under such circumstances as would have been a ground for the inter- ference of a court of equity to re- strain execution, those circumstances are a sufficient objection to the proof, although the debtor may have omnitted to make a legal defence which he had to the action, and although (un- der such circumstances as those of the present case) nearly twenty years have elapsed since the judgment was obtained. Ibid.
See ACT OF BANKRUPTCY-NOTICE.
EXECUTOR DE SON TORT. See REPUTED Ownership.
EXPUNGING PROOF. See STAMP, 1, 3.
See LIEN, 2-INTERPLEADER.
FEME COVERTE. See HUSBAND And Wife.
See ANNULLING FRAUD - PETI- TIONING CREDITOr, 6—Venue.
1. A joint creditor of A. and B. strikes a docket for a separate fiat against A., and after the docket is struck, A. delivers to him certain bills of exchange, forming a portion of the joint estate of A. and B., in
part satisfaction of his debt. Held, that the creditor did not thereby incur a forfeiture of his debt, under the 6 Geo. 4. c. 16. s. 8, and that the words of that section, "whereby such person may receive more in the pound than the other creditors," mean the creditors entitled to receive divi- dends under the particular bank- ruptcy; and that the property, to the payment, gift, or delivery of which the section is meant to relate, is pro- perty which forms a subject of dis- tribution under the particular fiat. Ex parte Smith, 3 M. D. & D. 144.
2. Where one of two partners, who was anxious to dissolve the partner- ship, procured a creditor to issue a joint fiat against the firm, and it ap- peared that the main object of the fiat was to dissolve the partnership, and that the division of the effects among the creditors, if an object at all, was so merely in a slight and in- ferior degree, and was a purpose only subsidiary to the other; the fiat was held to be issued under a false colour for a concealed object, and was or- dered to be annulled at the costs of the petitioning creditor and the part- ner who induced him to issue it. Er parte Phipps re Coulson, 3 M. D. & D. 505.
3. A., a trader in embarrassed cir- cumstances, offered his creditors a composition of 78. 6d. in the pound, which was refused by the majority, including B. B. filed an affidavit in the Court of Bankruptcy, and on the 13th of March served on A. a copy,
and a demand of payment, and he also served a notice on the auctioneer not to proceed with the sale. The goods were sold, and out of the pro- ceeds a payment was made on the 5th of April to C. of the amount of the composition upon a debt due from A. to C. Held, a fraudulent preference. Gibson v. Muskett, 4 M. & G. 160.
Quare, whether, under the 1 & 2 Vict. c. 110. s. 8, the twenty days after service of the notice are to be reckoned inclusively of the day of service. Ibid.
The question whether a fraudulent preference was given appears to be one of law rather than of fact. Ibid.
A payment really and bond fide made is a payment made without the intention of its being reclaimed. Ibid.
4. In an action by assignees of a bankrupt to recover back money alleged to have been paid by the bankrupt to the defendant by way of fraudulent preference, in contem- plation of bankruptcy, the judge, assuming that there had been such a degree of importunity on the part of the creditor as would under ordinary circumstances repel the presumption of the payment being voluntary, left it to the jury to say whether it was made in consequence of that impor- tunity, or with a view to a fraudulent preference of the defendant. Held, that this was a proper direction. Cook v. Pritchard, 6 Scott, N. R. 34; 5 Man. & Gr. 329; and see Pritchard v. Hitchcock, 6 Scott, N. R. 851.
5. One Martin being in embar- rassed circumstances, executed a deed of composition to secure to his creditors the payment of 7s. in the pound upon the amount of their re- spective debts. The defendants, who were creditors, refused to sign the deed until they had obtained from Martin a promise to give them secu- rity for the difference between the composition and the full amount of their demand; and afterwards, in pursuance of that agreement, Martin gave them his promissory notes pay- able to themselves or order. The defendants indorsed the notes, and paid them into their bankers at Leeds, to whom they were in the habit of indorsing all bills and notes received by them, and drawing generally on account. The notes were presented at maturity by the London corre- spondents of the Leeds bankers, and paid by Martin, who continued his dealings with the defendants down to the bankruptcy, (which took place about three years afterwards,) with- out ever complaining of the transac- tion, or attempting to set off the pay- ments made in respect of the notes against the subsequent demands of the defendants upon him. There was no evidence to show the state of the account between the defendants and the Leeds bankers at the time of the payments, nor any evidence that Martin knew in what character the bankers who presented the notes held them. In an action for money had and received, brought by the assig-
nees of Martin to recover back the amount of these notes, it was left to the jury to say whether or not the payment was voluntary; and they were told, that if the payment was made to the bankers as agents only, it must be considered as voluntary, and that if they found the payment to be voluntary, and to have been made with a full knowledge of the circumstances, they must find for the defendants, otherwise for the plain- tiffs. The Court directed a new trial, in order that the attention of the jury might be more precisely directed to the question, whether Martin knew the character in which the bankers presented the notes, as agents or as holders for value. Gib- son v. Bruce, 6 Scott, N. R. 309; 5 M. & G. 199.
See BILL OF EXCHANGE, 3-LIMITA- TIONS, STATUTE OF, 2-PROTECTED TRANSACTIONS.
FRAUDULENT PREFERENCE.
