THE NEW BANKRUPTCY LAW.

West Coast Times, Issue 619, 18 September 1867, Page 3

THE NEW BANKRUPTCY LAW.

The Bill which is now before the Assembly, and which will probably pass into law with some slight modifications, consists of 356 clauses, and is divided into twenty-two parts. The- following is a summary of its principal provisions abridged from the " Lyttelton Times."

The following, amongst others, are deemed acts of bankruptcy — failing to satisfy a judgment debt — leaving or remaining out of the colony with the intention of defeating or delaying creditors, or fraudulently transferring property — preferring one creditor to another — petitioning a British Court out of the colony. A creditor who seeks to avail himself of the provisions of this Act must serve the debtor with his account, and a notice that immediate payment is required, and must also file an affidavit in support of his claim. Upon this, the Court issues a summons requiring the debtor to attend, and should he fail to do so within fourteen days he is declared a bankrupt. If he appears* and admits the debt, he must satisfy the creditor within seven days ; but he may deny a part, or the whole, of the claim if he has a good defence on the merits. Any portion of the demand which is undisputed must be settled within fourteen days. In the case of a partnership, service of the notice on one of the partners is sufficient. The cost of these j proceedings are in the discretion of the Court.

A debtor who is in difficulties may file a declaration that he is unable to meet his engagements with his creditors. The provisional trustee then becomes receiver, and the Court has power to stay any other proceedings against the debtor. Within four days after the filing of this declaration a statement of assets and liabilities must be deposited, and every creditor may have access to it. Proceedings to obtain an adjudication in bankruptcy must be taken within twenty-four days, if by a creditor, or I within twenty-six days, if by the debtor, and must be by petition. The petition for adjudication may be filed in the Supreme or District Court, and may be transferred from one court to another for a sufficient reason. The claims " of petitioning creditors must amount to JuoO in the case of one person or firm ; to L7O when there are two creditors, and to LI 00 where three or more are concerned. A creditor may petition in respect of a sum payable at a future time, and a petition may be against one or more partners. A creditor's petition may be verified by affidadit, and the Court may require evidence of the debt and of the act of bankruptcy before adjudging the debtor bankrupt. If a creditor files a petition maliciously the Court may order satisfaction to be made, A petitioning creditor who compounds or takes security so that he may receive more than others is liable to forfeit his whole debt, and to repay the money already received. A person may consent to being declared a bankrupt, or may show cause to the Court against the adjudication. The order of adjudication is to operate as protection, and must appoint a day for the first meeting of creditors. Notices of the filing of the declaration of insolvency, of the adjudication, and of meetings of creditors have to be inserted in the " Gazette." The registrar is reqaired to attend the first meeting, and the creditors to choose a trustee, who need not be a creditor, and to appoint two creditors as supervisor of the estate. The trustee or the supervisors may resign or be removed, and any vacancies may be filled up at : a meeting of creditors.

A creditor who holds security is in the same position as a common creditor for the balance of his claim after the realisation of his security. Proof of debts may be received at any meeting of creditors, and no creditor can vote either himself or by proxy until he has proved his claim. Three creditors must be present to form a quorum, even if there be only three creditors on the estate, and all questions put to the meeting are to be determined by a majority in value. After the first meeting has been held the Court will appoint a day for the final hearing, which [is to be not more than sixty days afterwards, and before which the bankrupt is to file a full statement of his accounts, which is to be open to inspection by all his creditors. The trustee has to file a report on the state of the bankrupt's affairs, after having examined into the accounts and compared with the books. After passing the final examination the bankrupt may be discharged, but his application may be opposed by the trustee or by any creditor who has proved. It is in the .discretion of the Court to suspend the order from taking effect for a period not exceeding three years if it appears to the satisfaction of the Court — " That the bankrupt has been guilty of any of the acts by this Act made misdemeanors, but has not been convicted thereof; that he has within two months next before adjudication fraudulently, in contemplation of .bankruptcy, and not under pressure from any of his creditors, Avith intent to diminish the sum to be divided among his creditors, or to give an undue preference to any of his creditor's, paid or satisfied any of his creditors, wholly or in part, or made away, mortgaged, or charged any part of his property; that he has within six mouths next before adjudication put any creditor to unnecessary expense by vexatious or frivolous defence or delay to or in any proceeding for the recovery of any debt or demand provable under his bankruptcy, or is indebted in costs incurred in any such proceeding vexatiously or frivolously defended or delayed by him ; that, having been to his knowledge or belief unable to meet his

