rupts, and that the defendants con- verted the goods after the bank- rutcy, were not supported by the evidence. Edwards v. Hooper, 11 M. & W. 363.
See COSTS, 5-COURT OF REVIEW- EVIDENCE, 1, 2-EXECUTION, 6, 9, 12-LIEN, 5.
POLICY OF ASSURANCE. The bankrupts, being mortgagees of various policies of life assurance, of which the respective insurance offices had notice, deposit them with their bankers to secure the repayment of advances; but the bankers give no notice of such deposit to the different offices: Held, that the policies must be considered as in the order and disposition of the bankrupts, within the 72d section of the Bankrupt Act; and that the same principle applied to one of the policies, which was effected with a mutual assurance company. Ex parte Arkwright, 3 M. D. & D. 129. See CONTINGENT DEBT-MORTGAGE,
11-REPUTED OWNERSHIP.
POOR, GUARDIAN OF. See PROTECTED TRANSACTIONS.
PRACTICE.
See PLEADING-COSTS.
PRINCIPAL AND AGENT. See AGENT.
PRINCIPAL AND SURETY. See SURETY.
See PROTECTION FROM ARREST.
PROMISSORY NOTE. See BILLS AND NOTES-PARTNer, 1.
1. Upon a loan of 28,2001. Cuba bonds by a customer to his bankers, the latter engaged to replace them "at or within the expiration of three months, if he should require them to do so," and to deposit other securi- ties for the performance of this en- gagement. After the expiration of the three months, without any requi- sition on the part of the customer, he consents to an exchange of other securities for those deposited by the bankers, without any new stipulation as to the period of redemption, and the bankers afterwards become bank- rupt. Held, under these circum- stances, that the time for replacing the Cuba bonds became indefinite, and that the bankers were not bound to replace them until requested to do so; and that, no request having been made by the customer before their bankruptcy, the customer had no right of proving for the amount of the bonds under the fiat, and that the 6 Geo. 4. c. 16. s. 56, as to the proof of contingent debts, did not apply.
A customer deposits a box con- taining various securities with his bankers for safe custody, and after- wards grants a loan of a portion of them to one of the partners in the
banking-house for his own private purposes, upon his depositing in the box certain railway shares, to secure the replacing of the securities thus lent to him. This partner afterwards, for his own purposes, and without the knowledge of the customer, subtracts the railway shares, and substitutes others of less value. Held, that as the proceeds of the railway shares were not applied to the use of the partnership, the banking firm were not answerable for this tortious act of their partner for his own benefit, and consequently that the customer had no right of proof against the joint estate for the amount of the differ- ence between the value of the shares subtracted and those that were sub- stituted.
Held, also, that the partners were not chargeable with any loss occa- sioned by their subtraction of the shares, on the ground of negligence; and that even if they were, it would be a claim for unliquidated damages, and therefore not provable against the joint estate. Ex parte Eyre, 3 M. D. & D. 12; 1 Phil. 227.
2. In assumpsit for money paid, defendant pleaded his bankruptcy and certificate; and that the money was paid for a debt of defendant, for which plaintiff was surety; that the debt was due, and plaintiff liable for it, before the bankruptcy; and that the money was paid without any re- quest from defendant, except such as might legally arise from the premises; and that the surety had not, when he
became liable, notice of any act of bankruptcy.
Replication that before the pay- ment, defendant had obtained his cer- tificate, and a final dividend had been made; and that there was not at any time any debt in respect of the pay- ment of which plaintiff could have proved, or received a dividend. Held, on demurrer to the replication, that the plaintiff's claim was proveable, under stat. 6 Geo. 4. c. 16. s. 52, and that the action was therefore barred by sect. 121. Jackson v. Magee, 3 Ad. & Ell. N. S. 48.
3. The rule that a joint creditor cannot prove against one of his debtors, if another be solvent, is not confined to cases of partnership, but applies to co-contractors generally. Ex parte Field, 3 M. D. & D. 195.
4. A proof will not be ordered to be expunged merely because the in- strument on which the proof was made required a stamp. Ex parte Byrom, 3 M. D. & D. 53.
5. A judgment creditor, who, hav- ing taken the body of a bankrupt in execution before the bankruptcy, keeps him in prison till he is dis- charged by his certificate, cannot prove under the bankruptcy.
Whether a final judgment by de- fault, not obtained by collusion but adversely, which could not have been disputed, if the debtor remained sol- vent, may be impeached under his bankruptcy, on a proof being tended upon it, quære.
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 restrain 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. Ex parte Mudie, 3 M. D. & D. 66.
6. Where a bankrupt, after the commission of an act of bankruptcy, of which his bankers had notice- though not the act of bankruptcy on which the fiat issued-drew upon them various cheques in favour of several of his creditors, which cheques were duly paid by the bankers; it was held that the bankers could not prove the amount of these payments under the fiat. Where bankers, with the knowledge of an act of bank- ruptcy committed by their customer, took a guarantee from a surety on his behalf, to secure to a given amount all sums then or thereafter to become due from the customer, but the surety had no notice of the act of bankruptcy, and afterwards paid to the bankers the full sum for which he was gua- rantee, without specifying to which portion of the bankers' debt the pay- ment was to be applied: Held, that such payment was to go in reduction of that portion of the bankers' debt which was proveable under the fiat, and not of that which was not prove-
able. Ex parte Sharp, 3 M. D. & D. 490.
See BOND-CONTINGENT DEBT-FU- TURE DEBT-GUARANTEE-MORT- GAGE, 12-PARTNER-PETITION- ING CREDITOR, 1-SURETY-TRUS- TEE, 2, 3, 4.
