UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY THE LAW AND PRACTICE BANKRUPTCY, AS ALTERED BY THE NEW ACT, (6 Geo. 4. c. 16.) A COLLECTION OF FORMS AND PRECEDENTS IN BANKRUPTCY, PRACTICAL NOTES. By EDWARD E. DEACON, Esq. OF THE INNER TEMPLE, BARRISTER AT LAW. IN TWO VOLUMES. VOL. L THE LAW AND PRACTICE OF BANKRUPTCY. LONDON: PRINTED BY A. STRAHAN, l,AW-PRINTER TO THE KINg's MOST EXCELLENT MAJESTY J FOR J. AND W. T. CLARKE, LAW-BOOKSELLERS AND PUBLISHERS, PORTUGAL-STREET, LINCOLN'S INN. 1827. «^V T ^ SIR NICOLAS CONYNGHAM TINDAL, TO HIS MAJESTY S SOLICITOR GENERAL, THIS WORK IS INSCRIBED, AS AN HUMBLE BUT SINCERE TRIBUTE OF ESTEEM AND ADMIRATION FOR THOSE LEGAL TALENTS, AND THOSE PRIVATE VIRTUES, WHICH HAVE GAINED HIM THE UNIVERSAL RESPECT OF HIS PROFESSION, AND HAVE DESERVEDLY RAISED HIM TO THE EMINENT STATION HE OCCUPIES AT THE ENGLISH BAR. A 2 -7 , Richardson v. - 29 Brady, Skinner v. - - 571 Vincent v. - - 622 iJUWllCOO, JJ^A. IJclllC Bowser v. Hughes Bowsher, Davis v. Boyd, Ex parte Boyle, Ex parte Boylston, Langston v. Boyter, Dodsworth v, Bozannet, Ex — '^~ Bracey's case Bracey INDEX OF THE CASES CITED. XXV Page Bradyll V. Ball - - 266 , Duck V. - - 267 Braham, Brix v. - - 625 , Mead v. - - 188 Brailey, Elson v. - - 793 Braithwaite, Southcote v. - 602 Bramah, Wheeler v. - 396 Bramhall v. Cross - 751 Bramley v. Mundee - 42. 35 Brand v. Boulcot - - 330 Brander, Bosvill v. - 372. 376 Brandon v. Brandon - 215. 372 ■ V. Curling - - 265 , Millikin v. V. Pate V. Robinson Brandram v. Wharton Bromley u. Child Brassey v. Dawson Bravo, Shuttleworth v. Bray, Ex parte , Gibson v, •^. u. Hine Breeds, Walace v. Brenchley, Ex parte Brett u. Levett Bricheno v. Thorp Brickland v. Newsame Brickwood v. Miller 401. 634. 760 Bridgen, Coppendale v. 694. 749. 780 Bridges, Ex parte , Hogg u. King u. - 38 - 386 - 391 - 242 - 494 - 799 325. 339 - 414 - 872, 873 - 454 - - 672 96, 97. 762 - 1006 - 88 194. Brigg, Halton v. Bright, Ex parte - Brightwen, Ex parte Brind v. Bacon Brine, Ex parte - Bristow u. Eastman Bristow's case - Britain, Doe v. Brix v. Braham - Brockhurst, Ex parte Brocklesby, Smith v. Brockliss, Ex parte Brocksopp, Ex parte Brome u. Robinson 226 - 129 - 749 - 486 - 1002 - 202. 856 - 794 84. 103. 822 - - 325 - 359 - 362 - 625 - 842 - 876 210. 230 - 327 320. 394 Page 270. 283. V. Goodere 9, 10. 140. 147. 193. 269, 270. 273. 546. 548, 549. 577. V. King , Primrose v. • , Smith V. Brooke, Bottomley v. , Ex parte V. Hewitt Brookes, Ex parte ■ V. Bourne V. Lloyd • V. Mason - 768 - 326. 328 - 568. 570 - 712 - 256 - 578 - 42. 224 - 885 - 228. 285 V, ivicison - - 888 V. Rogers 250. 254. 291 , Sowerby v. 208. 676. 696 Broomhead, Smith v. - 135 Brough, Ridout v. - - 700 Brown, Ex parte (1 Atk.) - 655 , Ex parte (C. B. L.) 218. 257. 290 -, Ex parte (1 G. & J.) 248 -, Ex parte (1 Rose) 130. 565. 580. 809. -, Ex parte (2 Rose) 206. 526. 528 Bromley's case - 528. 530, 531 -, Ex parte (1 Rose) 130. 565. 580. 809. 853 -, Ex parte (2 Rose) 206. 526. 528 -, Ex parte (2Swanst.) 818 -, Ex parte (2 Ves.) 124. 126.810 -, Ex parte (6 Ves.) 642 -, Ex parte (15 Ves.) 84. 310 -, Ex parte (15 310 -, Ex parte (IV.&B.) 663 -, AlsoD V. . - Q2B -, Alsop V. - V. Bellaris - V. Bullen -, Burn V. - - 480 - V. Chapman - 136 - V. Clark 373, 374. 378 -, Cuming V. - - 466 - V. Davies - -, Eastwood V. -, Evans v. - V. Forrestall -, Fowler V. -, Gee V. - V. Hankey 441 504. 724. 787 252 406, 407 551. 555 - 777 - 98 - 243 - 478 XXVl INDEX OF THE CASES CITED. Brown v. Heathcote 418 V. Jones ., Patten v. , Phillips V , Potter V. .. , Tindal v. m ■ V- Turner . V. Watts _ D. Williams Browning, Hovill v. 690 321. 372. 375 30. 34'. 37. 767 - 279 - 605.618 - 243 - - 252 90.210.245 - 687 609, 610. 676. 684 . , Ludlow V. - - 438 Bruce, Ex parte 202. 204. 501. 550 Bruges, Smallcombe v. - 763 Bryan, Wildbore v. - - 884 Bryant, Ex parte (1 G. & J.) 585. 594. 850 . , Ex parte (1 Mad.) 160 . , Ex parte, (1 Rose) 5. 89. 808. , Ex parte (2 Rose) 323. 813. 824. 827. 852. 857. 875. V. Withers 96. 109. 190. 773 - 25 - 250, 251 - 404. 408 16. 433. 435 - 607 - 233 - 300 - 88 - 812 - 373 250. 257 - 109 268 872 286 64 566 390 Brydges, Hurd v. Brymer, Ex parte Bryson v. Wylie Buchanan, Ex parte . , Smith V. - Buckington v. Shepton Buckland, Ex parte V. Newsame Buckle, Ex parte . , Harrison v. Buckler v. Buttivant - Buckley, Ex parte - ' ■ V. Taylor - Buckmaster, Lambert v. Bucknall, Master v. - V. Roiston Buckner, Ex parte - Bugby, Doe v. Bullen, Ex parte , Brown v. 127 325. 868 BuUer, Ex parte Bullock, Ex parte 164 811. 504. 724. 787 125. 146. 810 - 22 Bullock, Rex v. Bulmer, Ex parte Bulteel, Ex parte - Burchall, Ex pane - Burdett v. Willett - Burdon v. Dean - Burfitt, Hicks, v. Burgess, Ex parte , in re , Tappenden v Page 95. 773. 775. 799. 817 305 - 203 - 24 - 427 - 373 - 69 773. 806 - 90 42. 67. 69,70 158 Burlton, Ex parte - Burn, Ex parte 250. 252. 310. 421. 500. 642 , Bentall v. V. Brown Burnaby, Ex parte Burnaby's case Burnell, Walker v. Burning, Bayley v. Burr V. Freethy Burra v. Clarke Burrell, Ex parte , Bamford v. XI. Jones Burridge v. Burgis Burrow's case Burrow, Ex parte V. Jemino , Walker v. Burt, Ex parte Burton, Ex parte — Bank, Ex parte — , Atkinson v. — V. Chatterton ■, Sampson v 1002 - 480 - 639 - 191. 807 - 425. 783 - 693 - 750 - 737 - 664 176, 177. 194. 596 - 902 - 243 - 119 - 228 - 605 - 866 - 792 17. 423. 605. 625 16. 435 - 900 Burwood, Ex parte V. Felton Kant 88S - 699 - 1007 - 999 102. 173 V. Kant - 102. 173 Bury, Ex parte 344. 839, 840. 842 Buscall V. Hogg - - 26 Bush, Ex parte Busk u. Davis V. Walsh Buss V. Gilbert 872 - 455 - 308 96. 197. 281 INDEX OF THE CASES CITED. XXVll Butcher v. Easto V. Churchill Butler, Ex parte ■ V. Carver V. Cooke , Davison v. •, Emmet v. - V. Richardson , Singleton v. -, Southey v. V. Woolcot Butlin, Ex parte Butts, Ex parte . V. Bilke 126. Butterfill, Ex parte - Buttivant, Butler v. - Buxton, Ex parte ■ V, Lawton Byas, Ex parte Bygrave, Bolland v. - Byne, Ex parte Byron, Ex parte , Creswell v. Page 67.94 - 272 226. 359 370 738 792. 795 751.753 - 796 - 438 - 444 - 678 - 462 - 658 568. 571 554. 613 194. 315 250. 257 - 335 - 828 321. 437 430. 482 161. 849 - 836 - 875 Cadell, Mace v. - - 427 , Viner v. 31. 38. 417- 438 Kennett 64 - ib. - 546 - 389 - 623 608. 623 216. 222 Callowell V. Clutterbuck - 213 Cadogan Lord v Cailland, Estwick v. Calcot, Ex parte Caicraft, Cooke v. ■ V. Swan Callen v. Meyrick Calliford, Holland v. Campion, Saville v. V. Cotton Candler v. Candler Calvert, Clark v. 'Calze, Robson v. Camden v. Anderson Cameron v. Smith — — — , Tovi^er v. Campbell, Ex parte , Armour v. • , Jameson u. , Joy V. , Kitchens. 746. 732, 733 V. Walker - 334 . , Wright V. 463. 465 386. 555 565. 568 - 642 - 90 - 614 221. 789 - 606 - 238 - 436 Cane v. Coleman Cann v. Reed Cannon, Allen v. - - Cantril v. Graham Cape, Gravenor v. Capell, Attorney General w Caponhurst, Ex parte Capot, Ex parte Capper v. Desanges Capron, Clarke v. 9. 11. 182. 196 501 Carling, Ex parte Carlton v. Leighton Carmichael, Wilkins v Page 487 73 897 78 325 39 599 860 695 827 183 53 Carpenter, Harford v. V. Marnell Carr v. HinchlifF V. Shaw V. Taylor Carrington, Ex parte Carrick, Tait v. Carrol, De Tastet v. Carron, Field v. Carstairs, Ex parte . V. Bates Stein 21, Carter, Ex parte V. Abbott - V. Barclay , Davenport v. V. Dean , March v. , Park >v. , Parker u. - 1005 350. 364 484, 485, 486 - 202 - 743 - 718 - 863 373, 374. 714 818 751 446 - 862 - 288 - 433 - 303. 828 173. 510. 822. 828. 856 - 793 692. 737 - 684 Cartwright, Ex parte Caruthers, Ex parte Carver, Butler v. Case, Falkner v. , Hartley v. Casey, Wilkins v. - Cash V. Young Caslon, Rolfe v. Cassidy, Ex parte 34 881 872 705 92 88 738 421 - 243 677. 681 - 680. 686 - 257. 290 151. 523. 525 370. 405. XXVIU INDEX OF THE CASES CITED. Castell's case - 59.114.87 Castell, Ex parte Castle, Ex parte , Wright V. - - Caswell, Ex parte Cathcart v. Blackwood 359, Cato, Easum v. - - Caton, Ex parte - 190 Cator, Ex parte - 230 . -, Ramsbottom v. Cave V. Aaron , Cogan V. - Cawkwell, Ex parte 69. 75. Cawthorne, Ex parte 137. Cay, Willets v. - - Cazenove v. Prevost Cecil V. Plaistow Chace, Antram v. - - Chadwick, Ex parte Chambers, Haywood v. , — , Marsh v. Champernoun v. Scott Champion, Ex parte 263. Champney, Ex parte Chandler, Ex parte . . V. Gardiner Chandless, Baikie v. Chantler, Kensington v. . , Newton v. Chapman, Brown v. ^ V. Clarke — V. Derby _ V. Gardner , — , Hall V. , Koopes V. — • V. Lamphire — . ■ — . V. Pickersgill V. Turner 269 Chappell, Ex parte Charles, Ex parte Charlton v. King Charman v. Charman Charnock, Moss v. Chase, Lewis v. — — , Phillipson v. 96. 125. 419. Page 870 1003 875 900 215 360. 594 707 ,306 ,324 631 900 886 154 205. 586 374 402 299 765 191 571 718 874 .549 838 653 388 901 441 67 136 873 700 793 752 801 25 136 487 998 275 614 353. 549 691 571 891 Chase v. Westmore Chater, Ex parte Chatterton, Burton v. Chaytor, Gabboot v. Cheap V. Pop ham Cheesewright, Ex parte Cheesman, Ex parte • Chenoweth v. Haley Cheyne, Slaughter v. Child, in re , Bromley v. , Currie v. - Chilton, Ford v. -v. Whiffin 117 270. 255 Chions, Ex parte Chippendale v. Tomlinson Chitty, Cooper v. Christie, Hussey v. - — , Ex parte , Maltby v. Church, Bishop v. Churchill, Ex parte , Butcher V. Clagett, George v. Clanricardc; Ex parte Clare, Ex parte Clark, Bradley v. V. Chapman V. Donovan V. Gorman i , Greening v. V. Hoppe -i V. Ryall V. Taylor — , Tomlinson v. 746 504. 336. 428. 257. 882. 674. -, Trinity House v Clarke, Ex parte (3 Bro. , Ex parte (1 C. B. , Ex parte (4 Ves V. Askew 95. , Brown v. 373. V. Capron 9. 11. V. Calvert V. Clarke - ■y. Clement ) - L.) •) 778, 374. 182. 386. Page 478 163 883 876 863 119 478 49 611 301 283 796 626 291 427 551. 555 748 485 709 782 711 866 272 717 290. 500 451 675 873 888 900 413 620 748 881 891 486 244 845 273 779 378 196. 501 555 553 100 TNDKX OF THE CASES CITED. XXIX Page Clarke v. Cock - - 246 , Doe V. 125. 140. 356. 391 , Fj^ds V. V. Hume , Stafford v. V. Wisdom Clarkson v. Doodds , Shee V. Claridge, Hollis v. - Claughton v. Leigh Clavey v. Hayley Claxton, Adams v. Clay, Ex parte Clayton v. Gosling Cleasby, Morris v. Clendon, Ambrose v. 60. Clent, Nicholls v. Cleeve u. Mills Close V. Waterhouse Clowes, Ex parte Clunes, Ex parte Clutterbuck, Callowell v Coare v. Creed Coates, Bouteflour v. Cobb V. Symonds , Woolley V. Cobham, Ex parte Cock, Clarke v. V. Goodfellow , Thackwaite v. Cockayne, Ex parte Cockerill v. Owston Cocks, Ex parte Cockshott, Ex parte 245 - - 394 58. 425. 790 - 25 - 760 - 715 - 873 - 538 - 62 - 211 - 648 - 1000 - - 715 89. 96. 770 - 477 - 400 - 483 640. 655 ' 398 213 - 201 - 238 28. 78. 93 - 601 - 647 - 246 71. 366 - 410 - 581 238. 601 263. 549 75. 290 V.Bennett 570. 571. 626 - 800 Coggan V Codd, re Coffin, Smith v. Cane Humphries v. Cohen, Ex parte V. Bell V. Cunningham V. Templar Coker, Farewell v. Coldwell V. Gregory Cole V. Bennett 350. 367 - 886 - 778 - 534 - 862 100. 807 791. 868 - 873 - 418 - 876 ■ V. Davies 63, 64. 693. 746 Coleman, Cane v. Coles, Ex parte ' i V. Barrow • V. Lovell , Martini v. V. Robins V. Wright Colkett V. Freeman Collett V. De Golls V. Wollaston Page - 78 789. 827. 837. 855 - 556 570. 628. - 480 Collins V. Forbes V. Nicholson ■ V. Martin - 678 - 681 41.57 - 208 - 728 - 426 - 888 429. 432, 433 - 263 - 790 - 622 - 374 - 22. 37 , Lowndes v. Collinson v. Hillear Colman, Nowers v. Colmer v. Milner Colt V. Nettervill Coming, Ex parte 198. 202. 205 210. 332. 357 Comyn, Linging v. - 190 Congalton, Ex parte - 675 Conington, Iveson v. - 902 Constantia, re - - 450 Conway, Ex parte 116. 808. 898, 899 Cood V. Pollard Cooke, Ex parte 128. Butler V. V. Calcraft Haviland v. Marsh Coombe, Ex parte Combes's case Cooper V- Chitty , Freen v. V. Machin V. Milburn V. Pepys , Read v. , Rust V. V. Wyatt 97. 240. Cooper's case Copeland v. Stein 480, ■■ v. Stephens Copeman t>. Gallant - 488 217, 218 792. 795 - 389 - 619 - 827 202. 206 526. 528 746. 748 - 742 779. 788 - 884 498. 727 775. 842 64.442 - 391 - 316 681. 691 320. 393. 598, 599 - 436 XXX ]NDFA' OF THE CASES CITED. Copland, Ex parte Coppendale v. Bridgen Corden, Philpott v. Cornford, Lowndes v. Corrie, Onslow v. Corsbie v. Oliver - , Vansandau v. Corsen v. Dubois Corser, Ex parte Corry, Ex parte Cory V. Gertchen Coryton, Hoare v. - Cossart, Ex parte Cossens, Ex parte 150. Cosser v. Gough Cosh, Tucker v. Cotesworth, Atkinson v. Cottingham, Neale v. Cotton, Campion v. - V. Daintry - ■ , Rex V. - Cottrell, Ex parte -i;. Hooke Coulbourn, Ex parte Coulson V. Hanimon Councell, Thompson v. Court, Martin v. Courthope, Gibson v. Cousins, Oilman v. - Coutts, Gillespie v. Coverley u. Morley Cowan, Ex parte 7. 1 Coward, Dickenson v. Cowell V. Simpson - Cowie, Masterman v. Cowley V. Dunlop 250. , Litt V. Cowper's case Cox, Ex parte , Biggs V. V. Liotard V. Morgan , Porter v. Page - G48 80. 694. 749 - 609 555. 803 - 395 - 784 187. 255. 293. 597 - 869 - 300 342. 344 - 443 - 764 - 577 158. 517. 530 - 446 365. 375 486 - 399 - 73 - 32 - 313 - 9. 302 227. 230 - 589 - 238 - 544 - 290 - 395 - 760 - 420 609. 619 1. 13. 16. 330. 832 - 783 - 873 - 303 257, 258. 600 417.458 - 567 - 838 740. 753 - 264 - 677 - 752 Coxe V. Harden - 458 Coysegame, Ex parte 373. Craddock, Ex parte Craggs, Ex parte - 16 Craig, Kinloch v. 453. 460. Craven, Austin v. - V. Ryder - 459 Crawford, Ex parte V. Attorney Ge- I'age 468 731 35 .173 477 454 .467 69 neral Wild Crawley v. Impey 167, 168. Crawshay, Bishop u. 475.680. V. Collins V. Eames V. Homfray V. Moule 325 Creed, Coare v. - - Cremer, Wicket v. Cresswell, Byron v. Crew, Ex parte - 127. , Selby V. - Crickett, Harvey v. Cridland, Ex parte 130. 516 Crinsoz, Ex parte - 183 Crisp, Ex parte 88. 123 V. Perritt 88. 123 V. Pratt 25. 365, Crooke v. Edwards - 799. Crookshank, Heathcote v. V. Thompson Crome, Mavor v. - 444. Crosby v. Crouch Cross, Dowton v. - V. Fox , Osbaldeston v. , Bramhall v. - , Smallcombe v. Crossby, Ex parte - Crosse v. Smith Crossley, Ex parte , Bleasby v. V. Parker Crowder, Ex parte V. Shee Crowe, Hawse v. 239. 310 90. 97. 769. 792 882 558. 860 .686 ,636 455 483 30 201 623 875 811 569 632 812 185 652 128 375 .801 297 290 .678 446 763 793 884 751 693 252 243 .500 762. .997 881 821 888 1002 INDEX OF THE CASES CITED. XXXI 527. 531 512. 817 116. 147 14. 829. 834 - 542 490. 694 - 810 195 Jfage Crowley, Harlow v. - 555. 803 Crowley's case 10. 151. 524. 526, Crowther, Ex parte Crudwell, Ex parte Crump, Ex parte ■ V. Taylor - Crumpton, Rex v. Crundwell, Ex parte Cruttenden, Beardmore Crutwell V. Lye Culliford, Holland v. Cumming v. Brown ■ — V. Roebuck Cundall, Ex parte Cundy, Ex parte - CunlifFe, Waring v. - - -z^v Cunningham, Ex parte - 581 , Cohen v. 100. 807 , Murphy v. 893 Curling, Brandon v. Currie, Ex parte u. Child , Smith V. Curteis v. Willis - Curtis, Ex parte ■ V. Ashton , Barclay v. -, Field V. — V. Perry Cust, Ex parte , Hope V. - - 644 Cuthbert, Bank of Scotland V. - 348. 400. 604. 606 Cutten, Ex parte 130. 132. 554. 822 224. 291 ! - 389 j - 372! - 466 386. 555 191. 590 , - 31 270 581 Dally V. Smith Dal ton, re , Bourdillon v. Danby, Elliott v. Daniel, Ex parte D'Aquila v. Lambert Darby v. Baugham V. Smith Darley, Em den v. , English V. Darnton, Doe v. Daubigny v. Duval Daubuz, Pye v. Davenport v. Carter David V. Ellice Davidson, Snook v. Davie v. Mitford Davies, Ex parte 265 577 - 796 - 58 - 57 257. 837. 899 - - 9 - 723 - 793 - 642 - 665 644 D Dacie, Barker v. Da Cossen, Judine v. Daggett, Ex parte Daintry, Cotton v. Dale, Ex parte . V. Birch , Drayton v. Dallas, Thornton v. - 897 - 52 - 96 - 32 404. 417 - 388 551. 608 - 610 Page - 277 - 537 - 320 349. 776 304. 306 450, 451 537. 539 380. 416 - 876 239. 243 - 709 48Q - 357 - 684 - 1003 - 482 517, 518. 527 - 537 , iZiX pcirce - - ^av , Bennett v. 222. 371. 377 , Brown v. - 252 , Brown v. - ^^^ , Cole V. 63, 64. 693. 746 -, Selkrig v. - 348. 400 - - 567 Davis, Ex parte V. Arnott V. Bowsher , Busk V. - - , Drapers' Company v. , Goose V. - , Harmer v. 105. 765 — V. Living — , Moggridge v — , Ray V. — V. Reynolds --, Rex V. — , Saxton V. — , Shepley v. V. Trotter 601 482 455 881 324 766. 801 425 197 731 - 460 280. 723 327. 560. 891 - 455 - 515.537 ■ V. irotier - t>li>. i)3/ , Whitworth v. 369. 561. 728 ion. F.v nartp 9Aii. 8AA Davison, Ex parte — — — , Barney v. - V. Butler Dawe V. Holdsworth Dawson, Ex parte - — — — , Brassey v. , Row V. , V. Sampson 245. 844 - 74 751. 753 - 94 - 510 - 494 - 423 - 858 xxxu INDEX OF THE CASES CITED. Dawson, Sellas v. Day, Ex parte , Wilson V. Dayrell, Rooke v. , Twort V. Page 751, 752 221. 236. 495 - 65. 67 - 490 - 871 - 509. 515 - 789 288. 645 - 373 - 34 87. 212 760, 761 743 Dayrie, Ex parte Deady v. Harrison Deakin, Bedford v. Dean, Burdon v. , Carter v. Dearlove, Parslow v. Decharme v. Lane De Cosson v. Vaughan Deey, Ex parte 251. 273. 549 , Stracey v. - - 428 Deeze, Ex parte 83. 701. 703 Deffle V. Desanges - 50. 53 De Fries, Ex parte - 537 De Golls V. Ward - 95. 728 . , Collett V. - 208 De la Preuve v. Due de Biron - - 863 De la Reise, Whittingham v. 607 Delauney v. Barker - 414 De Leira %). Edwards - 480 Dellow, Boden v. 163. 729. 790 Demainbray v. Metcalf 21 1 De Mattos, Worsley v. 65. 406 Demendez, Holyland v. Dennett, Kirkpatrick v. Denton v. Rodie De Paiba, Vanderheydon v. De Ponthieu, Jollet v. Derby, Chapman v. Desanges, Capper v. . , Deffle u. «_ — , Thomas v. 392 - 645 255 291 - 402 - 700 - 53 - 50. 53 682. 694. 748 Desanthus, Ex parte - 822 Desborough, Vandenanker v. 356 Descharmes, Ex parte 266 De Silva, Stonehouse u. 377-731 De Sylva, Smith u. - 635 De Tastet, Ex parte (1 Rose) 180. 241.316,317.343.647.652 ( 1 V. & B.) 182. 837 u. Carroll - 446 Page De Tastet, Stockfleth u. - 788 1). Walker - 616 Devine, Ex parte - - 266 Devisne, Nightingale v. 734. 739 Devon x). Watts - 65- 72 Devonshire, Foxcroft u. 479, 480 Dew, Ex parte - • - 548 Dewdney, Ex parte (2 Rose) 500 , Ex parte (15 Ves.) 9. 41. 88. 98. 123. 125. 128. 140. 177. 242. 636. 807. Dewey u. Bayntree Dexham's case Dibden, Doman u. Dicas, Lodge u. ■, Phillips w. Dick V. Lumsden Dickason, Bize u. Dicken, Ex parte Dickenson v. Coward Dickson, Ex parte — v. Evans Diggell n. Wilkinson - oo;? Diggens, Tamplin v. 675. 699 Dillon, in re - 11.265.857 - 624.626 - 64 - 91 - 264 - 645 568, 879. - 468 - 714 - 216 - 783 - 185 - 719 889 675. 699 ■ V. Bailey ■ V. Diiiiey Dimsdale u. Eames , Whitwell V. — — — — , vviuiwen Dinwiddle v. Bailey Dister, Ex parte - - 828 Dixon, Ex parte 19.172, 173.542 V. Baldwin 448. 454 - 238 63. 772 - 721 828 «. Ewart 363.419.691 V. Hurst - - 886 ' u. Olmius - - 377 \u Plant - - 884 , Thornton v. - 641 Dobie, Hill u. - - 396 Dobree, Ex parte - 114.401 Dobson, Ex parte - 268. 283 v. Lockhart - 699 Doddington u. Hallett 487 Dodgson, Wood v. 297. 597.617. 668 Dodson, Ex parte 579. 591. 825 Dodsworth n. Anderson 39 .1^ , Boyterv. - 736 Doe V. Anderson - 69. 89 INDEX OF THE CASES CITED. XXXUI Page Doe u. Bevan - 124. 390 V.Britain - - 362 V. Bugby - - 390 . V. Clarke 125. 140. 356. 391 V. Darn ton - - 709 V. Lawrence - 94. 766 • V. Liston - 759. 780 V. Mitchell 350, 351. 741 U.Powell - - 1001 V. Smith - - 600 D' Oliviera, Ex parte - 298 Dollond, Lyster v. - 641 | Doman v. Dibden - - 264 Dommett v. Bedford - 391 -, Binford v. 418. 645 Doncaster, Ex parte 843. 854 Donlevy, Ex parte 161. 537 Donnelly v. Dunn 602. 621 Donovan, Clark v. 882. 888 V. Duff - - 773 Doods, Clarkson v. Dormett, Fashien v. Dornford v, Dornford Dorrien, Lucas v. 202. 204. Drinkwater, Gulliver v. Drummond, Evans v. Drury v. Mann Dubois, Ex parte , Corsen v. , Grove V. V. Ludert Dorvilliers, Ex parte Doswell V. Impey 150, Douthat, Ex parte Doughty, Ex parte - Dowden v. Fowle 105. Down, Fowler v. , Prickett v. - Downes, Ex parte V. Grayebrook Downing, Townend v. 760 739 270 413. 453. 482 - 183 151. 166. 533 - 97 - 478 765. 801 552. 555 - 683 177. 199 - 200 187. 292. 792 - 1000 - 239 Ducane, Ex parte Duck V. Braddyl Duckworth, Ex parte Dudley v. Vaughan Dudman, Rex v. Duff, Donovan v. Dufrene, Ex parte Dufresnoy, Goss v. Dumas, Ex parte Dumbell, Ex parte Dunbar, Pistor v. Duncomb v. Walter Dunlop, Ex parte , Cowley V. 56. Page - 274 - 645 313. 354 195. 224 - 869 - 714 - 646 - 200 - 267 - 813 59. 769 - 559 - 773 41. 79. 110. 114. 508. 804 - 635 - 427. 429 - 540. 1006 - 881 - 77 - 311.653 250. 257, 258. 600 - 332 - 602. 621 796 Downman, Ex parte Downward, Ex parte Dowson V. Levi - - 261 Dowton V. Cross - - 763 Drake v. Mayor of Exeter 367 Drapers' Company v. Davis 881 Drayton v. Dale - 551. 608 , Masters v. - 792 Drew V. Jefferies - - 627 Drinkwater v. Goodwin - 479 Dunman, Ex parte Dunn, Donnelly v. Dunning, Raven v. Dunsany, Lord, Latouche v. 207 Dunsterville, Bell u. Du Paz, Ex parte Duperoy, Hoskins v. Dupper, Read v. Durent, Ex parte Dutour, Ecollier v. Dutton V. Agate V. Morison 87. 318. Duval, Daubigny v. Dwyer, Jones v. Dyche, Fletcher v. Dyde, Williams v. Dyer, Ex parte V. Missing Dykes, Parker v. Dysart, Shall cross v. Dyson, Ex parte Dyster, Ex parte 324 191 212 874 344 - 886 - 887 63. 70. 633. 638 - 480 64. 412 - 710 - 624 - 246 - 155 321. 372 - 1003 - 578 306.418 XXXIV INDEX OF tHE CASES CITED. E Eade, Lingood v. Eagle, Ex parte Earner, Jameson v. Eames, Crawshay v. , Dimsdale t'. Eardley, Ex parte Earle, Ex parte Earlier v. Languishe Eason, Koster v. East India Company, parte Page - 51 - 853 56. 60. 769 - 4-55 - 238 - 155 239. 259 - 607 - 715 Ex - 212,213 , Gordon 1). ^l^ Eastabrooke v. Scott - 299 Easterby, Ouchterlony v. - 720 Eastman, Bristow v. - S'25 Easto, Butcher v. - 67. 94? Eastwood V. Brown - 406, 407 Easum v. Cato - - 707 Eckhardt V. Wilson 70.631 Ecollier v. Dutour Edge V. Worthington Edmonson, Ex parte — > , Menhara v. . V. Parker Smithey v. 747. 609. 134. 570. Edmonstone v. Webb Edmunds, Glennie v. Edwards, Ex parte (1 Atk.) (Buck.) Page Elgar, Ex parte - - 1000 Eliason, Parke v. - - 429 Elibank, Lord, v. Montolieu 373 , Murray u. 373, 374 Ellice, David v. - - 1003 Elliott, Atkinson v. 701.705.708 V. Danby V. Hunt - ., Laidler v. Ellis, Ex parte Hopkins v. Longford v. Shirley Elizee, Stevens v. Elmslie V. M'Aulay Elsom V. Brailey — , Robinson v. 744 886 203 822 809 619 136 595 716 709 328. 851. 854 (IC.B.L.) 139 . . (6 Ves.) 338. 345. 898 (10 Ves.) 829. 831 I'. Applebee - 357 , Crooke v. 799. 801 , De Leira v. - 480 V. Harben 64. 406, 407 , Rigby V. - 887 Egginton, Rex v. - 222. 426 Egglesham v. Haines - 799 Eicke, Ex parte - - 623 Eland v.Karr - - 712 Elder, Ex parte - - 216 Elford, re - - 998 Elton, Ex parte , Mills V. Elwall, Attorney-General v. Emden v. Darley Emery, Ex parte Emly V. Lye Emmett, Ex parte V. Butler Enderby, Ex parte 418. 583. 850 England, Quantock v. 98. 807 English, Ex parte V. Darley - 349. 776 450. 452, 453 - 901 121. 222. 224. 436. 853 41. 46 - 275, 276 - 777. 788 618.818.820 728 793 900 651 53 490 876 137.429.508. 803. 878 - 644 " 588. 592 - 796 124. 226. 229 239. 243 213. 699 - 877 429. 717 - 427 - 874 - 244 48 65 Entwistle, Hancock v. Erie, Pyne v. Escot V. Milward Esdaile, Boddy v. - - V. Oxenham V. Sowerby Essex, Sheriff of, PhiUips v. Estwick V. Cailland Evans, Ex parte 113.566.578 V. Bevis - - 882 V. Brown - 551. 555 , Dickson V. - - 719 V. Drummond - 645 V. Gill - - 620 V. Mann - 731. 781, 782 V. Marlett - - 463 , Powell V. - - 567 INDEX OF THE CASES CITED. XXXV Evans v. Prosser , Rex V. V. Solly Page - 719 - 558 - 494 - 126 419. 691 - 792 Everett v. Backhouse Ewart, Dixon v. Evvens V. Gold Ewer V. Preston - - 764 Exeter, Mayor of, Drake v. 367 Exleigh, Ex parte - - 301 Eyles, Griffin v. - - 874 Eyloe, Maylin v. - - 49 Eyre v. Birbeck - 42. 82 Faber, Barclay v. - - 540 Fair v. M'lver - 253. 712. 738 Fairbank, Jackson v. - 242 Fairbairn, Hay v. - 403. 419 Fairchild, Ex parte - 223, 224 Falconer v. Hanson - 789 Falkner v. Case - 405. 421 Farewell v. Coker - 873 Farlow, Ex parte - - 547 Farmer, Green v. - - 483 Farnell, Bennett v. - 244 Farr, Ex parte - - 145 Farran, Horncastle v. - 479 Fashion v. Dormett - 739 Featherstone v. Fenwick - 202 Fector, Ex parte - 13. 832 Feise v. Randall - - 571 V. Wray - - 460 Fell, Ex parte - 639. 663 Fellows, Ex parte - 117.810 , Staniforth u. - 711 Felton, Burwood v. - 999 Fenn, Franklin v. - - 727 , French v. - 701. 704 V. Harrison - 245. 250 , Winch q. t. v. - 303 Fenton v. Pearson - 461 , Trueman v. - 617. 625 Feranda, Ex parte - 87 Ferguson v. Mackreth - 900 Ferneley, Hewitt v. - 896 Fiddall, Hussey v. 727. 732, 733 Fidgeon v. Sharp - - 448 Field V. Bellamy V. Carron V. Curtis , Northey v. , Sake V. , Smith V. 451. Findon, Ex parte Finchett v. How 102. 329 Finley, Flood v. Fish, Sloper v, Fisher, Ex parte 229. , Ashdown v. — , Fox V. , Harman v. — V. Miller V. Touchett Fisher's case (lOVes.) Fiske, Guthrie v. Flannagan, Watkins v. Flarty v. Odium Fleeming, Mortimer v. Fleming, Mowbray v. Fletcher, Ex parte 115. V. Bathurst V. Dyche Hope V. Orlebar v. Pearson v. V. Pogson Flint, Ex parte Key V. 386 Flintum, Ex parte Flood u. Finlay , Fryer v. Flower, Arding v. , Benson v. V. Herbert 7. 91 Flyn, Ex parte Foljarabe, White v. Foord, Ex parte Forbes, Collins v. , Milward v. , Odwin v. V. Phipps Chilton Webb b 2 Ford V Page - 42. 58 - 862 - 793 458, 459 - 472 - 473 - 637 - 290 . 888, 889 - 368 - 369 237. 897 - 623 - 439 70. 443 - 457 - 687 119. 124 93. 110 - 233 359, 360 - 421 - 895 136. 142. 805, 806 - 230 - 710 - 783 196. 333 618. 868 - 755 - 708 . 705. 708 - 648 - 368 365. 442 160. 539 - 387 . 793. 806 - 411 - 333 - 68 - 426 415. 789 400. 604 - 377 - 626 889. 902 INDEX OF THE CASES CITED. Forrester, Mann v. , Minett v. Page 483 715 777 120 Forrestall, Brown v. Forshaw, Ex parte Forster, Poynton v. 137. 775. 830 V. Surtees - 262. 284 Foster, Ex parte 54. 141. 806. 816 V. Allanson - 683 , Barrow v. - -55 V. Blakelock - 902 V. Jackson - 100 Foudrinier, HofFham v. - 287 Foulkes, Owen v. 334. 336. 866 Fowke V. Horabin Fowle, Dowden v. , Grey v. . V. Kymer , Rex V. Fowler v. Brown v. Down V. Padget Fowles, Ex parte Fox, Cross V. V. Fisher V. Hanbury Webb V. - 900 105. 765. 801 - 305 - 455 - 495 - 98 555 769 - 820 - 793 - 439 631. 745 552. 555 552. 49. Foxcroft V. Devonshire 479, 480 Francis, Bridger "u. , Martin v. V. Rucker , Tinson v. Francisco v. Gilniore Franklin v. Fenn V. Hosier 89 877 263 252 785 - 727 - 484 Franklyn, Ex parte - 550 Frederici, Stacey v. - 622 Freeland, Barnes v. - 472 Freeman, Ex parte (Buck.) 663 , Ex parte (1 C. B. L.) 671 . , Ex parte (1 Rose) 121, 122, 804. 830 . , Ex parte (3 Ves.) 658 , Ex parte (1 V. & B.) 114 , Colkett V. - 41. 57 V. Parsley - 373 , Thompson v. - 446 Freeman, "Willis v. Frenie v. Wright - Freen v. Cooper Freethy, Burr v. French v. Andrade V. Barton V. Fenn 423. - 701. Frere, Thomason v. 630, 631. -, Yea V. Freydeburgh's case Frith, Ex parte Williams v. 585 Frome, Moth v. Frost, W^hitehouse v. Fry, Ex parte - 182. 663. , Baynes v. V. Malcolm , Wilkins v. - 334, Fryer v. Flood - 365 Fuller, Randall v. Fuller's case Furlong, Granger v. Furneaux, Ex parte Furnell, Zagury v. Furnivall, Ex parte Furzo, Godfrey v. Fydall, Ex parte - 577 Fyds V. Clarke Page 679 333 742 750 710 752 704 711. 744 886 594 189 892 364 454 837 303 103 728 442 876 511 800 269 454 589 427 582 245 G Gabboot v. Chaytor Gadderer, Peers v. Gainer, White v. Gainsford, Smith v. Gale, Ex parte V. Halfknight , Snaith v. - 876 - 627 - 479 136. 890 123. 805 29. 37 - 255 Gallant, Copeman v. - 436 Galliers, Roe v. - - 390 Gallimore, Ex parte 29, 30. 34. 37. 804. 809 Galway, Lord, v. Mathew 643 Gamon, Sharp v. - - 728 Gandy, Bennett v. - 349. 776 Garbutt, Ex parte - 202. 857 Garcia, Benton v. - - 894 Gardiner, Ex parte - 512; 850 INDEX OF THE CASES CITED. XXXVll Gardiner, Chandler v. - 388 Gardner, Ex parte (1 C. B.L.) 199 (1 Rose) 36. 591. 809 (11 Ves.) 221. 299 (15 Ves.) 287 (1 V.&B.) 129. 154. 577. 585. 592 -, Chapman v. - 793 V. Rowe - - 437 ■ V. Slack - - 766 V. Walker 375 Gardner's assignees v. Skinner 237 Gardom, Ex parte - 289. 643 Garforth, Nelson v. - 895 Garland, Ex parte - 225. 314 Garratt v. Cullum - - 427 , Hankey v. 9. 338. 638. 652 • V. Moule - - 53 Garrett v. Biddulph - 807 Garth v. Thomas - 358. 729 Gascoigne, Hodson v. - 358 , Hutchinson v, 23 Stead V. - 747, 748 Gascoigne's case - - 161 Gass, Ex parte - - 270 Gay lor. Ex parte - 134, 135 Gayner's case - - 65 Geary v. Beaumont - 226 Geddes, Ex parte 90. 127. 607 Gedge, Ex parte - - 83 Gee, Ex parte - - 294 V. Brown - - 243 Geering, W eatherall v. - 368 Geller, Ex parte - 211.653 Geordini, Willan v. - 616 George, Abraham v. - 763 , Anderson v. - 243 V. Clagett - 428. 717 , Rumsey v. - 99. Ill Georges v. Georges - 874 Gerard v. Aylmer - 383. 385 Gertchen, Cory v. - - 443 Gervis v. Western Canal Company 775 Gibbon, Jones u. - - 423 Gibbons, Ex parte Gibbs, Ex parte Giblett, Walker v. Gibson, Ex parte Page - 541 - 28. 33 - 601. 621 569. 580. 592. 595. 871 , in re 241. 346. 846. 856 V, Bray - - 414 V. Courthope - 395 V. Hudson's Bay Company 713 V. Hunter , Minet v. V. Thompson Gifford, Ex parte V. GifFord 288. Gilbee, Ex parte Giles V. Perkins , Thompson v. Gill, Evans v. , Haselinton v. V. Scrivens W^oodmas Gillam, Ex parte Gillespie v. Coutts , Mestaer v. 244 ib. 35 311 - 874 - 359 - 433. 482 431, 432, 433 - 620 - 64. 379 - 609. 619 - 794 - 130 - 420 - 691 - 384 237. 307 504 Gillet, Ex parte Gillham v. Lock Gillies V. Smith Gillingham v. Laing - 29. 52 Gilman v. Cousins - - 760 , Hughes V. - 769 Gilmore, Francisco v. - 785 Gilpin, Ex parte - - 842 Girling, Wells v. - - 443 Gitley, Troughton v. - 424 Gitton, Ex parte - 840. 842 Gladstone, liirley v. - 486 V. Hadwen 415. 446 Glaister v. Hewer 96. 365. 375. 876 Glandfield, Ex parte Glass, Young v. Glassford v. Jeffery Glassington v. Rawlins Glendining, Ex parte V. Robinson Glennie v. Edmunds , Mair v. , Nicholl V. b 3 836 - 188 - 561 81. 682 - 288 - 542 - 716 - 419 - 737 xxxvm INDEX OF THE CASES CITED. Page Glenny, Rex v. - - 490 Glossop, Ex parte - 104. 765 Glover, Ex parte - - 1^7 { 2 G. & J.) 1 04. (1 Mont.) 234 Glyn, Poland v. - - 444 Goddard v. Vanderheyden 177. 291 Goddard's case 524. 526, 527 , Smith V. - - 746 Godden, Page v. - - 395 Godfrey V. Furzo . ■ - - 427 Goding V. London' Assurance Company - - ^79 GofF, Partridge v. - - 441 Gold, Ewens v. - - 792 Goldie, Ex parte - - 536 — V. Gunston - - 553 Golding, Ballantine v. - 605 Goldsmith, Ex parte - 340 V. Bland - 243 Goldschmidt v. Lyon - 715 Golledge, Howell v. - 187 Gooch, Back v. - - 69 Goodair, Barker v. 630. 633. 638. 683 Goodall, Thorpe v. 361. 363 Goodchild, re - 342. 344 Goodenough, Lamb v. - 900 Goodere, Bromley v. 9. 10. 140. 147. 193. 269, 270.273. 546. 548, 549. 577 Goodfellow, Cock v. 71. 366 Goodhart v. Lowe - - 459 Gooding, Richardson v. 635 Goodman, Ex parte - 179 Goodtitle v. North - - 281 Goodwin, Ex parte 92. 851 , Drinkwater v. 479 V. Lightbody 370 Gooldie, re - - 154. 801 Goose V. Davis - - 374 Gordon, in re - - 118.214 pany V. East India Com- V. Secretan V. Wilkinson Gore, Ex parte 414 771 79 1006 Page Goring, Ex parte - - 331 V. Warner - - 390 Gomnan, Clark v. - - 900 Gosling, Clayton u. -1000 Goss V. Dufresnoy - - 635 V. Neale - 64. 365 Richardson u. 452. 471. 483 Gough, re Cosser v. Gould, Ex parte — , Radmore v. , Weldon V. 1! Goulding, Ex parte Govett V. Armitage Gower, Ex parte - Gowland v. Warren Gowthwaite, Ex parte Grace v. Higham Graff V. Greffulke - Graham, Ex parte — , in re 113 . V. Benton Cantril v. V. Grill V. Robertson V. Russell — , Whitworth v. 398 446 333 - 760 - 484 - 643 - 560 - 328 - 614 82. 822 - 608 449. 472 534 139. 309. 341 - 275 - 599 - 619 744 717 787 Grainger, Ex parte 217. 405. 417 Granger v. Furlong - - 800 , Hudson V. - 362. 479 Grant, Ex parte 42. 554. 822 ■ , Inglis V. 39. 41. 63, 64. 70 V. Mills - Gravenor v. Cape Graves, Ex parte Gray v. Fielder V' Mendez - 209. 487 - 860 322. 765. 823 - 740 - 742 Graybrooke, Downes v, - 200 Green, Ex parte, 332. 842. 851. 854. 856. 899 - 483 - 882 104. 779. 801 - 740 - 373. 379 - 490 78, 79. 82 - 374 V. F'armer V. Hasseir V. Jones , Morgan v. V. Otte - , Rex V. , Rose V. Greenbank, Hearlc v INDEX OF THE CASES CITED. XXXIX Greening, Ex parte 16. V. Clark Greenwood, Ex parte ., Harley v. 187 -, Wilson V. Greenwoollers, Kennett Gregg, Ex parte , Sandersons. 81, Gregory, Coldwell v. V. Hurrill Gregory's case V. Merton Gregson, Ex parte , Blackburn v. Grenway, Ex parte 90. Grequier, Ex parte 315 Gresley, Batty e v. 155. V. Price Grey, Ex parte V. Fowler — — , Hopkins V. V. Kentish Gribble, Ex parte Grier, Ex parte Grierson, O'Brien v. Griffin, Ex parte V. Archer V. Eyles , Richardson v. Griffith, Ex parte 146. 77. Squire Grill, Ex parte , Graham v> Grimwood, Tattle v. Groome, Ex parte, 140. 216. 222, ' V. Potts . ■ V. Symonds Grosvenor, Ex parte Grove, Ex parte 178. V. Dubois , Yeates v. Gruggin v. White Page 248. 321. 690 - 413 180. 211. 261 . 189. 558 - 391 V. - 794 546. 822 . 682. 686. 694 - 418 - 99 - 532 - 619 - 878 - 487 216. 246. 852 . 317. 540 162. 167. 530. 849 - 764 343. 509 - 305 - 60 - 372 - 642 - 546 - 176 - 1000 561. 728 - 874 - 739 870. 890 - 891 - 665 - 619 - 1003 213, 214. , 589. 699 - 546 - 884 - 498 192. 266. - 714 - 440 . 900 Page Gulliver v. Drinkwater - 274 Gulstone, Ex parte 9. 47. 825. 852 Gunston, Goldie v. - - 553 Gunter, Macdonald v. - 900 Gurney, Hall v. - 419, 420 Rabitt -u. - - 793 Gur V. Rutton - - - 406 Gutheridge, Wilson v. - 882 Guthrie, Ex parte - 120 V. Fiske - 93. 110 Gwennap, Hurst v. 475. 686. 736 Gwynne, Ex parte 209. 479. 488 , Holroyd v. 52. 415 Gvde, Ex parte - - 209 H Hadfield, Rushfield v. Hadley, Ex parte Hadwen, Gladstone v. Hagger, Harmer v. Hague, Ex parte V. Rolleston , Tanner v. Haigh, Ex parte 198, , Rawson v. Haille v. Smith Haines, Egglesham v. Hale, Ex parte , Shee V. V. Small , Stratton v. Haley, Chenoweth v. Halfknight, Gale v. Halkett, Ex parte Hall, Ex parte (1 Atk.) (IG.&J. (1 Rose) 248. (9 Ves.) V. Barnard —^ V. Chapman V. Gurney , Heath v. i, Naylor v. , Nunny v. V. Ody , Vernon v. , Wallcott V. b 188 484 578. 582 415. 446 - 602 46. 806 - 630 - 100 . 202. 357 46. 778 - 457 - 799 250. 719 - 392 118.767 218. 222 - 49 - 29. 37 - 485 - 58 ) - 373 5. 15, 16. ■ 566, 583 647. 652 - 735 - 752 419, 420 , 652. 800 - 32. 91 - 1002 - 876 - 675 - 225 xl INDEX OF THE CASES CITED. Page Hallett, Doddington v. - 487 Halliday, Ex parte 133. 146. 343 , Streatfield V. 128. 732. 745 Halsey, Audley v. 349. 490. 695 Austin V. Haltkin, Steinmetz v. Halton V. Brigg Hamer, Ex parte Hamersley v. Purling V. Yea Hammon, Coulson v. Hammond, Ex parte , V. Anderson V. Atwood I V. Hicks , Kettle 17. V. Myers V. Toulmin Hammonds v. Barclay Hamper, Ex parte Hampton, Anderson v. • ' V. Hodges Hanbury, Arbouin v. , Fox V. Hancock v. Entwistle V. Haywood 373, 559, 487 374 486 319 677 303 238 200 455 560 - 48 - 70 - 788 - 284 479. 486 131.645 - 540 - 200 - 447 631. 745 213. 699 - 745 Hankey, Ex parte 263. 269. 549 ■ V. Brown - - 478 V. Garratt 9. 338. 638. 652 — V. Hammon - 225 V. Jones 20. 28. 38 V. Smith - 708 V. Towgood 31. 133. 829. 831 , Vernon v. 46. 202. 677. 718. 748 Hannay, Petrie v. Hanson, Ex parte , Falconer v. — ■■ V. Harrison - 305 9.722 - 789 - 25 - 333 - 454 320. 394 - 734 Harben, Edwards v. 64. 406, 407 Harbin, Ex parte 116. 146. 809 —, M'Donald v. — y. Meyer — V. Stevenson — , Vernon v. Page Harcourt, Ex parte 86. 801. 808 Hardacre, Wallace v. 248. 423 Hardcastle, Ex parte - 129 Hardenbergh, Ex parte 185. 821. 853 Harding, Howell v. Hardman, Ex parte Hardwicke, Ex parte Hardy, Ex parte Roberts v 877 - 108 126. 8io: 830. 853 163. 868. 889. 899 92. Ill - 891 - 199 - 589 190. 275 - 202 - 1001 - 671 447 187. 189. 558 555. 803 - 998 413. 454 70. 443 62 Hare, Spink v. Harey, Ex parte Harford, Ex parte , Aylett V. V. Carpenter Hargraves, Ex parte Hargreaves, Ex parte .i , Thornton v. Harley v. Greenwood Harlow v. Crowley Harman, Ex parte V. Anderson ■ V. Fisher V. Spottiswood Harmer v. Davis 105. 765, 766 801 - 602 55. 342. 639. 668 - 207 - 150 - 615 - 442 244 30 . 246 (Buck.) 147 — (lG.'Z. bUU Heathcote, Brown v. 418. 690 V. Crookshanks 297 , Lloyd V. 55. 59. 93. 301 Heaton, Ex parte Heck, Ex parte Heming, Ex parte Hemstead, Ex parte Henderson, Ex parte , Maanss v. V. Samson 644. 657 - 21 - 852 - 194 121. 128, 584. 810 - 482 - 615 - 217 619, 620 - 303 - 844 '■ '■ Urn kjaiJ Hennay, Ex parte Henry v. Leigh Henson, Ex parte Hensor, Ex parte - - 844 Herbert, Ex parte 118. 158. 207. 320. 767 • (2G.&J.) 566 Flowers. 