Bankruptcy Act 1898 (NSW)

Act No. 25, 1898.

DIVISION 2.—Sections 5-P2—Sequestration order. DIVISION

An Act to consolidate the Law relating' to

Bankruptcy. [27th July, 1898.]

BE it enacted by the Queen's Most Excellent Majesty, by and with	Assembly of New South Wales in Parliament assembled, and by the the advice and consent of the Legislative Council and Legislative authority of the same, as follows :—•
1. This Act may be cited as the " Bankruptcy Act, 1898," and s is divided into parts and divisions as follows :— E

PART I.—PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE OF BANKRUPT.

DIVISION 1.—Section 4—Acts of bankruptcy.

DIVISION 3.—Sections 13-18—Proceedings consequent on order.

DIVISION 4.—Sections 19-20—Composition or scheme of arrange­

ment.

DIVISION 5.—Sections 21-26—Creditors' trustees and committee of

inspection.

DIVISION 6.—Sections 27-33—Control over person and property of

bankrupt.

DIVISION 7.—Sections 34-38—Release of estate, and annulment of

sequestration order.

DIVISION 8.—Sections 39-44—Bankrupt's certificate.

P A E T II.—ADMINISTRATION OF PROPERTY.

DIVISION 1.—Sections 45-47—Proof of debts.
DIVISION 2.—Sections 48-50—Preferential debts.

DIVISION 3.—Sections 51-52—Property available for payment of

debts.

DIVISION 4.—Sections 53-58—Effect of bankruptcy on antecedent

transactions.

DIVISION 5.—Sections 59-68—Realisation of property.

DIVISION 6.—Sections 69-81—Distribution of estate.

P A R T I I I .—CREDITORS' TRUSTEES AND OFFICIAL ASSIGNEES.

DIVISION 1.—Sections 82-86—Remuneration of trustees or assignees.
DIVISION 2.—Section 87—Officio1 name.
DIVISION 3.—Sections 88-94—Appointment and removal.

DIVISION 4.—Sections 95-106—Control over assignees and trustees.

P A R T IV.—PROCEDURE.

Sections 107-113.

P A R T V.—APPLICATION OF ACT.

Sections 114-125.

P A R T VI.—INDICTABLE OFFENCES.

Sections 126-132.

P A R T VII .—JURISDICTION.

DIVISION 1.—Sections 133-138—Bankruptcy Division of Supreme

Court.

DIVISION 2.—Sections 139-145—Officers of the Court.

P A R T VIII .—MISCELLANEOUS PROVISIONS.

Sections 146-156.

2. (1) The several enactments mentioned in the First Schedule to this Act are to the extent therein expressed hereby repealed.

(2) All persons appointed by virtue of any Act hereby repealed, and holding office at the passing of this Act, shall be deemed to have been appointed hereunder.

(3) All rules of Court made under the authority of any Act hereby repealed, and being in force at the passing of this Act, shall be deemed to have been made under the authority of this Act.

3. (1) In this Act, unless the context otherwise requires :—

" The Judge " means the Judge having jurisdiction in bankruptcy under this Act, or any Judge acting as such :

" Available Act of bankruptcy" means any Act of bankruptcy available for a bankruptcy petition at the date of the presen­ tation of the petition on which the sequestration order is made : " Debt provable in bankruptcy " or " provable debt " includes any

debt or liability by this Act made provable in bankruptcy :

" Goods " includes all chattels personal:

" The Court " means the Supreme Court in its bankruptcy juris­

diction :

" Local Bank " means any bank in or in the neighbourhood of the district in which the proceedings are taken :

" Ordinary resolution " and " resolution " means a resolution decided by a majority in value of the creditors present, personally or by proxy, at a meeting of the creditors and voting on the resolution :

" Proper ty" includes money, goods, things in action, land, and every description of property, whether real or personal, and whether situate in New South Wales or elsewhere ; also, obligations, easements, and every description of estate, interest, and profit, present or future, vested or contingent, arising out of or incident to property as above defined :

" Secured creditor " means a person holding a mortgage, charge, or lien on the property of the debtor, or any part thereof :

" Sheriff " includes any officer charged with the execution of a writ or other process :

" Special resolution " means a resolution decided by a majority in number and three-fourths in value of the creditors present, personally or by proxy, at a meeting of creditors and voting on the resolution :

The term " trustee " shall in all cases where not inconsistent with the context include the official assignee when he fills the office of trustee.

(2) The Schedules to this Act shall be construed and have

effect as part of this Act.

PART

PART I.

PROCEEDINGS FROM ACT OF BANKRUPTCY TO BANKRUPT'S

EXAMINATION.

DIVISION 1.—Acts of Bankruptcy.

4. ( 1 ) A debtor commits an act of bankruptcy in each of t h e

following cases :—

(a)	If in New South Wales or elsewhere he makes a conveyance or
assignment of his property to a trustee for the benefit of his creditors generally :
(b)	If in New South Wales or elsewhere he makes a conveyance,

gift, delivery, assignment, or transfer of his property, or of any part thereof, with intent to defeat or delay his creditors, or any of them :

(c)	If in New South Wales or elsewhere he makes any conveyance.
or transfer of his property or any part thereof, or creates any charge thereon which would under this or any other Act be void as a fraudulent preference if a sequestration order were made against him :
(d)	If with intent to defeat or delay his creditors he does any of the

following things, namely, departs out of New South Wales, or being out of New South Wales remains out of New South Wales, or departs from his dwelling-house, or otherwise absents himself, or begins to keep house :

(e)	If execution issued against him has been levied by seizure and
sale of his goods under process in an action in any Court, or in any civil proceeding in the Supreme Court, and if he has not within five days of such sale, satisfied the debt by payment :
(f)	If he files in the Court a declaration of his inability to pay his
debts or presents a bankruptcy petition against himself:
(g)	If a creditor has obtained a final judgment against him for any

amount, and (execution thereon not having stayed) has served on him in New South Wales, or, by leave of the Court, elsewhere, a bankruptcy notice under this Act, requiring him to pay the judgment debt in accordance with the terms of the judgment, or to secure or compound for it to the satisfaction of the creditor or the Court, and he does not, within the time limited in that behalf by the order giving leave to effect the service, either comply with the requirements of the notice, or satisfy the Court that he has a counter-claim, set-off, or cross demand which equals or exceeds the amount of the judgment debt, and which he cou'd not set up in the action in which the judgment was obtained :

(A)

(h) If the debtor gives notice to any of his creditors that he has suspended, or that he is about to suspend, payment of his debts :

(i)   If he has been adjudged bankrupt or insolvent by a British Court of competent jurisdiction in or out of New South Wales, and has not received a certificate of discharge or other corres­ ponding release—of any of which facts a copy of the order or orders or certificate or release made or given by such Court certified under its seal shall be sufficient evidence :

(j) If he has not presented a bankruptcy petition against himself or filed in the Court a declaration of his inability to pay his debt within forty-eight hours after having at a convened meeting of his creditors admitted that he is unable to pay his debts, and been thereupon required by a majority in number of his creditors present to present such petition or file such declaration.

