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Bankruptcy (Scotland) Act 2016

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This is the original version (as it was originally enacted).

30Recall of sequestration by sheriff

(1)The sheriff may recall the award of sequestration if satisfied that in all the circumstances of the case (including those arising after the date of the award) it is appropriate to do so.

(2)In particular, the sheriff may recall the award if satisfied—

(a)that the debtor has paid the debtor’s debts in full,

(b)that a majority in value of the creditors reside in a country other than Scotland and that it is more appropriate for the debtor’s estate to be administered in that other country, or

(c)that another award of sequestration of the estate, or of an analogous remedy, as defined in section 17(8), has (or other such awards have) been granted.

(3)Where another award of sequestration of the debtor’s estate has been granted, the sheriff may, after such intimation as the sheriff considers necessary, recall an award (whether or not the award in respect of which the petition for recall was presented).

(4)Where the sheriff intends to recall an award of sequestration on the ground that the debtor has paid the debtor’s debts in full, the order recalling the award may not—

(a)be made before the payment in full of the outlays and remuneration of the trustee and of the interim trustee, or

(b)be subject to any conditions which are to be fulfilled before the order takes effect.

(5)On or before recalling an award of sequestration, the sheriff—

(a)must make provision for the payment of the outlays and remuneration of the trustee in the sequestration (see section 50(1)) and of any interim trustee (see section 53(1))—

(i)by directing that such payment must be made out of the debtor’s estate, or

(ii)by requiring that a person who was a party to the petition for sequestration, or as the case may be to the debtor application, must pay the whole or any part of those outlays and remuneration,

(b)may direct that payment of the expenses of a creditor who was a petitioner for sequestration, or concurred in the debtor’s application for sequestration, must be made out of the debtor’s estate, and

(c)may make any further order the sheriff considers necessary or reasonable in all the circumstances of the case.

(6)Subsection (5)(b) is without prejudice to subsection (8).

(7)Where the sheriff considers that it is inappropriate to recall, or to refuse to recall, an award of sequestration forthwith, the sheriff may order that the proceedings in the sequestration are to continue but are to be subject to such conditions as the sheriff may think fit.

(8)The sheriff may make such order in relation to the expenses in a petition for recall as the sheriff thinks fit.

(9)The sheriff clerk must send—

(a)a certified copy of any order recalling an award of sequestration to the Keeper of the Register of Inhibitions for recording in that register, and

(b)a copy of any interim or final order recalling, or refusing to recall, an award of sequestration or a copy of any order under section 114(3)(b) or 115(3)(b)—

(i)to AiB, and

(ii)if AiB is not the trustee in the sequestration, to the trustee in the sequestration.

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