Scottish bankruptcy definition PA 1890 s. 47
Bankruptcy of firm/individual in Scotland = sequestration; also decree of cessio bonorum for individuals. Scottish rules unchanged.
In the application of this Act to Scotland the bankruptcy of a firm or of an individual shall mean sequestration under the Bankruptcy (Scotland) Acts, and also in the case of an individual the issue against him of a decree of cessio bonorum. Nothing in this Act shall alter the rules of the law of Scotland relating to the bankruptcy of a firm or of the individual partners thereof.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section adapts the Partnership Act 1890 for Scotland. It says that when the Act talks about bankruptcy, for a Scottish firm or individual that means sequestration under the Bankruptcy (Scotland) Acts. For an individual it also includes a decree of cessio bonorum.
The second sentence makes clear that this section does not change any Scottish rules about bankruptcy of firms or individual partners. Those rules stay as they are under Scots law.
When it applies
- A partnership registered in Edinburgh becomes insolvent and its estate is sequestrated under the Bankruptcy (Scotland) Acts.
- An individual partner in Glasgow has a decree of cessio bonorum issued against them by a Scottish court.
- A Scottish firm is sequestrated and a creditor tries to apply English bankruptcy rules under the Partnership Act.
- A partner in a Scottish firm is personally sequestrated, and the question arises whether that triggers provisions about dissolution under the Act.
What this section does not say
- It does not set out the procedure for sequestration or cessio bonorum – that is in the Bankruptcy (Scotland) Acts.
- It does not define bankruptcy for firms or individuals in England and Wales.
- It does not alter the Scottish law of partnership bankruptcy even if the Act would have said something different.
- It does not apply to companies registered under the Companies Acts – only to firms (partnerships) and individuals.
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This page reproduces the text of PA 1890 s. 47 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.