Pensions, etc., cease on bankruptcy

(1) Where any person to whom a pension or other allowance has been granted under this Act is adjudicated bankrupt or is declared insolvent by the judgment of any competent court, then such pension or allowance shall forthwith cease. (2) Where an officer is adjudicated bankrupt or declared insolvent by the judgment of any competent court either, (a) after retirement in circumstances in which he is eligible for pension, gratuity or other allowance, under this Act but before the pension, gratuity or other allowance is granted; or (b) before such retirement and he has not obtained his discharge from bankruptcy or insolvency at the date of retirement, then, in the former case, any pension or other allowance eventually granted to him shall cease as from the date of adjudication or declaration (as the case may be), and, in the latter case, the pension or other allowance may be granted but shall cease forthwith and not become payable and in either case the gratuity may be granted but shall not be paid to him. (3) Where a pension or other allowance ceases or where any gratuity is not paid by reason of this section, it shall be lawful for the Governor-General, as he thinks fit, from time to time during the remainder of such person’s life or during such shorter period or periods, either continuous or discontinuous to direct all or any part of the moneys to which such person would have been entitled by way of pension, gratuity or other allowance had he not become bankrupt or insolvent to be paid to or applied for the maintenance or benefit of all or any, to the exclusion of the other or others, of the following, that is to say, such person and his wife, child or children, or such other dependents as the Governor-General may determine in such proportion and manner as he thinks proper and such moneys shall be paid or applied accordingly. (4) Moneys applied for the discharge of the debts of the person whose pension or other allowance has ceased or whose gratuity has not been paid by reason of this section shall, for the purposes of this section, be regarded as applied for his benefit. (5) Where a person whose pension or other allowance has ceased or whose gratuity has not been paid by reason of this section obtains his discharge from bankruptcy or insolvency, it shall be lawful for the Governor-General to direct that the pension or other allowance shall be restored and the gratuity or so much thereof (if any) as remains after deducting any payments made under subsection (3) of this section, paid as from the date of such discharge or any later date, and the pension or other allowance shall be restored and the gratuity or such remainder thereof (if any) paid accordingly. (6) For the purposes of this section the word “child” shall include an illegitimate child, a stepchild and an adopted child, adopted in a manner prescribed by law, but shall not include a child who has attained the age of eighteen years or, in the case of a female child, has married.