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Joint Committee on Legislation debate -
Friday, 24 May 1985

SECTION 71.

Question proposed: "That section 71 stand part of the Bill."

This section which empowers the court to make such allowances to the bankrupt out of his estate as it considers to be proper in the special circumstances of the case is based on sections 301 of the 1857 Act. Under that section the court may make such allowances as it thinks fit for the maintenance of the bankrupt and his family. The committee preferred to re-enact the provisions in more general terms. They point out that great social changes have taken place since 1857 when people who were adjudicated were destitute when left without home or business. They felt that applications by a bankrupt for an allowance should not be granted as a matter of course. Instead, such applications should be dealt with by the judge who having regard to the circumstances of each individual case and the assets available for distribution could best decide whether to grant or refuse them. Other existing provisions which provide allowances in consideration of certain services or functions which the bankrupt performs, for example, management of the estate, were not recommended for re-enactment by the committee because they either came within the scope of the expenses of the bankruptcy and therefore did not need to be specifically provided for or because the amount involved was low and was seldom requested by the bankrupt.

Question put and agreed to.
Question proposed: "That section 72 stand part of the Bill".

This re-enacts in principle the existing law, the provision authorising the redirection of the bankrupt's correspondence is a common characteristic of bankruptcy laws. In accordance with the committee's recommendations the section limits the availability of the court order as at present to three months at a time but extends the provisions of the 1857 Act to include telegrams and postal packages. The section is so phrased that the court can ensure that the bankrupt's correspondence may be reforwarded to him where appropriate. The original section does not specify by whom the application for redirection of the bankrupt's mail may be made. Section 72 states that the Official Assignee only can apply. This is one of the constraints to which a bankrupt is subjected, to secure his co-operation. Others are his duty to make full disclosure of his property, his subjection to a summons and examination and to arrest and commital in certain circumstances.

It is rather strange that we are now changing the 1857 law to include telegrams while I have no doubt we are on the verge of eliminating telegrams. Telegrams have been there for the whole of their length of time without being in the Act and we are now bringing them into it just as they are about to expire. That is like a fellow being baptised just before he dies, which always struck me as being a very very efficient way of doing business.

On the point raised by Senator O'Leary, is there a point for putting in telexes and so on or are they assumed to be included here?

We will have a look at that.

And whatever else is invented between now and then.

They are probably included.

Question put and agreed to.
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