Untitled

Wellington Independent, Volume XXV, Issue 3040, 1 September 1870, Page 2

Of the many useful measures that have been brought forward this session, no one was, perhaps, so urgently required us a new Bankruptcy Bill which would take the place of the present confused and blundering act. Such a bill should have been framed on the suggestions of the various Chambers of Commerce, and submitted to the Judges of the Supreme Court, who might be cnlled upon to make rules under it. We believe that under the present act they have refused to make rules, and have stated on the Bench that they will continue to refuse as long as they can. One of them, we believe, stated in open Court that the Legislature might make him administer the law, but they could not make him understand it ! The bill brought forward by the Government, we regret to say, has not come down in that

shape that we can advocate its acceptance. Instead of repealing existing laws which are manifestly unworkable and full of defects, and commencing de novo, this bill makes only confusion worse confounded. "VW print tha second section in full : — The Bankruptcy Act 1867, is herein referred to OB " the bw\ act ;" the Bankruptcy Act Amendment Act 1868, is herein referred to as " the said amendment, act," and the said two acts are herein referred to as " the said acts." And this act a 9 well as tho said amendment act shall be rend as part of the said act. Eieie, then, to understand this act it is necessary to understand all that have preceded it. Should a creditor, therefore, wish 10 take any action in a bankrupt estate he must have all these acts open before him, and be continually referring from this act to the others to see if it does not repeal any particular clause. This will be absolutely necessary under clause five:— The fourteenth, forty-sixth, and two hundred and twenty-first sections of the said act, and the sections of the said act numbered from two hundred and forty-six to two hundred nnd eightyfive, both inclusive, and tho fifth, ninth, tenth, eleventh, and twelfth sections of the said Amendment Act, arc hereby repealed : Provided that this repeal shall not affect the past operation of the said provisions or tho validity, of anything done or suffered, or any right title or obligation, or liability accrued before the coming into operation of this act by or under such provisions; nor shall the repeal interfere with the prosecution or affect the course of proceeding under or in rotation to any petition or deed registered or filed, or order made ov thing done, under any such repealed provisions before the coming into operation of this act, ov affect any of the incidents or consequences of any such petition, deed, or order Yet, with all this complication of clauses, repealed and unrepealed, some of the most flagrant defects of the old acts which have caused useless and expensive litigation have not been sought to be remedied. We muy instance one that has been pointed out repeatedly by the Judges from the Bench. Under the 207 th section of the Bankruptcy Act, 1877, the proof of debt is thus provided for : — Every creditor of tho bankrupt may also, after adjudication, prove his debt by deposition in court or in chamber?, or before a Registrar of the Supreme Court, or Clerk of the District Court, or at any meeting of creditors, elsewhere than in court, or by affidavit, and such proof may bo on his own oath, or on that of any clerk or other person in his employment, who shall in his deposition or affidavit set forth that ho is authorised by bis principal to make tho deposition or affidavit, and that it is within his own knowledge and for tho consideration stated, and to the best of his knowledge and belief the debt remains unpaid and unsatisfled. Now, a glance at the returns of imports of the colony will suffice to show that in bankrupt estates home creditors must be largely interested. By the policy of the act it is cleaily intended that oil creditors should have a voice in the election of a trustee, and in all meetings of creditors, exactly in proportion to the amount of their claims. Under this section, however (and the new bill does not repeal it), no home creditor can prove his debt, and consequently cannot record his vote ! lie cannot be present to prove his debt mpropria persona, and no agept or attorney can make affidavit that "he is authorised by his principal to make the deposition or affidavit, and that it is within his own knowledge that the debt was incurred." We need not pursue the examination of this bill any further. What the colony requires is that one simple measure be passed dealing completely with the question, and all ocher acts repealed. We should like, indeed, to see this principle extended to legislation in other directions. It would certainly cost the country something for a little additional printing, but this would be more than saved in lawyers' bills. Unless this principle is soon adopted we shall have our laws a " thing of shreds and parches." It is surely not desirable to make it difficult to carry on any business without constant recourse to well-feed lawyers. England is now reforming her legal system from the very foundation with a view to greater certainty and simplicity ; it is surely not for us to repeat the blunders she is now seeking to undo. We trust the Government will not press such an important bill this session, and that they will endeavor during the recess to draw up one more simple and effective, and more likely to be final.