CTHRepealedLegislation
Bankruptcy Rules 1928
Div 3Bankruptcy Petition.
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Division 3.—Bankruptcy Petition.
Form of petition.
144.—(1.) Every petition shall be fairly written or printed, or partly written and partly printed, and no alterations, interlineations, or erasures shall be made without the leave of the Registrar, except so far as is necessary to adapt a printed form to the circumstances of the particular case.
(2.) A debtor’s petition shall be in accordance with Form 3, and a creditor’s petition shall be in accordance with Form 9.
Description and address of debtor.
145.—(1.) Where a petition is presented by a debtor he shall, besides inserting therein his name and description, and his address at the date when the petition was presented, further describe himself as lately residing or carrying on business at the address or several addresses, as the case may be, at which he has incurred debts and liabilities which at the date of the petition remain unpaid or unsatisfied.
(2.) Where a petition is presented against a debtor who resides or carries on business at an address other than the address at which the debtor was residing or carrying on business at the time of contracting the debt or liability in respect of which the petition is presented, the petitioning creditor, in addition to stating in the petition the description of the debtor, as of his then present address and description, shall, in the petition, describe the debtor as lately residing or carrying on business at the address at which he was residing or carrying on business when the debt or liability was incurred.
(3.) Where a sequestration order is made against a debtor on the petition of a creditor, the Court may amend any error or supply any omissions in the name or description of the debtor in any of the proceedings prior to or under the bankruptcy, and notice thereof shall be given by the Official Receiver by advertisement in the Commonwealth Gazette.
(4.) Where any such amendment is made, the proceedings as amended shall in all Courts be read and have the like force and effect as if they had originally been in the amended form.
(5.) The costs of and incidental to any such amendment shall be paid out of the estate of the debtor.
Attestation.
146.—(1.) Every bankruptcy petition shall be attested.
(2.) If it be attested in Australia the witness shall be a solicitor, or the Official Receiver or Registrar, or any person authorized under the Statutory Declarations Act 1911-1922 to take statutory declarations.
(3.) If it be attested out of Australia the witness shall be a judge or a magistrate or a British Consul or a notary public.
Deposit by petitioner.
147.—(1.) Upon the presentation of a petition either by the debtor or by a creditor the petitioner shall deposit with the Registrar the sum of Five pounds, and such further sum (if any) as the Court
from time to time directs, to cover the fees and expenses to be incurred by the Official Receiver; and no petition shall be received unless the receipt of the Registrar for the deposit payable on the presentation of the petition is produced to the proper officer of the Court.
(2.) The Official Receiver shall account for the money so deposited to the creditor, or, as the case may be, to the debtor’s estate, and any sum so paid by a petitioning creditor shall be repaid to the creditor (except and so far as the deposit may be required by reason of insufficiency of assets for the payment of the fees of and expenses incurred by the Official Receiver) out of the proceeds of the estate in the priority prescribed by these Rules.
Division 4.—Creditor’s Petition.
Security for costs.
148. A petitioning creditor who is resident abroad, or whose estate is vested in a trustee under any law relating to bankruptcy, or against whom a petition is pending under the Act, or who has made default in payment of any costs ordered by the Court to be paid by him to the debtor, may be ordered to give security for costs to the debtor.
Verification and copies.
149. Every creditor’s petition shall be verified by affidavit, and when it is filed there shall be lodged with it two or more copies to be sealed and issued to the petitioner.
Who to verify.
150. When the petitioning creditor cannot himself verify all the statements contained in his petition, he shall file in support of the petition the affidavit of some person who can depose to them.
Joint petitioners.
151. Where a petition is presented by two or more creditors jointly, it shall not be necessary that each creditor shall depose to the truth of all the statements which are within his own knowledge; but it shall be sufficient that each statement in the petition is deposed to by some one within whose knowledge it is.
Investigation of petition.
