EXPLANATORY STATEMENT
BANKRUPTCY ACT 1966
BANKRUPTCY RULES (AMENDMENT)
1984 No. 23
Sub-rule 127(2) of the Bankruptcy Rules provides for allowances payable to witnesses when summoned or requested to appear before the Court or the Registrar to give evidence in proceedings under the Act. Immediately prior to these amending rules the allowances payable were in accordance with Schedule 2 to the Bankruptcy Rules.
Sub-rule 162(1) of the Bankruptcy Rules provides that, subject to rule 162 and except where otherwise ordered, in all proceedings, solicitors are entitled to charge and be allowed costs as set forth in Schedule 3 to the Bankruptcy Rules.
Sub-rule 162(2) of the Bankruptcy Rules specifies the costs to be allowed to the solicitor for the petitioning creditor (if the solicitor so desires) where a sequestration order is made in a proceeding instituted by a petition based on non-compliance with a bankruptcy notice.
The purpose of the amendments is twofold. First, to increase, by 25 per cent, the scale of costs which may be charged by solicitors in respect of work done in bankruptcy proceedings. The increase is to cover rises in costs and expenses since
August 1979. Second, to tie witnesses’ allowances for travelling and other expenses when attending as witnesses in bankruptcy proceedings to those applying in the Federal Court of Australia from time to time.
The rules are as follows -
Rule 1
This rule amends sub-rule 127(2) of the Bankruptcy Rules by deleting the reference to Schedule 2 and making the fees and allowances payable for expenses of witnesses accord with those in the Second Schedule to the Federal Court Rules as in force from time to time.
Rule 2
This rule amends sub-rule 162(2) of the Bankruptcy Rules to increase, by 25 per cent, the costs allowed to a solicitor acting for a petitioning creditor in the circumstances set out in that sub-rule.
Rule 3
This rule repeals Schedule 2 to the Bankruptcy Rules.
Rule 4
This rule repeals Schedule 3 to the Bankruptcy Rules and substitutes a new Schedule which increases, by 25 per cent, the costs that solicitors are entitled to charge and be allowed for work done in respect of bankruptcy proceedings in circumstances other than those referred to in sub-rule 162(2).
Rule 5
This rule is a transitional provision. Sub-rule (1) of the rule continues to apply the provisions of sub-rule 127(2) of the Bankruptcy Rules and Schedule 2 to the Bankruptcy Rules as in force immediately before the commencement of the amending rules in relation to attendances before the commencement of those rules. Sub-rule (2) of the rule continues to apply the provisions of sub-rule 162(2) of the Bankruptcy Rules as in force immediately before the commencement of the amending rules in relation to proceedings instituted before the commencement of those rules. Sub-rule (3) of the rule continues to apply the provisions of Schedule 3 to the Bankruptcy Rules as in force immediately before the commencement of the amending rules in relation to work done before the commencement of those rules.
Authorised by the Attorney-General