7-91.793.806 - 270 9 AJVITV^l* Hercy, Ex parte xlii INDEX OF THK CASES CITED. Page Heskam, Ex parte - 671 Heskuyson v. Woodbridge 255. 291 Hesse v. Stevenson 389. 552 Hewer, Glaister v. 96. 365. 375. 876 Hewitt, Ex parte V. Bellott , Brooke v. V. Ferneley V. Man tell 190 Heyden, Ex parte Heydon v. Heydon Heygate, Ex parte Heys, Tarn v. Heywood, Ex parte Hiams, Ex parte Hibbert, Rolleston v. Hibbertson, Lingard v Hicklin, Ex parte Hicks u. Burfitt , Hammond v» Higden v. Williamson Higginbottom, re Higgins, Ex parte Higginson, Ex parte V. Kelly 84-6. 878 - 896 - 368 - 896 - 753, 75* - 1007 - 634< - 826 - 889 10. 843. 900 - 836 - 419 - 620 190, 191 - 69 - 48 - 364 - 1000 153. 344 - 509 - 218 - 608 20. 22 217 Higham, Grace v. Highmore v. MoUoy Higinbotham v. Holme - ^i t Hill, Ex parte (C B. L.) 217. 652 (1 Madd.) - 484 (2 N. R.) - 649 (11 Ves.) 272. 275, 276. 596 . , Ashley v. V. Dobie V. Heale a V. Humphreys , Middleton v. , Pry or v. V. Shish Hillear, CoUinson v. Hilliard's case Hillier, Ex parte V. James Hilton, Ex parte HinchlifF, Carr v. 610 396 110 894 - 876 - 372 - 78 - 790 338. 500 179. 199 - 881 9. 17. 744 - 718 idle V. Shackleton ...ne, Bray v. Hinton, Ex parte Hippins, Ex parte Hirst, Ex parte - ooo Hitchcock V. Sedgwick 39. 208 696 Hoare v. Coryton - 764 - V. Parker — , Philpot V. Hin Hi Page - 886 872, 873 - 218 - 997 588. 839 Hobbes, Ex parte Hobson, Beresford v Hockley v. Bantock V. Merry — , Young v 205. 477. 873 - 390 - 133 7 jj w. Hodges, Ex parte 255. 373 999 288 291 505 200 ■, Hampton v , Westcott V. 293, 294. 616 Hodgkinson, Ex parte 111. 127. 314. 566. 609. 645. 658. 812 - — V. Travers - 131 - — V. Travers - 131 Hodgson, Ex parte 201. 220. 336. 648 (2G.&J.) 1006 , Alley V. - 445 , Alves V. - 210. 245 V. Bell - 256. 290 V. Gascoigne - 358 , Jamison v. - 445 , Kirkley v. - 403 Loy - - 459 . V. LiOy - - 459 , Pringle v. 373. 376, 377 . Riishwnrrh ii. - 9,9.0 — , Rushworth v. Hodson, Smith v. HofFham v. Foudrinier Hoffman, Ex parte Pitt Hogg V. Bridges , Buscall V. — — V. Kirby .- V. Mitchell 320 706. 733 - 287 - 263 406. 793 - 129 - 26 - 389 - 737 - 446 ■• V. ivincxieii Holbird v. Anderson - 446 Holbrooke, Beddome u. 602. 621 Holden, Ex parte - 243. 493 Holding, Ex parte - 98 V. Impey - 1000 Holdsworth, Dawe v. - 94 Holland, Ex parte - 354 INDEX OF THE CASES CITED. xliii Holland V. Calliford 216 V. Palmer 568, Holliday, Ex parte Hollingshead's case Hollingworth, Tooke i; Hollis V. Claridge Holloway, M'Neilage v Holme, Higinbotham v. Holmer v. Viner Holmes, Ex parte V. Wainwright ■ V. Walsh ■ V. Winnington Holroyd v. Gwynne ' V. Whitehead 42 Hoist V. Pownall Holt, Ex parte Holyland v. De Mendez Homfray, Crawshay v. Hood, Ex parte , Livesay v. Hooke, Cottrell v. Hooper, Ex parte , Pearce v. V. Ramsbottom V. Smith Till Hope Byde, Round v. • V. Cust V. Fletcher Page 222. 372 569. 571 11 150. 529 427. 429 - 873 - 99 - 217 - 299 - 547 135, 136 - 182 - 677 415 769 458 844 392 483 - 587 - 414 227. 230 202. 207 772. 776 205. 477 42. 71. 82 - 881 - 72 - 644 - 783 52. 48. 14. • , Tyrrell v. 320, 321. 371 Hopkins, Ex parte - 816, 817 i V. Ellis - 41. 46 1— V. Grey - - 60 Hopkinson, Ex parte - 191 V. Smith - 896 Hopley, Ex parte 186. 589 Hoppe, Clark v. - - 620 Hopper, Reed v. - - 776 , Rex V. - - 695 ^ V. Richmond 110. 773 Horabin, Fowke v. - 900 Horn V. Baker - 403. 409 » , JellifF V. - - 689 Hornblower v. Proud 405. 430 Hornby, Ex parte 177. 489. 873 Horncastle v. Farran - 479 Home, Ex parte 203. 856 Horner, Rankin v. Hornsby v. Lee Horsefall, Knowles v. Horseley, Ex parte Horseman, Morgan u. Horsey 's case Horton v. Moggridge Hosier, Franklin v. Hoskins v. Duperoy Hossack, Ex parte Houghton, Ex parte V. Mathews 608 87, 642 Houle V. Baxter Houston, Ex parte 295. Hovill V. Browning 609, 610. ■ V. Lethwaite 362. How, Finchett v. 102. 329. Howard, Hawkins v, V. Jemmett 791. 222. 438 V. Poole V. Ramsbottom , Skaife v. IIS, 779 Howarth, Kinder v. Howe, Like v. - - Howell, Ex parte 91. 198. V. Golledge V. Harding , Meux V. - - Howis V. Wiggins 250. 254 Hubbard, Ex parte , Bloxam v. 345. V. Johnstone Hudson V. Granger - 362 Hudson's Bay Company, Gibson V. - - - Huggins, Bishop v. Hughes, Ex parte 187. 331. , Bowser v. V. Gillman V. Kearney 209. , Mills V. V. Morley - 593. , Stoveld V. Hull V. Pickersgill Page 783 377 410 818 72 . 807 627 484 .212 179 .899 480 250 1000 676. 684 .679 888, 889 . 869 226. . 861 608 761 .786 328 553 890 187 877 65 .291 653 743 691 .479 713 873 334, 335 559 769 487 26 617 467 55& xliv INDEX OF THE CAbES GITEl). Page Hulse, Stracey v. - - 495 Hume, Clarke v. • - 394- Humphrey, Ackerman v. 458 Humphreys, Hill v. - 888. 894 V. Partridge - 483 Humphries ti. Coggan - 778 Hunt, Ex parte - - 149 , Ellis V. - 450. 452, 453 , Haswell v. - - 473 V. Pasman - - 755 , Snelgrove v. - - 732 V. Ward - - 452 Hunter, Ex parte (1 Atk.) 665 (Buck.) 177.330. 341.669.873 (2 G. & J.) 296 (5 Mad.) 296. 310 (2 Rose) 340.635 (6 Ves.) 209, 210 451. 453 . - - 244 - 558 - 400 - ib. - 404, 405 282. 613. 636. V. Beale , Gibson V. , Moravia v , Phillips V. V. Potts , Storer v. , Wright V. , Young V. Hurd, Ex parte - V. Bridges Hurle, Hartley v. Hurlock, Vincent v. Hurrill, Gregory v. Hurry v. Mangles Hurst, Blissard v. V. Dixon 14. 829. 667 652 834 25 377 246 99 455 243 886 . V. Gwennap 475. 686. 736 . v. Jennings - - 1004 V. Mead - - 278 Husband, Ex parte 168. 659. 662 Husbands, Ex parte (2 G . & J. ) 659. 661, 662 Hussey w. Christie - 485 . V. Fyddall 727. 732, 733 Hustler, Ex parte - - 247 Hutchinson v. Gascoigne - 23 Hyams, Ex parte - - 531 Hyde, Bilton v. Hylliard, Ex parte X Imeson, Ex parte Inipett, Allen v. Impey, Crawley i. Page - 732 78. 87. 807. 851 - 245 - 380 167, 168. 558. 860 b60 ,Dodswellt;.150, 151. 166. 533 -, Holding V. Ex parte 533 1000 434 456 Inglis, Ex parte , Bohtlinck v. - 456 V. Grant 39. 41. 63, 64. 70 V. Macdougal - 289 - V. Usherwood Ingham, Noke v. Ingram, Joseph v. Inman, Ex parte Innes, Ex parte Ireland, Aldridge v. Ireson v. Pearman Irvin, Jackson v. Irvine, Ex parte Irving, Ex parte Isbester, Ex parte Iveson V. Conington Jacks, Ex parte •, Wilks V. 69. - 456 - 558 - 408 - 886 - 869 49, 50. 749 - 901 315. 408. 693. 764 811. 824 185. 543 246. 251 - 902 Jackson, Ex parte (1 Rose) (2 Rose) (1 Ves. J.) (5 Ves.) 199. (8 Ves.) (15 Ves.) , Akhurst v. V. Fairbank Foster v. - - V. Irvin 69. 315. 408. V, Lomas 32S 243 843 316. 765 656 18. 511 813. 831 539 388 242 100 693. 764 571 INDEX OF THE CASES CITED. XlV Jackson, Rex v. • , Rowe V. , Stevens v. , Wheelwright v. and Wood, re Page - 534 - 374 80. 100 448 897 - 54 71. 73 - 427 - 376 148. 372 - 265 - 676 381 ciMu vvoou, re Jackmor v. Nightingale Jacob V. Shepherd , Whitcomb v. Jacobs, Worrall v. Jacobson v. Williams Jacques, Ex parte Jager, Bolton v. Jakeman, Shaw v. • - 381 James, Ex parte (1 Chitt. Rep.) 532 (1 P.Wms.) 139. 159. 530. 836 (5 Ves.) 230 (8 Ves.) 336. 501. 866 , Harris u. • - 615 , Hillier v. - - 881 V. Kynnier - 721 , Norden v. - 41. 63 , Reed v. 732, 733. 739! 773. 794 ■ , Rogers v. - - 99 • , Whitfield u. - 887 Jameson v. Campbell - 238 V. Earner 56- 60. 769 V. Hodgson - 445 , Smith V. 325. 345. 644. Janson, Ex parte , V. Wilson Jaques v. Withy Jarman v. Woolloton Jarrett v. Leonard Jarvis, Summersett v. ■ V. Tayleur Jeakill's case Jeeks, Ex parte JefFeries, Drew v. JefFery, Glassford v. V. M'Taggart Jeflfries, Ex parte JefFs V. Smith V. Wood 656. 743 - 651 516. 786 100. 832 - 379 - 554 33. 553 - 352 - 157 - 784 - 627 - 561 - 730 - 215 - 55 - 711 Page Jelfs V. Ballard - 609- 619 JellifFi;. Horn - - 689 Jellis V. Mountford - 92 Jemmett, Howard v. 222.226. 438. 861 Jemino, Burrows v. Jenkins, Birkett v. , Nixon V. V. Reynolds Jenks's case Jennings, Ex parte , Hurst V. 457 605 451 736 289 531 202 1004 319 .465 Jepson, Ex parte Jewell, Vertue v. Jewson V. Moulson 372. 374, 375 Johns, Ex parte - - 671 Squire v. - - 26 Johnson, Ex parte (1 Atk.) 578. 581 (1 G.& J.) 13. 102. 511.847 (14 Ves.) 540 - 483 - 322. 741 - 862 883. 891 - 236 , Bennett v. , Kieran v. , M'Connell v. , Penson v. , Shepherd v. , Smithson v. - 291 V. Spiller - 283 Johnstone, Hubbard v. - 691 Jolley V. Wallis - - 63 Jollet V. De Ponthieu - 402 Jones, Ex parte (1 G. & J.) 573 (1 Mont.) 651 (1 Rose) 153 (8 Ves.) 812. 816 (11 Ves.) 805. 81 6 , (17 Ves.) 303 18 Ves.) 3 19. 652 - 568. 571 321. 372. 375 - 902 - 64. 412 - 423 - 779. 801 - 20. 28. 38 - 701 - 288 V. Barkley , Brown v. , Burrell v. V. Dwyer V. Gibbon , Green v. , Hankey v. , Lanesborough v , Lewis V. xlyi INDEX OF THE CASES CITED. Jones «. Lingard — , Longdell V. V. Llewellyn , Paul V. . V. Price . - V. Roe , Rex V. • V. Smith — — , Sowley V. , Spence v. ■ V. Thrustout — — , Toleman v. V. Tripp , Tucker v. Jordan v. Savage Joseph, Ex parte 579. V. Ingram V. Orme Jourdaine v. Lefevre Jowett, Maude v. Joy V. Campbell Joyce, Willingham v. Joynes, Ex parte Judine v. Da Cossen Jukes, Hartop v. 102. Justin V. Balham K Kant, Burwood v. - Karr, Eland v. Kay V. Stead Kaye v. Bolton Kearney, Hughes v. Keay v. Rigg Keble v. Thompson Keefe, Quin v. Keeley, Winch v. Kell, M'Master v. Kellock V. Robinson Kelly, Higginson v. Kemp, Ex parte V. Neville - V. Potter , Robson V. 60. , Wilson V. Kempland, Perkins v. Kempshead, Ex parte - 677 - 388 - 788 - 291 - 895 - 364 491. 494 - 211 - 622 - 508 - 862 - 1004 - 1006 - 53 372. 375 583. 821 - 408 - 250 482. 797 - 542 - 436 - 368 - 359 52 174. 857 - 485 102. 173 - 712 - 778 - 519 209. 487 - 742 224. 653 607. 618 437. 557 - 101 - 243 - 218 - 812 - 622 - 189 763. 798 617. 627 - 228 235. 280 Page Kendale, Ex parte 331. 499. 589. 650 Kennedy, in re - - 360 Kennett, Ex parte 583. 617. 850 , Lord Cadogan v. 64 V. Greenwoollers 794 Kensington, Ex parte 206. 650 V. Chantler - 441 - 303 - 351 - 372 536, 537 - 875 Kent V. Lowen D. of, Orlebar v. Kentish, Grey v. Kenyon v. Solomon Kepple, Ward v. Kerney, Ex parte Kersley, Ex parte Kettear v. Raynes Kettle V. Hammond Kettlewell, Ex parte Key, Ex parte V. Flint 160, 161. 318. 343. Keys, Newington v. Keyser v. Suse Kidd V. Rawlinson Kieran v. Johnson Kilbie, Allen v. Kilner, Ex parte Kinder v. Howarth V. Williams 144 542 345 291 70 225 231 386. 705. 708 - 292 - 453 - 64. 407 - 322. 741 - 638 - 69 - 328 161. 542. 751 King, Ex parte (C. B. L.) 239. 500 (Davies) -- (7 East) - (2 Ves.) -- (7 Ves.) (8 Ves.) 215 145. 574 - 813 160, 161. 542 - 213 V. Bridges , Bromley v. , Charlton v. V. Leith - — V. Martin , Moody V. Kingdom, Ex parte Kinloch v. Craig -(11 Ves.) 10. 565. 514>. 577. 581 - (15 Ves.) 145. 574 - (17 Ves.) 551.666 ■ 749 - 768 - 614 682. 733 - 562. 728 - 796 840. 891 453. 460. 477 INDEX OF THE CASES CITED. xlvii Kinloch, Taylor v. Kiniiear r. Tarrant Kinnersley v. Orpe Kinsman, Saddington v. Kirby, Ex parte , Hogg V. Kirk, Ex parte 12. 353. V, Paulin Kirkley v. Hodgson Kirkman, Richardson v. V. Shawcross Kirkpatrick v. Dennett Kirney v. Smith Kitchen v. Bartsch V, Campbell 732, 733. 746 Page 762, 763 753. 754 - 776 - 373 - 663 - 389 806, 807 - 371 - 403 - 248 - 484 11. 555 - 25 - 556 Kittridge, Alldritt v. Knight, Ex parte — — — , Addis V. V. M'Lean , Simmonds v. Waring v. Knott, Ex parte Knovvell, Ex parte Knowles v. Horsfall Kock, Ex parte Koopes V. Chapman Koster v. Eason Kretchman v. Beyer , Winter v. Kruger v. Wilcox Kymer, Fowler v. , Shipley v. Kynnier, James v. - 1001 811.834 - 709 - 269 - 759 - 400 207. 659 - 190 - 410 - 263 - 801 - 715 753, 754 - 732 477. 479 - 4^55 ' 480 - 721 Lacey, Ex parte - 334. 336 Ladbroke, Ex parte - 659 LafFert, Ex parte - 585. 594 Laforest, Ex parte - 660 , Sanderson v. - 763 Laidler v. Elliott - - 901 Laing, Ex parte - - 565 , Barclay v. - 791. 868 , Gillingham v. - 29. 52. , Walker v. - 734, 735 Lamb V. Goodenough - 900 Lambert, in re - 112.253 ■— • V. Buckmaster 872 Page Lambert, D'Aquila v. 450, 451 Lamley, Arden v. - - 900 Lamphire, Chapman v. - 25 Lancaster Amicable Society, Ex parte - - - 300 Lander, Lloyd v. - 561. 728 Lane, Ex parte 135. 139. 338 , Decharme v. - 760, 761 Lanesborough v. Jones - 701 , Ringstead v. 21 Lanfear, Ex parte 19. 545. 551. 636 Langden v. Walker - 795 Langford v. Nott - 883 Langhorn's case - - 520 Langley v. Hawke - 436 V. Stapleton - 871 Langston, Ex parte - 207 V. Boylston - 684 Languishe, Earlier v. - 607 Langworthy, Bowles v. 771, 772 Lann v. Church - 872. 875 Lant, Rowe v. - - 759 L'Apostre v. Le Plaistrier 427 Larkin, Ryall v. - - 700 La Riviere, Stokes v. - 452 Laroche v. Wakeman - 555 V. Wilkinson - 551 Latimer v. Batson - 408 Latouche v. Lord Dunsany 207 Lauderdale v. Duke of Montrose 360 Laughton, Ross v. - 869 Lavender, Ex parte 132. 510. 816 Lavie v. Phillips - 21. 379 Law, Ex parte - - 813 Lawes, Wright v. - 453 Lawrence, Doe v. - 94 , Whichcote v. - 334 Lawton, Buxton v. - 828 V. Robinson - 779 Laycock, Ex parte - 319 Lay ton, Ex parte 120. 126. 128. 810. 830. 853 Lazarus v. Waithman - 58 Lea, Plummer v. 387. 754, 755 , Soulsby V. . - 780 Leaverland, Ex parte - 831 xlviii INDEX OF THE CASES CITED. Page Le Chevalier v. Lynch 401. 742 Le Compte, Ex parte - 228 Lechmere v. Thoroughgood 490. 746 Ledbury v. Smith Ledyard, Ex parte Lee, Ex parte 87. . , Hornsby v. : V. Lopes V. Prieaux , Rex V. , Schooling v. Leech, Ex parte , Harper v. Leeds Bank, Ex parte V. Wright Leeke, Ex parte Leers, Ex parte Lees, Ex parte 127. 810, 811, 812 Lefebvre, Ex parte - 241 Lefevre, Jourdaine v. 482. 797 Legge, Wilson v. - - 791 Leicester, Ex parte 112. 126. 830. 853 . -, Woolcot V. Leigh, Ex parte 221. 837 - 749 - 34 119. 257.262. 265. 657. 872 - 377 - 124. 266 - 377 - 479, 480 - 56. Ill - 1006 - 891 - 431 - 452 - 224 - 240 602. 622 538. 541. . 843. 855 - 538 619, 620 - 615 92. 682. 694 350. 364 236. 283 682. 733 342. 344 Le Mesurier, Ex parte - 401 Lemon, Oxenham v. - 888 Lempriere v. Pasley 419. 488. 690 Leonard v. Baker - 64. 408 , Claughton v. , Henry v. _ V. Monteiro . , Sadler v. Leighton, Carleton v. Leitch, Ex parte Leith, King v. Leman, Ex parte — , Jarret v. Le Plaistrier, L'Apostre v. Lethbridge, Luxmore v. Lethwaite, Hovill v. 362. Levett, Ex parte , Brett v. - 96.97. Levi, Dowson v. • - 554 427 882 679 155 762 621 Levy, Ex parte , Norris v. Lewes v. Morgan Lewis, in re V. Chase V. Jones V. Owen V. Piercy Ramsbottom ', Vare v. Lewthwaite, Ex parte Liddell, Ex parte , Robertson v. Lidderdale, Stone v. Liddiard, Harvey v. Lightbody, Goodwin v. Like V. Howe - Lilly V. Osborne Lindsay, Ex parte Lingard v. Bromley - V. Hibbertson , Jones V. V. Messiter V. Webb Lingham v. Biggs Linging v. Comyn Lingood, Ex parte 10. 91 V. Eade Linthwaite, Ex parte Linton v. Bartlett Linwood, Ex parte Liotard, Cox v. Liscarry, Walker v. List, Ex parte Lister V. Lister V. Mundell Listen, Doe v. Litchfield, re , Earl of, re Litt V. Cowley Little, Moyses v. Livesay v. Hood Living, Davis v. Llewellyn, Ex parte 222. 224. 436, 437 Page 54. 821. 853 - 513 - 881 142. 335. 819 - 571 - 288 - 606 - 274. 593 V. 45. 631. 745. 769 - 244 181. 1006 661, 662 48. 51. 60 - 360 424. 677 - 370 - 553 365. 375 - 183 - 329 . 620 - 677 404. 408 - 751 - 408 - 190 . 148. 806. 826. 836 - 51 167. 859 65. 72. 443 336. 866 - 264 230. 608 - 160 - 334 - 623 759. 780 - 315 7. 326 ■ 417. 458 - 367 - 414 - 425 INDEX or Tin: CASES CITED. xhx Page Llewellyn, Jones v. - 788 Llovd, Ex parte (1 G. & J.) '206 (1 Jac.) - 1000 I (1 Ptose) - 255 I — , Brookes v. — V. Heathcote — V. — V. — V. — V. Lander Maund Stretton Williams Loaring, Ex parte Lobb, Ex parte Lobbon, Ex parte Lockhart, Dobson xk Lock V. Bennett V. Bromley , Gillham v. Lockyer v. Savage Lodge, Ex parte V. Dicas Lomas, Harwood i'. Jackson v. London Assurance pany, Nelson v. ■, Goding V. 561. 105. 209. 228. 285 55. 59. 93. 301 r28 882 801 374 4.87 - 663 - 187. 293 - 699 - 700 - 856 - 237. 307 - 218. 372 - 665 - 64-5 - 675 - 571 Com- - 405. 417 - 479 London, Bishop of, Barker v. 886 Long, Ex parte 502, 503. 590 Longdill V. Jones - 388 Longford v. Ellis - 275, 276 Longman, Ex parte 331. 850.880 V. Tripp 389. 405. 416 Longmead v. Beard - 615 LongstafFe v. Xaylor - 881 Lopes, Lee v. ' - 124. 266 Lord, Ex parte - 185, 579. 580 Lovelace's, Lord, case - 324 Lovell, Coles v. - 570. 628 Loveridge v. Botham - 885 Low V. Skinner - -65 Lowe, Ex parte - 853. 898 , Goodhart v. - 459 V. Waller - - 302 Lowen, Kent v. - - 303 Lowfield V. Bencroft - 774 Lowndes v. Collins - 263 V. Cornford 555. 803 Lowndes v. Taylor Loxley, Ex parte Loy, Hodgson v. Lucas V. Dorrien 202. V. March Ludert, Dubois v. Ludford v. Barber Ludlow V. Browning Lugg, Willis V. Luke, Ex parte Lumb V. Milnes Lumsden, Dick v. Lund, Ex parte Lunell, Harris v. Lushbrooke, Ex parte Luxmore v. Lethbridge Lye, Crutwell v. — --, Emly V. Lyndsay v. Weightman Lynch, Le Chevalier v. Lyon, Goldschmidt v. V. Weldon Lyons, Ex parte Lyster v. Dolland , Pickstock V. - Page - 561 274. 505 - 45f) 204. 413. 453. 482 - 719 - 646 284. 598 - 438 - 357 123. 823 373. 378 - 468 - 153 - 442 575 - 882 - 389 - 644 - 626 742 715 425 360 641 36.5 401 64. M Maanss v. Henderson Macarty v. Barrow Macauley v. Philips Macbar, Stapleton v. Macdonald v. Gunter V. Macdonald , Ramsav v. Macdonnell, Ex pane , Robinson v, Macdougal, Liglis v. V. Paton Mace, Ex parte V. Cadell Machell, Ex parte Machin, Cooper v. 97. Mackenzie, Rogers v. Mackerness, Ex parte Macklin, Ex parte Mackreth, Ferguson v. c - 482 96. 242 - 373 - 601 - 900 - 901 22 - 363 - 419 - 289 294. 597 - 221 - 427 - 651 779. 788 - 669 - 807 - 234 - 900 INDEX OF THE CASES CITED. Mackreth v. Symmons Maclean, Knight v. Macmaster, Fedder v. Maddison, Ex parte , Bingley v. Maginnis, Ex parte Maine, Bacon v. Mair v. Glennie , Utterson v. Malcolm, Fry v. Malin, Wheeler v. Maling, Atkinson t'. Malkin, Ex parte , Adams v. Maltby, Ex parte . -, Anderson v. V. Christie Manby, Ashbrook v. Mangles, Hurry v. , Mucklow V. , Naylor v. Mann, Drury v. , Evans V. 731. . V. Forrester V. Moores . , Rex t;. V. Shepherd Manners, Ex parte Mannin v. Partridge Manning, Parker v. Mantell, Bibbins v. — — — , Hewitt 1'. Manton v. Moore Mara, Ex parte March, Ex parte ■ V. Carter . , Lucas V. Margerum v. Sandiford Marks, Ex parte Mar kl and, Ex parte Marlar, Ex parte , Worrall v. Marlett, Evans v. Marlin, Ex parte .Marlow, Ex parte „ — , Wadham v. Marnell, Carpenter v. Page - 487 - 269 - 607 - 429 96. 251 26. 818 - 798 - 419 - 729 - 103 - 752 - 419 24. 580 24. 799 - 195 . 641 - 782 - 742 - 455 410. 420. 475 - 483 313. 354 781, 782 - 483 - 243 313. 694 - 89 - 245 601, 602 - 740 753, 754 753, 754 74. 422 - 215 200. 206 - 881 - 719 - 882 - 851 - 224 262, 263 372, 373 - 463 - 672 - 90 - 599 - 743 Page - 877 - 411 - 437, 438 - 718 - 827 - 303 60. 771. 779 - 644 Marshall, Ex parte 223. 253, 254. 291. 567 '(2G.&J.) 997 , Pinkerton v. - 675 Marr v. Smith Marrable, Ex parte Marsh, Ex parte V. Chambers ■ , Cooke V. ■ V. Martindale V. Meager — , Sandilands v. V. Rutton Marsden, Blewitt v. Marston, Ex parte V. Barber - 21 - 900 - 118 - 89 - 180. 316 126. 128, 129. 263. 424. 437 429. 432, 433 - 290 - 877 - 562. 728 - 374 - 618 126. 602 63. 76 Martell, Ex parte Martin, Ex parte 241 . , Collins V. ^ V. Court . V. Francis , King V. V. Mitchell , V. Norfolk - 618. 861 V. O'Hara 126. 602, 603 V. Pevvtress 63. 76. 442 , Pitcher v. - 615 , Vaughan v. - 790 . T'. Winder - 893 Martini v. Coles - - 480 Martin's, St., v. Warren - 801 Mascall, Watson v. - 372 Mason, Ex parte - 1^0, 131 , Brookes v. - 888 Massey, Twiss v. - - 608 Masson, Ex parte - 658 ■ , Scwell V. - 297 Mastair v. Roe - - 357 Master v. Bucknall - 286 V. Winter - 99 Masterman, Ex parte - 122 V. Cowie - ■ 303 Masters v. Drayton - 792 . , Palmby v. - 602 Mather, Ex parte - 199. 305 Mathew, Lord Gahvay v. - 643 V. Sherwall - 734- INDKX OF THE OASF.S CITED. Page Mathieson, Ex parte - 318 Maton, Barnes v. - 753, 754- Matthews, Ex parte - 5. 9. 185 (C. B. L.) 217 (1 G. & J.) 116. 147. 810 (2 Ves.) (6 Ves.) , Houghton V Maude v. Jowett Maule, Watkins v. Maund, Lloyd v. , Watkins v. Maundrell, Ex parte Mavor, Ex parte Croome Pvne {18 Ves. 114. Mawdesley v. Parke Mawson, Ex parte , Stock V. Maxfield, Todd v. Maxwell, Ford v. May, Anderson v. , Mucklow V. Maychell, Ex parte Maydwell, Ex parte Maylin v. Eyloe Mayo V. Archer Mayor, Ex parte , Bird V. V. Steward M'Connell v. Hector V, Johnson M'Donald v. Hanson M'Gae, Ex parte M'George v. Birch M'Intosh I'. Ogilvie M'lver, Fair v. - 253. 712 M'Lachlan, Templer v. M'Master v. Kell M'Millan, Ex parte M'Neilage v. Holloway «. M'Aulay, Elmslie v. M'Taggart, Jeffery v. 419 254. 291 I 645] 480 I 542! 249 i 882' 696' - 398 1 41.60. 121.1 810 j - 444. 678 ' - 688. 742 - 742 - 587 - 557 602. 611.620 - 895 - 891, 892 - 41. 58 - 336 257. 290 - 49 - 33 - 73 - 24 284. 598. 599 - 92 - 862 33 - 450 749, 750 - 400 Page M'Williams, Ex parte 142. 196. 313. 539. 846 Mead v. Braham - 188 , Hurst V. - - 278 Meager, Marsh v. 60. 771. 779 Meagham, in re - - 219 Mear, Ex parte - 21. 805 Medlicott, Ex parte - 87. 807 Meek, Tate v. - - 487 Meggott t). Mills 64. 94. 177 Meglioruchi tj. Royal Ex- change Assurance - 713 Mendez, Gray v. - - 742 Menham v. Edmonson 747. 809 Mennett, Ex parte - 17. 725 j , Pirie v. - 725. 788 \ Mercer v> Wise - - 55'ii j Merle t;. More - - 797 ' Meroy, Ex parte - - 652 ; Merry, Hockley v. - 288 Merry weather v. Mellish - 871 i Merton, Gregory v. - 619 i Messiter, Lingard v. 404. 408 Mestaer tj. Gillespie - 691 ' Metcalf, Ex parte - - 260 ■, Demainbray v. - 211 ; Meux, Ex parte - - 205 j V. Howell - -65 Meyer, Hanson v. - - 454 i V. Sharpe 489. 635. 690 j Meymott, Ex parte 20. 28. 360. ! 517 608. 623 Meyrick, Callen v. 738 893 101 285 99 728 730 Michel V. Pareski Middleton v. Hill Middlezoy, Rex v. Milburn, Cowper x). Miles, Ex parte V. Rawlins V. Williams - 863 - 876 - 771 - 884 - 316 - 91. 100 177. 376. 617 Millar, Bradley v. - 659. 723 , Rutherford v. - 751 V. Towers - 893, 894 Miller, Ex parte 89. 103. 807. 880 , Brickwood v. 401. 634. 760 c 2 lii INDEX OF THE CASES CITED. Page Miller, Fisher v. - - 457 V. Seare 144'. 166. 530. 532, 533 . . V. Whittenbury - 601 Miller's case - - 522. 529 Milles, Smith v. - 93. 746 Millikin v. Brandon - - 38 Mills, Ex parte 263. 269. 549. 836 Auriol V. ' V. Ball 451, V. Bennett , Cleve V. V. Elton , Grant v. — — • V. Hughes , Meggott V. . , , Taylor v. , Timbrell v. Milner, Ex parte V. Colmer , V. Milner ., White V. Milnes, Lumb v. Milward, Escot v. V. Forbes - Minchin v. Hart . ■-, Whitcomb T'. Minet, Ex parte V. Forrester V. Gibson - , Rugg V. Missing, Dyer v. Mitchell, Ex parte • •, Doe V. , Hogg V. ■ , Martin v. . i-.Oldfield . , Raitt V. 284. 383. 598 452,453. 471 41. 774. 788. - 400 - 53 - 209. 487 - 26 • 64. 94. 177 - 291 - 750 831 5i74 377 886 378 717 813. 829. Mitford, Ex parte , Davie v. 517: _ x\ Mitford Modigliani, Nunes v. Moggridge, Ex parte 872 216 518 304. Page Moline, Ex parte - - 244 Molyneux, Ashton v. - 884 Molloy, Highmore v. - 20. 22 Monk V. Morris 387- 754, 755 , Pope V. - - 783 Monkhouse v. Hay - 403. 419 Monro, Ex parte - - 423 Montefiori v. Montefiori - 299 Monteiro, Leigh v. - 615 Monteith u. Taylor - 751, 752 Montgomery, Ex parte 332 . , Walleyu. - 451 Montolieu, Lord Elibank u. 373 Montrose, Duke of Lauder- dale V. - - 360 Moody, Ex parte - 182. 224 v. King - - 796 Tj. Spencer - 875 V- Davis , Horton v. Mole u. Smith 373. 429. 415. 789 - 863 753. 859 214. 289 - 715 - 244 - 454 - 155 216. BQQ 350. 741 - 737 - 374 . 876 485 , 222 .527 377 876 852. 854 197 627 1001 Moore, Ex parte (1 G.& J.) 314. 540. 589 V. Bartlirop - 426 , Manton v. - 74. 422 V. Wright - - 719 Moores, Mann v. - - 243 Moravia v. Hunter - 558 More, Ex parte - - 653 ; Merle v. - - 797 Morgan, Ex parte 334. 478. 565. 836. 838 . , Cox V - - 677 T. Green - - 740 , Harvey v. 386. 731, 732 Ti. Horseman - 72 , Lewes v. - 881 V. Prior - - 794 , Roberts v. - 625 Morice, Orr v. - 772. 776 Morland v. Rashleigh - 876 Morley, Bayley v. - - 428 , Bloxam v. - 474. 735 , Coverley v. 609. 619 , Hughes V. - - 593 , Wright V. - - 373 Morris, Ex parte (3 Bro.) 272 . (iVes.) 270.273 546 V. Cleasby - - 715 INDEX OF THE CASES CITED. liii Page Morris, Monk v. 387. 754, 755 Morrison, Button v. (>3. 70. 633. 638 Morse, Owenson v. - 247. 452 Mortimer v. Fleming - 421 Morton, Ex parte (Buck.) 100. 111. 807 (5Ves.) 181. 351. 438 Moss V. Charnock - 419. 691 , Muller V. - 406, 407 V. Smith - - 95 Moth V. Frome - - 364 Mott, Havves v. - - 292 Mottley, Anderson v. - 320 Mougham, Ex parte - 111 Moule, Ex parte 21 . 29. 42. 805, 806.821,822 — , Crawshay v. - 30 , Garratt v. - - 53 Moulson, Jewson v. 372. 374, 375 Mountain, Nobes v. - 528 Mountford, Jellis v. - 92 t;. Scott - 204 Mountfort, Ex parte - 202 , Mousley, Winter v. - 231. 236 Mowbray, Ex parte 16. 248. 321 — V. Fleming - 895 ' Moxon, Palmer v. - - 691 j Moyses v. Little - - 367 j Mucklow V. May - 41. 58 ! V. Mangles 4 10. 420. 475 I Muggeridge, Ex parte 301 i Muller V. Moss - 406, 407 [ Mumford, Ex parte 282. 302 \ V. Randall - 752 Munton, Ex parte - - 663 Mundee, Bramley v. - 42. 55. Mundell, Lister v. - - 623 Murphy, Ex parte 215. 217 V. Cunningham 893 Murray, Ex parte - - 429 V. Lord Elibank 373, 374 Mutrie, Ex parte - - 47 Myers, Hammond v. • 788 , Welch V. - - 394 Mytton, Toms v. - - ^5 N Nares v. Saxby Nash V. Nash Nathan, Rex v. 150. Naylor v. Hall - V. Mangles Neale, Ex parte V. Cottingham , Goss V. • Neat V. Ball Nelson V. Garforth Page - 792 - 377 156.529 - 32. 91 - 483 846. 878 - 399 64. 365 - 472 - 895 V. London Assurance Company Nerot V. Wallace Nesbitt, Ex parte Nettervill, Colt v. Neville, Kemp v. Newham, Ex parte Newington v. Keys Newland v. V. Watts - Newsome, Buckland u. V. Thornton 405. 417. 713 516.518.570 205. 477. 873 - 22. 37 - 622 - 374 - 292 - 196 - 351 - 88 461.465. 467 Newton, Ex parte 164. 341. 344. 591. 841 V. Chantler V. Newton < — V. Trigg Nias V. Adamson NichoU V. Glennie Nicholls, Ex parte , Baxter v. - V. Clent Nicholls's case Nicholson, Blake t). , Collins u. Nightingale v. Devisne ., Jackmor v. Nissen, Solomons v. Nix v. Olive Nixon, Ex parte u. Jenkins , Price V. - Nobes V. Mountain Noble V. Adams c 3 - 67 - 36 - 25 337. 55Q - 737 - 1004 - 596 - 477 112.850 - 484 - 888 734. 739 - 54 - 465 - 469 - 309. 397 - 736 - 87 - 528, 529 455. 557. 862 liv JNDEX or THE CASES CITED. - 876 435. 722 - 501 - 558 - 88 - 41. 63 - 645 618. 861 48, 49. 60 - 70 - 513 - 203 524. 527 - 841 - 281 Noble, Schoole v. - , Vulliamy v. Nockold, Ex parte Nokc V. Ingham - Nokes, Ex parte Norden v. James Norfolk, Ex parte - , Martin v. Norman, Wilson v. Norris, Ex parte - V. Levy^ V. Wilkinson Norris's case North, Ex parte — . , Goodtitle V, Northam, Ex parte 561. 829. 841 - 715 458, 459 591. 841 282. 287 - 611 - 883 - 622 149. 151. 518. 523, 524 - 876 180. 317 39.48 - 65 - 1002 38. 824 Page O'Hara, Martin v. 126. 602, 603 Oldtield, Mitchell v. 872. 876 Oldknow, Ex parte - 647 Olive, Nix V. V. Smith Oliver, Ex parte V. Bartlett Corsbie v. Unwin V. Dixon V. Olmius Onslow V. Corrie - , Pope V. Oppenheim v. Russell Orlebar v. Duke of Kent 469 - 706 150. 523, 524. 530. 532 - 406 - 784 - 73. 437 - 377 - 395 - 320. 357 461. 484 351 Northcote, Peele v. Northey v. Field 451 Northwood, Ex parte Norton, Parker v. V. Shakespear Nott, Langford u. Nowers v. Colraan Nowlan, Ex parte ■ V. Fletcher Smith V. Nunes v. Modigliani Nunn, Ex parte , Williams v. V. Wilsmore Nunney v. Hall Nutt, Ex parte O Oakley, Ex parte O'Brien v. Grierson Ockenden, Ex parte Ocklestone v. Benson Odell, Williams v. - Odium, Flarty v. Odwin V. Forbes Ody, Hall v. O'Farrall, Ex parte Ogilby, Ex parte - Ogilvie, M'Intosh v. Ogilvy, Ex parte , V. Hearne Ogle, Blackbouni; r. Ogle's case - 299 - 176 484. 703 - 727 - 883 359, 360 400. 604 - 876 714 142 400 668 864 627 536 Oriell Orme, Joseph v. Ormerod v. Tate - Orpe, Kinnersley v. Orr V. Morice Osbaldeston v. Cross Osborne, Ex parte . , Silk V. , Lilly V. Oswell V. Probert - I Otte, Green v. \ Ouchterlony v. Easterby ; Oudley, Small v. \ Oursell, Ex parte - I Overton, Ex parte Owen V. Foulkes , Lewis V. , Parry v. Owenson v. Morse Owston, Cockerill v. Oxlade v. Perchard Oxley, Ex parte Oxenham, Esdaile v V. Lemon 196. 333 - 631. 745 - 250 - 874 - 776 - 772. 776 - 884 46, 47. 423 - 555 365. 375 - 373 - 373. 379 720 71 - 429 - 591 334. 336. 866 - 606 - 897 247. 452 238. 601 - 793 - 217. 820 874 888 379. Pachelor, Ex parte - 130 Paddy, Ex parte - - 99 Padget, Fowler v. - 49. 769 Page, Ex parte (1 B.& A.) 528. 531, 532 (2 Bro.} 648 INDEX OF THE CASES CITED. Iv; Page Page, Ex parte (4 Mad.) 336, 337 (1 Rose) 19. 91. 171, 172 V. Bauer V. Godden - V. Vaughan , Winch V. Pain V. Teap Pakenham v. Bland Paley v. Field Palmby v. Masters Palmer, Ex parte - '. , Andrews v. , Barnard v. 740 395 740 374 689 60 256 602 1006 124 80 Holland v. 568, 569. 571 V. Moxon - — , Russell V. Palon, Ex parte Paor, Ex parte Pareski, Michel u. Paris V. Salkeld Williams Carter Prosser Parke v. Eliason - . , Mawdsley v. Parker, Ex parte 196 539. 673. 855. - 31. • V. Barker V. Bleeke ■ V. Carter , Crossley v. V. Dykes - 321 , Edmonson v. 609 , Hoare v. 205. 477^ V. Manning V. Norton - 281 V. Ramsbottom V. Wells - 3' Parkes, Ex parte 209 Parkinson, Ex parte 276 Parmester, Ex parte Parr, Ex parte 179. 319 Parrott, Rex v. - Parry v Owen Parsley, Freeman v. Parslow V. Dearlove Page Partington, Ex parte - 332 Partridge t-. Goff - - 441 , Humphreys v. 483 , Mannin v. 601, 602 Pasley, Lempriere v. 419. 488. 690 Pasman, Hunt v. Pasmore v. Birnie Pate, Brandon u, Patersoii, Ex parte — 7). Tash 755 329. 889 - 386 24. 28. 31. 579. 821 - 480 , Windham v. 46, 47. 89. 683 Patman v. Vaughan 26. 29 Paton, Ex parte - 270.311 •, M'Dougal V. 294. Patten v. Brown 30. 34. 37 V. Thompson 469. Parsons, Ex parte 87. 157. 597 767 477. 480 - 225 - 427 - 291 - 1006 - 371 84. 110. 114. 310. 804. - 688 - 446 - 882. 894 - 713 - 193 - 1003 641. 648. - 245 772. 776 - 204 - 461 618. 868 - 22. 31 15, 16. 429. 431, 432 Pedder v. Macmaster - 607 Pedley's case - - 523 Peele, Ex parte 111. 299. 6J:0. 643. 842 V. Northcote - - 715 , Roufigny v. - - 900 Peers v. Gadderer - - 637 c 4 Pattison v. Bankes Paul V. Bird V. Jones - Paver, Balme v. Pawlin, Kirk v. Paxton, Ex parte Payne, Mavor v, ■ , Smith V. , Winter v. Paynton v. W^alker Peachy, Ex parte Peacock, Ex parte Peake, Ex parte , Roberts v. - Pearce v. Hooper Pearse, Ex parte - Pearson, Fenton v. V. Fletcher , Rawlinson v. Pease, Ex parte 487 JNDtX or THi: CASES CITKD. Peirce, Adams v. Pemberton, Ex parte _ — , Thomas v. Perm v. Bennett Penfold, Hawkins v. Penson v, Johnson Pepj/s, Cooper v. 240. 498 Perchard, Oxlade v. Perkin, v. Proctor Perkins, Giles v. V. Kempland Perrin, Ex parte Perrinij, Bowles v. Page ! 373, 374- i - 872 1 - 394 - 624 ; 460. 676 883. 891 I 727 I - 793 144. 553 433. 482 10. I'erritt, Crispe v. Perrott v. Ballard . , Rex V. Perry, Ex parte V. Bowes , Curtis V. Petrie v. Han nay - Pettit, Ex parte , Scott t). - Pewtress, Martin v. Peyron, Ex parte Peyton, Ex parte Philips, Blogg V. ■ . . V. Hunter , Macaulay v. Philipson v. Chase Phillips V. Brown V. Dicas , Lavie v. - Rodie 228 141 - 201 88. 123. 128 - 521 149. 509. 515. 520. 524. 529 - 134, - 349 Pigou, Ex parte Pine, Ex parte Pinkerton, Ex parte . V. Marshall Pinhorn, Bainbridge v. Pirie v. Mennett Pistor V. Dunbar Pitcher v. Martin Pitt, Hoffman v. V. Yalden Pixley, Rex u. 198 725 V. Sheriff of Essex V. Thompson Philpot V. Corden V. Hoare Phipps, Forbes v. - Pickart, Ex parte Pickering, Smith v. 248. 321. 690 Pickersgill, Chapman v. 136 : — , Hull V. - - 556 Pickford, Aspinall v. - 484 , Rowe V. - - 452 Pickstock V. Lyster - 64. 365 Piercy, Levvi.s v. - 274. 593 Plaistow, Cecil v. - Planck, Staines v. Plant, Dixon v. Piatt, Crisp V. Plumbe, Abbott v. Plumer, Taylor v. 642 , Plummer, Ex parte 776 V. Lea - 642 u. Smith v. - 305 Pogson, Fletcher v. - 999 Poland v. Giyn - 452 Pollard, Cood v. 63. 76. 442 Pollock, Appleby v. - 322 Pomeroy, Ex parte - 836. 840 Poole, Ex parte - 675 i V. Ball - 400 ] — , Howard v. - 373 : , Weston v. - 891 Pope V. Monk - . 279 ; V. Onslow - 568. 879 j Popham, Cheap v. - 21. 379 , Thomas v. - 486 I Poreau, Raikes v. 48 Port V. Turton 693 i Porter, Ex parte 609 \ V. Cox ■ - 390 I Portsmouth Bank case 377 ) Potter v. Brown 545 \ , Kemp v. — V. Starkie I'age 271 664 651 673 350 789 - 881 - 615 - 406. 793 - 901 - 490. 597 - 299 - 213 - 884 25 761. 777 - 428 - 265 387. 754, 755 - 486 - 755 . 444 - 488 - 463 - 397 " 130. 822 - 760 - 608 - 887 - 783 - 320. 357 - 863 - 349 - 46 27. 30. 36, 37 - 331 605. 752 251 618 189 748 400 Potts, Hunter v. Poucher, Ex parte 276. 278. 596. 861 Poulter, Wilson v. - - 734 Powell, Ex parte - - 547 Doc T>. - - 1001 INDEX or THE CASLS CITED. IVll Powell V. Evans ■— , Wackerbath v. Pownall, Hoist v. - Foynton v. Foster 137. 7 Prankerd, Ex parte Prater, Vincent v. - Pratt, Crisp v. 25. Pratt's case Prescott, Ex parte — ■ , Snee v. 450, Preston, Ex parte , Ewer V. Prevost, Cazenove v. Price, Ex parte 206. , Alsop V. , Ashbourn v. , Grisley v. — — , Jones V. V. Nixon Prichett, Ex parte Prickett v. Down - Priddey, Ex parte Priddle v. Thomas Prideaijx, Ex parte 91 Primrose i'. Bromley Pringle v. Hodgson, 373 , Willett V. Prior, Morgan v. - Pritchett, Webb v. Probinia v. Roberts Probert, Oswell v. - Proctor, Perkin v. , Rohde V. - Prosser, Ex parte 42. 810. 822. , Evans V. - ■ , Park V. - ■ • V. Smith Proston, Ex parte 141. Proud, Hornblower v. Proudfoot, Ex parte Prowse, Ex parte Prj'ce, Ex parte , West V. - Pryn v. Beale Pryor v. Hill - 101 - 567 328. 339, 340. 506 - 458 775. 830 - 897 - 51 365. 375 - 518 - 706 451. 463. 58. 224 - 764 - 402 538. 826 287. 617 - 903 - 764 - 895 - 87 - 882 - 683 22 - 754 . 880. 890 326. 328 . 376, 377 274. 596 - 794 - 892 - 750 - 373 144. 553 - 244 147. 773. . 828. 899 - 719 - 57 42 806. 816 405. 430 126. 324. 350. 810 , 190. 819 - 998 - 1004 - 683 - 372 Puleston, Ex parte Puller, Bent v. , Bolton V. — V. Roe Pulling V. Tucker Purling Hammersley v. Punshon, Rex v. Pye V. Daubuz Pym, Sweet v. Pyne v. Erie , Mavor v. 461. Page 123. 805 - 482 429. 433 - 710 - 41.73 677 781. 788 - 357 477. 483. - 877 688. 742 Q Quantock, Ex parte - 397 V. England 98. 807 Queen v. Arnold 313. 490. 694 Quin V. Keefe - 607. 618 Quinten, Ex parte - 709 R Rabitt V. Gurney - Rabone v. Williams RadclifFe, Ex parte Radmore v. Gould Raikes v. Poreau ■ ■, Wynne v. Railstone, Yates u, Raitt V. Mitchell - Ramsay v. Macdonald Ramsbottom, Ex parte i t). Cator V. Harvey , Hawkins v. , Hooper v. V. Lewis , Parker Randall, Bisse v. , Feise v. — V. Fuller , Mumford v. ' 793 428. 717 - 591 - 760 - 46 - 246 - 487 - 485 - 22 578 - 631 - 59 203 477 42. 631. 745. 769 237 - 779 - 571 - 876 - 752 Ranelagh, Lord, v. Thorn- hill - . . 897 Rankin, Ex parte - 826 V. Horner - 783 j Ranking v. Barnard - 714 i Raphael, Birdwood v. - 211 I , Rex V. - - 781 Iviii INDEX OF THE CASES CITED. Raslileigh, Ex parte — _ , Morland v. Rathbone, Ex parte Rattray, Ex parte Raven v. Dunning Rawlins, Glassington i , Miles V. Rawlinson, Ex parte , Kidd V. Pearson .- V. .11 V. jTcaisuii - ii/i' Rawson, Ex parte - 130, . ( 1 Jac. ) 1 000 Page 194. 197 - 876 - 248 - 190 - 796 81. 682 91. 100 840. 854 64. 407 22. 31 130, 131 V. Haigh Ray, Ex parte V. Davis Raynes, Kettear v. Read, Ex parte 188. , Barwick v. V. Cooper . V. Dupper V. Sowerby , Stonehouse v. , Todd V. V. Vaughan Ward 46. 778 - 378 - 731 - 291 261. 325. 587. 623 - 360 775. 842 - 874 187. 609. 612 - 720 - 717 - 732 . V. vv iiru - 687. 697 Reader, Ex parte - 240. 286 Redfern v. Sowerby - 872 Redfern v. oowe Reece v. Rigby Reed v. Blades , Cann v. V. Hopper - - 776 V. James 732, 733. 739. 773. 794 ,Wagstaffv. - - 687 V. White Reeve, Ex parte Reid, Ex parte V. Ayton Ronton, Watson v. Rew, Ex parte Rex V. Abbott V. Adams , V. Aickles . V. Bach r. Bewdlev - - 490 V. Bullock 95. 773. 775. 799. 817 900 64 325 776 645 273. 664 - 286 - 446 605, 606 - 836 201. 333 - 491 - 772 887. 897 490 Page Rex V. Cole - - 21 V. Cotton - 313. 490 V. Crumpton - 490. 694 V. Davis - 280. 723 V. Dudman - - 559 V. Eggington 222. 301. 426 V. Evans - - 558 V. Fowler - - 495 V. Glenny - - 490 ■" V. Green - - ib. V. Hopper - - 695 V. Jackson - - 534 V. Jones - 491. 494 V. Lee - - 479, 480 U.Mann - 313.694 V. Middlezoy - 771 V. Nathan 150. 156- 529 V. Page - - 80. 514 V. Perrott 149. 509. 515.520. 524. 529 V. Pixley V, Punshon V. Raphael V. Saunderson V. Tarlton Reynolds, Ex parte , Davis V. , Jenkins v. Rhodes, Ex parte 127 , Thomas v. Rice, Abbott v. Richards v. Richards , Speake v. Richardson, Ex parte 490. 597 781. 788 - 781 - 491 - 494. 335. 343 - 460 - 289 811. 824. 