152. After the presentation of a creditor’s petition, and before sealing the copies of the petition for service, the statements in the petition shall be investigated by the Registrar, and where some of the statements in the petition cannot be verified by affidavit, witnesses may be summoned to verify them.
Personal service.
153.—(1.) A creditor’s petition shall be personally served by delivering to the debtor a sealed copy of the filed petition.
(2.) A petition shall be served upon the debtor by an officer or bailiff or by the creditor or his solicitor, or by some person in their employ.
Substituted service.
154. If personal service cannot be effected, the Court may extend the time for hearing the petition, or if the Court is satisfied by affidavit or other evidence on oath that the debtor is keeping out of the way to avoid that service, or service of any other legal process, or that for any other cause prompt personal service cannot be effected, it may order substituted service to be made by delivery of the petition to some adult inmate at his usual or last known residence or place of business, or by registered letter, or in such other manner as the Court directs, and that the petition shall then be deemed to have been duly served on the debtor.
Proof of service.
155. Service of the petition shall be proved by affidavit, with a sealed copy of the petition attached, which shall be filed in Court forthwith after the service.
Service out of jurisdiction.
156. Where a debtor petitioned against is not in Australia, the Court may order service to be made within such time and in such manner and form as it thinks fit.
Death of debtor before service of petition.
157. If a debtor against whom a bankruptcy petition has been filed dies before service thereof, the Court may order service to be effected on the personal representatives of the debtor, or on such other persons as the Court thinks fit.
Division 5.—Hearing of Petition.
Proceedings on petition.
Cf. No. 37 1924 ss. 56, 57.
158. A creditor’s petition shall not be heard until the expiration of eight days from the service thereof:
Provided that where the act of bankruptcy alleged is that the debtor has filed a declaration of inability to pay his debts, or where it is proved to the satisfaction of the Court that the debtor has absconded, or in any other case for good cause shown, the Court may, on such terms, if any, as the Court thinks fit to impose, hear the petition at such earlier date as the Court deems expedient.
Time of hearing.
159. The Registrar shall appoint the time and place at which the petition will be heard, and notice thereof shall be written on the petition and sealed copies, and where the petition has not been served the Registrar may from time to time alter the first day so appointed, and appoint another day and hour.
Several respondents.
160. Where there are more respondents than one to a petition, the rules as to service shall be observed with respect to each respondent, but where all the respondents have not been served, the petition may be heard separately or collectively as to the respondent or such of the respondents as has or have been served, and separately or collectively as to the respondents not then served according as service upon them is effected.
Debtor intending to show cause.
161. Where a debtor intends to show cause against a petition, he shall file a notice with the Registrar specifying the statements in the petition which he intends to deny or dispute, and transmit by post to the petitioning creditor and his solicitor, if known, a copy of the notice three days before the day on which the petition is to be heard:
Provided that, where the act of bankruptcy relied on is non-compliance with a bankruptcy notice, no objection to the bankruptcy notice shall be entertained at the hearing of the creditor’s petition if the objection could reasonably have been taken before the expiration of the time specified in the endorsement on the bankruptcy notice for that purpose.
Non-appearance of debtor.
162. If the debtor does not appear at the hearing, the Court may make a sequestration order on such proof of the statements in the petition as the Court thinks sufficient.
Appearance of debtor to show cause.
163. On the appearance of the debtor to show cause against the petition, the petitioning creditor’s debt, and the act of bankruptcy, or such of those matters as the debtor has given notice that he intends to dispute, shall be proved, and if any new evidence of those matters, or any of them, is given, or any witness to the matter is not present for cross-examination, and further time is desired to show cause, the Court shall, if the application appears to the Court to be reasonable, grant such further time as the Court thinks fit.
Non-appearance of creditor.
164. If any creditor neglects to appear on his petition, no subsequent petition against the same debtor or debtors, or any of them, either alone or jointly with any other person, shall be presented by the same creditor with respect to the same act of bankruptcy without the leave of the Court to which the previous petition was presented.
