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Joint Committee on Legislation debate -
Friday, 29 Mar 1985

SECTION 30.

Question proposed: "That section 30 stand part of the Bill."

This section deals with an action by the official assignee in his own name and in the name of a non-bankrupt partner to recover a debt due to a partnership where one of the members is a bankrupt. It re-enacts the present law as set out in section 278 of the 1857 Act, with one change, namely, that only the official assignee may be authorised to commence such an action. At the moment the authorisation is given to the "assignees", i.e. the official assignee and the creditor's assignee.

Section 30 provides that, where a member of a partnership is adjudicated, the court may authorise the official assignee to sue in his own name and in the name of the solvent partner, and any release by such partner of the debt or demand to which the action relates will be void. But notice of the application for leave so to sue must be given to the partner, who may show cause against it and the court may direct that he shall receive his proper share of the amount recovered. If, however, he claims no benefit from the action he will be indemnified against costs in respect of it as the court directs.

That seems to be the same as section 80 of the committee's draft Bill.

Question put and agreed to.
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