(2) A bankruptcy notice under this Act shall be in the form prescribed in the Fifth Schedule hereto, and shall state the consequences of non-compliance therewith, and shall be served in the manner prescribed by the rules of the Court ; it shall be under the hand of the Registrar, and may be granted upon the application of the creditor claiming to be entitled thereto.

(3) Upon the debtor satisfying the Court that such notice ought not to have issued, the Court may order the payment to him by the creditor applying for such notice of all the costs occasioned by the issue thereof, and if satisfied that the notice was issued maliciously and without reasonable and probable cause may at the request of the debtor assess the damages occasioned thereby.

(4) Upon security being given by the debtor for payment of the debt and the cost of establishing it, the Court may stay all proceedings on the notice, and may stay execution on the judgment in respect of which such notice was issued, for such a time, in either case, as it thinks fit.

(5) Upon the affidavit of any creditor who would be entitled

to present a bankruptcy petition that a debtor, being a trader, has committed an act of bankruptcy and is diminishing his assets to the prejudice of his creditors, whether voluntarily or for consideration, by conveyance, gift, delivery, assignment, pledge, mortgage, transfer, or execution upon a collusive judgment, the Court may grant an injunction restraining such debtor and all other persons from disposing of or dealing with such assets or any part thereof until the hearing of the bankruptcy petition against such debtor :

Provided that before such injunction be granted the creditor applying shall give security to the satisfaction of the Registrar to present a bankruptcy petition forthwith, and to be responsible for all damages which may be occasioned by issuing such injunction.

(6)

(6) Any person who is for the time being entitled to enforce

a final judgment shall be deemed a creditor who has obtained a final

judgment within the meaning of this section.

(7) Any final judgment obtained against a married woman shall

be deemed to be a final judgment within the meaning of subsection (1) (g)

of this section, and a bankruptcy notice in the form prescribed by the
Fifth Schedule hereto may issue and be served upon her in respect thereof as if judgment had been obtained against her as a femme sole, and the fact

that no execution can issue at law on such judgment shall not prevent

the non-compliance with such notice being deemed an act of bankruptcy

under the said subsection.

(8) Nothing herein contained shall be construed to render a

married woman liable to be made bankrupt except in respect of her

separate estate and upon evidence that she is possessed of separate
estate, or to alter or repeal anything contained in the Married Woman's

Property Act, 1893, or any Act consolidating or amending the same.

(9) Any decree or order which is in its terms or effect final

shall be deemed to be final judgment within the meaning of this section.

(10) Every deed of conveyance or assignment for the benefit
of creditors may be registered by filing in the office of the Registrar-

General an examined copy signed by one or more of the parties to the original deed of assignment and certified by the oath of some credible person taken before a Judge or before the Registrar-General or his deputy,

or before any commissioner for affidavits ; and if so registered within one month from the execution of the same by the assignor shall be within
the protection of this Act.

(11) The Registrar-General shall upon the said copy being so

filed as aforesaid register the same accordingly.

D I V I S I O N 2.—Sequestration order.

5. (1) Subject to the conditions hereinafter specified, if a debtor commits an act of bankruptcy the Court may, on a bankruptcy petition

being presented either by a creditor or by the debtor, make an order,
in this Act called a sequestration order.

(2) When a sequestration order has been made, the debtor

thereby becomes a bankrupt, and continues a bankrupt until a certificate

of discharge has been issued to him, or the order for sequestration be

discharged or annulled in manner hereinafter provided.

6. A creditor shall not be entitled to present a bankruptcy petition against a debtor unless—

(a) The debt owing by the debtor to the petitioning creditor, or,

if two or more creditors join in the petition, the aggregate

amount of debts owing to the several petitioning creditors,
amounts to fifty pounds ; and

(b)

(b)	The debt is a liquidated sum, payable either immediately or at some certain future time, whether due at law or in equity ; and
(c)	The act of bankruptcy on which the petition is grounded has occurred within six months before the presentation of the petition :

Provided that, if the alleged act of bankruptcy is one of those mentioned in subsection (i) of section four, the petition may be presented within three months after the alleged act came to the knowledge of the petitioning creditor ; and unless

(d) The debtor is domiciled in New South Wales, or within a year before the date of presentation of the petition has ordinarily resided or had a dwelling house or place of business in New South Wales :

Provided that when the alleged act of bankruptcy is that set forth in subsection (a) of section four, and the deed of conveyance or assignment has been registered within one month from the execution thereof by the assignor in accordance with the provisions of subsection ten of the said fourth section, no sequestration order shall be made upon the petition of a creditor or creditors, if such creditor or creditors do not represent at least one-fifth in value of all the creditors.

7. If the petitioning creditor is a secured creditor he must in his petition either state that he is willing to give up his security for the benefit of the creditors in the event of a sequestration order being made, or give an estimate of the value of his security. In the latter case, he may be admitted as a petitioning creditor to the extent of the balance of the debt due to him, after deducting the value so estimated in the same manner as if he were an unsecured creditor.

8. ( 1 ) A creditor's petition shall be verified by affidavit of the creditor, or of some person on his behalf, having knowledge of the facts, and served in the prescribed manner.

(2) At the hearing the Court shall require proof of the debt

of the petitioning creditor, of the service of the petition, and of the act of bankruptcy, or, if more than one act of bankruptcy is alleged in the petition, of some one of the alleged acts of bankruptcy, and, if satisfied with the proof, may make a sequestration order in pursuance of the petition.

(3) If the debtor has made a conveyance or assignment of

his property to a trustee for the benefit of his creditors generally, and the same has been registered within one month from the execution thereof by the assignor in accordance with the provisions of subsection ten of section four of this Act, the trustee under such assignment shall also receive the prescribed notice of the hearing, and may appear and show cause for the dismissal of the petition, and if it appears to the

Court

Court t h a t it will be for the advantage of the creditors t h a t the estate should be administered under the said deed such petit ion may be dismissed.