Cross-examination of deponents.
165.—(1.) Every witness who has made an affidavit in any proceeding or matter before the Court shall be subject to oral cross-examination in the same manner as if the evidence given in his affidavit had been given by him orally, and may be re-examined by the party using the affidavit.
(2.) The witness shall attend before the Court to be so examined, upon due notice being given to the party on whose behalf the affidavit was filed, and upon payment to that party or his solicitor of the reasonable expenses of the deponent attending the examination; and those expenses, if paid, shall be deemed costs in the proceeding or matter, unless the Court otherwise directs.
(3.) After the notice referred to in the last preceding sub-rule has been duly given, and the expenses of the deponent attending the examination duly paid or tendered, the affidavit of the deponent shall not be used or admissible in evidence on behalf of the party filing it unless the deponent is present for examination in pursuance of this rule.
Proceedings after trial of disputed question.
166. Where proceedings on a petition have been stayed for the trial of the question of the validity of the petitioning creditor’s debt, and the question has been decided in favour of the validity of the debt, the petitioning creditor may apply to the Registrar to fix a day on which further proceedings on the petition may be had, and the Registrar on production of the judgment of the Court in which the question was tried, or an office copy or certificate thereof, shall give notice to the petitioner by post of the time and place fixed for the hearing of the petition, and a like notice to the debtor at the address given in his notice to dispute, and also to their respective solicitors, if known.
Application to dismiss.
167. Where proceedings on a petition have been stayed for the trial of the question of the validity of the petitioning creditor’s debt, and the question has been decided against the validity of the debt, the debtor may apply to the Registrar to fix a day on which he may apply to the Court for the dismissal of the petition with costs, and the Registrar on the production of the judgment of the Court in which the question was tried, or an office copy or certificate thereof, shall give notice to both the petitioner and debtor (and to their respective solicitors, if known) by post of the time and place fixed for the hearing of the application.
Order for extension of time.
168.—(1.) On an application for extension of time for the hearing of a petition, no order shall be made for an extension beyond fourteen days from the day fixed for the hearing of the petition unless the Court is satisfied that the extension of time will not be prejudicial to the general body of creditors.
(2.) Any costs occasioned by the application shall not be allowed out of the estate unless go ordered by the Court.
Adjournments of hearing.
169. After the expiration of one month from the day appointed for the first hearing of a petition (provided the petition has been duly served), no further adjournment of the hearing merely by consent of the parties shall be allowed, except for the reasons set forth in Rule 163 of these Rules, or for such other sufficient reason to be stated in the order for adjournment as the Court thinks fit; but in every such case, unless an order for adjournment is made, the Court shall either make a sequestration order or dismiss the petition.
Division 6.—Interim Receiver.
Appointment of Interim Receiver.
170. After the presentation of a petition and before sequestration, upon the application of a creditor, or of the debtor himself, and upon proof by affidavit of sufficient grounds for the appointment of the Official Receiver as Interim Receiver of the property of the debtor, or any part thereof, the Court may, if it thinks fit, and upon such terms as are just, make such appointment.
Form and contents of order.
171. Where an order is made appointing the Official Receiver to be Interim Receiver of the property of the debtor, the order shall bear the number of the petition in respect of which it is made, and shall state the locality of the property of which the Official Receiver is ordered to take possession.
Deposit.
172. Before any such order is issued, the person who has made the application therefor shall deposit with the Official Receiver the sum of Five pounds towards the prescribed fee for the Official Receiver, and such further sum as the Court directs for the expenses which may be incurred by him.
Further deposit if necessary.
173.—(1.) If the sum of Five pounds, or such further sum so to be deposited for the expenses which may be incurred by the Official Receiver, proves to be insufficient, the person, on whose application the order has been made, shall from time to time deposit with the Registrar such additional sum as the Court, on the application of the Official Receiver, from time to time directs; and that sum shall be deposited within twenty-four hours after the making of the order therefor.
