Section 40: Preferential debts
consolidated text (as at 2000). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
40. Preferential debts
(1) All preferential debts due by the bankrupt shall, in the first instance,
be presented to the Official Receiver and costs concerning them will only be
allowed out of the bankrupt’s estate, in case the Official Receiver has refused to admit the same.
(2) On receiving notice of any such claim, the Official Receiver shall verify the claim, and if satisfied that it is well founded, shall move the Court for
an order authorising payment of the claim.
(3) Where any claim has been wrongly admitted by the Official Receiver,
a trustee may apply to the Court to set it aside.