Bankruptcy (Scotland) Act 1985 (repealed)

Statutory meeting of creditors and confirmation of permanent trustee U.K.

21 Calling of statutory meeting. S

(1) [F1 Where the interim trustee is not the Accountant in Bankruptcy he shall call the statutory meeting] to be held within 28 days, or such longer period as the sheriff on cause shown may allow, after the date of the award of sequestration.

[F2 (1A) The statutory meeting shall be held at such time and place as the interim trustee determines.]

(2) Not less than 7 days before the date fixed for the statutory meeting, the interim trustee shall notify—

(a) every creditor known to him; and

(b) the Accountancy in Bankruptcy,

of the date, time and place of the meeting, and shall in the notification to creditors invite the submission of such claims as have not already been submitted and inform them of his duties under section 23(3) and (5) of this Act.

(3) The creditors may continue the statutory meeting to a date not later than 7 days after the end of the period—

(a) of 28 days mentioned in subsection (1) above; or (as the case may be),

(b) allowed by the sheriff under that subsection.

[F2 (4) This section does not apply in any case where the Accountant in Bankruptcy is the interim trustee.]

Textual Amendments

F1 Words in s. 21(1) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 10(2) (with s. 12(6)); S.I. 1993/438, art.3

F2 S. 21(1A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 10(3) (with s. 12(6)); S.I. 1993/438, art.3

S. 21(4) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 10(4) (with s. 12(6)); S.I. 1993/438, art.3

[21A F3 Calling of statutory meeting where interim trustee is Accountant in Bankruptcy. S

(1) Subject to subsections (5) and (6) below, where the interim trustee is the Accountant in Bankruptcy, the statutory meeting may be held at such time and place as the interim trustee may determine.

(2) Not later than 60 days after the date of the sequestration, or such longer period as the sheriff may on cause shown allow, the interim trustee shall give notice to every creditor known to him of whether he intends to call the statutory meeting.

(3) A notice given under subsection (2) above shall—

(a) be accompanied by a copy of the interim trustee’s statement of the debtor’s affairs; and

(b) where the interim trustee is notifying his intention not to hold the statutory meeting, inform creditors—

(i) of the effect of subsections (4) and (5) below; and

(ii) whether he intends to apply for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.

(4) Within 7 days of the giving of notice under subsection (2) above, any creditor may request the interim trustee to call the statutory meeting.

(5) Where a request or requests under subsection (4) above are made by not less than one quarter in value of the debtor’s creditors, the interim trustee shall call the statutory meeting not later than 28 days, or such other period as the sheriff may on cause shown allow, after the giving of notice under subsection (2) above.

(6) Where the interim trustee gives notice under subsection (2) above that he intends to call the statutory meeting, such meeting shall be called not later than 28 days after the giving of such notice.

(7) Not less than 7 days before the date fixed for the statutory meeting, the interim trustee shall notify every creditor known to him of the date, time and place of the meeting, and shall in such notice invite the submission of such claims as have not already been submitted and inform them of his duties under section 23(3) of this Act.

(8) The creditors may continue the statutory meeting to a date not later than 7 days after the end of the period mentioned in subsection (6) above or such longer period as the sheriff may on cause shown allow.

(9) This section applies in any case where the Accountant in Bankruptcy is the interim trustee.]

Textual Amendments

F3 Ss. 21A, 21B inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s.5 (with s. 12(6)); S.I. 1993/438, art.3

21B F4 Procedure where no statutory meeting called. S

(1) Where the interim trustee does not call the statutory meeting and the period mentioned in section 21A(4) of this Act has expired, he shall—

(a) forthwith make a report to the sheriff on the circumstances of the sequestration; and

(b) provide to the sheriff a copy of the interim trustee’s statement of the debtor’s affairs.

(2) In the case of a sequestration which falls within subsection (1) above—

(a) section 25A of this Act shall apply; and

(b) the interim trustee may apply to the sheriff for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.

Textual Amendments

F4 Ss. 21A, 21B inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s.5 (with s. 12(6)); S.I. 1993/438, art.3

22 Submission of claims for voting purposes at statutory meeting. U.K.

(1) For the purposes of voting at the statutory meeting, a creditor shall submit a claim in accordance with this section to the interim trustee at or before the meeting.

