(1)Where, in the course of instant proceedings which are by petition, any of the circumstances mentioned in paragraphs (a) to (d) of section 10(2) of this Act exists, the sheriff to whom the petition in the instant proceedings was presented may, on his own motion or at the instance of the debtor or any creditor or other person having an interest, allow that petition to proceed or may sist or dismiss it.
(2)Without prejudice to subsection (1) above, where, in the course of instant proceedings which are by petition, any of the circumstances mentioned in paragraphs (a), (c) or (d) of section 10(2) of this Act exists, the Court of Session may, on its own motion or on the application of the debtor or any creditor or other person having an interest, direct the sheriff before whom the petition in the instant proceedings is pending, or the sheriff before whom the other petition is pending, to sist or dismiss the petition in the instant proceedings or, as the case may be, the other petition, or may order the petitions to be heard together.
(3)Without prejudice to subsection (1) above, where, in the course of instant proceedings which are by petition, the circumstance mentioned in paragraph (b) of section 10(2) of this Act exists, the sheriff to whom the petition in the instant proceedings was presented may, on his own motion or at the instance of the debtor or any creditor or other person having an interest, direct the Accountant in Bankruptcy to dismiss the debtor application.
[F2(3A)The Accountant in Bankruptcy must grant a recall of an award of sequestration if—
(a)sequestration has been awarded by virtue of a debtor application, and
(b)the sheriff directs the Accountant in Bankruptcy to dismiss the debtor application.
(3B)The effect of the recall of an award of sequestration is, so far as practicable, to restore the debtor and any other person affected by the sequestration to the position the debtor or, as the case may be, the other person would have been in if the sequestration had not been awarded.
(3C)A recall of an award of sequestration does not—
(a)affect the interruption of prescription caused by—
(i)the presentation of the petition for sequestration,
(ii)the making of the debtor application, or
(iii)the submission of a claim under section 22 or 48,
(b)invalidate any transaction entered into before such recall by the interim trustee, or by the trustee, with a person acting in good faith, or
(c)affect a bankruptcy restrictions order which has not been annulled under section 56J(1)(a).
(3D)Without delay after granting a recall of an award of sequestration under subsection (3A), the Accountant in Bankruptcy must send a certified copy of the decision to the Keeper of the Register of Inhibitions for recording in that register.]
(4)Where, in the course of instant proceedings which are by debtor application, any of the circumstances mentioned in paragraphs (a) to (d) of section 10(2) of this Act exists, the Accountant in Bankruptcy may dismiss the debtor application in the instant proceedings.
(5)Where, in respect of the same estate–
(a)a petition for sequestration is pending before a sheriff; and
(b)an application for an analogous remedy is proceeding or an analogous remedy is in force,
the sheriff, on his own motion or at the instance of the debtor or any creditor or other person having an interest, may allow the petition for sequestration to proceed or may sist or dismiss it.
(6)Where, in respect of the same estate–
(a)a debtor application has been made and has not been determined; and
(b)an application for an analogous remedy is proceeding or an analogous remedy is in force,
the Accountant in Bankruptcy may proceed to determine the application or may dismiss it.]
Textual Amendments
F1Ss. 10, 10A substituted (1.4.2008) for s. 10 by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 8 (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F2S. 10A(3A)-(3D) inserted (1.4.2015) by Bankruptcy and Debt Advice (Scotland) Act 2014 (asp 11), ss. 12, 57(2); S.S.I. 2014/261, art. 3 (with arts. 4-7, 12) (as amended by S.S.I. 2015/54, art. 2)