Report No. 26
This is a new provision, intended to deal with the case of a second or subsequent bankruptcy. It mainly follows section 39 of the English Act; but one modification has been made, to provide that from the assets available in the second insolvency the creditors in the second insolvency shall first be paid dividend equivalent to the dividend paid to the creditors of the first insolvency from the assets of the first insolvency. This adopts the second alternative discussed in the English Committee's Report1-2. The existing position is stated in Mulla3.
1. See English Committee's Report, p. 38, para. 114.
2. See detailed discussion in the body of the Report, para. 28.
3. Mulla, (1958), p. 517, para. 533.
This is a new provision requiring the insolvent to intimate to the Official Assignee particulars of after-acquired property. Cf. the recommendation of the English Committee on Bankruptcy Law1.
Exception has been made for suitable cases.
1. English Committee's Report, p. 18, para. 47, latter half.
This provision, dealing with property in the possession of the insolvent, is intended to take the place of the existing provisions relating to reputed ownership1-section 28(3), P.A. and section 52(2)(c), P.T.A. It has, in substance, been taken from section 50 of the Canadian Act, except that the time limit of 15 days (after sending of the notice) (appearing in the Canadian Act) has been replaced by 30 days. It has also been considered desirable to insert a specific provision authorising the Official Assignee to take possession of property to which the section applies, pending determination of the claim of the third person. The wording "property under this section" or "property referred to in sub-section (1)" used in the Canadian Act has been replaced by more precise words.
A provision authorising the Official Assignee to seize the property (in the case of movable property subject to speedy and natural decay) has been added.
1. See also body of the Report, para. 18.