THE BANKRUPCY LAWS.

South Canterbury Times, Issue 2290, 20 July 1880, Page 3

THE BANKRUPCY LAWS.

Eetlies or the Judges. The replies from the Judges to the Committee on Bankruptcy are shortly as follows.—The questions put were (I) Oil whose application a debtor should he made bankrupt ? (2) by whom the bankrupt estate should be administered ? (3) the circumstances which should disentitle a bankrupt to Ms discharge? (4) whether any, and if so, what alterations should be made in the law relating to bills of sale ? (5) whether the right of distress for rent should not be modified ? (G) by whom a bankrupt shall bo prosecuted, and whether any fund ought to be created out of which costs should be paid P (7) what claim should be treated as preferential ? (8) whether the present mode of arrangement by deed should be conlinued P (Dj whether every debtor should not obtain his discharge after open hearing in court P The Chief Justice replies—To X"o. 1 The debtor or creditor. To Xo. 2: The official assignee or trustee elected by the creditor with the consent of the Court. To Xo 3:1 would provide as in section 120 of the Act of 1807, with additional defined causes, such as extravagant living or reckless trading. To Xos. 4,5, G, 7, no replies arc given. To Xo. S : The deed not to affect discharge till after open hearing. Justice Johnson replies—To Xo. 1 ; Creditor or debtor. To X r o. 2•• Ordinarily creditors through chosen representatives under some official supervision, responsibility and cost not to bo primarily cast upon the Government or officers. To Xo. 3: Xo discharge of the debts fraudulently contracted by reckless trading, fraudulent preferences given, concealment of property or frustration of the efforts of administrators of estates. To Xo. 1: Xo suggestion. To X T o. o : Ho not understand the question as telegraphed. To X T o. 0 : I think it should be competent for any creditor (say to a fixed amount) at his own expense, of (he whole body or majority of the creditors out of the estate to prosecute—in the last case by the leave of the Judge. In absence of cither of such prosecutions it should be and indeed that is and must be” the duty of the State to prosecute in cases of gross fraud or crime, the costs to be paid by the State as in other crimes, so that justice should not fail through creditors’ fears of being put to expense. To Xo. 7: Xo suggestion. To Xo. 8 : Xo experience of practical objections. To Xo. P : To insist on hearing in open Court is unnecessary, as it entails trouble, expense, and waste of lime.

Mr Justice J’iclunoiul—-To Nos. 1,2, and o : No substantial alterations are required. To No. 4 : Bills of! sale for antecedent debts, with or without further advance, should bo void against a trustee if made within six months of bankruptcy, unless pursuant to prior agreement in writing. To No. o : Should be abolished, and a summary remedy given by action. To. No. ti : By the Crown, after committal for trial. To No. 7: I can suggest no alteration. To No. 8 : Composition should be secured by the acceptance of the insolvent or guarantor/;, or winding up under inspectorship, og chuio hominiiii , on trust to pay 20s or a dividend. No arrangement to be made valid until confirmed by a.second meeting. Mr Justice AVilliams thinks it undesirable to sweep away the existing law. Ho advises a close following of the fhiglish law, although such law is unsuccessful. To No. 1 ; No change. To No. 2 : It is difficult to say which of the various modes proposed, as all are unsatisfactory. To No. o : Leave the matter entirely to (he creditors. A majority in number of creditors to be essential before discharge is granted. The present system is demoralising, and encourages rascality, whilst itdiscourages honest tradesmen, and causes immense, loss to the community. To Nos. 4,5, G, and 7, I have no decided opinion. To No. 8 ; On the whole, would abolish the system of arrangement by deed. Judge Ward answers—To No. 1 ; The Act of 187 G is sufficient. To No. 2 : More stringent rules binding trustees. To No. 3; Sec clause 120 of the Act of 18(17. To No 4 : All bills of sale should be registered. To No. 5 : If rent is paj'ablc quarterly monthly or weekly, a landlord should uot be allowed the right of distress to more than three payments of rent due. To No. G : Offenders should be prosecuted out of the fund as ordinary offenders. To No. 7: Kates and taxes additional to those in clause 1 of the act of 1870. No. 8; Clauses 125 and 126 of the English Act of 18G9. To No. 9 ; Undoubtedly, if lie deserves it. No discharges should bo granted in Chambers or in the absence of a Judge. The District Courts’ powers should bo enlarged. As to making orders, I call attention to clause 11 of the English Bankruptcy Act as a great improvement on our laws.