NEW BANKRUPTCY RULES.

Dunstan Times, Issue 1134, 25 January 1884, Page 3

NEW BANKRUPTCY RULES.

By the 28th section of “ The Bankruptcy Act 1883 ” it is provided that the Go. vernor-iu-Oounoil, with the concurrence of the Supreme Court Judges, may flame ruies regulating the practice and procedure generally under the Act. Accordingly his Excellency, with the advice an I consent of the Executive Council, and with the eoncucreme of the Chief Justice and Mr Justice Richmond, has duly prescribed rules under the Act, which rules appear in last Gazette, are dated the 2nd instant, and are now in full force. As they are fiO in mimhe. and have uo fewer than 15 schedules appended, we can only attempt to give a general idea of their chief previse n*. It is ruled that the summons to show cause why an adjudication of bankruptcy should be made, and a copy of the creditors’ petition on which such summons is founded, may he served upon the debtor by delivering them at his usual or last known place of abode or business with some inmate appearing to he of the age of 14 year, at hj ast, or by posting such notice addressed to the bankrupt at either of such places. Nonce of the order of Court adjudging the deb.or a bankrupt is to he served by the Assignee upon the bankrupt personally when praotica'de ; but, if the bankrupt has left the district, or cannot cp -venieutly lie found, it is to he sufficient to post such notice to his last k”own place of abode or business. There are provisions for the transfer of proceedings from a local court to the aupeiior court when the judge of the former is of opinion that such transfer is des rable, or when the credi'ors by a special resolution arrive at a like decision. It the debt- r resides within 20 miles of the office of the Assignee for the diatiicfc in which the debtor resides or carries on business, their the first meeting of creditors is to be held at the Assignee’s office, or at such convenient place near thereto as ho shall appoint. Where the debtor resides more than twenty miles ‘rorn the Assig en’s office, then the meeting is to beat such other comemeot place as the Assignee may appoint. The Assignee is also to name the places at which other genera! meetings of creditors is to be held. Notice of meeting may be served on the debtor in the same w ay as adjudications of bankruptcy. In the absence of the Official Assignee for half an hourhfter the time appointed for a meeting, the creditors may appoint one of their number to act as chairm in,and meit ngs may he ajourned as convenient. Three creditors to constitute a quorum at such meetings, to be present either personalty or by separate individual proxies. If there are fewer than three creditors, then all must he present to constitute a valid meeting. Proxies must he produced to the chairman, and no bankrupt is competent to hold or vote upon a proxy on behalf of any creditor. Upon application made by any person interested within two months after the date of adjudication, a secured creditor is required, mi payment of the value of his security as estimated in his original or amended proof, to give up his security to be dealt with tor the benefit of the creditors as part of the property of the bankrupt. Proofs of debt may bo rejected by the Official Assignee, against n hose derision an appeal may he made. If the assig .ee should have reason to believe that a proof has been imoroperlv admitted, he may apply to the (J >n.-t to have it expunged or amended, due notice of such application b-ing given to the creditor inteieste.l The Assignee is to aovert'se the closing of any bank-nptcy ; is to keep accounts sho ring all .ec -ipt-. and expen.lit,urn for each estate ; is to produce to the auditors vouchers for everv disbursem nt. exceeding L), and at each am lit, is to deliver to the auditor* the bank passbook and all information which they may require. Th i debtor or any creditor is to Oe allowed to inspect all books an t accounts con ected with the estate on payment of la fee for each inspection. If any persons who have he n appointed aupei visor* do not forward to the Assignee within a week 'heir consent to act, their appointment is to lipse, and a fiesh appointment is to he made by the ere litora. There are va ion- regulations as to juries and wime-se*. analogous to those in Supreme Court prooednie. The Court may limit the nuriiher of witnesses and allow expenses at discretion. The fee of Court on compositions is to be 1 per cent, on the amount—Ls being the minimum fee; costa may be taxed by the Registrar of Clerk of Court. A charge of 4d per folio is to he made for copies of sumrao-ie-i, proceedinga, &c. ; 1s to he the minimum. In case of an appeal from the decision of a judge or court, a depodt of not less than L.IO or more than L4O, as the Court may direct, is to be made by the appellant. All possible expedition is to be used in presenting and deciding such appealr. The above are the principal provisions contained in tiie new regulations. All other matters relating to procedure are deemed to have been provided for in the Act itself. The new and important legislation of la»t session relative to bankruptcy is now fairly launched on its career of trial, and its operations will he watched with the keenest interest by the public generally, and by the mercantile community in particular. The wide changes made hy the Act of last session were, with almost unanimous concurrence, declared neci ssary. It now remains t" he shown how these reforms, so excellent in theory, will work out in every-day practice. -Even ing Post.