Commonwealth Numbered Acts

BANKRUPTCY AMENDMENT ACT 1980 No. 12 of 1980 - SECT 47

47. (1) Section 102 of the Principal Act is amended by adding at the end
thereof the following sub-sections:



"(3) Where the trustee considers that a proof of debt has been wrongly
admitted, he may-

   (a)  revoke the decision to admit the proof of debt and reject it in whole;
        or

   (b)  amend the decision to admit the proof of debt by increasing or
        reducing the amount of the admitted debt.



"(4) Where the trustee considers that a proof of debt has been wrongly
rejected in whole, he may-

   (a)  revoke the decision to reject the proof of debt; and

   (b)  admit the proof of debt in whole or admit the proof of debt in part
        and reject it in part.



"(5) Where the trustee revokes a decision to admit a proof of debt and rejects
it in whole or amends such a decision by reducing the amount of the admitted
debt-

   (a)  he shall inform the creditor by whom it was lodged, in writing, of his
        grounds for the revocation or amendment; and

   (b)  the creditor shall forthwith repay to the trustee any amount received
        by way of dividend in respect of the proof of debt or any amount
        received by way of dividend in excess of the amount that the creditor
        would have been entitled to receive if his debt had been originally
        admitted for the reduced amount, as the case requires.



"(6) Where the trustee revokes a decision to reject a proof of debt in whole,
or amends a decision to admit a proof of debt in part by increasing the amount
of the admitted debt, the creditor by whom it was lodged is entitled to be
paid, out of available money for the time being in the hands of the trustee,
the dividends or additional amounts of dividend, as the case may be, that the
creditor would have been entitled to receive if the debt had been originally
admitted in whole or for the increased amount, as the case may be, before the
available money is applied in the payment of a further dividend, but the
creditor is not entitled to disturb the distribution of any dividends declared
before the trustee revoked or so amended the decision.".

(2) Section 102 of the Principal Act is amended by omitting from sub-section
(1) "from the date specified in the notice of intention to declare a dividend
as the latest date on" and substituting "after the expiration of the period
specified in the notice of intention to declare a dividend as the period
within".

(3) Sub-sections 102 (3), (4), (5) and (6) of the Principal Act as amended by
sub-section (1) of this section apply in relation to a proof of debt that was
lodged with the trustee before, or is lodged with the trustee after, the
commencement of this sub-section.