Clause 56

Where all persons submitting claims pursuant to section 55 of this Act have been fully compensated in accordance with the provisions of this Part for the loss suffered by them as a result of a defalcation committed by a partner in a member firm any other partner in that firm who has made payment to any person in compensation for loss suffered by him from the defalcation shall be subrogated to the extent of such payment to all the rights and remedies of that person against the fidelity fund concerned if the committee is of opinion having regard to all the circumstances that he was in no way a party to the defalcation and that he acted honestly and reasonably in the matter.

If any partner in a member firm feels aggrieved by the opinion of a committee under subsection (1) of this section he may, within twenty-eight days after receipt of notice thereof, appeal to the Court in accordance with the Rules of Court.

The appellant shall on the same day as he lodges notice of appeal with the Court lodge a copy thereof with the secretary of the committee against whose opinion he is appealing.

The return day for any such appeal shall be such day, being not more than twenty-eight days after the lodging of the notice of appeal, as is set out in the said notice.

Every appeal shall be in the nature of a re-hearing and may be heard in Court or in chambers.

The Court shall inquire into and decide upon the appeal and for that purpose may do all such matters and things relating thereto and in the same manner and to the same extent as it is empowered to do in the exercise of its ordinary jurisdiction and if the Court is of opinion having regard to all the circumstances that the appellant was in no way a party to the defalcation and that he acted honestly and reasonably in the matter it may direct that the appellant shall to the extent of any payment made by him be subrogated to all the rights and remedies in relation to the fidelity fund concerned of the person to whom he has made payment in compensation as aforesaid.