(2) A creditor shall submit a claim under this section by producing to the interim trustee—

(a) a statement of claim in the prescribed form; and

(b) an account or voucher (according to the nature of the debt) which constitutesprima facie evidence of the debt:

Provided that the interim trustee may dispense with any requirement under this subsection in respect of any debt or any class of debt.

(3) Where a creditor neither resides nor has a place of business in the United Kingdom, the interim trustee—

(a) shall, if he knows where the creditor resides or has a place of business and if no notification has been given to that creditor under section 21(2) of this Act, write to him informing him that he may submit a claim under this section;

(b) may allow the creditor to submit an informal claim in writing.

(4) A creditor who has produced a statement of claim in accordance with subsection (2) above may at any time before the statutory meeting produce in place of that statement of claim another such statement of claim specifying a different amount for his claim.

(5) If a creditor produces under this section a statement of claim, account, voucher or other evidence which is false—

(a) the creditor shall be guilty of an offence unless he shows that he neither knew nor had reason to believe that the statement of claim, account, voucher or other evidence was false;

(b) the debtor shall be guilty of an offence if he—

(i) knew or became aware that the statement of claim, account, voucher or other evidence was false; and

(ii) failed as soon as practicable after acquiring such knowledge to report it to the interim trustee or permanent trustee.

(6) A creditor may, in such circumstances as may be prescribed, state the amount of his claim in foreign currency.

(7) The interim trustee shall, on production of any document to him under this section, initial the document and keep a record of it stating the date when it was produced to him, and, if requested by the sender, shall return it (if it is not a statement of claim) to him.

(8) The submission of a claim under this section shall bar the effect of any enactment or rule of law relating to the limitation of actions in any part of the United Kingdom.

(9) Schedule 1 to this Act shall have effect for determining the amount in respect of which a creditor shall be entitled to claim.

(10) A person convicted of an offence under subsection (5) above shall be liable—

(a) on summary conviction to a fine not exceeding the statutory maximum or—

(i) to imprisonment for a term not exceeding 3 months; or

(ii) if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,

or (in the case of either sub-paragraph) to both such fine and such imprisonment; or

(b) on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.

Modifications etc. (not altering text)

C1 S. 22 restricted (S.) (17.12.2001) by 2001 asp 13, s. 20, Sch. 6 para. 8(2) (with s. 29); S.S.I. 2001/456, art. 2

C2 S. 22(5)(10) applied (with modifications) by S.I. 1986/1915, Rules 4.16(1)(a), 7.9(4) and by Rule 2.41(2) (as substituted (15.9.2003) by The Insolvency (Scotland) Amendment Rules 2003 (S.I. 2003/2111), Rule 3, Sch. 1 Pt. 1)

C3 S. 22(8) applied with modifications by S.I. 1986/1915, Rule 4.76.

C4 S. 22(10) applied (with modifications) by S.I. 1986/1915, Rules 4.16(1)(a), 7.9(4) and by Rule 2.41(2) (as substituted (15.9.2003) by The Insolvency (Scotland) Amendment Rules 2003 (S.I. 2003/2111), Rule 3, Sch. 1 Pt. 1)

23 Proceedings at statutory meeting before election of permanent trustee. S

(1) At the commencement of the statutory meeting, the chairman shall be the interim trustee who as chairman shall—

(a) for the purposes of subsection (2) below, accept or reject in whole or in part the claim of each creditor, and, if the amount of a claim is stated in foreign currency, he shall convert that amount into sterling, in such manner as may be prescribed, at the rate of exchange prevailing at the close of business on the date of sequestration;

(b) invite the creditors thereupon to elect one of their number as chairman in his place and shall preside over the election:

Provided that if a chairman is not elected in pursuance of this paragraph, the interim trustee shall remain the chairman throughout the meeting; and

(c) arrange for a record to be made of the proceedings at the meeting.

(2) The acceptance of a claim in whole or in part under subsection (1) above shall, subject to section 24(3) of this Act, determine the entitlement of a creditor to vote at the statutory meeting.

(3) On the conclusion of the proceedings under subsection (1) above, the interim trustee—

[F5 (a) shall make available for inspection—

(i) the statement of assets and liabilities; and

(ii) his statement of the debtor’s affairs prepared under section 20(1) of this Act;]

(b) shall answer to the best of his ability any questions, and shall consider any representations, put to him by the creditors relating to the debtor’s assets, business or financial affairs or his conduct in relation thereto;

(c) shall, after considering any such representations as are mentioned in paragraph (b) above, indicate whether, in his opinion, the debtor’s assets are unlikely to be sufficient as mentioned in section 20(1) of this Act; and

[F5 (d) shall determine whether it is necessary to revise his statement of the debtor’s affairs and, if he determines that it is necessary to revise the statement, he shall do so either at, or as soon as possible after, the statutory meeting.]

