Administration in bankruptcy of estate oAdministration in bankruptcy of estate of persons dying insolvent.

### Administration in bankruptcy of estate of persons dying insolvent. E.B.A., s. 130. N.S.W., s. 121. Vic., ss. 47, 55. W.A., s. 114. 155.—(1.) Any creditor or creditors of a deceased debtor whose debt or debts owing to him or them would have been sufficient to support a bankruptcy petition against him, had he been alive, may present to the Court a petition in the prescribed form praying for an order for the administration in bankruptcy of the deceased debtor’s estate. (2.) Upon the prescribed notice being given to the legal personal representative of the deceased debtor, or, if there is no legal personal representative, to such person as the Court directs, the Court may— (a) in the prescribed manner, upon proof of the petitioner’s debt, make an order for the administration in bankruptcy of the deceased debtor’s estate, unless the Court is satisfied that there is a reasonable probability that the estate will be sufficient for the payment of the debts owing by the deceased; and (b) make an order for the examination of the personal representative of the deceased debtor and of such other persons as it thinks fit; or (c) upon cause shown dismiss the petition with or without costs. (3.) A petition for administration under this section shall not be presented to the Court after proceedings have been commenced in any Court for the administration of the deceased debtor’s estate, but the latter Court may, on proof that there is no reasonable probability that the estate will be sufficient to pay its debts, transfer the proceedings to the Court exercising bankruptcy jurisdiction, and thereupon the Court may, in the prescribed manner, make an order for the administration of the deceased debtor’s estate, and the like consequences shall ensue as under an administration order made on the petition of a creditor. (4.) With the modifications mentioned in this section, all the provisions of this Act relating to the administration of the property of a bankrupt and to trustees shall, so far as they are applicable, apply to the case of an order for administration under this section in like manner as to a sequestration order. (5.) Upon an order being made for the administration of a deceased debtor’s estate the property of the debtor shall vest in the official receiver as trustee thereof, and he shall proceed forthwith to realize and distribute the same in accordance with the provisions of this Act. (6.) The creditors shall have the same powers as to appointment of trustees and committees of inspection as they have in other cases where the estate of a debtor is being administered or dealt with in bankruptcy, and the provisions of this Act relating to trustees and committees of inspection shall apply to trustees and committees of inspection appointed under the power so conferred. (7.) If no committee of inspection is appointed, any act or thing or any direction or permission which might have been done or given by a committee of inspection may be done or given by the Court. (8.) In the administration of the property of a deceased debtor under an order of administration, the official receiver or trustee shall have regard to any claim by the legal personal representative of the deceased debtor to payment of the proper funeral and testamentary expenses incurred by him in and about the debtor’s estate. (9.) If, in the administration of a deceased debtor’s estate, any surplus remains in the hands of the official receiver or trustee after payment in full of all the debts due from the debtor together with the costs of the administration, the surplus shall be paid over to the legal personal representative of the deceased debtor’s estate, or dealt with in such other manner as is prescribed, and the Court shall make an order releasing the estate from administration in bankruptcy. (10.) When an order for administration of a deceased debtor’s estate has been made under this section on the petition of a creditor, no payment or transfer of property made by the legal personal representative of the deceased debtor, after the receipt by him of the prescribed notice of the presentation of the petition, shall operate as a discharge to him as between himself and the official receiver. (11.) Except as provided in the last preceding sub-section, nothing in this section shall invalidate any payment made or any act or thing done in good faith by the legal personal representative before the date of the order for administration.