875, 876 104. 813 - 877 - 386 - 388 225. 298. 405. 417. 585. 593 V. Bradshaw - 29 , Butler V. - 438 V. Gooding - 635 V. Goss 452.471.483 V. Griffin - 739 V. Kirkman - 248 Turner v. Richmond, Heapy v. — , Hopper V Ricketts, Ex parte Rickman, Stewart v. Rideing, Thomas v. ■ 395 - 88. 760 . 110.773 - 509.511 42. 181. 783 - 731.782 INDEX OF THE CASES CITED. lix Page 36 832 751 644 700 566 887 900 74.2 739 135 671 Ridge, Ex parte Ridgeway, Baker v. Ridley, Harrison v. ^ — V. Taylor Ridout V. Brough Rigby, Ex parte V. Edwards , Reece v. - - Rigg, Keay v. V. Wilmer Rimene, Ex parte Ring, Ex parte - Ringstead v. Lady Lanes- borough - - - Roahde, Sharpe v. Roake V. Day rill Robarts, Ex parte - - lo^ Roberts, Ex parte 245, 247- 345. 510. 817. 92. Ill - 625 - 245 - 750 - 603 - 378 42. 82 - 715 - 744 51.60 - 250 - 391 '320. 394 542 243 21 196. 369 - 490 132 V. Hardy V. Morgan V. Peake - , Probinia v. — — — , Smith V. t'. Spicer T). Teasdale , Weinholt v. Robertson, Graham v ■-- V. Liddell 48 Robinson, Ex parte . , Brandon v. , Brome .V. . , Glendinning v. • , Kellock V. Robson, Ex parte '■ V. Calze v. Kemp Rodie, Denton u. , Phillips V. Roding, Ex parte Roe V. Galliers ■ V. Jones Page Roe, Mastair v. - - 357 , Puller V. - - 710 Roebuck, Gumming v. 386. 555 Roftey, Ex parte 9. 98. 177. 242. 807 Rogers, Ex parte -, Bowles V. , Brookes v. 250, V. James . V. Mackenzie V. Stevens V. Macdonnel 419,420 , Taylor v. 412. 477 . t). Vale 197. 277.281 V. Ward - 901 Wilkinson 645 - 349 - 324 - 565. 568 60. 763. 798 - 645 - 486 - 1003 - 390 - 364 251. 254. 509 209 291 99 669 243 244 64 290 900 Rolle, Ryal v. - 403. 405. 423 Rolleston, Hague v. - 630 V. Hibbert - 419 V. Smith - ib. Rohde v. Proctor Roiston, Bucknall v. Rolfe V. Caslon V. Rogers 257. Rooke, Ex parte Roscoe, Ex parte Rose V. Barnes V. Green 78 V. Hart V. Rowcroft - 271.549 102. 162. 849 - 763 79. 81, 82. 763 483. 701, 702 - 97 Ross, Ex parte (Buck.) - 709 ( 1 Rose) 384. 516. 538, 539, 540. 544. 837- 866 (2G. &J.) , Attorney-General v. V. Langston , Solomons v. , Stacey v. , Wyborne v. Rothschild, Sheldon v. Round 1). Hope Byde Roufigny v. Peele Routledge, Wharen v. Row V. Dawson Rowe, Ex parte , Gardner v. V. Jackson V. Lant V. Pickford Rowcroft, Rose v. Rowland v. Ashby Rowlandson, Ex parte 1 999 496 - 869 - 402 - 710 - 611 - 708 - 72 - 900 - 31 - 423 - 140 - 437 - 374 - 759 - 452 96. 763 - 1004 31. 640. 658 Ixii INDEX OF THE CASES CITED- Page Sill, Boardman v. - - 479 V. Worswick 399, 400. 402 Sillitoe, Ex parte - - 665 Simmonds v. Knight - 759 Simonds, Ex parte - 1005 Simpson, Ex parte 140. 193. 275. 307. 317 (2 Rose) 319 il5Ves.) 842. 855. 899 , Cowell V. - 873 ., Hassells v- - 41. 67 Simpson's case - - 537 Sinclair v. Stevenson - 409 Singleton v. Butler - 444 Skaife v. Howard 778, 779. 786 Skinner, Gardner's Assignees V. 237. 307 i , Low V. - -65 Skip, Ex parte - - 303 • V. Harwood - - 124 , West V. - - 417. 425 Skirratt, Ex parte - - 441 Slack, Ex parte - 231. 855 — — — , Gardner v. - - 760 Slatford, Ex parte - 113 Slaughter v. Cheyne - 611 Sleech's case - - 596 Slipper V. Lidstone - - 709 Slodden, Hartshorn v. - 446 Sloper V. Fish - - 369 Slow, Ex parte - - 639 Sluby V. Hay ward - - 45 Small, Ex parte - - 119 , Hale u. - - 767 V. Oudley - - 71 Smallcombe v. Bruges - 763 V. Cross - 693 Smith, Ex parte (1 Atk.) 899 (3 Bro.) 180.211. 243, 244. 311. 500 (Buck.) 177.405 409. 429. 669. 831. 842 (C.B.L.) 217 222. 247. 252. 310. 510 (Cowp.) 39 (1 G. & J.) 100. 118. 129. 182. 579. 653. 663. 819. 853 Smith, Ex parte (2G. & J.) (2 Swanst. . (6 Mad.) (1 Rose) V. Barclay • V. Beadnell V. Boheme - • T). Bowles - V. Brocklesby V. Bromley • V. Broomhead V. Buchanan , Cameron v. ■ V. Coffin , Crosse V. - V. Currie Page 999 1003 668 , , 123. 441. 803. 820. 822 -(2 Rose) 117. 178. 180.317. 818 -(IV.&B.) 317 - (5 Ves.) 132. 630. 878 - (19 Ves.) 10. 106. 117. 889 - 731 158. 788 - 245 - 461 - 876 568. 570 - 135 - , Dally V — , Darby v. — V. De Silva — , Doe V. — V. Field — V. Gainsford — , Gillies V. - — V. Goddard — , Haille v. - — , Hankey v. — , Hartley v. Hods on 350. 380. 136. , Hooper v. , Hopkinson v T'. Jamieson , JefFs V. ; Jones T). , Ledbury v. , Marr v. - ■ V. Milles , Mole V. - , Moss V. — , Olive V. — — — I). Oriel 1 607 90 367 243 58 27 416 635 600 473 890 - 504 - 746 - 457 - 708 64. 407 706. 733 - 42. 82 - 896 325. 345. 644. 656. 743 - 55 - 211 - 749 - 877 - 93. 746 - 1001 - 94 - 706 - 631. 745 INDEX OF THE CASES CITED. Ixiii Smith r>. Payne ■ V. Pickering V. Plummer , Prosser v. - V. Roberts - — — — , Rolleston v. V. Smith V. Stokes V. Stracey - V. Wainwright V. Wattleworth , Willock V. - , Wordail v. ■, Young V. - Smithers, Hassall v. Smithey v. Edmonson Smithson v. Johnson Snaith v. Gale Sneaps, Ex parte Snee v. Prescott Snelgrove v. Hunt Snook V. Davidson Sole, Stephens v. - Sollers, Ex parte - Solly, Evans v. - Solomon, Ex parte ■, Kenyon v. Solomons, Benfield v. Nissen Ross Soppit, Ex parte Soulsby V. Lea - South, Ex parte South Sea Company v. Wy mondsell Southcote V. Braithwaite Southey v. Butler Southwood i;. Taylor Soutten V. Soutten - Sowerby, Bolton v. V. Brooks — , Esdaile v. — — — , Read v. Page - 446 248. 321. 690 - 486 - 42 - 603 - 419 370. 641 631. 745 - 78 - 870 889 - 760 - 64. 406 - 765 - 429 134.136 - 291 - 255 723 463 732 - 482 - 403 - 431 - 494 177. 489 536. 537 303. 559, 560 - 465 - 402 121. 810 - 780 280. 450, 451. 423 • , Redfearn v. Sowley V. Jones Spackman, Bennett v. 742 602 678 699 295 - 26. 33 208. 676. 696 - 244 187. 609. 612 872 622 681 Sparkes, TuUy v. Sparrow, Ex parte Speake v. Richards Spear v. Travers Spears v. Hartley - Spence v. Jones - Spencer, Moody v. V. Vanacre Spicer, Andrews v. , Roberts v. Spink V. Hare Sponge, Ex parte Spooner, Bigg v. - Spottiswood, Harman v Spragg V. Binkes - Spurling, Ex parte Squire, Griffith v. - V. Johns - Page 215. 732 - 842 - 388 413. 461 - 483 - 508 - 875 - 689 - 683 - 378 - 891 - 336 - 49 - 62 - 559 - 236 - 891 - 26 - 622 - 710 42. 822. 828 58. 425. 790 Stacey v. Frederici V. Ross - Staff, Ex parte Stafford v. Clarke Staines v. Planck - Stamford Friendly Society, Ex parte Stanborough, Ex parte Standgroom, Ex parte Staniforth v. Fellows Staples, Ex parte - 99. Stapleton, Langley v. V. Macbar Starey, Barnes v. Starkie, Potter v. - St. Barbe, Ex parte Stead, Ex parte V. Gascoigne , Kay V. Stedman v. Martinnant 747 Steele, Ex parte 181. 211. 857. Swan V. 213 300 186 420 711 640 871 601 242 748 671 141 ,748 778 616 168. Stein, Carstairs v. ; Copeland u. Steinmetz v. Haltkin Stephens, Ex parte . , Copeland v. Sole 255. 91. 148. 872, 873. 890 - 644 303. 828 480. 681.691 373, 374 - 721 320. 393. 598, 599 - 403 Ixiv INDEX OF THR CASF.S CITF.D. Stevens, Ex parte . ■ V. Eliz^e Page 22. 100. 592. 850. 870 118. 618. 820 .^ V. Jackson ~ , Rogers v. - , Williams v. Stevenson v. Blakelock , Hanson v. •— , Hesse v. , Sinclair v. V. Wood 80. 100 - 243 25. 799 872, 873 320. 394 389. 552 - 409 444. 678 Stevenson's case - - 118 Steventon v. Watson - 896 Steward, Mayor v. 284. 598, 599 Stewart, Ex parte 16. 18. 248. 363. 743. 829 . V. Ball - 34. 767 V. Rickman 42. 181. 783 Stiles, Ex parte 193 Stirling, Ex parte 502. 545 - 872 Boehm v. Maws on Stock V. Stocker, Ex parte - Stockfleth V. De Tastet Stocks, Ex parte 252 557 108 788 123 Stokes, Ex parte 103. 123. 806. 816. 819. 826 V. La Riviere Smith V. Stone, Ex parte V. Lidderdale , Webb V. - Stonehouse, Ex parte V. De Silva V. Read Stones, Ex parte Storer v. Hunter Story, Ex parte 116. - 452 631. 745 253. 838 - 360 - 886 - 340 731 - 720 104. 158 404, 405 147. 810. 866 - 467 - 160 243 Stoveld V. Hughes - Stow, Ex parte - St. Qiuintin, Walwyn v- Stracey, Ex parte 566. 581. 843. 850 V. Deey - - 428 V. Hulse - - 495 , Smith V. - - 78 Strahan, Wickes v. - 608 Stratton v. Hale Streatfield v. Halliday Stretton v. Hale •, Lloyd V. Stroud, Ex parte Strutt, Ex parte Stuart, Ex parte Tinker Studdy V. Tingconibe Stupart, Blackburn v. Sturdy V. Arnaud Suffolk, Earl, in re Summersett v- Jervis Sumner v. Brady Surman, Scott v. Surtees, Ex parte Forster v. - Suse, Keyser v. Sutton, Ex parte 119- , Abell V. V. Weeley Swan, Calcraft v. V. Steele Swanston, Twogood v. Swanzy, Ex parte Swayne v. Wallinger Sweet V. Pym - 461 Sydebotham, Ex parte Symes, Ex parte Belch V. Symmons, Mackreth v. Symonds, Cobb v. , Groome v. TaafFe, Ex parte Tabley, Scriven v. Tait V. Carrick Taitt, Ex parte Tamplin v. Diggins Tanner, Ex parte V. Hague Page - 222 128. 732. 745 - 218 105. 801 - 1003 - 638 - 334 - 360 - 215 - 832 - 740 - 20 ■ 33. 553 - 571 427. 429 317. 343 262. 284 - 453 398. 846. 890 - 631 ' 30. 766 - 623 - 644 - 549 - 659 - 98 . 477. 483 21. 100. 805 - 181 - 874 - 487 28. 78. 93 - 884 - 219 - 374 - 751 648. 653 675. 699 - 334 - 100 Tappenden v. Burgess 42. 67. 69, 70 Tarleton, Ex parte - 142 INDEX OF THE CASES CITED. Ixv Page Tarleton, Backhouse v. 32. 129 , Rex V. - ' 494 Tarn v. Heys - - 889 Tarrant, Kinnear v. - 753, 754 Tash, Paterson v. - - 480 Tate V. Meek - - 487 , Ormerod v. - 874 Tatlock V. Harris - 244 Tattle V. Greenwood - 1002 Taylor, Ex parte (1 G. & J.) 186. 566 (2 Rose) 551. 668 (18 Ves.) 319. 652 , re (3 East) - 525 , Buckley v. - 268 , Carr v. - 373, 374. 714 , Clark V. - - 881 — — — , Crump V. - - 542 V. Kinloch - 762, 763 , LongstafFe v. - 881 , Lowndes v. - 561 V. Mills - - 291 , Monteith v. - 751, 752 ■ , V. Plumer - - 428 '^ , Ridley v. - - 644 — V- Robinson - 412. 477 ' — , Southwood V. - 699 V. Taylor - - 1003 u. Wheeler - 358 V. Young 239. 396. 598, 599 Taylor's case (8 Ves.) 149. 151. 516. 523, 524. 531. 836 Teap, Pain v. - - 689 Teasdale, Roberts v. - 42. 82 Tellis, Ex parte - - 586 Templar, Cohen v. - 791. 868 Temple, Ex parte - 358. 541 m — '■ , Alderson v. - 442 Templer v. M'Lachlan - 893 Terrell, Ex parte - 547- 667 Tetby, Binns v. - - 793 Tew V. Earl of Winterton 269. 272 Thackrah v. Wood - 95 Tliackray u. Blackett - 244 Thackthwaite v. Cock - 410 Thelwall, Ex parte - 845 Thistle wood, Ex parte 160. 228, 229 Thomas, Ex parte 96. 251. 652, 653. 723. 838 V. Desanges 682. 694. 748 , Garth v. - 358. 729 V. Pemberton ■ V. Popham , Priddle v. , Prothero v. V. Rhodes V. Rideing , Salte V. , Shipman v. Thomason, Ex parte V ~ - 394 - 349 - 754 - 894 104. 813 731. 782 - 773 - 711 - 838 Frere630,631.711. 744 Thompson, Ex parte (1 Atk.) 303 (1 G. & J.) 840 (1 Rose) 582. 585 (1 Ves.) 84. 103. 123. 819. 898 (9 Ves.) 119 V. Beatson - 444. 679 ■ V. Bridges - 764 V. Councell - 544 , Crookshank v. - 290 ■ V. Freeman - 446 , Gibson v. - 35 V. Giles 431, 432, 433 , Keble v. - 224. 653 , Patten v. 469. 477. 480 , Phillips V. - 693 ', Shaw V. - 58 , Whitwell V. 63. 65. 73. 75. 632. 641 Thorley, Ex parte Thome, Black v. - - Thornhill, Lord Ranelagh v Thornton v. Dallas • - . V. Dixon — ■ V. Hargreaves , Newsome v. 461 Thorpj Bricheno v. d 345 790 897 610 641 447 465. 467 1006 Ixvi INDEX OF THE CASES CITED. Page 'fliorp V. Goodall - 361. 363 , Watts V. - 763, 764' Thorpe, Ex parte - 808. 898 Thoroughgood, Lechmere v. 4-90. 746 Thrustout, Jones v. Thwaites, Ex parte . , Wood V. Till, Hooper v. Timbrell, Ex parte V. Mills Tindal v. Brown Tingconibe, Studdy v. Tinker, Stuart v. Tinney, Bell v. Tinson v. Francis Titley, Ex parte TItner, Ex parte Tobin, Ex parte Todd, Ex parte V. Maxfield . V. Read Toleraan v. Jones Tontilin's case Tomlinson, Ex parte , Chippendale u Clark Wilkes • 862 • 119 41.57 • 881 17 ■ 750 243 215 360 - 780 - 252 588. 839. 868. 899 - 19. 172 131, 132. 583 240. 275. 418 602.611.620 - 717 - 1004 - 526 325. 865 551. 555 891 802 623 Tompkins, Beauchamp v. Tompkinson, Ex parte 531. 836 Toms V. Mytton - - 95 Tooke V. HoUingworth 427. 429 Tootell, Ex parte - 245 Topham, Ex parte - 199 Touchett, Fisher v. - 687 Toulmin, Hammond v. - 284 Toussaint v. Hartop - 407 . V. Martinnant 256. 290 Tower v. Cameron - 614 Towers, Miller v. - 893, 894 Towgood, Ex parte 198. 432. 709 , ., Hankey xj. 31. 133. 829. 831 Townendu. Downing 187.292. 792 Townrow v. Benson - 721 Townsend, Ex parte 338. 343, 344 Trap, Ex parte Travers, Hodgkinson v. — , Spear v. Treacher, Ex parte Tredgold, Atkins v. Treves v. Townsend Trew, Ex parte Tribe v. Webber Trigg, Newton u. Trigwell, Ex parte Trinity House v. Clarke Page 546 131 - 413. 461 75.154.869 - 242 498. 500 - 202. 856 - 78 - 25 - 829 - 486 Tripp, Longman v Jones V. Tritton, Arbouin u. Trotter, Davis u. Troughton, Ex parte v. Gitley Trueman v. Fenton Trustrum, Ex parte Tuchin, Bartlett v. Tucker v. Cosh V. Jones , Pulling V. Rex X). Tudway v. Bourne Tulley V. Sparkes Tapper, Ex parte Turner, Ex parte , Brown >o. — , Chapman v. V. Hayne V. Richardson V. Schomberg V. Townsend 389. 405. 416 - 1006 - 706 515. 537 - 199 - 424 617. 625 826. 843 333. 833 365. 375 - 53 • 41. 73 - 301 385. 579 215. 732 12, 224 - 256 - 252 - 487 - 832 - 395 - 627 - 338 Turton, Port u. 27. 30. 36, 37 Twiss V. Massey - 123. 608 Tvvogood v. Swanston - 549 Twort v. Dayrell - - 871 Twyne's case - - 407 Tyrrell v. Hope 320, 321. 371 U Unwin V, Oliver - 73. 437 Upham, Ex parte ^ 132.134 Upton, Ex parte - - 88 Usher, Ex parte - - 494 Usherwood, Inglis v. • 456 Utterson r. Mair - - 729 INDEX OF THE CASES CITED. IxvH Page Utterson v. Vernon 177. SM. 280. 282 Uxbridge, Earl of, Ex parte 878 Vale, Robinson v. 197. 277. 281 Valentine v. Hawkins - 900 V. Vaughan - 35 Vallejo V. Wheeler - 4-86 Vanacre, Spencer v. - 689 Vandenanker v. Desborough 356. 377 Vandeput, Wiseman v. 450, 451 Vanderheyden v. De Paiba 255. 291 177. 291 - 211 187. 255. 293. 597 - 244 553. 866 39. 41 - 48 - 743 56. 59. 769 - 790 - 740 - 26. 29 - 732 35 Goddard v Vanderzee v, Willis Vansandau v. Crosbie Vare v. Lewis Vaughan, Ex parte - ., Alexander v ' , Barnard v. , De Cosson v , Dudley v. V. Martin , Page V. , Patman v. , Read v. , Valentine v. , Whitehead v. 478. 482. 705. 716 Vauxhall Bridge Company, Ex parte Vere, Ex parte Verner, Ex parte Vernon v. Hall V. Hankey V. Hanson , Utterson tJ. Vertue v. Jewell Vigers v. Aldrich Vincent, Ex parte — , Bailey v. t). Brady 202. 403. 856 - 298 218. 837. 854 - 675 46. 677. 718. 748 - 734 177.214.280. 282 - 457. 465 - 100. 832 - 845 - 11.561 - 622 Vincent v. Hurlock V. Prater Viner v. Cadell 31. 38. Holmer v. Vogel, Ex parte 156, 157 Von Hulle, Ex parte Vulliamy v. Noble Vyner, Berney v. Vypond, Ex parte Vysar, Wilson v. W Wace, Schondler v. - 364. , Watson V. - 553. Wackerbath, Ex parte — V. Powell Pago - 246 - 51 417. 438 - 299 .533.652 - 298 435. 722 - 74 - 825 210. 245 Wadham v. Marlowe WagstafFe, Ex parte V. Reed Wain V. Warlters Wainman, Ex parte - Wainwright, Holmes v. — , Smith V. 328. 340. 706. 761. 135, Wait, re Wakefield Bank, Ex parte Saunders v. Wakeman, Laroche v. Walcot V. Hall Walker, Ex parte (C. B. L.) 451. (1 Rose) (4Ves.)259 - 276. - V. Barnes - V. Birch - V. Burnell - V. Burrows -, Campbell v, -, De Tastet v. ", Gardner v. - V. Giblett -, Harrison v. - V. Laing -, Langden v. - V. Liscarry -, Paynton v. -, Zinck V. 425.7 601. 734, 7 230. Walker's case (1 G. & J.) 524. d 2 390 784 253 339, 506 599 720 687 289 773 136 870 634 431 289 555 225 35. 878 660 .290 278 480 783 366 334 616 375 621 321 735 795 608 713 429 527 IXVlll INDEX OF THE CASES CITED. Wall V. Atkinson Wallace, Ex parte V. Breeds V. Hardacre , Nerot V. Page 196. 539 252. 310 - 454 248. 423 516. 518. 570 Waller, Lowe v. - - 302 Walley v. Montgomery - 451 Wallinger, Swayne v. - 98 Wallis, Ex parte - - 1005 , Jolley V. - - 63 Waloby, Williams v. • 324 Walsey, Audley v. - 349 Walsh, Busk V. - - 308 , Holmes v. - - 182 Walter, Duncomb v. - 77 V. Haynes - - 243 V. Sherlock 275. 281 Walton, Ex parte 254, 255 Walwyn v. St. Quintin 243 Ward, Ex parte 108. 117. 147- 183. 189. 866. 899 - 858 - 1004 - 233. 687 95. 728 - 452 - 875 - 687. 697 901 551.555.557. 861 - 199. 270 15 190 - 434 - 270 - 400 - 205 47. 125. 320 - 390 Warren, Ex parte 13. 24. 137. 832 614 601 202. 857 — V. Abrahams — , Austen v. — , Barwell v. — , De GoUs V. - — V. Hunt — V. Kepple — , Read v. , Robinson u , Webb V. Wardell, Ex parte Wardenburgh, Ex parte Warder, Ex parte Waring, Ex parte V. Cunlifie , V. Knight Warner, Ex parte . V. Barber . , Goring V. , , Gowland v. , St. Martin v. Warry, Ex parte Warwick, Ex parte 19. 397. 578. 850 Washington, White v. 900 Page Waters, Billings v. 102. 173 Waterhouse, Close v. - 483 Watkins v. Birch - 64. 408 V. Flanagan 233 i;. Maule - 249 V. Maund 114. 696 Watkinson v. Bernardiston 484,485 Watson, Ex parte (Buck.) 177. 668, 669, 670. (1 C. B. L.) 163. 325. 865 (16 Ves.) 21. 805. (2V.&B.)644. 657 454. 466 - 372 605, 606 - 896 553. 784 Wattleworth, Smith v. 889 Watts, Ex parte 342. 836. 855 , Brown v. 90. 210. 245 , Devon v. - 65. 72 — V. Hart - - 278 Newland v. - 351 - 736 763, 764 Waugh V. Austin - - 753 Weatherall v. Geering - 368 Webb, Ex parte - - 229 , Beard v. - - 21 , Edmonstone v. 570. 595 , Hawes v. V. Mascall V. Renton , Steventon v. V. Wace , Soame v. V. Thorpe , Ford V. V. Fox , Lingard v. V. Pritchett 889. 552. 210. , Ruff v. , Shove V. - V. Stone V. Ward 551. 555. 551 Webber, Tribe v. - Webster v. Scoles Weeley, Sutton v. - 30. Weightman, Lyndsay v. Weinholt v. Roberts Welch V. Myers Weldon v. Gould - 902 555 751 892 245 230 886 861 78 712 766 626 715 394 484 INDEX OF THE CASES CITED. Ixix Weldon, Lyon v. Wells V. Girling - , Parker v. , Wills V. Welsh, Beck v. V. Welsh Wenslay, Ex parte West V. Pryce V. Skipp - 425 - 443 30.37 - 736 - 357 - 233 - 660 - 1004 417. 425 - 886 Westall, Ex parte Westcott V. Hodges 293, 294. 616 Western Canal Company, Gervis v. - - 775 Westmore, Chase v. - 478 Weston, Ex parte - - 588 V. Poole - - 887 Wetherell, Ex parte 198. 202. 204. 357 Whally, Ex parte - - 69 Wharen v. Routledge - 31 Wharton, Brandram v. - 242 Wheatley, Ex parte - 656 Wheeler, re - - 502 V. Braraah - 396 V. Malin - 752 , Taylor v. - 358 • , Vallejo V. • 486 Wheelwright v. Jackson - 448 Whichcote v. Lawrence - 334 Whiffin, Chilton v. - 155. 291 Whitbread, Ex parte 206, 207 Whitchurch, Ex parte 499. 578. 727. 848. 880 Whitcomb v. Jacob - 427 V. Minchin 753. 859 White, Ex parte 55. 87. 501. 504. 511 Page Whitehead, Austin v. - 495 , Holroyd v. 45. 48. 769 v. Vaughan 478. 482. , Beeston v. V. Foljambe V. Gainer , Gruggen v. , Hart V. V. Milner - 276 - 333 - 479 - 900 871. 874 - 886 - 645 , Reed v. - - ■ V. Royal Exchange Assurance - - 875 V. Washington - 900 V. Wilks - - 454 Whitehead, Ex parte - 229 Whitehouse v. Frost Whiteside, Ex parte Whitfield, Ex parte V. James 705 716 - 454 - 505 12. 224 - 887 - 699 - 601 - 247 Whittaker, Ex parte Whittenbury, Miller v. Whitter, Ex parte Whittingham v. De la Riese 607 Whittington, Ex parte 398. 817 , Scrace v. - 902 Whittle, re - - 998 Whitwell, Ex parte - 505 Dimsdale - 63. 772 V. Thompson 63. 65. 72. 75. 632. 641 Whitworth v. Davis 369. 561.728 V. Graham - 787 608 623 Wickes V. Strahan Wicket V. Cremer Wickwar Friendly Society, Ex parte Wigan, Berks v. - - Wiggins, Howis v. Wilbean, Ex parte Wilcox, Kruger v. Wild V. Crawford Wildbore v. Bryan 300 - 760 250. 254. 291 - 809 - 477. 479 - 882 - 884 Wildman, Ex parte 235. 241. 286 V. Wildman Wilkes, Tomlinson v. , Wyllie V. V. Jacks Wilkins v. Carmichael Casey Fry 377 - 802 - 228 - 243 484, 485, 486 677. 681 334. 728 Wilkinson, Ex parte 139. 184. 326 339. 451. 816.838 — V. Diggell — , Gordon v. — , Laroche v. — , Norris v. — V. Robinson — V. Wilkinson — V. Wyatt - 889 - 79 - 551 - 203 - 645 124. 392 - 793 but INDEX OF THE CASES CITED. Page Wilks V. Bodington - 687 , Sheriff u. - - 644 , White V. ' - 454 Willan V. Geordini - 616 Willats V. Cay - - 374 Willett, Burdett v. - 427 , V. Pringle - 274. 596 Williams, Ex parte{Buck.) 656. 663 (1 Rose) 263. 549 (2 V. & B.) 113. 829. 882 .^ (11 Ves.) 639 , , Abery v. - 687 . , Arbouin v. 412. 416 , V. Barber - 892 . ., Brown V. - 687 V. Dyde - 624 V. Frith - - 892 , Jacobson v. 148. 372 , Kinder v. 144. 161. 542. 751 . , Lloyd V. - 374 , Miles V. 177. 376. 617 V. Nunn V. Odell , Paris V. , Rabone v. , Shew V. V. Stevens V. Waloby - 39. 48 - 883 - 755 428. 717 - 42 25. 799 - 324 Williamson, Ex parte (1 Atk.) 39. 196. 574. 577. 580, 581 ;Buck.) 828 . Higden u. Willingham v. Joyce Willis, Curteis v. 1). Freeman V. Lugg Vanderzee v. Willock, Ex parte u. Smith Wills V. Sayers V. Wells Wilmer, Rigg v. Wilmshurst, Ex parte - Wilsmore, Nunn v. Wilson, Ex parte (1 Atk.) 22. 24. 114. 123. 183. 540. 803. 808 364 - 368 - 57 423. 679 - 357 - 211 650. 669 - 760 - 378 - 736 - 739 - 8. 855 - 65 Page Wilson, Ex parte (Buck.) 103. 131. 418. 879 (C. B.L.) 344 (I Rose) 271. 295. 358. 837 (11 Ves.) 243 V. Balfour - - 445 , Boot V. - - 598 V. Day - - 65. 67 Eckhardt v. 70. 631. 744 - 391 - 882 - 395 516. 786 617. 627 - 791 48, 49. 60 734. 789 210. 245 840. 843 - 303 437. 557 - 374 - 216 - 893 46, 47. 89. 683 677 732 487, 488 - 99 231. 236 882. 894 V. Greenwood V. Gutheridge V. Hastings , Janson v. ■ V. Kemp V. Legge V. Norman V. Poulter V. Vysar Wiltshire, Ex parte - Winch, q. t. v. Fenn V. Keeley, V. Page Winchester, Ex parte Winder, Martin v. Windham v. Paterson Winnington, Holmes v Winter v. Kretchman • V. Lord Anson , Master v. V. Mouseley V. Payne Winterton, Lord, Tew v. 269. 272 Winwood, Ex parte - 139 Wisdom, Clarke v. - - 25 Wise, Berryman v. - 893 , Mercer v. - - 554 Wise's case - - - 217 Wiseman x,. Vandeput 450, 451 [ Witham, Sharpe V. - - 615 ! Withers, Bryant v. 96. 109. 190. i 773 I Withy, Jaques v. - 100. 832 ' Wollaston, Collett v. - 728 Wood, Ex parte (1 Atk.) 109. 193. 510,511.816 , in re (I Rose) 140. 142.509. 536 INDEX OF THE CASES CITED. Ixxi Wood V. Akers V. Dodgson , Jackson re , Jeffs V. , Stevenson v. , Thackrah v. V. Thwaites V. Wood Page - 714 297. 597. 617. 668 - 897 - 711 444. 678 - 95 ' 41.57 - 414 Woodbridge, Heskuyson v. ^55. 291 Woodham, Bedford v. 226. 439 Woodier's case - - 45 Woodmass, Gill v. - - 794 Woods, Ex parte - - 538 V. Russell 420. 476. 484 Woollcot, Butler v. - - 460 V. Leicester 602. 622 Woolley, Ex parte 147. 155. 159. 184. 189. 315 V. Cobbe Woolloton, Jarman v. Wordall v. Sjiiith Worrall, Ex parte V. Jacobs u. Marlar Worsley v. De Mattos Worswick, Sill v. 399; Worthington, Ex parte , Edge V. Wride, Ex parte - Wright, Ex parte (1 G.& J. (2 Rose) (2 Ves.) - — (19 Ves.) u. Bird V. Campbell V. Castle , Coles V. , Freme v. V. Hunter V. Lawes , Leeds v. - 601 - 379 64. 406 - 240 - 376 372, 373 66. 406 400. 402 - 655 - 203 - 1005 588 336 855 230. 837 - 33 463. 465 - 900 - 681 - 333 282. 613. 636. 667 - 453 - 452 Wright, Moore v. V. Morley Young V. Wyatt V. Blades , Cooper V. V. Wilkinson 52, Wyborne v. Ross Wy down's case, 41. 48. 79. 114. 136.491.682. Wyraondsell, South Sea Company u, - Wylie, Ex parte - 651 , Bryson v. - 404. 408 Wyllie V. Wilkes - - 228 Wynne v. Raikes - - 246 Page 719 373 741 747 391 793 611 110. 773. 742 669 Yale, Ex parte Yallop, Ex parte Yarker v. Botham Yalden, Pitt v. Yates V. Railstone Yea V. Frere , Hammersley u. Yeates v. Grove Yeo V. Allen Yonge, Ex parte Young, Ex parte (Buck.) (C. B. L.) - 608 - - 642 162. 328. 849 - 901 - 487 - 886 - 303 • 446 - 622 666 218 195 (3 Madd.) 219 (2 Rose) 667, 668 (2V.&B.) 487 - 680. 686 - 188 255. 291 - 652 - 765 239. 396. 598, 599 Wright - 52: 741 , Cash V V. Glass V. Hockley V. Hunter V. Smith - , Taylor v. Zagury V. Furnell - - 454 Zinck V. Walker - - 429 Zvvinger v. Samuda - - 453 INTRODUCTION. 1 HE word Bankrupt, we are told by Mr. Justice Black- Deriv- stone ( 1 ), is derived from the word hancus, or hanque. which ^,^'°" , ,11 c 1 1 ^^^ word, means the table or counter or a tradesman, and ruptus, broken, denoting thereby one whose shop or place is broken and gone: whilst Sir Edward Coke (2) somewhat more quaintly, and certainly with greater metaphor, prefers the derivation of it from the two French words banque and route; which last word, he informs us, means " a sijrn or " mark, as we say a cart-rout, which is the sign or mark " where the cart hath gone; so, metaphorically, it is taken " for him that hath wasted his estate, and removed his " banque, so as there is left but a mention thereof." The origin of the word, however, unless it is to gratify the curiosity of the etymologist, does not seem to be very ma- terial to the present inquiry, when the meaning of it has been so copiously defined, as well by the numerous decisions of our courts of justice, as by the recent act of the legislature, that forms the subject of the present treatise. Though, if there be a choice to be made between these two learned authors, it must be confessed, that the first derivation ap- pears the more simple and appropriate. It accords, too, with the custom which formerly prevailed among the bankers in the towns of Italy, who used to carry on their business in the public places seated on forms, with benches to count their cash, and of whom if any one became insol- vent, his bench was broken, either as a mark of infamy, or to put another in its place. (3) (1) 2Comm.471. (5) Dufresne, 1. 969. Bcavves, (2) 4 Inst. 277. 322. In favour of Sir Edward li. 8. C. 4. INTRODUCTION. A Bankrupt by our old law was considered in the ligbt ' 54&3.'5 merely of a criminal or offender; the 34 & 35 H- 8. c.4. (which was the first statute passed concerning them) describ- ing Bankrupts as " persons craftily obtaining into their " hands great substance of other men's goods, who suddenly " flee to parts unknown, or keep their houses, not minding " to pay or restore to any creditors their debts and duties, " but at their own wills and pleasures consume the sub- " stance obtained by credit of other men, for their own " pleasure and delicate living, against all reason, equity, and " good conscience." (1) But now the law of Bankruptcy is considered principally with a view to the benefit of trade, and instead of treating the Bankrupt as a criminal, holds out to him relief and protection against the consequences of his imprudence or misfortune, provided he acts but honestly with his creditors, and gives up all his effects to their use without any fraudulent concealment. The law of England, says Mr. Justice Blackstone, in this respect has steered between the two extremes of the old Roman, and the civil law; by the former of which the debtor might be either imprisoned in chains, and subjected to stripes and hard labour at the mercy of his creditor, or sold with his wife and children to perpetual foreign slavery trans Tiherim ; and by the latter (so opposite was the spirit of the two laws), the debtor could not even be compelled Coke's derivation, however, it is realm without having come to any but fair to remark, that the title of agreement with them. Neither do the first Enghsh statute relating to we find, he adds, any complaint in the subject (54 & 35 H. 8. c. 4,) was parliament, or act of parliament " against such as do make bank- raade,against any English bankrupt, rupt," which is a literal translation until the 34 H. 8., " when the En- of the French idiom, " qui font "glish merchant had rioted in three " banque route." " kinds of costlinesses, viz. costly (l) The original statute that " building, costly diet, and costly was made against bankruptcy as a " apparel, accompanied with neg- crime, (but which does not appear " lect of his trade and servants, in our statute book,) Sir Edward "andtherebyconsumedhis wealth." Coke says(4lnst. 277.), was against One would really imagine, that the the Lombards, who, after they had learned commentator had been de- made obligations to their credi- scribing some transactions in the tors, suddenly escaped out of the nineteenth century. INTRODUCTION. to cede or give up what property he had in his possession, if he would onlj' swear that he had not sufficient left to pay his debts. (I) The law of this country provides equally against the inhumanity of the creditor and the fraud of the debtor, and adopts in a great measure the principle of the law of the cessio bonorum introduced by the Christian emperors ; whereby, if a debtor ceded or yielded up all his fortune to his creditors, he was secured from being dragged to prison, " omni quoque corporali cruciatu semoto." (2) The protection of the Bankrupt law is, however, only afforded to actual traders; who are, in general, the only persons liable to accidental losses, and to an inability of paying their debts without any fault of their own. Trade, (in the words of the learned author of the Commentaries,) cannot be carried on without mutual credit on both sides; the contracting of debts is, therefore, not only justifiable but necessary. And if by accidental calamities, as by the loss of a ship in a tempest, the failure of brother-traders, or by the non-payment of persons out of trade, a merchant or trader becomes incapable of discharging his own debts, it is his misfortune, and not his fault. To the misfortune, therefore, of debtors, the law has given a compassionate remedy, but denied it to their faults : since, at the same time that it provides for the security of commerce, by enacting that every trader may be declared a bankrupt, for the benefit of his creditors as well as himself, — it has also, to discourage extravagance, declared, that no one shall be capable of being made a bankrupt but only a trader ; nor capable of receiving the full benefit of its pro- visions, but only an industrious trader. In treating of the law, as it now stands, regarding Bank- rupts, there seems to be no necessity for enumerating the various acts of parliament which have been from time to time passed respecting them, all of which were lately more or less in operation before the recent statute began to take (1) Inst. 4. 6. 40. Nov.135. c. 1. (2) Cod. 7.71. B 2 INTRODUCTION. effect. They are no less than twenty-one in number, and are now all repealed by the first section of the new statute, beginning with the 34< & S5 H. 8. c. 4., and ending with the 5 G. 4. c. 98. The alterations made by that statute in the law of Bankruptcy are very considerable, embracing almost every branch and division of the former Bankrupt law. The persons liable to become Bankrupt are increased in number, and are more particularly defined ; new modes of committing an act of bankruptcy are specified ; more ample powers are given to the Lord Chancellor for the better working or superseding the commission, and for saving expence and delay to all the parties who have an interest in the Bankrupt's property; and more authority is given to the commissioners, both with respect to the Bank- rupt, as well as over other persons whom it may be ne- cessary to examine touching the act of bankruptcy, and the discovery of the Bankrupt's property. These, and various other alterations, will be pointed out in the follow- ing pages, accwding to the order in which the different subject-matters are successively disposed of. CHAPTER I. OF THE JURISDICTION OF THE LORD CHANCELLOR, 1. Over the Parties to, or those who come in under, the Commission. 2. Over those who are Strangers to the Commission. Section I. Over the Parties to, or those who come in under, the Commission. With respect to the nature and origin of the Lord Nature Chancellor's jurisdiction in bankruptcy, the matter does oftheTuris- not appear to be involved in quite so much obscurity and diction, mystery as a learned writer on the subject has alleged to be the case. (1) The first statute that gave him any juris- diction was the 34 & 35 H. 8. c. 4., which gave also equal authority to the Lord Treasurer, and other great officers of state ; any one of whom, together with two members of the Privy Council, or the two Chief Justices of either bench, might take such order and direction, as well with the body as the property of the bankrupt, as to their wisdom or discretion might seem fit. But ever since the 13 Eliz. c. 7., which conferred upon the Lord Chancellor or Lord Keeper of the Great Seal the exclusive authority to issue a commissioji of bankrupt, the great seal appears to have been in the sole and entire possession of all jurisdiction in matters of bankruptcy, upon which it determines in a sum- mary way, and from its decision there is no appeal. (2) The twelfth section of the new statute, 6 G. 4. c. 16. (follow- ing the words nearly of the 13 Eliz. c. 7.) also gives the (1) 2 Christian's B. L. 6. 816. 1 V. &B. 211, Ex parte ^rj/- (2) Ex parte Matthews, 3 Atk. unt, Ex parte Ha//, 1 Rose, 13. B 3 JURISDICTION OF THE CHANCELLOR [Ch. 1. Lord Chancellor power to issue a commission to such per- sons as to him shall seem fit, who are to take the same order and direction, both with the bankrupt's person and estate, as is specified in the former statute ; and by Sec- tion 135., if there is no Lord Chancellor, then all powers and duties, given to and directed to be performed by him, are in that case to be performed and exercised by the Lord Keeper, or Lords Commissioners, of the Great Seal. To every person (says Sir W. Evans, in his Letter to Sir Samuel Romilly on the Revision of the Bankrupt Laws(l),) who compares the very few provisions in the statute book respecting this extensive jurisdiction, with the numerous cases in the books of reports upon the exercise of it ; who compares the terms in which the authority is given, with the extent to which it is carried; — it must be an obvious remark, — that never, upon so narrow a basis, was there erected so large a superstructure of authority, undefined, exclusive, and without appeal. But a consider- able part of this authority, as well, indeed, as of the present jurisdiction exercised by courts of equity in a variety of sub- jects, may be traced (as that learned writer observes) to the principle, that every court is conclusively the judge of its own contempts ; and, therefore, when any authority is as- sumed, and the disobedience of it is treated as matter of contempt, the consequence is, an indirect power of legis- lation, which no other tribunal is competent to control. This principle, however, which in its nature is so very susceptible of abuse, has been in general applied to bene- ficial purposes; and the Chancellor's jurisdiction in bank- ruptcy appears now to have been fully recognised by re- peated acts of the legislature, as well as by a long series of judicial decisions. (2) (1) Page 182. indirect control which he pos- (2) Mr. Christian (vol. ii. 212. sesses over the commissioners, by 226.) refers great part of the means of his patronage, and his Chancellor's jurisdiction in bank- power of refusing to insert their ruptcy to the mere influence of re- names in other commissions: this commendation and advice, and the the learned author consequently Sect. 1.] OVER THE PARTIES. ^ It has been remarked by Lord Eldon, in some of those Bankrupt ablejudgments (1), which form now a complete code in this ^^^^ ham- branch of our law, that the different statutes relating to viewto^ the bankrupts seem to have been framed, with a view to the ordinary authority with which the Lord Chancellor is entrusted in I"" r"i •' " tion oi the the exercise of his ordinary jurisdiction ; and that when Chancel- those statutes were silent, as to the mode of compelliiur ^'^' obedience to the orders that might be necessary for car- rying their provisions into effect, the practice has been to enforce it by the general jurisdiction of the Court of Chancery, without which the objects of a commission of bankrupt could not in many cases be thoroughly attained ," and this practice, the same noble and learned Judge has declared it to be his conviction, was perfectly consistent with the intention of the legislature, in giving the juris- diction it has done to the Chancellor in Bankruptcy. In- deed, it has been laid down in many cases, that an order of the Lord Chancellor in Bankruptcy is analogous, though not equal, to a decree of the Court of Chancery. (2) This summary jurisdiction of the Lord Chancellor is, Confined however, confined strictly to transactions relating to the ^° trans- . •' . . , ° , actions re- bankruptcy ; that is to say, to those arismg between the lating to hankrupti or the assignees, and the creditors who have come "'^ bank- in under the commission. The Lord Chancellor, therefore, sitting in Bankruptcy, cannot upon petition adjust any de- mands that one assignee may set up against another, con- cerning a private agreement between themselves, and not affecting the rest of the creditors. (3) Neither can he infers to be, and designates, as a was clothed with more ample recommendatory jurisdiction, as powers by the preceding statute distinguished from the mandatory of 34 & 55 H. S., which the sta- jurisdiction expressly given by sta- tute of Elizabeth left free and un- tute. But though this influence touched. might operate in derogation of the (l) 14 Ves. 4.51. Ex parte Brad- power of the commissioners, it does ley, 1 Rose, 203, 204. not seem so very clear how it could (2) Flower v. Herbert, 2 Ves. increase that of the Chancellor, 526, Ex parte Cowan, 5B. &i^. who, before he was enabled by the 129. 