engagements with his creditors, he without reasonable excuse failed to file, or delayed the filing of a declaration of insolvency ; that he, being a trader, has during his trading, with intent to conceal the state of his affairs, omitted to keep proper books of account, or kept his books of account imperfectly; that any debt or liability of the bankrupt subsisting at the time of adjudication, or paid or discharged within three months next before adjudication was contracted or incurred by him without any reasonable expectation of his being able to pay or discharge it, or by through any fraud, or false pretence, or breach of trust committed by him, or that forbearance of any such debt or liability had been obtained by the bankrupt by fraud or false pretence, or that any such debt or liability had been contracted or incurred by him by reason of any prosecution or proceeding, wherein he was found guilty of any offence, or of a breach of the revenue laws, or by reason of any action of proceeding for libel, slander, assault, battery, adultery, seduction, breach of promise of marriage, malicious arrest, malicious injury, or the malicious filing or prosecution of a petition for adjudication of bankruptcy,"

Tlie finances of Tasmania appear at last to have been placed on a more satisfactory footing than has been the case for some years past. During tho last four years the revenue had fallen short of the expenditure by L 103,235 in the aggregate, but the present Ministry has been able to pay of the arrears they Ibuud due on entering office, and to extinguish a debt of L 13,000 to the banks. Mr Chapman estimated his revenue for the year at L 191,242, and his expenditure at L 199,621, and expressed a hope to Parliament that he would be able to carry forward a balance of L7OOO to the following year. The calculations for 1868 were almost identical with those for 1867.

The following shocking story is published in the Eockhampton " Bulletin" :—": — " About three weeks ago two men, named Jack Morris and Charley Considine, left Eockhampton in the Mying Cloud, a ketch of small tonnage, for the Broadsorind diggings, and before reaching Shoal Water Bay, anchored under Cape Townsend, about half a mile from the shore. During the forenoon they were visited by two blackfellows from the shore and treated them hospitably, giving them some tucker and one or two articles of clothing, being under the impression that the darkies intended to bring them some fish. During the afternoon Morris and Considine turned into their bunks for a sleep. A pieco of canvas hung over the bunk in which Morris slept, and he was awakened by hearing Considine groan. He lifted up the canvas and saw a blackfellow leaning half-way across him ancl stab him above the eyes with a knife — one of the weapons with which they delight in hacking to pieces the members of hostile tribes. Morris jumped up and received a severe blow on the head from a nullah nullah from a second blackfellow. He rushed at one fellow, but the darkey escaped him, and leaped into j tho water. There were two' others also on board, but they beat a hasty retreat before tlie pluck of old Jack, who caught up a torna-, hawk, and aimed a blow at one fellow's head in the water ; the nigger ducked and the weapon went overboard. Morris then had hold of his gun, but could not find the caps, because of the blinding stream of blood that came from the wound on his head. He picked up pieces of firewood .and pieces of iron lying upon the deck, and threw them after the blackfellows, but without effect; they swam to a cauoo manned by a lad, and lying in wait some distance from the ketch. It appeai'3 ti^afc four of them boarded the boat, and Considine, before awakening Morris, had a piece of his scalp sliced off by the knife of ono of the scoundrels ; an attempt had also beeu made to cut his throat, but the attempt was foiled by Considine having luckily a thick woollen comforter wrapped in several rolls around his neck. Morris nursed Considine for several days, and then proceeded on their trip. On the way back they called in at the 'same spot to pay out a compliment to their .^visitors, but could not get within 'talking' jran'ge. ' T.he boat reached- Eockhampton on Sa*turday> and Considiue is still in a weak state." ** J/i .,