THE DEBTORS AND CREDITORS ACT AMENDMENT ACT, 1865.

Daily Southern Cross, Volume XXI, Issue 2602, 20 November 1865, Page 5

THE DEBTORS AND CREDITORS ACT AMENDMENT ACT , 1865.

Tnis recent commercial law, on the part, of the General Assembly of Now Zealand, amending the Act of 1862, camo into operation on ', the 30fch October last. The bill was introduced by Mr. Thomson, member for Avon, at the fag-end of the session, and wn* somewhat hurriedly passed through the Homo. Although •it does contain important alterations and amendments on tho previous Act, it is in lotne lespects a defective and incomplete measure. We observe that some of its rooro important provisions embody the suggestions recommended by tho Auckland Chamber of Commerce, in a report diawn up by Mr. Thomas Macfarlane and adopted by the Chamber. At tho sitting of tho Insolvency Court, on Friday last, his Houov Chief Juitico Avney diiected attention to the amended Act ; ami as considerable anxioby wns oviuced by the commercial community of Auckland to ascertain its provisions, we avo enabled, through tho courtesy and kindness of his Honor tho Chiof Justice, to puuliih tho Act in extemo for the information of the public :—: — I. (Short title) The shott titlo of this Act shall bo " The Debtois aud Creditors Act Araondmeut Act, 1865." 11. (Nature of proceedings under Act ; Act retrospective.) AH proceedings under tho said Act shall be deemed to be proceedings in bankruptcy. Every debtor whose citate shall bo brought under administration under the said Act thall bo deemed to be a bankrupt aud every estate brought under the operalion of the said Act shall be deemed to be a sequesteied estate. This Act shall have retiospectivo effect amlthall apply ns well to all estates heietofoie as well as to estates' he) eaf tor to be sequestiated and to all seqtiestratori and tiustoes heretofore appointed as well as to all who may be hereafter appointed. lir. (Definition of terms trustee or trcutees.) The terms truitee or tiustees iv this Act shall include every trustee of an estate brought under the operation of the said Act and of this Act whother he shall aob or be appointed under otder of the Com t or under any deed of assiguraent arrangement or conveyance authorised to be made or entered into or pi o tec ted by the provisions of the said Act. IV. (Court or Judge may discharge debtor in custody.) Notwithstanding anything in the said Act contained it shall be lawful for the Supietne Court or Judge thereof upon tho hearing of any petition under the said Act to order a debtor in custody to be ditcharged subject to such condition* as to tho Court orsuoh Judge shall seem fit. Y. (Powers of Judge of Supreme Court maybe exercised by Judge of District Court.) It shall be lawful for the Governor by Order in Council fiom time to time to direct and declare that all or any of tho powers by the said Act or this Act vented iv a Judge of the Snpreme Court may be exercised by the Judge of a District Court within his judicial district subject to such reservations and with such right of appeal to the Supreme Court as shall in such Older be expressed and the Governor in Council may from time to time vary or rescind any ouch order. VI. (Inspector in bankruptcy to be appointed.) It ■hall be lawful for the Governor from time to time to appoint a person or seveial persons to be an inspector or inspectors iv bunkiuptcy either for <be whole colony or for any district or districts or part or parts thereof and the Governor may from tune to time remove any such inspector and every inspectoi shall be subject to such uiles and regulations for the conduct of tho business of his office as the Governor in Council shnll fiom time to time direct. The Governor may fix such salaries as may be necessity to bo paid to any inspector under this Aot aud such salaries so fixed shall be payable out of the funds to he piovided under the twenty-eighth seotion of this Act. VII. (Inspector to keep books and accounts ) Eveiy inspector under this Act shall keep such books and accounts as shall be necessaiy or as the Governor shnll direct for showing the true state of affairs of every estate in bankruptcy under his oare aud shall keep tbe same open for inspection by and make euch returns to the Governor the Supreme Court and otherwise as shall by auy »uoh regulations be required. VIII. (Older for sequestration may be deolaied a vetting ordor. Effect of such order. Such order retrospective; and protective of debtor. Comt or judge may discharge debtor, or refuse or suspend discharge.) Every order for the sequestration of a debtor's estate under the said Act may declaie that such order shall be a vesting order and the effect of every order so declared to be a vesting order shall bo immediately if made upon tho petition of the debtor and if made upou tho petition of a creditor then upon the filing of an nffidiivit of service of