Section 54 substantially re-enacts the present law which releases from claims by a bankrupt, persons who paid to the Official Assignee debts which are owed to the bankrupt or who hand over the bankrupt's property to the Official Assignee. This protection applies even if the bankruptcy is subsequently annulled. In accordance with the committee's recommendations, section 54 extends the present protection to include a situation where the bankruptcy is subsequently discharged. That is recommended in the report at paragraph 21.3.1. This is in keeping with the fact that annulment under the Bill will be granted on narrower grounds than at present while there will be many circumstances under which a bankruptcy may be discharged. Section 85 is the relevant section. Section 54 protects from claims by a bankrupt any person from whom the official assignee has recovered or received the bankrupt's property, or who has paid to the official assignee debts owed to the bankrupt, nothwithstanding that the bankruptcy is subsequently annulled or discharged. It is substantially a re-enactment of existing law.
SECTION 54.
Question proposed: "That section 54 stand part of the Bill."
Question put and agreed to.