Hawke's Bay Times. Nullius addictus jurare in verba magistri. TUESDAY, SEPTEMBER 5, 1871.

Hawke's Bay Times, Volume 18, Issue 1112, 5 September 1871, Page 2

Hawke's Bay Times. Nullius addictus jurare in verba magistri. TUESDAY, SEPTEMBER 5, 1871.

A new Insolvency Bill has been introduced by the Government. Its second reading was proposed in the Legislative Council on Tuesday, August 29, by the hon. Mr Sewell, Minister of Justice. The hon. gentleman gave an explanation of the alterations proposed to be made in the existing law of insolvency, which he described as " not satisfactory to the country/' He considered the introduction of a. new Bill prefersble to adding another Amendment Bill to the statute book, and the Bill proposed was much more concise than the existing Act. The old Act contained 348 clauses, but the proposed one only 180. The Government had adopted the Victorian Act as the basis of the proposed measure, and that Act was framed from one of the Imperial Legislature pa.-sed in 1869. Its main features consisted in provisions for the constitution of Bankruptcy Courts in place of the jurisdiction of the Supreme or District Courts now in force. The alternative jurisdiction would be abolished, and .where District Courts existed such courts would have jurisdiction ; where they did not exist, commissioners' dis tricts would be established; where neither of these existed, the Supreme Court would exercise its ordinary jurisdiction. The reasons for not forming special courts of bankruptcy, as in England, were the expense attendant pn it, and also some special difficulties arising out of the constitution of the Polony. Some alterations would be made in the law both as regards voluntary and compulsory sequestration. Jn the former case, on the presentation pf a petitipn by a (debtor, the Court ppuld immediately order a sequestration, while, under the old law, ten days must elapse before a creditor could take proceedings on a voluntary petition. In £he latter case—coinpulsory seque&tratjpp—it was intended to appoint as flfficial assignees persons who would undertake the ad interim assignation of bankrupts' estates, instead of the pre gent system of administration by a provisional trustee, whose administration was generally very inefficient and unsatisfactory. Appther alteration was in relation to the close of a bankruptcy.

At present a bankrupt could obtain a certificate on certain conditions, but it was proposed that as another condition he must pay 10s in the pound, .except under circumstances where he might be relieved from it, the creditors being the judges. Also, in the case of undischarged debtors, at present the after accrued property of an uncertificated bankrupt who had not paid 10s in the pound might bo made available for the payment of his debts, but the process was so troublesome that the creditors seldom availed themselves of it. It was proposed instead to allow the debtors three years of unmolestation, after which any individual creditor who had not received 10* in the pound might deal with his debt as "a judgment debt." With regard to deeds of arrangement, instead of the present .system when a debtor effected such a deed on the assent of a certain number of his creditors, it was proposed that such deeds should be effected by resolution at meetings of creditors—not as in England by a three-fourths majority—but by a simple majority of the whole body of creditors The Bill was, after some discussion, read a second time and referred to a select committee, whose report was to be brought up ten days thereafter.