PART VII. the bankrupt is indebted jointly with the other partners, although CHAP. XIV. entitled to prove his debt and vote, is not entitled to receive any dividend out of the separate property of the bankrupt until all the separate creditors have received the full amount of their respective debts (ƒ). Lender of Money on Receipt of Share of Profits.]—In the event of any trader, that is to say, a person engaged in any trade or undertaking, being adjudged a bankrupt, or entering into an arrangement to pay his creditors less than twenty shillings in the pound, or dying in insolvent circumstances, the lender of any loan to him, upon a contract that the lender shall receive a rate of interest varying with the profits, or receiving a share of the profits, is not entitled to recover any portion of his principal, or of the profits or interest, until the claims of the other creditors of the trader for valuable consideration, in money or money's worth, have been satisfied (g). Even if the lender has a mortgage on the trader's property to secure the money lent (the loan being expressly within the above act), it must be treated as subject to the contingency of the trader's bankruptcy, in which case the lender or his trustee must concur in a sale of the mortgaged property for the benefit of creditors (h). Apprentices and Articled Clerks.]-As to the payment of a sum of money to apprentices and articled clerks, see ante, p. 328. (f) See sect. 103, ante, p. 354. (ante p. 203) gave the power to compel the parties to effect a sale, and that sect. 95, subs. 1 (ante p. 321) is to be read subject to 28 & 29 Vict. c. 86. CHAPTER XV. CLOSE OF THE BANKRUPTCY AND DISCHARGE OF THE BANKRUPT. § 1.-CLOSE OF BANKRUPTCY. § 4.-ACCOUNTS of closed Bankruptcy. § 1.-CLOSE OF BANKRUPTCY. "The Bankruptcy Act, 1869," enacts that Sect. 47. "When the whole property of the bankrupt has been realized Close of for the benefit of his creditors, or so much thereof as can, in the joint bankruptcy. opinion of the trustee and committee of inspection, be realized without needlessly protracting the bankruptcy, or a composition or arrangement has been completed, the trustee shall make a report accordingly to the court, and the court, if satisfied that the whole of the property of the bankrupt has been realized for the benefit of his creditors, or so much thereof as can be realized without needlessly protracting the bankruptcy, or that a composition or arrangement has been completed, shall make an order that the bankruptcy has closed, and the bankruptcy shall be deemed to have closed at and after the date of such order. "A copy of the order closing the bankruptcy may be published in the London Gazette, and the production of a copy of such gazette containing a copy of the order shall be conclusive evidence of the order having been made and of the date and contents thereof." No. 51. Report of Trustee for closing Bankruptcy. "The Bankruptcy Act, 1869." In the London Bankruptcy Court [or the county court of I, G. H., the trustee of the property of the bankrupt, do hereby report to this court, as follows: That the whole of the property of the bankrupt has been realized for the benefit of his creditors, [and a dividend to the amount of shillings in the pound has been paid as shown by the statement hereunto annexed ;] [or That so much of the property of the bankrupt as can, according to the joint opinion of myself and the committee of inspection, hereunto Sect. 47. PART VII. annexed in writing under our hands, be realized without needlessly proCHAP. XV. tracting the bankruptcy, has been realized, as shown by the statement hereunto annexed, and a dividend to the amount of been paid]; Sect. 28. shillings has [or That a composition [or arrangement] offered by the bankrupt was duly accepted by me [or that a general scheme of settlement or arrangement of the affairs of the bankrupt has been assented to by me] to which the approval of this court was given on the 187 ]. Dated this day of Sect. 47. Order of discharge. G. H., trustee. No. 52. Order on Report of Trustee as to the closing of a Bankruptcy. "The Bankruptcy Act, 1869." In the London Bankruptcy Court [or the county court of holden at In the matter of A. B. of day of ]. a bankrupt. Upon reading a report of the trustee of the property of the bankrupt, dated the 187 reporting (here set out the terms of the report) [and upon hearing (here insert the name of any person who may appear to oppose an order for closing)], the court being satisfied that (here follow the terms of the report), doth order and declare that the bankruptcy of the said A. B. has closed [or as the court may otherwise order]. Given under the seal of the court this 187 day of § 2.