(4) If the Court is not satisfied with the proof of the petitioning creditor 's debt, or of the act of bankruptcy, or of the service of the prescribed notice of the petit ion, or is satisfied by the debtor t h a t he is able to pay his debts, or t h a t for other sufficient cause no order ought to be made, the Court may dismiss the petition.

(5) If it appears to the Court upon the hearing of the peti t ion t h a t the petition was unfounded and vexatious or malicious, he may allow the respondent then, or a t some other fixed t ime, t o prove any damage sustained thereby, and may award such sum in respect thereof not exceeding two hundred pounds as the Court deems fit:

Provided tha t nothing herein shall affect the right of the respondent to sue the petitioner for damages beyond the amoun t awarded by the Court.

(6) When the act of bankruptcy relied on is non-compliance with a bankruptcy notice to pay, secure, or compound for a judgment debt , the Court may, if it th inks fit, s tay or dismiss the petit ion on the ground t h a t an appeal from the judgment or a motion for a new trial is pending.

(7) Where the debtor appears on the petit ion, and denies

t h a t he is indebted to the petitioner or t h a t he is indebted to such an amount t h a t would justify the petitioner in representing a petition against him, the Court, on such security (if any) being given as the Court may require for payment to the petitioner of any debt which may be established against the debtor in due course of law, and of the cost of establishing the debt, may instead of dismissing the petit ion s tay all proceedings on the petit ion for such t ime as may be required for t r ial of the question relating to the debt.

(8) Where proceedings are stayed, the Court may, if by reason

thinks just , make a sequestration order on the petit ion of some other	of the delay caused by the s tay of proceedings or for any other cause it
creditor, and shall thereupon dismiss, on such terms as it thinks just , the petit ion in which proceedings have been stayed as aforesaid.

(9) A creditor 's petition shall not, after presentment, be with­

drawn without the leave of the Court.

(10 ) Where a petition is wi thdrawn or discharged, or where

proceedings upon a petition are s tayed in consequence of the petit ioning creditor's default, or his collusion with the debtor, the Court, within six months after such wi thdrawal or discharge or s tay of proceedings, may , on the peti t ion of any other creditor or creditors, whose debt or debts existed a t t he da te of the service of the said petition, direct t h a t a sequestration order shall be made. ( 1 1 )

( 1 1 ) If any person against whom a sequestration order has

been made pays any money to any petitioning creditor or t o any one on his behalf, or gives to such creditor any security for his debt or part

thereof, such payment , gift, or security shall be a new act of bankruptcy,

and the person receiving such money, gift, or security shall deliver up such security and repay or deliver the money or gift or its full value to the assignee for the benefit of the creditors, and shall pay all the costs incurred by any other creditor in obtaining a sequestration order upon such act of bankruptcy.

9. ( 1 ) A debtor 's petition shall allege t h a t the debtor is unable to pay his debts , and upon the presentation thereof the Court shall make a sequestration order.

(2) A debtor 's peti t ion shall not, after presentment, be with­

drawn without leave of the Court.

10. ( 1 ) Upon the making of a sequestration order the property of the bankrup t shall vest in one of the official assignees to be named in such order, and be devisible among the creditors of the bankrup t in accordance with the provisions of this Act.

(2) Upon the making of an order for the sequestration of the estate of an undischarged bankrup t or insolvent, the proper ty of such bankrup t or insolvent possessed by him a t the da te of the second order of sequestration shall, if the official assignee or t rustee appointed under the prior order has not intervened, vest in the official assignee named in the subsequent order, and be divisible in the first instance among the creditors of the bankrupt in the subsequent bankruptcy.

(3) After a sequestration order has been made, except as

directed by this Act, no creditor to whom the debtor is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the debtor in respect of the debt, or shall commence or take any fresh step in any action or other legal proceedings unless with the leave of the Court and on such terms as

the Court may impose.

(4) This section shall not affect the power of any secured creditor to realise or otherwise deal with his security in the same manner as he would have been entitled to realise or deal with it if this section had not been passed.

(5) The Court may a t any t ime after the presentation of a bankruptcy petition, upon such conditions as it th inks fit, s tay any action, execution, or other legal process against the property or person of the debtor, and may discharge him out of custody, and any Court in which proceedings are pending against a debtor may, on proof t h a t a bankruptcy petit ion has been presented by or against the debtor, either s tay the proceedings or allow them to continue on such terms as it may

th ink fit.

(6)

(6) Where the Court makes an order staying any action or proceeding, or staying proceedings generally, the order may be served by sending a copy thereof, under the seal of the Court, by prepaid post letter, or by leave of the Court by telegram, to the address for service of the plaintiff or other par ty prosecuting such proceeding.

(7) All actions or proceedings at law or in equity commenced

by any person, against whom a sequestration order is afterwards made shall, upon such order being made, be stayed until the official assignee or t rustee make election to prosecute or discontinue the same, and such official assignee or t rustee shall be bound to make such election within four weeks after notice to t h a t effect is served upon him by any defendant or par ty in such action or proceedings, or otherwise shall be deemed to have abandoned the same :

Provided t h a t any bankrup t shall be permit ted to continue in his own name and for his own benefit any action or proceedings commenced by him previous to his bankrup tcy for any personal injury or wrong done to himself or to any of his family.

11 . The Registrar shall forthwith publish in the Gazette a notice

of every sequestration order, and also send a like notice to the Registrar- General, who shall make a note of the same in every index and registered instrument kept in his office for public inspection. The Registrar shall also send notice of every such order and notice of the issue of any bankruptcy notice to the sheriff, who shall forthwith register the same respectively in his office.
12. Where a creditor entitled to present a bankruptcy petit ion is absent from New South Wales, his agent, if authorised to recover his debts or effects, may present the petition and make the proof required in lieu of such creditor :

Provided t h a t the person whom it is sought to make bankrup t shall have, in addition, the same rights and remedies in every such case against such agent as he has against the person in whose name such proceeding is taken, and all notices, summonses, orders, and documents

served upon the creditor. may be served upon such agent, and shall have the same effect as if DIVISION 3.—Proceedings consequent on order.

