Report No. 26
49. Second or subsequent bankruptcy.-(1) Where a second or subsequent order of adjudication is made against an insolvent, or where an order is made for the administration in insolvency of the estate of a deceased insolvent, then for the purposes of any proceedings consequent upon any such order, the Official Assignee in the last preceding insolvency shall be deemed to be a creditor in respect of any unsatisfied balance of the debts provable against the property of the insolvent in that insolvency.
(2) In the event of a second or subsequent order of adjudication being made against an insolvent being followed by an order adjudging him insolvent, or in the event of an order being made for the administration in insolvency of the estate of a deceased insolvent, any property acquired by him since he was last adjudged insolvent, which at the date when the subsequent petition was presented had not been distributed amongst the creditors in such last preceding insolvency, shall (subject to any disposition thereof made by the Official Assignee in that insolvency without knowledge of the presentation of the subsequent petition) vest in the Official Assignee in the subsequent insolvency or administration in insolvency, as the case may be.
(3) Where the Official Assignee in any insolvency receives notice of a subsequent petition in insolvency against the insolvent or after his decease of a petition for the administration of his estate in insolvency, the Official Assignee shall hold any property then in his possession which has been acquired by the insolvent since he was adjudged insolvent until the subsequent petition has been disposed of, and, if on the subsequent petition an order of adjudication, or an order for the administration of the estate in insolvency is made, he shall transfer all such property or the proceeds thereof (after deducting his costs and expenses) to the Official Assignee in the subsequent insolvency or administration in insolvency, as the case may be.
[New] [Cf. section 39 of the English Act as substituted by Bankruptcy Amendment Act, 1926, modified.]
(4) Out of the assets available in the second or subsequent insolvency or proceeding for the administration of the estate of a deceased insolvent, the creditors in the second or subsequent insolvency or proceeding shall first be paid a dividend of as many nave paise in the rupee as is equal to the percentage of dividend paid to the creditors in the first or earlier insolvency from the assets of the first or earlier insolvency, before the Official Assignee acting in the first or earlier insolvency is paid any dividend in insolvency is made, he shall transfer all such property or preceding for the administration of the estate of the deceased insolvent.
[Cf. English Committee Report, page 38, para. 114.]
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