-DISCHARge of Bankrupt. "The Bankruptcy Act, 1869," enacts that Sect. 48. "When a bankruptcy is closed, or at any time during its continuance, with the assent of the creditors testified by a special resolution, the bankrupt may apply to the court for an order of discharge; but such discharge shall not be granted unless it is proved to the court that one of the following conditions has been fulfilled, that is to say, either that a dividend of not less than ten shillings in the pound has been paid out of his property, or might have been paid except through the negligence or fraud of the trustee, or that a special resolution of his creditors has been passed to the effect that his bankruptcy or the failure to pay ten shillings in the pound has, in their opinion, arisen from circumstances for which the bankrupt cannot justly be held responsible, and that they desire that an order of discharge should be granted to him; and the court may suspend for such time as it deems to be just, or withhold altogether, the order of discharge in the circumstances following; namely, if it appears to the court on the representation of the creditors made by special resolution, of the truth of which representation the court is satisfied, or by other sufficient evidence, that the bankrupt has made default in giving up to his creditors the property which he is required by this act to give up; or that a prosecution has been commenced against him in pursuance of the provisions relating to the punishment of fraudulent debtors, contained in the "Debtors Act, PART VII. 1869," in respect of any offence alleged to have been committed by him against the said act." CHAP. XV. order of dis Sect. 49. "An order of discharge shall not release the bankrupt from Effect of any debt or liability incurred by means of any fraud or breach of trust, charge. nor from any debt or liability whereof he has obtained forbearance by any fraud, but it shall release the bankrupt from all other debts proveable under the bankruptcy, with the exception of— (1.) Debts due to the crown. (2.) Debts with which the bankrupt stands charged at the suit of the crown or of any person for any offence against a statute relating to any branch of the public revenue, or at the suit of the sheriff or other public officer on a bail bond entered into for the appearance of any person prosecuted for any such offence. And he shall not be discharged from such excepted debts unless the commissioners of the treasury certify in writing their consent to his being discharged therefrom." "An order of discharge shall be sufficient evidence of the bankruptcy, and of the validity of the proceedings thereon, and in any proceedings that may be instituted against a bankrupt who has obtained an order of discharge in respect of any debt from which he is released by such order, the bankrupt may plead that the cause of action occurred before his discharge, and may give this act and the special matter in evidence." Sect. 50. The order of discharge shall not release any person who, at the date of the order of adjudication, was a partner with the bankrupt, or was jointly bound or had made any joint contract with him." The following "Bankruptcy Rules, 1870," relate to the order of discharge: Rule 138. "A bankrupt intending to apply for an order of discharge Sect. 48. shall file an application with the registrar, who shall thereupon fix the time and place at which the application will be heard. Notice of the time and place fixed for the hearing of the application of the order of discharge shall be gazetted, and also given to the trustee by the bankrupt, twenty-one days before such day." Rule 139. "An order of discharge shall be dated of the day on which it is made, and shall take effect on and from the day of its date, and shall be gazetted." Rule 140. "An order of discharge shall not be granted until after the Sect. 19. public examination of the bankrupt under sect. 19 of the act." Rule 141. "An order of discharge shall not be delivered out until after the expiration of the time allowed for appeal, or if an appeal be entered, until after the decision of the court of appeal thereon." Rule 142. "A bankrupt desirous of obtaining the assent of his creditors to his applying to the court for an order of discharge during the continuance of his bankruptcy, shall request the trustee to summon a meeting of his creditors, and thereupon the trustee, upon the deposit of a sufficient sum for costs, shall summon such meeting; where at the meeting the creditors do not so assent no other meeting shall be called for the same purpose until after the lapse of three calendar months." PART VII. CHAP. XV. No. 61. Notice in Gazette of Day a Bankrupt will apply for his In the London Bankruptcy Court [or the county court of holden at ]. 187 at , adjudicated bankrupt on the an order of discharge. day of 187 Sect. 48. Sect. 48. No. 62. Application for Order of Discharge where a Dividend of not less than 10s. has been paid. "The Bankruptcy Act, 1869." In the London Bankruptcy Court [or the county court of holden at day of The bankruptcy of A. B. having been closed, as shown by the order published in the London Gazette on the 187, and a dividend of [here state the amount of the dividend, which must be not less than 108.] shillings in the pound having been paid out of his property to all the creditors who have proved, the said bankrupt doth hereby apply to the court for an order of discharge. Dated this day of 187 . No. 63. Application for Order of Discharge where the Failure to pay a "The Bankruptcy Act, 1869." In the London Bankruptcy Court [or the county court of The bankruptcy of A. B. having been closed, as shown by the order published in the London Gazette on the day of 187, and the failure to pay a dividend of 108. in the pound out of his property, having been caused through the negligence [or fraud] of the trustee, as proved by the proceedings which have been had in this court for the removal of such trustee [or, as the case may have been], the said bankrupt doth hereby apply to the court for an order of discharge. |