PROOF, EXPUNGING. See STAMP, 1, 3. PROTECTED TRANSACTIONS. A., a trader, on the 2d of October, gave B., one of his creditors, an order for money drawn by a board of guar- dians of the poor on their treasurer, payable to A., but not to bearer or order. On the 4th of October A. committed an act of bankruptcy, of which B. had notice on the 5th. On the 9th, the treasurer of the union paid B. the amount of the order. A fiat of bankruptcy issued against A. on the 22d of November. Held, that 4.'s assignees could not recover the amount of the order in an action for money had and received by B., as this was a "transaction protected by the stat. 2 & 3 Vict. c. 29. s. 1," and that the "transaction" was, so far as the bankrupt was concerned, complete on the 2d of October.
To determine whether a fraudulent preference has been given by a bank- rupt to one of his creditors by a pay- ment, it will be for the jury to say whether the payment was voluntary, and without any pressure by the cre- ditor, and was made when the debtor knew that he must be a bankrupt, and in contemplation of bankruptcy.
In order to constitute "pressure," it is not necessary that legal pro- ceedings should have been resorted to, for if the pressure was such that it overweighed the bankrupt's own inclination, and induced him to pay against his will, that would be suffi- cient pressure within the meaning of the bankrupt laws.
From a person being in embar- rassed circumstances, it does not ne- cessarily follow that he contemplates bankruptcy, as he may hope that his affairs may rally and come round. Green v. Bradfield, 1 Car. & Kir. 449.
See EXECUTION, 1, 6, 14-PROOF, 6-
REPUTED OWNERSHIP.
PROTECTION FROM ARREST.
1. A defendant being in execution at the suit of plaintiff, plaintiff ob- tained a vesting Order from the In- solvent Debtors' Court, under stat. 1 & 2 Vict. c. 110. ss. 36, 37. De- fendant did not petition that Court for discharge, but afterwards peti- tioned the Court of Bankruptcy, and obtained a final order of protection under stat. 5 & 6 Vict. c. 116. s. 4. Held, that he was not entitled to be discharged from execution, the pro- visions of stat. 5 & 6 Vict. c. 116, in this respect not applying to the case of a party in custody at the time of his petitioning. Culpeper v. Joy, 4 Ad. & Ell. N. S. 172; 3 Gale & Dav. 619.
2. The bankrupt's privilege from arrest extends to a committal under
the act for the Relief of Insolvent Debtors, for nonpayment of a balance due from the bankrupt, as assignee under that act. Ex parte Bury, 3 M. D. & D. 309.
3. An interim order by a Commis- sioner of bankrupt for the protec- tion of an insolvent (under 5 & 6 Vict. c. 116. s. 1), if in the form prescribed in the rules promulgated by the Judges and Commissioners of the Court of Bankruptcy (under sect. 13), is sufficient, and need not show on the face of it the jurisdiction of the Com- missioner to make such Order.
A defendant having been arrested after such an interim order had been in fact made (but before notice to the sheriff or the plaintiff), this Court ordered his discharge, although the jurisdiction of the Commissioner did not appear either by the Order itself or the affidavits upon which the ap- plication to this Court was made; but they refused to give costs against the sheriff or against the plaintiff. Marsh v. Woolley, 5 M. & G. 675; 6 Scott, N. R. 555; 3 Dowl. N. S. 84.
The conditional order heretofore issued in the first instance on appli- cation for a receiver, under 5 & 6 Will. 4. c. 55, did not give the judg- ment creditor priority over the assig- nees of the debtor committing an act of bankruptcy intermediately between the times of obtaining the conditional and the absolute order, nor had the subsequent orders relation back to the
conditional order. Semble, the order confirming the Master's report was the order contemplated by the act. Burt v. Bernard, 2 Conn. & Law. 271.
A contract under seal by a trader to execute certain works for the de- fendant contained a stipulation that if the contractor should become bank- rupt or insolvent, or should from any other cause (not arising from the act of the defendant) be prevented from, or delayed in, proceeding with the works, it should be lawful for de- fendant to give a notice to the con- tractor requiring him to proceed re- gularly with them; and in case the contractor should, for seven days after the notice, make default in proceeding, it should be lawful for defendant to employ others to com- plete the work at the contractor's expense; and that all advances made by defendant on account before such default should be taken as full pay- ment for all the work done by the contractor, and that all the balance due to him, and all tools and mate- rials then delivered for, and being upon, the works should, upon such default, become the absolute pro- perty of defendant; and that all materials brought and left on the works by the contractor, to be per- manently used on or about the same, should, from the time of being so
brought and left, be considered as the property of defendant, and should not be removed without his consent. The contractor having made default in proceeding with the works, de- fendant, on 11th April, duly served him with notice to proceed. On 17th April the contractor committed an act of bankruptcy.
Held, that the defendant could not, on 19th April, take possession of the tools and materials left by the bank- rupt upon the work at the time of the bankruptcy; because the title of the assignees was complete by rela- tion on the 17th. Rouch v. Great Western Railway Company, 1 Ad. & Ell. N. S. 51.
REPUTED OWNERSHIP. 1. An hotel keeper dies intestate, leaving four children, upon which one of her daughters takes posses- sion of the stock and effects, and continues the business for a short time, when she admits one of her brothers into partnership, and the two carry on the business together in their own names for nearly two years, paying some of the intestate's debts as well as her funeral expen- ses. The daughter then retires, and assigns her share in the business to her brother, who carries it on in his own name for six months longer, when a joint fiat issues against the two. After their bankruptcy, one of the other children takes out adminis- tration to the intestate, and claims the property from the assignees. Held,
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