F6 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F5 (5) Where the interim trustee has revised his statement of the debtor’s affairs, he shall, as soon as possible after the statutory meeting, send a copy of the revised statement to every creditor known to him.]

Textual Amendments

F5 S. 23(3)(a) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 11(2)(a) (with s. 12(6)); S.I. 1993/438, art.3

S. 23(3)(d) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 11(2)(b) (with s. 12(6)); S.I. 1993/438, art.3

S. 23(5) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 11(3) (with s. 12(6)); S.I. 1993/438, art.3

F6 S. 23(4) repealed (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(4), Sch.2 (with s. 12(6)); S.I. 1993/438, art.3

[23A F7 Summary administration. S

(1) Where an application is made to the court under this Act for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate, the court shall, subject to subsection (9) below, grant such a certificate where it appears to the court that—

(a) the aggregate amount of the debtor’s liabilities does not exceed £20,000; and

(b) the aggregate amount of the debtor’s assets does not exceed £2,000.

(2) In calculating—

(a) the aggregate amount of the debtor’s liabilities under paragraph (a) of subsection (1) above, no account shall be taken of any debt to the extent that a creditor holds a security for that debt; and

(b) the aggregate amount of the debtor’s assets under paragraph (b) of that subsection, no account shall be taken of—

(i) any heritable property of his; or

(ii) any property of his which, under section 33(1) of this Act, does not vest in the permanent trustee.

(3) For the purposes of an application under subsection (1) above made by—

(a) the Accountant in Bankruptcy; or

(b) an interim trustee who is not the Accountant in Bankruptcy,

a certificate by the Accountant in Bankruptcy or, as the case may be, the interim trustee as to the aggregate amounts of the debtor’s liabilities and assets shall be sufficient evidence of such aggregate amounts.

(4) Where a certificate for the summary administration of the sequestration of the debtor’s estate is granted—

(a) in any case where the application for the certificate was made by the Accountant in Bankruptcy, section 25A of this Act; and

(b) in every case, Schedule 2A to this Act (which modifies the duties of the permanent trustee),

shall apply to the sequestration.

(5) The debtor, a creditor, the permanent trustee or the Accountant in Bankruptcy may, at any time, apply to the sheriff to withdraw the certificate for the summary administration of the sequestration of the debtor’s estate.

(6) Where an application is made under subsection (5) above by a person who is not the permanent trustee, the applicant shall send a copy of the application to the permanent trustee who shall prepare and present to the sheriff a report on all of the circumstances of the sequestration.

(7) If it appears to the sheriff, on considering an application under subsection (5) above and any report under subsection (6) above, that it is no longer appropriate for the sequestration to be subject to summary administration, he shall withdraw the certificate and the sequestration of the estate shall proceed as if the certificate had not been granted.

(8) The sheriff clerk shall send to the permanent trustee and, where he is not the permanent trustee, the Accountant in Bankruptcy a copy of the sheriff’s decision on any application under subsection (5) above.

(9) The court shall not grant an application as mentioned in subsection (1) above—

(a) in any case where the application is made by the Accountant in Bankruptcy and the court has appointed as interim trustee a person who is not the Accountant in Bankruptcy; or

(b) in any other case—

(i) where a person has been elected as permanent trustee, before the sheriff has confirmed the election of that person as permanent trustee; or

(ii) where no such person has been elected, unless the court at the same time appoints the interim trustee as permanent trustee.]

Textual Amendments

F7 S. 23A inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s.6 (with s. 12(6)); S.I. 1993/438, art.3

24 Election of permanent trustee. S

[F8 (1) At the statutory meeting, the creditors shall, at the conclusion of the proceedings under section 23(3) of this Act, proceed to the election of the permanent trustee.]

