The New Bankruptcy Bill.

Gisborne Standard and Cook County Gazette, Volume III, Issue 343, 27 August 1889, Page 2

The New Bankruptcy Bill.

The new Bankruptcy Bill contains 171 clauses, and is largely a consolidating measure, although it contains many important changes in matters of detail. In a memorandum attached recognition is made nf the suggestions of the various Chambers of Commerce, most of which have been acted upon. An important feature of the Bill is that power is given to Resident Magistrates to Act as Judges in Bankruptcy when empowered by the Governor-in-Counoil, the limit of their jurisdiction being cases on which the liabib'ties do not exceed £3OO. With respect to the punishment of offences what is proposed is as follows In the first place it is made the duty of the Official Assignee to institute proceedings if he thinks an offence has been committed. He is to lav the facts as he thinks they can be proved before the Crown Prosecutor, who may certify that there is a good prima facie case. If he is of that opinion, the Assignee will then lay an information, and the whole proceedings will be conducted by the Crown officers as in an ordinary criminal case, all offences being treated as a misdemeanor, that is to say, being indictable, and therefore having to be tried before a Judge and jury after a preliminary hearing before Justices, The whole expense of the prosecution, including the preliminary proceedings before the Justices, will have to ba borne by the Crown, unless the Judge directs them to be paid out of the estate. To protect the Official Assignee, it is provided that no action for malicious prosecution shall lie against an assignee who acts upon a certificate from the Crown Prosecutor. This plan will relieve the creditors from expense and responsibility, while it will give a fraudulent bankrupt the same trial as a man tried for any other kind of crime. It

will, of |oourse, still be open to any creditor to lay the information himself. Provision is also made enabling the judges to deal summarily, if they think fit, and the prisoner consents, the limit of their power being to give six months’ imprisonment. A large number of offences which in England are only made grounds for withholding a discharge are made a misdemeanor, and therefore indictable offences, and provision is also made for punishment of bankrupts who within three years of their bankruptcy have made payments out of the regular course of business, not being for ordinary expenses of themselves and family. Gambling is also made a punishable offence under the heading “Rash or Hazardous Speculation.” The limit of punishment for contempt of Court is fixed at six months’ imprisonment with or without hard labor. Married women are included in the Bill as well as aliens. Jurisdiction in bankruptcy is given to Supreme and District Courts, The Bill does not constitute a separate Court of Bankruptcy. The Court may direct trial by jury. The amount of debt necessary for a petitioning creditor is reduced from £5O to £2O, provided that distress cannot be proceeded with after adjudication. Voluntary settlements made within two years of bankruptcy are also void; and, unless the settler can prove solvency, void if made within five years of bankruptcy. Bills of sale are made void only as to past advances, If made within six months of bankruptcy. Debts incurred after the creditor has received notice of an Act of bankruptcy are not provable. Proofs will only be accepted within a month of adjudication To prevent a mortgagee buying in a property for a mere trifle, he must put a value on this security before the sale. If the bankrupt's tools of trade, furniture, and effects do not reach £25, the amount of allowance is not to be made up out of the estate, and the. order of discharge may be revoked within two years of bankruptcy if circumstances come to the knowledge of the Court which known at the time would have influenced it in connection with the order.