Bankruptcy Act 1883 (46 & 47 Vict., C.52)

(Priority of debts) 　40. (1.) In the distribution of the property of a bankrupt there shall be paid in priority to all other debts: (a.) All parochial or other local debts due from the bankrupt at the date of the receiving order, and having become due and payable within twelve months next before such time, and all assessed taxes, land tax, property or income tax, assessed on him up to the fifth day of April next before the date of the receiving order, and not exceeding in the whole one year's assessment; (b.) All wages or salary of any clerk or servant in respect of services rendered to the bankrupt during four months before the date of the receiving order, not exceeding fifty pounds; and (c.) All wages of any labourer or workman, not exceeding fifty pounds, whether payable for time or piece work, in respect of services rendered to the bankrupt during four months before the date of the receiving order, (2.) The foregoing debts shall rank equally between themselves, and shall be paid in full, unless the property of the bankrupt is insufficient to meet them, in which case they shall abate in equal proportions between themselves. (3.) In the case of partners the joint estate shall be applicable in the first instance in payment of their joint debts, and the separate estate of each partner shall be applicable in the first instance in payment of his separate debts. If there is a surplus of the separate estates it shall be dealt with as part of the joint estate. If there is a surplus of the joint estate it shall be dealt with as part of the respective separate estates in proportion to the right and interest of each partner in the joint estate. (4.) Subject to the provisions of this Act all debts proved in the bankruptcy shall be paid pari passu. (5.) If there is any surplus after payment of the foregoing debts, it shall be applied in payment of interest from the date of the receiving order at the rate of four pounds per centum per annum on all debts proved in the bankruptcy. (6.) Nothing in this section shall alter the effect of section five of the Act twenty-eight and twenty-nine Victoria chapter eighty-six "to amend the Law of Partnership," or shall prejudice the provisions of the Friendly Societies Act, 1875.