(2) None of the following persons shall be eligible for election as permanent trustee, nor shall anyone who becomes such a person after having been elected as permanent trustee be qualified to continue to act as permanent trustee—

(a) the debtor;

(b) a person who is not qualified to act as an insolvency practitioner or who, though qualified to act as an insolvency practitioner, is not qualified to act as such in relation to the debtor;

(c) a person who holds an interest opposed to the general interests of the creditors;

(d) a person who resides outwith the jurisdiction of the Court of Session.

[F9 (e) a person who has not given an undertaking, in writing, to act as permanent trustee;

(f) the Accountant in Bankruptcy.]

(3) The following persons shall not be entitled to vote in the election of the permanent trustee—

(a) anyone acquiring a debt due by the debtor, otherwise than by succession, after the date of sequestration;

(b) any creditor to the extent that his debt is a postponed debt.

[F9 (3A) In any case where the Accountant in Bankruptcy is the interim trustee, if—

(a) no creditor entitled to vote in the election of the permanent trustee attends the statutory meeting; or

(b) no permanent trustee is elected,

the Accountant in Bankruptcy shall forthwith report the proceedings at the statutory meeting to the sheriff and section 25A of this Act shall apply.

(3B) Where a report is made in pursuance of subsection (3A) above, the Accountant in Bankruptcy may apply to the sheriff for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.]

(4) [F9 In any case where the Accountant in Bankruptcy is not the interim trustee,]if no creditor entitled to vote in the election of the permanent trustee attends the statutory meeting or if no permanent trustee is elected, the interim trustee shall forthwith—

(a) so notify the Accountant in Bankruptcy; and

(b) report the proceedings at the statutory meeting to the sheriff, who shall thereupon appoint the interim trustee as the permanent trustee.

[F9 (4A) Where a report is made in pursuance of subsection (4) above, the interim trustee may apply to the sheriff for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.]

(5) Where subsection (4) above applies, the provisions of this Act shall have effect as regards the sequestration subject to such modifications, and with such further provisions, as are set out in Schedule 2 to this Act.

Textual Amendments

F8 S. 24(1) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 12(2) (with s. 12(6)); S.I. 1993/438, art.3

F9 S. 24(2)(e)(f) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 12(3) (with s. 12(6)); S.I. 1993/438, art.3

S. 24(3A)(3B) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 12(4) (with s. 12(6)); S.I. 1993/438, art.3

Words in s. 24(4) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 12(5) (with s. 12(6)); S.I. 1993/438, art.3

S. 24(4A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 12(6) (with s. 12(6)); S.I. 1993/438, art.3

25 Confirmation of permanent trustee. S

(1) On the election of the permanent trustee—

(a) the interim trustee shall forthwith make a report of the proceedings at the statutory meeting to the sheriff; and

(b) the debtor, a creditor, the interim trustee, the permanent trustee or the Accountant in Bankruptcy may, within 4 days after the statutory meeting, object to any matter connected with the election; and such objection shall be by summary application to the sheriff, specifying the grounds on which the objection is taken.

(2) If there is no timeous objection under subsection (1)(b) above, the sheriff shall forthwith declare the elected person to be the permanent trustee; and the sheriff shall confirm his election and the sheriff clerk shall issue to him an act and warrant in a form prescribed by the Court of Session by act of sederunt and send a copy of the act and warrant to the Accountant in Bankruptcy.

[F10 (2A) Where a report is made in pursuance of subsection (1) above, the interim trustee may apply to the sheriff for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.]

(3) If there is a timeous objection under subsection (1)(b) above, the sheriff shall forthwith give parties an opportunity to be heard thereon and shall give his decision.

(4) If in his decision under subsection (3) above the sheriff—

(a) rejects the objection, subsection (2) above shall apply as if there had been no timeous objection;

(b) sustains the objection, he shall order the interim trustee to arrange a new meeting for the election of a permanent trustee; and sections 23 and 24 of this Act and this section shall apply in relation to such a meeting.

(5) Any declaration, confirmation or decision of the sheriff under this section shall be final, and no expense in objecting under this section shall fall on the debtor’s estate.

(6) The permanent trustee shall—

(a) insert a copy of the said act and warrant in the sederunt book; and

(b) where he is not the same person as the interim trustee, publish a notice in the Edinburgh Gazette F11 . . .stating that he has been confirmed in office as permanent trustee [F10 and giving such other information as may be prescribed].

