The Bankruptcy Act 1892 (WA)

The Bankruptcy Act, 1892.

( 55th Viet., No. 32).

ARRANGEMENT OF SECTIONS.

Preliminary. Adjudication of Bankruptcy.

Section.

1. Short Title. 19. Adjudication of bankruptcy where

2. Interpretation of Terms.

composition not accepted or ap-

proved.

3. Commencement of Act.

20. Appointment of trustee.

21. Power to accept composition or scheme

after bankruptcy adjudication.

PART I. Control over Person and Property of Debtor.

PROCEEDINGS PROM ACT OF BANKRUPTCY 22. Duties of debtor as to discovery and

TO DISCHARGE. realisation of property.

23. Arrest of debtor under certain circum-

Acts of Bankruptcy. stances.

4. Acts of bankruptcy. 24. Re-direction of debtor's letter. 25. Discbvery of debtor's property.

Receiving Order. Discharge qt. Bankrupt.

5. Jurisdiction to make receiving order.	26. Discharge of bankrupt.
6. Conditions on which creditor may	27. Fraudulent settlements.

petition. 28. Effect of order of discharge.

7. Proceedings and order on creditor's 29. Undischarged bankrupt obtaining cre-

petition. dit to the extent of £20 to be guilty

8. Debtor's petition and order thereon.

of misdemeanor.

9. Effect of receiving order.

10. Discretionary powers as to appoint-

ment of receiver and stay of pro-

ceedings.

11. Service of order staying proceedings.

12. Power to appoint special manager.

13. Advertisement of receiving order. PART II.

Proceedings consequent on Order. DISQUALIFICATIONS OF BANKRUPT.

14. First and other meetings of creditors.

30. Disqualifications of bankrupt.

15. Debtor's statement of affairs.

31. Vacating of seat in Parliament.

32. Vacating of municipal and other

offices.

Public Examination of Debtor. 33. Power for Coma to annul adjudica-

16. Public examination of debtor. tion in certain cases.

34. Meaning of payment of debts in full.

Composition or Scheme of Arrangement.

17. Power for creditors to accept :Lad Court to approve composition or arrangement.

18 Effect of composition or scheme.

Bankruptcy Act, 1892.

PART III. PART IV.

ADMINISTRATION OF PROPERTY. OFFICIAL RECEIVERS AND STAFF OF

Proof of Debts. THE SUPREME COURT.

35. Description of debts provable in bank- 63. Appointment by Governor in Council

ruptcy. of official receivers of debtors'

36. Mutual credit and set-off. estates.

37. Rules as to proof of debts.	64. Deputy for official receiver.
38. Priority of debts. Interest on debts.	65. Status of official receiver.
39. Preferential claim in case of appren-	66. Duties of official receiver as regards

ticeship. the debtor's conduct.

40. Power to landlord to distrain for rent. 67. Duties of official receiver as to debtor's

estate.

; 68. Power for Governor in Council to

appoint officers.

Property Available for Payment of Debts.

41. Relation back of trustee's title.

42. Description of bankrupt's property

divisible amongst creditors.

PART V.

Effect of Bankruptcy on antecedent TRUSTEES IN BANKRUPTCY.

Transactions. Remuneration of Trustee.

43. Restriction of rights of creditor under 69. Remuneration of trustee.

execution or attachment.

44. Duties of sheriff as to goods taken in Costs.

execution. 70. Allowance and taxation of costs.

45. Avoidance of voluntary settlements.

46. Avoidance of preferences in certain Trustees' Accounts and Audit.

cases.

47. Protection of bona Me transactions 71. Trustee to pay moneys into bank.

without notice. 72. Trustee not to pay into private

account.

73. Investment of surplus funds.

Realisation of Property.

74. Audit of trustee's accounts.

75. The trustee or official receiver to

48. Possession of property by trustee. furnish list of creditors.

49. Seizure of property of bankrupt.	76. Statement of acco mts.
50. Appropriation of portion of pay or	77. Books to be kept by trustee.

salary to creditors. 78. Annual statement of proceedings.

51. Vesting and transfer of property.

52. Disclaimer of onerous property.	Release of Trustee.
53. Powers of trustee to deal with pro-

perty. 79. Release of trustee.

54. Powers exercisable by trustee with

permission of the Court.

Official Name.

80. Official name of trustee.

Distribution of Property. Appointment and Removal.

55. Declaration and distribution of divi- 81. Power to appoint successive trustees.

dends. 82. Office of trustee vacatedby insolvency.

56. Joint and separate dividends.	83. Removal of trustee.
57. Provision for creditors residing at a	84. Proceedings in case of vacancy in

distance, &c. office of trustee.

58. Right of creditor who has not proved

debt before declaration of a divi- Voting Powers of Trustee.

dend. 85. Limitation of voting powers of trustee.

59. Final dividend.

60. No action for dividend.	Control over Trustee.
61. Power to allow bankrupt to manage

property. Allowance to bankrupt 86. Discretionary powers of trustee and

for maintenance or service. control thereof.

62. Right of bankrupt to surplus. 87. Appeal to Court against trustee. 88. Control of Court over trustees.

Bankruptcy Act, 1892.

PART VI. PART VIII.

TUE COURT: ITS PROCEDURE. AND POWERS. SUPPLEMENTAL PROVISIONS.

Jurisdiction. Application of Act.

112. Exclusion of partnerships and com-

89. Supreme Court to have jurisdiction in panies.

bankruptcy. 113. Privilege of Parliament.

90. Transaction of bankruptcy business 114. Administration in bankruptcy of es-

by special judge. tate of persons dying insolvent.

91. Exercise in chambers of Supreme

Court jurisdiction.

92. Jurisdiction in bankruptcy of Regis- General Rules.

trar. 115. Power to make general rules.

93. General power of Supreme Court in

bankruptcy. Fees, Salaries, and Returns.

116. Fees and remuneration.

Judgment Debtors. 117. Judicial and other salaries.

94. Judgment debtor's summons to be

bankruptcy business. Relation Evidence.

back in case of receiving order	118. Gazette to be evidence.
against judgment debtor.	119. Evidence of proceedings at meetings

of creditors.

Appeals. 120. Evidence of proceedings in bank-

95. Appeals in bankruptcy. ruptcy.

121. Swearing of affidavits.

Procedure. 122. Death of witness.

96. Discretionary powers of the Court. 123. Supreme Court in Bankruptcy to have

97. Consolidation of petitions. seal.

98. Power to change carriage of proceed- 124. Certificate of appointment of trustee.

ings.

99. Continuance of proceedings on death Tune.

of debtor. 125. Computation of time.

100. Power to stay proceedings.

101. Power to present petition against one

partner. Notices.

102. Power to dismiss petition against 126. Service of notices.

some respondents only.

103. Property of partners to be vested in Formal Defects.

same trustee. 127. Formal defects not to invalidate pro-

104. Actions by trustee and bankrupt's ceedings.

partners.

105. Actions on joint contracts. Stamp Ditty.

106. Proceedings in partnership name. 128. Exemption of deeds, Sc., m from stamp

duty.

Orders and Warrants of Court.

107. Enforcement of orders of Court Executions.

throughout the Colony. 129. Sales under executions to be public.

108. Warrants of the Court.	130. Writ of elegit not to extend to goods.
109. Commitment to prison.

Bankrupt Trustee.

131. Application of Trustee Act to bank-

ruptcy of trustee.

PART VII. Corporations, 4u.

132. Acting of corporations, partners, &e.

SMALL BANERUPTOIES. Construction of former Acts, 4'e.

110. Summary administration in small 133. Construction of Acts mentioning com-

cases. mission of bankruptcy, &c.

111. Power for Local Court to make 134. Certain provisions to bind the Crown.

administration order instead of 135. Transfer of estates on vacancy of office

order for payment by instalments.

of trustee in liquidation under

"The Bankruptcy Act, 1871."

136. Transfer of outstanding property on

close of bankruptcy or liquidation.

137. Transfer of estates from Clerks of

Local -Courts to official receiver.

Bankruptcy Act, 1892.

Unclaimed Funds or Dividends. 142. Power for Court to commit for trial.

138. Unclaimed and undistributed divi- 143. Attorney General to act in certain

dends or funds under this and cases.

former Act. 144. Criminal liability after discharge or

composition.

Punishment of Fraudulent Debtors.

139. Extension of penal provisions of 34 Repeal.

Viet., No. 21. 145. Repeal of enactments.

140. Power for Coma to order prosecution 146. Proceedings by arrangement or coin-

on report of official receiver. position with creditors under Act of

141. Imperial Act 24 and 25 Wet., c. 96, s. 1871.

85 to cease to apply in Western

Australia. SCHEDULES.

eat catuaralta.

ANNO QUINQUAGESIMO QUINTO

VICTORIA: REGINA,.

***********************fl*aa*****.O******4e***fl*******

No. XXXII.

AN ACT to amend and consolidate the Law

of Bankruptcy.

[Assented to, 1,s'th March, 15)92. ]

BE it enacted by the Queen's Most Excellent Majesty, by and pre„„th ie.

with the advice and consent of the Legislative Council and Legislative Assembly of Western Australia, in this present Parlia- ment assembled, and by the authority of the same, as follows:—

Prelimina2y.

1. THIS Act may be cited as " The Bankruptcy Act, 1892," and is divided into Light Parts as follows H— Snort Title .1

, arran ement. g

PART I.—SECTIONS 4 TO 29: PROCEEDINGS FROM ACT OP BANK-

RUPTCY TO DISCHARGE.

1I.—SECTIONS 30 TO 34: DISQUALIFICATIONS OF BANKRUPT.

III.—SECTIONS 35 To 62: PROOF OF DEBTS.

W.—SECTIONS 63 TO 68: OFFICIAL RECEIVERS AND OFFICERS

OF THE COURT IN BANKRUPTCY.

V.—SECTIONS 69 TO 88: TRUSTEES IN BANKRUPTCY.

V1.—SECTIONS 89 TO 109: THE COURT; ITS PROCEDURE AND

POWERS.

VII.—SECTIONS 110 AND 111: SMALL BANKRUPTCIES.

VEIL—SECTIONS 112 TO 146: SUPPLEMENTAL PROVISIONS.

55" VICTORT/E, No. 32.

Bankruptcy Act, 1892.

