Joint Committee on Legislation debate -
Friday, 29 Mar 1985

SECTION 38.

Question proposed: "That section 38 stand part of the Bill."

Deputy Noonan (Limerick East)

This section makes statutory the existing practice whereby the bankrupt or his solicitor applies to the court for a stay on the realisation of the estate to enable the bankrupt to make an offer of composition to his creditors.

Section 38 remedies one of the defects noted by the committee in the present system, namely, the lack of a statutory basis for the practice whereby a composition is set in motion by an application to the court by the bankrupt's solicitor for a stay on the realisation of the estate and to allow the bankrupt to continue trading.

At present, a stay is granted to a specified date and subject to the bankrupt giving security to the official assignee for the value of his goods and gazetting an offer of composition to his creditors before that date.

Senator O'Leary

We have seen since we met on the last occasion that there has been a composition case mentioned in the newspaper as regards contempt by RTE by publishing in a programme the fact that a person was a bankrupt despite a court order prohibiting publication. I consider that the publication of the proceeding was in itself a further contempt. Perhaps we should look at this aspect here.

Deputy Noonan (Limerick East)

I am aware of the case, but as the matter is still sub judice I am not prepared to discuss it.

Senator O'Leary

I am not suggesting that the Minister discuss the particular case. I am worried about the fact that publication of this kind can happen. I would like to discuss the matter privately with the Minister sometime.

Question put and agreed to.