Section 50

Where any property of a debtor is taken in execution under a writ of seizure and sale and before the sale or realisation thereof, or the delivery to the execution creditor of any moneys seized or paid in order to avoid sale, notice is served on the Sheriff that a receiving order has been made against the debtor, the Sheriff shall deliver the property or the possession thereof and any such moneys to the Official Assignee, but the costs of and incidental to the execution shall be a first charge on the property or moneys, and the Official Assignee may sell the property or an adequate part thereof for the purpose of satisfying the charge.

Where a writ of seizure and sale has been issued in respect of a judgment for a sum exceeding $500 the Sheriff shall hold all moneys coming to his hands under the writ of seizure and sale for 14 days from the receipt thereof, and if within that time notice is served on him of a bankruptcy petition having been presented against or by the debtor and a receiving order is made against the debtor thereon or on any other petition of which the Sheriff has notice, the Sheriff shall deduct the costs of and incidental to the execution and pay the balance to the Official Assignee, who shall be entitled to retain the same as against the execution creditor.

An execution levied by seizure and sale on property of a debtor is not invalid by reason of the seizure being an act of bankruptcy, and a person who purchases the property in good faith under a sale by the Sheriff or by the bailiff of a District Court shall in all cases acquire a good title to it against the Official Assignee.

Where the act of bankruptcy upon which a bankruptcy petition is founded is the seizure of any property under a judgment, and the debtor has had a receiving order made against him on the petition, then the costs of the judgment creditor incurred by him in obtaining the judgment during the 30 days next preceding the taking of the property in execution shall be payable out of the assets of the bankrupt in the same manner and in the same order of priority as the costs of the petitioning creditor.