2. (1.) IN this Act, unless the context otherwise requires-

" The Court " means the Supreme Court in its bankruptcy

Interpretation of

Terms. jurisdiction:

" Affidavit " includes statutory declarations and affirmations : " Available act of Bankruptcy " means any act of bankruptcy

available for a bankruptcy petition at the date of the presentation of the petition on which the receiving order is made:

"Debt provable in Bankruptcy" or "Provable debt" includes any debt or liability by this Act made provable in bankruptcy :

" Full Court " means the Full Court, under " The Supreme Court Act, 1880 ":

" Gazetted " means published in the Government Gazette:

" General Rules " include forms:

" Goods " includes all chattels personal:

" Oath " includes affirmation and statutory declaration:

" Ordinary Resolution " means a resolution decided by a

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

" Person " includes a body of persons corporate or unincor-

porate :

" Prescribed " means prescribed by general rules within the meaning of this Act:

" Property " includes money, goods, things in action, land, and every description of property, whether real or personal ; 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:

" Registrar " means the Registrar of the Supreme Court in

Bankruptcy :

" Resolution " means ordinary resolution:

" Secured Creditor " means a person holding a mortgage charge

or lien on the property of the debtor, or any part thereof, as a security for a debt due to him from the debtor :

" Schedule " means schedule to this Act :

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

55° VICTORUE, No. 32.

Bankruptcy Act, 1892.

creditors present, personally or by proxy, at a meeting

of creditors and voting on the resolution:

" Treasurer " means the Colonial Treasurer for the time being : " Trustee " means the trustee in bankruptcy of a debtor's estate: (2.) The schedules to this Act shall be construed and have

effect as part of this Act.

THIS Act shall, except as by this Act otherwise provided, commence and come into operation from and immediately after the	Commencement of
Act.
first day of May, One thousand eight hundred and ninety-two.
PART. I.—PROCEEDINGS FROM ACT OF BANKRUPTCY TO DISCHARGE.

3.

Acts of Bankruptcy.

4. (f.) A DEBTOR commits an act of bankruptcy in each of the Acts of bankruptcy.

following cases :-

(a.)	If in • Western Australia or elsewhere he makes a con- veyance or assignment of his property to a trustee or trustees for the benefit of his creditors generally:
(b.)	If in Western Australia or elsewhere he makes a fraudulent conveyance, gift, delivery, or transfer of his property, or of any part thereof :
(c.)	If in Western Australia 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 he were adjudged bankrupt :
(d.)	If with intent to defeat or delay his creditors he does any of the following- things, namely: departs out of Western Australia, or being out of Western Australia remains out of Western Australia, or departs from his dwelling-house, or otherwise absents himself, or begins to keep house:
(e.)	If execution against him has been levied by seizure of his goods under process in an action in any Court, or in any civil proceeding in the Supreme Court, and the goods have been either sold or held by the sheriff for twenty-one days :

Provided that,-where an interpleader summons has

been taken out in regard to the goods seized, the time

elapsing between the date at which such summons is taken out and the date at which the sheriff is ordered to withdraw, or any interpleader issue ordered thereon is finally disposed of, shall not be taken into account in calculating such period of twenty-one days :

55" VICTORIA, No. 32.

Bankruptcy Act, 1892.

If he files in the Court a declaration of his inability to pay his debts or presents a bankruptcy petition against himself :

613

If a creditor has obtained a final judgment against him for any amount, and execution thereon not having been stayed, has served on him in Western Australia, or, by leave of the Court, elsewhere, a bankruptcy notice under this Act, requiring him to pay the judg- ment debt in accordance with the terms of the judg- ment; or to sectue or compound for it to the satisfaction of the creditor or the Court, and he does not, within seven days after service of the notice, in case the service is effected in Western Australia, and in case the service is effected elsewhere, then 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 could not set up in the action in which the judg- ment was obtained:

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 mean- ing of this section,

(k.) 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.

(2.) A bankruptcy notice under this Act shall be hi the prescribed form, and shall state the consequences of non-compliance therewith, and shall be served in the prescribed manner.

Receiving Order.

5. SUBJECT to the conditions hereinafter specified, if a debtor

Jurisdiction t o make

commits an act of bankruptcy the Court may, on a bankruptcy

receiving order.

re ce e

petition being presented either by a creditor or by the debtor, make an order, hi this Act called a receiving order, for the protection of the estate.

6. (i.) A CREDITOR shall not be entitled to present a bank-

Conditions on which ruptcy petition against a debtor unless

creditor may

petition. (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

55" VICTORT/E, No. 32.

Bankruptcy Act, 1892.

(b.) The debt is a liquidated sum, payable either immediately or at some certain future time, and

(c.) The act of bankruptcy on which the petition is grounded has occurred within six months before the presenta- tion of the petition, and

(d.) The debtor is domiciled in Western Australia, or, within a year before the date of the presentation of the petition, has ordinarily resided or had a dwelling-house or place of business in -Western Australia.

(2.) 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 the debtor being adjudged bankrupt, 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.

7. (i.) A CREDITORS petition shall be verified by affidavit Proceedings and

of the creditor, or of some person on Ins behalf having knowledge of order on creditor's

the facts, and served in the prescribed manner.	Petition	.
(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 receiving order in pursuance of the petition.
(3.) If the Court is not satisfied with the proof of the peti- tioning creditor's debt, or of the act of bankruptcy, or of the service of the petition, or is satisfied by the debtor that lie is able to pay his debts, or that for other sufficient cause no order ought to be made, the Court may dismiss the petition.
(4.) 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 thinks fit, stay or dismiss the petition, on the ground that an appeal is pending from the judgment.
(5.) Where the debtor appears on the petition, and denies that he is indebted to the petitioner, or that he is indebted to such an amount as would justify the petitioner in presenting 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 him in due course of law, and of the costs of establishing the debt, may, instead of dismissing the petition, stay all proceedings on the petition for such time as may be required for trial of the question relating to the debt.

55° VICTORIZE, No. 32.

Bankruptcy Act, 1892.

(6.) Where proceedings are stayed, the Court may, if by rea- son of the delay caused by the stay of proceedings or for any other cause it thinks just, make a receiving order on the petition of some other creditor, and shall thereupon dismiss, on such terms as it thinks just, the petition in which proceedings have been stayed as aforesaid.

(7.) A creditor's petition shall not, after presentment, be withdrawn without the leave of the Court.

Debtor's petition and	8, (I.) A DEBTOR'S petition shall allege that the debtor is unable to pay his debts, and the presentation thereof shall be deemed an act of bankruptcy without the previous filing by the debtor of any declaration of inability to pay his debts, and the Court shall thereupon make a receiving order.
order thereon.
(2.) A debtor's petition shall not, after presentment, be with- drawn without the leave of the Court.

(i.) ON the making of a receiving order an official receiver shall be thereby constituted receiver of the property of the debtor, and thereafter, 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 any action or other legal proceedings unless with the leave of the Court, and on such terms as the Court may impose.

9.

Effect of receiving

order.

(2.) But 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.

10.    (ID THE Court may, if it is shown to be necessary for the

Discretionary powers protection of the estate, at any time after the presentation of aas to appointment of receiver and stay of bankruptcy petition, and before a receiving order is made, appoint proceedings. the official receiver to be interim receiver of the property of the

debtor, or of any part thereof, and direct him to take immediate

possession thereof or of any part thereof.

(2.) The Court may at any time after the presentation of a bankruptcy petition stay any action, execution, or other legal pro- cess against the property or person of the debtor, and any Court in which civil proceedings are pending against a debtor may, on proof that a bankruptcy petition has been presented by or against the debtor, either stay the proceedings or allow them to continue on such terms as it may think just.

Service of order11. WHERE the Court makes an order staying any action or

staying proceedings. proceeding, or staying proceedings generally, the order may be served

55° VICTORIIE, No. 32.

Bankruptcy Act, 1892.

by sending a copy thereof, under the seal of the Court, by prepaid post letter to the address for service of the plaintiff or other party prosecuting such proceeding.

12. (1.) THE official receiver of a debtor's estate may, on the Power to appoint

application of any creditor or creditors, and if satisfied that the nature	special manager.
of the debtor's estate or business or the interests of the creditors generally require the appointment of a special manager of the estate or business other than the official receiver, appoint a manager thereof accordingly to act until a trustee is appointed, and with such powers (including any of the powers of a receiver) as may be entrusted to him by the official receiver.
(2.) The special manager shall give security and account in such manner as may be prescribed.
(3.) 'the special manager shall receive such remuneration as the creditors may, by resolution at an ordinary meeting, determine, or in default of any such resolution, as may be fixed by the official receiver.

13.

NOTICE of every receiving order, stating the name, address,

and description of the debtor, the date of the order, and the date of receiving order.

the petition, shall be gazetted and advertised in a local paper in the

prescribed manner.

Advertisement of

Proceedings consequent on Order.

14.      (1 .) AS soon as may be after the making of a receiving First and other

referred to as the first meeting of creditors) shall be held for the creditors.	order against a debtor a general meeting of his creditors (in this Act meetings of
purpose of considering whether a proposal for a composition or scheme of arrangement shall be entertained, or whether it is expedient that the debtor shall be adjudged bankrupt, and generally as to the mode of dealing with the debtor's property.
( 2 .) With respect to the summoning of and proceedings at the first and other meetings of creditors, the rules in the First Schedule shall be observed.

(1.) WHERE a receiving order is made against a debtor, he shall make out and submit to the official receiver a statement of o f Debtor's statement

15.

affairs.

and in relation to his affairs in the prescribed form, verified by affidavit, and showing the particulars of the debtor's assets, debts, and liabilities, the names, residences, and occupations of Ins creditors, the securities held by them respectively, the dates when the securities were respectively given, and such further or other information as may be prescribed or as the official receiver may require.

55° VICTORI_ZE, No. 32.

Bankruptcy Act, 1892.

(2.) The statement shall be so submitted within the following

times, namely

If the order is made on the petition of the debtor, within three days from the date of the order:

(11.) If the order is made on the petition of a creditor, within seven days from the date of the order :

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

(3.) If the debtor fails without reasonable excuse to comply

with the requirements of this section, the Court may, on the applica-

tion of the official receiver, or of any creditor, adjudge him bankrupt.

(4.) Any person stating himself in writing to be a creditor of

the bankrupt may, personally or by agent, inspect this statement at

all reasonable times, and take any copy thereof or extract therefrom,

but any person untruthfully so stating himself to be a creditor shall

be guilty of a contempt of court, and shall be punishable accordingly

on the application of the trustee or official receiver.

Public Examination of Debtor.

