Assignees to keep Accounts of Insolvents, with Liberty for Creditors to inspect the same. Penalty on Assignee improperly dealing with Insolvent's Estate. Management of such Property as to such Court for Relief of Insolvent Debtors may seem reasonable and beneficial, and upon such Terms and Conditions with respect to the Allowance of Interest on Debts not bearing Interest, or other Circumstances, as to such Court shall seem just; and if it shall appear that the Debts of any such Insolvent can be discharged by means of Money raised by way of Mortgage or otherwise on any of the said Property of the said Insolvent, instead of raising the same by Sale, it shall be lawful for the said Court so to order, and to give all necessary Directions for such Purpose, and generally to direct all Things which may be proper for the Discharge of the Debts of such Insolvent in such Manner as may be most consistent with the Interest of such Insolvent and of his Creditors. XXXIII. And be it enacted, That the Assignee or Assignees shall keep Accounts of the Property, Debts, and Credits of such Insolvent, whether separate or joint, and of all Property of the Insolvent received by him or them, and all Payments made by him or them, which Accounts any Creditor shall be at liberty to inspect at all seasonable Times; and it shall be lawful for the Courts for the Relief of Insolvent Debtors to summon the Assignee or Assignees before them, and require him or them to produce all Books, Papers, Deeds, Writings, and other Documents in his or their Possession relating to the Matters of such Insolvency; and upon his or their Default, it shall be lawful for such Courts respectively to issue an Attachment or Attachments against the Party or Parties so making default, and to cause such Assignee or Assignees to be brought before them, and to commit such Assignee or Assignees to Prison until he or they shall submit to the Court by which he or they shall have been summoned. XXXIV. And be it enacted, That if any Assignee shall knowingly retain in his Hands, for his own Benefit, or employ for his own Benefit, or knowingly permit any Co-Assignee so to retain or employ any Sum, Part of the Estate of the Insolvent, or shall knowingly omit to invest or pay or deposit any Money or other Property in the Manner in which it may be his Duty for the Time being, according to Law, to invest, pay, or deposit the same, every such Assignee shall, besides being liable to be removed therefor from his Office of Assignee for Misconduct, be liable to be charged in his Accounts with such Sum as shall be equal to Interest at the Rate of Twelve per Centum per Annum on the Amount or Value of such Money or Property, or if any higher Interest shall have in fact been made, then to the Extent of the Interest actually made, and Five per Centum per Annum in addition thereto on all such Money or Property, for the Time during which he shall have so retained or employed the same, or permitted the same to be so retained or employed as aforesaid, or during which he shall have so neglected to invest or deposit the same as aforesaid; and the Court is hereby required to charge every such Assignee in his Accounts accordingly, and the Amount so charged shall constitute constitute a Debt from him to such Estate; and if any Assignee indebted to the Estate of which he is such Assignee, in respect of Money so retained or employed by him as aforesaid, become insolvent, his Discharge under the Provisions of this Act shall only have the Effect of freeing his Person from Arrest and Imprisonment on account of such Debt; but his future Effects, excepting the Wearing Apparel, Bedding, and other hereinbefore mentioned Articles excepted out of the Operation of the Vesting Order aforesaid, and not exceeding the Value hereinbefore limited in that Behalf, shall remain liable for so much. of his Debts to the Estate of which he was Assignee as shall not be paid by Dividends under such Insolvency, together with legal Interest for the whole Amount. filed, and Ad Notice to be given to Creditors, and published. Court in such Notice to appoint a Day for hearing. XXXV. And be it enacted, That after the Petition and After Petition Schedule of any Insolvent shall have been filed in any Court and Schedule for the Relief of Insolvent Debtors, and after any such Adjudi- judication, &c. cation of an Act of Insolvency shall have been pronounced as aforesaid, the Court shall cause Notice thereof to be given to any Creditor or Creditors of the Insolvent at whose Suit he may be detained in Custody, or the Attorney or Agent of such Creditor or Creditors, and to the other Creditors resident within the Limits of the Territories of the East India Company, as the Court shall direct; and Notice to the like Effect shall be twice at least published in the Gazette of the Presidency where such Court shall be holden; and the Court in such Notice shall appoint a Day and Place for the hearing of the Matters of the Petition of such Insolvent, and for hearing any other Applications in the Matter of the Insolvency. XXXVI. And be it enacted, That upon the Day so ap- Course of pointed by the Court as aforesaid for such hearing as aforesaid, Proceeding on hearing. or on any future Day to which such hearing may be adjourned, it shall be lawful for the Insolvent and for any Creditor of the Insolvent, as the Case may require, to be heard, either by himself or by Counsel, in support of or in opposition to the Petition of the Insolvent, or on any other Application relating to the Insolvent or his Estate; and it shall also be lawful