THE NEW BANKRUPTCY ACT.

Manawatu Standard, Volume IV, Issue 38, 12 January 1884, Page 2

THE NEW BANKRUPTCY ACT.

(From Pastoral and Agricultural News.) An important summary jurisdiction is given to the Court which it heretofore has not possessed, and that is (he power, either on the public examination or on the application • for discharge, of imprisoning the bankrupt for any term not exceeding twelve months with hard labor, if it should appear that he had been carrying on his trade or business by mean of fictitious capital,, or when necontracted any of his debts had on reasonable or probable' ground of ex* pectation pXbeing^aJileL.ta.pay. Jhera, or with intent to conceal the true state of his affairs had wilfully omitted to keep proper books of accounts, or put any of his creditors to unnecessary exper.se m frivolously or vexatiously defending any action, or if m the opinion 61 the Court, bankruptcy is attributable to rash and hazardous speculations or unjustifiable extravagance m living The provisions of ■« The Fraudulent Debtors Act 1868" are incorporated m glob& x m the new Bankruptcy Act, which is certainly more convenient than having them by a separate Act. The assignee is strictly required to keep proper books of accounts showing a debtor add creditor account of each estate, and which are to be audited at least four times a year by the official auditor appointed for the purpose. If therassigriee refuses or neglects to furnish any vouchers or information, or give due facilities of inspection to the auditor ho shall be deemed guilty of contempt of Court. After the final dividend is declared the. assignee is to file a balancesheet of the estate, notice of which he is to advertise. Having done all this, he hag th@ to. %pglyj.fdKhii own discharge, which "when granted^ relieves him of all liability as to any default m the administration of the estate, or otherwise as to his conduct as assignee. There are provisions as to accepting a composition from the bankrupt or some person on his behalf similar to those contained m the existing Jaw as to change from J&ankruptcy tot'--" arrangement byjfeed^but there! seems to be no, i>rovi3ions.*;±pi m ; ,gi«W, those voluntary deeds of assignment by which such comparative facility was given to certain classes 'Sniffle off their "little difficulties;"- iEmally the scale of co3te.is fixed by> the.-Act, ■ ? wiuflhf are to be paid-only on tbebrderof a Judge, "bankrupts A are cautioned against, paying any money to their solicitors for costs, except for 1 fees andlulveritisements, arid any money so paid is made recoverable by the assignee m any court m a summary manner. ' ' ' :.. Our summary is now at a close, onr observations had flecessarily to be brief and confined to the seveiai new features and salutary" provisions of thenew Act, bujb we may da'anbther^ccasions revert to its details. l O^n the whole, we think our : legislafifiri itfust be credited with a shrewd aDpr^ciation,jOt. the special wants of the colony m this direction, 1 which ultimately will establish a greater "degree of con fidence f between those * who have mutuatbusinegs connections, and place credit m,- a more satisfactory position than heretofore. : \