16. (I .) WHERE the Court makes a receiving order it shall

Public examination

hold a public sitting, on a day to be appointed by the Court, for the

of debtor.

examination of the debtor, and the debtor shall attend 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 the expiration of the time for the submission of the debtor's statement of affairs.

(3.) The Court may adjourn the examination from time to time. (4.) Any creditor who has tendered a proof, or his repre-

sentative authorised in writing, may question the debtor concerning

his affairs and the causes of Ins failure.

(5.) The official receiver shall take part in the examination of the debtor ; and for the purpose thereof, if specially authorised by the Court, may employ a solicitor with or without counsel.

(6.) If a trustee is appointed before the conclusion of the examination he may take part therein.

(v.) The Court may put such questions to the debtor as it may

think expedient.

(8.) The debtor shall be examined upon oath, and it shall be his duty to answer all such questions as the Court may put or allow to be put to him. Such notes of the examination as the Court thinks proper shall be taken down in writing, and shall be read over either to or by the debtor and signed by him, and may thereafter be used in evidence against him ; they shall also be open to the inspection of any creditor at all reasonable times.

55" VICTORIYE, No. aq.

Bankruptcy Act, 1892.

(g.) When the Court is of opinion that the affairs of the debtor have been sufficiently investigated, it shall, by order, declare that his examination is concluded, but such order shall not be made until after the day appointed for the first meeting of creditors.

o.) Where the debtor is a lunatic or suffers from any such mental or physical affliction or disability as in the opinion of the Court makes hiin unfit to attend his public examination, the Court may make an order dispensing with such examination, or directing that the debtor be examined on such terms, in such manner, and at such place as to the Court seems expedient.

Composition or Scheme of Arrangement.

17. (1.) WHERE a debtor intends to make a proposal for a

Compositions and

composition in satisfaction of his debts, or a proposal for a scheme of	schemes of arrange-
arrangement of his affairs, he shall, within four days of submitting	ment.
his statement of affairs, or within such time thereafter as the official receiver may fix, lodge with the official receiver a proposal in writing, signed by him, embodying the terms of the composition or scheme which he is desirous of submitting for the consideration of his creditors, and setting out particulars of any sureties or securities proposed.
(2.) In such case the official receiver shall hold a meeting of creditors, before the public examination of the debtor is concluded, and send to each creditor, before the meeting, a copy of the debtor's proposal with a report thereon ; and if at that meeting a majority in number and three-fourths in value of all the creditors who have proved resolve to accept the proposal, the same shall be deemed to be duly accepted by the creditors, and when approved by the Court shall be binding on all the creditors.

(3.) The debtor may at the meeting amend the terms of his

proposal, if the amendment is, in the opinion of the official receiver,

calculated to benefit the general body of creditors.

(4.) Any creditor who has proved his debt may assent to or dissent from the proposal by a letter, in the prescribed form, ad- dressed to the official receiver so as to be received by him not later than the clay preceding the meeting, and any such assent or dissent shall have effect as if the creditor had been present and had voted at the meeting.

(5.) The debtor or the official receiver may, after the proposal is accepted by the creditors, apply to the Court to approve it, and notice of the time appointed for hearing the application shall be given to each creditor who has proved.

(6.) The application shall not be heard until after the con-

clusion of the public examination of the debtor. Any creditor who

has proved may be heard by the Court in opposition to the applica-

55° VICTOR12E, No. 32.

Bankruptcy Act, 1892.

tion, notwithstanding that he may at a meeting of creditors have

voted for the acceptance of the proposal.

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

(8.) If the Court is of opinion that the terms of the proposal are not reasonable, or are not calculated to benefit the general body of creditors, or in any case in which the Court is required where the debtor is adjudged bankrupt to refuse his discharge, the Court shall refuse to approve the proposal.

(9.) If any facts are proved on proof of which the Court would be required either to refuse, suspend, or attach conditions to the debtor's discharge were he adjudged bankrupt, the Court shall refuse to approve the proposal, unless it provides reasonable security for payment of not less than seven shillings and sixpence in the pound on all the unsecured debts provable against the debtor's estate.

(io.) In any other case the Court may either approve or refuse to approve the proposal.

(r I.) If the Court approves the proposal, the approval may be testified by the seal of the Court being attached to the instrument containing the terms of the proposed composition or scheme, or by the terms being embodied in an order of the Court.

(12.) A composition or scheme accepted and approved in pursuance of this section shall be binding on all the creditors so far as relates to any debts due to them from the debtor and provable in bankruptcy, but shall not release the debtor from any liability under a judgment against him in an action for seduction, or under an affiliation order, or under a judgment against him as a co- respondent in a matrimonial cause, except to such an extent and under such conditions as the Court expressly orders in respect of such liability.

(13.) A certificate of the official receiver that a composition or scheme has been duly accepted and approved shall, in the absence of fraud, be conclusive as to its validity.

( t 4 .) 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 shall be deemed a contempt of Court.

(1 5 .) 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 satisfactory evidence, that 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

55" VICTORIA], No. 32.

Bankruptcy Act, 1892.

to the debtor, or that the approval of the Court was obtained by fraud, the Court may, if it thinks fit, on application by the official receiver or the trustee, or by any creditor, adjudge the debtor bankrupt, and annul the composition or scheme, but without prejudice to the validity of any sale, disposition, or payment duly made, or thing duly clone, under or in pursuance of the composition or scheme. Where a debtor is adjudged bankrupt under this sub-section, any debt provable in other respects, which has been contracted before the adjudication, shall be provable in the bankruptcy.

(t6.) If under or in pursuance of a composition or scheme a trustee is appointed to administer the debtor's property or manage his business, or to distribute the composition, section twenty-five and Part V. of this Act shall apply as if the trustee were a trustee in a bankruptcy, and as if the terms " bankruptcy, " " bankrupt, " and "order of adjudication," included respectively a composition or scheme of arrangement, a compounding or arranging debtor, and order approving the composition or scheme.

(1 7.) Part III. of this Act shall, so far as the nature of the case and the terms of the composition or scheme admit, apply thereto, the same interpretation being given to the words " trustee," "bankruptcy," " bankrupt," and " order of adjudication," as in the last preceding sub-section.

(180 No composition or scheme shall be approved by the Court which does not provide for the payment in priority to other debts of all debts directed to be so paid in the distribution of the property of a bankrupt.

(1 9.) The acceptance by a creditor of a composition or scheme shall not release any person who under this Act would not be released by an order of discharge if the debtor had been adjudged bankrupt.

18.      NOTWITHSTANDING the acceptance and approval of a Effect of compo.

composition or scheme, such composition or scheme shall not be sition or scheme.

binding on any creditor so far as regards a debt or liability from

which, under the provisions of this Act, the debtor would not be

discharged by an order of discharge in bankruptcy ; unless the

creditor assents to the composition or scheme.

Adjudication of BaltkoTtcy.

(t.) WHERE a receiving order is made against a debtor, then, if the creditors at the first meeting or any adjournment thereof	Adjudication of
bankruptcy where
composition ornot
by ordinary resolution resolve that the debtor be adjudged bankrupt,	accepted
or pass no resolution, or if the creditors do not meet, or if a	approved.
composition or scheme is not accepted or approved in pursuance of this Act within fourteen clays after the conclusion of the examina-

19.

55' VICTORIIE, No. 32.

Bankruptcy Act, 1892.

tion of the debtor or such further time as the Court may allow, the Court shall adjudge the debtor bankrupt ; and thereupon the property of the bankrupt shall become divisible among his creditors, and shall vest in a trustee.

(2.) Notice of every order adjudging a debtor bankrupt, stating the name, address, and description of the bankrupt, and the date of the adjudication, shall be gazetted and advertised in a local paper in the prescribed manner, and the date of the order shall for the purposes of this Act be the date of the adjudication.

Appointment of 20. ( .) WHERE a debtor is adjudged bankrupt, or the credi-

trustee.	tors have resolved that he be adjudged bankrupt, the creditors May, by ordinary resolution, appoint the official receiver or some other fit person, whether a creditor or not, to fill the office of trustee of the property of the bankrupt. A person shall be deemed not fit to act as trustee of the property of a bankrupt where he has been previously removed from the office of trustee of a bankrupt's property for mis- conduct or neglect of duty.
(2.) The person so appointed other than the official receiver shall give security in manner prescribed to the satisfaction of the Court, and the Court, if satisfied with the security, shall certify that his appointment has been duly made, unless one-sixth in value of the creditors shall notify to the Court that they object to the appointment on the ground that it has not been made in good faith by a majority in value of the creditors voting, or that the person appointed is not fit to act as trustee, or that his connection with or relation to the bankrupt or his estate or any particular creditor makes it difficult for him to act with impartiality in the interests of the creditors generally : Provided that where any such objection is made the Court may decide on its validity.
(3.) In the event of the official receiver being appointed the trustee of the property of the -bankrupt, the official receiver shall notwithstanding perform his duties as such receiver under this Act as if some other person than himself had been appointed the trustee. The Court shall certify the appointment of the official receiver as trustee on the receipt by the Registrar of a certified copy of the resolution of the creditors as prescribed.
(4.) The appointment of a trustee shall take effect as from the date of the certificate.
(5.) If a trustee is not appointed by the creditors within four weeks from the date of the adjudication, or, in the event of nego- tiations for a composition or scheme being pending at the expiration of those four weeks, then within seven days from the close of those negotiations by the refusal of the creditors to accept, or of the Court to approve, the composition or scheme, the official receiver shall

55° VICTORTIE, No. 32.

Bankruptcy Act, 1892.

report the matter to the Court, and thereupon the Court shall appoint the official receiver to be trustee of the bankrupt's prop- erty, and shall certify the appointment.

(6.) When a debtor is adjudged bankrupt after the first meeting of creditors has been held, and a trustee has not been appointed prior to the adjudication, the official receiver shall forth- with summon a meeting of creditors for the purpose of appointing a trustee.

.) WHERE a debtor is adjudged bankrupt the creditors

entertain a proposal for a composition in satisfaction of the debts scheme after bank-

clue to them under the bankruptcy, or for a scheme of arrangement ruptey adjudication.

of the bankrupt's affairs; and thereupon the same proceedings shall

be taken and the same consequences shall ensue as in the case of a

composition or scheme accepted before adjudication. The resolu-

tion required for accepting a proposal for a composition or scheme

under this section shall be the like resolution as is required for

accepting a like proposal before an adjudication.

may, if they think fit, at any time after the adjudication, resolve to Pcoowerostiotioanceott 21.

