EXPLANATORY STATEMENT
BANKRUPTCY ACT 1966
BANKRUPTCY RULES (AMENDMENT)
1987 NO. 21
The Bankruptcy Act 1966 (the Act) was amended to insert section 31A by the Statute Law (Miscellaneous Provisions) Act (No. 2) 1986 (the Statute Law Act). Section 31A of the Act permits a Judge of the Federal Court of Australia, in writing, to direct a Registrar of that Court to exercise certain powers of the Court under the Act. This amendment of the Act will commence on a date fixed by Proclamation.
Sub-section 31A(6) of the Act provides that a party to a proceeding in which a Registrar has exercised a power of the Federal Court under the Act may within the time prescribed by the Bankruptcy Rules (the Rules) or within any further time allowed in accordance with the Rules apply to the Court to review that exercise of power. The purpose of this amending rule is to prescribe the time within which an application for review pursuant to sub-section 31A(6) may be made and to prescribe the procedure for allowing further time.
Part X of the Rules is entitled “Practice and Procedure”. This rule amends that Part by inserting Division 3A entitled “Exercise of Powers by certain officials”. Division 3A consists of rule 119A.
Sub-rule 119A(1) provides that the prescribed time within which a party to a proceeding before a Registrar may apply to the Court for review of the Registrar’s decision is 21 days.
Sub-rule 119A(2) provides that where a party to a proceeding before a Registrar has not applied to the Court for a review
within the 21 days prescribed by sub-rule 119A(1), then further time for an application for review may be allowed by the Court or the Registrar.
Sub-rule 119A(3) provides that further time within which a party may lodge an application for review under sub-rule 119A(2) may be allowed by the Registrar or the Court whether or not the 21 day period prescribed by sub-rule 119A(1) has expired.
Sub-rule 119A(4) provides that the expressions ‘Registrar’ and ‘the Court’ have the same meaning for the purposes of rule 119A as they have in sub-section 31A(10) of the Act.
Sub-section 31A(10) of the Act provides that ‘Registrar’ means the Registrar, a Deputy Registrar, a District Registrar or a Deputy District Registrar of the Court. ‘The Court’ means the Federal Court of Australia.
This rule will commence on the same day as section 31A of the Act is proclaimed to commence.
Authorised by the Attorney-General
Overview
The Bankruptcy Act 1966, as amended by the Statute Law (Miscellaneous Provisions) Act (No. 2) 1986, introduces the ability for a Judge of the Federal Court of Australia to delegate certain powers to a Registrar. This delegation is intended to streamline the proceedings under the Act by allowing more efficient use of the Court's resources. The Bankruptcy Rules (Amendment) 1987 further clarifies the procedural aspects of this delegation by setting out the timeline and conditions under which a party to a proceeding may apply for a review of a Registrar’s decision. The rule specifies that such an application must be made within 21 days, but also allows for extensions of this period by the Court or the Registrar. These amendments aim to provide a clear and accessible framework for handling reviews, ensuring that the rights of parties involved in bankruptcy proceedings are protected while also facilitating the administration of justice.
Scope and Application
The Bankruptcy Act 1966, as amended by the Statute Law (Miscellaneous Provisions) Act (No. 2) 1986, applies to proceedings involving bankruptcy in Australia, with specific amendments affecting the exercise of powers by certain officials within the Federal Court of Australia. The Act permits a Judge of the Federal Court to delegate certain powers to a Registrar of that Court, thereby streamlining the judicial process for bankruptcy proceedings. The jurisdictional reach of this Act is national, applying across all states and territories of Australia, as it pertains to the Federal Court, which has nationwide authority. This legislative amendment does not explicitly state exclusions, but the prescribed procedure and timeframes for review of a Registrar’s decisions by the Court or another party suggest a structured and controlled application of delegated powers. The amendment further refines the procedures outlined in the Bankruptcy Rules, specifically under Division 3A of Part X titled “Practice and Procedure”, which was inserted to regulate the exercise of powers by certain officials. The rules mandate that any party to a proceeding before a Registrar may apply to the Court for review within 21 days, with provisions for extending this timeframe if necessary, thereby maintaining a balance between timely judicial oversight and procedural flexibility.
Key Provisions
The main operative sections of the Bankruptcy Act 1966, as amended, include section 31A, which allows a Judge of the Federal Court of Australia to direct a Registrar to exercise certain powers under the Act. This directive must be in writing and is designed to streamline the handling of specific tasks within the Court. Sub-section 31A(6) permits a party to a proceeding where a Registrar has exercised such powers to apply to the Court for a review of that exercise of power within a prescribed period. The Bankruptcy Rules (Amendment) 1987 further clarifies the timing and procedure for such applications.
The obligations imposed by these provisions on the parties or entities governed by the Act are primarily concerned with timeliness and procedural accuracy in applying for reviews. Specifically, under rule 119A, a party to a proceeding must apply to the Court for review of a Registrar’s decision within 21 days. If this initial period lapses, the party may still seek an extension of time to make the application, subject to approval by the Court or the Registrar. This rule ensures that both the parties and the Court can manage the review process in a timely and orderly manner.
Should a party fail to comply with the prescribed timelines or procedural requirements, the consequences can be significant. The primary consequence of missing the 21-day application window without a valid reason or without obtaining an extension is that the party may lose the right to challenge the Registrar's decision. The Act and Rules do not specify civil or criminal penalties for such failures; however, the inability to review a decision can have substantial legal and practical implications for the parties involved. The focus is on procedural compliance to ensure the integrity and efficiency of the judicial process.