Priorities.Priorities.

### Priorities. 84.—(1.) Subject to the next succeeding sub-section, sections ninety-three, one hundred and twelve and one hundred and twenty-two of this Act the trustee shall apply the estate of the bankrupt in the following order of priority— 4 and 5 Geo. V., c. 47, s. 21. (a) Firstly, where a deed of assignment under Part XI. of this Act or where a deed of arrangement entered into under Part XII. of this Act is avoided by reason of the bankruptcy, in payment of the expenses properly incurred by the trustee under the deed in the performance of any of the duties imposed on him by this Act; (b) Secondly, in payment of the remuneration of the trustee; (c) Thirdly, in payment of the taxed costs of the petitioning creditor incurred in proceedings in the sequestration of the estate; E.B.A., s. 130 (6). Vic., s. 55 (3). W.A., s. 114 (6). (d) Fourthly, in the case of the estate of a deceased debtor, in payment of the proper funeral and testamentary expenses incurred by the legal personal representative of the deceased debtor; E.B.A., s. 33. N.S.W., s. 48. Vic., s. 188. Q., s. 143. S.A., ss. 201–2. W.A., s. 38. Tas., s. 31. (e) Fifthly, in payment of all wages or salary of any clerk, servant, labourer or workman (not being the wife, husband, child, parent, brother or sister of the bankrupt), not exceeding Fifty pounds, whether payable per time or piece work, in respect of services rendered to the bankrupt within four months before the date of the sequestration order; (f) Sixthly, in payment of all amounts, not exceeding in any individual case Two hundred pounds, due in respect of compensation under any Act or State Act or law of a Territory relating to the payment of compensation where in any employment personal injury by accident arising out of, and in the course of, the employment, is caused to any workman, the liability wherefor accrued before the date of the order of sequestration: Provided that where the employer has entered into a contract with insurers in respect of any liability under any such Act or State Act or law of a Territory to any workman this paragraph shall not apply. (g) Seventhly, in payment, to an apprentice or articled clerk to the bankrupt, of such sum as is payable under section eighty-seven of this Act; (h) Eighthly, in payment of all municipal or other local rates due from the bankrupt at the date of the order of sequestration and having become due and payable within twelve months next preceding that date; and all assessed land tax and income tax, assessed under any Act or State Act prior to the date of the order of sequestration and not exceeding in the whole one year’s assessment; and in repayment of any advance made to the bankrupt, or in payment of any amount owing by the bankrupt for goods supplied to him, under any Act or State Act or law of a Territory relating to or providing for the improvement, development or settlement of land, or the aid, development or encouragement of mining: Provided that, if the bankrupt has given security for the payment or repayment of the amount due, this paragraph shall only apply to the balance due after deducting the net amount realized from the security; and E.B.A., s. 35. Vic., s. 178. Q., s. 145. Cf. Tas., s. 33. (i) Ninthly, in payment to the landlord of the bankrupt of so much rent, for a period not exceeding three months, as was due and payable at the date of the sequestration order, and in respect of which there were, at the date of the sequestration order, goods on the premises, in respect of which rent was payable, liable, but for sequestration, to distress for rent: Provided that no payment shall be made under this paragraph in excess of the value of the goods so distrainable, such value to be fixed by the Court in a summary manner in the event of the trustee and landlord not agreeing as to the amount. (2.) Where assets in any estate have been recovered by means of an indemnity for costs of litigation given by certain creditors, the Court may make such order as it deems just with respect to the distribution of those assets with a view to giving the indemnifying creditors an advantage over others in consideration of the risk run by them in giving the indemnity. (3.) The debts in each of the classes specified in sub-section (1.) of this section shall rank equally between themselves, and shall be paid in full, unless the property of the bankrupt is insufficient to meet them, in which case they shall abate in equal proportions between themselves.