Section 148

In this section, unless the context otherwise requires, “creditor” means one or more creditors qualified to make a bankruptcy application under this Act.

The Official Assignee or any creditor of a deceased debtor whose debt would have been sufficient to support a bankruptcy application against the debtor had he been alive, may make to the court an application for an order for the administration of the estate of the deceased debtor according to this Act.

Every application under this section shall be in the same form as a creditor’s bankruptcy application under section 57, with such variations as the case may require, except that in the case of an application by the Official Assignee, it shall not be necessary to allege or prove that any debt is owing to the applicant.

Upon the prescribed notice being given to the legal representative, if any, of the deceased debtor, the court may, in the prescribed manner, upon proof of the applicant’s debt, unless the court is satisfied that there is a reasonable probability that the estate will be sufficient for the payment of the debts owing by the deceased debtor, make an order for the administration in bankruptcy of the deceased debtor’s estate, or may, upon cause being shown, dismiss the application with or without costs.

An administration order under this section shall not be made until the expiration of 2 months from the date of the grant of probate or letters of administration, unless with the concurrence of the legal representative of the deceased debtor.

An application for administration under this section shall not be made to the court after proceedings have been commenced for the administration of the deceased debtor’s estate except that the court may, in that case, on the application of any creditor and on proof that the estate is insufficient to pay its debts in the prescribed manner, make an order for the administration of the estate of the deceased debtor in bankruptcy, and the like consequences shall ensue as under an administration order made on the application of a creditor.

Upon an administration order being made under this section, the property of the debtor shall vest in the Official Assignee as trustee thereof without any further conveyance, transfer or assignment, and he shall forthwith proceed to realise and distribute the same in accordance with this Act.

Sections 83 and 84 so far as they relate to persons other than the debtor, and, with the modifications under this section, all the provisions of Part VII shall, so far as the same are applicable, apply to the case of an administration order under this section.

Sections 98, 105 and 106 shall apply in the case of an administration order under this section as if the administration order were a bankruptcy order.

In the administration of the property of the deceased debtor under an administration order, the Official Assignee shall have regard to any claims by the legal representative of the deceased debtor to payment of the proper funeral and testamentary expenses incurred by him in and about the debtor’s estate and such claims shall be deemed to be preferential debts under the administration order and shall be payable in full out of the debtor’s estate in priority to all other debts.

If on the administration of a deceased debtor’s estate any surplus remains in the hands of the Official Assignee after payment in full of all the debts due from the debtor, together with the costs of the administration and interest as provided by this Act in the case of a bankruptcy, the surplus shall, subject to section 122(2), be paid over to the legal representative of the deceased debtor’s estate or dealt with in such other manner as is prescribed.

Upon notice being given to the legal representative of a deceased debtor of the making by a creditor of an application under this section, and in the event of an administration order being made thereon, no payment or transfer of property made thereafter by the legal representative shall operate as a discharge to him as between himself and the Official Assignee.

Subject to this section, nothing in this section shall invalidate any payment made or act or thing done in good faith by the legal representative before the date of the administration order.