(3.) The remaining provisions of this Act shall come into operation on the day on which it receives the Royal Assent.

3. Section forty-nine of the Bankruptcy Act 1924–1958 is repealed and the following section inserted in its stead:—

Seal of Federal Court of Bankruptcy.

“49.—(1.) The Federal Court of Bankruptcy shall have a seal, the design of which shall be determined by the Governor-General.

“(2.) The design so determined shall include—

(a) the Coat of Arms of the Commonwealth, that is to say, the armorial ensigns and supporters granted to the Commonwealth by Royal Warrant dated the nineteenth day of September, One thousand nine hundred and twelve; and

(b) the words ‘The Federal Court of Bankruptcy’.

“(3.) The seal of the Federal Court of Bankruptcy shall be kept at such place, and in the custody of such person, as the Judge of the Court, or, if the Court consists of two Judges, the senior Judge of the Court, directs.


“(4.) The Registrar in each District shall have in his custody a stamp, the design of which shall, as nearly as practicable, be the same as the design of the seal of the Federal Court of Bankruptcy, with the addition of the name of the particular District.

“(5.) A document or a copy of a document marked with a stamp referred to in the last preceding sub-section is as valid and effectual as if it had been sealed with the seal of the Federal Court of Bankruptcy.

“(6.) All courts (whether exercising federal jurisdiction or not) and all persons acting judicially shall take judicial notice of the mark of a stamp referred to in sub-section (4.) of this section affixed on a document or a copy of a document and, in the absence of proof to the contrary, shall presume that it was affixed by proper authority.”.

Validation.

4. Section seven of the Bankruptcy Act 1958 is amended—

(a) by omitting sub-section (1.) and inserting in its stead the following sub-sections:—

“(1.) Where, before the commencement of this Act, a Registrar purported to extend for a specified period, or until a specified date, any time limited by the Bankruptcy Act for the doing of an act or thing by or in relation to a debtor or in relation to the estate or affairs of a debtor, that time is declared to have been extended for all purposes, by force of this section, on the date on which the Registrar purported to extend it, for the specified period or until the specified date.

“(1a.) Where, before the commencement of this Act, a Registrar purported to fix a time required by the Bankruptcy Act to be fixed for the doing of an act or thing by or in relation to a debtor or in relation to the estate or affairs of a debtor, the time that the Registrar purported to fix is declared to have been, for all purposes, by force of this section, the time within which the act or thing was required or permitted to be done by the Bankruptcy Act.”;

(b) by omitting from sub-section (2.) the words “The last preceding sub-section does” and inserting in their stead the words “The last two preceding subsections do”; and

(c) by omitting sub-section (4.) and inserting in its stead the following sub-section:—

“(4.) In this section—

‘Registrar’ means Registrar in Bankruptcy, and includes a Deputy Registrar in Bankruptcy;


‘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.”.

Validation of seals, &c.

5.—(1.) A seal or stamp in use, at any time before the commencement of this section or after the commencement of this section but before the commencement of section three of this Act, by the Federal Court of Bankruptcy or in the office of a Registrar in Bankruptcy for the purpose of sealing documents or copies of documents in proceedings under the Bankruptcy Act and purporting to be a seal or stamp of the Federal Court of Bankruptcy shall be deemed to be, or to have been, lawfully in use as, and to be or have been, the seal of that Court.

(2.) 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 1959 was enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to comprehensively address the existing legislative framework surrounding bankruptcy. This Act sought to update and modernise the previous Bankruptcy Act 1924–1958 by clarifying and validating certain administrative actions and procedural aspects of bankruptcy processes, thereby ensuring the continuity and legality of actions taken under the former Act. The primary policy objective was to provide certainty and stability in the administration of bankruptcy proceedings, while also ensuring that the judicial processes and instruments, such as seals and stamps, used in these proceedings were legally recognised and valid. The Act also aimed to streamline the operation of the Federal Court of Bankruptcy by establishing a formal design for its seal and ensuring that the seals and stamps used by Registrars were deemed lawful for all prior and current proceedings under the Bankruptcy Act. This legislative effort was crucial in maintaining the integrity and efficiency of the bankruptcy system in Australia.

Scope and Application

The Bankruptcy Act 1959 is a Commonwealth Act that governs bankruptcy proceedings in Australia, applying to individuals and companies who are adjudged bankrupt. The Act provides the legal framework for the administration of bankruptcy estates, including the appointment of trustees, the handling of creditors' claims, and the discharge of debts. Its provisions apply across the entire Commonwealth of Australia, establishing a uniform approach to bankruptcy proceedings. The Act does not explicitly state exclusions or exemptions, but it does provide for certain exclusions and qualifications in its detailed provisions. The application and interpretation of the Act may be extended or restricted through subordinate instruments, such as regulations or rules, which are made under the authority of the Act. These instruments allow for the detailed administration and implementation of the Act's provisions.

Key Provisions

The Bankruptcy Act 1959 (sections 1 and 2) is an Act that revises and consolidates the existing Bankruptcy Act, providing a framework for the administration of bankruptcy proceedings in Australia. The Act establishes the Federal Court of Bankruptcy, which is responsible for handling bankruptcy matters, and outlines the procedures and rules governing bankruptcy, including the powers of the Registrar and the validation of various actions taken under the Act. The Act came into operation on different dates for different sections, with some provisions coming into effect upon Royal Assent and others on a date to be fixed by Proclamation. Under the Bankruptcy Act 1959, the Federal Court of Bankruptcy is mandated to have a seal, the design of which is to be determined by the Governor-General (section 49(1)). This seal must include the Coat of Arms of the Commonwealth and the words "The Federal Court of Bankruptcy" (section 49(2)). The Registrar in each District is required to have a stamp with a design similar to that of the Federal Court's seal, but with the addition of the District's name (section 49(4)). A document or a copy of a document marked with such a stamp is considered as valid as if it had been sealed with the Court's seal (section 49(5)). All courts and judicial persons are required to take judicial notice of these stamps and presume their authenticity in the absence of contrary evidence (section 49(6)). The Act imposes several obligations on the parties involved in bankruptcy proceedings. For instance, the Registrar in Bankruptcy is authorised to extend the time limits for certain actions related to a debtor or their estate, and such extensions are deemed valid under the Act (section 7(1)). Similarly, any time fixed by the Registrar for performing actions required by the Act is considered the legally mandated time for such actions (section 7(1a)). Furthermore, the Act validates the use of any seal or stamp by the Federal Court or a Registrar, provided it was in use before or after the commencement of the Act but before the commencement of section three (section 5). The Act also outlines the consequences for breaches of its provisions. While specific offences and penalties are not detailed within the provided text, the general legal framework suggests that violations of the Act's provisions could result in civil or criminal penalties, depending on the nature and severity of the breach. These penalties could range from fines to more severe sanctions, depending on the specific circumstances and the discretion of the courts.

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Area of Law
Insolvency Law
Instrument
Act
Concepts
Commencement Provisions
Validation
Definitions & Interpretation

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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.