(2.) If the Court approves the composition or scheme it may make an order annulling the bankruptcy and vesting the property of the bankrupt in him or in such other person as the Court may appoint, on such terms, and subject to such conditions, if any, as the Court may declare.

(3.) If default is made in payment of any instalment clue in pursuance of the composition or scheme, or if it appears to the Court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the Court was obtained by fraud, the Court may, if it thinks fit, on application by any person interested, adjudge the debtor bankrupt, and annul the composi- tion or scheme, but without prejudice to the validity of any sale, disposition, or payment duly made, or thing duly clone, under or hi pursuance of the composition or scheme. Where a debtor is adjudged bankrupt under this sub-section, all debts, provable in other respects, which have been contracted before the date of such adjudication shall be provable in the bankruptcy.

Control over Person and Property of Debtor.

22. (I.) EVERY debtor against whom a receiving order is

made shall, unless prevented by sickness or other sufficient cause, Duties of debtor as attend the first meeting of his creditors, and shall submit to such troeatsproenrYordprop. examination and give such information as the meeting may require. ertY•

(2.) He shall give such inventory of his property, such list of his creditors and debtors, and of the debts due to and from them respectively, submit to such examination in respect of his

55° VICTORLE, No. 32.

Bankruptcy Act, 1892.

property or his creditors, attend such other meetings of his creditors, wait at such times on the official receiver, special manager, or trustee, execute such powers of attorney, conveyances, transfers, deeds, and in- struments, and generally 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 receiver, special manager, or trustee, or may be prescribed by general rules, or be directed by the Court by any special order or orders made in re- ference to any particular case, or made on the occasion of any special application by the official receiver, special manager, trustee, or any creditor or person interested.

(3.) He shall, if adjudged bankrupt, aid, to the utmost of his power, in the realisation of his property and the distribution of the proceeds among his creditors.

(4.) If a debtor wilfully fails to perform 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 the official receiver or to the trustee, or to any person authorised by the Court to take possession of it, lie 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.

23. (I.) THE Court may, by warrant addressed to any constable

Arrest of debtor

under certain	or prescribed officer of the Court, cause a debtor to be arrested, and
circumstances.	any books, papers, money, and goods hi his possession to be seized, and him and them to be safely kept as prescribed until such time 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 petition by or against him, it appears to the Court that there is probable reason for believing that he has absconded or 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 bankruptcy petition, or of avoiding appearance to any such peti- tion, or of avoiding examination in respect of his affairs, or of otherwise avoiding, delaying, or embar- rassing proceedings hi bankruptcy against him.

(b.) If, after presentation of a bankruptcy petition by or against him, it appears to the Court that there is probable cause for believing that he is about to remove his goods with a view of preventing or delay

ing possession being taken of them by the official receiver or trustee, or that there is probable ground for believing that lie has concealed, or is about to

55° VICTORDE, No. 32.

Bankruptcy Act, 1892.

- --

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.

If, after service of a bankruptcy petition on him, or

after a receiving order is made against him, he re- moves any goods in his possession above the value of five pounds, without the leave of the official receiver or trustee.

(d.) If, without good cause shown, lie fails to attend any examination ordered by the Court.

Provided that no arrest upon a bankruptcy notice shall be valid and protected unless the debtor before or at the time 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.

24.      WHERE a receiving order is made against a debtor, the Re-direction of

Court, on the application of the official receiver or trustee. may from debtor's letter.

time to time order that for such time, not exceeding three months,

as the Court thinks fit, post letters addressed to the debtor at any place or places mentioned in the order for re-direction shall be re- directed, sent or delivered by the Postmaster General, or the officers acting under him, to the official receiver, or the trustee, or otherwise as the Court directs, and the same shall be clone accordingly.

OD THE Court may, on the application of the official receiver or trustee, at any time after a receiving order has been made	p	Discovery of deb	debtor's
Property.
against a debtor, summon before it the debtor or his wife, or any person known or suspected to have in his possession any of die estate or effects belonging to the debtor, or supposed to be indebted to the debtor, or any person whom the Court may deem capable of
giving information respecting the debtor, his dealings or property,
and the Court may require any such person to produce any docu- ments in his custody or power relating to the debtor, his dealings or property.

25.

(2.) If any person so summoned, after having been tendered

a reasonable sum, refuses to conic before the Court at the time ap- pointed, or refuses to produce any such document, having no lawful impediment made known to the Court at the time of its sitting and allowed by it, the Court may, by warrant, cause him to be appre- hended and brought up for examination.

(3.) The Court may examine on oath, either by word of mouth or by written interrogatories, any person so brought before it concerning the debtor, his dealings, or property.

55° VICTORIX, No. 32.

Bankruptcy Act, 1892. . .

(4 .) If ally person on examination before the Court admits that he is indebted to the debtor, the Court may, on the application of the official receiver or trustee, order him to pay to the receiver or trustee, at such time and in such manner as to the Court seems expedient, the amount admitted, or any part thereof, either in full discharge of the whole amount in question or not, as the Court thinks fit, with or without costs of the examination and arrest.

(s.) If any person on examination before the Court admits that lie has in his possession any property belonging to the debtor, the Court may, on the application of the official receiver or trustee, order him to deliver to the official receiver or trustee such property, or any part thereof, at such time, and in such manner, and on such terms as to the Court may seem just.

Discharge of bank-ad 26. (i .) A BANKRUPT may, at any time after being

runt.	adjudged bankrupt, apply to the Court for an order of discharge, and the Court shall appoint a day for hearing the application, but the application shall not be heard until the public examination of, the bankrupt is concluded. The application shall be heard in open Court.
(2.) On the hearing of the application the Court shall take into consideration a report of the official receiver as to the bankrupt's conduct and affairs (including a report as to the bankrupt's conduct during the proceedings under his bankruptcy), and may either grant 'or refuse an absolute order of discharge, or suspend the operation of the order for a specified time, or grant an order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt, or with respect to his after-acquired property : Provided that the Court shall refuse the discharge in all cases where the bankrupt has com-
34 Viet., No. 21.	mitted any misdemeanor under " The Debtors Act, 1871," Or this Act, or any other misdemeanor connected with his bankruptcy, or any felony connected with his bankruptcy, unless for special reasons the Court otherwise determines, and shall, on proof of any of the facts hereinafter mentioned, either

Op refuse the discharge; or

(ii.) suspend the discharge for a period of not less than two

years; or

(m.) suspend the discharge until a dividend of not less than Ten shillings in the pound has been paid to the credi- tors; or

(iv.) require the bankrupt as a condition of his discharge to consent to judgment being entered against him by the official receiver or trustee for any balance, or part of any balance, of the debts provable under the bank-

55° ITICTORLE, No. 32.

Bankruptcy Act, 1892.

ruptcy which is not satisfied at the date of the dis- charge, such balance, or part of any balance, of the debts to be paid out of the future earnings or after- acquired property of the bankrupt in such manner and subject to such conditions as the Court may direct ; but execution shall not be issued on the judg- ment without leave of the Court, which leave may be given on proof that the bankrupt has since his dis- charge acquired property or income available towards payment of his debts.

Provided that, if at any time after the expiration of two years from the date of any order made under this section the bankrupt shall satisfy the Court that there is no reasonable probability of his being in a position to comply with the terms of such order, the Court may modify the terms of the order, or of any substituted order, in such manner and upon such conditions as it may think fit.

(3 .) The facts hereinbefore referred to are :-

(a.) That the bankrupt's assets are not of a value equal to

Ten shillings in the pound on the amount of Ins unsecured liabilities, unless he satisfies the Court that the fact that the assets are not of a value equal to Ten shillings in the pound on the amount of his unsecured liabilities has arisen from circumstances for which he cannot justly be held responsible:

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

(c.) That the bankrupt has continued to trade after knowing himself to be insolvent :

(d.) That the bankrupt has contracted any debt provable in the bankruptcy without having at the time of con- tracting it any reasonable or probable ground of expectation (proof whereof shall lie on him) of being able to pay it :

(e.) That the bankrupt has failed to account satisfactorily for any loss of assets or for any deficiency of assets to meet his liabilities:

( f.) That the bankrupt has brought on, or contributed to, his bankruptcy by rash and hazardous speculations, or by unjustifiable extravagance in living, or by gambling, or wagering, or by culpable neglect of his business affairs :

550 VICTORLE, No. 32.

Bankruptcy Act, 1892.

That the bankrupt has put any of his creditors to un-

(g.)

necessary expense by a frivolous or vexatious defence

to any action properly brought against him:

That the bankrupt has within three months preceding the date of the receiving order incurred unjustifiable expense by bringing a frivolous or vexatious action :

(h.)

(1.) That the bankrupt has within three months preceding the date of the receiving order, when unable to pay his debts as they become clue, given an undue pre- ference to any of his creditors:

(j.) That the bankrupt has within three months preceding the date of the receiving order incurred liabilities with a view of making his assets equal to ten shillings in the pound on the amount of his unsecured

ties :

(k.) That the bankrupt has on any previous occasion been adjudged bankrupt, or made a composition or arrange- ment with his creclitors:

(1.) That the bankrupt has been guilty of any fraud or fraudulent breach of trust.

(4.) A bankrupt against whom any of the matters or facts stated in paragraphs (b.), (d.), (f.), (g.), (h.), (j.), or (1.) of the preced- ing sub-section may be proved shall be guilty of a misdemeanor and may be dealt with and punished as if he had been guilty of a misde- meanor under " The Debtors Act, 1871," and the provisions of that Act shall apply to proceedings under this sub-section.

(s.) If on the hearing of the application for an order of dis-

charge any of the matters or facts stated in paragraphs (b.), (d.), (f.),

OD, (h.), (j.), or (1.) of sub-section (3) are proved to the satisfactionof the Court it may, without prejudice to the exercise at the same

time of any of the powers of the Court under sub-section (2), convict the bankrupt and adjudge him to be imprisoned with or without hard labor for any term not exceeding Two years, and no appeal shall lie against any such conviction.

(6.) For the purposes of this section a bankrupt's assets shall be deemed of a value equal to ten shillings in the pound on the amount of his unsecured liabilities when the Court is satisfied that the property of the bankrupt has realised, or is likely to realise, or with due care in realisation might have realised, an amount equal to ten shillings in the pound on his unsecured liabilities, and a report by the official receiver or the trustee shall be plinth facie evidence of the amount of such liabilities.

