Bankruptcy and Diligence etc. (Scotland) Act 2007

10Termination of interim trustee's functionsS

This sectionnoteType=Explanatory Notes has no associated

After section 13 of the 1985 Act, insert—

13ATermination of interim trustee's functions where not appointed as trustee

(1)This section applies where an interim trustee (not being the Accountant in Bankruptcy) is appointed under section 2(5) of this Act and the sheriff—

(a)awards sequestration and appoints another person as trustee under subsection (2A) or (2C) of section 2 of this Act; or

(b)refuses to award sequestration.

(2)Where the sheriff awards sequestration and appoints another person as trustee, the interim trustee shall hand over to the trustee everything in his possession which relates to the sequestration and shall thereupon cease to act in the sequestration.

(3)The sheriff may make such order in relation to liability for the outlays and remuneration of the interim trustee as may be appropriate.

(4)Within 3 months of the sheriff awarding or, as the case may be, refusing to award sequestration, the interim trustee shall—

(a)submit to the Accountant in Bankruptcy—

(i)his accounts of his intromissions (if any) with the debtor's estate; and

(ii)a claim for outlays reasonably incurred, and for remuneration for work reasonably undertaken, by him; and

(b)send a copy of his accounts and the claim to—

(i)the debtor;

(ii)the petitioner; and

(iii)in a case where sequestration is awarded, the trustee and all creditors known to the interim trustee.

(5)On a submission being made to him under subsection (4)(a) above, the Accountant in Bankruptcy shall—

(a)audit the accounts;

(b)issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee;

(c)send a copy of the determination to—

(i)the interim trustee; and

(ii)the persons mentioned in subsection (4)(b) above; and

(d)where a trustee (not being the Accountant in Bankruptcy) has been appointed in the sequestration, send a copy of the audited accounts and of the determination to the trustee, who shall insert them in the sederunt book.

(6)Where the Accountant in Bankruptcy has been appointed as the trustee in the sequestration, the Accountant in Bankruptcy shall insert a copy of the audited accounts and the determination in the sederunt book.

(7)The interim trustee or any person mentioned in subsection (4)(b) above may, within 14 days after the issuing of the determination under subsection (5)(b) above, appeal to the sheriff against the determination.

(8)On receiving a copy of the Accountant in Bankruptcy's determination sent under subsection (5)(c)(i) above the interim trustee may apply to him for a certificate of discharge.

(9)The interim trustee shall send notice of an application under subsection (8) above to the persons mentioned in subsection (4)(b) above and shall inform them—

(a)that they may make written representations relating to the application to the Accountant in Bankruptcy within the period of 14 days after such notification; and

(b)of the effect mentioned in subsection (16) below.

(10)On the expiry of the period mentioned in subsection (9)(a) above the Accountant in Bankruptcy, after considering any representations duly made to him, shall—

(a)grant or refuse to grant the certificate of discharge; and

(b)notify the persons mentioned in subsection (4)(b) above accordingly.

(11)The interim trustee or any person mentioned in subsection (4)(b) above may, within 14 days after the issuing of the determination under subsection (10) above, appeal therefrom to the sheriff.

(12)If, following an appeal under subsection (11) above, the sheriff determines that a certificate of discharge which has been refused should be granted he shall order the Accountant in Bankruptcy to grant it.

(13)If, following an appeal under subsection (11) above, the sheriff determines that a certificate of discharge which has been granted should have been refused he shall revoke the certificate.

(14)The sheriff clerk shall send a copy of the decree of the sheriff following an appeal under subsection (11) above to the Accountant in Bankruptcy.

(15)The decision of the sheriff in an appeal under subsection (7) or (11) above shall be final.

(16)The grant of a certificate of discharge under this section by the Accountant in Bankruptcy shall have the effect of discharging the interim trustee from all liability (other than any liability arising from fraud) to the debtor, to the petitioner or to the creditors in respect of any act or omission of the interim trustee in exercising the functions conferred on him by this Act.

13BTermination of Accountant in Bankruptcy's functions as interim trustee where not appointed as trustee

(1)This section applies where the Accountant in Bankruptcy is appointed as interim trustee under section 2(5) of this Act and the sheriff —

(a)awards sequestration and appoints another person as trustee under section 2(2A) of this Act; or

(b)refuses to award sequestration.

(2)Where the sheriff awards sequestration and appoints another person as trustee, the Accountant in Bankruptcy shall hand over to the trustee everything in his possession which relates to the sequestration and shall thereupon cease to act in the sequestration.

(3)The sheriff may make such order in relation to liability for the outlays and remuneration of the Accountant in Bankruptcy as may be appropriate.

(4)Within 3 months of the sheriff awarding or, as the case may be, refusing to award sequestration, the Accountant in Bankruptcy shall—

(a)send to the debtor and the petitioner—

(i)his accounts of his intromissions (if any) with the debtor's estate;

(ii)a determination of his fees and outlays calculated in accordance with regulations made under section 69A of this Act; and

(iii)the notice mentioned in subsection (5) below; and

(b)in a case where sequestration is awarded, send a copy of his accounts, the claim and the notice to all creditors known to him.

(5)The notice referred to in subsection (4)(a)(iii) above is a notice in writing stating—

(a)that the Accountant in Bankruptcy has commenced procedure under this Act leading to discharge in respect of his actings as interim trustee;

(b)that an appeal may be made to the sheriff under subsection (7) below; and

(c)the effect mentioned in subsection (9) below.

(6)The Accountant in Bankruptcy shall, unless the sheriff refuses to award sequestration, insert a copy of the accounts and the determination in the sederunt book.

(7)The debtor, the petitioner and any creditor may, within 14 days after the sending of the notice under subsection (4)(a)(iii) or, as the case may be, subsection (4)(b) above, appeal to the sheriff against—

(a)the determination of the Accountant in Bankruptcy mentioned in subsection (4)(a)(ii) above;

(b)the discharge of the Accountant in Bankruptcy in respect of his actings as interim trustee;

(c)both such determination and discharge,

and the sheriff clerk shall send a copy of the decree of the sheriff to the Accountant in Bankruptcy.

(8)The decision of the sheriff in an appeal under subsection (7) above shall be final.

(9)Where—

(a)the requirements of this section have been complied with; and

(b)no appeal is made to the sheriff under subsection (7) above or such an appeal is made but is refused as regards the discharge of the Accountant in Bankruptcy,

the Accountant in Bankruptcy shall be discharged from all liability (other than any liability arising from fraud) to the debtor, to the petitioner or to the creditors in respect of any act or omission of the Accountant in Bankruptcy in exercising the functions of interim trustee conferred on him by this Act..