493 COMPOSITION DEEDS. Conveyance of all trader's property not bankruptcy, petition for be filed within three By the 12 & 13 Vict. c. 106. s. 68. it is provided, that if a trader shall execute any conveyance or an act of assignment by deed of all his estate and effects unless a to a trustee or trustees for the benefit of all adjudication the creditors of such trader, the execution of such months. deed shall not be deemed an act of bankruptcy, unless a petition for adjudication of bankruptcy be filed within three months from the execution thereof, provided such deed shall be executed by every such trustee within fifteen days after the execution thereof by the trader, and the execution by the trader and by every such trustee be attested by an attorney or solicitor, and notice thereof be given within one month after the execution thereof by such trader, in case such trader reside in London or within forty miles thereof, in the London Gazette, and also in two London daily newspapers, and in case such trader does not reside within forty miles of London, then in the London Gazette and in one London daily newspaper, and one provincial newspaper published near to such trader's residence, and Deed of arrangement debtor and executed by six-sevenths in number and value of whose debts amount to £10 and upwards, to be binding on all. such notice shall contain the date and execution of such deed, and the name and place of abode respectively of every such trustee and attorney or solicitor. With respect to arrangements by deed it is provided by this act: 1st. That every deed or memorandum of arrangebetween any ment now or hereafter entered into between any his creditors, such trader and his creditors, and signed by or on behalf of six-sevenths in number and value of the creditors, those creditors whose debts amount to £10 and upwards, touching such trader's liabilities and his release therefrom, and the distribution, inspection, conduct, management and mode of winding up of his estate, or all or any of such matters or any matters having reference thereto, shall (subject to the conditions hereinafter mentioned) be as effectual and obligatory in all respects upon all the creditors who shall not have signed such deed or memorandum of arrangement, as if they had duly signed the same; and such deed or memorandum, when so signed, shall not be or be liable to be disturbed or impeached by reason of any prior or subsequent act of bankruptcy: Provided always, that every creditor shall be accounted a creditor in value in respect of such amount only as upon an account fairly stated, after allowing the value of mortgaged property and other such available securities or liens from such trader, shall appear to be the balance due to him. (Sect. 224). Deed not effectual 2nd. That no such deed or memorandum of arupon credi- rangement shall be effectual or obligatory upon any tor who has until after until not signed time expiration of from three months from notice of suspension, and of proposed deed &c., shall other creditor who shall not have signed the same, after the expiration of three months from the at which such creditor shall have had notice such trader of his suspension of payment, and of such deed or memorandum of arrangement, unless unless court such trader shall within such time obtain from the wise order. court an order or certificate of the said court, declaring or certifying that such deed or memorandum of arrangement has been duly signed by or on behalf of such majority of the creditors as aforesaid; and it shall be lawful for the court, within the district of which the trader shall have resided or carried on business for six months next immediately preceding his suspension of payment, to make such order or certificate on the petition of any such trader, and to exercise jurisdiction in and over the matters of any such application; and no creditor who shall not have had fourteen days' notice of any intended application for such order or certificate as aforesaid shall be bound thereby. (Sect. 225). inspector &c. proper number of having sig certificate &c. 3rd. That when the trustee or inspector under Trustee or any such deed or memorandum of arrangement, or to certify as if there shall be no such trustee or inspector, when creditors, any two of the creditors shall be satisfied that six- ned, which sevenths in number and value of the creditors whose shall be filed, debts amount to £10 and upwards, have signed such deed or memorandum, it shall be lawful for such trustee or inspector, or for such two creditors as the case may be, to certify the same to the court. in writing, and such certificate shall be filed with the registrar of the court, and shall thereupon be primâ facie evidence in all courts of law and equity Account of debts &c. to such cer that such deed or memorandum of arrangement has been so signed. (Sect. 226). 4th. That every such certificate as last aforesaid to be annexed shall have appended thereto a full account of the tificate and debts of such trader, together with the names, resiaffidavit of dences and occupations of his creditors, and shall verified by arranging debtor. Creditors to have the be accompanied by an affidavit by such trader verifying the same; and any omission in such account or the insertion therein of any debt not really existing, or of any larger amount of debt than that really existing, and which shall appear to the court to have been made through the culpable negligence or fraud of such trader, with intent to defraud any of his creditors, shall deprive him of the benefit of the provisions of this act with respect to arrangements by deed, and of the discharge proposed in any such deed or memorandum of arrangement: Provided always, that any omission, insertion or incorrectness in such account, which shall not have been made through such culpable negligence or fraud as aforesaid, shall not defeat or otherwise affect such deed or memorandum of arrangement. (Sect. 227). 5th. That the creditors of every such trader shall same rights have the same rights respectively as to set-off, ruptcy, and mutual credit, lien and priority, and joint and sepa as in bank not to be prejudiced with respect rate assets shall be distributed in like manner as in to their rights parties. against third bankruptcy; and no creditor shall be prejudiced or affected by being a party to any such deed or memorandum of arrangement as aforesaid, or by the same being obligatory upon him as to his right or remedy against any person other than such trader; and every person who would be entitled to prove in bankruptcy, shall be deemed a creditor within the meaning of the provisions of this act with respect to arrangements by deed. (Sect. 228). improper ad any creditor 6th. That if any creditor of any trader shall be In case of desirous to shew that the administration of the estate ministration of such trader has not been duly conducted in con- the Court. formity with such deed or memorandum of arrangement, it shall be lawful for him to apply to the Court by petition, supported by affidavit, stating any facts or circumstances to shew that such administration has not been duly conducted, and thereupon the Court shall have full power and it is hereby fully authorized to consider the subject matter of such application, and, if it shall think fit, may direct any inquiry, and in such manner as it shall think proper, into the subject of such application, and generally may make such order and exercise such jurisdiction in or over the subject matter of such application, and the costs thereof, as to the said Court shall appear just. (Sect. 229). estate of the be included ment. The 224th section applies only to those cases in The entire which six-sevenths of the creditors, to the amount debtor must of £10, make some arrangement as to the disposal in the assignand distribution of the entire estate among the creditors. (Drew v. Collins, 6 Ex. R. 670; Tetley v. Taylor, 1 Ell. & Bl. 532; Fisher v. Bell, 21 L. J. C. P. 228.) And it has been held, that although the deed may contain a conveyance of the whole of the debtor's estate to the trustees, it is not valid within the 224th section, if it empowers them to give back any portion of the property to the debtor |