notice of the petition on the debtor to vest absolutely all the real and personal estate whether legal or equitable including nil choses in action of such debtor in the sequestiator ad inteiira and upon the appointment of a trustee or trustees then iv tbe trustee or trustees as effectually as if the same hid been duly conveyed assigned or tiansferted by such debtor to such sequeslrator or trustee 01 tiustees aud iv the case of choses iv actiou so as effectually to enable the lequestiator or tiustee or trustees as the case may be to maintain actions suits and proceedings respecting the same in his or their name or names ami every such order detained to be a vesting oider shall have iclatiou back to the piesentation of tho petition or the filing of the affidavit ai the case may be and shall be sufficient nnthority without any further or other oider or warrant to and it shall be the duty of tho sequestrator or truateo or trustees named theiein to seize aud if necessary to remove the property of the bankrupt and for that purpose if necessary to break open any house shop warehouse door ti uuk or chest of any bankrupt where such bankrupt or any of Ins property is or is supposed to bo and if the banki upt is m prison or custody to seize and removo any property of the bankupt (necessary wonring appatel only excepted) in the custody or possession of such binkrupt or of any other person iv any prison or place where such bankrupt may be and every such order shall without further or other order protect the debtor from arrest otherwise than under a Judge's order and if the debtor shall be in prison or custody he may apply summarily to the Court or a Judge thereof for his dischaige and the Court or Judge mny discharge snch debtor or otherwise deal with the application as the justice of tho case may require. Notsvithstauding anything iv the said Act or iv this Act contained it shall be lawful for tho Court or Judge to grant refuse or suspend the order of discharge of a debtor as he may think fit. IX. (Provision fordebtorapplyingto Court to take petition off file and annul proceedings. Effect of order to annul.) In the case of a creditoi's petition the debtor may within forty days after notice of the petition filed give seven clear days' notice to the petitioning creditor of his intention specifying tho grounds of his intended application in such notice to apply on a certain d»y and may on such day apply accordingly to the said Court or a Judge thereof to take the petition off the file and to annul all proceedings under the t>amo and the Court or Judge may upon hearing tho debtor and petitioning creditor if the Court or Judge shall think fit order the petition to bo taken off the file and ».he proceedings to be annulled accordingly. And the effect of such order shall be to annul such proceedings accordingly. And such order shall have the effect of revesting all real and personal estate inoluding such choses in aotion as aforesaid in the debtor as effectually as if no petition had been filed but without prejudice to any acts transactions matters or things done meantime in pursuance of such petitiou or any order or proceedings thereupon. X. (Duties of Registrars of Supreme Court.) It shall be the dnty of every Registrar of the Supreme Court immediately upon every sequestration or order upon petition under the said Act forthwith to furnish or cause to be furnished to the Inspector in Bankruptoy for the colony or the district as the case may be full particulars relating to such sequestratiou or order and the estate to whioli'the same' relates and from time to time as occasion shall require to fur- J ni«h like particulars to such inspector fco as to supply such inspector with full information of all matters and things whatever relating to such estate. , . . , , XI (Accounts to be rendered by sequestrator and trustees.) Every sequestrator and trustee shall within suoh time and in such manner as the inspeotor may from time preieribe in that behalf render to •neb. inspector full and .exact statements of all' accounts transactions matters nnd thiDgs whatsoever in any way, relating to the sequestrated) estate and shall from time to time produce vouchers for hu account* and shall attend the inspector w.ith the samo at such tiroes as shall be appointed by him in that behalf and do all other acts whatsoever which shall from time to time be prescribed m that behalf either by the inspector or by any general regulations so as to explain to the inspeotor all matters and things whatsoever in any wise relating to the sequestered estate or the conduct of the debtor or anything in anyway relating thereto. - , ,'' XII. (Moneyi to be deposited in bauk.) Every ■equeatrator and trustee under the said Aot shall deposit all moneys which he shall receive on account of every eitate in suoh bank as the majority of the creditor* in number and value present at any meeting