Sections 189 and 328: Interest on debts
24. Sections 189 and 328(4) and (5) are modified so as to read as follows—
“189.—(1) In the winding up of an insolvent partnership or the winding up or bankruptcy (as the case may be) of any of its insolvent members interest is payable in accordance with this section, in the order of priority laid down by sections 175A and 175B, on any debt proved in the winding up or bankruptcy, including so much of any such debt as represents interest on the remainder.
(2) Interest under this section is payable on the debts in question in respect of the periods during which they have been outstanding since the winding-up order was made against the partnership or any corporate member (as the case may be) or the bankruptcy order was made against any individual member.
(3) The rate of interest payable under this section in respect of any debt (“the official rate” for the purposes of any provision of this Act in which that expression is used) is whichever is the greater of—
(a)the rate specified in section 17 of the Judgments Act 1838(1) on the day on which the winding-up or bankruptcy order (as the case may be) was made, and
(b)the rate applicable to that debt apart from the winding up or bankruptcy.”.