1 3 Eliz. c. 7. to delegate a part of (s; Per Lord Hardwicke in mat- his authority to the commissioners, ter o{ Earl of Litchfield, l Atk. 88. B 1 JURISDICTION OF THE CHANCELLOR [Ch. 1 . But any thing ne- cessary to the ques- tion of proof, gives him jurisdic- tion. Power to send a case or direct an issue. compel tlie assignees to perform an agreement respecting a distribution of the bankrupt's property under a composition deed. ( I ) And so in recent cases, where certain parties were ordered to pay costs in Bankruptcy, and some of them paid the whole costs, it was held, that the Chancellor had no jurisdiction in bankruptcy to order contrihidion from the rest of the parties, — that being a question alto- gether collateral to the bankruptcy, and the proper subject of an action at law, or a bill in equity for an apportion- ment. (2) And where the bankrupt had deposited with A. the title-deeds of premises which he had previously mort- gaged to R. and Co., and after the bankruptcy it was agreed between R. and Co., A., and the assignees, that the assignees should sell the premises, and apply the proceeds in payment of R. and Co. and A., and the solicitor of the bankrupt claimed alien, on petition, by deposit of the title- deeds prior to A., — it was held, that there was no jurisdiction in Bankruptcy to determine the priority of this lien, as it was a question in which the estate of the bankrupt had no interest ; it being quite immaterial to the general creditors, whether the surplus produce of the property moitgaged was applied to pay the particular debt of A., or the par- ticular debt of the jietitioner : and it was also held in this case, that A. was not precluded from objecting to the juris- diction, by filing affidavits as to the merits. (3) Any thing, however, that is necessary for the Chancellor to decide, in order to the question of proof of debts under the commis- sion, will give him jurisdiction. (4) The Lord Chancellor has power also, when difficult questions of law are found to be involved in a petition in Bankruptcy, to send a case for the opinion of a court of Law ; or if a difficult question of fact occurs, then to direct an issue to try any litigated point between the parties, or; (1) Ex parte Barfit, 12 Ves. 15. (5) Ex parte Allison, 1 G.& J. (2) Ex parte Wilmshurst, 1 G. & 210. J. 4. (4) Ex parte Rowton, 1 Rose, 19. Sect. 1.] OVER THE PARTIES. 9 an action to be brought by one against the other. (1) So he may in a matter of importance direct a bill in Chancery to be filed, in order to ascertain whether a debt is due or not (2) ; for, though he has no moi'e power on a bill than on a petition, ^et, in some cases, it is better that questions of importance requiring solemn discussion should be brought before the Court by way of bill ; there being an appeal from his decision in this form of proceeding to the House of Lords : and Lord Hardwicke said, it was sometimes neces- sary to adopt that mode to settle the demands of creditors. (3) The jurisdiction of the Lord Chancellor in Bankruptcy JuHsdic- is both legal and equitable (4) ; but this arises more from tion both , . IIP • 1 • legal and long practice, perhaps, than Irom any precise authority on equitable. the subject. And his determinations, as it seems, are guided now, not as Lord Hardwicke once said, by way of analogy to the usual and ordinary proceedings of the Court of Chancery (5), but by certain established rules and principles of equity, which have been adopted in pro- ceedings in bankruptcy, and are deduced from the powers that have been from time to time vested in him by the legislature. The whole of the proceedings in Bankruptcy, (observes Lord Eldon, who distinguishes them from the other proceedings of the Court,) begin in transactions upon oath ; the trading, the debt, the act of bankruptcy, and the proceedings before the Chancellor, are always origin- ally on affidavit. It is always in the discretion of the Court, (his Lordship adds,) upon an issue, to direct the petitioning creditor, or the bankrupt, or any other party to the petition, to be or not to be examined ; and if it re- _^ quires the jury to have before them, what the Court had (l) Ex parte Co<^re//,Cowp. 742. (4) Ex parte Dewdnet/, 15Ves. Ex parte Gw/s^ora, lAtk. 139. 496. Ex parte Hanson, IsVes. {2) Clarke v. Capron, 2 Ves. 348, ExparteTZq^ey, 19Ves.469. jun. 666. Ex parte Hilton, 1 Jac. & W. 470. (3) £romiei/v.Goodere,lAtk.76. (5) Ex parte 3Iathetvs, 3 Atk. Hankey y. Garratt, iC. B. L. 2. 817. Curtis v. Ashton, ibiil. 10 JURISDICTION OF THE CHANCELLOR [Ch.l. Jurisdic- tion over the com- missioners, to suspend the assign- ment, and re- move as- signees. Cannot discharge a bankrupt when com- mitted, on a summary applica- tion. Nor com- pel the commis- sioners to find the party a bankrupt. Nor re- verse the order of the com- missioners by bill. before it, it is usual, in order to elucidate the matter, to direct the parties to be examined. (1) The Chancellor has jurisdiction to control the conduct of the commissioners in all matters, where the legislature has fixed no certain time for acts to be done by them ; he has, therefore, power to suspend the execution of the as- signment after assignees have been chosen; and he has also power to remove the persons nominated by the cre- ditors as assignees, even before the assignment is exe- cuted. (2) But though an appeal, generally speaking, lies in all matters of Bankruptcy from the determination of the commissioners to the Lord Chancellor by petition (3), yet if the commissioners commit a bankrupt for not answering to their satisfaction, the Lord Chancellor cannot upon a summary application, sitting in Bankruptcy^ discharge him; but the mode of proceeding must be by habeas corpus, which writ the Chancellor has authority to issue in the vacation time ('4) ; and upon the return to which, the Lord Chancellor, not under the bankrupt law, but as a law officer, will then review the conduct of the commissioners the same as any other Judge. (5) The Chancellor has, also, no authority to compel the commissioners to declare a party a bankrupt; he has only power to order them to proceed in their judgment. (6) And though the Chan- cellor may order a bill to be filed for certain purposes in bankruptcy, yet, upon a bill filed by the assignees against a creditor after a dividend, to have the proof of the debt expunged, the Chancellor cannot, in this mode of pro- ceeding, reverse the order of the commissioners ; for the proper course to do this is, not by a suit in Chancery, but (1) Ex parte Heywood, 1 Rose, 45.; and see Ex parte Smith, 19 Ves. 473. (2) Ex parte Skaw, 1 G.&J. 127. (.3) Bromleijv. Goodere, 1 Atk.77. (4) Crowleif'a case, Buck. 264. (5) Ex parte King, 11 Ves. 425. Lord Hardwicke, however, leaned to a different opinion upon this question ; and said, that he re- membered a similar case before Lord Chancellor King hi Bank- ruptcy, who, after he had taken some time to consider of it, de- termined the commitment of the commissioners to be justifiable. Ex parte Lingood, 1 Atk. 242. (6) Ex parte Perrin, Buck, 510. Sect. 1.] OVER THE PARTIES. 11 by petition to the Chancellor sitting in Banh'uptcy. ( 1 ) So, where a bill was filed against bankrupts and their as- signees, questioning the validity of the commission, and praying an account, or if the commission was legal, for leave to prove what should appear to be due under the bankruptcy, it was for the same reason held bad on general demurrer. (2) And so also a bill by assignees against a Nor by bankrupt, to restrain him from further proceedings at law ^^ \n\nnc- to impeach the validity of the commission, was held equally tion »ntenable.(3) S^pl The Lord Chancellor has no jurisdiction to interfere Cannot in- in a proceeding before a iudge oi oyer and terminer. He *^"^^^ *" ^ o J Ti u a proceed- cannot, therefore, upon a petition in Bankruptcy, order the ing before solicitor to the commission to pay costs for not attendinjj ^J"''geof * * . . " oyer and to give evidence on the trial of an mdictment against the terminer. bankrupt, by reason of which the bankrupt was acquitted ; the remedy being by indictment or information against the solicitor for such neglect of duty. (4) Neither has any other court power to review a final order No other made by the Lord Chancellor in any matter of Bankruptcy. '^°"'^'' And it seems that the Court of King's Bench has no autho- rescind ritv to direct a Prohibition to the Chancellor sitting; in ^x:^ , >' . ... Chancel- Bankruptcy, though there is no express decision against the lor's order. authority of the Court to issue such writ; but as no ques- x^P. P^'^hi- r-ii-i IX \ f>\ • ct • All ^ \ hition hes tion of the kmd (as the Lord Chief Justice Abbott observed,) against has ever arisen since the institution of proceedings in bank- ^im. ruptcy, a period little short of 300 years, it is not a very unwarrantable inference, that no such writ of Prohibition lies. (5) In one case, indeed, before Lord Redesdale, he would not even permit costs awarded in bankruptcy to be made the subject of an action at law (6) ; but there is some doubt as to the correctness of this decision. (7) (1) Clarkev. Capron, 2 Yes. 666. (5) Ex parte Coivaji, 5 B. & A. (2) Bailei/ v. Vincent, 5 Mad. 48. 123. (3) KirJipatrick v. Denjiett, 1 G. (6) In re Dillon, 1 Sch. & Lef. &J. 500. . 110. (4) Ex parte HoUlday, 1 Atk. (7) Per Lord Ellenborough, 2 M. 209. ' >!V' S. 459. 12 JURISDICTION OF THE CHANCELLOR [Ch. 1. Lord Chancel- lor no power to appoint a receiver in bank- ruptcy. nor to order an infant heir to convey. Power to order the mes- senger's and soli- citor's bills to be paid; and trans- fer of stock. Jurisdic- tion not deter- Tlie Lord Chancellor lias no jurisdiction, upon a pe- tition in Bankruptaj, to appoint a receiver of any part of the bankrupt's property ; for, except in the case of idiots and lunatics, he has no such power, unless a cause is depending. If any person, therefore, claims an interest in the bankrupt's property, and wishes to have a receiver appointed, the proper mode is to file a short bill for that purpose. (1) Neither has the Chancellor any jurisdiction in bankruptcy to order an in/ant heir of a deceased as- sif^nee, to convey (as an infant trustee) the estates of the bankrupt vested in him by the decease of his ancestor; for the petition must be to the Chancellor generally, under the statute 7 Ann. c. 19., and not to him as sitting in Bank- ruptcy. (2) He has jurisdiction, however, upon a summary applica- tion in Bankruptcy, to order the assignees to ^joy the mes- senger his bill of fees and expences under the commission; and this, notwithstanding even after a final dividend ; for the assignees must be presumed to have known that they were indebted to the messenger, and the distribution of the funds, without having previously paid him, is their own mis- conduct. (3) So, with respect to the solicitor's bill of fees up to the choice of assignees, the Chancellor has in that case also authority, upon petition, to make an order upon the petitioning creditor for the payment of it (4) ; but not in this case, if there are no assets. (5) When any stock is standing in the bankrupt's name as trustee, the Lord Chancellor has, by the 77th section of the new act, power to order the assignees, or any other person, whose consent is necessary, to transfer such stock to such person as the Chancellor shall think fit. The Chancellor's jurisdiction in Bankruptcy is not de- termined by the superseding of the commission, as to any (1) Ex parte Tuj)per, 1 Rose, 179. Ex parte Whitfield, 2 Atk. 315. (2) Ex parte Beddam, 1 Rose, 510. Ex parte Kirk, Buck. 478. (5) Ex parte Hartojip, 1 Rose, 410. (4) 1 Rose, 450. (5) Buck. 47.5. Sect. 1.] OVER THE PARTIES. 13 act previoush/ done under it ; for whatever has been done in mined by the bankruptcy may be undone by petition. Therefore a . *"^^'" petition vv^ill lie on behalf of a purchaser of the estates put up to sale by the assignees, for the repayment of the deposit, even after the commission is superseded (1) ; and the Chancellor also has equal power, notwithstanding the supersedeas, to order the petitioning creditor to pay the mes- senger his costs before the choice of assignees. (2) So he may at any time order the production and deposit of the pro- ceedings, which were taken under the commission before it was superseded. (S) The greatest injustice, indeed, would often result from holding, that the jurisdiction of the Lord Chancellor is confined to the period, during which the com- mission subsists; for then, (as the Lord Chief Justice Ab- bott well observed in a luminous judgment delivered by him upon this subject,) a person against whom a commission had issued, which was afterwards found not to be sustain- able, and whose whole property had been taken from him by colour of it, must either bring an action at law, in which he might lose half the value for want of proof; or go through the slow process of a bill in equity for discovery and relief. A petition in bankruptcy isfestinum remedmm, and contributes not less to the saving of expence, than to the saving of time. The proceeding under the commis- sion operates, by way of sudden seizure of property be- longing, or supposed to belong, to a bankrupt. A process so speedy and summary, therefore, requires to be con- trolled by a speedy and summary course of relief. (4) In fine, the Lord Chancellor has full and perfect power to make any order whatever which he thinks necessary and expedient for the better distribution of the bankrupt's effects ; and all parties concerned in the working the com- mission, who have either already availed themselves of any benefit resulting from it, or who have come in under it in (i) Ex parte Fec^or, Buck. 428. Ex parte Warren, 1 Rose, 276. (2) Ex parte Johnson, 1 G. & J. 19 Ves. 162. '• (4) Ex parte Cowan, sB. &. A. (5) Ex parte Berual, 1 1 Ves. 558. 1 23. 23. 14 JURISDICTION OF THE CHANCELLOR [Ch. 1. any way by proof, jietitiony or otherwise, with an intention to avail themselves of any benefit expected from it, are bound, as any party in a cause woald be, to submit to any such order. Vice The Vice-Chancellor's jurisdiction in bankruptcy is de- Chan- rived from the 53 Geo. 3. c. 24. by which act the office was ccllor s 111" risdiction. created; and under which he is empowered, by the direc- tion of the Lord Chancellor, Lord Keeper, or Lords Com- missioners of the Great Seal for the time being, to hear and determine all matters depending in the Court of Chan- cery, either as a court of law or equity, or that may be incident to any ministerial office of the Court, or which are submitted to its jurisdiction, or to that of the Lord Chancellor, Lord Keeper, or Lords Commissioners of the Great Seal. Some doubts, it seems, at first arose ( 1 ), under the con- struction of the act, whether the Vice- Chancellor had au- thority to hear a petition to supersede a commission ; but it has been settled that he has such authority. (2) He may also hear a petition for the procedendo to issue, where a commission has been superseded by the Lord Chancellor's confirmation of his order for the supersedeas (3) ; and he may likewise certify the propriety of awarding the proce- dendo, in cases where a commission has been superseded upon his certificate. (4) The appeal from the Vice-Chancellor's order is by pe- tition to the Lord Chancellor, which must be signed by a barrister. (5) Section IL Of the Chancellor's Jurisdiction over those who are Strangers to the Commission. It is not very easy to reconcile some of the decisions under this head ; but it is apprehended that all difficulties, (1)2 Rose, 162. (3) Ex parte Hurd, Buck, 45. (2) 2 Rose, 255. note(a). 1 Mont. (4) Ex parte Crump, Buck. .5. Dig. 141. (5) Ex parte Holt, Buck. 429. Sect. 2-3 OVER STRANGERS. 15 as to the Chancellor's jurisdiction over strangers to the commission may be removed, by attending to a plain line of distinction that was very clearly drawn by Lord Eldon in expressing himself upon this subject. If a person Where a claims notJung under the commission, then he cannot be person brought by the assignees before the Chancellor on a pe- nothin'^ tition in Bankruptcy, notwithstanding the assignees may under the allege, that he has money belonging to the bankrupt in his ^^^^ ^^^_ hands; the proper course is in such a case to bring an not be action, or file a bill, for the recovery of it. If, on the con- Jj°|Jf„ ^^^ trary, he cojues i?i of Ms axon accord to avail himself of the jurisdic- jurisdiction of the Chancellor in any matter relating to the ^'°"' bankruptcy, he must then submit to it in all respects, and come in of the Court will enforce its order against him.(l) And "^^ °^" TfY^ . . T . accord, though there may be a difficulty as to the jurisdiction, when a creditor, who is a stranger to the commission, merely applies to have the commission, or the certificate, removed out of the way of his proceeding at law against the bankrupt ; yet, when the creditor goes further, and prays an enquiry into circumstances impeaching the validity of the commission, with a view to supersede it; or, in case the commission should not be superseded, that there may be a new choice of assignees, and that he may be ad- mitted to prove, — it is then clear that he brings himself within the jurisdiction. (2) Whenever a party also, though by obtain- a stranger to the commission, applies for and obtains any '"S ^" order in bankruptcy, he brings himself within the jurisdic- tion. (3) And it seems to follow, that when he only or by peti- petitions the Chancellor for any relief relating to the pro- *^°"*"S- ceedings under the bankruptcy, he, by the very circum- stance of petitioning, submits himself to the jurisdiction. It has been determined, however, that where the mes- No juris- senger under the commission takes possession of goods, as "*<^'*°" *** o r Id 7 order re- (1) Ex parte Pease, 1 Rose,242. (5) Ex parte Bozannet, 1 Rose, igVes. 25. Ex parte /fa//, 1 Rose, 181. Ex parte Pease, ibid. 242. \3. 19Ves. 25. (2) Ex parte Wardenburgh, 1 Rose, 206, 16 JURISDICTION OF THE CHANCELLOR [Ch. 1. stitution to a incTc claimant of propert)'. Excep- tions; short bills; after claim established on an issue, may order com- pensation. Cannot order bankrupt to indorse bills to a stranger to the com- mission, the property of tlie bankrupt, the Chancellor has, generally speaking, no jurisdiction to order the goods to be delivered up to a party, merely claiming them as his own, without first directing an issue to try that fact. ( 1 ) Though in a clear case of property, or a very flagrant case of seizure, there is no doubt that the Chancellor has jurisdiction to order such restitution by the messenger, or the assignees ; for the authority vested in him by the statute, to take order for the disposition of the bankrupt's effects, giving him ge- neral jurisdiction over the assignees, it does not seem that he oversteps that authority, when he orders them to restore property, which they are clearly not entitled to retain. And it is upon this principle, that he now invariably orders short bills {2) to be delivered up to the owner of them, in the case of a Banker's bankruptcy, after they have been seized by the messenger as the property of the bankrupt. (3) And where a party, whose property is wrongfully seized under a commission, establishes his interest on the trial of an issue at law, the Lord Chancellor has then power, not only to order restitution of the property, or its value, — but also to order the assignees to compensate the party for the da- mages which he has sustained by the seizure of the pro- perty, or by the subsequent mismanagement of it by the assignees. (4) In a case, however, where the bankrupt had delivered bills to third persons for a valuable consideration, without indorsing them, it was decided, that the Chancellor had not jurisdiction to order the bankrupt, or his assignees, to indorse the bills to such third persons, — on the ground that such persons, being perfect strmigers to the commission, were not bound to submit to the order of the Chancellor in this respect. (5) And where the acceptors of a bill, which (1) Ex parte Crflgg5, 1 Rose, 2 5. (2) See post. (3) Ex parte Roivton, 1 Rose, 1 5. Ex parte Pease, ibid. 232. Ex parte Buchanan, ibid. 280. 1 9 Ves. 201. Ex parte Burton Bank, Rose, 1G2, &c. (4) Ex parte Cowan, 3 B. & A. 126. (5) Ex parte Hall, 1 Rose, 13.; and see ex parte Stewart, 1 G. & J. 344. ; but see contra ex parte Greening, 13 Ves. 206. Ex parte Mowbray, 1 J. & W. 428. Sect. 2.] OVER STRANGERS. 17 had been discounted by the drawer with the bankrupt, or restrain joined the drawer in a petition, that upon payment of the ^^^ "'^.^'°" 11 1 11-111 • -11 ^^^^ from balance due on the bill the assignees might be restrained suin ' not a sen- judgments, and warrants ot attorney, by which the an- vener. nuities are secured to the grantee, are prepared in his office, and he charges for them in his bill as an attorney, thoufrh the annuity commission may be included in these charges, — he will not be subject to the Bankrupt law as a scrivener. (1) It has been decided also, that a Clerk i?i the Custom-house, who was employed by merchants to receive money on de- bentures, with which he discounted bills on his own ac- count, was not a scrivener within the meaninsfof the Bank- rupt law. (2) Persons insuring Ships, or their freights, or other matters, Under- against perils of the sea. This description of persons (in ^^"'•'^'''^• common parlance called Underxsoriters) could not, before the new act, m that character, be made bankrupt. (3) Warehousemen, Wharf ngers. Packers. Ware- Builders. These were not considered traders within the whar- ' formei" bankrupt laws. (4) fingers, Carpenters, Shipwrights. It was doubtful whether a car- guiijers penter could formerly be made bankrupt, the Judges having Carpen- upon one occasion differed on the point (5) ; though Lord '^^vht"^" Holt decided that a ship-carpenter was within the former statutes. (6) Victuallers, Keepers of Inns, Taverns, Hotels, or Coffee- Inn- houses. Neither victuallers, nor inn-keepers, could formerly ^^^P^^'Sj be made bankrupts, as long as they confined themselves to supplying their guests m the house ; but if their dealings showed a geiieral intention to sell out of doors, however small the quantity actually sold, they v.'ere then considered liable. (7) (l) Hurd V. Brt/dges, Holt, 654. (4) ClarJcv. Wisdom, 5Esp. 147. (2; Hanson v. Harrison, 2 Esp. Williams v. Stevens, 2 Camp. 500. 555. But quaere, whether he would (5) C7ia2wia)iv. Lavijo/iii-c, oMod. not now be held to be within the 155. words of the new statute, viz. as (6) Kirnerj v. Smitli, 1 Ld. Raym. " receiving other men's monies or 741. estates into his trust or custody." (7) Cris-p v. Pratt, Cro. Car. 549. (3) Ex parte i?c//, 15 Ves.5 55. Newton v. Tri§^, a Mod. 329. 26 OF THE TRADING. [Ch. 2. Cattle dealers. Dyers, &c. Dijers, Printers, Bleachers, Fullers, Calenderers. A dyer was considered formerly a trader within the Bankrupt lavvs(l); though the authority usually referred to was certainly far from decisive on the point : and a bleacher, (according to Sir William Evans (2),) had no more right to be designated a trader than a washer-woman. Cattle or Sheep Salesmen. This designation will, it is apprehended, include Drovers (who were specially ex- empted from Bankruptcy by the 5 Geo. 2. c. 30. s. 40.); for, as it has been decided that a drover is not merely a person confined to the description in the 5d)i6 Edw. 6. c.l4. s. 16., but one who employs himself generally in buying cattle and selling them again (3), a drover may consequently either be considered as a cattle salesman, — or as a person " seeking his living by buying and selling goods or commodities." " All persons using the trade of merchandize by way of bargaining, exchange, bartering, commission, consignment, or othenmse (4), in gross or by retail." " All persons, who, either for themselves, or as Agents or Factors for others, seek their living by buying and selling; or by Buyitig and Letting for Hire, or by the Worhnanshij) of goods or commodities.^' (5) Factors were also specified as persons liable to Bank- ruptcy by the 5 Geo. 2. c. 30. — though there have been some doubts expressed as to the extent of the meaning of the term (6), which the above description may perhaps buying and remove. The words *' buying and letting for hire" will hire"^ ^^ include a large class of persons, who were not before General descrip- tion. Factors, iSalk. 109. Saunder son V.Bowles, 4 Burr. 2067. Buscall v. Hogg, 5 Wils. 146. Patmore v. Vaughan, 1 T. R. 572, Ex parte Maginnis, 1 Rose, 84. (1) Squire y. Johns,Cro.Jac. 5S5, (2) Letter to Sir S. Romilly, p. 167. (3) Bolton V. Sowerhy, 1 1 East, 278. Mills V. Huglies, Willes, 588. and see per Bayley J., 1 1 East, 279. (4) These words arc newly in- troduced into the description of the trading (5) These words in italics are also new, — and are, as well as much of the other new matter in the descrip- tion of persons liable to become bankrupt, taken from the Scotch bankrupt act (."3 G. 3. c. 74. s. 13.), in accordance, it is presumed, with the suggestions of Sir W. Evans, in his able letter to Sir v^. Romilly, p. 167. (6) Willes, 189. Sect. 2.] OF THE TRADING. 27 strictly subject to the Bankrupt laws, such as Job-masters, Liverif-stahle hccpers, Hackneij-men, Furniture hroJcei's, &c. A Ship-owner too, who was not formerly liable to be made a bankrupt, unless he freighted his ship with a cargo (1), will now, if he buys the vessel, and lets her out on charter, be held, no doubt, to come within the above description. Persons seeking their living " by the Workmanship of Work- goods or commodities^^ will comprehend all the operative ™^"* classes, save common labourers or workmen for hire, who are afterwards excepted by the statute. Indeed, various species of manufacturers and artizans, whose living is sub- stantially gotten by mechanical labour, with a mixture of buying and selling, have, independently of the new statute, been always held to come within the Bankrupt law ; — such as Shoemakers, Smiths, and the like, whose labour is only in amelioration of the commodity they buy, and to render it more fit for sale. (2) To these may also be added Clo- thiers{3), Ta}iners{3), Bakers (3), Brexvers{3), Plumbers {4!), Nailors (5), Butchers (6), and many others, to whom the same observation will apply. Having thus disposed of the different occupations and trades specifically mentioned in the statute, it remains to consider the very comprehensive descriptions of " all per- sons who seek their living bij buying and selling" — and of those also, who " use the trade of merchandize by way of bargaining, 8fc., in gross or by retail" A trader, as Lord Camden has described him, is one Definition who gains an extensive credit upon an uncertain and in- ^^^^^^ visible capital ; his credit being in proportion to the extent of his dealings, and being liable, from the very nature of his trade, to unforeseen losses, by the failure of those per- sons to whom he is obliged to give credit, and with whose credit bis is interwoven. (7) To bring a man within the (1) Ex parte ^0M'e5, 4 Ves. 162. (5) Goodinge, 12. (2) 2 Bl. Com. 476. Cro.Car.51. (6) 4 Biirr.214S. Dallyw Smith. (3) 2 Com. Dig. 1 and 2. (7) Port v. Turton, 2 VVils. 169. (4) Hut. 46. 28 OF THE TRADING. [Ch. 2. Smuggler. A single act not suflScient* descriptive words of the statute, as a person " seeking his living by buying and selling," there must, of course, not only be proof of the animus ?nercandz, but of the animus quare?idi victum mercando. ( 1 ) And the buying and selling also should be a buying and selling of the same commodity to constitute a regular trading; for a man who lives by buying only^ or selling only^ cannot be a bankrupt. (2) It is innnaterial, however, whether the commodity is sold again in the same state, or whether it is converted into any other shape, and has its value improved by the process of manufacture, or by manual labour bestowed upon it. Thus a Merchant^ or Retail Shopkeeper, a Manufacturer on a large scale, or a Common Artizan, who seek their living by purchasing goods or materials, and selling them again, either in their original or altered state, are all equally traders within the Bankrupt law. A person who even deals in a commodity illegally, as a, Smiigglcr [3], though he commits an offence against an act of parliament, and is punishable for so doing, is nevertheless considered a trader ; for (as in the case of the Clergyman (4) before mentioned) he is not to avail himself of the breach of one law in order to avoid being subject to another. So a person buying and selling Horses may be a trader, though he has not taken out the licence required by law to deal in horses. (5) One single act of buying and selling, however, will not make a man a trader within the Bankrupt law; for he could not be in that case said to seek his livi?ig ,- and, there- fore, some repeated practice of buying and selling, and an endeavour to gain profit by so doing, is required to be proved. (6) For a man may import goods without selling them, or sell off goods previously bought for his private use or any special- purpose, without being deemed a (1) Ex parte Paterson, 1 Rose, 196, Cobb v. Si/moiids, 5B. &A. 402. 516. (2) Per Ld. M., Hankey v. Jones, (4) Ante, p. 20. Cowp. 750. (5) Ex parte G'lbbs, 2 Rose, 38. (.3) Ex parte MeijnoU, 1 Atk. (6) 2B]. Com. 476. Sect. 2.] OF THE TRADING. 29 trader. (1) But trading in a very small degree will sustain a commission, if sufficient for the inference of an intention to deal generally ; the trading depending not so much upon the quantity as upon the intention, (2) Neither is Siwy jwofit an absolute ingredient to prove a man a trader ; for the general presumption in all cases of Bankruptcy is, that there is no profit, — but either waste, imprudence, misfortune, or ignorant trading. The true criterion is, whether the party means to sell, mth a view to jprqftt, to any person who applies for the commodity in which he professes to deal. And the intention of the party to sell generally to all customers, or as a favour to particular persons, is a question of fact, that must be left in each particular case to a jury to determine. (3) The PuUisher of a Ne'-jospaper, having the whole daily im- Publisher pression from the proprietors, reselling it at a profit, and ^'^"sws- bearing the loss of such papers as remain unsold, has been considered to be a trader within the Bankrupt law, — not- withstanding he is in fact a servant of the proprietor of the newspaper. (4) Draimjig and redrawifig Bills of Exchatige, — if there be a Drawing continuation of doing; so, with a view to ijain a profit upon ^"^ '^.^' . . . CD i. ir drawino- the exchange, is a trafficking in exchange, — and a trading, bills of also, within the Bankrupt law. (5) exchange. A Fisherman, buying fish of other boats at sea, and sellino- Fisher- it on shore, has been likewise deemed a trader; but not if '"^"* he merely sells the fish which he catches himself, or even if he buys a few fish occasionally to make up a sufficient cargo. (6) (1) 5Keb. 451. 1 Ventr. 29. 70. 5 G. 4. c. 98. the " drawing and (2) Ex parte Moule, 14 Ves. 602. redrawing, negotiating or discount- (3) Patman v. Vaughan, 1 T. R, ing bills of exchange," was made 572. Bartholomew V. Skenvood, a specific act of trading; but that Ibid. 575. Gale v. Halfkiiight, provision is, for some cause un- 3 Star. 56. known, omitted in the present (4) Gillinghamv. Laing, 2 Marsh, statute. 236. 6 Taunt. 532. (6) Heanny V. Birch, 1 Rose, (5) Richardson v. Bradshaiu, 556. Ex parte Gallimore, 2 Rose, 1 Atk. 128., but see post. In the 428., per Ld.Eldon. 90 OF THE TRADING. [Ch. 2. Brick- maker. Owner of a colliery. Lands or mines oc- cupied for a manu- facture. A Bricl'maJccr, who took the earth off the waste (for which he afterwards paid a consideration), with which he made the bricks, and sold them when made, has been held a trader. (1) But if he makes bricks from the produce of Jiis otfji soil, whether he holds the land as a termor, or a freeholder, he is not then considered so ; for every man has a right to make the most he can of the produce of his land, without being deemed a trader. But if he jmrchases the clay io make the bricks, he would then bring himself within the Bankrupt law. (2) And, upon the same principle, the owner of a Colliery selling coal that he buys at market, together with that from his own mine, is a trader within the statute (3), though it is a question for the jury as to the intention with which he bought the coal. (4-) For if a man buys any article, for the mere purpose oi mixing it with the produce of his own land, in order to sell the mixture more advantageously, — he does not thereby become a trader. (5) But where lands or mines are occupied, not for the pur- pose merely of selling the produce, or of getting the ore, but for the purpose of carrying on a great manufacture, which renders it necessary to puixhase other produce or ore, in order to mix with the produce or ore of the occu- pier's lands or mines, this becomes then a trading within the Bankrupt law. (6) The question, in all these cases of working up the pro- duce of the soil, is, whether the bricks are made, or the ore is manufactured, merely as a mode oi enjoying the ■profits of the land, — or whether the making of the one, or the manu- facture of the other, is done and carried on substantially and independently as a trade. And the same rule of con- (1) Ex parte Harrison, 1 Bro. 173., and see note(l), p. 31. (2) Ex parte Gallimore, 2 Rose, 424. Sutton V. Weeley, 7 East, 442., and see Parker v. Wells, 1 T. R. 34. iC.B. L. 41. et seq. (3) Port V. Turton, 2 Wils. 169. (4) 2 Rose, 424. v,5) Patten v. Browne, 7 Taunt. 409. (6) Crawshay v. Moule, 1 Swanst. 495. 1 Wils. 181. Sect. 2.] OF THE TRADING. 31 struction applies to Manufacturers of Alum^ Lime-burners, and -proprietors of Stone quarries. ( 1 ) With respect to persons engaged in Partnership, — it has Partners, been held sufficient proof of trading, that a party acknow- ledge himself to have been in partnership with one who was a trader, and has also given directions in the concern, — although no positive act of buying and selling during the term of the partnership, as to him, may be established m evidence. (2) An Executor, who carries on the trade of his testator, and Executor in the course of such dealing buys and sells entire parcels and quantities of goods, is liable to be made a bankrupt ; though he carries on the trade merely for the benefit of his testator's children (3), and though his name does not ap- pear in the business. (4) If a person leaves off his trade for some other employ- ment, his doing so will not exempt him from his liability to be made a bankrupt, unless he discontinues it with the ex- press object of abandoning it, and completely detaching from himself the character of a trader. (5) And still less will a person be exempted from such liability, who only partially discontinues his trade, or ceases to carry on only a parti- cular portion of it. Thus a Pawnhroher, who had given over taking in goods on pledge, but continued to sell the unredeemed pledges, was held still to carry on the trade of a pawnbroker, and to be subject to the Bankrupt law. (6) So a Mamfacturer, who merely ceases to manufacture more goods, does not lose the character of a trader if he continues to sell those already manufactured. (7) So also where a party was in partnership with another, which had Partial dis continu- ance of trading. (1) Brickmakers, Lime-burners, and Manufacturers of Alum, were specifically enumerated by the 5 G. 4. c. 98. as persons liable to be made bankrupt; and there seems to be no reason why they should have been left out of the present statute". (2) Parker v. Barker, 1 Brod. & Bing. 9. (.5) Viner v. Cadell, 5 Esp. 88. Ex parte Garland, loVes. 