Central Bank Act, 1971

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Provisions in relation to bankruptcy and winding up.

30.—Where—

(a) an individual is the holder of a licence and is adjudicated bankrupt,

(b) a partnership is the holder of a licence and each of the partners thereof is adjudicated bankrupt,

(c) a partnership is the holder of a licence and the partnership is dissolved by the bankruptcy of any partner and the licence is revoked, or

(d) a company is the holder of a licence, is insolvent and is being wound up,

the following provisions shall have effect:

(i) in the case of the individual or partnership, the amount deposited by him or it with the Bank under section 7 of this Act together with any interest accrued thereon shall vest in the Official Assignee,

(ii) in the case of the company—

(I) in case the Official Assignee is the liquidator of the company, the amount deposited by it under the said section 7 together with any interest accrued thereon shall vest in the Official Assignee, and

(II) in any other case, the Court may, on the application of the liquidator of the company, order that the amount deposited by it with the Bank under the said section 7 together with any interest accrued thereon shall vest in the liquidator by his official name and thereupon the said amount and interest shall vest accordingly,

(ii) the Official Assignee or the liquidator shall pay from the amount vested in him as aforesaid to the persons maintaining deposits with the holder (including deposits on current accounts) the amount of each deposit (including interest credited to such persons) remaining due by the holder to such persons, account having been taken of any sums due by such persons to the holder in respect of the business to which the licence relates, or, if the amount vested in him as aforesaid is insufficient for such purpose, the Official Assignee or the liquidator shall distribute it to such persons in proportion to the amount of each such deposit remaining due as aforesaid, and, before making such payments or distribution, the Official Assignee or the liquidator shall pay or retain out of the amount vested in him as aforesaid—

(I) any costs, fees and expenses incurred by or payable to the Official Assignee or the liquidator (in case the Official Assignee is the liquidator) in relation to the amount aforesaid and to the payments or distribution to such persons, and

(II) such costs and expenses, if any, of the liquidator (in case the Official Assignee is not the liquidator) in relation to the amount aforesaid and to the payments or distribution to such persons as the Court may allow,

(iv) any balance of the amount aforesaid vested in the Official Assignee or the liquidator shall be used—

(I) first, towards satisfying any claim in relation to interest payable by the holder by agreement on amounts deposited with the holder, and

(II) secondly, towards paying interest at such rate as the Court may consider reasonable (but not exceeding the average rate of interest payable by agreement by the holder on amounts deposited with the holder) on amounts deposited with such holder in respect of which there is no agreement providing for the payment of interest by the holder,

and any amount remaining after such use of the said balance shall be paid to the general estate of the holder,

(v) if the total amount vested in the Official Assignee or the liquidator as aforesaid is not sufficient to discharge the claims of the persons among whom he is required by paragraph (iii) of this section to distribute it, those persons may claim as ordinary creditors of the holder in respect of the unsatisfied portion of their claims.