34Bankruptcy proceedings against national servicemen and female dependants of national servicemen

34 Bankruptcy proceedings against national servicemen and female dependants of national servicemen

(1) A person shall not, without leave of a court having jurisdiction in bankruptcy or insolvency, issue a bankruptcy notice (or, in the Territory of Papua or the Territory of New Guinea, a debtor’s summons) or present a bankruptcy petition or petition for adjudication in insolvency, against a national serviceman or a female dependant of a national serviceman, where the judgment or final order in respect of which the bankruptcy notice would be issued is, or the debtor’s summons would be issued or the petition presented, in respect of a debt or obligation that arose before the date that is the moratorium date in relation to the national serviceman or female dependant. (2) The court shall not grant leave unless the court is satisfied that, having regard to all the circumstances of the case (including the conduct and financial position of the national serviceman or female dependant of a national serviceman and of the applicant), it would be inequitable to refuse to grant leave. (3) Where a bankruptcy petition or petition for adjudication in insolvency has been presented by a creditor against a national serviceman or a female dependant of a national serviceman, and the national serviceman or female dependant satisfies the court to which the petition was presented that his or her inability to pay his or her debts is due to circumstances directly or indirectly attributable to the rendering by the national serviceman of national service, the court may, after considering all the circumstances of the case and the position of all the parties, at any time stay the proceedings under the petition for such time and subject to such conditions as the court thinks fit. (4) Where a court is satisfied that:

(a) a person against whom the court has, on the petition of a creditor, made a sequestration order or an adjudication of insolvency is a national serviceman or a female dependant of a national serviceman; and

(b) if the sequestration order or adjudication of insolvency is annulled:

(i) the business (if any) of that person will continue to be carried on by or on behalf of that person; and

(ii) there will be a reasonable prospect of that business being carried on successfully;

the court may make an order annulling the sequestration order or adjudication of insolvency. (5) An order made in pursuance of the last preceding subsection:

(a) in the case of an order annulling a sequestration order—has the same effect as an annulment of the sequestration order effected under the Bankruptcy Act 1966‑1973; or

(b) in the case of an order annulling an adjudication of insolvency—has the same effect as an annulment of the adjudication of insolvency effected under the Insolvency Ordinance 1951 in force under the Papua New Guinea Act 1949‑1973.