asked the Minister for Justice if he is aware that, by virtue of the combined operations of section 14 of the Conveyancing Act, 1881, and section 2 (2) of the Conveyancing and Law of Property Act, 1892, it is not possible effectively to operate a forfeiture clause in a lease on foot of a breach of bankruptcy clause, until a period of twelve months has expired from the date of bankruptcy unless the official assignee in bankruptcy elects not to take over the bankrupt's interest in the lease; and, if so, if he will consider introducing amending legislation to rectify the position.
Written Answers. - Forfeiture Clauses in Leases.
87.
I am not aware that the operation of the enactments referred to by the Deputy has caused hardship on any significant scale to landlords where there is a covenant in the lease for forfeiture in the event of the lessee's bankruptcy and where, in fact, the lessee becomes bankrupt. The landlord may invoke his remedy for breach of covenant at any time after one year from the date of bankruptcy if the property has not been sold by then, or he may apply to the official assignee either to elect to take over the lessee's interest or to disclaim it.
However, there is a committee at present engaged on the modernisation and consolidation of the entire bankruptcy law and I shall bring the matter to their notice.