110. (4) Hankey v. Towgood, 1 C. B. L. 67. ; but see post. (5) Ex parte Paterson, 1 Rose, 402, Ex parte Cundy, 2 Rose, 257. (6) Rawl'mson v. Pearson, 5 B. & A. 124. (7) Wliaren v. Routledge, 5 Esp. 235. 32 OF THE TRADING. [Cli. 2. been dissolved some years, and no act of trading had been done for two or three years before the petitioning creditor's debt accrued, but the concern had not been ultimately wound up, and part of the stock still remained in the warehouse of the parties undisposed of, — the trading in this case was held to be continued. (1) And though a trader retires altoge- ther from business, yet if he owes debts contracted in the course of his trade^ and afterwards commits an act of bank- ruptcy, he is still liable to be made a bankrupt. (2) What not sufficient. Farmers. Section III. What is not a sitfficient Trading. In considering what is not a sufficient trading within the Bankrupt law, we may first notice those persons who are sjiccially exempted from Bankruptcy by the statute. 1. Fanners, — who are also excepted by the 5 G. 2. c. 30. ; and the reason of the exemption seems to be, that trade is not their princijml, but only a collateral object; (their chief concern being to manure and till the ground, and make the best advantage of its produce ;) and also, that the subjecting them to the law of Bankruptcy might be the means of defeating their landlords of the security, which the law has given the latter, above all other creditors for the payment of their reserved rents. (3) But this exception, of course, merely extends to them while they continue to deal as farmers; for if they trade in any commodity not incident to the farming business, their character of farmers will not exempt them from a liability to be made (1) Backhouse v. Tarleton, 2 Star. Evid. 143. (2) Ex parte Bamford, 15Ves. 449. The early cases upon the question, whether a trader who had ceased to buy, but was selUng off' his stock, could be made a bankrupt, are not very satisfactory. (Cotton V. Daintry, 1 Ventr. 69. 2 Keb. 487. Lutw. 411. Bateinan's case, 1 Ventr. 166. Naylor v. Hall, Palm. 323.) The cases cited in the text, however, place the doctrine now upon its proper footing, — the material point for consideration being, whether the trade is com- pletely abandoned, or whether it is only partially discontinued, with an intention to resume it. (3) 2B1. Com. 474. Sect. 3.] OP THE TRADING. 33 bankrupt. Therefore, though a farmer who makes cheese What not for sale, and buys salt and runnet to mix with the milk of sufficient, which it is composed, is not thereby a trader, — yet if he huij& up the cheese from other dairies and sells it, he in such a case becomes a trader. So also if he buys a greater quan- tity of horses or cattle, or of any other commodity, than can be fairly considered necessary or incidental to the enjoyment and stocking of his farm, and sells them again for profit.(l) But if he sells his horses or cattle when he has no longer need of them, — or if he purchases provender for his cattle, and, finding he has more than is requisite for their con- sumption, sells part of it again, — then either of these acts of buying and selling will not render him a trader. (2) So where a farmer, who kept hounds, was accustomed to pur- chase dead horses to feed them, and sell the skins and bones when the carrion was consumed, he was not con- sidered a trader within the Bankrupt law; — notwithstanding on one occasion he had said that he should make a good thing of it; for the horses were purchased expressly for the dogs, and not with the view of any ulterior profit. (3) And where a farmer occasionally (that is, six times in twelve years) bought horses, hay, corn, &c. even with a view to sell again for profit, it was held that he did not thereby necessarily make himself a trader within' the Bank- rupt law; and that it was for a jury to determine, whether he was such a general dealer in horses, or those other articles, as to induce them to consider him as seeking his livelihood by buying and selling. In this last ease Mr. J. Chambre observed, that he could not help thinking that in Barthulomenjo v. Sherwood {if) it was a pretty strong thing there to find the party a trader (5) ; and that (1) Bartholomew v. Sherwood, (5) Smumersett v. Jervis, 3 B. 1 T. R. 57.J. note (a). Mayo v. &B. 2. 6 Moore, 56. Archer, \^Vc.5\o. Ex parte Gi'.i^, (4) Supra 2 Rose, 38. Wright v. Bird, 1 Pri. (5) He had bought and sold five 20. or six horses for profit, in the (2) Bolton V. Sovterby, 1 1 East, course of two years. 274. OF THE TRADING. [Cll. 2. What not sufficient. Graxiers. Drovers not ex- empted. Cow- keeper. and WorJc- men. I^eceiver. "encral. any gentleman might make a few occasional bargains, with- out having recourse to them as the means of seeking his liv- ing. (1 ) So if a farmer, from the deHciency or badness of his crops, buy other produce to mix with his own, in order to improve it, or to make up the usual quantity for sale, — this act of buying and selling will not subject him to the Bankrupt law ; his object being not to become a regular dealer in the article bought and sold, but to make the most of the produce of his farm. (2) 2. Graziers are also excepted (as they were by the 5 G. 2. c. 30.) from liability to be made bankrupt; and for the same reason as applies to farmers. That statute (as has been before observed) also excepted Drovers ; but the same reason of exemption is not applicable to them ; a drover being a person who buys cattle at one town or market, and drives thera to another for the purpose of speedily selling them (3); whilst a grazier, though ho buys cattle for sale, yet agists them generally some length of time upon his farm, for tlie purpose of fattening them, and preparing them for the market. A Coxo-kceper^ also, who purchases cows and sells the milk, is considered within the description oi ix farmer or grazier ^ notwithstanding he sells the calves as well as the milk, and when the cows have ceased to yield milk, is in the practice also of fattening them for sale. (4) 3. Comrnon Labourers, or Workmen for hire, are also ex- cepted by the statute, as they were by the 5 G. 2. ; for these persons not only do not get their living by buying and selling, but they have also neither capital nor credit; both of which are essential ingredients in the character of a trader. 4. Reeeiver-gencral of the Taxes, — which office was also in the exceptions of the former statute; the principle of the ex- (1) Stewart v. Ball, SN. R. 78. '(3) Willes, 590. (2) Patten v. Browne, T Taunt. (4) Carter w. Dean, \?>v!anst.6^. 409. Mii. Y^iwie Gallimore, 2. Rose, Ex parte Lei/j/flrd, cit. ibid. 1 Wils. 427. 85. Sect. 3.] OF THE TRADING. 35 ception beinff* that the kinir should not be defeated of those What not extensive remedies, which are put into his hands by the '' " "^" ' prerogative. ( 1 ) 5. Member of, or subscriber to, any incorporated Com- Public mercial or trading Companies established by Charter or Act of °^'^P^^*^^' parlia?nent. This exception was provided for before, by particular statutes (2), as to members of the Bank of Eng- land, and the East India and some other public com- panies, — but was not an express exception included in the Bankrupt law. Besides these persons who are thus sjjecially exempted from Bankruptcy by the statute, there are various others who by different judicial decisions have been held not to come within the Bankrupt law. For as a single act of buying and selling will not con- stitute a trading (3), so neither will occasional acts under particular restraints, or for particular purposes. Thus the Colonel of Colonel of a Fencible re^c- (1) 2 Bl. Com. 474. (7) Per Holt C.J. Comb. 182. (2) Whitm. B. L. 15. 1 Salk. i09. (5) Ante, p. 9. (8) Gibson v. Thonwson, 3 Keb. (4) Ex parte Blnchnore, 6 Ves.S. 451. (5) 3 Mod. 550. Valentine v. (9) Skin. 292. Vaii'^kan, Peake, 76. Oo) 5 Keb. 151. C. B. L. 56. (6) Ex parte Walker, 1 C. B. L. 55. Ex parte Craddock, ibid. D 2 36 OF THF, TRADING. [Ch. 2. What not sufficient. Persons sellin;: the produce of their land. Lead and iron mines. Cider grower. Coal-vmie, stone- quarry. Lime- burner. Alum- works. sioners of the Excise, and Farmers of the Customs ( 1 ), are none of them within the bankrupt law. No person possessed of or occiipyinfr land, cither as 'a freeholder or a termor, and selling the produce of it, whether obtained above or below the surface, is considered a trader within the law of Bankruptcy. And it makes no difference whether such produce is got and sold without undergoing any change, — or whether, after getting or gathering, it is worked up for sale in the usual way with other ingredients, and by various processes. Thus the worker of Lead or Iron Mines, or the Cider-groixier, who respectively cause the ore and the apples to undergo different processes, before they are converted into the material which is sold, is no more liable to be made bankrupt than the owner of a coal-mine ['2) or of a stone-quarry {?>), or the farmer or market gardener, who sell the simple substance and produce of the soil in the same state, as it is respectively got and gathered. So the maJdng of four from corn grown on a man's own land, and selling it afterwards for profit, will not make him a trader. For all these different processes are only incidental to the necessary sale of the produce of the soil, and the usual mode of enjoying it. And for the same reason, the lessee of a farm on which was a lime-kiln, and which he worked as a lime-hurner, was held not within the bankrupt law (4) ; — nor the lessee of Ahim-xwrks, — evidence being given of the usual mode of enjoying such works, and of the process of making alum ; in which, it appears, the rude mass is the rock, which, after being dug, is burned, steeped, and boiled in lead, and then mixed with kelp, lees, and urine. (5) And though different ingredients, as has been already observed, may be bought, m order to mix with the produce of the land, and the better to manufacture it and bring it to market, — yet this circum- (1) iVentr. 2V0. (4) Ex parte TJirfge, 1 Rose, 3 16. (2) Fort V. Tnrton, 2 Wils. 1S9. 1 V. & B. 360. {z) Ex parte Gardner, 1 Rose, (5) Newton v. Xewton, 1 C B. L. 377. ; and see ante, p. 30. 57. Sect. 3.] OF THE TRADING. 37 Stance of itself will not render a man the more liable to What not Bankruptcy. (1) The dislinction that must not be lost ^ "^^"^"^ ' sight of is, whether the materials are purchased, for the express purpose of putting the naked production of the earth into a manufactured and marketable state; or whe- ther such production is an insignificant article, compared with the quantity or value of the materials bought, and of the manufacture itself. (2) Upon this principle, the Fisherman, as we have seen (3), Fisher- who does not obtain a sufficient cargo by his own fishing, and buys a i'ew fish merely to complete it, and supply the market, is not held to be a trader (4); for, in order to enjoy the produce of his personal labour, he is thus compelled, as it were, to the act of buying occasionally, that he may be able to sell such produce. If, indeed, the materials bought are beyond "ooJiat is Jiecessarij to supply the personal labour, it then becomes an act of trading. (5) But where a party, being engaged in the Greenland fishery^ in the course of nine years made three different purchases of oil, one of which he had sold again. Lord Chief Justice Abbott thought it was too slight a case of dealing to warrant a jury in finding him a trader, and as one who had sought his livi?ig by buying and selling. (6) As the proprietor or occupier of land cannot be made a Buying bankrupt for acts of buying and selling its produce, so, 'l^f J^^^ a fortiori, the buying aiid selling land itself, or an interest in land, is not such a buying and selling, as will constitute a trading. (7) Bank stock and Government seairities, not being articles Govern- or merchandize, — the mere buying and selling them, it has ^"^-^JJ' been said, will not be a trading within the Bankrupt law (8); &c. (1) Patten V. Browne, 7 Taunt. (5) Ibid. 409. Ex parte Galtimore, 2 Rose, (6) Gale v. HalfknigJd, 3 Star. 427. 56. (2) Parker v. Wells, 1 T. R. 34. (7) Port v. Turton, 2 Wils. 169. (3) Ante, p 29. (8) 2 Bl. Com. 476. Colt v. Net- (4) Ex parte Gallimore, 2 Rose, tervUle, 2 P. Wois. 508. 428. D 3 38 OF THE TRADING. [Ch. 2. What not sufficient. Stock- broker; Quaere. Drawing and re- drawing bills of exchange. Executor. and this position lias been laid down in all the books that have treated upon Bankruj)lcy. It is. however, a mere obiter dictum of Lord King, which was applied by him to the case of a projvicto?- of East India stock, and does not seem to be ajiplicable to the case of a Stock-broker, re- ceiving a commission for buying and selling stock for other persons. With respect to persons engaged in the traffic of draiving and redratjoiiig Bills of Exchange, Sfc. — it is not every draw- ing and re-drawing that will be considered to be traffic. For if a person having occasion for money to pay a debt on mortgage, or any other security, draws on his banker for it, and as a mode of repayment, permits the banker to draw on him by bills, — such a drawing and re-drawing would not, it seems, be held to constitute a trading. (1) An Executor, who merely disposes of the stock in trade of his testator, does not thereby become a trader, even if he buys some additional goods to render those on hand more saleable. Therefore, where the executor of a wine- merchant found it necessary to buy wines to refine the stock left by his testator, his doing so was held not to render him a trader within the Bankrupt law. But if he had bought wines, and sold them to the customers entire, he would then, as we have already seen, have been liable to be made a bankrupt (2), notwithstanding even he was trading for the benefit of his testator's children. (3) A buying in connection with others, with a view to carry on a system of fraud, is not a trading within the bankrupt law (4); but when a party represents himself as a dealer, and offers goods in exchange, it is then a question for the jury to say, if he does not buy to sell again. (5) (1) Per Ld. M., Hanhey y. Jones, Cowp. 751. (2) Ex parte Nutt, 1 Atk. 102. (5) Viner v. Cadell, 3 Esp. 88. 10 Yes. 1 10. ; and see ante, p. 31. (4) Millikin v. Brandon, 1 Carr, 380. (5) Ibid. Sect. 4.] OF THE TRADING. 39 Section IV. Of the Place 'where the Trade must he earned on. The acts of buying and selling, which jointly constitute the trading, need not hoth^ take place in England; for if a merchant, whether native, denizen, or alien, buys beyond sea and sells in England, or buys in England and sells beyond sea, — it is a sufficient trading to make him liable to a commission of Bankruptcy, provided he comes to this country, and there commits an act of Bankruptcy. For his trading ifo England procures him a credit here; and it is quite sufficient if he is occasionally, and not permanently resident in this country. (1) (l) Alexander w. Vaughmi, Cowp. 398. Ex parte Smith, cited Cowp. 402. Hitchcox V. Sedgwick, sVern. 162. 1 Salk. 110. Dodsworlh v. Anderson, Sir T. Raym. 375. Jones, 141. Ex parte Williamson, 1 Atk. 82. Inglis V. Grant, 5 T. R. 530. Allen V. Cannon, 4 B. & A. 418. Williams v. Nunn, 1 Taunt. 270. D 4 40 CHAP. III. OF THE ACT OF BANKRUPTCY. 1. Of the Nature and Effect of an Act of Bankruptcy generally. 2. Of the several Acts of Bankruptcy specified in the St a tide. Section I. Of the Nature and Effect of an Act of Bankniptcy generally. IJEFORE we enumerate the various acts of bankruptcy spe- cified in the statute, it is proposed to consider the general nature and effect of an act of bankruptcy; which, though treated in many of the former statutes as a criminal act on the part of the bankrupt, has been now king regarded as nothing else than a mere proof or test of a trader's in- solvency. And in this light it is viewed by the legislature in the several enactments of the present statute, which are more adapted to the relief of embarrassment and mis- fortune, than the punishment of fraud or crime. Must not An act of bankruptcy, to ground a commission on, ought be of long ^q \yQ Q^e recently committed, or at least not one of very long standing; for there is sometimes great mischief in the re- lation back, which the law is obliged to give to the act of Bankruptcy ; — and when that is endeavoured to be pushed to too great an extent, — as by suing out a commission on one committed several years ago, — the commission will be super- When seded. (1) The act must also be committed either during ruist be tradings or subsequent thereto^ — and also during the existence ted. (1) Ex parte Bowes, 4 Ves. 175. i Lev. 13. Ch. 3. S. 1.] OF THE ACT OF BANKRUPTCY. 41 of a debt contracted when in trade. (1) And as the statute seems to be confined to England, and not to extend to acts done in other parts of the British dominions, or in foreign countries, (with the single exception of remaining out of the realm), — the act of bankruptcy must, therefore, with tliat exception, be committed in England. (2) It must also be committed before the commission is sealed; though, if the sealing of the commission, and the committing of the act of bankruptcy, are on the same day, the priority of the act of bankruptcy may be established by evidence. (3) And in the case of a partnership, and a joint commission issued against the firm, each of the part- Partners, ners must have committed an act of ba nkruptcy in order to support the commission. (4) The legislature having also expressly declared, by posi- Not by tive enactments, what shall be considered criterions of in- I'JiP'ica- solvency or fraud whereon to ground a commission of bankruptcy, none other can be admitted by inference or implicalion. (5) A peculiar and a very important quality attached to an Cannot be act of bankruptcy is, that, when once clearly committed, it purged, cannot afterwards be explained away (6); even though the trader was perfectly unconscious at the time that he was committing an act of bankruptcy — and when he was so conscious, did immediately every thing in his power to re- call it (7); or, even though the trader for some time after- wards continues perfectly solvent, and carries on a con- siderable trade. (8) But though a trader may commit a (1) Ex parte Bamfurd, 15Ves. 15 Ves. 462. IvVes. 198. sBl.Com. 449. Ex pilrte Dewdney, ibi(i. 495. 479. (2) Alexander \. Vaughan, Cow\i. (6) HopJcins v. Ellis, 1 Salk. 110. 598. Nordcn v. James, Dick. 533. Holt, 95. Colkett v. Freeman, 2T. Inglis V. Grant, 5 T. R. 530. R 59. Wood v. Thwailes, 3 Esp. (.3) Wydown's case, ]4Ves. 80. 245. Ex parte Dufrene, 1 Rose, 333. (7") 2 T. R. 62. Muckloio V. {^) Mills \. Bennett, 2 y[.&^. ilffl?/, 2 Taunt. 479. ' 556. Ex parte Mavor, 19 Ves. (8) Hassells v. Simpson, Doug. .^ 543. 69. Pulling V. Tticker, 4 B. & A. (5) iBl. Rep. 442. 3Cowp.350. 382. 42 OF THE ACT OF BANKRUPTCY. [Ch. 3. plain act ot" bankruptcy, yet if he afterwards pays off or ccinpounds with all his then creditors, he in that case becomes a new man, and will not afterwards be affected by it.(l) Must not An act of l)ankruptcy, concerned between the bankrupt be con- ^j^^] ^]^q petitioninnr creditor, is of no avail against creditors certed. . . " not privy nor consentinir to it; for the pi-esumption is, in such case, that the petitioning creditor is to have some pecuMar advantage over the other creditors. (2) But a distinction has been lately made at law, between a com- mission founded upon a concerted act of bankruptcy, and a commission sued out at the instance merely of the bankrupt, — the former being held bad, but the latter good until it was superseded. (3) But this distinction is not re- cognised by the Lord Chancellor. (4) It is no objection, however, to an act of bankruptcy, that the trader has been advised to have recourse to it by a friend. (.5) But when the attorney for the bankrupt was also attorney for the petitioning creditor, and recommended the bankrupt to be denied when he called with the petitioning creditor, — this act of bankruptcy was considered fraudulent, though the denial was without the knowledge of the petitioning credi- But parties tor. (6) Notwithstanding, however, a concerted, act of estopped bankruptcy is bad against every one not privy to it, yet by it. all persons, who are parties or privy to the commission of it, are wholly estopped from afterwards disputing it. (7) When not And there is a new act of bankruptcy included in the invalid. present statute, viz. the filing of a declaration of insolvency at the bankrupt-office, which is declared to be not invalid (1) iSalk. no. Ex parte Brookes, ibid. 257. Ex {^) Field \. Bellamy, 'QuW.'^.V. parte Moule, 14 Ves. 602. Ex 39. Hooper v. Smith, iBl.Rep. parte ^in/Her, 1 Mad, 250. 441. Bav}ford v. Baron, 2T. R. (5) Roberts V. Teasdale, Peake, 594. Eyre v. Birbeck, cit. ibid. 27. Taj}jjejiden V. Bicrgess, 4 East, 230. (6) Prosser v. Smith, 1 Holt,442. (5) Shew V. Williams, 1 Ry. & (7) Bramley v. Miindee, B. N. M. 19. P. 39. Allan v. Hartley, 1 C.B.L. (4) Ex parte Staff, Buck. 431. 92. Stewart v. Tiichman, 1 Esp. Ex parte Grant, 1 G. & J. 17. ; and 108. 1 Bl. 441 . 2 T, R. 594. 4 East, see ex parte Prosser, Buck. 77. 250. Sect. 2.] OF THE ACT OF BANKRUPTCY, 43 by reason of its being concerted between the bankrupt and any other person. (1) Section II. Of the several Acts of Bankruptcy specified in the Statute. The third and ^ve following clauses of the new statute describe what are to be henceforth considered acts of bankruptci/, — including not only those under the former statutes, but also specifying some which were doubted, or which were not in reality acts of bankruptcy, under the former law. They are no less than seventeen in number, besides two others, which are only applicable to members of parliament. Those affecting the general trader are as follows : 1. Departing the Realm. Enumer- 2. Being out of the Realm, and remaining abroad. ^^^^ ^f 3. .Departing from his Divellitig-hoicse. bank- 4. Otherivise abseyiting himself ^ • * 5. Beginning to keep his House. 6. Suffering himself to be arrested for any debt not due. 7. Yielding himself to Prison. 8. Siiffering himself to be Outlaiioed. 9. Procuring himself to be arrested. 10. Procuring his goods, money, or chattels to be attached, sequestered, or taken in execution. 11. Making, or causing to be made, either within this realm or elsewhere, any fraudulent Grant or Conveyance of any of his lands, tenements, goods, or chattels. (2) 12. Making, or causing to be made, any fraudulent Sur- render of any of his Copyhold lands or tenements. 1 3. Making, or causing to be made, any fraudulent Gift, Delivery, or Transfer of any of his goods or chattels. With intent, in any of these cases, to defeat or delay his creditors. (l) Section 7. and see post. C2) Sed vide sect. 4. and post. H OF THE ACT OF BANKRUPTCY. [Cll. 3. Enumer- All the above-mentioned acts of bankruptcy are, there- ation ot f(j,.g^ jointly made up o^ action cmd intent^ — being in iliem- bank- selves, considered as acts alone, indifferent and equivocal, ruptcy. and deriving their character only from the intent that ac- ' companies the act; but these that Ibllow are in themselves substantive acts ofbanhruptcij, and where the intent to tlelay creditors is wholly immaterial. l*. Having been arretted, or committed to Prison, for debt, or non-pai/ment of moneij, — and i/iereiqwn lying in priso7i for t'lSoenty-onc days. ( I ) 15. Escaping out of Prison, or custody, after having been so arrested, committed, or detained; the act of bankruptcy in this case to relate back to the tine of such arrest, commit- ment, or detention. (2) 16. Filing a declaration in the (fffice of the secretary of bankrupts, signed by himself, and attested by an- attorney or solicitor, that the party is Insolvent, or unable to meet his engagements. (3) 17. After a docket struck, paying money, or giving or delivering any satisfaction or security Jor his debt, or any part thereof, to the person striking the docket, Vihereby such person may receive more in the pound in respect of his debt, than the other creditors. (4) To the above may be added another act of bankruptcy, specifically declared to be such by the last Insolvent Debtor's Act, (the 7 G. 4. c. 57. s. 13.) (5) namely, fling a petition by an insolvent to take the benefit of that act. Having thus enumerated all the acts of bankruptcy af- fecting the general trader, it is now proposed to consider each of them separately, for the purpose of examining how (l") Sect. 5. By the former law, last of the numerous acts of par- the time was two months ; and see liament on this prohfic subject ; post 55. for the more ilill descrip- which has given birth to no less tion of this act of bankruptcy. than ten voluminous statutes with- (2) Sect. 5. in the last sixteen years. There (3) Sect. 6. really appears to be no end of (4) Sect. 8. legislation on insolvency. (5) This, it is to be hoped, is the Sect. 2.] OF THE ACT OF BANKRUPTCY. 45 those which were previously in operation have been sever- ally construed by the various decisions of our courts. And first, as to Depavtiiig the Realm, whereby a man Departing withdraws himself iVom the jurisdiction and coercion of Realnu the law of his own country. Whenever a trader hath en- deavoured in such manner to avoid his creditors, or evade their just demands, this has uniformly been declared by the legislature to be an act of bankruptcy. For in this extra-judicial method of proceeding, which is allowed merely for the benefit of commerce, the law has always been extremely watchful to detect a man, (whose circum- stances are declining,) in the first instance, or at least as early as possible, that the creditors may receive as large a proportion of their debts as may be ; and that the trader may not go on wantonly wasting his substance, and then claim the benefit of the statute, when he has nothinii left to distribute. (1) And this observation, indeed, a}))ilies to every other act of bankruptcy, as well as to the one now under consideration. Slight evidence, of the intention to Slight evi- defeat or delay his creditors, will be sufficient to accompany [T'^^j-^ the proof of departing the realm, if it appear that creditors necessary, are in fact delaijed, and that such delay was the inevitable ^^ ?"|^';" consequence of the departure; for it is a principle in law, intention that every one must be supposed to foresee and intend inferred what is the necessary consequence of his own acts (2) ; as, Tgt^" ju indeed, it is frequently holden in criminal cases, that the necessary plain and palpable consequences of an act done, are, when '^''"'^" ' _ ' ' _ 1 ' ' quence or unexplained, evidence of malice or a felonious intent- departure. Therefore, where a trader fled beyond seas for the murder of his wife, whereby his creditors were delayed, he was held to have committed an act of bankruptcy. (3) So, where a married man ran away with a young lady, and took her abroad, where he continued to live with her, and his creditors were thereby delayed in the recovery of their (1 ) 2 Bl. Com. 477. Per Gibbs C. J. Holroyd v. White- (2) Per Loi-d Ellenboroiigh, head, 2 Camp. 5.30. Raniibottom v. Leim, 1 Camp. 280. (3) Woodier^ case, Bull. N.P.59. 46 or THE ACT OF BANKRUPTCY. [Ch. 3. Deporting the Realm. When motive may be collected, &c. Leaving England for Ire- iand. Advertis- ing his in- tention to go abroad. debts, — this was also held an act of bankruptcy. (1) In both these cases it will be observed, that the parties went abroad under circumstances, that rendered it highly jn'o- bable they had conceived the intention not to return to this country; one having committed murder, and the other being also amenable to the laws of his country for a dif- ferent offence. When the departing the Realm is of itself equivocal as to the intention, the motive may be collected from the sub- sequent letters written by the part}' during xhe early part of his residence abroad ; though the declarations of a bankrupt, respecting his motive for doing a particular act, are not receivable in evidence, when made long subsequent to the act in question. (2) If a trader, whose house of business is in Ireland, comes to England to settle his affairs, and upon being informed that one of his creditors intends to arrest him, quits England and goes over to Ireland, in order to avoid such arrest, — this has been held to be such a departing of the realm, as is sufficient to constitute an act of bankruptcy. (3) But if he leaves England with an honesi; intention, com- patible with trade, and bojid Jide intending to return, he does not, then, by his departure, commit an act of bank- ruptcy. (4) So where a trader quitted his residence at Liverpool, and went to Rio Janeiro, having first circulated an advertisement, that he was going out there in a parti- cular ship, with an intention of settling there, and would take charge of any shipments by such vessel, — he was held not to have committed an act of bankruptcy ; for he would never have circulated such an advertisement, if his inten- tion had been to conceal himself from his creditors. (5) So a trader, having business both in England and in Spain, has (1) Raikcs y. Porcmi, 1 C. B. L. (.j) Williams v. Nunn, 1 Taunt. 75.; and see Vernon v. Hankey, 270. 1 C. B. L. 98. (4) Windham v. Patersnn, 1 Star, (2) Raivson v. iJa/g/«, 2 Bing. 99.; 144. and see Ex parte Hague, 1 l^'ose, (5) Ex parte Osborne, 1 Rose, 151. Windham v. Pater son, \^t?^r. 587.; and see Hopkins v. Ellis, H4. iSalk. MO. Sect. 2.] OF THE ACT OF BANKRUPTCY. 47 a right to go to the latter country to look after his con- When fear cerns: and thouirh his creditors in tl)is case may be therebv ^''"'^st . J w co-oper- delayed, yet his departure cannot be construed to be an act ates. of bankruptcy. But if he is actuated also by the fear of arrest, — though such fear concurs with the justifiable mo- tive, namely, that of looking after his business, — then the departure will be an act of bankruptcy. (1) 2. Bemg out of the Realm and remaining abroad. This is BeinT out a new and distinct act of bankruptcy, created by the pre- "^ ^'^'^ 1-11 Trti *i I 1 .• 1 Realm, Sec. sent statute, and will save son)e dim^ulty that has Frequently occurred, as to the proof of intention in departing the Realm; for there will be no need now, as there was in former cases, when the party remained some time abroad, to infer an intention for his departure, which perhaps never minified with the original motive ; nor to construe a con- tinned into a pre-determined absence. (2) The intention Intenti ion. of the party to dclaij his creditors, however, must be col- ''°^^ ^'^ ^'^ CollGCtGcl. lected, in proving this act of bankruptcy, from the same cir- cumstances, as are applicable to the j)roof of the preceding one. Thus, if a trader, after departing the Realm in the first instance for a proper object, protracts his residence abroad for an unreasonable length of time, assigning no cause for his absence, and leaving 710 funds, nor making any ai*- rangements in this country for the payment of his debts; — it will not be a very hard construction of his conduct, to infer, that he " remains abroad with intent to delay his creditors." (1) Warner v. Barber, 1 Hult, note g.) question the correctness Vi5. of this decision, on the ground, (2) See Ex parte Mutrie, 5Ves. that an act of bankruptcy' could 576. Windham v. Patcrson, 1 Star, not then be committed abroad. 144. 4 Camp. 286. Ex parte 0^- But it is submitted, that the ais^Hce borne, 1 Rose, 5S7. 1 V. & B. 177. from England, and not any po- Ex parte Giihton, lAtk. 193. In sitive act committed abroad, was Windham\.Paterson,4C^m\).2S6., the gist of the act of bankruptcy Lord Ellenborough held, that a in that case; and that it might with continued residence abroad was an equal reason be contendedj that act of bankruptcy under the words departing the realm was an act of " otherwise absenting himself," in bankruptcy committed abroad; for the 1 Jac. I. c. 15. ; but the learned the act of departure is not strictly reporter in a note to the case, as consummated, until the party ac- well as Mr. Eden, in his late trea- tually reaches some point out'oi tise on the Bankrupt Law (p. 16. British jurisdiction. 48 OF THE ACT OF BANKRUPTCY. [Ch. 3. Departing from dwelling- house. Departure must be voluntary. Where delay the necessary conse- quence of departure. If inten- tion clear, no actual delay ne- cessary. 3. Departing from his Dwelling-house. In this case, as in that of (leparting the reahn, the intention must be to de- feat or delay his creditors. This intention may also, as in that, be manifest, or collected from circumstances, or it may be presumed from the necessary consequences resulting from the departure. The departure must be voluntary^ and not conijnilsory ; for, where a man is arrested, and thereby obliged to leave his house, such a departure is not an act of bankruptcy. ( 1 ) But when a trader, from distress of mind, or any other motive, quits his dwelling-house without any intention to return, and without leaving di- rections how his business is to be carried on in his absence, and creditors are thereby in fact delayed, — he must in such case, as has been before observed, be taken to foresee and intend the necessary consequences of his own act, whatever the original motive may have been for his departure. (2) If it is quite clear that the intention is to avoid his cre- ditors, then it will be immaterial whether any creditor was delayed in his absence or not. This point, which was often mooted under the former bankrupt laws (3), had, nevertheless, been settled by several cases (4-) before the passing of the new statute ; but the words of this statute are also sulKciently declaratory, that the departure of itself, coupled with the intent, constitute a perfect act of bankruptcy. The fact of creditors being delayed may still be properly resorted to in evidence, for the purpose of ex- plaining an act, which might otherwise be equivocal ; but where the intention is manifest, no actual delay need be proved. And this observation applies, not only to this particular act of bankruptcy, but to all the others specified in the third section of the statute. (1) Phillips V. Sheriff of Essex, 1 C.B.L. 85, (2) Holroi/dv. Whitehead, 3 Camp. 530 (3) Barnard v. Vaughan, sT. R. i 49. (4) Robertson v. TAddell, 9 East, 487. Hammond v. Hides, 5 Esp. 139. Williams \. Niinn, 1 Taunt. 270. Wilson V. Norman, 1 Esp. 334. Hotroydw. Whitehead, supra. Ex ^tLViQ W^djovm, l4Ves,84. , eCt.S.J OF THE ACT OF BANKHUFTCY. ^ The distance that a man departs to, after leaving his dwel- Departure^ ling-house, or the period of time that he is absent from it, are •/•'^°'\ "'^ also perfectly immaterial, if the real motive is concealment from his creditors. His going to a distant place among ^^^^?