13. (1) At any t ime after the making of a sequestration order, the official assignee of a bankrup t ' s estate may, on the application of any creditor, and if satisfied t ha t the na ture of the bankrup t ' s estate or business or the interests of the creditors generally, require the appoin tment of a special manager or receiver of the estate or business, or any p a r t

thereof, other t han the official assignee, appoint a manager or receiver
thereof accordingly to act until a t rustee is appointed, or so long as the

creditors may bv resolution require.

(2)

(2) Every such special manager or receiver shall, for all the purposes of obtaining and retaining possession of the proper ty or business of the bankrupt , be in the same position in all respects as a receiver and manager appointed by the Supreme Court in its equitable jurisdiction, and the Court may enforce such acquisition or retention accordingly.

(3) Every person aggrieved by any act of a receiver or manager

may apply to the Court, who may confirm or disallow the act complained
of, and make such order in the premises as is just.

(4) Such special manager or receiver shall receive such remu­ neration as the creditors may by resolution determine, or in default of any such resolution as may be prescribed.

14. (1) Where a sequestration order is made the bankrup t shall make out and lodge in the office of the Registrar and furnish to the official assignee a copy of a s ta tement of and in relation to his affairs in the form prescribed by rules of Court verified by affidavit, and showing—

(a) the particulars of the bankrup t ' s assets, debts, and liabilities ; (b) the names, residences, and occupations of the debtors to his

estate and of his creditors ;

(c)	the amount due by and to each, and the securities given or held by them respectively ;
(d)	the dates when such debts and securities arose and were granted ; and
(e)	such further or other information as may be prescribed or as the official assignee may require.

(2) The s ta tement shall be so submit ted within the following

times, namely :—

(a)	If the order is made on the petition of the debtor, upon the making of the sequestration order.
(b)	If the order is made on the petition of a creditor, within seven

days from the date of the service of the order.

But the Court may, in either case, for special reason, extend the time.

(3) The bankrupt shall also deliver to the official assignee

all books of account, vouchers, and other documents and writings in the possession or power of such bankrup t relating to his estate and dealings, and shall a t all t imes as far as lies in his power assist the official assignee, trustee, and manager in the collection and realisation of the assets.

(4) If the bankrup t fails without reasonable excuse to comply with the requirements of this section the Court may, on the application of the official assignee or of any creditor, adjudge him guilty of contempt of Court and punish him accordingly.

(5)

(5) Any person stating himself in writing to be a creditor of the bankrupt may, personally or by agent, inspect this s ta tement a t all reasonable times, and take any copy thereof or extract therefrom, b u t any person untruthfully so stat ing himself to be a creditor shall be guilty of contempt of Court, and shall be punishable accordingly on the application of the official assignee or trustee.

15. (1) As soon as may be after the lodgment of the bankrup t ' s s ta tement of affairs as aforesaid a general meeting of his creditors (in this Act referred to as the first meeting of creditors) shall be held a t an advertised t ime and place.

(2) With respect to the summoning of and proceedings a t the first and other meetings of creditors, the rules in the Second Schedule to this Act shall be observed.

(3) In the interpretat ion of the said rules the words first

meeting shall include single meeting, except t h a t such single meeting shall be presided over by the Judge or Registrar, anything in the said rules to the contrary notwithstanding.

16. At such first meeting the following business may be

t ransacted :—

(1) The creditors may consider whether any and what proposal

for a composition or scheme or arrangement shall be enter­
tained.

(2) The official assignee may, with the consent of the creditors given by resolution a t the first or any other meeting of creditors and with the approval of the Court, allow the bankrupt to retain any of his personal property ; and such approval shall have the effect of vesting the said property in the bankrup t as from the date of such resolution. Notice of the intention to allow a bankrup t to retain any of his personal proper ty shall be given to all proved creditors seven days a t least before a vote is t aken on the resolution.

(3) A t rustee or committee of inspection may be appointed as hereinafter provided.

(4) Other business may also be transacted a t such meeting, and the business specified in this section may be t ransacted a t any other meeting as well as a t the first meeting.

17. (1 ) If the estate of the bankrupt does not appear to the official assignee to be of the value of two hundred pounds or upwards, there shall ordinarily be only a single meeting of creditors, which shall speciallv be so termed and be advertised accordingly.

(2) At such single meeting the bankrup t shall a t tend, and all such mat te rs may be done and directions given as are authorised to be done or given a t any meeting of creditors where the value of the estate exceeds two hundred pounds.

(3)

(3) If t he assets appear a t a single meeting to exceed two

hundred pounds other meetings may be summoned, and all proceedings and directions shall be given or taken as provided in the case of a bankrup tcy where the estate exceeds two hundred pounds.

18. (1 ) Where the Court makes a sequestration order it shall hold a public sitt ing, on a day to be appointed by the Court, for t he examination of the bankrupt , and the bankrup t shall a t t end thereat , and shall be examined as to his conduct, dealings, and property.

(2) The examination shall be held as soon as conveniently

may be after t he expiration of the t ime for the submission of the bankrupt ' s

s ta tement of affairs.

(3) The Court may adjourn the examination from t ime to

t ime, and may direct such further examinations to be had from t ime to

t ime as it may th ink fit a t a date and place to be appointed by it.

(4) Any creditor who has proved, or his representative

authorised in writing, may question the bankrup t concerning his affairs and the causes of his failure ; and any creditor who has tendered a proof or his representat ive authorised in writing, may question the bankrup t upon any mat te rs which may serve to establish his alleged claim to be counted as a creditor.

(5) The official assignee may take par t in t he examination of

t he bankrup t .

(6) If a t rustee is appointed before the conclusion of the

examination he may take par t therein.

(7) The Court may p u t such questions to the bankrup t as it

may th ink expedient.

(8) The bank rup t shall be examined upon oath, and it shall be

his du ty to answer all such questions as the Court m a y p u t or allow to be p u t to him. The evidence shall be t aken down in writing or in shorthand, and when transcribed shall be read over to and signed by the bankrup t before the Judge or Registrar either a t the same or a t a future t ime, and it shall be open to the inspection of any creditor a t all

reasonable (9) When the Court is of opinion t h a t the affairs of the t imes.

bankrup t have been sufficiently investigated, it shall, by order, declare

t h a t his examinat ion is concluded, bu t such order shall not be made until after the day appointed for the first meeting of creditors, and the Court may a t any t ime direct a further examination on being satisfied of its propriety.

DIVISION 4.—Composition or scheme of arrangement.

19. ( 1 ) The creditors may a t the first or any other meeting, by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to them from the bankrup t , or a proposal for a scheme of arrangement of the bankrup t ' s affairs.

