Axiom Advocates News

Applications for reappointment of trustees in sequestration – section 63(1)(b) of the Bankruptcy (Scotland) Act 1985

Back to News Listing

Applications for reappointment of trustees in sequestration – section 63(1)(b) of the Bankruptcy (Scotland) Act 1985


25 November 2016

The Sheriff Appeal Court yesterday allowed an appeal by the Accountant in Bankruptcy against a decision of Sheriff Garden, in Aberdeen, in which the Sheriff had held that former trustees in sequestration were not persons “having an interest” for the purposes of section 63(1)(b) of the Bankruptcy (Scotland) Act 1985 and that only creditors could make such applications.

Applications for such reappointment have become increasingly numerous with the advent of great numbers of claims for compensation in respect of the mis-selling of “payment protection insurance”. Such claims regularly come to light after discharge of both the debtor and the trustee.

The judgment of the Sheriff Appeal Court is to be issued in writing at a later date but the effect of the judgment will be of considerable interest to insolvency practitioners, given the regularity with which banks seek to make payment to them, notwithstanding their discharge from office, once the compensation claim comes to light.

David Thomson, of Axiom Advocates, appeared for the Accountant in Bankruptcy.