(2.) If the additional sum is not so deposited, the order appointing the Interim Receiver may be discharged by the Court.
Repayment of deposit.
174. If an order appointing an Interim Receiver is followed by a sequestration order, the deposits made by the creditor, on whose application the Interim Receiver was appointed, shall be repaid to him (except and so far as the deposits are required, by reason of insufficiency of assets, for the payment of the fees chargeable, and the expenses incurred by the Interim Receiver), out of the proceeds of the estate in the order of priority prescribed by these Rules.
Damages if petition dismissed.
175. Where, after an order has been made appointing an Interim Receiver, the petition is dismissed, the Court shall, upon application to be made within twenty-one days from the date of the dismissal thereof adjudicate with respect to any damages or claim thereto arising out of the appointment, and shall make such order as the Court thinks fit; and that decision or order shall be final and conclusive between the parties, unless the order be appealed from.
Division 7.—Sequestration Order.
Form and contents.
176.—(1.) A sequestration order shall be in accordance with Form 25 or 26 as the case requires.
(2.) Where the sequestration order is made on a creditor’s petition there shall be stated in the order the nature and date, or dates, of the act, or acts, of bankruptcy upon which the order has been made.
(3.) Every such order shall contain at the foot thereof a notice requiring the debtor to attend on the Official Receiver forthwith on the service thereof at the place mentioned therein.
Service of sequestration order.
177. The Official Receiver shall cause a copy of the sequestration order made on a creditor’s petition sealed with the seal of the Court to be served on the debtor.
Sequestration order on bankruptcy notice.
178. A sequestration order shall not be made against a debtor on a petition in which the act of bankruptcy alleged is non-compliance with a bankruptcy notice within the appointed time, where the debtor has applied to set aside the notice, until after the hearing of the application, or where the notice has been set aside, or during a stay of the proceedings thereon; but in that case the petition shall be adjourned or dismissed as the Court thinks fit.
Stay of proceedings.
179. There may be included in a sequestration order an order staying any action or proceeding against the debtor or staying proceedings generally.
Notices.
No. 37, 1924, s. 65.
180.—(1.) When a sequestration order is made, the Registrar shall forthwith give notice thereof in accordance with Form 185a to the Inspector-General, and to the Registrar of each bankruptcy district and to the Registrar of Titles or Registrar-General or other proper officer of each State.
(2.) The Registrar of each district shall keep a register of such notices in accordance with Form 185b.
(3.) Where a sequestration order is made the Official Receiver shall forthwith send notice thereof to such local paper or papers as he selects.
(4) The Registrar shall, upon the request of the Official Receiver or any creditor, and on payment of the sum of Five shillings, telegraph to the Sheriff or other officer who may be in possession of the estate or effects of the bankrupt, notice that a sequestration order has been made.
Costs of petition, &c.
181.—(1.) All proceedings under the Act down to and including the making of a sequestration order shall be at the cost of the party prosecuting them, unless the Court orders that the debtor shall pay the whole or any part of them, or in the case of a sequestration order being made on a debtor’s petition while a creditor’s petition against the debtor is pending, that they shall be paid out of the estate, but when a sequestration order is made on a creditor’s petition, the costs of the petitioning creditor (including the costs of the bankruptcy
notice, if any, sued out by him shall be taxed and payable out of the proceeds of the estate, in the order of priority prescribed by these Rules.
(2.) When the proceeds of the estate are not sufficient for the payment of any costs necessarily incurred by the Official Receiver (in excess of the deposit) between the making of a sequestration order and the conclusion of the first meeting of creditors, the Court may order the costs to be paid by the party prosecuting the proceedings.
Applications to annul sequestration order, and to stay proceedings thereunder.
182.—(1.) An application to the Court to annul a sequestration order or to stay proceedings thereunder, shall not be heard except upon proof that notice of the intended application, and a copy of the affidavits in support thereof, have been duly served upon the Official Receiver.
