THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2679, 18 September 1871, Page 2

THE INSOLVENCY ACT.

(Continued.) Part 8. Relates to the examination of the insolvent and witnesses, the close of the insolvency and release of the trustees. It comprises clauses 154 to 161, both inclusive, and gives power to the Court to summon the insolvent, or his wife, or any person known or suspected of having any part of the insolvent’s estate iu

possession. Refusal to answer questions or surrender papers or books is punishable with imprisonment -without bail until submission to give evidence or deliver up possession. Prevarication or evasion is punishable with imprisonment not exceeding one month. Witnesses are entitled to be paid for attendance to give evidence, as in any Civil suit in the Supreme Court. Trustees, after reporting to the Court that the estate has been realised, may be released at a meeting o. creditors, when an order of the Court renders them free from future liability on account of the estate. Part 9. Prescribes the mode how and the conditions under which certificates may be grant ed to or withheld from insolvents, and the efleet of refusal The insolvent will be requu-ed to advertise his intention to apply for his discharge in the JS r e>o Zealand Gazette not less nor more than 30 days beforehand, and to give 20 days’ notice in writing to the assignee or trustee, who may be heard’in opposition. Whether the trustee or any creditor oppose or not the Court may consider the depositions and evidence of the insolvent and act accordingly. Ihe certificate is not to be granted unless a dividend of not less than ten shillings in the pound has been or will be paid, or might have been paid, except through fraud or negligence of the trustee; exc.pt a special resolution of the creditors has been passed to the effect that the failure to pay ten shillings has arisen from circumstances for which the insolvent is not responsible, and that they desire a discharge may be granted. Ihe Court may, however, refuse to grant a certificate in cither case if the insolvent has b- en guilty of any felony or misdemeanour under the Act, or if although he has not been tried, the Court is of opmion he has been guilty of felony, and in addition the Court may order the insolvent to be imprisoned for not exceeding one year. . By the Ki4 section the Court may refuse or -uapend the certificate for any period considered just for any of the following offences : . 1 Bor not keeping reasonable accounts of receipts and payments. 2. For unsatisfied iudmnents in actions for assault, breacu of promise, seduction, malicious injury or damages in any divorce suit. 3. For putting a creditor to expenses by any frivolous or ine | nit able claim or defence in any law suit. 4 For wilful delay in sequestrating his estate so as to give preference to one or more creditors. 5 For having spent money in gambling, extravagance or vice. 6. For not complying with the lawful commands of his assignee or. trustee._ 7. For carrying on trftclc by nic&ns of fictitious - S. 1? 02 not fully disclosing his property, or if be lias made default in giving up property to his creditors. 9 For wilful violation of the provisions of the Act. 10. For having contracted debts without reasonable expectation of ability to pay them. 1L For unlawfully making away his property. 12. For appropriating the proceeds of property entrusted to him for sale as factor or broker. 13. For giving a creditor a fraudulent preference, ’By Clause 165.—An application for a certificate must be made within twelvemonths after sequestration of the estate The remaining clauses in this part prescribe the form and effect of the certificate, and specify certain debts from which an insolvent is not to be released by its provisions. These are merely debts due to the Crown. 170. If the application for a certificate is opposed, the insolvent may bo required to find, bail to attend the Court for judgment. 171. If the insolvent does not apply for his certificate within six months after sequestration on application of a creditor or trustee he may he compelled to appear. The Statcs of an Undischarged Insolvent, The following is a summary of the consequences to an insolvent of not obtaining his discharge 1. For three years no portion of a debt proved can be enforced, and if during that time he has paid such additional sum to his creditors as was necessary to make np ten shillings in the pound, he may claim his certificate. 2. If at the end of three ypars he has not obtained his certiliqase, any balance of a debt, without interest, shall he deemed a subsisting debt, and sub ject to the rights of persons who have become Creditors since the insolvency, and may be enforced with the sanction qf the Court having jurisdiction. . ” 173 to prescribes the pqwers by which supb clqipis may be enforced.