THE NEW BANKRUPTCY BILL.

New Zealand Mail, Issue 913, 30 August 1889, Page 15

THE NEW BANKRUPTCY BILL.

The new Bankruptcy Bill, which has been circulated, 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 of the suggestions of the various Chambers of Commerce, most of which have been acted npon. 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-Council, the limit of their jurisdiction being cases in which the liabilities exceed £3OO. With respect to punishment of offences, what is proposed is as follows :—ln the first place it is made the duty of the Assignee to institute proceedings if he thinks an offence has been committed. He is to lay the facts as be thinks they can be proved before the Crown Prosecutor, who may certify that thore 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 misdemeanours—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 be borne by the Crown, unless the Judge directs them to be paid out of the estate. To protect the 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 course, 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 misdemeanours, and therefore indictable offences ; and provision is also made for punishment of bankrupts who within three years of bankruptcy have made payments out of the regular course of business nut 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 labour. 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 £SO to £2O. It is provided that dis-

tress cannot be proceeded with after adjudication. Voluntary settlements made within two years of bankruptcy are absolutely void, and, unless the settlor 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. A Creditor secured by bill is to produce the same and value the security for voting purposes. 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 his security before the sale. If the bankrupt’s tools of trade, furniture, and effects -do not reach £25, the amount of allowance i 3 not to be made up out of the estate. An order of discharge may be revoked within two years of bankruptcy if circumstances come to the knowledge of the Court which, if known at the time, would have influenced it in connection with the order.