55° VICTOR' AR:, No. 32.

Bankruptcy Act, 1892.

(v.) For the purposes of this section the report of the official

receiver shall be iffi»ue facie evidence of the statements therein con-

tained.

(8.) Notice of the appointment by the Court of the day for hearing the application for discharge shall be published in the pre- scribed manner, and sent fourteen clays at least before the clay so appointed to each creditor who has proved, and the Court may hear the official receiver and the trustee, and may also hear any creditor. At the hearing the Court may put such questions to the debtor and receive such evidence as it may think fit.

Op The powers of suspending and of attaching conditions to a bankrupt's discharge may be exercised concurrently.

(1 o.) A discharged bankrupt shall, notwithstanding his dis- charge, give such assistance as the trustee may require in the realis- ation and distribution of such of his property as is vested in the trustee, and if he fails to do so he shall be guilty of a contempt of Court ; and the Court may also, if it thinks fit, revoke his discharge, but without prejudice to the validity of any sale, disposition, or pay- ment duly made- or thing duly clone subsequent to the discharge but before its revocation.

27. IN either of the following cases ; that is to say,

(1.) In the case of a settlement made before and in consider- ation of marriage where the settlor is not at the time	Fraudulent settle-
ments.

of making the settlement able to pay all his debts without the aid of the property comprised in the settlement ; or

(2.) In the case of any covenant or contract made in con- sideration of marriage for the future settlement on or for the settlor's wife or chiklren of any money or pro- perty wherein he had not at the date of his marriage any estate or interestnot being money or property ofinterest(no or in right of his wife ;

the settlor is adjudged bankrupt or compounds or arranges with his creditors, and it appears to the Court that such settlement, coven- ant, or contract was made in order to defeat or delay creditors, or was unjustifiable having regard to the state of the settlor's affairs at the time when it was made, the Court may refuse or suspend an order of discharge, or grant an order subject to conditions, or refuse to approve a composition or arrangement, as the case may be, in like

manner as in cases where the debtor has been guilty of fraud.

28. (i.) AN order of discharge shall not release the bankrupt Effect of order of

from any debt on a recognizance nor from any debt with which the discharge,

bankrupt may be chargeable at the suit of the Grown or of any per-

55" VICTORIX, No. 32.

Bankruptcy Act, 1892.

son for any offence against a statute relating to any branch of the public revenue, or at the suit of the sheriff or other public officer on a bail bond entered into for the appearance of any person prosecuted for any such offence: and he shall not be discharged from such excepted debts unless the Treasurer certify in writing his consent to his being discharged therefrom. An order of discharge shall not release the bankrupt from any debt or liability incurred by means of any fraud or fraudulent breach of trust to which he was a party, nor from any debt or liability whereof he has obtained forbearance by any fraud to which he was a party, nor from any liability under a judgment against him in an action for seduction, or under an affili- ation order, or under a judgment against him as a co-respondent in a matrimonial cause, except to such an extent and under such con- ditions as the Court expressly orders in respect of such liability.

(2.) An order of discharge shall release the bankrupt from all other debts provable in bankruptcy.

(3.) An order of discharge shall be conclusive evidence of the bankruptcy, and of the validity of the proceedings therein, and in any proceedings that may be instituted against a bankrupt who has obtained an order of discharge in respect of any debt from which he is released by the order, the bankrupt may plead that the cause of action occurred before his discharge, and may give this Act and the special matter in evidence.

(k.) An order of discharge shall not release any person who at the date of the receiving order was a partner or co-trustee with the bankrupt or was jointly bound or had made any joint contract with him, or any person who was surety or in the nature of a surety for him.

29.      WHERE an undischarged bankrupt who has been ad-

'Undischarged bank- judo-ed bankrupt under this Act obtains credit to the extent of

rupt obtaining creditto extent of .F20 to twenty pounds or upwards from any person without informing such

be guilty of misde- person that he is an undischarged bankrupt, he shall be guilty of a

meanor.

misdemeanor, and may be dealt with and punished as if he had been guilty of a misdemeanor under " The Debtors Act, 1871," and the provisions of that Act shall apply to proceedings under this section.

PART II.—DISQUALIFICATIONS OF BANKRUPT.

30.       (i .) WHERE a debtor is adjudged bankrupt he shall, sub-

Disqualifications of

bankrupt. ject to the provisions of this Act, be disqualified for

(a.) Being elected to, or sitting or voting in, the Legislative Council or Legislative Assembly, or on any Com- mittee thereof respectively ;

(b.) Being appointed or acting as a justice of the peace;

55" VICTORI2E, No. 32.

Bankruptcy Act, 1892.

(c.) Being elected to or holding or exercising the office of mayor, alderman, or councillor ;

(d.) Being elected to or holding or exercising the office of member of a school board, road board, or board of health.

(2.) No such disqualification shall exceed a period of five years from the date of any discharge which may be granted under this Act.

(3 .) The disqualifications to which a bankrupt is subject

under this section shall be removed and cease if and when,

(a.) the adjudication of bankruptcy against him is annulled;

or

(b.) he obtains from the Court his discharge with a certificate to the effect that his bankruptcy was caused by mis- fortune, without any misconduct on his part.

The Court may grant or withhold such certificate as it thinks fit, but any refusal of such certificate shall be subject to appeal.

(4.) Section thirty-two of "The Constitution Act, 1889," shall be read and construed as if the disqualification imposed by this section was mentioned. in that Act.

IF a member of the Legislative Council or a member of the Legislative Assembly is adjudged bankrupt, and the disqualifications	Vacating of seat in
Parliament.
arising therefrom under this Act are not removed within six months from the date of the order, the Court shall, immediately after the expiration of that time, certify the same to the President or Speaker of the House of which the bankrupt is a member, and thereupon the seat of the member shall be vacant, and the like proceedings shall be taken under " The Constitution Act, 1889," for supplying such vacancy as in the case of a vacancy caused by death or resignation.

31.

32.

IF a person is adjudged bankrupt whilst holding the office of mayor, alderman, councillor, member of a school board, road	Vacating of muni-
cipal and other
board, or board of health, his office shall thereupon become vacant.	offices.

(i.) WI-IEEE in the opinion of the Court a debtor ought not to have been adjudged bankrupt, or where it is proved to the

Power for Court to

annul adjudication

satisfaction of the Court that the debts of the bankrupt are paid in

in certain eases.

full, the Court may, on the application of any person interested, by

order, annul the adjudication.

(2.) Where an adjudication is annulled under this section all sales and dispositions of property and payments duly made, and all acts theretofore done, by the official receiver, trustee, or other person acting under their authority, or by the Court, shall be valid, but the

33.

55° VICTORTIE, No. 32.

Bankruptcy Act, 1892.

property of the debtor who was adjudged bankrupt 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, and subject, always, to the provisions of this sub-section.

(3.) Notice of the order annulling an adjudication shall be forthwith gazetted and published in a local paper.

Meaning of payment 34. FOR the purposes of this Part of this Act, any debt

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

PART III.—ADMINISTRATION OF PROPERTY.

Proof of Debts.

Description of debts 35. (i.) DEMANDS in the nature of unliquidated damages

provable in bank-	arising otherwise than by reason of a contract, promise, or breach of
ruptcy.	trust, shall not be provable in bankruptcy.
(2.) A person having notice of any act of bankruptcy avail- able against the debtor shall not prove under the order for any debt or liability contracted by the debtor subsequently to the date of his so having notice.
(s.) Save as aforesaid, all debts and liabilities, present or future, certain or contingent, to which the debtor is subject at the date of the receiving order, or to which he may become subject before his discharge by reason of any obligation incurred before the date of the receiving order, shall be deemed to be debts provable in bankruptcy.
(4.) An estimate shall be made by the trustee of the value of any debt or liability provable as aforesaid, which by reason of its being subject to any contingency or contingencies, or for any other reason, does not bear a certain value.
(s.) Any person aggrieved by any estimate made by the trustee as aforesaid may appeal to the Court.
(6.) If, in the opinion of the Court, the value of the debt or liability is incapable of being fairly estimated, the Court may make an order to that effect, and thereupon the debt or liability shall, for the purposes of tins Act, be deemed to be a debt not provable in bankruptcy.

55" VICTORLE, No. 32.

Bankruptcy Act, 1892.

(v.) If, in the opinion of the Court, the value of the debt or liability is capable of being fairly estimated, the Court may direct the value to be assessed, before the Court itself without the interven- tion of a jury, and may give all necessary directions for fins purpose, and the amount of the value when assessed shall be deemed to be a debt provable in bankruptcy.

(8.) " Liability " shall for the purposes of this Act include any compensation for work or labor done, any obligation or possi- bility of an obligation to pay money or money's worth on the breach of any express or implied covenant, contract, agreement, or under- taking, whether the breach does or does not occur, or is or is not likely to occur or capable of occurring before the discharge of the debtor, and generally it shall include any express or implied engage- ment, agreement, or undertaking, to pay, or capable of resulting in the payment of money, or money's worth, whether the payment is, as respects amount fixed or unliquidated ; as respects time, present or future, certain or dependent on any one contingency or on two or more contingencies; as to mode of valuation capable of being ascertained by fixed rules, or as matter of opinion.

38. WHERE there have been mutual credits, mutual debts, or

other mutual dealings between a debtor against whom a receiving mu tual credit and

order shall be made under this Act, and any other person proving sot-off.

or claiming to prove a debt under such receiving order, an account

shall be taken of what is due from the one party to the other in

respect of such mutual dealings, and the sum clue from the one

party shall be set off against any sum due from the other party, and

the balance of the account, and no more, shall be claimed or paid on

either side respectively ; but a person shall not be entitled under

this section to claim the benefit of any set-off against the property

of a debtor in any case where he had at the time of giving credit to

the debtor, notice of an act of bankruptcy committed by the debtor,

and available against him.

WITH respect to the mode of proving debts, the right of

proof by secured and other creditors, the admission and rejection of Rules as to proof of

proofs, and the other natters referred to in the Second Schedule, the debts.

rules in that schedule shall be observed.

37.

(I.) IN the distribution of the property of a bank upt there shall be paid in priority to all other debts, Priority of debts.

38.

(a.) All municipal or other local rates and all public taxes due from the bankrupt at the date of the receiving order, and having become clue and payable within twelve months next before such time;

55" VICTORIX, No. 32.

Bankruptcy Act, 1892.