Textual Amendments

F10 S. 25(2A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 13(2) (with s. 12(6)); S.I. 1993/438, art.3

Words at the end of s. 26(6)(b) added (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 13(3) (with s. 12(6)); S.I. 1993/438, art.3

F11 Words in s. 25(6)(b) repealed (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch.2 (with s. 12(6)); S.I. 1993/438, art.3

[25A F12 Appointment of permanent trustee in certain cases. S

(1) Where this section applies as mentioned in section 21B(2), 23A(4) or 24(3A) of this Act, the court shall appoint as permanent trustee—

(a) the Accountant in Bankruptcy; or

(b) such person as may be nominated by the Accountant in Bankruptcy (being a person who is not ineligible for election as permanent trustee under section 24(2) of this Act) if that person consents to the nomination.

(2) Where this section applies as mentioned in section 28(5) of this Act, if either of the persons mentioned in paragraphs (a) and (b) of subsection (1) above applies to the sheriff for appointment as permanent trustee, the sheriff shall so appoint such person.

(3) Where a person is appointed to be permanent trustee under this section, the provisions of this Act shall apply to the sequestration subject to such modifications, and with such further provisions, as are set out in Schedule 2 to this Act.]

Textual Amendments

F12 S. 25A inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s.7 (with s. 12(6)); S.I. 1993/438, art.3

26 Provisions relating to termination of interim trustee’s functions. S

(1) Where the interim trustee does not himself become the permanent trustee, he shall, on confirmation of the permanent trustee in office, hand over to him everything in his possession which relates to the sequestration (including [F13 the statement of assets and liabilities, and a copy], of the statement prepared under section 23(3)(d), and of the written comments sent under section 20(2)(c) of this Act) and shall thereupon cease to act in the sequestration.

(2) Within 3 months of the confirmation in office of the permanent trustee, the interim trustee shall—

(a) submit to the Accountant in Bankruptcy—

(i) his accounts of his intromissions (if any) with the debtor’s estate; and

(ii) a claim for outlays reasonably incurred, and for remuneration for work reasonably undertaken, by him; and

(b) send to the permanent trustee (unless the interim trustee has himself become the permanent trustee), a copy of what is submitted to the Accountant in Bankruptcy under paragraph (a) above.

(3) On a submission being made to him under subsection (2) above, the Accountant in Bankruptcy—

(a) shall—

(i) audit the accounts; and

(ii) issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee; and

(b) shall send a copy of—

(i) the said determination to the interim trustee (except where the interim trustee has himself become the permanent trustee); and

(ii) the interim trustee’s audited accounts and of the said determination to the permanent trustee, who shall insert the copies in the sederunt book.

(4) The interim trustee, the permanent trustee, the debtor or any creditor may appeal to the sheriff against a determination under subsection (3)(a)(ii) above within 14 days of its issue [F14 ; and the decision of the sheriff on such an appeal shall be final].

(5) The permanent trustee, on being confirmed in office, shall make such insertions in the sederunt book as are appropriate to provide a record of the sequestration process before his confirmation, but he shall make no insertion therein relating to the written comments made by the interim trustee under section 20(2)(c) of this Act.

[F14 (5A) This section does not apply in any case where the Accountant in Bankruptcy is the interim trustee.]

Textual Amendments

F13 Words in s. 26(1) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 14(2) (with s. 12(6)); S.I. 1993/438, art.3

F14 Words in s. 26(4) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 14(3) (with s. 12(6)); S.I. 1993/438, art.3

S. 26(5A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 14(4) (with s. 12(6)); S.I. 1993/438, art.3

[26A F15 Accountant in Bankruptcy to account for intromissions. S

(1) This section applies in any case where the Accountant in Bankruptcy was the interim trustee and some other person becomes the permanent trustee.

(2) The Accountant in Bankruptcy shall, on confirmation of the permanent trustee in office, hand over to the permanent trustee everything in his possession which relates to the sequestration and which he obtained in his capacity as interim trustee (including the statement of assets and liabilities); and thereupon he shall cease to act as interim trustee.

(3) The Accountant in Bankruptcy shall, not later than 3 months after the confirmation in office of the permanent trustee, supply to the permanent trustee—

(a) his accounts of his intromissions (if any) as interim trustee with the debtor’s estate;

(b) a determination of his fees and outlays calculated in accordance with regulations made under section 69A of this Act; and

(c) a copy of the notice mentioned in subsection (4)(b) below.