for the Court, on those or any other Occasions, and from Time to Time as often as Occasion may require, to order any Insolvent who is in Custody to be brought before it, and to summon any Insolvent who shall not be in Custody, and the Wife of any Insolvent, and any other Person, whether a Creditor or not, who may be known or suspected to have any of the Estate or Effects of the Insolvent in his or her Possession, or any Person who may be suspected to be indebted to the Insolvent, or any Person who is believed to be capable of giving any Information respecting the Estate and Effects of such Insolvent, or respecting his Acts, Dealings, or Conduct, or any Information which will more easily enable the Court to dispose of the Estate and Effects of the Insolvent for the Benefit of his Creditors; and it shall also be lawful for the Court to examine any Insolvent or his Wife, or any other such Person, whether a Creditor or not, in the same Way as any other Witnesses are examined in Her Majesty's Court may admit Affidavit instead of per sonal Appearance in case of Sickness, &c. Creditor whose included in the his Debt, and receive Dividends thereon. Mutual De mands may be set off against each other. All Debts, &c. Fiat in Bank ruptcy pursuant to 6 G. 4. c. 16. may be proved under Insolvency. 11 VICT. Supreme Court at that Presidency, in any Suits at Law or in Equity, or according to any Rules which may be made for the Practice of the said Courts for the Relief of Insolvent Debtors respectively, or for giving effect to this Act, in the Manner which is herein prescribed: Provided always, that every Witness summoned to attend before the Court shall have his necessary Expenses tendered to him in like Manner as by Law is required upon Service of a Subpoena to a Witness in an Action at Law. XXXVII. Provided also, and be it enacted, That in all Cases where any Creditor or other Person shall be prevented or hindered from attending the said Court, by reason of Sickness or Infirmity, or the Distance of his Residence, or other reasonable Cause, to be admitted by the Court, it shall be lawful for the Court to receive the Affidavit or solemn Affirmation of such Creditor or other Person, and also, if the Court shall think fit, to permit Interrogatories to be filed for the Examination or Cross-examination of any such Person. any XXXVIII. And be it enacted, That when any Petition shall have been presented under this Act by an Insolvent, or any Adjudication of an Act of Insolvency shall have been pronounced as aforesaid, it shall be lawful for any Person to whom such Insolvent shall be indebted or liable in respect of any Debt or Demand which would have entitled such Person to be inserted as a Creditor in the Schedule of such Insolvent, to make Claim upon the Estate of such Insolvent, and to prove his Debt or Demand, whether due by such Insolvent solely or jointly with any other Person or Persons; and such Person shall be entitled to and receive a Dividend thereon rateably with the other Creditors of the said Insolvent, although the Name of such Creditor may have been wholly omitted by the said Insolvent in his or her Schedule, or may have been inserted for a smaller Amount than the Debt or Demand really due to such Person; and where any Objection to the Existence or Amount of such Debt or Demand shall be made by such Insolvent, or any Creditor, such Court shall hear the same, and may make such Order thereon as may seem meet and just. XXXIX. And be it enacted, That when there has been mutual Credit given to the Insolvent and any other Person or Persons, One Debt or Demand may be set against the other. XL. And be it enacted, That all such Debts, Dues, and proveable under Claims as might be proved under a Fiat of Bankruptcy bearing even Date with the Insolvent's Petition or the Adjudication (as the Case may be), according to the Provisions of the said Act passed in the Sixth Year of the Reign of His late Majesty King George the Fourth, intituled An Act to amend the Law relating to Bankrupts, or any other Statute or Statutes now in force or hereafter to be passed relating to Bankrupts, may also be proved as is herein-before mentioned, in the same Manner and subject to the like Deductions, Conditions, and Provisions as in the said Statutes are or may be set forth and prescribed. XLI. And to order Divi XLI. And be it enacted, That whenever it shall appear to Power to Court the Court, either by the Accounts of any Assignee or Assignees, foods to be or otherwise, to be probable that a Dividend may be benefi- declared, giving cially made amongst the Creditors, it shall be lawful for the Notice of the Court to appoint a Day for the Purpose of making a Dividend, same. and to cause Notice thereof to be given, in such Manner as it shall direct; and on the Day appointed the Assignee or Assignees shall deliver in, upon Oath or solemn Affirmation, as the Case may be, a true Statement in Writing of all Money received by him or by them respectively, and when, and on what Account, and how the same have been employed; and the Court shall examine such Statement, and compare the Receipts with the Payments, and shall ascertain what Balances, if any, have been from Time to Time in the Hands of such Assignee or Assignees respectively; and on the said Day all Parties interested shall be heard, and all Objections to the Schedule of the Insolvent, and to the Accounts or Conduct of the Assignee or Assignees; and any Claims of any Creditors which shall not have been previously determined shall be heard and determined either by such Court immediately, or