Award of sequestration and appointment and resignation of interim trustee

17 Recall of sequestration.

1

The F1sheriff may recall an award of sequestration if F2he is satisfied that in all the circumstances of the case (including those arising after the date of the award of sequestration) it is appropriate to do so and, without prejudice to the foregoing generality, may recall the award if F2he is satisfied that—

a

the debtor has paid his debts in full or has given sufficient security for their payment;

b

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

one or more other awards of sequestration of the estate or analogous remedies (as defined in F3section 10(7) of this Act) have been granted.

2

Where one or more awards of sequestration of the debtor’s estate have been granted, the F4sheriff may, after such intimation as F5he considers necessary, recall an award whether or not the one in respect of which the petition for recall was presented.

3

On recalling an award of sequestration , the F6sheriff—

a

shall make provision for the payment of the outlays and remuneration of the interim trustee and F7the trustee by directing that such payment shall be made out of the debtor’s estate or by requiring any person who was a party to the petition for sequestration F8or, as the case may be, the debtor application to pay the whole or any part of the said outlays and remuneration;

b

without prejudice to subsection (7) below, may direct that payment of the expenses of a creditor who was a petitioner, or concurred in the F9debtor application , for sequestration shall be made out of the debtor’s estate;

c

may make any further order that F10he considers necessary or reasonable in all the circumstances of the case.

4

Subject to subsection (5) below, the effect of the recall of an award of sequestration shall be, so far as practicable, to restore the debtor and any other person affected by the sequestration to the position he would have been in if the sequestration had not been awarded.

5

A recall of an award of sequestration shall not—

a

affect the interruption of prescription caused by the presentation of the petition for sequestration F11, the making of the debtor application or the submission of a claim under section 22 or 48 of this Act;

b

invalidate any transaction entered into before such recall by the interim trustee or F12the trustee with a person acting in good faith.

F13c

affect a bankruptcy restrictions order which has not been annulled under section 56J(1)(a) of this Act.

6

Where the F14sheriff considers that it is inappropriate to recall or to refuse to recall an award of sequestration forthwith, F15he may order that the proceedings in the sequestration shall continue but shall be subject to such conditions as F15he may think fit.

7

The F16sheriff may make such order in relation to the expenses in a petition for recall as F17he thinks fit.

8

The F18sheriff clerk shall send—

a

a certified copy of any order recalling an award of sequestration to the keeper of the register of inhibitions and adjudications for recording in that register; and

b

a copy of any order recalling or refusing to recall an award of sequestration, or of any order under section 41(1)(b)(ii) F19or 41A(1)(b)(ii) of this Act, to—

i

the Accountant in Bankruptcy; and

ii

the F20. . . trustee (if any) who shall insert it in the sederunt book.