Bankruptcy Act 1966

PART IV - PROCEEDINGS IN CONNEXION WITH BANKRUPTCY  

Division 2 - Creditors ' petitions  

SECTION 50   TAKING CONTROL OF DEBTOR ' S PROPERTY BEFORE SEQUESTRATION  

50(1)    

At any time after a bankruptcy notice is issued, or a creditor ' s petition is presented, in relation to a debtor, but before the debtor becomes a bankrupt, the Court may:

(a)    direct the Official Trustee or a specified registered trustee to take control of the debtor ' s property; and

(b)    make any other orders in relation to the property.

50(1A)    
The Court may give a direction or make an order only if:

(a)    a creditor has applied for the Court to make a direction; and

(b)    the Court is satisfied that it is in the interests of the creditors to do so; and

(c)    the debtor has not complied with the bankruptcy notice.

50(1B)    
If the Court directs a trustee to take control of the debtor ' s property, the Court must specify when the control is to end.

50(2)    
Without limiting the generality of subsection (1) , the Court may, at any time after giving a direction under subsection (1) , summon the debtor, or an examinable person in relation to the debtor, for examination under this section in relation to the debtor.

50(3)    
A summons to a person under subsection (2) shall require the person to attend:

(a)    at a specified place and at a specified time on a specified day; and

(b)    before the Court, the Registrar or a magistrate, as specified in the summons;

to be examined on oath under this section about the debtor and the debtor ' s examinable affairs.

50(4)    
A summons to a person under subsection (2) may require the person to produce at the examination books (including books of an associated entity of the debtor) that:

(a)    are in the possession of the first-mentioned person; and

(b)    relate to the debtor or to any of the debtor ' s examinable affairs.

50(5)    
For the purpose of the examination under this section of a person summoned under subsection (2) , subsections 81(2) to (17) , inclusive, apply, with any modifications prescribed by the regulations, as if:

(a)    a sequestration order had been made against the debtor when the Court gave the direction under subsection (1) of this section;

(b)    the examination were being held under section 81 ; and

(c)    a reference in those subsections to a creditor were a reference to a person who has a debt that would be provable in the debtor ' s bankruptcy if a sequestration order had been made as mentioned in paragraph (a) of this subsection.