on a Reference to the Examiner or other Officer of the Court; and it shall be lawful for the Court to examine the Insolvent, the Assignees, and any Witnesses, either on Oath or Affirmation, and either at that Time to declare a Dividend, and to direct that the same shall be paid by the Assignee or Assignees, or to postpone such Declaration or Direction of the same until a further Hearing, and to make such Order as shall be just. out of separate Creditors, and Estates to XLII. Provided always, and be it enacted, That it shall not As to Payment be lawful for such Court to order any Dividend to be made of Dividends amongst the joint Creditors out of the separate Estate until Estates to joint the separate Creditors shall have been paid in full, nor to order any Dividend to be made to the separate Creditors out of the out of joint joint Estate until all the joint Creditors shall have been paid in separate Crefull; in which latter Case it shall be lawful for such Court to ditors. order such Dividend to be made among the separate Creditors out of such Interest in the joint Estate as such Insolvent shall appear to be entitled to. fied that all the Unless the Limits of the side therein, XLIII. Provided always, and be it enacted, That unless it shall appear to the Satisfaction of such Court that all the Property of the Insolvent is situate, and all the Debtors and Creditors resident, within the Limits of the Charter of the East India Company, then, until the Expiration of Twelve Calendar Months from a Notice, to be published in the London Gazette, of the Petition or Adjudication of or against any Insolvent as herein-after is mentioned, the Assignee or Assignees shall reserve the full Amount of One Third Part of all the Property of the said Insolvent which shall have been got in, and shall make a Dividend amongst the Creditors of the said Insolvent to the Amount of the remaining Two Third Parts only, which after Twelve Third Part so to be reserved as aforesaid shall in the meantime Months Notice, be invested or disposed of in such Way as such Court shall to be published order, and shall not remain in the Hands of such Assignee or Gazette. Assignees; undivided until in the London of Twelve Months such One Third to be divided. At Expiration Assignees; and at the Expiration of the said Term of Twelve Calendar Months it shall be lawful for the Assignee or Assignees of such Insolvent to apply to such Court for a Return of the said Third Part so reserved as aforesaid, in order that the same may be so distributed amongst the Creditors as to place them all upon an equal Footing; and upon such Third Part so reserved as aforesaid being restored to such Assignee or Assignees, such Assignee or Assignees shall forthwith proceed to take an Account of the Debts of the said Insolvent admitted and established in the said Court, and of the Sum or Sums which shall or may have been paid by way of Dividend to any of such Creditors, and shall distribute the Fund then in the Hands of such Assignee or Assignees, so as to place all the Creditors of the said Insolvent, whether Indian or British or Foreign, upon a just and equal Footing, and so as that every Creditor whose Debt or Claim shall be admitted or established in the said Court shall receive a rateable and proportional Part of the Assets of the said Insolvent, according to the Amount of his Debt, without reference to the Time at which such Debt shall have been claimed. If Creditors do not appear to claim Dividend, Court may order Payment or Deposit thereof in such Way as it shall see fit. Power of Court Breach of XLIV. And be it enacted, That if any Creditor whose Claim shall have been admitted or established in any Court for the Relief of Insolvent Debtors shall not appear, by himself, his Attorney or Agent, at the making of any Dividend, nor shall make Application to receive his Share thereof, the Assignee or Assignees shall certify the same to such Court at its first Sitting after the making of the Dividend, and it shall be lawful for the Court to direct in what Manner, and by whom, and upon what Conditions the Money so due to such Creditor shall be kept for or paid to him or to his lawfully constituted Attorney or Agent. XLV. And be it enacted, That if any Assignee or Assignees over Assignees shall neglect to pay any Dividend which shall have been ordered neglecting to pay Dividends by any Court for the Relief of Insolvent Debtors, or in any or committing other respect shall neglect or commit any Breach of his or their Duty as Assignee or Assignees, it shall be lawful for such Court, having first summoned the Assignee or Assignees to appear before it and answer the same, to order the Payment of such Dividend, with Interest at such Rate as the Court shall award, not exceeding Six Pounds per Centum per Annum, and to order the Assignee or Assignees to make such Compensation to any Party injured by such Neglect or Breach of Duty as to such Court shall seem fit, and in default of Obedience thereto to commit such Assignee or Assignees to the Common Gaol, there to remain without Bail until he or they shall obey the Order of such Court, and to levy by Distress and Sale of the Offender's Goods as much as shall be sufficient to satisfy the Order of the Court. Court may award Wages, &c. to Servants or Clerks not XLVI. And be it enacted, That if it shall appear to any of the said Courts for the Relief of Insolvent Debtors that any such Insolvent as aforesaid is indebted to any Servant or exceeding Six Clerk of such Insolvent in respect of Wages or Salary of such Servant |