THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2670, 7 September 1871, Page 2

THE INSOLVENCY ACT.

( Continual.) Part 5, Section 4'.). Compulsory Sequestrati n. One important proviso in tbe definition of what shall constitute an act of insolvency was .ommitted last evening under the 9th head, namely—that a debtor shall file his petition within 48 hours of his being requested to do so at a meeting of creditors. The omission to do so within that period is to bo deemed an act of insolvency. No person shall be adjudged an insolvent on any of the grounds mentioned, unless tbe act of insolvency occurred within six months before presenting the petition ; the debt of the petitioning creditor must be a liquidated sum due, or a debt on a negotiable instrument. It must not be a secured debt unless the petitioning creditor state in bis petition, that after adjudication of sequestration he is willing to give up the security for the benefit of the creditors, or, unless be is willing to value his security; wken lie may be admitted a petitioning creditor to the extent of the balance due to him after deducting the estimated value. In that ease on application by the trustee, he must give up the seeurity for the benefit of the creditors on receiving tbe estimated value. No person having executed a deed of arrangement under the repealed A cts before this Act comin« into operation or which is completely executed within one month afterwards, shall be deemed to have committed an act of insolvency. Debtor's Summons. Section 49. The Court may grant a debtor’s summons on a creditor proving that a debt

of sufficient amount is due to him from the person sought to be summoned, and that af tor using reasonable efforts to obtain payment he has failed. The summons must state that unless the cteht l>e satisfied, the creditor may present a petition praying that his estate may be sequestrated. A debtor served with a summons may apply to the Court to have it dismissed, on the ground that he is not indebted to the summonsing creditor, or not indebted to such au amount as will justify presenting a petition for sequestration, and the Court may dismiss the summons if satisfied with the* allegations of the debtor, or on his giving security to the satisfaction of the Court for payment of the claim. PROCEEDINGS ON PETITION. Section 50. Any judge of the Court upon petition for sequestration of an estate for the benefit of the creditors may, by order nisi, placj the estate of the insolvent in the hands of one of the assignees until the order is made absolute or is discharged. The order is required to state the time when cause may bo shewn against its being made absolute, and the Court is empowered to enlarge the order when necessary. Section 51. The petitioning creditor is required to prosecute all the proceedings at his own cost until the close of the meeting for the election of trustee, when tho costa, after being taxed, are to bo repaid out of the estate' Section 52 provides that a creditor of a firm ra,ay present a petition against one or all of the partners to have the estate sequestrated, provided the partner has committed au act of insolvency, tending to defeat the creditors or delay payment of debts due ; and the order for sequestration is made valid, although not including all the partners in the firm. Section 33.—Where tho administrator of the estate of a deceased person lias committed an act of insolvency, the creditors of the estate may petition to have it placed under sequestration as insolvent. Section 51 and 55 relate to the order nisi, which must state tho amount of the petitioning creditor’s debt and the act of insolvency committed. It must be served personally on the responding unless he is proved to bo keeping out of the way or has left the Co’ony, when the Judge may order that delivering the office copy of an order to an adult person at the - last-known place of abode or business premises, or, should it bo refused, by affixing it upon some conspicuous place on the premises, shall be deemed good service. Section 56. —If a respondent intends to oppose the {order being made absolute, ho must give notice of his intention within seven days after the service of the order, stating the ground on which he will oppose it. Section 57. Should it appear that the order, nisi, has not been duly served, the Court may adjourn the hearing. Section 58. If no opposition, the order, niiti, is to be made absolute, excepting that if on hearing the Court is satisfied the respondent has reason for shewing cause, permission may bo granted to give notice of opposition. Section 59. If, upon hearing, by the Court, the petition appears to be unfounded, the respondent may prove damage, and the Court may award him, not more than L 250, recoverable by summary process. Section 60. If an order, nisi, has been made and the debt of the petioning creditor be not sufficient to entitle him to obtain it or if it has been discharged or allowed to lapse by the petitioning creditor,, it may be revived on the petition of another creditor. Section 61. Payment of money by a debtor to a petitioning creditor after is*ue of an order, nisi, or giving him security for lr< debt constitutes a new act of insolvency, and the person receiving it is to give up possession of, or pay the value for the benefit of the creditors. Section 02. Relates to the manner in which petitions shall be presented to the Court. Part 6.—Administration of Estate. Section 63. Empowers the Governor to appoint assignees of insolvent estates. Section 64 provides that notice of seques tration must be given in the Gazette, and of a general meeting of creditors, who may (Ist) appoint one or two persons, not necessarily creditors, as trustee®, fix the remuneration (if any), or leave the appointment to a committee of inspection. 2nd, Tbey may determine the amount of security to ho given by the trustee. 3rd, They may appoint a com’ mittee of inspection, not more than five in number, from tho creditors qualified to vote at a general meeting of creditors. 4th, They may direct the trustee as to the administration of the property, and he is required to conform to those directions. Section 65 fixes the remuneration to assignees. In case of election of a trustee the assignee is to bo allowed, in addition to costs and charges of Court, Lo in estates under L2OO in value, and LlO 'when the assets exceed L2OO ; but if no trustee is appointed, the assignee shall receive such remuneration as a creditors’ meeting may decide, not exceeding five per cent, on the gross assets of the estate. Section 66.—0n acceptance of office by a trustee, on security being given, tho Judge may confirm the appointment. Section 67. —Notice of the appointment is to be gazetted. Section 68.-—The Court is empowered to remove assignees or trustees for insolvency, absence from the Colony, qy misconduct, and may appoint a new assignee. Section 69 enables trustees or assignees to resign, and empowers the Court to make arrangements for the preservation and ad. ministration of the estate.