(2.) Unless the Court gives leave to the contrary, notice of any such application shall be served on the Official Receiver and all creditors not less than seven days before the day named in the notice for hearing the application.
(3.) Pending the hearing of the application, the Court may make an interim order staying such of the proceedings as it thinks fit.
Report by Official Receiver where ground of application to annul sequestration order is payment of debts in full.
183.—(1.) Where an application is made to the Court to annul a sequestration order on the ground that the debts of the debtor have been paid in full, the Official Receiver shall make and file four days before the day appointed for hearing the application a report as to the debtor’s conduct and affairs (including a report as to his conduct during the proceedings), and the Court on the hearing of the application shall hear and consider that report and such further evidence as is adduced by any party and any objections which are made by or on behalf of the trustee (if any) or any creditor whom the Court may permit to appear thereon.
(2.) For the purposes of the application the report shall be prima facie evidence of the statements therein contained.
(3.) For the purposes of this rule “creditor” includes all creditors mentioned in the debtor’s statement of affairs and all creditors who have notified the Official Receiver or trustee that they have, or at the date of the sequestration order had, claims against the debtor.
Division 8.—Public Examination of Bankrupt.
Time for holding public examination.
No. 37 1924 s. 68.
184.—(1.) When a sequestration order has been made against a debtor, the Official Receiver shall make an application to the Court to appoint a day and hour for holding a public examination of the debtor, and, upon such application being made, the Court may, by an order, appoint a day and hour for the public examination, and may order the debtor to attend the Court upon such day and at such hour.
(2.) A public sitting for the examination of the bankrupt may be held in pursuance of section 69 of the Act if the bankrupt has not obtained his discharge within six months after sequestration.
Default by debtor in attending.
Ib. s. 77 (1) (d).
185. If the bankrupt fails to attend the public examination or any adjournment thereof at the time and place appointed by any order for holding or proceeding with the examination or adjournment, and no good cause is shown by him for that failure, it shall be lawful for the Court, upon its being proved to the satisfaction of the Court that the order requiring the bankrupt to attend the public examination was duly served, and without any further notice to him, to issue a warrant for his arrest as provided by section 77 (1) (d) of the Act, or to make such other order as the Court thinks just.
Notice to creditors or examination.
186. Where an order is made appointing the time and place for holding the public examination of a debtor, the Official Receiver shall serve a copy thereof on the debtor, and shall give to the creditors notice of the order, and of the time and place appointed thereby, and shall publish the notice in the Commonwealth Gazette and such local paper or papers as he thinks fit.
Adjournments sine die
187.—(1.) Where the Court is of opinion that a debtor is failing to disclose his affairs, or where the debtor has failed to attend the public examination or any adjournment thereof, or where the debtor has not complied with any order of the Court in relation to his accounts, conduct, dealings, and property, and no good cause is shown by him for the failure, the Court may adjourn the public examination sine die, and may make such further or other order as the Court thinks fit.
(2.) The Court may on the application either of the Official Receiver or of the debtor appoint a day for proceeding with a public examination which has been adjourned sine die.
Proceedings after adjournment sine die.
188.—(1.) Where an examination has been adjourned sine die, and the debtor desires to have a day appointed for proceeding with his public examination, the expense of gazetting, advertising, and giving notice to creditors of the day to be appointed for proceeding with the examination shall, unless the Official Receiver or trustee, as the case may be, consents to the costs being paid out of the estate, be at the cost of the debtor, who shall, before any day is appointed for proceeding with the public examination, deposit with the Official Receiver such sum as the Official Receiver thinks sufficient to defray the expense.
(2.) The balance of the deposit after defraying the expense shall be returned to the debtor.
Notice of proceeding after adjournment sine die.
189. In any case in which a public examination has been adjourned sine die, and the Court afterwards makes an order for proceeding with the public examination, notice to creditors of the time and place appointed for proceeding with the public examination shall, seven days before the day appointed, be sent by the Official Receiver, and be inserted in the Commonwealth Gazette, and in the local paper or papers in which the notice of the first holding of the public examination was inserted.