(2)

(2) The composition or scheme shall not be binding on the creditors unless it is confirmed by a resolution passed by a majority in number representing three-fourths in value of all the creditors who have proved at a subsequent meeting of the creditors, and is approved by the Court.

Any creditor who has proved his debt may assent to or dissent from such composition or scheme, by a letter addressed to the official assignee, in the form prescribed by rules of Court, and at tested by a witness, so as to be received by such official assignee not later t han two days preceding such subsequent meeting, and such creditor shall be taken as being present and voting at such meeting.

(3) The subsequent meeting shall be summoned by the official

assignee by not less t han seven days ' notice, and shall not be held until after the public examination of the bankrupt is concluded. The notice shall s ta te generally the terms of the proposal, and it shall be accompanied by a report of the official assignee thereon.

(4) The bankrup t or the official assignee may, after the composition or scheme is accepted by the creditors, apply to the Court to approve it, and notice of the t ime appointed for hearing the application shall be given to each creditor who has proved.

(5) The Court shall, before approving the composition or scheme, hear a report of the official assignee as to the terms of the composition or scheme and as to the conduct of the debtor, and any objections which may be made by or on behalf of any creditor.

(6) If the Court is of opinion t h a t the terms of the composition or scheme are not calculated to benefit the general body of creditors, the Court may, in its discretion, refuse to approve the composition or scheme.

(7) If t he Court approves the composition or scheme, the

approval may be testified by the seal of the Court being a t tached to the ins t rument containing the terms of the composition or scheme, or by the terms being embodied in an order of the Court. (8) A composition or scheme accepted or approved in pursu­

ance of this section shall be binding on all the creditors so far as relates to any debts due to them from the bankrup t and provable in bankruptcy .

(9) A certificate of the official assignee or Registrar t h a t a

composition or scheme has been duly accepted and approved shall, in
the absence of fraud, be conclusive as to its validity.

(10) The provisions of a composition or scheme under this section may be enforced by the Court on application by any person interested, and any disobedience of an order of the Court made on the application may be deemed a contempt of Court.

(11) If default is made in payment of any instalment due in

pursuance of the composition or scheme, or if it appears to the Court,

on

on satisfactory evidence, t h a t the composition or scheme cannot in consequence of legal difficulties, or for any sufficient cause, proceed without injustice or undue delay to the creditors or to the bankrupt , or t ha t the approval of the Court was obtained by fraud, the Court may, if it thinks fit, on application by any creditor, annul the composition or scheme, bu t without prejudice to the validity of any sale, disposition, or payment duly made, or th ing duly done under or in pursuance of the composition or scheme. And any debt provable in other respects, which has been contracted before the date of the sequestration order, shall be provable in the bankruptcy .

(12) If under or in pursuance of a composition or scheme,

a t rustee is appointed to administer the debtor 's property or manage his business, the provisions of Parts I I I and VII of this Act, so far as the na ture of the case and the terms of the composition or scheme admit , shall apply to the trustee as if he were a creditor's t rustee in a bankruptcy, and as if the terms " b a n k r u p t c y " and " b a n k r u p t " included respectively a composition or scheme of arrangement, and a compounding or arranging debtor.

(13) No composition or scheme shall be approved by the

Court which docs not provide for the payment in priority to other debts of all debts directed to be so paid in the distribution of the proper ty of

a bankrupt .

(14) No composition or scheme shall be approved of by the

Court which does not provide for payment to the creditors of seven shillings and sixpence in the pound, unless in the opinion of the Judge the bankruptcy was caused by misfortune without any misconduct on the pa r t of t he debtor : Provided t h a t if a t any t ime after such approval the Court shall be satisfied t ha t such opinion was erroneous it may declare the creditors released from the terms of the composition, but no payment made in the meant ime thereunder shall be disturbed.

(15) The acceptance of a creditor of a composition or scheme

shall not release any person who under this Act would not be released

by a certificate of discharge.

20. Notwithstanding the acceptance and approval of a composition or scheme, such composition or scheme shall not be binding on any creditor so far as regards a debt or liability from which, under the provisions of this Act, the bankrup t would not be discharged by an order of discharge, unless the creditor assents to the composition or scheme.

DIVISION 5.—Creditors' trustees and committee of inspection.
2 1 . (1) Whether the creditors resolve to entertain a proposal for

a composition or not, they may a t the first or any meeting elect such persons as they think fit, not exceeding two, to be trustees of the estate in addition to the official assignee.

U (2)

(2) Every such trustee may be a creditor or may be one of

the official assignees.

(3) Ins tead of electing trustees as aforesaid the creditors may

by resolution leave their appointment to the committee of inspection
hereinafter named.

(4) When more persons t han one are elected or appointed to the office of trustee, the creditors or the committee of inspection (as t he case may be) may a t any t ime declare whether any act or all acts required or authorised to be done by the trustees is or are to be done by all or any one or more of such persons, bu t all such persons are in this Act included under the t e rm " t rustee " (except where the context otherwise requires).

(5) The creditors or the committee (as the case may be) may a t the t ime of the original election or appointment or a t any subsequent t ime elect or appoint persons to act as trustees in succession in the event of one or more of the persons first named declining to accept the office of t rustee, or failing to give security, or not being approved of by the Court.

(6) Trustees shall be joint t enan t s of the property of the

bankrupt .

2 2 . ( 1 ) Creditors may direct what security (if any) shall be given

by every elected trustee and to whom for the due performance of the

duties of his office.

(2) No trustee shall be appointed after the termination of the

first or single meeting except by leave of the Court.

2 3 . ( 1 ) Upon the writ ten acceptance by a t rustee of his office and

proof of his having given the security required of him the Court may

make an order confirming his election.

(2) No official assignee shall be required to give security upon

being elected trustee.

of a t rustee upon the ground— (3) Any creditor may object to the confirmation of the election

(a)	that it was not made in good faith by a majority in number and value of the creditors voting, or
(b)	that the majority in number and value of the creditors dissent from his appointment , or

(c) t h a t the person appointed is not fit to act as trustee, or

(d) that his connection with or relation to the bankrupt or his estate or any part icular creditor makes it difficult for him to act with impart ial i ty in the interest of the creditors generally.

(4) If any such objection appears to the court to be frivolous the creditor making such objection may be ordered to pay the costs occasioned thereby.

(5)

(5) Notice of every confirmation or removal under this section shall forthwith be published by the Registrar in the Gazette, and the production of such Gazette shall be evidence t h a t the trustee named has been duly elected and confirmed or removed as the case may be.

