12 When sequestration is awarded.S
[F1(1)Where a petition for the sequestration of his estate is presented by the debtor, unless cause is shown why sequestration cannot competently be awarded, the court shall award sequestration forthwith if it is satisfied—
(a)that the petition has been presented in accordance with the provisions of this Act;
(b)that either subsection (2A) or (2B) of section 5 of this Act applies to the debtor; and
(c)that the provisions of subsections (6) and (6A) of that section have been complied with.]
[F2(1A)Where a petition is presented as mentioned in subsection (1) above, the Accountant in Bankruptcy may, not later than 7 days after the date on which sequestration is awarded, apply to the court for the grant of a certificate for the summary administration of the sequestration of the debtor’s estate.]
(2)Where a petition for sequestration of a debtor’s estate is presented by a creditor or a trustee acting under a trust deed, the court to which the petition is presented shall grant warrant to cite the debtor to appear before it on such date as shall be specified in the warrant, being a date not less than 6 nor more than 14 days after the date of citation, to show cause why sequestration should not be awarded.
[F3(3)Where, on a petition for sequestration presented by a creditor or a trustee acting under a trust deed, the court is satisfied—
(a)that, if the debtor has not appeared, proper citation has been made of the debtor;
(b)that the petition has been presented in accordance with the provisions of this Act;
(c)that the provisions of subsection (6) of section 5 of this Act have been complied with;
(d)that, in the case of a petition by a creditor, the requirements of this Act relating to apparent insolvency have been fulfilled; and
(e)that, in the case of a petition by a trustee, the averments in his petition as to any of the conditions in subsection (2C) of the said section 5 are true,
it shall, subject to subsection (3A) below, award sequestration forthwith.
(3A)Sequestration shall not be awarded in pursuance of subsection (3) above if—
(a)cause is shown why sequestration cannot competently be awarded; or
(b)the debtor forthwith pays or satisfies, or produces written evidence of the payment or satisfaction of, or gives or shows that there is sufficient security for the payment of—
(i)the debt in respect of which he became apparently insolvent; and
(ii)any other debt due by him to the petitioner and any creditor concurring in the petition.]
[F1(4)In this Act “the date of sequestration” means—
(a)where the petition for sequestration is presented by the debtor, the date on which sequestration is awarded;
(b)where the petition for sequestration is presented by a creditor or a trustee acting under a trust deed—
(i)the date on which the court grants warrant under subsection (2) above to cite the debtor; or
(ii)where more than one such warrant is granted, the date on which the first such warrant is granted.]
Textual Amendments
F1S. 12(1) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 4(2) (with s. 12(6)); S.I. 1993/438, art.3
S. 12(4) substituted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 4(5) (with s. 12(6)); S.I. 1993/438, art.3
F2S. 12(1A) inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 4(3) (with s. 12(6)); S.I. 1993/438, art.3
F3S. 12(3)(3A) substituted for s. 12(3) (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 4(4) (with s. 12(6)); S.I. 1993/438, art.3