FRIENDLY SOCIETY. Country bankers, appointed by a friendly society to receive monies, and to transmit them to their Lon- don agents for the purpose of invest- ment in the Bank of England to the account of the commissioners of the national debt, are not to be consi- dered as appointed to an office in the society, within the meaning of the Friendly Society Act, 4 & 5 Will. 4. c. 40, s. 12; Ex parte Whipham, 3 M. D. & D. 564.
FUTURE DEBT.
Plaintiffs, having taken B. in exe- cution for a debt, discharged him upon the following undertaking of defendant: " In consideration of your discharging B. out of custody, I un- dertake that he shall pay the debt due to you by four half-yearly in- stalments," &c. Held, that the plain- tiff might have proved the unpaid instalments under a fiat in bank- ruptcy against defendant, and that defendant's certificate was therefore a bar to an action upon the contract for instalments becoming due since his bankruptcy. Lane v. Burghart, 1 Ad. & Ell. N. S. 933.
GAZETTE. See ADVERTISEMENT.
A. guarantees to a banking com- pany "all current obligations in their hands to which B. may be a party, and also all his future obligations and engagements that may come into their hands." Held, that the latter part of the guarantee as to the future obligations implied of itself a con- sideration, and did not require the specific statement of one in the body of the guarantee, according to the requisition of the Statute of Frauds, and that the banking company might therefore, on the bankruptcy of A., prove for the amount of their ad-
HUSBAND AND WIFE. 1. The assignees of a bankrupt cannot maintain an action in their own names only for a chose in action belonging to the wife of the bankrupt before marriage, as a promissory note given to her dum sola. Sherrington v. Yates, 1 Dowl. & L. 1032, re- versing Yates v. Sherrington, 11 M. & W. 42.
2. A testator devised and be- queathed two freehold houses to his daughter, her heirs and assigns, with all the furniture in one of the houses, "for her own sole use and benefit." Held, that these words applied to the furniture as well as the house, and that the daughter having, after the testator's death, intermarried with K., who afterwards became a bank- rupt, was entitled, as against the assignees, to the whole of the furni- ture for her separate use. Ex parte Killick, 3 M. D. & D. 480.
3. In a suit filed by the assignees of a bankrupt against the trustees of the bankrupt's marriage settlement and the wife of the bankrupt, for the purpose of recovering the fund, sub- ject to the wife's equity, a decree was made at the hearing of the cause, the husband being absent from the record, by which it was referred to the Master to approve of a proper settlement for the wife. On the
cause coming on for hearing for fur- ther directions, the Court declined to proceed in the absence of the hus- band.
A trust for the wife's own use and benefit is not a trust for her separate Beales v. Spencer, 2 Y. & C.
See EXECUTOR, 8-ASSIGNEES, 7, 8- PROTECTION FROM ARREST.
In an order appointing an inspec- tor, liberty was given to him to apply to the Court, or to the Commissioner. Costs of appointing an inspector do not, as of course, come out of the estate, on behalf of which he is ap- pointed. Ex parte Sanderson, 3 M. D. & D. 300.
INSTALMENT. See FUTURE Debt.
INTERPLEADER.
1. A. consigned goods to B. as factor, who sold them to C.: B. having become bankrupt, his as- signees sued C. for the price of the goods, which were also claimed by A. Held, that C. was entitled to
the benefit of the Interpleader Act. Johnson v. Shaw, 4 M. & G. 916.
2. The goods of one H. were seized under several writs of execu- tion; H. having subsequently be- come bankrupt, his assignees claim- ing the goods, an issue was directed under the Interpleader Act; the goods being sold and the proceeds paid into Court to abide the event; in the result four of the executions were set aside: Held, that the right of the assignees to the proceeds paid into Court was subservient to that of the other execution creditors whose judgments were impeached. Gold- schmidt v. Hamlet, 6 Scott, N. R. 962; 1 Dowl. & L. 801.
JOINT FIAT.
See ADVERTISEment, 3.
A judgment creditor, who, having taken the body of a bankrupt in exe- cution before the bankruptcy, keeps him in prison till he is discharged by his certificate, cannot prove under the bankruptcy. Ex parte Mudie, 3 M. D. & D. 66.
Quare, Whether a final judgment by default, not obtained by collusion but adversely, which could not have been disputed, if the debtor remained solvent, may be impeached under his bankruptcy, on a proof being ten- dered upon it. Ibid.
But if the judgment were obtained under such circumstances as would have been a ground for the interfe- rence of a Court of Equity to re- strain execution, those circumstances are a sufficient objection to the proof, although the debtor may have omitted to make a legal defence which he had to the action, and although (under such circumstances as those of the present case) nearly twenty years have elapsed since the judgment was obtained. Ibid.
See COSTS, 6-EXECUTION-PROOF,
5-RECEIVER-WARRANT OF AT-
JURISDICTION.
See COMMISSIONER-VOLUNTARY Deed.
LANDLORD.
See ASSIGNEES, 11, 12.
LAST EXAMINATION. See CERTIFICATE, 2.
1. The bankrupts employed the petitioners as their brokers for the sale of East India produce, and the brokers accepted bills to a large amount in favour of the bankrupts, on the credit of goods deposited with them for sale, and of bills of lading for goods shipped and con- signed from India to the bankrupts.
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