24. (1) Every order confirming the election of a t rustee shall divest t he estate, and every right, t i t le, and remedy, from the person (if any) ceasing to hold the office of t rustee, and shall vest the same jointly in the official assignee and the persons who on the confirmation of the said election are the trustees.

(2) The proper ty of the bankrup t shall pass from trustee to trustee, and shall vest in the trustee for the t ime being during his continuance in office, wi thout any conveyance, assignment, or transfer whatever .

(3) A sequestration order and the order of appointment of a

t rustee shall for all purposes of any law requiring registration, enrolment, or recording of conveyances or assignments of property, be deemed to be a conveyance or assignment of property, and mav be registered, enrolled, and recorded accordingly.

25. No defect or irregularity in the election of a trustee, or of a member of the committee of inspection, shall vit iate any act done in good faith, and no act of any trustee or of the committee shall be invalid by reason of any failure to elect a co-trustee or any of its members.

26. (1) The creditors qualified to vote may a t their first or any subsequent meeting by resolution appoint from among the creditors qualified to vote, or the holders of general proxies or general powers of a t torney from such creditors, a committee of inspection for the purpose of superintending the administrat ion of the bankrup t ' s property. The committee of inspection shall consist of not more t h a n five or less t han three persons.

(2) The committee of inspection shall meet a t such times as

they from t ime to t ime appoint , and failing such appointment a t least

the committee may also call a meeting of the committee as and when	once a month ; and the official assignee or a trustee, or any member of
he thinks necessary.

(3) The committee may act by a majority of their members

present a t a meeting, bu t shall not act unless a majority of the committee
are present at the meeting.

(4) Any member of the committee may resign his office by notice in writing signed by him, and delivered to the official assignee or trustee.

(5) If a member of the committee becomes bankrupt , or compounds or arranges with his creditors, or is absent from five con­ secutive meetings of the committee, his office shall thereupon become vacant .

(6)

(6) Any member of the committee may be removed by an ordinary resolution at any meeting of creditors of winch seven days' notice has been given, stating the object of the meeting.

(7) On a vacancv occurring in the office of a member of the

committee, the official assignee or trustee shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meeting may, by resolution, appoint another creditor or other person eligible as above to fill the vacancy.

(8) The continuing members of the committee, provided there be not less than two such continuing members, may act notwithstanding any vacancy in that body : and where the number of members of the committee of inspection is for the time being less than five, the creditors may increase that number so that it does not exceed five.

DIVISION 6.—Control over person and property of bankrupt.

27. (1) Every bankrupt shall, unless prevented by sickness or other sufficient cause, attend the first meeting of his creditors, and shall also, if required by the official assignee or a trustee or creditor, attend any and every other meeting or adjournment thereof, and shall submit to such examination and give such information as the meeting may require.

(2) He shall whenever required to do so bring with him, and give such information as may be required about any books of account vouchers, and other documents in writing in his possession, relating to his estate and dealings, and about his assets, and about any particular in his statement of affairs.

(3) He shall wait at such times on the official assignee, special

manager, or trustee, execute such powers of attorney, conveyances, deeds, and instruments, and generally t o do all such acts and things in

relation to his property and the distribution of the proceeds amongst his creditors as may be reasonably required by the official assignee,	special manager, or trustee, or may be prescribed by rules of Court, or
be directed by the Court by any special order made in reference to any particular case, or made on the occasion of any special application by the official assignee, special manager, trustee, or any creditor or person interested.

(4) He shall aid to the utmost of his power in the realisation

of his property, and the distribution of the proceeds among his creditors.
(5) If a bankrupt wilfully fails to perform any of the duties
imposed on him by this section, or to deliver up possession of any part
of his property, which is divisible amongst his creditors under this Act,

and which is for the time being in his possession or under his control,

to

to the official assignee, or to the trustee, or to any person authorised by the Court to take possession of it, he shall, in addition to any other punishment to which he may be subject, be guilty of a contempt of Court, and may be punished accordingly.

28. (1) The Court may, by warrant addressed to the Sheriff or any constable or officer of the Court prescribed by rules of Court, cause a debtor to .be arrested, and any books, papers, money, and goods in his possession to be seized, and him and them to be safely kept as prescribed by rules of Court until such t ime as the Court may order under the following circumstances :

(a)	If after a bankruptcy notice has been issued under this Act, or after presentation of a bankruptcy petit ion by or against him, it appears to the Court t h a t there is probable reason for believing t h a t he is about to abscond with a view of avoiding payment of the debt in respect of which the bankruptcy notice was issued, or of avoiding service of a bankrup tcy petition, or of avoiding appearance to any such petition, or of avoiding examination in respect of his affairs, or of otherwise avoiding, delaying, or embarrassing proceedings in bankruptcy against him.
(b)	If, after presentation of a bankruptcy petition by or against him, it appears to the Court t h a t there is probable cause for believing t h a t he is about to remove his goods with a view of preventing or delaying possession being taken of them by the official assignee or manager or trustee, or t h a t there is probable ground for believing t h a t he has concealed or is about to conceal or destroy any of his goods, or any books, documents, or writings which might be of use to his creditors in the course of his bankruptcy .
(c)	If, after service on him of the notice of a bankruptcy petition, prescribed by rules of Court, he removes any goods in his possession above the value of five pounds, without the leave
of the official assignee or t rustee, if any.
(d)	If, without good cause shown, he fails to attend any examina­ t ion ordered by the Court :

Provided t h a t no arrest upon a bankrup tcy notice shall be valid and protected unless the debtor before or a t the t ime of his arrest shall be served with such bankruptcy notice.

(2) No payment or composition made or security given after arrest made under this section shall be exempt from the provisions of this Act relating to fraudulent preferences.
29. Where a sequestration order is made against a debtor, t he Court, on the application of the official assignee or trustee, may from t ime to t ime order t h a t for such t ime, not exceeding three months , as the Court th inks fit, post letters addressed to the bankrup t a t any place,

mentioned

mentioned in the order, shall be redirected, sent, or delivered by the Postmaster-General, or the officers acting under him, to t he official assignee, or the t rustee, or otherwise as the Court directs, and the same shall be done accordingly.