(b.) t111 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

All wages of any laborer 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 them- selves, 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 appli- cable 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.) Where a debt has been proved winch includes interest, or any pecuniary consideration in lieu of interest, such interest or consideration shall, for the purposes of dividend, be calculated. at a rate not exceeding ten per centum per annum, without prejudice to the right of a creditor to receive ont of the estate any higher rate of interest to which he may be entitled after all the debts proved in the estate have been paid in full.

Interest on debts.

(s.) Subject to the provisions of this Act all debts proved in the bankruptcy shall be paid parr passu.

(6.) 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 eight pounds per centum per annum on all debts proved in the bankruptcy.

Preferential claim in 39. (1.) WHERE at the time of the presentation of the

ease of apprentice-

bankruptcy petition any person is apprenticed or is an articled

ship.

cleric to the bankrupt, the adjudication of bankruptcy shall, if the apprentice or cleric gives notice in writing to the trustee to that effect, be a complete discharge of the indenture of apprentice- ship or articles of agreement ; and if any money has been paid by or on behalf of the apprentice or clerk to the bankrupt as a fee, the trustee may, on the application of the apprentice or clerk, or of some person on his behalf, pay such sum as the trustee, subject to an appeal to the Court, thinks reasonable, out of the bankrupt's property, to or for the use of the apprentice or clerk, regard

55° VICTORIIE, No. 32.

Bankruptcy Act, 1892.

being had to the amount paid by him or on his behalf, and to the time during which he served with the bankrupt under the indenture or articles before the commencement of the bankruptcy, and to the other circumstances of the case.

( 2 .) The trustee shall, on the application of any apprentice

or articled clerk to the bankrupt, or ally person acting on behalf of such apprentice or articled clerk, transfer the indenture of ap- prenticeship or articles of agreement to some other person.

(I.) THE landlord or other person to whom any rent is due from the bankrupt may at any time, either before or after the	Power to landlord to
distrain for rent.
commencement of the bankruptcy, distrain upon the goods or effects of the bankrupt for the rent clue to him from the bankrupt, with this limitation, that if such distress for rent be levied after the commencement of the bankruptcy it shall be available only for six months' rent accrued due prior to the date of the order of adjudica- tion, but the landlord or other person to whom the rent may be due from the bankrupt may prove under the bankruptcy for the surplus due for which the distress may not have been available.
(2.) For the purposes of this section the term " order of adjudication " shall be deemed to include all order for the adminis- tration of the estate of a debtor whose debts do not exceed fifty pounds, or of a deceased person who dies insolvent.

40.

Property available for Payment of Debts.

THE bankruptcy of a debtor, whether the same takes place

on the debtor's own petition or upon that of a creditor or creditors, trustee's title.

shall be deemed to have relation back to, and to commence at, the

time of the act of bankruptcy being committed on which a receiving

order is made against him, or, if the bankrupt is proved to have

committed more acts of bankruptcy than one, to have relation back

to, and to commence at, the tune of the first of the acts of bankruptcy

proved to have been committed by the bankrupt within twelve

months next preceding the date of the presentation of the bankruptcy

petition ; but no bankruptcy petition, receiving order, or adjudication

shall be rendered invalid by reason of any act of bankruptcy anterior

to the debt of the petitioning creditor.

Relation back of

41.

42.      THE property of the bankrupt divisible amongst his Description of

creditors, and in this Act referred to as the property of the bankrupt, bankrupt's property	divisible amongst
shall not comprise the following particulars:	creditors.

( 1 .) Property held by the bankrupt on trust for any other

person :

.( 2 .)

The tools (if ally) of his trade and the necessary wearing

apparel and bedding of himself, his wife and children,

55° VICTOMIE, No. 32.

Bankruptcy Act, 1892.

to a value, inclusive of tools and apparel and bedding,

not exceeding twenty pounds in the whole:

But it shall comprise the following particulars:

(i.) All such property as may belong to or be vested in the bankrupt at the commencement of the bankruptcy, or may be acquired by or devolve on him before his dis- charge; and

(ii.)

The capacity to exercise and to take proceedings for exer- cising all such powers in or over or in respect of property as might have been exercised by the bank- rupt for his own benefit at the commencement of his bankruptcy or before his discharge ; and

All goods being, at the commencement of the bank- ruptcy, in the possession, order, or disposition of the bankrupt, in his trade or business, by the consent and permission of the true owner, under such circum- stances that he is the reputed owner thereof ; pro- vided that things in action other than debts due or growing due to the bankrupt in the course of his trade or business, shall not be deemed goods within the meaning of this section.

Effect of Bankruptcy on antecedent Transactions.

43.    (1.) WHERE a creditor has issued execution against the

Restriction of rights goods or lands of a debtor, or has attached any debt clue to him, heof creditor under execution or attach- shall not be entitled to retain the benefit of the execution or inept. attachment against the trustee in bankruptcy of the debtor, unless

he has completed the execution or attachment before the date of the receiving order, and before notice of the presentation of any bank- ruptcy petition by or against the debtor, or of the commission of any available act of bankruptcy by the debtor.

(2.) For the purposes of this Act, an execution against goods is completed by seizure and sale ; an attachment of a debt is com- pleted by receipt of the debt ; and an execution against land is completed as to land under the operation of " The Transfer of Land Act, 1874," by lodging a copy of the writ of execution with the Registrar of Titles ; and as to land not under the operation of the said Act, by registering the writ under the provisions of the Ordin- ance passed in the nineteenth year of the Reign of Her present illajesty, and numbered 14, or in the case of an equitable interest, by the appointment of a receiver.

44.      (1 .) WHERE any goods of a debtor are taken in execu-

Duties of sheriff as

to goods taken in

execution. tion and before the sale thereof, or the completion of the execution

55" VICTORIA:, No. 32.

Bankruptcy Act, 1892.

by the receipt or recovery of the full amount of the levy, notice is served on the sheriff that a receiving order has been made against the debtor, the sheriff shall, on request, deliver the goods and any money seized or received in part satisfaction of the execution to the official receiver, but the costs of the execution shall be a first charge on the goods or money so delivered, and the official receiver or trustee may sell the goods, or an adequate part thereof, for the purpose of satisfying the charge.

(2.) Where under an execution in respect of a judgment for a sum exceeding twenty pounds, the goods of a debtor are sold or money is paid in order to avoid sale, the sheriff shall deduct his costs of the execution from the proceeds of sale or the money paid, and retain the balance for fourteen clays, and if within that time notice is served on him of a bankruptcy petition having been presented against or by the debtor, and a receiving order is made against the debtor thereon or on any other petition of which the sheriff has notice, the sheriff shall pay the balance to the official receiver or, as the case may be, to the trustee, who shall be entitled to retain the same as against the execution creditor.

(3.) An execution levied by seizure and sale on the goods of a debtor is not invalid by reason only of its being an act of bank- ruptcy, and a person who purchases the goods in good faith under a sale by the sheriff shall in all cases acquire a good title to them against the trustee in bankruptcy.

made before and in consideration of marriage, or made in favor of taffy settlements. 45. (1 .) ANY settlement of property not being a settlement Avoidance of „ann.

a purchaser or incumbrancer in good faith and for valuable consider- ation, or a settlement made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall, if the setao • becomes bankrupt within two years after the. date of the settlement, be void against the trustee in the bankruptcy, and shall, if the settlor becomes bankrupt at any subsequent time within ten years after the date of the settlement, be void against the trustee in the bankruptcy, unless the parties claiming under the settlement can prove that the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement, and that the interest of the settlor in such property had passed to the trustee of such settlement on the execution thereof.

(2.) Any covenant or contract made in consideration of marriage, for the future settlement on or for the settlor's wife or children of any money or property wherein he had not at the date of his marriage any estate or interest, whether vested or contingent in possession or remainder, and not being money or property of or in right of his wife, shall, on his becoming bankrupt before the

55° VICTORIIE, No. 32.

Bankruptcy Act, 1892.

property or money has been actually transferred or paid pursuant to the contract or covenant, be void against the trustee in the bankruptcy.

(3 .) " Settlement" shall for the purposes of this section include any conveyance or transfer of property.

(1.) EVERY conveyance or transfer of property, or charge every judicial proceeding taken or suffered by any person unable to pay his debts as they become due from Ins own money in favor of any creditor, or any person in trust for any creditor, with a view of giving such creditor a preference over the other creditors shall, if the person making, taking, paying, or suffering the same is adjudged bankrupt on a bankruptcy petition presented within three months after the date of making, taking, paying, or suffering the same, be deemed fraudulent and void as against the trustee in the bankruptcy. Nothing in this sub-section shall affect the rights of any person making title in good faith and for valuable consideration through or under a creditor of the bankrupt.

46.

Avoidance of prefer-	thereon made, every payment made, every obligation incurred, and
ences in certain cases.
(2.) Every bill of sale of personal chattels within the mean- ing of " The Bills of Sale Act, 1879," for seeming money, given by any person who is adjudged bankrupt on a bankruptcy petition presented within six months after the date of giving the same, shall be void as against the trustee except as a security for money ad- vanced and paid or the actual money value of goods sold and delivered by the grantee to the grantor at the time of the giving of such bill of sale: Provided that the words " personal chattels" shall not mean or include sheep, wool, cattle or horses, nor any station plant, machinery, implements, agricultural produce, or goods on or belonging to any sheep, cattle, or horse station, or any farm for the pm-poses of this sub-section.

Unclaimed Funds or Dividends.

(I.) WHERE the trustee, under any bankruptcy, coin- position or scheme pursuant to this Act, shall have under his control distributed dividends Unclaimed and MI-

138.

any unclaimed dividend which has remained unclaimed for more orfuf Af nds under

and

than six months, or where, after making a final dividend, such trustee shall have in his hands or under his control any unclaimed or undistributed moneys arising from the property of the debtor, lie shall forthwith pay the same to such Account and at such bank as may be prescribed. The Registrar of the Court shall furnish him with a certificate of receipt of the money so paid, which shall be an effectual discharge to him in respect thereof.

(2.) (a.) Where, after the passing of this Act, any unclaimed or undistributed funds or dividends in the hands or under the control of any trustee under "The Bankruptcy Act, 1871," have remained or remain unclaimed or undistributed for six months after the same became claimable or distributable, or in any other case for two years after the receipt thereof by such trustee, it shall be the duty of such trustee forthwith to pay the same to such account and at such bank as may be prescribed. The Registrar shall furnish such trustee with a certificate of receipt of the money so paid, which shall be an effectual discharge to him in respect thereof.

