Commonwealth Numbered Acts

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BANKRUPTCY AMENDMENT ACT 1980 No. 12 of 1980 - SECT 112


112. (1) Section 212 of the Principal Act is repealed and the following
sections are substituted: Court may order controlling trustee to make good
loss sustained by negligence, &c.

"212. (1) Where the Registrar is of the opinion, whether as a result of an
account furnished to him in pursuance of section 211 or of an audit under that
section or for any other reason, that a trustee who is or has been a
controlling trustee may have been guilty of malfeasance, misfeasance,
negligence, wilful default or breach of trust in relation to the property or
affairs of the debtor, the Registrar may apply to the Court for an order under
sub-section (2).



"(2) The Court may order that the trustee make good any loss that has been
sustained by reason of the malfeasance, misfeasance, negligence or wilful
default of, or a breach of trust by, the trustee or may make such other order
as the Court thinks just and equitable in the circumstances. Appeal to the
Court against controlling trustee's decision, &c.

"212A. If the debtor, a creditor or any other person is affected by an act,
omission or decision, of the controlling trustee, being an act, omission or
decision done, omitted to be done or made, as the case may be, after the
commencement of this section, he may apply to the Court, and the Court may
make such order in the matter as it thinks just and equitable. Control of
controlling trustees by the Court

"212B. (1) The Court may, on the application of the Registrar, a creditor or
the debtor, inquire into the conduct of a trustee in relation to an authority
under section 188 and may do either or both of the following:

   (a)  remove the trustee from office;

   (b)  make such order as it thinks proper.



"(2) The Registrar or a creditor may at any time require a trustee to answer
an inquiry in relation to the property or affairs of a debtor who has executed
an authority under section 188.



"(3) The Registrar or a creditor may apply to the Court to examine a trustee
or any other person in relation to an authority under section 188.



"(4) Without limiting the generality of sub-section (3), where the Official
Trustee is acting, or has acted, as the controlling trustee, application may
be made to the Court under that sub-section to examine the Official Receiver
for the District in which the debtor executed the authority under section
188.".

(2) Notwithstanding the repeal of section 212 of the Principal Act effected by
sub-section (1) of this section, the provisions of that section of the
Principal Act continue to apply, after the commencement of this section, in
relation to acts done, or omitted to be done, in relation to the property or
affairs of a debtor before the commencement of this section as if that section
of the Principal Act had not been repealed. 


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