New Clause. — (Liability of trustees, etc., in respect of instalments of con- tribution.)

Orders of the Day — War Damage Bill. – in the House of Commons on 12th February 1941.

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(1) Where, in proceedings taken against any person for the enforcement of a personal liability as, or as a mortgagee of, a direct or indirect contributor in respect of an instalment of contribution becoming due in any year, the said person proves that the proprietary interest or, as the case may be, the mortgage of such an interest by virtue of which he incurred the liability was at the relevant date in that year vested in him as a trustee, and that his rights of indemnification out of the trust estate are, otherwise than by negligence or default on his part, insufficient to provide for his reimbursement in respect of the liability, the court may give such directions for the limitation or release of the liability as the court thinks just and equitable.
In this Sub-section any reference to a trustee includes a reference to a personal representative, and any reference to the trust estate shall be construed accordingly.
(2) Where at the relevant date in any year a proprietary interest, or a mortgage of such an interest, in a contributory property is vested in any person as the trustee of the property of a bankrupt, any sum paid by that person in discharge of his liability as, or as a mortgagee of, a direct or indirect contributor in respect of the instalment of contribution becoming due in that year in respect of the contributory property shall be treated as part of the costs of administration of the property of the bankrupt.—[The Attorney-General.]

Brought up, and read the First time.

Photo of Mr Donald Somervell Mr Donald Somervell , Crewe

I beg to move, "That the Clause be read a Second time."

Under the Bill liability may arise in a person in his capacity as a trustee. It was not clear that, under the Bill as drafted, that liability was restricted, as it should be, to the amount of the trust property which he holds as trustee. The first Sub-section of this Clause applies to that. The second Sub-section deals with the special case of a trustee in bankruptcy, and provides that any contribution for which a bankrupt's estate may be liable shall fall on the estate.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.

Photo of Lieut-General Edward Fitzroy Lieut-General Edward Fitzroy , Daventry

The new Clause which stands on the Paper in the names of the hon. Members for East Stirling (Mr. Woodburn) and Hernsworth (Mr. G. Griffiths) raises a matter which is an old friend but is not usually dealt with by a Clause in a Bill. It is a matter which was originally the subject of a Resolution by the House. If the hon. Member wishes to move it, for purposes of explanation, I have no objection.