The Manawatu Standard (PUBLISHED DAILY.) Suivant la verite. THURSDAY, DECEMBER 27, 1883. THE NEW BANKRUPTCY ACT.

Manawatu Standard, Volume IV, Issue 24, 27 December 1883, Page 2

Manawatu Standard (PUBLISHED DAILY.) Suivant la verite. THURSDAY, DECEMBER 27, 1883. THE NEW BANKRUPTCY ACT.

A telegram from Gisborne conveys the information that there are numerous small bankruptcies there m anticipation of the new Act. According to the new Act, which comes into force on and after next Tuesday, the debtor will find his position will bo more straightened than it is at presont. He will no longer be able to file his declaration, attend pro forma his creditors' meetings, and obtain hii discharge m a few w eeks as a matter of coHrse. He will now be adjudicated on petition only. His statement will be delivered to the assignee at his own office, and his interim proteqtion from legal process will apparently depend upon this being properly done. Nor nan he, as a matter of course/ apply for his discharge. He must firafc undergo a public examination at a sitting to be specially fixed by the Court. Notieo of such a meeting is to be advertised by the assignee and notified by postcard to the creditors outside of the district. Any proved creditor may examine a debtor without previous notice. The examination may be adjourned, if necessary, from time to time, and 'will not be concluded until the Court declares, by order, that the debtor's "affairs have been sufficiently j investigated and that his examination i is finished." Before the debtor can apply for his discharge either the Court must have made an order closing the bankruptcy or he must produce a resolution of assent — a special resolution — agreed to by a majority m number representing three-iourths m value of the entire body of creditors. If a sufficient number of creditors does not appear at the meeting, then the Court is authorised to accept a certificate from the assignee. Any creditor may attend to oppose the discharge without giving the debtor notice. On the other hand, however, the Court has power to adjourn the hearing, and may require the opposing 1 creditor to furnish the debtor with a written statement of his objection to the discharge. As the Bay ot Plenty Times points out., tin's simply means delay, and possibly delay to an unfortunate debtor when time i. J - probably all impoitant to his future prospects. Outcontemporary proceeds to observe that supposing all this done, the Court may still attach conditions m order to granting a discharge. These conditions are of two kinds. They may either render specifically liable any increase of property of which the debtor may afterwards become possessed, or provide geneniUy that bis discharge shall not take effect uotil he has paid or secured to the satisfaction of his creditors a dividend to be specified m the order. The alternative system of a composition at present recognised is not absolutely abolished, but a composition will no longer be a matter to be initiated by the debtor. It will now rest either with the creditors, m the first instance, or the Court. When an order of adjudication has been made the creditors may, at a subsequent meeting, move to accept a composition ; this if confi n>ed by the proper majority m number and value will be binding. Or the Court may, when granting an order of discharge, attach to it as a condition the payment of a specified composition. Only m these cases will a composition be valid. While this is t 1 c manner of dealing with a presumably honest debtor, the new Act gives the Court a summary jurisdiction for fraudulent cases, and it may there and then adjudge him to be imprisoned for any term not exceeding twelve months, with or without hard labour.