BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 4A - Orders in relation to property of entity controlled by bankrupt or from which bankrupt derived a benefit  

SECTION 139D   ORDER RELATING TO PROPERTY OF ENTITY OTHER THAN A NATURAL PERSON  

139D(1)   [Circumstances where order may have effect]  

Where, on an application under section 139A for an order in relation to a respondent entity other than a natural person, the Court is satisfied that:


(a) the bankrupt supplied personal services to, or for or on behalf of, the respondent entity at a time or times, during the examinable period and before the end of the bankruptcy, when the bankrupt controlled the entity in relation to the supply of those services;


(b) either:


(i) the bankrupt received for those services no remuneration in money or other property; or

(ii) the remuneration in money or other property that the bankrupt received for those services was substantially less in amount or value than a person supplying those services in similar circumstances might reasonably be expected to have received if the person had dealt with the entity at arm ' s length in relation to the supply of those services;


(c) during the examinable period, the entity acquired an estate in particular property as a direct or indirect result of, or of matters including, the supply by the bankrupt of those services;


(d) the bankrupt used, or derived (whether directly or indirectly) a benefit from, the property at a time or times during the examinable period when the bankrupt controlled the entity in relation to the property; and


(e) the entity still has an estate in the property;

subsections (2) and (3) have effect, whether or not the bankrupt has ever had an estate in the property.

139D(2)   [Vesting orders]  

The Court may, by order, vest in the applicant:


(a) the entity ' s estate in the whole, or in a specified part, of the property; or


(b) a specified estate in the whole, or in a specified part, of the property, being an estate that could, by virtue of the entity ' s estate in the property, be so vested by or on behalf of the entity.

139D(3)   [Other orders]  

The Court may make an order directing:


(a) the execution of an instrument;


(b) the production of documents of title; or


(c) the doing of any other act or thing;

in order to give effect to an order under this section made on the application.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.