Public examination of bankrupt who is a lunatic, &c.
No. 37 1924 s. 68 (11).
190.—(1.) An application for an order dispensing with the public examination of a bankrupt or directing that the debtor be examined in some manner or at some place other than is usual, on the ground that the debtor is a lunatic or suffers from mental or physical affliction or disability rendering him unfit to attend a public examination, may be made by the Official Receiver, or by any person who has been appointed by any Court having jurisdiction so to do to manage the affairs of or represent the debtor, or by any relative or friend of the debtor who appears to the Court to be a proper person to make the application.
(2.) Where the application is made by the Official Receiver, it may be made ex parte, and the evidence in support of the application may be given by a report of the Official Receiver to the Court, the contents of which report shall be received as prima facie evidence of the matters therein stated.
(3.) Where the application is made by some person other than the Official Receiver, it shall be made by motion, of which notice shall be given to the Official Receiver and trustee (if any), and shall, except in the case of a lunatic so found by inquisition, be supported by an affidavit of a duly registered medical practitioner as to the physical and mental condition of the debtor.
(4.) Where the order is made on the application of the Official Receiver, the expense of holding the examination shall be deemed to be an expense incurred by the Official Receiver within the meaning of rule 127 of these Rules.
(5.) Where the application is made by any other person, he shall, before any order is made on the application, deposit with the Official Receiver such sum as the Official Receiver certifies to be necessary for the expenses of the examination.
(6.) The order to be made on the application shall be in accordance with Form 70 or Form 71, as the case requires.
Division 9.—Service of Proceedings.
Service where debtor abroad.
191. Where a bankrupt against whom a sequestration order has been made is not in Australia, the Court may order service, on the debtor, of the sequestration order, order to attend the public examination or any adjournment thereof, or of any other order made against, or summons issued for the attendance of, the debtor, to be made within such time and in such manner and form as it thinks fit.
Division 10.—Composition or Scheme.
See Parts V.– VI., pp. 48-50.
Forms where proposal submitted by debtor.
192. Where a bankrupt intends to submit a proposal for a composition or scheme, Forms 35, 36, 75, 76, and 77, shall be used as required for the purpose of the meeting of creditors for consideration of the proposal.
Application by debtor or Official Receiver for approval of Court.
No. 37, 1924 s. 71 (5).
193.—(1.) Where the creditors have accepted a composition or scheme, the trustee or the bankrupt may forthwith apply to the Court to fix a day for the hearing of an application for the approval of the composition or scheme.
(2.) The trustee shall not by making the application be deemed necessarily to approve the composition or scheme.
Notice to trustee.
194. Any person other than the trustee who applies to the Court to approve of a composition or scheme shall, not less than ten days before the day appointed for hearing the application, send notice of the application to the trustee.
Notice to creditors.
195. Whenever an application is made to the Court to approve a composition or scheme, the trustee shall, not less than three days before the day appointed for hearing the application, send notice of the application to every creditor who has proved his debt.
Trustee’s report to be filed.
196. In every case of an application to the Court to approve a composition or scheme, the report of the trustee shall be filed not less than four days before the time fixed for hearing the application.
Hearing.
197. On the hearing of any application to the Court to approve a composition or scheme, the Court shall, in addition to considering the report of the trustee, hear the trustee thereon if the trustee desires to be heard.
Costs of application by debtor.
198. No costs incurred by a debtor, of or incidental to an application to approve a composition or scheme, shall be allowed out of the estate if the Court refuses to approve the composition or scheme.
Evidence and order.
199.—(1.) The Court, before approving a composition or scheme, shall, in addition to investigating the other matters as required by the Act, require proof that the provisions of sub-sections (1.) and (2.) of section 71 of the Act have been complied with.