30. (1 ) The Court may, on the application of the official assignee or t rustee, a t any t ime after a sequestration order has been made against a debtor, summon before it the bankrup t or his wife, or any person known or suspected to have in his possession any of the estate or effects belonging to the bankrupt , or supposed to be indebted to the bankrup t , or any person whom the Court may deem capable of giving information respecting the bankrupt , his dealings or property, and the Court may require any such person to produce any documents in his custody or power relating to the bankrupt , his dealings or property.

(2) If any person so summoned, after having been tendered a reasonable sum, refuses or neglects to come before the Court a t the t ime appointed, or refuses or neglects to produce any such document, having no lawful impediment made known to the Court a t the t ime of sitting and allowed by it, the Court may, by warrant , cause him to be apprehended and brought up for examination.

(3) The Court may examine on oath, or allow t o be examined

by the official assignee and trustee and any creditor, or by any solicitor or counsel on behalf of such assignee, trustee, or creditor, in such cases where a solicitor or counsel may be employed as provided by this Act, either by word of mouth or by writ ten interrogatories, any person con­ cerning the bankrupt , his dealings or property.

(4) If any person on examination before the Court, or in answer to interrogatories, admits , or if by other evidence it is proved to the satisfaction of the Court t h a t he is indebted to the bankrupt , t he Court may, on the application of the official assignee or t rustee, forth­ with order him to pay to such assignee or trustee, a t such t ime and in

such manner as to the Court seems expedient, the amount admi t ted ,
or any par t thereof, either in full discharge of the whole amount in
question or not, as the Court thinks fit, with or wi thout costs of t he
examination and order.

(5) If any person on examination before the Court or in answer to interrogatories admits , or if by other evidence it is proved to the satisfaction of the Court, t h a t he has in his possession any property belonging to the bankrupt , the Court may, o n the application of the official assignee or t rustee, forthwith order him to deliver to the official assignee or t rustee such property, or any pa r t thereof, a t such time, and in such manner, and on such terms as to t he Court may seem ust, with or without costs of the examinat ion and order.

3 1 . If the bankrup t or any other person (including the wife of

such bankrupt ) a t any examination under the preceding section, or any adjournment thereof, being there to required (and not having any lawful excuse in t h a t behalf), shall refuse to surrender any book,, document, or writing relating to the estate, or shall refuse to be sworn or to answer any lawful question touching any of the mat te rs aforesaid, or to subscribe his examination, the Court may commit him to prison, there to remain until he shall have done the thing so required of him, or shall be discharged by the Court. And if any such person while under examination is guilty of prevarication, or evasion, or indecent conduct, the Court may commit him to prison for any te rm not exceeding fourteen days.
32. Any person committed under the last preceding section may be discharged from such committal on appeal therefrom to the Full Court if committed by the Judge , and to the Judge if committed by the Registrar, and in such last-mentioned cases a further appeal shall lie to the Full Court. If the committal was for refusing to answer a question, such question shall be set out in the warrant , and if it appears t h a t the person committed has fully answered all lawful questions pu t to him, or, if committed for refusing to be sworn or to produce a docu­ ment or for not signing his examination, t h a t he had a sufficient reason for such refusal, the Court shall order the person committed to be discharged.

33. No question p u t to the bankrup t in any examination shall

be deemed unlawful by reason only t h a t the answer thereto may expose

him to p u n i s h m e n t :

Provided t h a t no answer to any such question shall be admit ted in evidence against him on the trial of any indictment other t han on a prosecution against him for perjury.

DIVISION 7.—Release of estate, and annulment of sequestration order.

34. After the acceptance and approval of a composition or scheme of arrangement in manner hereinbefore provided, the bankrup t may apply for an order releasing his estate from sequestration, and, on his satisfying the Court t h a t the approved terms of such composition or scheme have been complied with, so far as is a t the t ime practicable, the Court may make such order on such terms as it th inks j u s t :

Provided t h a t the te rms of the composition or scheme may at any t ime be enforced notwithstanding the release in the same manner as is by this Act provided.

35. If t he bankrup t or any person on his behalf pays in full all the creditors, or obtains a legal acqui t tance of the debts due to them, the bankrup t may apply for a like order for the release of his estate ; and on being satisfied t h a t t he creditors have been so paid or have

released

released their debts and t h a t no proceedings of a criminal nature are pending or contemplated against the bankrupt , the Court may make a like order upon such terms as it th inks just.

36. Any order, whereby the estate is released from sequestration, shall have the effect of revesting in the bankrupt or such person as the Court may appoint, subject to such conditions as he may prescribe, all the property of the bankrupt undisposed of, as if the estate had never been sequestrated :

Provided t h a t all sales and dispositions of the property and pay­ ments made and acts theretofore done by the official assignee or t rustee shall be valid ; and

Provided t h a t the release of the estate shall not operate as a

discharge of the bankrup t unless the Court shall so order.

37. (1) Where in the opinion of the Court a sequestration order ought no t t o have been made, or where it is proved to the satisfaction of the Court t h a t the debts of the bankrup t are paid in full, t he Court may on the application of any person interested by order discharge such order.

(2) Where a sequestration order is discharged under this section, all sales and dispositions of property duly made, and all acts theretofore done by the official assignee, trustee, or other person acting under their authori ty , or by the Judge , Registrar, or District Registrar, shall be valid, bu t the proper ty of the debtor who was adjudged bank­ rup t shall vest in such person as the Court may appoint, or in default of any such appointment revert to the debtor for all his estate or interest therein on such terms and subject to such conditions, if any, as the Court may declare by order.

(3) Notice of the order discharging a sequestrat ion order shall

be forthwith published in the Gazette.

38 . For the purposes of this par t of this Act any debt disputed
by a debtor shall be considered as paid in full if the debtor enters into

a bond in such sum and with such sureties as the Judge or Registrar

recovery of or concerning the debt with costs, and any debt due to a	approves to pay the amount to be recovered in any proceeding for the
creditor who cannot be found or cannot be identified shall be considered as paid in full if pai 1 into Court.

DIVISION" 8.—Bankrupt's certificate.

39. Whether a composition or scheme of arrangement has been approved as hereinbefore provided or not, and whether his estate has been released or not, the bankrup t may. alter the expiration of three months from the (kite of sequestration, cause an advert isement to be inserted in the Gazette and a newspaper published in the place where the bankrupt resided at the date of the sequestration order, s ta t ing his

in ten t ion

intention to apply on a day fixed by the Judge or Registrar, and named therein, not less t h a n fourteen nor more t h a n th i r ty days from the day of first publication for a certificate of discharge under this Act : Provided t h a t where the Court has granted a release of the bankrup t ' s estate under section thirty-five, the bankrup t may forthwith apply for a certificate of discharge, anything in this section to the contrary notwithstanding.