^^^> strangers may be an act of bankruptcy, though he is visible absence, there; and the going only to the next house, may also be the *™™^ same, if he is not visible. (1) Thus where a man rode out of j^otives. town in order to avoid being arrested, and returned in the evening, and the next morning sent for the bailiff, and told him he went out in order to get the term of the plaintiff, — this was held to be such a departing from the dwelling- house, as was sufficient to constitute an act of bank- ruptcy. (2) So where a trader went to his neighbour's house, and told him he expected every moment to be ar- rested, and, while he remained there, was informed that a sheriff's officer was going towards his house, upon which he concealed himself in a back room, desiring his neighi- . bour to watch, and when told that the officer had gone past his house, and had left the street, immediately then returned home, — this temporary absence from his dwelling- bouse was held to be an act of bankruptcy (3); and indeed it would make no difference if his departure from his dwelling-house had proceeded from a groundless apprehen- sion of being arrested. (4) In such a case it is not neces- sary, in order to prove the act of bankruptcy, to show that any ivrit had in fact issued against the bankrupt. (5) And if a trader, on being applied to for payment by a creditor, leaves his house under pretence of getting money, but goes to a billiard-table, and remains there the whole even- ing, — this has also been held an act of bankruptcy. (6) In all these cases we have seen, that the departure from What is the dwelling-house has originated from the fear of meeting ^f ijank-'^ (1) PerBullerJ. Aldridge \ . Ire- (4) Ex parte Bamford, 15Ves. land, cit, 1 Taunt. 273. 449. (2) Maylin v. Eyhe, 2 Str. 809. (5) Wilson \. Norman, 1 Esp. (5) Chenowelh v. Haley, 1 M. & 334. S.676.;andsee Bayleys.Schofield, (6) Bxgg v. /S^pooM^r, 2 Esp. 6,51. iM. &S. 338. ruptcy. OF THE ACT OF BANKRUPTCY. [Ch.3. Departure from dwcl- ling-hoiise. When motive laudable, delay im- material. Leaving home to recover a debt, or to ar- ranj^e with a creditor, leaving word where he is gone; or for any other law- ful pur- - pose, leav- ing word, &c. a creditor, the apprehension of being arrested, or from some desire of concealment, in consequence of the trader's embarrassments. But where it is clearly not his intent in going from home to defraud or delay his creditors, but his motive is laudable, — as if he departs on a journey for the purpose of getting in money owing to him, — he does not thereby commit an act of bankruptcy, though his absence is actually productive of delay to some of his creditors. Thus where a trader at Manchester^ receiving intelligence that a debtor of his in .London was in a failing condition, left his house, and went to London, for the purpose of arranging his affairs with his debtor, and getting security for his demand, — he was held not to have committed an act of bankruptcy, — though he stayed away ten days, and several of his cre- ditors in his absence called at his house at Manchester for payment of their debts, and went away unsatisfied, from no provision being made for payment of them ; for it was con- sidered, that his intention in going from home was not to delay his creditors, but for the purpose of obtaining money to prevent their being delayed. (1) So where a female trader left her house at Bath, for the purpose of persuading one of her creditors in London to withdraw an execution against her stock, and previously told her servants "dohere she tvas going, as well as the object of her journey, — and also left with them her direction, for any person who might inquire for her; — this again was held to be not an act of bankruptcy; as there appeared to be no wish to keep out of the way of her creditors, who had only to call at her house to know where she was. (2) And the leaving home bondjide for exercise, or enter- tainment, or any other lawful purpose, is not an act of bankruptcy, notwithstanding a creditor may in the interim (1) Foiuler v. Padget, 7 T. R. 1 Taunt. 273.; but see JDeJle v. 509. Desanges, 8 Taunt. 671. 3 Moore, (2) Aldridge v. Ireland, cit. 7. post. Sect. 2.] OF THE ACT OF BANKRUPTCY. S.% call in vain for his debt. ( 1 ) Thus, where a man goes Departure from home, leaving word with his clerk luhat time the same /'■°"*/"'^^- 1 hng-house. day he shall return home, and actually does return at the appointed time, — this is not an act of bankruptcy, though a creditor called for money in his absence, and his clerk, by his directions, told the creditor that he would not let him have it, and that he should go out of the way till dinner- time ; for a man, who intends to delay a creditor, does not usually name the hour when he is on the same day to be met with at home. (2) So, if he absents himself from his Leaving house in order to avoid harsh language from some of his ^^^ ^U creditors, whom he had appointed to come to his counting tercation. house, and examine his books ; for the motive was not to delay the creditors, but to avoid altercation with them. (3) It is laid down in some of the books (4), that there is a Abscond- difference between absconding to avoid a deht, and ab- a"oida sconding to avoid a duty only ; and that a departure, occa- duty, sioned by the fears of being attached for the non-perform- ance of an aiijard, or to avoid an arrest upon a writ of excommunicato capiendo, is not an act of bankruptcy. But this position, it is apprehended, must now receive some qualification ; for if the absence is iiidefinite, and no pro- vision is made for payment of debts, nor any directions left for creditors 'where he may be found by them, such a departure would now be held to fall within that class of cases, which establish that a man is taken to intend, what is the necessary consequence of his own acts. (5) 4. Otheruoise Absenting himself. Where a man has a Otherwise counting- house distinct from his dwelling-house, and leaves ^f^^''(^'«§ 1 n • 1 • 7- I 1 1 hmself. the former without the animus revertendi ; though he may remain afterwards two or three days at his dwelling-house, he begins to absent himself from the time he leaves his counting-house ; and the act of bankruptcy is complete by (1) Per Lord Ellenborough, (3) Ibid. 9 East, 492. Robertson v. Liddell. (4) Lingood v. Fade, 1 Atk. 196. (2) Vincent v. Prater, 4 Taunt. 2 Com. Dig. 5. 603. (5) Ante, page 45. E 2 ^ OF THE ACT OF BANKHUPTCY. [Ch. 3. Otherwise absentins. Where he has no settled home. Retiring behind the scenes of a theatre. Conceal- ing hinaself ia the house of a friend. Not where absence concerted. such departure from it. (1) Indeed, it may frequently happen, that a trader has neither dwelling-house, nor counting-house, — in which case his withdrawing himself from the usual place where he is to be found, or where he transacts his business, will be sufficient to constitute an act of bankruptcy, within the meaning of the words " other- ivise absenting himself," — which are not confined to any particular place. Therefore, if a man, who has no settled home, takes up a temporary abode at a public-house in the town to which his business carries him, and leaves it for fear of his creditors, — this will be considered an act of bankruptcy. (2) So, if a man, who has no known place of abode, is in the habit of attending the Royal Exchange to transact his business, and leaves it on the approach of his creditors, desii'ing a friend to say he is not there ; or breaks an appointment he has made with a creditor to meet him there to pay his debt — either of these cases will be an act of bankruptcy. (3) So also, where the proprietor of a theatre retired behind the scenes to avoid a sheriff's officer, giving orders at the same time to be denied to him, — this was held to be such an absenting himself, as would come within the meaning of the present statute. (4) And if a man, after being arrested for debt, escapes to the house of another person, and is there denied to the officer who pur- sues him, — this will also be an act of bankruptcy. (5) But where a trader, being informed by the attorney of the pe- titioning creditor, that he had delivered a warrant to a sheriff's officer to arrest him, and the attorney advised him to repair to his office to avoid the publicity of being arrested in the street, which he did, and remained there a con- siderable time, — this was holden not an act of bankruptcy ; (1) Judine v. Da Cossen, 1 N. R. 234. There is a case of Yoiing V. Wright, 6 Taunt. 540., usually referred to upon this head ; which, however, seems to establish no satisfactory position. (2) Holroydv. Giuynne, 2 Taunt. 116. (.3) Gimmingham v. Laing, 2 Marsh. 236. 6 Taunt. 552. (4) Ibid, (5) Bat/ley v. Schofield, 1 M. & S.358. Sect. 2.] OF THE ACT OF BANKRUPTCY. 53 though if the recommendation had not been by the attorney Keeping of the petitioning creditor, the case would perhaps have "^^' borne a different complexion. (1) A mere breacli of en- gagement also, to meet a creditor at a given place is not, in itself evidence of an act of bankruptcy, without proof that the absence was with a view to delay the creditor. (!2) Where two partners left their shop, and told their shop- Leaving man that they were goinff out to endeavour to get some ^^^P' ^"^ desiring a bills discounted, and directed him to say that they were servant to not in the way, or to make some excuse for them in case a "'^ke GXCUSG creditor should call; and a jury found that they absented themselves with an intent to delay their creditor, the Court of Common Pleas held they were warranted in such con- clusion. (3) 5. Beginning to Keep House. This act of bankruptcy is As to ne- generally made out, by proving the party to have been de- cessity of nied by his own orders to a creditor, who calls for payment of his debt, the party himself being at home at the time. The mere denial, however, is not of itself the act of bank- ruptcy; h\xt o\\\y prima facie evidence of the party keeping his house, with intent to delay his creditors ; and this may be proved in many other ways, besides being denied to a creditor ; though it seems to have been for some time held, that an actual denial was indispensable in proof to establish this act of bankruptcy. (4) But as it is the intent to delay, and not the actual delay, which must accompany the begin- ning to keep house, — there is no obligation to prove that the intention was effected, if there are circumstances enough to show, what the intention really was. Therefore the intention of keeping house being clearly proved by other evidence, there is no necessity to superadd the proof of denial to a creditor ; a species of evidence, indeed, which (1) MUls\. Elton, 3 W\. 142. (4) Garratt v. Mode, 5T.R. (2) Tucker v. Jones, 2 Bing. 2. 575. Hawkes V. Saunders, C. B. L. (5) Deffle v. Desanges, 8 Taunt. 74. 67 1 . Coppery. Desanges, 3 Moore^ 4. E 3 54- OF THE ACT OF BANKRUPTCY. [Ch. 3. Keeping house. Cases of Denial. Must be by pre- vious di- rections, and to a creditor, whose debt is due. need never be resorted to, except for the purpose of ex- plaining conduct that might otherwise be deemed equivocal. For instance, — if a trader gives general orders to be denied, then the fact of a creditor calling and being denied will be important evidence, not only of the beginning to keep house, but also to show what the intention of the party was in jrivino; such orders. Or, if he direct his servant to deny him to some individual by name, — then it will be essential to prove that that individual was a creditor; and if there is no other evidence of keeping house, then that such per- son actually called and was denied. Thus the necessity of provinoe v. Anderson, 1 Star. 262. Shaw, 1 Mad. 598. 1 G. & J. 84. {2) Tappendcn\. Burgess, 4Ezst, Ex parte Kiiner, Buck. 104. Ex '230. Jackson y. Jnvin, nCoyf p. 49. F 3 n OF THE ACT OF BANKRUPTCY. [Ch. 3. Fraudu- lent con- vet/ancc Condi- tional as- signment. Where one part- ner omits to ex- ecute. Vv'^hen drawn up contrary to instruc- tion. Assign- ment made in India. creditor had concurred (1) ; and, in conformity with this decision, it was afterwards held, that where several partners by deed assigned all their partnership effects, &c. to trus- tees for the benefit of their creditors, and some of the se- parate creditors of one of the partners did not assent to it, the assignment, as to sucli partner, was an act of bank- ruptcy. (2) And a condition inserted in such a deed, that it shall be void if the parties think fit (3), or if a commis- sion of bankruptcy be taken out, or if all the creditors do not sign within a given period (4) — will not make it less an act of bankruptcy. Where such an assignment, however, purports to be made by several partners, and one of them never executes the deed — it is very doubtful, (unless the deed was expressly meant to be a several deed,) whether in this case, the assignment would be an act of bankruptcy, even against the partner who executes it; for he might not intend to give the deed any effect, unless the other partner also devoted his share of the partnership property for the purposes of the assignment — which he does not do, in fact, if he fails to execute the deed. (5) And an assign- ment of a trader's effects, which is not drawn according to the instructions given to his attorney to prepare it, cannot be set up as an act of bankruptcy ; for it is not his deed, when it is drawn up contrary to his intention. (6) An assignment, however, xnade by a trader, resident in India, of all his effects, in trust for creditors, in certain pro- portions agreed upon by all parties there, has been held to be not an act of bankruptcy — the transaction being perfectly fair at the time, and without any fraudulent intention. (7) (1) Kettle V. Hammo7id, 1 C. B. L. 89.; and see Harman v. Fisher^ Per Lord Mansfield, Cowp. 125. (2) Eckhardt v. Wilson, 8 T. R. 140. (3) Tappendenv. Burgess f 4 East, 230. (4) Dulton V. Morrison, 1 Rose, 213. 17Ves. I9f). (5) Ibid, 215. Per Lord Kldon. (6) Ex parte Norris, 1 G. & J. 233. (7) Inglis V. Grant, 5 T. R. 530. This seems somewhat irreconcile- able with many of the former de- cisions — 'but there was another ground for the decision in this case, which would not now apply, viz. that the trader, being in India at the time of the execution of the Sect. 2,] OF THE ACT OF BANKIIUPTCY. yi Secondly — Where a trader assigns, or conveys, only Fraudw- part of his property. '^^"^ ^''"- Some few of the older cases seem rather opposed to the doctrine, that an assignment of only part of a trader's ■'^^^'S"- effects amounted to an act of bankruptcy ( 1 ) ; but they part of have been completely overruled by subsequent deci- ^"^'^'®' sions, all of which lay down on this subject one uniform rule; namely, that a conveyance, either of all, or part, of an insolvent's property in favor of fewer than all the creditors, is an act of bankruptcy ; because it is the means whereby creditors may he defeated or delayed. But an assignment of part of the effects is only considered only frau- fraudulent, when made in contemplation of bankruptcy ,• for " j "*'• a solvent trader has a right to make over any portion of contein- his property that he chooses, either in satisfaction of a P^^*^^°" o^ debt, or for any other purpose. (2) It is only, therefore, ruptcy. when his circumstances are such as must render him un- able to pay all his creditors their demands in full, that an assignment oipart of his effects to any one creditor can be considered, with intent to give that creditor an undue preference over the rest ; and as this is contrary to the whole spirit and meaning of the Bankrupt law, it is now held, not only void as against the other creditors, but also an act of bankruptcy in itself. Therefore, where a trader, being in insolvent circum- Instances stances, borrowed 120/. of his brother, and in consideration ^"f^^ of this loan assigned to him one-third part of all his effects, deed held and absconded two days after the assignment — though the ^'"^ii'lu^ent. brother took immediate possession of the goods, and exer- cised clear acts of ownership by exposing them to sale, and carrying on the trade, and had not the least knowledge of the insolvency — the Court, notwithstanding they acknow- assignment, was not in a situation of the new statute, be construed an in which the Bankrupt laws of this act of bankruptcy. country could have any operation (l) Small v. (Dudley, 2 P. Wni. either upon him or his property. A 427. Hooper v. Smith, iBl. 441. deed, though executed abroad, may Cock v. Goodfellow, 10 Mod. 480. now, however, under the 3d section (2) Jacob \. Shepherd, 1 Burr. 178. F 4 72. OF THE ACT OF BANKRUPTCY. [Ch. JJ. Frawlu- ledged it to be a hard case upon the brother, decided that en con- ^j^^ deed, by reason of the preference, was fraudulent and void ; and added, that if they were to let such a deed stand, they should tear up the whole Bankrupt laws by the roots. (1) So where a trader, being pressed by a creditor for payment, conveyed estates in trust to sell and pay the ■* creditor, with a further trust to pay debts to certain rela- tives — this was considered an undue ^preference of those re- latives, and, as such, an act of bankruptcy. (2) So where a man, after agreeing to have a commission of bankruptcy sued out against him, and who could only pay 85. in the pound, assigned a lease to three of his creditors, to secure the payment of money due to them, and then in trust for him- self — the assignment was held fraudulent and an act of bankruptcy, because done in immediate contemplation of becoming a bankrupt. (3) So, also, where a banker, being insolvent, conveyed part of his real and personal estate to his son, who had in fact entered into engagements for, and advanced money to his father, in amount more than the value of the estates, and who took possession of the pro- perty immediately on the execution of the deed — Lord Mansfield laid it down as clear law, that if in contem- plation of bankruptcy a man conveyed to the fairest cre- ditor that ever existed — though the deed would not be fraudulent as between them — yet as it tended to defeat the Bankrupt law, by giving a jpreference to one creditor, it was a fraud upon the rest, and, consequently, an act of bankruptcy. (4) And even where a trader continued to carry on his trade for three years after the execution of a conveyance of "part of his property in favour of particular creditors, and the conveyance itself remained in the pos- session of the bankrupt — it was held to be a question for a jury to consider, whether such a conveyance was not fraudu- (1) Z/in/onv. 5a;-//ff, 3 Wils. 47.; (3) Devon y. Watts, Doug. 85. and see Cowp. 124. (4) Round v. Hope Byde, 1 C.B. (2) Morgan V. Horseman, L. 94. Wkittvell v. Thompson^ 3 Taunt. £41. lE5p.68. Sect. 2.] OF THE ACT OF BANKRUPTCY. 73 lent, as being voluntarily made, and in order to give an iin- Fraudu- duc ■preference to the prejudice of the general creditors. (1) l^^nt con- It was discussed in one case (2), whether a settlement made by a trader previous to and in contemplation of marriage, Qu^^^e, as r J 1 • J- II- to mar- was rraudulent agamst creditors ; but there is no express ria-^e set- determination on the subject ; though, if the wife was tlement. clearly proved to be a party to any intent to defeat or delay the creditors — such a settlement would then of course be considered fraudulent as to the wife, and an act of bank- ruptcy on the part of the husband. (3) But, though an assignment of any jpart of a trader's When as- effects will be fraudulent, if made in contemplation of ^'g"™^"^ bankruptcy, and with a view to prerer one creditor to an- fraudu- other, yet if made hond Jide for a just debt, and without ^^"*- contemplating that event — it will then neither be void, nor an act of bankruptcy. As where a merchant, several months before his bankruptcy, assigned specific goods in the hands of his factors to a particular creditor, in trust for himself and certain other creditors, and the trusts of the deed were immediately and openly carried into exe- cution — this assignment was held to be no act of bank- ruptcy. (4) So the assignment of several debts mentioned in a schedule annexed to the assignment, to indemnify the sureties of the assignor, was held good — he not becoming a bankrupt till a month afterwards, and not having his bank- ruptcy in contemplation at the time of the assignment. (5) And though, as we have seen, the remaining in possession of the property after the assignment \s^ prima facie ^ evidence of fraud (6) — yet, when such possession is given to the creditor as the nature of the case will admit, that will re- move all fraudulent imputation. For in many cases — as where goods are bulky, or in a place of distant deposit — (1) Pulling V. Tucker, 4 B. 8c k. (4J Jacob v. Shepherd, 1 Burr. 382. 478. (2) Campion v. Cotton, 17 Ves. (5) Unwin v. Oliver, 1 Burr. 481. 268. (6) And see post. " Reputed (3) Ex parte Rutherford, cit. Ownership." 17 Ves. 268. Ex parte Mayor, I Mont. Dig. uote A. / 74 OF THE ACT OF BANKRUPTCY. [Ch. 3. Fraudu- lent C071- veyance. there cannot be an actual transmutation from hand to hand ; and a delivery of a symbol of ownership will then be sufficient. Thus, where an engineer was employed by a Canal company to build locks and bridges, and purchased timber and other materials for that purpose (with money advanced him by the company) which were laid on the banks of the canal, and on the company advancing him more money to pay some of his debts, he executed a hill of sale to them of such timber and materials, and de- livered to them a copper halfpenny as a symbol of trans- fer — it was held that the hill of sale was not an act of bankruptcy, it being in reality intended for the benefit of his other creditors — as it was given by him in consideration of an advance of money made for the purpose of enabling him to pay them, and carry on his business. (1) So where a trader conveyed freehold property to trustees, for the purpose of raising money, in order that he might meet all demands upon him with greater facility — such a convey- ance was held not fraudulent, as there was no contemplation of bankruptcy at the time, and no 'preference or exclusion of any particular creditor ; and it was considered to be only disposing of an inconvenient property, the better to apply it to the pui'poses of his business, which would be for the benefit, and not to the prejudice, of his creditors. (2) And even where a trader was insolvent at the time of such a conveyance, it was held to be no act of bankruptcy, where no fraud was imputed, and there was no design to put the property in a train of distribution different from that of the Bankrupt law. (3) The Grant or Conveyance intended by the statute, is a grant or conveyance hy a trader of his own property — and Must be a convey- ance by a trader, not not of property conveyed by another person to, or in trust im. j-„„ 7„-.„ T'l r„..„ vvhere a trader is a party to a and expects to derive benefit from for him. Therefore, fraudulent assignment. (1) Mantonw. Moore, 7T.R.67. (2) Barney v. Damson, 1 B. & B. 408. 4 Moore, 126. Ibid. 322. (3) Barney v. Vynevy 1 B. & B. 482. Sect. 2.] OF THE ACT OF BANKRUPTCY. 75 it as assignee — though it is an act of bankruptcy in the as- Fmudu- sisrnor, and also void as to the assignee — vet it is not, in re- ''^"^ *"''- render or gard to the latter, an act of bankruptcy. As where A. and gift. B., being partners, and insolvent, — A. assigned certain property to B., in trust for the wife of B. (who was A.'s daughter) — it was held to be no act of bankruptcy by B., notwithstanding he was a party to the deed. (1) Where the Grant or Conveyance relied on as the act of Parol evi- bankruptcy, cannot be produced before the commissioners, "^"'^^* they may receive parol evidence of its contents (2); and if the party, in whose possession it is, refuses to produce it, they have now, by the 34th section of the new statute, au- thority to commit him for such refusal. (3) 12. Making, or causing to be made, any fraudulent Sur- Fraudu- render of any of his Copyhold lands or tenements. This is a *^"^ /«''- f.^ "-^ -^ render of new act or bankruptcy created by the present statute, and copyholds. very properly introduced into it, to remedy an inconve- nience in the construction of the former Bankrupt laws — under which it was held, that as no process of execution can issue to levy a debt upon a copyhold estate, a sur- render of copyhold property, therefore, however fraudulent, was not an act of bankruptcy — since it could not be said to defeat or delay creditors, who had no means at law of touching that description of property. (4) The same rules of construction as to the fraud of the transaction, and the intent, will of course apply to this, as to the two preceding acts of bankruptcy. 1 3. Making, or causing to he made, any fraudtdent Gift, Fraudu- Delivery, or Transfer of any of his Goods or Chattels. This lent gift or is also a new act of bankruptcy created by the statute, and ^°^^-^^^' removes a great inconsistency that formerly prevailed in the Bankrupt law. For, though a fraudulent gift or trans- fer hy deed was held an act of bankruptcy, it was decided, (U Whitmellv. Thompson, lEsp. (3) Ex parte Treacher, Buck. 11. 68. (4) Ex parte Cockshott, 5 Bro. (2) Ex parte CawkweU, 1 9 Ves. 502. 1 C. B. L. 1 62. 234. 16 OF THE ACT OF BANKRUPTCY. [Ch. 3. Fraudu- lent gift. that a sale, or any transfer of goods, not hy deed — however fraudulent the scheme might be in preference of one cre- ditor to another, and as such void — was nevertheless not an act of bankruptcy. ( 1 ) The rules of construction re- ferred to under the last head, will likewise equally apply to this. The Gift, Delivery, or Transfer intended by the statute, is one that is either fraudulent at common latso — or fraudulent as being made in contemplation of bankruptcy ; and, as every transfer of this latter description amounts to a fraudulent preference, the reader is referred to a subsequent part of this work for the law on that subject, where all the de- cisions are collected. (2) Any assignment, or transfer of property, also, by an insolvent trader to any of his children (except upon their marriage), or to any other person, within the terms of the seventy-third section of the new statute, will fall, it is apprehended, under this act of bankruptcy. Lying in prison. The above are all the acts of Bankruptcy, where the intent of the party is a main and principal ingredient in the com- position of the act ; the remainder are perfectly independ- ent of any intention of the trader, being deemed of them- selves sufficiently indicative of his insolvency, so as to render him a fit subject for a commission of bankrupt. 1 4. Having been arrested, or committed to prison for debt, or on any attachment for non-payment of money, and there- upon, or upon any other arrest or commitment for debt or non-payment of money, or upon any detention for debt, lying in prison for twejity-one days ; or having been arrested or committed to prison for any other cause, and afterwards lying in prison for twenty-one days, after any detainer for debt lodged against him and not discharged. The period of lying in prison, it will be observed, is (l) Martin v. Petviress, 4 Burr. iJ478. Doug. 87. (2) See post. " Assignment," part £. sect €. Sect. 2.] OP THE ACT OF BANKRUPTCY. 77 considerably shorter than that required by the former Bank- Lying in rupt law — which was first six(l), and afterwards reduced ^ ''"^' to two (2) months — and seems in all respects a very proper alteration. For a trader may reasonably be held insolvent, whose credit is so bad, that after being arrested for debt, he cannot, in the course of three weeks, either find money to settle the demand, or prevail upon some persons to be bail for him in the action ; and if, on the contrary, he is able to do so — then his neglect cannot be supposed to arise fvom any thing less than a fraudulent intention ; in either of which cases it is high time for the creditors to look to themselves, and compel a distribution of his effects. The arrest, in order to become the date from which the Arrest imprisonment is reckoned, must be in all respects a lawful /""^iT*^ arrest. An arrest, therefore, which in its inception is its incep- strictly unlawful, and which only becomes lawful by sub- *'°"' sequent relation, is not such an arrest as is required by the act. Thus, though an executor may before probate arrest a debtor to the estate, and is justified in so doing if he afterwards proves the will, and takes out letters of admini- stration (3) — yet, if the defendant on such an arrest should continue in prison the whole 21 days mentioned in the statute, this would not be held to be an act of Bankruptcy; for though the arrest becomes good as between the parties by the relation of the subsequent grant of probate, yet, being bad in law before such grant, it shall not be allowed to prejudice third persons, who are no parties to the suit. (4) And the Bankruptcy of such a defendant (even if he should remain in prison a sufficient time after probate to be made a bankrupt) will not be held to relate back to the first arrest, so as to defeat a subsequent payment made by him before probate to another creditor for a just debt. (5) The an-est must also be for a debt legally due and de- Must be for a pre- sent debt. (1) 1 Jac. 1. c. 15. (4) Duncomb v. Walter, 3 Lev. (2) 21 Jac. 1. c. 19. 57. 1 Ventr. 270. T. Raymd. 499. (3) Roll. Abr.917. Skin. 22. 87. (.5) 3 Lev. 57. 78 OF THE ACT OF BANKRUPTCY. [Ch. 5. Lying in prison. Not on an equitable contract. For pe- nalty due to the crown, sufficient. When bail put in, and render after- wards. manclable. Therefore an arrest on a bond before the day of ixiyment.) in order to oblige the debtor to find sureties according to the custom of London, is not a sufficient ar- rest within the meaning of the statute ; for no debt is due at the time of such an arrest. (1) Neither is an arrest in an action at law on a contract — the only remedy to enforce the performance of which is by a bill in equity — a suf- ficient arrest on which this act of Bankruptcy can be sup- ported (2) ; though any arrest or attachment for non-pay- ment of money is now, we perceive, made sufficient by the statute. And a detention In prison for a penalty due to the croiioti is, also, considered a lying in prison for debt within the meaning of the statute. (3) The statute, it will be observed, does not make the mere arrest an act of Bankruptcy, — for the most respectable and solvent merchant is liable to that inconvenience. But the presumption of insolvency arises, from his lying in prison 21 days without being able to get bail. And this pre- sumption will not be rebutted by mere formal bail being put in, for the purpose of changing from one custody to another. Therefore a man arrested in Kent, and brought up to London to be bailed, and immediately turned over to the King's Bench prison, was held a bankrupt from the time of the first arrest. (4) Where a defendant, however, put in good and sufficient bail to the action, and afterwards rendered himself to prison in discharge of his bail, it was a doubtful point under the old law, whether the bank- ruptcy would relate back to the time of the first arrest, or only to the time of the surrender (5) ; though Lord Mans- field thought, when bail was really put in, that the bank- ruptcy only related to the time of the surrender. (6) The former statute indeed, 2lJac. Lc. 19., expressly declared, (1) Green, 64, Billing, 96. Good, 26. iC.B.L. 94. (2) Ex parte Hylliard, 1 Atk. 147. 2 Ves. 487. (3) Cobb V, Symondx, 5 B. & A. .516. (4) Rose V. Green, 1 Burr. 457. (5) Cane v. Coleman, 1 Salk. 109. Smith V. Stracy, Ibid. 1 10. Hilly. Shish, 2 Show. 512. Bull. N. P. 38. Tiihe V. Webber, cit. 1 Burr. 438. (6) 1 Burr. 439. Sect. 2.] OF THE ACt^OV BANKRUPTCY. 79 that in the case of li/ing in prison for debt, the defendant Lying in should be " accounted a bankrupt from the time of his first P^'^°^- arrest." But the present statute says nothing about the time from 'which the imprisonment is to be computed (1) ; and therefore, it is' apprehended, that whether a man gives bail or not, he must now in all cases actually remain in prison for the space of 21 days, in order to be found a Bank- rupt. And it may perhaps be a question in the construction Doubtful of the present statute — as no notice whatever is taken of f\-^° ^^' ^ lation the time from isohich the bankruptcy shall be reckoned — back to whether, after the expiration of the 21 days, the Bankruptcy airest. will relate hack to the first day of imprisonment, or merely to the day when the 21 days expire. There is certainly no complete act of Bankruptcy until the full expiration of that time — though it may be said to be inchoate after the imprisonment has once begun, for then the party is in fact in the progressive course of committing an act of bankruptcy. Whether or not, however, this act of Bankruptcy, when Period of completed by the term of imprisonment, may be held now imprison- (as it was before (2) ), to relate back to the first day of ar- expire rest — it is perfectly clear, that no commission can be sued before out upon it till the twenty-one days completely expire ; s^'^^™*''' for no subsequent lying in prison will give effect to a previous commission. (3) But it would be no objection, but need that the requisite time had not expired when the docket "ot before QOCKGt was struck ; provided it was expired before the issuing of the commission. (4) Where a party, in prison at the suit of one plaintiff, is Where a detained at the suit of another, and after such detention, P^'^*^^, u . tained by lies the requisite time at the suit of the second, though another (l) This appears to be an ac- (2) Rose v. Green, supra. King cidental omission; for in mention- v. Leith, 2T. R. 141. ing the next act of bankruptcy, (5) Gordon v. Wilkinson, 8 T. R. viz. " escaping from prison," the 507. statute expressly declares, that the (4) Wydoivn^s case, I'iNes. Ex commission of that act of bank- parte DuJ'resne, 1 V. & B. 51. ruptcy shall be deemed to be " from 2 Rose, 333. the time of the arrest, commit- ment, or detention." creditor ; 80 OP THE ACT OF BANKRUPTCY. LCh.3. Lying in prisoju Need not be a pub- lic prison ; the impri- sonment must be conti- nuous. When committed upon a criminal charge. discharged as to the first — this is, of course, within the statute. (1) The word " prison" does not necessarily mean the county gaol, or any of the public prisons — but it will be sufficient if the defendant, after being arrested, continues in actual custody the whole of the 21 days. Therefore where a man was so ill in bed, that he could not be re- moved without endangering his life, and was allowed by the officer, who an*ested him, to remain for some time in his own house, and was afterwards carried to gaol, where he remained till the expiration of the full time from the date of his first arrest — this was held a sufficient lying in prison to constitute an act of bankruptcy. (2) And though the party has the benefit of the day rules of the prison — it is equally an act of bankruptcy; for the prin- ciple, on which this act of bankruptcy is founded, is, that it is evidence of insolvency. (3) If a defendant, however, on being arrested, is allowed to go at lat-ge, and then re- turns to custody — the act of bankruptcy has, in that case only reference to the latter event ; for the period of im- prisonment required by the statute must be contimious and unbroken. {^) There was some doubt entertained formerly, whether when a trader was committed to prison on a criminal charge, and was afterwards charged in an action for debt, his lying in prison the stated time after such detainer, con- stituted an act of bankruptcy — the original commitment being under a criminal sentence. (5) But it was afterwards determined, that such lying in prison amounted to an act of bankruptcy ; and this though he might be discharged from the criminal process without his knowledge. (6) The words, however, of the new statute now remove all doubt upon this point, as it is immaterial whether he is in the (1) Coppcndale v. Bridgen, 2 Burr. 814. (2) Stevens v. Jackson, 1 Marsh, 469. 6 Taunt. 106. (3) 1 Carringt. N. P. Rep. 401 . (4) Barnard v. Palmer, 1 Camp. 309. (5) Ex parte Bowes, 4Ves. 168. (6) Rex V. Page, 1 B. & B. 308. 3 Moore, 656. 7 Price, 616. Sect. 2.] OF THE ACT OF BANKRUPTCY. 