with whom such liability has been contracted shall be admitted to claim for such sum as the Court shall think fit: and after the contingency shall have happened, and the demand in respect of such liability shall have been ascertained, he shall be admitted to prove such demand, and receive dividends with the other creditors, and, so far as practicable, as if the contingency had happened and the demand had been ascertained before the filing of such petition, but not disturbing former dividends, provided such person had not, at the time such liability was contracted, notice of any act of Bankruptcy by such Bankrupt committed; provided also, that where any such claim shall not have, either in whole or in part, been converted into a proof within six months after the filing of such petition, it may, upon the application of the Assignees at any time after the expiration of such time, and if the Court shall think fit, be expunged either in whole or in part from the proceedings. (B. L. C. A. 1849, sec. 178.) PART IV. (PROOF OF DEBTS.) of agent intrust been pledged by prove for amount the goods be un Vict. c. 39. In case of the Bankruptcy of any agent intrust- On Bankruptcy ed with the possession of goods within the mean- ed with goods, ing of an Act passed in the Parliament holden in but which have the fifth and sixth years of the reign of Her pre- him, owner may sent Majesty, entituled "An Act to amend the paid to redeem, Law relating to Advances bonâ fide made to Agents or for value if intrusted with Goods," the owner of any goods so redeemed, 5 & 6 intrusted to such agent, and which shall have been redeemed by such owner in manner provided by the said Act after having been pledged by such agent, shall, in respect of the sum paid by him on account of such agent for such redemption, be held to have paid such sum for the use of such agent before his Bankruptcy, or in case such goods shall not be so redeemed the owner shall be deemed a creditor of such agent for the value of the goods so pledged at the time of the pledge, and shall, if he shall think fit, be entitled in either of such cases to prove for or set off the sums so paid, or the value of such goods, as the case may be. B. L. C. A. 1849, sec. 179.) PART IV. (PROOF OF DEBTS.) debts when pro not reserved or agreed for. Upon all debts or sums certain, payable at a certain time or otherwise, whereupon interest is Interest upon not reserved or agreed for, and which shall be veable, though overdue on the filing of the petition for adjudication of Bankruptcy and proveable thereunder, the creditor shall be entitled to prove for interest, to be calculated, at a rate not execeeding four pounds per centum per annum, up to the date of the filing of such petition, from the time when such debts or sums certain were payable, if such debts or sums be payable by virtue of some written instrument at a certain time, or if payable otherwise, then from the time when demand of payment shall have been made in writing, so as such demand shall give notice to the debtor that interest will be claimed from the date of such demand until the time of payment. (B. L. C. A. 1849, sec. 180.) Plaintiff or de- If any plaintiff in any action at law or suit in fendant obtain- equity, or petitioner in Bankruptcy or lunacy, entitled to prove shall have obtained any judgment, decree, or order ing judgment,&c for costs, &c. Proving debt to be an election not to proceed against the Bankrupt by action. against any person who shall thereafter become Bankrupt for any debt or demand in respect of which such plaintiff or petitioner shall prove under the Bankruptcy, such plaintiff or petitioner shall also be entitled to prove for the costs which he shall have incurred in obtaining the same, although such costs shall not have been taxed at the time of the Bankruptcy; and if any defendant shall have obtained any judgment, decree, or order in any such action or suit, or in the matter of any such petition, against any person who shall thereafter become Bankrupt, such defendant shall be entitled to prove for the costs which he shall have incurred in obtaining the same, although such costs shall not have been taxed at the time of the Bankruptcy. (B. L. C. A. 1849, sec. 181.) No creditor who has brought any action or instituted any suit against any Bankrupt in respect of a demand prior to the Bankruptcy, or which might have been proved as a debt under the Bankruptcy, shall prove a debt under such Bankruptcy, or have PART IV. DEBTS.) any claim entered upon the proceedings, without (PROGE OF relinquishing such action or suit, and the proving or claiming a debt under a petition for adjudication of Bankruptcy by any creditor shall be deemed an election by such creditor to take the benefit of such petition with respect to the debt so proved or claimed; provided that such creditor shall not be liable to the payment to such Bankrupt or his Assignees of the costs of such action or suit so relinquished by him, and that where any such creditor shall have brought any action or suit against such Bankrupt jointly with any other person or persons, his relinquishing such action or suit against the Bankrupt shall not affect such action or suit against