BANKRUPTCY ACT 1966
Where a member of a partnership becomes a bankrupt, the Court may, upon the application of the trustee, authorize the trustee to commence and prosecute any action in the names of the trustee and of the bankrupt ' s partner or partners.61(2) [Partner may dispute authorization]
Notice of the application for authority to commence the action shall be given to the bankrupt ' s partner or partners, who, or any of whom, may show cause against it.61(3) [Court ' s powers]
Upon application by such a partner, the Court may, if it thinks fit, direct that that partner shall receive the share of the proceeds of the action to which he or she is entitled as a partner.61(4) [Indemnity against costs]
If a partner does not claim any benefit from the action, the Court may order that he or she be indemnified against costs in respect of the action.61(5) [Release of debt void against trustee]
Unless the Court otherwise orders, a release by a partner of the debt or demand to which the action relates made after notice has been given to him or her under this section is void as against the trustee.61(6) [Application of section]
This section applies to and in relation to joint debtors who are not partners as if they were partners.