(2.) An order approving a composition or scheme shall be in accordance with Form 85.
(3.) The Registrar shall forthwith send notice to the Official Receiver of every order made on an application to approve a composition or scheme, and the Official Receiver shall publish the notice in the Commonwealth Gazette.
Provision in composition or scheme for costs and charges.
200. Where a composition or scheme has been duly accepted by the creditors, the composition or scheme shall not be approved by the Court unless the Court is satisfied, on the report of the trustee, that provision is made for payment of all proper costs, charges, fees, and expenses of and incidental to the proceedings.
Fee on application.
201. The fee prescribed to be charged for and in respect of an application to the Court to approve a composition or scheme may be allowed and paid out of the estate of the debtor in any case in which there are sufficient funds in the hands of the trustee available for the purpose.
Correction of formal slips, &c.
202. At the time a composition or scheme is approved, the Court may correct or supply any accidental or formal slip, error, or omission therein, but no alteration in the substance of the composition or scheme shall be made.
Proceedings if scheme approved.
203. When a composition or scheme is approved, the trustee shall, on payment of all proper costs,, charges, fees, and expenses of and incidental to the proceedings, forthwith put the debtor (or, as the case may be, the trustee, under the composition or scheme, or the other person or persons to whom under the composition or scheme the property of the debtor is to be assigned) into possession of the debtor’s property.
Cases in which Official Receiver is to be trustee.
204. In every case of a composition or scheme in which a trustee is not appointed, or, if appointed, declines to act, or becomes incapable of acting, or is removed, the Official Receiver shall, unless and until another trustee is appointed by the creditors, be the trustee for the purpose of receiving and distributing the composition, or for the purpose of administering the debtor’s property, and carrying out the terms of the composition or scheme, as the case may be.
Security by trustee under composition or scheme.
205.—(1.) Where under a composition or scheme of arrangement a trustee is appointed, he shall, after the composition or scheme has been approved by the Court, give security to the satisfaction of the Court in like manner as if he were a trustee in bankruptcy.
(2.) If the trustee fail to give such security within the time required, he may be removed by the Court on the application of the Official Receiver or any creditor.
Default is payment of composition.
206. Where a composition or scheme has been approved, and default is made in any payment thereunder either by the bankrupt or the trustee (if any), no action to enforce the payment shall lie, but the remedy of any person aggrieved shall be by application to the Court.
C. 17431.—2
Vesting of property on annulment of composition.
207. Where a composition or scheme is annulled, the property of the bankrupt shall, unless the Court otherwise directs, forthwith vest in the Official Receiver to whom the estate was originally assigned, without any special order being made or necessary.
Annulment of composition or scheme.
208. Where a composition or scheme is annulled, the trustee under the composition or scheme shall account to the trustee under the bankruptcy for any money or property of the bankrupt which has come to his hands, and pay or deliver over to the trustee any money or property which has not been duly administered.
Dividends under composition or scheme.
209. Where under any composition or scheme provision is made for the payment of any moneys to creditors entitled thereto, and any claim, in respect of which a proof has been lodged, is disputed, the Court may, if it thinks fit, direct that the amount which would be payable upon the claim, if established, shall be secured in such manner as the Court directs, until the determination of the claim so disputed; and on the determination thereof, the sum so secured shall be paid as the Court directs.
Proof of debts in composition or scheme.
210.—(1.) Every person claiming to be a creditor under any composition or scheme, who has not proved his debt before the approval of the composition or scheme, shall lodge his proof with the trustee thereunder, if any, or, if there is no such trustee, with the Official Receiver, who shall admit or reject the proof.
(2.) No creditor shall be entitled to enforce payment of any part of the sums payable under a composition or scheme unless and until he has proved his debt and his proof has been admitted.
Application of provisions of Division.
211. The provisions of this Division shall apply to compositions or schemes under section 71 of the Act, and so far as applicable also to compositions or schemes under Parts XI. and XII. of the Act.