such other person or persons; provided also, that any creditor who shall have so proved or claimed, if the petition for adjudication be afterwards superseded or dismissed, may proceed in the action as if he had not so proved or claimed, and in bailable actions shall be at liberty, under the authority of a Judge's Order for that purpose obtained in like manner as may now by law be done, to arrest the defendant de novo, if he has not put in bail below or perfected bail above, or if the defendant has put in or perfected such bail to have recourse against such bail, by requiring the bail below to put in and perfect bail above within the first eight days in term after notice in the London Gazette of the first superseding or dismissing such petition, and by suing the bail upon their recognizance, if the condition thereof is broken. (B. L. C. A. 1849, sec. 182.) No creditor having security for his debt, or security not to having made any attachment in London, or in other place by virtue of any custom there used, of the goods and chattels of the Bankrupt, shall receive upon any such security or attachment more than a rateable part of such debt, except in respect of any execution or extent served and levied by seizure and sale upon or any mortgage of or lien upon any part of the property of such Bankrupt any Creditors having receive more than other Cred itors. PART IV. MAY BE (PROCEEDINGS before the date of the filing of a petition for SUSPENDED.) adjudication of Bankruptcy: provided always, that nothing herein contained shall be deemed to give validity to any Warrant of Attorney, Cognovit, or Consent to a Judge's Order declared to be null and void by any provison of this Act, nor to give validity to any Judgment entered up under or by virtue of any such Warrant of Attorney or Consent, or to any execution or extent executed or levied under or by virtue of any such Warrant of Attorney, Cognovit, or Con(B. L. C. A. 1849, sec. 184.) sent. Option to credi. CREDITORS MAY SUSPEND PROCEEDINGS IN In case, at the first meeting, or at any other tors to suspend meeting of the creditors, any proposal shall be Bankruptcy. made by, or on behalf of, the Bankrupt, which it proceedings in And shall appear to the major part in value of the creditors then present, ought to be accepted; or, if it shall appear to the majority in value of the creditors present at any meeting, to be desirable, on any ground to resolve, and such majority shall resolve that no further proceeding be taken in Bankruptcy, Meeting may be the meeting shall be adjourned for fourteen days, adjourned for 14 days. in order that notice of such resolution may be given to every creditor by the Official, or creditors' Assignee, which shall be done accordingly. if, at any such adjourned meeting, a majority, in number, representing three-fourths in value of the creditors present, shall so resolve, the proceedings in Bankruptcy shall be suspended, and the estate and effects of the Bankrupt shall be wound up, and administered in such manner as such majority shall direct, and the Bankrupt, having made a full discovery of his estate, shall be entitled to apply for an order of discharge. (B. A., 1861, sec. 110.) PART IV. (CHOICE OF ASSIGNEES.) Creditors may the estate. At the first meeting, or at any other meeting called for the purpose, the majority in value of the creditors present, may determine whether a appoint a manamanager shall be appointed to collect and wind-up ger to wind-up the estate under the inspection of the creditors' Assignee or of a committee of creditors, and may appoint such persons, with such remuneration out of the estate, and generally upon such terms, for such period, and with such directions as the majority shall think fit. (B. A., 1861, sec. 122.) Bankrupt. At the first meeting, a majority in value of the Allowance to creditors present shall determine whether any or what allowance for support shall be made to the Bankrupt up to the time of passing his last examination. (B. A., 1861, sec. 109.) CHOICE OF ASSIGNEES. Assignee. es tate, when and At the first public sitting appointed by the Creditors' Court under any Bankruptcy, or at any adjourn- Assignees of the ment thereof, Assignees of the Bankrupt's estate Bankrupt's and effects shall, and may be chosen and appointed; how chosen. and all creditors who have proved debts to the amount of £10 and upwards, shall be entitled to vote in such choice; and also any person authorised, by letter of Attorney, from any such creditor, upon proof of the execution thereof, either by affidavit or by oath, before the Court vivâ voce; and the choice and appointment shall be made by the major part in value of the creditors so entitled to vote. Provided that the Court shall have power to reject Court may reject any person so chosen who shall appear to such or remove any Court unfit to be an Assignee, or to remove any Assignee, and upon such rejection, or removal, a new choice and appointment of another Assignee shall be made in like manner. (B. L. C. A. 1849, sec. 139; Appendix O.) By the Bankruptcy Act, 1861, it is enacted, that at the first meeting of creditors, or any adjournment thereof, it shall be competent to the person as unfit. |