81 first instance committed to prison for debt, or " for any Sreakino other cause." prison^ In the computation of the period of imprisonment, the How im- day of being committed to prison, or of the arrest — if the P"^°"" party thereupon goes to prison (1) — is to be reckoned the be com- first of the 21 days; and the time is not completed until P"'<^'^- the expiration of the whole of the last day. (2) 1 5. Escapmg out of Prison, or Custody, after having been arrested, committed (3), or detained (3) for debt. This act of bankruptcy is founded on the same principle as the last ; for no man would break prison, that was able and desirous to procure bail. The observations, therefore, under the last head of bankruptcy, as to the legality of the Arrest, apply in an equal degree to this ; unless the arrest, committal, or detainer, is strictly lawful in every respect, the subsequent escape will not be an act of bankruptcy. By the former statute (the 21 Jac. 1. c. 19.) the arrest As to the must have been for not less than the sum of 100/. ; but the for°which present statute comprehends every arrest for debt, what- arrest ever the amount of the debt may be for which the trader is ™^"^- arrested. The Escape intended by the statute is such an one, as Must not plainly evinces the intention of the debtor to run away, "" . ' •' _ "^ escape by and thereby to defeat his creditors; and it must be an es- implica- cape against the will of the officer in whose custody he is, '*°"' and not an escape by implication ; for this being considered a criminal act in the eye of the law, a man shall not be made a criminal, when he has no intention to commit a crime. Therefore, if a trader is arrested in Kent, and, being brought to town in custody of the sheriff's officer, is permitted by him to call at his attorney's house in the city, and from thence is immediately carried to the Judge's chambers, in obedience to a writ of habeas corpus ,- — this would not be such an escape as is contemplated by the {I) Saunderson V. Gregg, 3 Star. (2) Glassingion v. Rcnvlins, 72. .-) East, 407. (.") These words are new. 82 OF THE ACT OF BANKUUPTCy, [Cll. 3. Filing de- statute; for the defendant remains substantially in custody, \nsolvena! notwithstanding he is carried into another county in his ■ transit to the Judge's chambers. ( 1 ) 1 6. Filing a declaration in the office of the Secretary of Ba?ikrupts, signed hy himself^ and attested by an attorney or solicitor, that he is Insolvent, or unable to meet his engage- ments. (2) This is an entirely new act of bankruptcy created by the statute, and is intended, no doubt, for the relief of the honest, though unfortunate debtor ; who may now, when he finds himself insolvent, be encouraged to avail himself of the protection afforded by a commission, without having recourse, as formerly, to a concerted act of bankruptcy, — which has of late years been uniformly held a nullity. (3) For as Bankruptcy was formerly regarded, either in the light of criminal insolvency, or as a condition of necessity, no voluntary act of the trader, by which he constituted himself a bankrupt, was held admissible in law ; for in the one case he would be declaring himself a criminal; and in the other, as it would be a spontaneous contrivance of his own, and not a condition of necessity, — the Courts have hitherto looked upon such voluntary act as nothing less than a fraud. Experience, however, has proved the prac- tical inconvenience of this doctrine, if it has not exposed its fallacy ; and the present statute, therefore, provides for the voluntary declaration of a trader's insolvency, made bona ^fide, for the purpose of surrendering himself and his pro- jierty to the regulations of the Bankrupt laws, which pro- vide equally for his own protection, and for a just distri- bution of his effects amonsj his creditors. Requisites Two things are required to render this act of bankruptcy ^fl'^'V^' complete. First, the Secretary of Bankrupts, or his deputy, ruptcy. must sign a memorandum, that the declaration of Insol- vency has been duly filed, as an authority to insert an ad- (1) liosc\. Green, \Vtv\xx.A'^0. (b) Roberts v. Teasdale, Pcake, (2) Section G. 27. Ex parte Goiuthiuaite, 1 Rose, (3) Uooj^er v. Smith, 1 Bl. 441. 87. Ex parte Binvier, 1 Mad. 250., Eyre v. Birbeck, 2 T. K. r)95, note &c'. commis- sion must Sect. 2.] OF THE ACT OF BANKRUPTCY. BS vertisement of it in the Gazette: 2dly. The advertisement Filing de- must be inserted in the Gazette ivithin eight days after j^(jo^J^°" ""^ filing the declaration ; — after which proceedings, the declar- ^ ation will be considered an act of bankruptcy, committed at the time when the declaration was filed. No commission can be supported upon this act of bank- When ruptcy, unless it be sued out within two calendar months after the insertion of the advertisement in the Gazette ; be sued neither can any docket in a London commission be struck, °" ' . . . . when before the expiration of four days after the insertion of the docket advertisement, — nor before eight days in a Country commis- '^"^t be struck sion. And the Gazette containing the advertisement is to be evidence of the declaration having been filed, in all pro- ceedings before the commissioners. It is also expressly declared by the 7th section of the Not in- statute, that no commission founded on this act of bank- beinffc'on. ruptcy shall be deemed invalid, by reason of the declaration certed. having been concerted^ or agreed upon, between the bank- rupt and any creditor, or other person. 1 7. Any trader^ after a docket struck against him, either Fraudu- jpaying money, or giving or delivering any satisfaction or pQgHiQ„ ' security for his debt or any part thereof to the person striking the docket against him, isoherehij such persoii may receive more in the pound in respect of his debt, than the other creditors. This act of bankruptcy was first created by the 5 Geo. 2. Difference c. 30. s. 24). ; but it was there confined to the payment of ^^e^^ew money, &c., after the issuing of the commission, and did not and for- embrace the earlier period included in the present statute, "^^' viz. after striking the docket — upon which latter event the mischief intended to be prevented was generally conse- quential ; for by striking a docket, the crafty creditor could gain some days to himself, the more easily to traffic with the bankrupt, to the prejudice of the other creditors. (1) The act of bankruptcy was also not complete under the former statute, unless the creditor had actually and pri- (1) Ex parte Gedge, .T Ves. SSO. G 2 84 OF THK ACT OF BANKRUPTCY. [C'h. y. Frauihi- lent CO III - posiii()7i. Penalty on the pe- titioning creditor. Filing a petition to take the benefit of the insol- vent act. VATEi.Y received, more in the pound than the other creditors. In the present statute the word " privately'^ is omitted ; and the prohabilUij, or even the jjossibilitij, of the petitioning creditor receiving, under such compact with the bankrupt, more in the pound than the other creditors, will be enough now, without any actual receipt of money, to estabUsh this act of bankruptcy. A commission issuing upon such a docket may, how- ever, be either proceeded in, or superseded, as the Lord Chancellor shall think fit ; in which latter case a new com- mission may issue, either upon this or any other act of. bankruptcy. The petitioning creditor, as a penalty for such compounding, forfeits his whole debt; and may also be compelled to repay or deliver up the money or security he has received, or the full value thereof, to such person as the corainissioners shall appoint, for the benefit of the creditors of the bankrupt. (1) 18. Filing a petition to take the benefit of the Insolvent Act. This act of bankruptcy is not specified among those enumerated by the present statute (2) ; but it is made one by the late insolvent act, 7 Geo. 4. c. 57. s. 13., and the last, it is now presumed, of those innumerable and contra- dictory laws, which have been permitted year after year to crowd the latter volumes of our statute book. (3) The requisites to constitute this act of bankruptcy are, first, that the person shall be in actual aistody at the time of filing the petition ; secondly, that such person shall be declared bankrupt before the time advertized in the Gazette, and appointed by the Insolvent Court, for hearing the matters of the petition, or within two calendar months from the filing of the same. It is also declared, that the commission issuing upon this act of bankruptcy shall, after such adjudication, within the above mentioned period, but (l) Ex parte Thompson, 1 Ves. 157. Ex partePflar^o?i. IsVes. 464. Ex parte Brown, Ibid. 475. Ex parte Brine, Buck. 19. 108. (2) It was, however, included among the acts of bankruptcy in the 5G. 4. c. 98. s. 5. {7i) Sec ante, p. 44., note. Sect. 2.] OF THE Acr of bankruptcy. 85 not before, have the effect of avoiding any conveyance and Members. assignment of the estate and effects of such person under °^nent^^^ the insolvent act. And the act of bankruptcy is to be accounted from the time of filing tlie petition. 19. V/ith respect to traders, having Privilege of Parlia- Traders mentf it is enacted by the 9th section of the new sta- ^p'^SPp' tute, that if any such person commit any of the acts of parlia' bankruptcy before enumerated, a commission of bankrupt '"'^"^' may issue against him, and be proceeded with in hke manner as against other bankrupts ; save only, that he is not liable to be arrested or imprisoned during the time of his privilege, except in cases by the act made felony. It is Proceed- also enacted by the 10th section of the statute, that if any ^"1, ^ •' 'J summons. creditor of such a trader, to the amount requisite to sup- port a commission, shall file an Affidavit (1) in any Court of record at Westminster that the debt is justly due to him, and that the debtor is such a trader, and shall sue out of the same court a summons, or an original bill and sum- mons, — then, if such trader shall not within one calendar month after personal service of such summons, either pay, secure, or compound for the debt to the satisfaction of the creditor, or enter into a bond in such sum, and with two such sufficient sureties, as any of the Judges of the Court out of which the summons is issued shall approve of, conditioned to pay such sum as shall be recovered in the action, toge- ther with the costs ; and also cause a proper appearance to be entered to such action ; — every such trader shall in that case be deemed to have committed an act of bankruptcy from the time of the service of such summons; and any creditor may sue out a commission against him, and proceed there- on as against other bankrupts. In the proof of this act of bankruptcy, it must appear What evi- that the summons was taken out after the affidavit of debt '^^."S^/''^" was filed. And as some of the circumstances cannot be this act of bank- ruptcy, (l) This provision was first in- other provisions were added by the troduced by the 4 G. 5. c. 55., and 45 G. .". c. 124. s, 1 G 3 u OF THE ACT OF BANKHUl'TCY. [Ch.3. Mevibers of parlia- ment. Creditors competent to a cer- tain ex- tent Proceed- ing under a decree or order. proved but through the medium of a creditor, the necessity of the case will justify a departure, in some measure, from the general rule, that a creditor cannot be admitted to prove the act of bankruptcy; but then his testimony ought only to be received as to facts, of which evidence cannot be obtained from other sources. (1 ) Therefore, though the cre- ditor may be permitted to prove that the debt has not been paid, secured, or compounded for to his satisfaction, — yet the circumstance of the bankrupt being a member of parliament, and a trader, nmst be derived from other witnesses. (2) It is provided also by the 11th section of the act, that if any decree, or order, shall have been pronounced in any cause depending in Equity, or any order made in any matter of Bankruptcy, or Lunacy, against any trader having privilege of parliament, ordering such trader to pay any sum of money — and he shall disobey, after the same has been duly served upon him, — the person entitled to receive such money may apply to the court, by which the same shall have been pronounced, to fix a peremptory day for the payment of such money ; and if, upon being personally served with such peremptory order eight days before the day appointed for the payment of the money, he shall neglect to pay the same, — he shall then be deemed to have committed an act of bankruptcy from the time of the service of the order; and every such creditor may also sue out a commission against him, and proceed as against other bankrupts. (l) See post, " Evidence." (2) Ex parte Harcourl, '2 Rose, 211. CHAP. IV. OF THE PETITIONING CREDITOR. 1 . Of the amount and nature of his Debt. 2. Of the time of the contracting and accruing of the Debt. 3. General duties and liabilities of the Petitioning Creditor. Section I. Of the amount and nature of the Debt. JjY section 15. of the new act, the petitioning creditor's ( 1 ) debt (if one creditor or one firm petition,) must amount (2) to 100/.; — if two creditors petition, the amount of both debts must be 150/. ; — if three or more, the amount must then be 200/. And though the debt be not actually payable Debt pay- at the time of the act of bankruptcy, yet if credit has been ^^^ *'* given to the bankrupt upon valuable consideration, it will be a good petitioning creditor's debt, whether he has any security in writing for it or not. (3) The debt must be a legal debt, and not an equitable Must be a one; therefore the assignee of a bond (a security which is ^S^ ^^ ' not assignable at law) cannot be a petitioning creditor. (4) And where there is only one petitioning creditor there (i) The statutes prior to the s. 22.}, a debt payable at a future 5 G. 2. c. 20. (with the exception of day, unless there was a ivritten the 5 Ann. c. 22. which soon ex- security for it, would not con- pired) did not require the commis- stitute agood petitioning creditor's sion to be issued upon the petition debt. Parsloiu v. Dearlove, 4 East, of a creditor. 438. Hoskins v. Duperoy, 9 East, (2) The 5Ann. c. 22. was the 498. Ex parte /F/i«7t», 3 Ves. & B. first statute that regulated the 1.50. Ex parte i^'i^rawrfa, Buck. 35. amount of the petitioning ere- Price v. Nixon, 5 Taunt. 538. ditor's debt. (4) Ex parte Hylliard, 2 Ves. 407. (5) Under the construction of 1 Atk. 14 7. ilfcrf/ico/^'s case, 2 Str. the former law (the 5G. 2. c.30. 899. Ex parte iff, lP.Wni.782. G 4 OF THE PETITIONING CllEUITOK. [Ch. 4-. Amount and nature of debt. and due to petitioning creditor in his own right. One of several assignees. Partners. must be a debt due to him scjjaratcli/, and for which he could maintain an action at law in his oimi right. There- fore 07ie of two joint obligees, or one of several jutrlners, is not by himself a good petitioning creditor against the obligor, or the joint debtor, without the ot/ier obligee, or partner, concurring in the petition. (1) But one of several assignees may sue out a commission in respect of a debt due to their bankrupt, without the other assignees joining in the petition, — for such it appears is the practice at the Bankrupt office ; and it was held in such a case to make no difference, that the assignee petitioning was also the solvent partner of the bankrupt. (2) And where one of three partners engaged with the acceptor of certain bills of exchange drawn by the partnership, to provide for the acceptances when due, — it was held that the partnership could not support a commission on the bills against the acceptor ; for as they could not maintain an action at law on them against him, (in consequence of the undertaking of one of the partners to provide for them,) they could not make them the subject of a debt as petitioning creditors. (3) But a joint debt, due from several partners, is a legal debt to support a separate commission by the joint creditor, against any one of the partners. (4) As to the reciprocal right of partners against each other in this respect, — one partner cannot sue out a commission against another, upon any debt arising out of a partner- ship transaction. But when the accounts have been liqui- dated, and the partnership determined, and the solvent partner has paid all the debts ; — in such a case Lord Eldon thought a commission might be supported. (5) And one partner may always support a commission against another, if the debt does not arise out of a regular partnership ( 1 ) Brickland alias Buckland v. Newsame, 1 Taunt. 479. 1 Camp. 474. (2) Ex parte Blakey, 1 G. & J. 197. (j) Richmond v. Heapy, 1 Star. 202= (4) Ex parte Crisp, 1 Atk. 134. Crispe v. Pcrritt, Wilkes, 467. Ex parte Caruthers. Ex parte Upton, tit. Ibid. Ex parte Ackerman, l-lVes. 604. Ex parte Deiudney, 15Ves.499. (5) Ex parte Noken, 2 Mont. 144. Sect. 1.] OF THE PETITIONING CREDITOR. 89 transaction (1 ) — that is — where each partner is interested Amount in both the •profit and the loss. Therefore in a case where "^(i"Z""^ A. deposited goods with B. for sale, on an agreement that the profits should be equally divided between them, but the loss, if any, was to be borne exclusively by A. — and B. afterwards effected a sale and received the money ; — this agreement was held not to render them such partners in the transaction, as to prevent A. from suing out a com- mission against B., on the balance due from him to A. (2) A creditor who receives part of his demand after notice Creditor, of an act of bankruptcy, which reduces his debt belo'w 100/., ^-''f'" ^?^ • 1 u f 1 1 £• • • • of bank- is not thereby precluded irom sumg out a commission on ruptcy, the whole debt; for such payment after notice of the act of ''eceiving , , . . T 1 • 1 11 1- part of his bankruptcy is invalid in law ; — and the creditor, moreover, debt ; by taking out the commission on the ground that the is::hole demand is unpaid, admits, of course, the invalidity of the payment. (3) And upon the same principle, where a ere- or execut- ditor, who was ignorant that an act of bankruptcy had been ^"^^j^- ^^^' j9rmoe^i-/z/ committed by his debtor, executed a composition deed; deed (which, being after the act of bankruptcy, was there- fore invalid) for the amount of his debt, — though he afterwards received a dividend under it — yet as the whole transaction was invalid, it was held that he might never- theless become a good petitioning creditor in respect of the original debt. (4) So where a creditor by simple or taking contract took a bond for his debt after the act of bank- ^^ond; ruptcy, it was held not to extinguish the original debt, so as to prevent the creditor from suing out a com- or bill on . mission upon it. (5) So also, where a creditor took a bill ^^h^'i^i of exchange for part of his debt, drawn by the debtor no effects; upon an acceptor, who had not at that time, nor previous to the bill becoming due, any effects of the drawer in his hands, — this was held not to prevent the creditor from suing (1) Windham v . Paterson, 1 Star. (4) Doe v. Anderson, 5 M. & S. 144. 161. (2) Mars/on v. Barber, 1 Gow. (5) Ambrose v. Clendon, 2 Str. 17. 1042. Cas. temp. Hard. 267. In (.3) Mann v. Shepherd, 6T. R. re Bri/ant, 1 Rose, 28 J. 79. Ex parte Miller, Buck. 28.3. m OF THF, PETITIONING CKEDITOK. [Ch. 4. Aviotint and nature of debt. or a note on a wrong stamp. Creditor by notes bought in. Debt com- posed partly of interest. Banker's check. Debt must not de- pend on a contin- gency. out a commission upon the whole debt, notwithstanding he neglected to give notice to the drawer of the bill being dis- honoured. (1) A proinissoty note, also, given on a ivrong stamp, for a pre-existing debt, does not destroy the debt ; and a commission may be supported in such case on the original debt ; for the note in this case was not the foundation of the debt, nor necessary to be had recourse to in the proof of it, if it could be established by other evidence. (2) A creditor by notes bought in at 105. in the pound, it has been determined, is a creditor for the full sum, and may take out a commission as a creditor to that amount. (3) A debt composed partly of the amount of a bill of ex- change, and partly of interest calculated thereon, is not a good petitioning creditor's debt, unless such interest be ex- pressed in the body of the bill ,- for interest, when it is not spe- cified in the contract, forms no part of the debt at law, but is only given as damages for the detention of the debt. (4) And where the petitioning creditor had, upon an applica- tion for a loan from a bankrupt, delivered to him a check on his bankers for 100/., — which check had got back again to the hands of the petitioning creditor, as if satisfied, but the petitioning creditor was unable to give positive proof that the check was actually paid, — the check itself was held not suf- ficient evidence of a petitioning creditor's debt. (5) The debt must also be a present existing debt, and not one depending on a contingency. A promissory note, therefore, given to a trustee under a marriage settlement, though it was in form a present debt, and payable on de- mand, yet as it was in fact only a security for a contin- gent debt under the settlement, which would not be pay- able unless the wife died before her husband — was held not a sufficient debt to support a commission against the maker of (1) Bickerdilce v. Bolhnan, 1 T. R. 405. (2) Ex parte Geddes, 1 G. & J. 414., where it is said that the same rule holds with respect to a se- questration in Scotland; and see Brown v. Walls, 1 Taunt. 555. (.>) Ex parteLfc, I P. Wnis. 782. (4) In re Burgess, 8 Taunt. 660. 'J Moore, 745. Ex parte Green- way. Buck. 412. Cameron v. Smith, 2 B. & A. 505. Ex parte Marlow, 1 Atk. 150. (5) Bleasby v. Crossley, 2 Car- ring. & P. 215. Sect. 1.] OF THE PETITIONING CREDITOR. 9f the note. ( 1 ) But it seems that a 'warrant of attorney, though Amount appearing by the defeazance to be given really as a security "fj^^t"'^^ against the running acceptances of the conusor, is a debitum in prcBsenti sufficient to support a commission. (2) Warrant A debt on account, though not liquidated, has been ney. held sufficient, if the creditor can swear to a balance Unliqui- amounting to the requisite sum (3) ; but in a later case, count. where the accounts were very intricate, this was considered an objection. (4) A debt upon an attorney's hill, though it has not been Attorney's signed and delivered pursuant to the statute (5), is sufficient ' to support a commission, though not an action ; but in such a case the bill will be afterwards referred to the Master to be taxed (6) ; and this may be done, (if the bankrupt had a right to have it taxed at the time of the bankruptcy,) either upon the application of the bankrupt himself, or of any of the creditors. (7) And where a solicitor, pending an order Suing out for the taxation of his bill, and for stayins: all proceedinss ^5""™'**" , , ° sion, pend- at law in the mean-time, sued out a commission of bank- ing an rupt upon it, it was held neither to amount to a contempt, °^'^^^. '°'' , rt, • r T, .. taxation. nor to be a sutncient cause tor supersedmg the commission ; as the order extended only to bringing actions, and the common and ordinary proceedings. (8) If one tradesman becomes security for another, the ere- Surety. ditor may take out a commission against the surety. (9) So a sum awarded by an arbitrator will support a com- Sum mission against the person who is awarded to pay it, not- '^^^ ^ withstanding a bill is filed to set aside the award ; for the bitrator, arbitration bond is a debt at law, and binds the parties until the award is set aside for any defect in it. (10) It seems that an uncertificated bankrupt — as he can Uncer- acquire property, and hold it against all the world except u t! his assignees — may also be a petitioning creditor, provided rupt. (1) Ex parte Page, 1 G.&J. 100. (7) Ex parte Pridcan-x, 1 G. & (2) Miles V. Rawlins, 4Esp. 194. J. 28. (5) Flower V.Herbert, 2 Yes.526. (S) Moseley's Rep. 27. I C. B. (4) Ex parte Boives, 4 Ves. 168. L. 17. (5) 2 G. 2. c. 25. s. 22. (9) Haylor v. Hall, Palm. 325. (6) Ex parte Steele, 16 Ves. 166. Dexhani's case, Stone, 183. Ex parte HoiveU, i Rose, .512. ( i o) Ex parte Lingood, 1 Atk. 24 1 . 92 OF THE PETITIONING CREDITOR. [Ch. 4. Amount and nature of debt. Executor of a bank- rupt. Factor. Creditor residing in an enemy's country ; trading under a licence ; where the residence involun- tary. Debt from a person discharged under the insolvent act. his assignees make no claim to tlie debt upon which he sues out a commission. (1) But an executor of a bankrupt cannot sue out a commission upon a debt due to his tes- tator before his bankruptcy. (2) A factor who sells goods in his own name, though with- out a del credere commission, is a good petitioning cre- ditor against the purchaser ; and it makes no difference if he communicates the name of the purchaser to his prin- cipal ; unless indeed the principal has agreed with him to consider the purchaser as his debtor, and has taken steps for recovering the debt directly from the purchaser. (3) A commission cannot be supported upon a debt due to a natural born subject, voluntarily residing and carrying on trade in an enemi/s country ; and where some only of the partners of a firm were in that predicament, the debt due to the partnership was held incapable of supporting a com- mission. (4) But where one of two partners had a licence granted by an order in council, to export and import cer- tain goods to and from an enemy's country, and was there only for the fair purposes of the licence when the commis- sion issued — such a temporary residence was deemed not to invalidate the debt. (5) So a mere invohmtary residence of one partner in an hostile country, without any proof of adhering to the enemy, will not prevent his right to be a petitioning creditor with the other partner. (6) A creditor of an insolvent trader^ notwithstanding the dis- charge of the latter under the insolvent act, it has been held, may take out a commission of bankrupt against him ; and his debt, although included in the insolvent's schedule, will be a sufficient petitioning creditor's debt atlavoto support thecom- mission ; though the Lord Chancellor may, perhaps, upon a representation of the circumstances attending the issuing of such a commission, be induced to supersede it. (7) ( 1 ) Ex parte Cartwright, 2 Rose, 2-50. (2) Ex parte Goodwin, 1 Atk. 100. (3) Sadler v. Leigh, 4 Cowp. 195. (4) M' Connelly. Hector, 2 Bos. &P. 115. (5) Ex parte Baglehole, 1 Rose, 271. (6) Roberts v. Hardy, 3 M. &. S. 53o. (7) JcHis V. Mountfard, 4 B. &. A. 256. This case was determined upon the construction of the 53 G • i5. Sect. 1.] OF THE PETITIONING CREDITOR. 95 Though a public company have power by a private act of Amount parliament to commence " all actions and suits" in the "^ dUt^^' name of their secretary, as the nominal plaintiff, — this does not enable the secretary to petition for a commission of ^f-, bankruptcy against the debtor to the company. (1) company. A penalty due to the crown (2) is a sufficient debt to sup- Penalty port a commission, as well as an assessment for church and crown • highway rates (3) ; and the assessor in the last case is a good church, or petitioning creditor. rates^^^ It has been questioned, but not determined, whether a Where commission would be valid, that was sued out upon the ^""^ ^'"°" . r , T 1 1 1 T 1 amount ot petition oi three or more creditors, whose debts did not several altogether amount to 200/., though the debt of one was ^^^^^ be- more than 100/. (4) But it seems that such a commission would be bad ; for though that one creditor might alone have sued out a commission upon his own debt, yet if he chooses to take one out in conjunction with other persons, pursuant to the terms of the statute, — there does not ap- pear any reason, why the regulations of the statute should be dispensed with in such a case, which require the ag- gregate of the debts to amount to 200/. If after adjudication the petitioning creditor's debt be Though found insufficient to support a commission, it is provided ^^ -"'^^ now by the 18th section of the new statute, that in that Lord case the Lord Chancellor, upon the petition of any other j-'"^"^^'' creditor or creditors who have proved a debt or debts still order sufficient to support a commission, (provided the same were not incurred anterior to the debt of the petitioning c. 102. since which there have been declared bankrupt before the time innumerable other insolvent acts, advertised in the Gazette for the the last of which is the 7 G. 4. hearing of the petition, or within c. 57. but in none of them does two calendar months from the time there appear to be any provision of filing it; and see ante, page 84. that clashes with this decision, (1) Guthrie v . Fiske, 3 B. & C. except only so far as relates to the 178. 3 Star. 151. particular act of bankruptcy speci- (2) Cobb v. Symonds, 5 B. & A. fied in the last-mentioned statute ; 516. viz. the filing a petition to take the (.3) Lloyd v. Heathcote, 2 B. & benefit of that act, which, it is de- B. 388. clared, shall not be deemed an act (4) Smith v. Milles, 1 T. R.4S1. of bankruptcy, unless the person be commis- sion to be <>♦ OF THE PETITIONING CREDITOR. [Cll. 4. proceeded creditor,) (1) may order the commission to be proceeded in, which will then of course liave the effect of rendering the commission valid. Section II. Of the time of contracting and accruing of the Debt. Must be The debt must either be contracted — or at all events be whilst subsisting, — whilst the party is in trade (2) ; therefore party is in though a creditor whose debt was contracted before (3) the ^^ ^' party entered into trade, may sue out a commission on his debt ; yet a creditor for a debt contracted cfter leaving off trade cannot (4) do so, — though at the same time this is no objection to such a creditor 'proving his debt, in order to receive (5) a dividend. And if a simple contract debt is contracted whilst the party is i?i trade, though he gives the creditor a bond for it after leaving off trade, — this will not be such an extinguishment of the debt, as to prevent the creditor from suing out a commission onit(6); for though the bond would be a bar to an action, yet it will not prevent the creditor under a commission from proving the consideration. But if a trader indebted in lOOZ. quit his trade, and afterwards become indebted to the same creditor in 100/. more, and then pays 100/., without saying on what account, — the creditor in this case cannot take out a commission upon the old debt ; for without special di- rections as to the application of the payment, it will be presumed to be applied in payment of the former debt. (7) and before The debt must also be contracted by, or payable from, sovie&ctox jjjg bankrupt previous to an act of bankruptcy ; and it is riiptcy. (1) For the relation to the act (4) Meggott v. Mills, 1 Ld. of bankruptcy cannot be carried Raym. 287. 12 Mod. 159. Comb, back, beyond the accruing of the 463. Dmve v. Holdsivorth, Peake, petitioning creditor's debt ; and see 64. Penriz v. Daintry, 1 Sid. 411. post, " Relation." (5) 1 Ld. Ravin.287. (2) Doev. Lawrence, 2 Carring. (6) Peake, 64. & P. 134. (7) Meggott V. Mills, Datoe v. (3) Butcher wEaslo, 1 Doug.295. Holdnvorth, supra. Sect. 2.] OF THE PETITIONING CREDITOR. 95 not sufficient that it accrued previously to the issuing of Time of the commission. (1) But it is now provided by Section 19. '^"^'Tli' of the new statute, that no commission shall be deemed in- valid by reason of any act of bankruptcy prior to the debt of the petitioning creditor, provided there be a sufficient act of bankruptcy subsequent to such debt. This enact- ment is consistent with that of the 46 Geo. 3. c. 135., which was passed to remedy a great inconvenience in the bank- rupt law ; for before that statute, if any act of bankruptcy whatever was shewn to have been committed by the bank- rupt before the petitioning creditor's debt accrued, it ab- rogated the commission, and all the subsequent proceedings on it, — notwithstanding there was in reality an act of bank- ruptcy after the petitioning creditor's debt. (2) So that the petitioning creditor always encountered the risk of having the commission superseded, and the assignees the danger of failing in actions for the recovery of the bankrupt's pro- perty, by the other party setting up any prior secret act of bankruptcy. (3) This last-mentioned statute was, however, confined to cases where the petitioning creditor had no no- tice {^) of the prior act of bankruptcy ; but the new statute includes all acts of bankruptcy (without any restriction) before the petitioning creditor's debt. Therefore, as the law now stands, — whether the petitioning creditor has notice, or not, of any previous act of bankruptcy before the contracting of his debt, it will not invalidate the com- (1) Moss V. Smith, 2 Camp. 489. mission. And proof of a prior act Clarke v. Askew, I Star. 458. In of bankruptcy would not of itself one old case {De Golls v. Ward, invalidate the commission, — vvith- Forrest, 243. 4 Brown Pari. Ca. out proving also a prior debt suffi- 327.) it was decided to be suffi- cient to sustain a commission. Rex cient, if the petitioning creditor v. Bullock, 1 Taunt. 71. was a creditor at the time the (3) Toms v. Mytton, 2 Str. 744. commission issued ; but this Lord (4) But the petitioning creditor Hardwicke considered was altered was not presumed to have had by the 5G. 2. c, 30. ; and see 1 C. notice of an act of bankruptcy B. L. 25. prior to his debt, although it might (2) It was not, however, com- appear from the depositions to have petent to the bankrupt himself to been actually committed before it. set up a former act of bankruptcy, Thackrnh v. Wood, 3 Star. 141. in order to invalidate the com- 96 OF THE PETITIONING CREDITOR. [CIl. 4. Time of accruing of debt. Verdict in tort, before judgment, insuffi- cient. Debt con- tracted after ar- rest, when bad. Accepting a higher security imma- terial. Note made before, though indorsed after bank- ruptcy, good. mission, if there is a sufficient act of bankruptcy after the accruing of the debt. But the debt must be a complete and perfect debt before the act of bankruptcy. When, therefore, the debt was founded upon a verdict for damages for a tort obtained before, but upon which judgment was not entered up till after the act of bankruptcy, this was determined to be not a sufficient debt to support a commission ; for the debt in law does not accrue, until the judgment is regularly entered on the roll. (1) So, where the act of bankruptcy on which the commission is founded, is a lying in prison^ and the debt was contracted after the arr^s/, it was holden insuffi- cient. (2) But the acceptance of a security of a higher nature (3), or the obtaining judgment (I") after an act of bankruptcy will not, as we have seen, prevent the creditor from suing out a commission on a bond fide pre-existing debt. A bill of exchange, or a promissory note, is a debt from the date of it ; therefore an indorsee of a note made and negotiated by the bankrupt before, but indoi'sed by the payee to the creditor after an act of bankruptcy, is a good petitioning creditor; for he is considered to stand in the place of the indorser, — and the debt, as to the bankrupt, is not created by the indorsement, but by the making of the note. The drawer or maker of a bill or note contracts in fact a debt, the moment the bill or note is given by him, — and any subsequent indorsement relates to the original debt (5); but it seems that the petitioning creditor must shew, that it was indorsed to him before he sued out the commission {6), though the debt need not exist in him, (if it (1) Ex parte Charles, 14 East, 197. leVes. 256. Buss v . Gilbert, 2M. &S.70. (2) Ex parte Daggett, Whitm. B.L.42. (5) Ambrose v. Clendon, Sec. ante, 89. (4) Bri/ant v. Withers, 2 M. &: S. 12.7. 2 Rose, 12. (5) Ex parte Thomas, 1 Atk. 75. 