Central Bank Act, 1971

Provisions in relation to judgments against holders of licences.

28.—(1) Whenever a person (in this section referred to as a judgment creditor) obtains in any court in the State a judgment, order or decree against the holder of a licence (in this section referred to as a judgment debtor) for the payment of a sum of money due to the judgment creditor by the judgment debtor in his capacity as a banker—

(a) the registrar or clerk of the court concerned shall notify the Bank as soon as may be of the judgment, order or decree and of its terms and of any appeal against the judgment, order or decree and of the result thereof,

(b) subject to paragraph (c) of this subsection, if within the period of twenty-one days beginning on the date of the judgment, order or decree, the judgment debtor does not pay all moneys due (or, in the case of costs, at the option of the judgment debtor, give security therefor in lieu of payment), or satisfy all claims, under the judgment, order or decree, the provisions of paragraph (e) of this subsection shall apply upon the expiration of such period,

(c) if an appeal is instituted in any court against the judgment, order or decree, that court or the court by which the judgment, order or decree was made may by order postpone the application of paragraph (e) of this subsection for such period and, subject to paragraph (d) of this subsection, on such terms as the court concerned may fix and specify in the order,

(d) if a court makes an order under paragraph (c) of this subsection, it may require the judgment debtor to whom the order relates either, as the court thinks fit, to lodge in court an amount equal to the amount of all moneys due under the judgment, order or decree (or such lesser amount as the court may direct) or give such security as the court may determine for the payment to the judgment creditor of all such moneys, together with, in either case, such further sum or security for the costs of the appeal as the court shall consider just,

(e) the judgment debtor shall be deemed to be unable to meet his obligations to creditors, and—

(i) if the judgment debtor is a company, the judgment debtor shall be deemed, for the purpose of the law relating to companies, to be unable to pay its debts,

(ii) if the judgment debtor is an individual, he shall be deemed, for the purpose of the law relating to bankruptcy, to have committed an act of bankruptcy,

(iii) if the judgment debtor is a partnership, each of the partners shall be deemed, for the purpose of the law relating to bankruptcy, to have committed an act of bankruptcy,

(f) an order under paragraph (c) of this subsection may be revoked or varied by the court that made it or before which an appeal in relation to it is brought.

(2) An act of bankruptcy which is deemed by virtue of subsection (1) of this section to have been committed by a judgment debtor may be availed of within the period of six months from the date of such act by any creditor with a sufficient debt for the purpose of having the judgment debtor adjudicated bankrupt.