Clause 26

by deleting subsection (1) and substituting the following subsection:“(1) Subject to this section and section 90, the following are provable in bankruptcy:

any debt or liability to which a bankrupt —

is subject at the date of the bankruptcy order; or

may become subject before the bankrupt’s discharge by reason of any obligation incurred before the date of the bankruptcy order;

any interest payable by the bankrupt on any debt or liability referred to in paragraph (a) for any period before the date of the bankruptcy order.”; and

by deleting subsection (3) and substituting the following subsections:“(3) Demands in the nature of unliquidated damages arising otherwise than by reason of a contract, promise, breach of trust, tort or bailment, or an obligation to make restitution, are not provable in bankruptcy.(3A) For the purposes of subsection (1), in determining whether any liability in tort is provable in bankruptcy, the bankrupt is deemed to be subject to that liability by reason of an obligation incurred at the time when the cause of action for that tort accrued.”.