(1) He shall give fourteen days ' notice in writing to the official assignee of such in tent ion.

(2) The application shall be heard on the appointed day and or any day or days of adjournment, and the official assignee and any creditor may be heard in opposition to such application upon giving notice of the grounds thereof.

(3) On the hearing of the application the Court shall t ake intc consideration a report of the official assignee or t rustee as to the bankrup t ' s conduct or affairs, and may either—

(a) grant or refuse an absolute order of discharge, or

(b) suspend the operation of the order for a specified t ime, or

(c) grant an order of discharge or suspend the operation of such order subject to any conditions with respect to any earnings or income which may then be or afterwards become due to the bankrup t or with respect to his after acquired property.

(4) The Court shall refuse t he discharge in all cases where he is satisfied t h a t the bankrup t has done or omitted anything which in the opinion of the Court amounts to a misdemeanour under this Act or any amendment thereof, and shall, on proof of any of the facts hereinafter mentioned, either refuse the order or suspend the operation of the order for a specified t ime, or suspend the operation of, or grant , an order of discharge subject to such conditions as aforesaid.

(5) The Court may, as one of the conditions of granting an order for any balance or pa r t of any balance of t he debts provable under the bankrup tcy which is not satisfied a t the date of the discharge, bu t in no case shall execution be issued without leave of the Court on a judgment consented to by the bankrup t under the provisions of this subsection. to judgment being entered against him by the official assignee of discharge under this section, require the bankrup t to consent

40. The facts referred to in the last preceding section are—

(a)	That the bankrupt has omitted to keep such books of account as are usual and proper, in the business or occupation carried on by him and as sufficiently disclose his business transactions and financial position within the three years immediately preceding
his bankruptcy. (b)

(b)	That the bankrupt has wilfully delayed surrendering his estate or avoided its sequestration in order to benefit or assist one creditor or more to the disadvantage of the rest.
(c)	That the bankrupt has continued to trade or obtained credit in one or more sums to the amount of fifty pounds or upwards after knowing himself to be insolvent.
(d)	That the bankrupt has contracted any debt provable in the bankruptcy without having a t the t ime of contracting it any reasonable or probable ground of expectation (proof whereof shall be on him) of being able to pay it.
(e)	That the bankrupt has brought on his bankruptcy by rash and hazardous speculations or unjustifiable extravagance in living.
(f)	That the bankrupt has put any of his creditors to unnecessary expense by frivolous or vexatious defence to any action or other proceeding properly brought against him.
(g)	That the bankrupt has within three months preceding the date of the sequestration order, when unable to pay his debts as they become due, given an undue preference to any of his creditors.
(h)	That the bankrupt has on any previous occasion been adjudged bankrup t or insolvent, or made a s ta tu tory composition or arrangement with his creditors, or assignment for the benefit of creditors a t common law, unless his estate then produced ten shillings in the pound, or a majority in number and value of the creditors in t h a t estate certify t h a t in their opinion the bankruptcy or insolvency was the result of misfortune only.

F o r e v e r y c e r t i f i c a t e o f d i s c h a r g e

. . . . . . . . . . 1 0 0

F o r e v e r y o t h e r p r o c e s s b e f o r e t h e C o u r t — s a m e a s i n t h e S u p r e m e

C o u r t e i t h e r a t L a w o r i n E q u i t y a s t h e c a s e m a y b e .

F o r e a c h m e e t i n g o f c r e d i t o r s o r e x a m i n a t i o n i n e s t a t e s u n d e r £ 2 0 0

a s s e t s . . . . . . . . . . . . . . . . . . 1 0 0

F o r a n y o t h e r m e e t i n g o f c r e d i t o r s o r e x a m i n a t i o n p e r d i e m . . 2 0 0

F o r e v e r y p r o o f o f d e b t t o b e p a i d b y t h e p e r s o n o f f e r i n g i t . . 1 0

F o r s w e a r i n g e v e r y a f f i d a v i t b y t h e p a r t y s w o r n . . . . . . 1 0

F o r e v e r y p e r s o n e x a m i n e d b y t h e p a r t y p r o d u c i n g h i m . . . . 1 0

F o r e v e r y w a r r a n t f o r a p p r e h e n s i o n o f b a n k r u p t . . . . . . 5 0

F o r e v e r y w a r r a n t o f c o m m i t m e n t o f a n y p e r s o n . . . . . . 7 6

S h e r i f f ' s F e e .

F o r r e g i s t e r i n g e v e r y o r d e r f o r s e q u e s t r a t i o n o r b a n k r u p t c y n o t i c e 1 0

T h e R e g i s t r a r - G e n e r a l ' s F e e .

F o r r e g i s t e r i n g e v e r y o r d e r o f s e q u e s t r a t i o n . . . . 1 0

F I F T H

FIFTH SCHEDULE.

In the Supreme Court of ) „ -.T

XT a J-X. ™- i I BANKRUPTCY NOTICE.

JN ew couth \V ales— - (T'tl \

In Bankruptcy.	j
To A.B. (or A.B. & Co. of	.]

TAKE notice that, within [seven] days after service of this notice on you, excluding the
day of such service, you must pay to CD., of , the sum of £ claimed by him as being the amount due on a final judgment obtained by him against you in the

Court, dated . whereon execution has not been stayed, or you

must secure or compound for the said sum to [his] satisfaction or the satisfaction of the Judge ; or vou must satisfy the Judge that you have a counter-claim, set-off, or cross- demand against CD., which equals or exceeds the sum claimed by him, and which you could not set up in the action in which the judgment was obtained.

Dated By the Court,

Registrar.

INDORSEMENT ON NOTICE.

You are special!IJ to note,—

THAT the consequences of not complying with the requisitions of this notice are that
you will have committed an act of bankruptcy, on which bankruptcy proceedings may be

taken against you.

If, however, vou have a counter-claim, set-off, or cross-demand, which equals or
exceeds the amount claimed by CD. in respect of the judgment, and which you could
not set up in the action in which the said judgment was obtained, you must within
• days apply to the Judge to set aside this notice, by filing with the

Registrar an affidavit to the above effect, setting out the particulars thereof and the

reasons why you could not set up the same in the said action.

[Name and address of Solicitor suing out the notice] or

This notice is sued out by [CD.] in person.