Auctioneers and House Agents Act, 1967

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Provisions relating to client accounts in event of bankruptcy.

8.—(1) Where—

(a) an auctioneer or house agent is adjudicated bankrupt, files a petition for arrangement, executes a deed of arrangement (within the meaning of section 4 of the Deeds of Arrangement Act, 1887 ) or dies insolvent, or

(b) a company licensed as an auctioneer or house agent is insolvent and being wound up,

the Official Assignee (in a case where section 7 applies), the liquidator (in the case of an insolvent company) or any interested person (in any other case) may apply to the High Court by motion for an order under subsection (2).

(2) (a) The High Court, on application made to it under subsection (1), may make an order directing that—

(i) the costs, fees and expenses incurred by or payable to the Official Assignee in connection with the client account or (as may be appropriate) such costs and expenses in connection with the client account of the liquidator or other interested person as the court may allow, and

(ii) the amount of any deficiency in a client account,

shall, to such extent as the money available allows, be paid or made good by the Accountant either out of the deposit maintained in the High Court under the Principal Act, or, in a case where the deposit consists of a guarantee bond, from money made available by the assurance company concerned on foot of the bond; and, for the purpose of enabling the Accountant to comply with such direction, the order or a further order may direct, in a case where the deposit consists of securities, the sale by the Accountant of such securities (or of as much thereof as may be necessary) and, in a case where the deposit consists of a guarantee bond and notice of the application has been served on the assurance company concerned, the payment by the assurance company of the amount of the bond (or of as much thereof as may be necessary): provided, however, that such order shall have effect subject to the provisions of any order previously made in relation to the deposit under section 11 (3) (b) unless the High Court directs otherwise.

(b) Where there is a deficiency in more than one client account, the amount available from the deposit towards making good the deficiencies may be paid over under paragraph (a) without apportionment between the client accounts.

(c) The High Court, when making an order under this subsection directing the sale of securities, may in the same order direct the sale of all such securities maintained as a deposit in the High Court by the auctioneer or house agent and the transfer to the Official Assignee, for the benefit of the ordinary creditors, of any surplus that may remain after the payment of any costs, fees and expenses and the making good of any deficiency in a client account.

(d) The provisions of section 15 (3) of the Principal Act shall apply to an order under this subsection.

(3) Where—

(a) (i) an auctioneer or house agent is adjudicated bankrupt, files a petition for arrangement, executes a deed of arrangement (within the meaning of section 4 of the Deeds of Arrangement Act, 1887 ) or dies insolvent, or

(ii) a company licensed as an auctioneer or house agent is insolvent and being wound up,

and

(b) there is, notwithstanding the addition of the sum paid over under subsection (2), a deficiency in the client account or accounts,

then, notwithstanding any rule of law to the contrary, the sum to the credit of the said client account or, where the auctioneer or house agent has kept two or more client accounts, the total of the sums to the credit of those accounts, shall (after the addition thereto of the sum paid over under subsection (2)) be divisible proportionately amongst the clients of the auctioneer or house agent according to the respective sums received by the auctioneer or house agent in the course of his business on behalf of his clients and remaining due by him to them.

(4) A person, other than the Official Assignee, who is entitled and proposes to apply to the High Court under subsection (1) may before such application and by motion ex parte apply to the Courtfor an order prohibiting the payment of any money out of the deposit or, in a case where the deposit consists of a guarantee bond, from money made available by the assurance company concerned on foot of the bond, pending the hearing of the application under subsection (1), and the Court may, if it thinks fit, order accordingly.

(5) For the purposes of this section, in a case where a refund of a deposit is due the amount due shall be deemed to have been received by the auctioneer or house agent in the course of his business on behalf of the person who made the deposit: provided, however that this section shall not so operate as to deprive such a person of any right to require the contract of sale or letting to be duly completed.