Arterial Drainage Act, 1945

SECOND SCHEDULE.

Disposal of Assets and Discharge of Liabilities of Dissolved Drainage Bodies.

1. In this Schedule—

the expression “the principal section” means the section of this Act by virtue of which such of the provisions of this Schedule as are applicable have effect in relation to a dissolved body,

the expression “dissolved body” means a body of trustees or a drainage board which on the appointed day becomes dissolved by virtue of the principal section,

the expression “the appointed day” has the same meaning as it has in the principal section,

the word “council” means the council of a county,

the expression “transferee council or councils” means the council or councils to which the control and management of an existing drainage district is transferred by Part III of this Act,

the word “assets” includes, in relation to a dissolved body, all property whatsoever whether real or personal and whether in possession or in action, but does not include the existing drainage works in the drainage district of such dissolved body,

the word “liability” includes, in relation to a dissolved body, all debts and liabilities whatsoever whether liquidated or unliquidated and whether present, contingent, or future.

2. Every person who, immediately before the appointed day, holds any office under or is employed by a dissolved body shall, on that day, cease to hold such office or to be so employed, but such cesser shall not prevent any such person from being temporarily employed after the appointed day by the transferee council or councils in relation to the winding-up of the affairs of such dissolved body.

3. The transferee council or councils of a dissolved body may, in their discretion but subject to the consent of the Minister for Local Government and Public Health, award to any person who, immediately before the appointed day, held any office under such dissolved body an ex gratia payment which shall be regarded as a liability of such dissolved body and the amount of which—

(a) shall not exceed whichever of the following sums is the less:

(i) one-fourth of the annual remuneration (exclusive of any allowance for expenses) payable immediately before the appointed day to such person by such dissolved body multiplied by the number of his completed years of service with such dissolved body,

(ii) twice the annual remuneration (exclusive of any allowance for expenses) payable immediately before the appointed day to such person by such dissolved body, and

(b) shall, subject to the foregoing limitation, be determined with due regard to the following matters:

(i) the terms and conditions of the employment of such person by such dissolved body,

(ii) the nature and duration of such employment and the manner in which such person discharged the duties thereof,

(iii) the probability (if any) that such person would have been continued in such employment for a longer period if this Act had not been passed,

(iv) any other circumstances affecting the case.

4. As soon as may be after the appointed day, the transferee council or councils of a dissolved body shall ascertain and determine the assets and liabilities of such dissolved body and, for that purpose, such dissolved body and its officers and servants shall produce and hand over to such transferee council or councils all books, accounts, and other documents in their possession or procurement belonging to such dissolved body or relating to its transactions or affairs.

5. (a) As soon as may be after the appointed day, the transferee council or councils of a dissolved body shall, cause to be published in such manner as they think most suitable a notice requiring all persons having claims against such dissolved body to lodge their claims with such transferee council or councils within a specified period (not being less than one month from the first publication of such notice) and stating that no claim which is not so lodged will be entertained or discharged.

(b) Where such notice has been published it shall not be obligatory on the transferee council or councils to entertain or discharge any claim which is not lodged in accordance with such notice within the period therein specified.

6. On the appointed day—

(a) all the assets of a dissolved body shall be transferred to and become the property of the transferee council or councils and shall, if and in so far as they consist of debts or other choses-in-action, be recoverable by such council or councils accordingly, and

(b) all the liabilities of a dissolved body shall become and be a liability of the transferee council or councils and shall be paid or discharged by such council or councils accordingly.

7. No suit or action which is pending in any Court on the appointed day and to which a dissolved body is a party shall abate by reason of the dissolution of such dissolved body, but in lieu thereof the transferee council or councils of such dissolved body shall become and be parties to such suit or action in the place of such dissolved body and such suit or action shall continue accordingly.

8.(a) All assets of a dissolved body which become, by virtue of this Schedule, the property of the transferee council of such dissolved body shall be paid into or disposed of for the benefit of the county fund of such council.

(b) All liabilities of a dissolved body which become, by virtue of this Schedule, dischargeable by the transferee council of such dissolved body shall be paid and discharged out of the county fund of such council.

9. (a) All assets of a dissolved body which become, by virtue of this Schedule, the property of two or more transferee councils of such dissolved body shall become the property of such councils and shall be paid into or disposed of for the benefit of their respective county funds in the proportions hereinafter specified.

(b) All liabilities of a dissolved body which become, by virtue of this Schedule, dischargeable by two or more transferee councils of such dissolved body shall be paid and discharged by such councils out of their respective county funds in the proportions hereinafter specified.

(c) The proportions in which assets or liabilities of a dissolved body become under this Schedule the property of or dischargeable by two or more transferee councils shall be such proportions as may be agreed upon by such councils having regard to the provisions of the Award or final award in respect of the drainage district of such dissolved body or, in default of such agreement, shall be determined by the Minister for Local Government and Public Health (having regard as aforesaid) on the application of any one or more of such councils.

10. (a) The moneys required by a council for the discharge, in pursuance of this Schedule, of the liabilities or a proportion of the liabilities of a dissolved body shall (in so far as such moneys cannot be provided out of the assets or the portion of the assets of such dissolved body received by such council) be raised by such council by means of the poor rate as a county-at-large charge or may, with the consent of the Minister for Local Government and Public Health, be provided (in so far as aforesaid) by borrowing under Article 22 of the Local Government (Application of Enactments) Order, 1898, in like manner as if that purpose were mentioned in that Article.

(b) Money borrowed by a council under this paragraph shall not be reckoned as part of the debt of such council for the purposes of the said Article 22.

11. In relation to the collection by the transferee council or councils of the debts (including arrears of drainage rate or drainage charge) due to a dissolved body and transferred to such council or councils by virtue of this Schedule, such council or councils may in their discretion remit wholly or in part any such debt or make such concession as they shall think proper in regard to the mode or time of payment of the whole or any part of any such debt.