(4) The Accountant in Bankruptcy shall send to the debtor and to all creditors known to him—

(a) a copy of the determination mentioned in subsection (3)(b) above; and

(b) a notice in writing stating—

(i) that the Accountant in Bankruptcy has commenced the procedure under this Act leading to discharge in respect of his actings as interim trustee;

(ii) that the accounts of his intromissions (if any) with the debtor’s estate are available for inspection at such address as the Accountant in Bankruptcy may determine;

(iii) that an appeal may be made to the sheriff under subsection (5) below; and

(iv) the effect of subsection (7) below.

(5) The permanent trustee, the debtor and any creditor may appeal to the sheriff against—

(a) the determination of the Accountant in Bankruptcy mentioned in subsection (3)(b) above;

(b) the discharge of the Accountant in Bankruptcy in respect of his actings as interim trustee; or

(c) both such determination and discharge.

(6) An appeal under subsection (5) above shall be made not more than 14 days after the issue of the notice mentioned in subsection (4)(b) above; and the decision of the sheriff on such an appeal shall be final.

(7) Where—

(a) the requirements of this section have been complied with; and

(b) no appeal is made to the sheriff under subsection (5) above or such an appeal is made but is refused as regards the discharge of the Accountant in Bankruptcy,

the Accountant in Bankruptcy shall be discharged from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the Accountant in Bankruptcy in exercising the functions of interim trustee in the sequestration.

(8) The permanent trustee, on being confirmed in office, shall make such insertions in the sederunt book as are appropriate to provide a record of the sequestration process before his confirmation.]

Textual Amendments

F15 S. 26A inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para.15 (with s. 12(6)); S.I. 1993/438, art.3

27 Discharge of interim trustee. S

(1) On receiving a copy of the Accountant in Bankruptcy’s determination sent under subsection (3)(b)(i) of section 26 of this Act the interim trustee may apply to him for a certificate of discharge.

(2) The interim trustee shall send notice of an application under subsection (1) above to the debtor and to the permanent trustee and shall inform the debtor—

(a) that he, the permanent trustee or any creditor may make written representations relating to the application to the Accountant in Bankruptcy within a period of 14 days after such notification;

(b) that the audited accounts of his intromissions (if any) with the debtor’s estate are available for inspection at the office of the interim trustee and that a copy of those accounts has been sent to the permanent trustee for insertion in the sederunt book; and

(c) of the effect mentioned in subsection (5) below.

(3) On the expiry of the period mentioned in subsection (2)(a) above the Accountant in Bankruptcy, after considering any representations duly made to him, shall—

(a) grant or refuse to grant the certificate of discharge; and

(b) notify (in addition to the interim trustee) the debtor, the permanent trustee, and all creditors who have made such representations, accordingly.

(4) The interim trustee, the permanent trustee, the debtor or any creditor who has made representations under subsection (2)(a) above may, within 14 days after the issuing of the determination under subsection (3) above, appeal therefrom to the sheriff and if the sheriff determines that a certificate of discharge which has been refused should be granted he shall order the Accountant in Bankruptcy to grant it; and the sheriff clerk shall send a copy of the decree of the sheriff to the Accountant in Bankruptcy.

[F16 (4A) The decision of the sheriff in an appeal under subsection (4) above shall be final.]

(5) The grant of a certificate of discharge under this section by the Accountant in Bankruptcy shall have the effect of discharging the interim trustee from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the interim trustee in exercising the functions conferred on him by this Act.

(6) Where a certificate of discharge is granted under this section, the permanent trustee shall make an appropriate entry in the sederunt book.

(7) Where the interim trustee has died, resigned office or been removed from office, then once the accounts of his intromissions (if any) with the debtor’s estate are or have been submitted to and audited by the Accountant in Bankruptcy, the Accountant in Bankruptcy shall issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee and the provisions of subsection (4) of section 26 of this Act and the foregoing provisions of this section shall, subject to any necessary modifications, apply in relation to that interim trustee or, if he has died, to his executor as they apply in relation to an interim trustee receiving a copy of such a determination under subsection (3)(b)(i) of that section.

[F16 (7A) This section does not apply in any case where the Accountant in Bankruptcy is the interim trustee.]

Textual Amendments

F16 S. 27(4A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 16(2) (with s. 12(6)); S.I. 1993/438, art.3

S. 27(7A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para. 16(3) (with s. 12(6)); S.I. 1993/438, art.3