(b.) The Court may at any time order any such trustee to submit to it an account verified by affidavit of the sums received and paid by him as such trustee, and may direct and enforce an audit of the account.

(c.) The Chief Justice, with the concurrence of the Treasurer,

may from time to time appoint a person to collect and get in all such

550 VICTOR12E, No. 32.

Bankruptcy Act, 1892.

unclaimed or undistributed funds or dividends, and for the purposes of this section the Court shall have, and may exercise all the powers conferred by this Act with respect to the discovery and realisation of the property of a debtor, and the provisions of Part I. of this Act with respect thereto shall, with any necessary modifications, apply to proceedings under this section.

(3 .) The provisions of this section shall not, except as expressly declared herein, deprive any person of any larger or other right or remedy to which he may be entitled against such trustee or other person.

(k.) Any person claiming to be entitled to any moneys paid in to the prescribed account pursuant to this section may within six years from the date such moneys respectively are so paid in apply to the Court for payment to him of the same, and the Court, if satisfied that the person claiming is entitled, shall make an order for the pay- ment to such person of the sum due.

(s.) All such unclaimed or undistributed funds or dividends not paid out in pursuance of the last preceding sub-section shall, on the expiration of six years after the same respectively are paid into the prescribed account as aforesaid, be paid over to the Colonial Treasurer for the public use of the Colony.

Punishment of Fraudulent Debtors.

139. (I.) SECTION seven of "The Debtors Act, 1871," relating

Extension of penal to the punishment of fraudulent debtors, shall have effect as if there provisions of 34 Viet., were substituted therein for the words, " if after the presentation of

a bankruptcy petition against him," the words " if after the 'presen- tation of a bankruptcy petition by or against him," and for the words "if within four months next before the presentation of a bankruptcy petition against him," the words " if within four mouths next before the presentation of a bankruptcy petition by or against him, or in case of a receiving order made under section ninety-four of The Bankruptcy Act, 1892,' before the date of the order."

(2.) Section eight of "The Debtors Act, 1871," imposing a penalty for absconding with property, shall have effect as if there were substituted therein for the words " after the presentation of a bank- ruptcy petition against him, or the commencement of the liquidation or composition, or within four months before such presentation or commencement," the words " after the presentation of a bankruptcy petition by or against him, or the commencement of the liquidation or composition, or within four months next before such presentation or commencement, or in the case of a receiving order made under section ninety-four of The Bankruptcy Act, 1892,' before the date of the order."

55° ITICTORI2E, No. 32.

Bankruptcy Act, 1892.

(3 .) The provisions of "The Debtors Act, 1871," as to offences

by bankrupts shall apply to any person whether a trader or not in respect of whose estate a receiving order has been made as if the term " bankrupt " in that Act included a person in respect of whose estate a receiving order had been made.

140. SECTION twelve of "The Debtors Act, 1871," shall be con-

strued and have effect as if the term " a trustee in any bankruptcy '' order r pit: e eCuottiloritt on to

included the official receiver of a bankrupt's estate, and shall apply report of official re-

ceiver .

to offences under this Act as well as to offences under " The Debtors

Act, 1871."

(1 .) SO much of section eighty-five of the Act of the session of the Imperial Parliament, held in the twenty-fourth and Imperial Act 24 & 25

141.

e. 96, s. 85, to

twenty-fifth years of Her present Majesty, chapter 96, intituled " An cease to apply in

Act to consolidate and amend the statute law of England and Ireland

Western Australia.

relating to larceny and other similar offences " (which Act is adopted in Western Australia by the Ordinance passed in the twenty-ninth year of the reign of Her present Majesty and numbered five), as provides that no person shall be liable to be convicted of any of the misdemeanors mentioned in sections seventy-five to eighty-four of that Act (being frauds by agents, bankers, or factors) if he shall have first disclosed the same in any compulsory examination or deposition before any Court on the hearing of any matter in bank- ruptcy or insolvency shall cease to apply or have any force in Western Australia.

142. - I.) WHERE there is, in the opinion of the Court, ground power for court to

to believe that the bankrupt or any other person has been guilty of commit for trial.

any offence which is by this Act or any statute made a misdemeanor

in cases of bankruptcy, the Court may commit the bankrupt or such

other person for trial.

( 2 .) For the purpose of committing the bankrupt or such

other person for trial the Court shall have all the powers of a stipen- diary magistrate as to taking of depositions, binding over witnesses to appear, admitting the accused to bail, or otherwise.

Nothing in this sub-section shall be construed as derogating from the powers or jurisdiction of the Supreme Court.

143.      WHERE the Court orders the prosecution of any person

for any offence under " The Debtors Act, 1871," or Acts amending it, aAettt?,,Mtattest.°

or for any offence arising out of or connected with any bankruptcy

proceedings, it shall be the duty of the Attorney General to institute

and carry on the prosecution.

55° VICTORTIE, No. 32.

Bankruptcy Act, 1892.

144. WHERE a debtor has been guilty of any criminal offence

Criminal liability

he shall not be exempt from being proceeded against therefor by

after discharge or

composition.

reason that he has obtained his discharge or that a composition or

scheme of arrangement has been accepted or approved.

Repeal.

Itepealof enactments. hereby repealed as from the commencement of this Act to the 145. (1.) THE enactments described in the Third Schedule are

extent mentioned in the third column of that Schedule.

(2.) The repeal effected by this Act shall not affect

(a.) Anything done or suffered before the commencement of this Act under any enactment repealed by this Act;

nor

(b.) Any right or privilege acquired, or duty imposed, or liability or disqualification incurred, under any enact- ment so repealed ; nor

Any fine, forfeiture, or other punishment incurred or to

be incurred in respect of any offence committed or to

be committed against any enactment so repealed; nor

(d.) The institution or continuance of any proceeding or

other remedy, whether under any enactment so repealed,

or otherwise, for ascertaining any such liability or

disqualification, or enforcing or recovering any such

fine, forfeiture, or punishment, as aforesaid.

(3 .) Notwithstanding the repeal effected by this Act, the proceedings under any bankruptcy petition, liquidation by arrange- ment, or composition with creditors under " The Bankruptcy Act, 1871," pending at the commencement of this Act shall except so far as any provision of this Act is expressly applied to pending proceedings, continue, and all the provisions of "The Bankruptcy Act, 1871," shall, except as aforesaid, apply thereto, as if this Act had not passed.

146. AFTER the passing of this Act no composition or liquida-

Proceedings by ar- tion by arrangement under sections 108 and 109 of " The Bank-

raugementtor com-

position with oredi- ruptcy Act, 1871," shall be entered into or allowed without theo tors under Act of sanction of the Court; such sanction shall not be granted unless the 1871.

composition or liquidation appears to the Court to be reasonable and

calculated to benefit the general body of creditors.

In the name and on behalf of the Queen I hereby assent

to this Act.

ALEX. C. ONSLOW, Administrator.

55" VICTORI1E, No. 32.

Bankruptcy Act, 1892.

SCHEDULES.

The First Schedule. Section 14.

MEETINGS OF CREDITORS.

1.

The first meeting of creditors shall be summoned for a day not later than

fourteen days after the date of the receiving order, unless the Court for any special

reason deem it expedient that the meeting be summoned for a later day.

2.

The official receiver shall summon the meeting by giving not less than

seven days notice of the time and place thereof in the Government Gazette and in a

local paper.

3.

The official receiver shall also, as soon as practicable, send to each creditor mentioned in the debtor's statement of affairs, a notice of the time and place of the first meeting of creditors, together with a general and special form of proxy, and accompanied by a summary of the debtor's statement of affairs, including the causes of his failure, and any observations thereon which the official receiver may think fit to make ; but the proceedings at the first meeting shall not be invalidated by reason of any such notice, form or summary not having been sent or received before the meeting.

4.

The meeting shall be held at such place as is in the opinion of the official receiver most convenient for the majority of the creditors.

5.

The official receiver or the trustee may at any time summon a meeting of

creditors, and shall do so whenever so directed by the Court, or so requested in

writing by one-sixth in value of the creditors.

6.

Meetings subsequent to the first meeting shall be summoned by sending notice of the time and place thereof to each creditor at the address given in his proof, or if he has not proved, at the address given in the debtor's statement of affairs, or at such other address as may be known to the person summoning the meeting, together with a general and special form of proxy.

7.

The official receiver, or some person nominated by him, shall be the

chairman at the first meeting. The chairman at subsequent meetings shall be

such person as the meeting by resolution appoint.

8.

A person shall not be entitled to vote as a creditor at the first or any other meeting of creditors unless he has duly proved a debt provable in bank- ruptcy to be due to him from the debtor, and the proof has been duly lodged before the time appointed for the meeting.

9.

A creditor shall not vote at any such meeting in respect of anv unliquidated or contingent debt, or any debt the value of which is not ascertained.

10.    For the purpose of voting, a secured creditor shall, unless he surrenders

his security, state in his proof the particulars of his security, the date when it was given, and the value at which he assesses it, and shall be entitled to vote only in respect of the balance (if any) due to him, after deducting the value of his security. If he votes in respect of his whole debt he shall be deemed to have sur- rendered his security unless the Court on application is satisfied that the omission to value the security has arisen from inadvertence.

11.

A creditor shall not vote in respect of any debt on or secured by a current bill of exchange or promissory note held by him, unless he is willing to treat the liability to him thereon of every person who is liable thereon, anteced- ently to the debtor, and against whom a receiving order has not been made, as a security in his hands, and to estimate the value thereof, and for the purposes of voting, but not for the purposes of dividend, to deduct it from his proof.

55" VICTORIX, No. 32.

Bankruptcy Act, 1892.

12. It shall be competent to the trustee or to the official receiver, within twenty-eight days after a proof estimating the value of a security as aforesaid has been made use of in voting at any meeting, to require the creditor to give up the security for the benefit of the creditors generally on payment of the value so estimated, with an addition thereto of twenty per centum. Provided, that where a creditor has put a value on such security, he may, at any time before he has been required to give up such security as aforesaid, correct such valuation by a new proof, and deduct such new value from his debt, but in that case such addition of twenty per centum shall not be made if the trustee requires the security to be given up.

13. If a receiving order is made against one partner of a firm, any creditor to whom that partner is indebted jointly with the other partners of the firm, or any of them, may prove his debt for the purpose of voting at any meeting of creditors, and shall be entitled to vote thereat.

