BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 3 - Property available for payment of debts  

Subdivision A - General  

SECTION 119   DUTIES OF SHERIFF AFTER RECEIVING NOTICE OF PRESENTATION OF PETITION ETC.  

119(1)   [Where notice of creditor ' s petition given to sheriff]  

Subject to this section, where notice in writing of the presentation of a creditor ' s petition against a debtor is given to a sheriff, the sheriff:


(a) shall refrain:


(i) from taking any action to sell property of the debtor in pursuance of any process of execution issued by or on behalf of a creditor; and

(ii) from taking any action on behalf of a creditor to attach a debt due to the debtor; and


(b) shall not:


(i) pay to the creditor by whom, or on whose behalf, the process of execution was issued, or to any person on his or her behalf, the proceeds of the sale of property of the debtor that has been sold in pursuance of any such process or any moneys seized, or paid to avoid seizure or sale of property of the debtor, in pursuance of any such process; or

(ii) pay to the creditor, or to any person on his or her behalf, any moneys received as a result of the attachment of the debt due to the debtor;

until the petition has been dealt with by the Court or has lapsed.

119(2)   [Sheriff to refrain until Court deals with petition]  

Subject to this section, where notice in writing of the reference to the Court of a debtor ' s petition against a debtor is given to a sheriff, the sheriff:


(a) shall refrain:


(i) from taking any action to sell property of the debtor in pursuance of any process of execution issued by or on behalf of a creditor; and

(ii) from taking any action on behalf of a creditor to attach a debt due to the debtor; and


(b) shall not:


(i) pay to the creditor by whom, or on whose behalf, the process of execution was issued, or to any person on his or her behalf, the proceeds of the sale of property of the debtor that has been sold in pursuance of any such process or any moneys seized, or paid to avoid seizure or sale of property of the debtor, in pursuance of any such process; or

(ii) pay to the creditor, or to any person on his or her behalf, any moneys received as a result of the attachment of the debt due to the debtor;

until the Court has dealt with the petition.

119(3)   [Creditor to give notice to sheriff]  

Where notice of the presentation of a creditor ' s petition against a debtor has been given under subsection (1) to a sheriff or notice of the reference to the Court of a debtor ' s petition against a debtor has been given under subsection (2) to a sheriff, a creditor who has issued a process of execution, or on whose behalf a process of execution has been issued, against property of the debtor, or who has taken action, or on whose behalf action has been taken, to attach a debt due to the debtor, in respect of a liability of the debtor under a maintenance agreement or maintenance order (whether entered into or made, as the case may be, before or after the commencement of this section) may give to the sheriff a written notice setting out details of the maintenance agreement or maintenance order, and, upon the giving of the notice, subsection (1) or (2), as the case may be, ceases to apply in relation to the process of execution or attachment, as the case may be.

119(4)   [Notice of creditor ' s petition given to registrar etc]  

Subject to this section, where notice in writing of the presentation of a creditor ' s petition against a debtor is given to the registrar or other appropriate officer of a court:


(a) to which the proceeds of the sale of property of the debtor or other moneys have been paid by a sheriff in pursuance of a process of execution issued, by or on behalf of a creditor, against property of the debtor; or


(b) to which moneys have been paid in pursuance of proceedings instituted, by or on behalf of a creditor, to attach a debt due to the debtor;

any of those proceeds or moneys not paid out of court shall not be paid to the creditor or to any person on his or her behalf until the petition has been dealt with by the Court or has lapsed.

119(5)   [Notice of debtor ' s petition]  

Subject to this section, where notice in writing of the reference to the Court of a debtor ' s petition against a debtor is given to the registrar or other appropriate officer of a Court:


(a) to which the proceeds of the sale of property of the debtor or other moneys have been paid by a sheriff in pursuance of a process of execution issued, by or on behalf of a creditor, against property of the debtor; or


(b) to which moneys have been paid in pursuance of proceedings instituted, by or on behalf of a creditor, to attach a debt due to the debtor;

any of those proceeds or moneys not paid out of court shall not be paid to the creditor or to any person on his or her behalf until the Court has dealt with the petition.

119(6)   [Notice of maintenance agreement or order]  

Where notice of the presentation of a creditor ' s petition against a debtor has been given under subsection (4) to the registrar or other appropriate officer of any court or notice of the reference to the Court of a debtor ' s petition against a debtor has been given under subsection (5) to the registrar or other appropriate officer of any court, a creditor who has issued a process of execution, or on whose behalf a process of execution has been issued, against property of the debtor, or who has taken action, or on whose behalf action has been taken, to attach a debt due to the debtor, in respect of a liability of the debtor under a maintenance agreement or maintenance order (whether entered into or made, as the case may be, before or after the commencement of this section) may give to the registrar or other officer a written notice setting out details of the maintenance agreement or maintenance order, and, upon the giving of the notice, subsection (4) or (5), as the case may be, ceases to apply in relation to the process of execution or attachment, as the case may be.

119(7)   [Costs of execution]  

Where a sheriff, in pursuance of subsection (1) or (2), refrains from taking action to sell property of a debtor (being real property), the debtor becomes a bankrupt and the property vests in the trustee in the bankruptcy, the costs of the execution are a first charge on that property.

119(8)   [Sheriff ' s failure to comply]  

A failure by a sheriff to comply with a provision of this section does not affect the title of a person who purchases property of a bankrupt in good faith under a sale by the sheriff in pursuance of a process of execution issued by or on behalf of a creditor.




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