14. The chairman of a meeting shall have power to admit or reject a proof for the purpose of voting, but his decision shall be subject to appeal to the Court. If he is in doubt whether the proof of a creditor should be admitted or rejected he shall mark the proof as objected to and shall allow the creditor to vote, subject to the vote being declared invalid in the event of the objection being sustained.

Proxies. 15. A creditor may vote either in person or by proxy.

16. Every instrument of proxy shall be in the prescribed form, and shall be issued by the official receiver of the debtor's estate, or by some other official receiver, or, after the appointment of a trustee, by the trustee.

17. General and special forms of proxy shall be sent to the creditors, together with a notice summoning a meeting of creditors, and neither the name nor the description of the official receiver, or of any other person, shall be printed or inserted in the body of any instrument of proxy before it is so sent.

18. A creditor may give a special proxy to any person to vote at auy speci- fied meeting or adjournment thereof on all or any of the following matters :—

(a.) For or against any specific proposal for a composition or scheme of

arrangement :

(b.) For or against the appointment of any specified person as trustee at a specified rate of remuneration, or for or against the continuance in office of any specified person as trustee:

(c.) On all questions relating to any matter, other than those above

referred to arising at any specified meeting or adjournment thereof.

19. A creditor may give a general proxy to his manager or clerk, or any

other person in his regular employment. In such case the instrument of proxy

shall state the relation in which the person to act thereunder stands to the

creditor. 20. A proxy shall not be used unless it is deposited with the official receiver

or trustee before the meeting at which it is to be used.

21. Where it appears to the satisfaction of the Court that any undue solicita- tion or influence has been used by or on behalf of a trustee or receiver in obtaining proxies, or in procuring the trusteeship or receivership, except by the direction of a meeting of creditors, the Court shall have power, if it think fit, to order that no remuneration shall be allowed to the person by whom or on whose behalf such solicitation may have been exercised, notwithstanding any resolu- tion of the creditors to the contrary.

22. A creditor may appoint the official receiver of the debtor's estate to act in manner prescribed as his general or special proxy. Provided such official receiver is not himself the trustee.

55" VICTORI2E, No. 32.

Baidentptcy Act, 1892.

23.    A meeting of creditors may, by ordinary resolution, adjourn from time

to time, and from place to place.

A meeting shall not be competent to act for any purpose, except the election of a chairman, the proving of debts, and the adjournment of the meeting, unless there are present, or represented thereat, at least three creditors, or all the creditors if their number does not exceed three.

24.

25.    If within half an hour from the time appointed for the meeting a quorum

of creditors is not present or represented, the meeting shall be adjourned to such other day, time and place, as the chairman may appoint, not being less than seven or more than twenty-one days.

26.    The chairman of every meeting shall cause minutes of the proceedings at

the meeting to be drawn up, and fairly entered in a book kept for that purpose, and the minutes shall be signed by him or by the chairman of the next ensuing meeting.

27.    No person acting either under a general or special proxy shall vote in

favor of any resolution which would directly or indirectly place himself, his partner or employer, in a position to receive any remuneration out of the estate of the debtor otherwise than as a creditor rateably with the other creditors of the debtor. Provided that where any person holds special proxies to vote for the appointment of himself as trustee he may use the said proxies and vote accordingly.

The Second Schedule.

Section 37.

PROOF OF DEBTS.

Proof im Ordinary Cases.

1.    Every creditor shall prove his debt as soon as may be after the making of

a receiving order.

2.    A debt may be proved by delivering or sending through the post in a

prepaid letter to the official receiver, or, if a trustee has been appointed, to

the trustee, an affidavit verifying the debt.

3.

The affidavit may be made by the creditor himself, or by some person

authorised by or on behalf of the creditor. If made by a person so authorised it

shall state his authority and means of knowledge.

4.

The affidavit shall contain or refer to a statement of account shelving the particulars of the debt, and shall specify the vouchers, if any, by which the same can be substantiated. The official receiver or trustee may at any time call for the production of the vouchers.

5.    The affidavit shall state whether the creditor is or is not a secured

creditor.

6.     A creditor shall bear the cost of proving his debt, unless the Court other-

wise specially orders.

Every creditor who has lodged a proof shall be entitled to see and

examine the proofs of other creditors before the first meeting, and at all reasonable

times.

7.

A creditor proving his debt shall deduct therefrom all trade discounts, but he shall not be compelled to deduct any discount, not exceeding eight per centum on the net amount of his claim, which he may have agreed to allow for payment in cash.

8.

55° VICTORI2E, No. 32.

Baykruptcy Act, 1892.

Proof by seemed Creditors.

If a secured creditor realises his security, he may prove for the balance due to him, after deducting the net amount realised.

9.

If a secured creditor surrenders his security to the official receiver or trustee for the general benefit of the creditors, he may prove for his whole debt.

10.

11.    If a secured creditor does not either realise or surrender his security, he

shall, before ranking for dividend, state in his proof the particulars of his security, the date when it was given, and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed.

(a.) Where a security is so valued the trustee may at any time redeem it on payment to the creditor of the assessed value.

12.

(b.) If the trustee is dissatisfied with the value at which a security is assessed, he may require that the property comprised in any security so valued be offered for sale at such times and on such terms and conditions as may be agreed on between the creditor and the trustee, or as, in default of such agreement, the Court may direct. If the sale be by public auction the creditor, or the trustee on behalf of the estate, may bid or purchase.

Provided that the creditor may at any time, by notice in writing, require the trustee to elect whether he will or will not exercise his power of redeeming the security or requiring it to be realised, and if the trustee does not, within three months after receiving the notice, signify in writing to the creditor his election to exercise the power, he shall not be entitled to exercise it ; and the equity of redemption, or any other interest in the property comprised in the security which is vested in the trustee, shall vest in the creditor, and the amount of his debt shall be reduced by the amount at which the security has been valued.

Where a creditor has so valued his security, he may at any time amend the valuation and proof on showing to the satisfaction of the trustee, or the Court,

13.

that the valuation and proof were made bond fide on a mistaken estimate, or that

the security has diminished or increased in value since its previous valuation; but every such amendment shall be made at the cost of the creditor, and upon such terms as the Court shall order, unless the trustee shall allow the amendment with- out application to the Court.

Where a valuation has been amended in accordance with the foregoing rule, the creditor shall forthwith repay any surplus dividend which he may have received in excess of that to which he would have been entitled on the amended valuation, or, as the case may be, shall be entitled to be paid out of any money for the time being available for dividend, any dividend or share of dividend which he may have failed to receive by reason of the inaccuracy of the original valuation, before that money is made applicable to the payment of any future dividend, but he shall not be entitled to disturb the distribution of any dividend declared before the date of the amendment.

14.

If a creditor after having valued his security subsequently realises it, or if it is realised under the provisions of Rule 12, the net amount realised shall be substituted for the amount of any valuation previously made by the creditor, and shall be treated in all respects as an amended valuation made by the creditor.

15.

If a secured creditor does not comply with the foregoing rules he shall be excluded from all share in any dividend.

16.

17.    Subject to the provisions of Rule 12, a creditor shall in no case receive

more than Twenty shillings in the pound, and interest as provided by this Act.

55° VICTORIA;, No. 32.

Bankruptcy Act, 1892.

Proof in respect of distinct Contracts.

13. If a debtor was at the date of the receiving order liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contrac- tor, and also as member of a firm, the circumstance that the firms are in whole or in part composed of the same individuals, or that the sole contractor is also one of the joint contractors, shall not prevent proof in respect of the contracts, against the properties respectively liable on the contracts.

Periodical Payments.

19.    When any rent or other payment falls due at stated periods, and the

receiving order is made at any time other than one of those periods, the person entitled to the rent or payment may prove for a proportionate part thereof up to the date of the order as if the rent or payment grew due from day to day.

Interest.

20.    On any debt or sum certain, payable at a certain time or otherwise,

whereon interest is not reserved or agreed for, and which is overdue at the date of the receiving order and provable in bankruptcy, the creditor may prove for interest at a rate not exceeding eight per centum per annum to the date of the order from the time when the debt or sum was payable, if the debt or sum is payable by virtue of a written instrument at a certain time, and if payable other- wise, then from the time when a demand in writing has been made giving the debtor notice that interest will be claimed from the date of the demand until the time of payment.

Debt payable at a future time.

21.    A creditor may prove for a debt not payable when the debtor committed

an act of bankruptcy as if it were payable presently, and may receive dividends equally with the other creditors, deducting only thereont a rebate of interest at the rate of eight pounds per centum per annum computed from the declaration of a dividend to the time when the debt would have become payable, according to the terms on which it was contracted.

Admission or Rejection of Proofs.

22.     The trustee shall examine every proof and the grounds of the debt, and

in writing admit or reject it, in whole or in part, or require further evidence in support of it. If he rejects a proof he shall state in writing to the creditor the grounds of the rejection.

If the trustee thinks that a proof has been improperly admitted, the Court may, on the application of the trustee, after notice to the creditor who made the proof, expunge the proof or reduce its amount.

23.

24.    If a creditor is dissatisfied with the decision of the trustee in respect of

a proof, the Court may, on the application of the creditor, reverse or vary the

decision.

25.    The Court may also expunge or reduce a proof upon the application of a

creditor if the trustee declines to interfere in the matter, or, in the case of a

composition or scheme, upon the application of the debtor.

26.    For the purpose of any of his duties in relation to proofs, the trustee

may administer oaths and take affidavits.

27.     The official receiver, before the appointment of a trustee, shall have all

the powers of a trustee with respect to the examination, admission, and rejection of proofs, and any act or decision of his in relation thereto shall be subject to the like appeal.

550 ITICTORI2E, No. 32.

Bankruptcy Act; 1892.

Section 145. The Third Schedule.

ENACTMENTS REPEALED.

Session anti Chapter or Numb Title. Extent of Repeal.

24 & 25 Vict., c. 96 An Act to consolidate and In Section 85, the words :

(adopted by 29 Vict., amend the Statute law "or if he shall have first

No. 5).	of England and Ireland	"disclosed the same in
relating to Larceny and	"any compulsory exam-
other similar offences.	"illation or deposition "before any Court upon "the bearing of any "matter in bankruptcy " or insolvency."

34 Vict., No. 21	.	The Debtors Act, 1871.	Section 16.
34 Vict., No. 20	...	The Bankruptcy Act,	The whole.

1871.

By Authority: RICHARD PETHER, Government Printer, Perth.