2Wils. 135. Macarly V.Bar row, 2 Str. 949. Bingley v. Maddison, 1 C. B. L. 20. Glaister v. Hewer, 7 T. R. 498. Brett v. Levett, 15 East, 21.3. (6) Rose V. Rowcroft, 4 Camp. 245. ^ J Sect. 2.] OF THE PETITIONING CREOITOll's DEBT. 97 was contracted hy the hanJa-upt) before die act of bank- Time of ruptcy. And where the commission had been sued out "■'^'^^^^'"S- upon a bill of exchange for 100/., drawn and issued by a Bill not trader before an act of bankruptcy, but becoming due ^"^' '*, afterwards — and the debt was objected to, on the ground without ' that, at the time of the act of bankruptcy, 100/. was not f'pJ'-icting due, but only that sum minus the discount — the Court ' thought it sufficient, upon the above principle, viz. that the drawer contracts a debt the moment the bill is given. (1) So, where the bankrupt was the drawer of the bill, and Vaj3/£-5, 7 Vin. iBing. 324. 8 Moore, 189. Abr. 67. Master \. Winter, Dav. (2) Eden's B. L. 2d ed. 46. 464. (5) Ex parte Paddy, Buck. 235. (6) M'Neilage v. HoUoiuay, 1 B. sMadd. 241. &A. 218. (4) Rogers v. James, 2 Marsh. (7) Ex parteiSar&er, 1 G. & J. 1, 425. 7 Taunt. 147. H 2 100 OF THE PETITIONING CREDITOK. [Ch.4.. Duties and lia&Uiiiex. Infant. When either of the parties is an Infant at the time of contracting the debt, whether debtor (1) or creditor (2), the debt will not support a commission. But where a bill of exchange was drawn upon a trader when an infant, but accepted by him after he was of age, this was holden to be a sufficient debt. (3) Ail contracts in trade made by clergymen whilst in lidly orders being, as we have already seen (4), absolutely null and void, — it follows, of course, that any debt arising from such a contract would not support a commission. After exe- cution against the body, can- not sue out a com- mission. Except when. But court oi laiv no power to Section III. General Duties and Liabilities of the Petitioning Creditor. Where a creditor upon a judgment has sued out an execution against the person of his debtor, he is estopped from afterwards petitioning for a Commission of Bank- rupt against him (5); for taking the body in execution is considered in law a satisfaction for the debt (6); and he cannot after thus making his election, change the nature of his execution, and pursue his debtor's property. (7) But where a defendant was in execution for a debt due to two partners ; and afterwards one of the partners sued out a commission against him, for a separate debt due to him- self — this was held, not to be affected by the previous proceeding for the joint debt. (8) And a proceeding under a judgment, not against the person, is not any objection to issuing a commission upon the unsatisfied debt. (9) Not- withstanding, also, a plaintiff sues out a commission against (1) Ex parte Barwis, 6 Ves. 601. Ex parte Sydeholham, 1 Atk. 146. (2) Ex parte Barrow, 3 Ves. 554. Ex parte Moreton, Buck. 42. (.3) Stevens v. Jackson, 4 Camp. 164. (4) Ante,p.20. 57G..5.C.99.S.3. (5) Barnsbi/s case, 1 Str. 65.3. Cohen V. Cunnmghnro., 8 T. R. 123- (6) Foster v. Jackson, Hob. 52. Vigen V. Aldrirh, 4 Burr. 2482. Jacques V. Withers, 1 T. R. 557. Tanner v. Hague, 7 T. R. 420. Clarke v. Clement, 6 T. R. 525. (7) This observation is, of course, to be taken subject to the provi- sions on this head contained in the different insolvent acts. (8) Ex parte Stevens, 1 C. B. L. 1>5. (9) Miles V. Enu'iins, 4 Esp. 194. Sect. 3.] OF THE PETITIONING CREDITOR. 101 his debtor, after previously taking him in execution — yet a Duties and Court of law has no power to discharge the defendant out ^' "''■"^'^'^^- of custody ; this being a matter for the peculiar consider- discharge ation of the Lord Chancellor. (1) a ^^efeud- ant. The petitioning creditor has not the election, which the Petition- other creditors of the bankrupt possess — either to come in ing credi- as a creditor under the commission, or to sue the bankrupt ?* ,^^ "° ' t election. at law; for if he were permitted to proceed at law, the commission must be superseded, which would materially affect those creditors who had proved under it — as it would render their proofs perfectly nugatory. His election is, therefore, determined by taking out the commission ; and this, not only as to the debt upon which the commission is founded, but also as to every other claim which he may have against the bankrupt; an incapacity which does not attach to the general creditor; for if the latter has demands against the bankrupt of a distinct nature, he may prove one debt under the commission, and proceed at law for the recovery of the other. (2) And though the commission has not been opened, the petitioning creditor will equally be prevented from proceeding at law against the bankrupt; for as long as the commission is capable of prosecution, this disability is held to attach. (3) A petitioning creditor, however, who took out a separate Except commission against one of three partners for a joint debt, ^^"*^"- (which was afterwards superseded, and a joint commission taken out by another creditor) is not deprived of his election, under the second commission, to prove either against the joint, or separate, estate. (4) But a joint cre- ditor, who sues out a joint commission against partners, or a commission against a trader as a surviving partfier, can only prove, under that commission, against the joint estate, (5) (1) M'Mastei- V. Kelt, 1 Bos.& (4) Ex parte SmU/i, 1 G. & J. P. 302. '256. (2) See post, "Election." (5) Ex parte Banicd, 1 G. & J. (.3) Ex parte Piowse, 1 G. & J. 309. 92. H 3 102 OF THE PETITIONING CREDITOR. [Ch.4. Duties and liabilities. Irregu- larity in suing out commis- sion. Liability I'or costs of com- mission ; for neces- sary ex- penses. When al- lowed costs on petition. Penalties ibr com- pounding, The petitioning creditor incurs many liabilities, if he commits irregularity in suing out the commission ; for the commission will not only in some cases be superseded at his costs — but the bankrupt has also his remedy against him, either by bringing an action on the case for damages, or by procuring an assignment of the bond to the Chancellor. (1) The petitioning creditor is also personally answerable to the messenger for his costs, as taxed by the com- missioners, up to the choice of assignees (2) ; as well, indeed, as for all the costs of working the commission up to that period; though, if the commission is proceeded in, the assignees are then bound to reimburse him the amount (3), that is, provided the funds of the bankrupt's estate are sufficient for the purpose — and if insufficient, he must make up the deficiency out of his own pocket. (4) But this liability is only for the necessary expenses of working the commission ; he is not, therefore, liable for the costs of an unnecessary and fruitless journey undertaken by the messenger to a distant place, without any authority from himself. (5) And if a groundless application is made to supersede the commission, the petitioning creditor will in that case be allowed the costs of resisting the application out of the estate. (6) The commission is not issued for the benefit of the petitioning creditor alone, but is in the nature of an exe- cution for the benefit of all the creditors. Therefore it is provided by the 8th section of the new statute, that if the petitioning creditor after striking a docket, receive from the bankrupt any money, or security, either for the whole, or for any portion of his debt, whereby he may receive more in the pound than the other creditors, the com- mission is not only supersedable, but the petitioning cre- (1) See post. (2) Ex parte Johnson, 1 G. & J. 2.5. Burivoodv. Kant, sCarring. &P. 125. (3) Hartop V. Juices, 2 M. & S. 438. Hart v. Wliile, 1 Holt,. 37b". Finc/icfl V, How, 2 Camp. 278. (4) Ex parte Roscoe, 1 Meriv. 190. (5) Billings V. Waters, 1 Star. 36.5. (6) Ex parte Botiomley, 5 Mad. 01. Sect. 3. J OF THE PETITIONING CREDITOR. 103 (liter is also liable to forfeit his whole debt, as well as to Duties and J !• ,1 •- ^ 1 liabilities. repay or deliver up the money, or security, to such persons as the commissioners shall appoint, for the benefit of the creditors. (1) And he equally incurs the forfeiture of his debt, though some of the bankrupt's creditors are privy to the transaction. (2) Where a petitioning creditor after or receiv- the act of bankruptcy, but before the striking the docket, re- J1^ ?Yt " ceived from the bankrupt a sum of money which reduced from the his debt below 100/. — though Lord Eldon in such a case •^^"^'""P*- refused to supersede the commission, as the payment could not be retained against the assignees — yet, as the petitioning creditor had not avowed that he held the payment for the assignees, he was ordered to pay the costs of the petition and inquiry. (3) Any bargain, also, made by the petition- Corrupt ing creditor with the solicitor upon striking the docket — as ''^'^?^" . o , ^ ... withsolici- to proving the act of bankruptcy, or being indemnified tor a con- against the expenses of issuing the commission — will be '^^^P*^* considered a contempt of the Great Seal ; and any appli- cation by the petitioning creditor to carry such a bargain into effect will, of course, be dismissed. (4) But though the petitioning creditor, after striking a docket, is pro- hibited from receiving from the bankrupt any money, or security, whereby he may receive more in the pound than the other creditors, — yet it has been determined, that a contract to sue out a commission, in consideration that a friend of the bankrupt would give the petitioning creditor five shillings in the pound on his debt, was not illegal, — and that a bill given for the agreed sum was valid. (5) The petitioning creditor is bound to be assistant to Bound to the commission in all its stages, which (as it originates ^^ assist- ° .^ . * ant to the from himself) he is pledged to the validity of. Thus, commis- where the petitioning creditor agreed with the bankrupt, ^'°"' that he would not oppose his petition for a supersedeas, in consideration of the bankrupt giving him a warrant of (1) And see Ex parte Thomson, (3) Ex parte Miller, Buck. 283. 1 Ves. 157. Ex parte Stokes, 7 Ves. (4) Ex parte Wilson, Buck. 506. 408 . (5) Fry v. Malcolm, 5Taunt. 1 1 7. (2) Ex parte Brine, Buck. 108. VOL. I. * H 4 104 OF THE PETlTlONINt; CKEDITOH. [Ch. 4. Ditties and liabilities. to make previous iiujuiries as to trad- ing, &c,; to give in- ibrmation to the as- signees ; to produce docu- ments. Wlietlier bound to give evi- dence against his own coin- mission. attorney for the amount of his debt — the Court of Common Pleas set aside the judgment entered upon it, Sir J. Mans- field spying, that it was the duty of the petitioning creditor to support the commission. (1) He ought, nlso, to make due inquiry as to all the circumstances affecting the bank- ruptcy, before he issues a commission (2); and to give information to the assignees, upon every subject that comes within his knowledge as petitioning creditor. He is bound, therefore, to produce upon a trial, a bill of exchange, upon the direct proof of which his own debt, as petitioning cre- ditor, can be established. (3). And where shortly before the commission he had taken out execution against the bankrupt for part of the debt on which the commission issued, he was ordered to furnish the assignees with all the particulars of his debt — though this was in aid of an action brought by them against the sheriff for the very purpose of impeaching the execution, on the ground of a previous act of bankruptcy (4). And where a petitioning creditor, after the choice of assignees, stated to their solicitor, that the commission was not a good one, because the consideration of the bill on which it was sued out was for a gambling debt, and the assignees were thereby put to expense in establishing the validity of the commission, and also in- curred further expenses by his refusal to produce the bill, or to discover what had become ofit — Lord Eldon ordered that he should pay all the costs, which he had thereby occasioned to the assignees. (5) It was held by the late Vice-Chancellor, that a petitioning creditor, in a separate subsisting commission, was not compellable to attend as a witness before the commissioners, in support of a siib- sequent joint commission — as that would be in' effect to destroy his own proceedings (6) ; but Lord ElddVi subse- quently decided the contrary. (7) (1) Thomas \. Rhodes, 5 Taunt. 478. (2) Ex parte Blachnore, 6 Ves. 5. (.3) Ex parte Glossop, 2 Rose, ."86. F.\ pnrlc Jac/isim, Ibid. 1«8. Ex parte Graves, t G. & J. 86. (4) Ex parte Glover, 2 G. & J. CO. (5) Ex parte Glossoj), supra. (6) Ex parte Stones, 1 G. &J. 7. (T) Ex parte Harrison, 2 G. & J. 135. Sect. 3.] OF THE PETITIONING CREDITOR. 105 The petitioning creditor is also estopped by the affidavit Dutiex and of debt, which he makes on suing out the commission, from ''"^'^'''<^*- contending afterwards, that the debt was insufficient to Estopped support it. Thus, where the bankrupt's assignees sued ^vafTitlavit . of debt. him for the bankrupt's money which he had got into his hands, and it accidentally came out by a statement of accounts, that the balance due from the bankrupt was less, than what was sufficient to sustain the commission, — the petitioning creditor was not allowed to avail himself of that fact, in order to defeat the action. (1) When any action is brought for the recovery of property When wrongfully seized bv the messeno;er under the commission, ^"°"''' ^f . ^ . . " , ° made a de- the petitionmg creditor should be made the defendant fendant; in such action, and not the messenger — if the latter has only acted in obedience to the warrant of the commis- sioners — for, in such a case, the messenger would be en- titled at any rate to a verdict. And if the plaintiff recovers liability against the petitioning creditor, the latter is liable (2) not o°/action- only for the taxed costs of the action, but is also bound to repay the plaintiff such costs as he is obliged to pay to the other defendant. It is provided, also (3), in every such proof of action, that proof of the defendant being petitioning tionin J improper seen, be considered a contempt of the Great Seal. (2) purpose, a When a month has passed from the striking of the contempt, docket, without any thing further being done, the practice was in such a case, not to let a commission issue, without an affidavit that the petitioning creditor's debt had not been paid. (3) But by a subsequent general order of Lord Eldon (4), it is declared, that when a docket has been struck more than one calendar month without a commis- sion having been bespoke, the docket shall be considered as expired, and of no effect for the purpose of issuing a commission. The affidavit made by the petitioning creditor is general, Affidavit. and need not state the particulars by which the bankrupt became indebted (5) ; and if it state that the debt is for goods sold and delivered, though the petitioning creditor had at the time entered up judgment in an action for the debt, this has been held sufficient (6); nor will it beany objection to the commission, that the petitioning cre- ditor had not relinquished his judgment. The provision Irregu- in the statute is directory only, and not conditional; — there- aTooj"^' fore, where it appeared upon the face of the affidavits of four ground at petitioning creditors, that their debts did not amount to rj 5- ^"' 200/., though their debts proved before the commissioners the cora- amounted to more than that sum — it was held that this "^'ssion. irregularity did not make the commission void at law, though it might affiard a ground of application to the Lord (1) 16Ves. 145. contained in the order; but this (2) 18 Ves. 298. ; and see ante, recital does not agree exactly with 104. what is stated by the Lord Chan- (3) Ex parte BucMey ,'Qnck.o6'7 . cellor in that case. (4) 28th May 1819. This order, (5) Ex parte Wood,\ Atk. 155. which was made shortly after ex Bryant y. Withers, l\. &B. 211. parte Buckley, recites the previous (6) In re Bryant, 1 Rose, 283. practice at the bankrupt office, as Bryant v. Withers, 2M. &S. 12.T. being consistent with the directions 2 Rose, 8. 110 OF ISSUING THE COMMISSION. [Ch. 5. Affidavit. Not evi- dence of the debt in any sub- sequent proceed- ing. As to stating belietofan act of bank- ruptcy. Petition must agree with the affidavit. Bond. Chancellor to supersede it — or to stay proceedings till the proper affidavits were made. (1) The affidavit, indeed, is of no use in any period subsequent to the commission; for it is not e\en prima facie evidence of the debt, either before the commissioners, or in any action where the debt is dis- puted — which must be proved by other evidence. (2) A docket should not be struck without some solid ground of belief, that the trader has committed an act of bankruptcy (3) ; and the affidavit, as to this matter, is too often made with a precipitancy which has called for the censure of the Court. (4) But if proof can be made of an act of bankruptcy before the issuing of the commission, though it was in fact committed after the swearing of the affidavit, and the striking of the docket — the commission will not on that account be rendered invalid. (5) Thus, where the act of bankruptcy was by lying in prison, and the docket was struck before the requisite period of im- prisonment had expired, the commission was nevertheless supported, which was issued after the expiration of such period. (6) The petition must agree with the statement of the debt in the affidavit. Thus, where the secretary to a public company struck a docket for a debt due to the company^ but the petition stated the debt to be due to him in his oxon right — it was held, that the commission could not be sup- ported upon a debt due to the company. (7) The bond, which the petitioning creditor is required to give to the Lord Chancellor, is in the penalty of 200/., conditioned for proving his debt as well before the com- missioners, as at any trial at law, in case the commission be contested — and also for proving the party to have com- (1) Hill V. Heale, 2 N. R. 1 96. (2) Ibid. (3) Ex parte Bourne, 16 Ves. 145. (4) 6Ves. 4.>1. 14 Ves. 83 1 V. & B. 55. (5) Hopper v. Richmond, 1 Star. 507. (6) Ex parte Dufrene, 1 V. & B. 5 1 . 1 Rose, 353. Ex parte Pax- ton, 15 Ves. 462. 1Vi/down's case, 1 4 Ves. 80. (7) Guthrie v. Fiike, 2 Star. 1 r>\ Sect. 1.] OF ISSUING THE COMMISSION. HI mitted an act of bankruptcy, and for proceeding in such Bond. commission. The bond, however, need not be precisely ^ T" of the same date as the affidavit; as in the case of striking mental a docket, where the amount of the debt in the affidavit was ^^"^^'^ when per- incorrectly stated, the Lord Chancellor ordered a sup- mitted. plemental affidavit to be made without any new bond being given. (1) The bond must be executed bi/ the petitioning creditor ; As to ex- an infant^ therefore, who is unable to bind himself by ^'^"t'on of bond, cannot be a petitioning creditor, — nor will any other infant person be allowed to execute the bond for him. (2) And where the debt to support the commission is made up of several debts — each of the petitioning creditors being re- quired to make an affidavit of his debt, and to enter into the bond — if one of these, therefore, is an infant, the commis- sion cannot be supported. (3) Where husband and 'wife Husband are petitioning creditors, the bond should be executed by ^ " the husband, (i) Where partners are petitioning creditors, it will be suf- Partners, ficient if one of them makes the affidavit, and executes the bond (5) ; and the same also with respect to assignees. (6) Assignees. By an order of Lord Apsley's (7), the mere striking a Sealing docket was directed, in no case, to prevent the issuing of ^o'"""*- a commission by any other creditor, so as such second application was not made, before the expiration of four days after the first docket struck. A practice, however, a good deal at variance with the terms of this order, was long permitted to grow up at the Bankrupt office, and which, Lord Eldon has observed, affiDrded testimony that the order itself was inconvenient to be followed ; and he (1) Ex parte Moughan, 1 G. & (5) Ex parte Hodgkimon, 2 Rose, J. 365. 1 72. 1 9 Ves. 29 1 . Roberts v. Har- (2) Ex parte Barrow, 3 Ves. die, 2 Rose, 174. (note). Ex parte 554. Benjamin, Buck. 44. Ex parte (3) Ex parte Morton, Buck. 42. Peele, Buck. 457. ; but see ante, 8 9. (4) Rumsey v. George, 1 M. & S. (6) Ex parte Blakey, 1 G. & J. 176. ' 197. (7) 14th Feb. 1774. sion. 112 OF ISSUING THE COMMISSION. [Ch. 5. Sealing conmiix- sion. When commis- sion should be sealed. Commis- should be sealed at the 7iext immediate public seal. thought also that if strictly acted upon, it would open a door to jrreat fraud. (1) It has been, therefore, altered and modified by subsequent orders, both of Lord Erskine and Lord Eldon (2), by which it is directed, that if, after striking a docket, the petitioning creditor do not wiihin four days afterwards order a commission to be sealed at the then next public seal — in case there shall be one within seven days after the docket shall be struck — or by a private seal within eioht days after strikino; the docket — and cause the same to be sealed accordingly, then any other person may sue out a commission, without any notice to the per- son who first applied for one. An application for a com- mission, on the evening of the fourth daij from striking the docket, immediately before 8 o'clock (the hour of shut- ting up the office), is sufficient; and, if necessary, the clerk ought to remain there a quarter of an hour later, to enable the party to proceed next morning to have his commission sealed. (3) When the 4th day is a holyday, the party should nevertheless apply for the commission on_that day, at the chambers of the clerk of the Secretary of Bankrupts ; for, if he does not, he runs the risk of losing the commis- sion, inasmuch as whoever applies first the next day has a right to it. (4) The meaning of the direction in the orders is, that the commission shall be sealed at the next immediate })ublic seal within the seven days, without any discretion on the part of the officers at the Bankrupt office to defer the sealing, till a subsequent public seal within the seven days (5); therefore v.'here there was a seal on the 5th, and another on the 7th day, it was held that the commission must be sealed on the 5th. But notwithstanding the terms of the order, and though the creditor does not bespeak the commission (that is, order it to be sealed,) until the 5th day, yet if he does (1) Ex parte Leicester, 6 Ves. (.") ] time (2): as where an equitable creditor signed a compo- sition deed with his debtor, and afterwards attempted to sue out a connnission in the name of his trustee. (3) Tile commission is directed to five commissioners (4), to whom empowering four or three of them to execute it. These, ''•'"ectecl. where the commission is to be executed in London^ are generally all barristers specially appointed by the Lord Chancellor. If the commission is to be executed in the Country Country (which can only be when the bankrupt resides above 40 miles <^P'iiniis- from London), two of the commissioners at the least must be vvho'm barristers — who are quorum{o) commissioners — and the re- d''"t:cted; mainder may be attornies. Their names are delivered in by the solicitor at the Bankrupt office, when he bespeaks the commission; and those commissioners, who are banisters, must be resident at or near the place where the commission is to be executed (6) ; no London commissioner's name being allowed to be iriserted in a Country commission, without a certificate, tliat it is with his express consent(7), — nor with- out a certificate also that he intends to act. If there are when may not two barristers resident within 20 miles of the place I'e direct- where the commission is to be executed, or who will be attornies willing to attend there, or at some convenient place in the neighbourhood, for the fees allowed In' the statute, the commission may then be directed to five attornies ; but in this case the solicitor applying for the commission must make an (1) Ex parte Fletcher, 1 Rose, (5) See Section 23. 336". (6) Lord Loughborough's Order, (2) Ex parte £aor, 19 Ves. 542. Ex parte Soppii, Buck. 81., but (s) Ex parte Mavor, 19 Ves. see ante, 120. 542. (5) Ex parte Freonan, 1 Rose, 384. 122 OF ISSUING THE COMMISSION. [Ch. 5. When to be ex- ecuted. When time en- larged for adjudica- tion. Same pe- titioning creditor cannot sue out a se- cond com- mission without special leave. not entitled to the second commission as a matter of abso- lute ri^ht. For where, in a case of this kiticl, there was a hondjide intention of prosecuting the first commission, de- layed only by the refusal of the witness (who could prove the act of bankruptcy) to attend the commissioners, and notice had been given to the solicitor who struck the se- cond docket, that a petition had been presented to compel the attendance of that witness, and that the commission was intended to be prosecuted, — the second commission, under these circumstances, was directed to be superseded, and the first commission to proceed. (1) And in another case, where the commission was supersedable under the above order, and the solicitor who took out a second com- mission, had previous notice that the first was to be pro- ceeded in. Lord Eldon intimated his intention to have made the solicitor pay the costs, if the first solicitor had not in fact (under the apprehension that the first commission could not stand,) himself taken out a fresh one. (2) Where, also, the adjudication was prevented, by the witness to prove the act of bankruptcy secreting himself in conceit with the bank- rupt, the time has been enlarged from time to time, on peti- tion to the Chancellor, with an affidavit of the facts. (3) By a general order of Lord Thurlow(4) a petitioning creditor who has sued out one commission, and who has neglected to prosecute it, cannot sue out another without the special leave of the Lord Chancellor. And this will not be granted, when no proceedings were had under a connnission sued out a twelvemonth before. (5) Lord Eldon also has directed, that a second commission should never be sent to him, without a note of what had been done (1) Ex parte Freeman, 1 Rose, 580. (2) Ex parte Sanden, 1 Rose, 85. (.3) In re Hayes, 1 G. & J. 255. (4) 6th Dec. 1788. Thereisno printed or written copy of this order ; but it was made upon a petition of Sir Richard Arkwright, in the matter of Gibson and John- son, and was a direction given by Lord Thurlow to Mr. Woodcock, the then secretary of bankrupts ; and although the order never was published, yet it has invariably been acted upon at the Bankrupt office. Whitm. B. L. 476. (5) Ex parte Masterman, 18 Ves. 298. 2 Rose, 442.; and see 1 Rose, 353. (note.) Sect. 2.] OF ISSUING THE COMMISSION. 123 in the first. (I) For where there is great delay in exe- When to ciiting a commission, there arises necessarily a presump- ^ Y', tlpn of fraud (2); and tiiough no other creditor supersede the commission for want of prosecution, yet, after a con- siderable lapse of time, the Court will not permit the pe- titioning creditor to proceed (3) upon it. But where the Where de- delay arose from the bankrupt, and not from the petitioning fyo^^'^^hg creditor, a commission was in that case ordered to be opened bankrupt. near four months after it had issued. (4) In such a case, however, the delay must be against the 'mill of the petition- ing creditor; for if the delay be wilful, it is not a sufficient excuse, that it was at the request of the bankrupt, and with the concurrence of the creditors. (5) A commission supersedable under the above orders of Who may Lord Loughborough may (6) be superseded by any persons supersede, (except the bankrupt or the petitioning creditor), as a matter of course, by mere application at the Bankrupt office; but the bankrupt (J) or the petitio7iing creditor {8} cannot super- sede without a petition. Section IL Of the general Effect of the Commission, A commission of bankrupt was formerly treated as an Distinc- cxeciition at law in the first instance (9) ; and it is still 1'"" ^ . tween considered in the nature of an execution, being a process commis- for all creditors, lefjal and equitable, against a debtor's es- ^'°"' ^. 1 • 1 I • .1 • I 1 • I • execution, tate and effects, to which he is either entitled m his own right, or jointly with that of others. (10) It is, indeed, so far like an execution, that it may be issued against one only of several partners for i\ joint debt(ll); but it differs from an (1) I V. & B. 34. and see Ex parte Tliovison, 1 Ves. (2) 1 Rose, 584. 157. (3) Exparte P2ii 11 separate by prosecuting tlie joint commission, the Lord Chancellor commis- has long exercised the discretion of superseding, or suspend- sions. ing, the prior separate commissions, and ordering the joint commission alone to be proceeded with; under which latter commission the assignees can, at law, recover both the joint and separate estates, and the same distribution will be then made, as if both the joint and separate commissions were per- mitted to stand. (3) But this discretion will be only exercised, (l)SeeHoggv. Bridges, 2Moore, L, 9. 1 Cox, 597. Ex parte ilfar- 122. ' tin, 1 5 Yes. 115. E\ parte Smith, (2) Backhouse v. Tarleton, 2 Star. 1 G. & J. 256. Ex parte Bonbonus, Ev. 143, cit. ySwanst. 571.; and 8 Ves. 540. Ex parte Gardner, see ante, 31. et seq. 1 Ves. & B. 74. (3) Ex parte tiardcaatle, I C. B. 130 OF THE COMMISSION. [Ch.5. Joini Com' Prior com- mission in Ireland. Petition- ing credi- tor under separate commis- sion, al- lowed the costs of super- seding; and re- stored to his right of elec- tion. When separate commis- sion im- pounded. where it is clear that more ample justice can be obtained under the joint commission. (1) It is not, however, a suffi- cient objection to superseding the separate commission, that a separate creditor to a great amount will by that means be divested of his right of voting in the choice of assignees. (2) Neither is a prior separate commission, issued in Ireland against one of two partners, a ground for superseding a joint commission issued against them in this country. (3) When a prior separate commission is superseded to give effect to a subsequent joint one — as this proceeding is not a matter of strict right, but for the convenience and general advantage of all the creditors — it is deemed but just, that the petitioning creditor under the separate commission should be indemnified for the expenses of this proceeding. Therefore, unless he has been acting 7nald Jide, he receives all the costs of the superseding out of the joint estate. (4) And when a separate commission is thus superseded, every thing done under it falls with it. Thus where a joint and separate creditor sues out a separate commission, and proves his debt under it, he is, upon the supersedeas^ restored to his right of election to prove against the joint estate; and he has also a right to elect, out of which estate he will be paid the costs of the supersedeas. (5) When, however, a separate commission is taken out after a joint one, and after the petitioning creditor had previous notice of the joint commission, in this case, the separate commis- sion will be superseded at the expense of the petitioning creditor. (6) But though it lies in the discretion of the Lord Chan- cellor to supersede a prior separate commission, and this in any stage of the proceedings, and whether the bankrupt has got his certificate under it or not (7); yet where sales (l) Ex parte Rawson, 1 V. &-B 160 (51 Ihid. - ju. (6) Ex parte Mason, 1 Rose,425. (2) ExpartePacAe/o>-, 2Rose,26. (7) Ex parte Cntlen, Buck. 68. (3) Ex parte Cridland, 2 Rose, Ex parte Poole, 2 Cox, 227. Ex 164. parte Gi//a?K, Ibid. 195. (4) Ibid. Ex parte Brown, 1 Rose, 452. 1 V. & B. GO. Sect. 4.] OF THE COMMISSION. 131 of the eflPects have taken place, or the bankrupt's certificate Joint Coin^ has been brouglit into the Bankrupt office for allowance, ^ ""^'""' the Lord Chancellor will then sometimes, in preference to superseding it, direct it to be impounded in the Bankrupt office. (1) By this mode of proceeding, whilst full effect is given to the working of the subsequent joint commission, the sales and certificate under the separate one are, at the same time, prevented from being rendered invalid. And generally, where superseding the separate com- mission might prejudice transactions that have taken place under it, the Lord Chancelloi- will, if the convenience of administering the partnership fund makes it better that the joint commission should stand, so dispose of the first com- mission (without superseding it), as to prevent its being an impediment to the prosecution, or validity, of the subse- quent joint commission, (2) Even a court of law has exer- cised a species of equitable jurisdiction in this respect; as where the assignees under a prior separate commission obtained a verdict against a defendant — upon its appearing that there was a subsequent joint commission — it was ordered that the money should be paid into court, until a petition to supersede the separate commission then pend- ing had been decided. (3) Under some circumstances the joint commission will be When the superseded, and the separate one preferred : as whei'e a s^P^''^t6 ,^ , . ' ^ , commis- joint commission was not taken out for^t;^ months afie)- a sionwillbe separate one had issued, and there did not appear to be pi'^^'^rred. any joint eff^ects. (4') And a separate commission will not Laches of be superseded upon the petition of joint creditors, if they JP'"*^ "^' suffer a considerable time to elapse, without obtaining an order to prove, for the purpose of assenting to, or dissenting from, the certificate, — and more especially, if the certificate under the separate commission is actually lying for confirm- (l) Ex parte i2oz(;/aH(?5on, ] Rose, (3) Hodgkinsonw. Tr avers, 1 B. 416. Ex parte Tobin, 1 V. & B. & C. 257. 308. 1 Rose, 431. note (a). Ex (4) Ex parte /?02i'/rt?2^soH, 1 Rose, parte i?a7<;soK, I V. &B. 160. 89. Ex parte Hamper, 17 Ves. fr,\ f,, ^_ TI/T , n ^-- .i^- yyan^i naivion, i v.ecii. ibu. »y. (2) Ex parte Mason, 1 Rose, 433, 403. Ex parte Wilson, Buck. 52. m OF THE COMMISSION. [Ch. 5. Joint Com- "mssion. by not sur- rendering. ation, and no misconduct is imputed to the bankrupt. (1) Where, also, a separate commission was sued out against one of two partners, who was adjudged a bankrupt, and then the other partner died before assignment, and afterwards a second commission was taken out against the bankrupt partner, describing him as surviving partner, — the first commission was supported in preference to the second, the adjudication being considered as the act which severed the partnership. (2) Where A separate commission will not be superseded to give the bank- ^^qq^ ^q a. subsequent joint one, where the bankrupt has committed committed a felony, by not surrendering to the separate a felony commission (3) ; unless, indeed, the omission to surrender proceeded merely from mistaken advice, and not from any fraudulent intent. But under such last mentioned circum- stances — and where it appeared also that the bankrupt had surrendered, and passed his examination under the joint commission — Lord Eldon superseded the separate com- mission upon the petition of the bankrupt, even after a prosecution had been instituted against him. (4) Under a joint commission, it is the practice of the Court to make an order, (which may be obtained now without a petition,) that the assignees shall keep distinct accounts of the several estates, and that the separate creditors may come in and prove their debts. (5) And if any proceed- ings have been had under a separate commission v/hich has been superseded, they are generally ordered to form part of the proceedings under the joint commission, and the proofs taken under the former commission are directed to be received as proofs under the other. (6) By section 17. of the new act, where a commission is issued against two or more members of a firm, and after- sionissued, wards a commission is sued out against any otlier or the "^'®*'?' partners, the last commission must be directed to the same (1) Ex parte Cutten, Buck, C8. (5) 1 Atk. 138. (2) Ex parte Smith, 5 Ves. 295. (6) Ex parte Tobin, 1 V. & B. (.'5)Exparte^o6ar^s,2Rose,578. 508. Ex parte Upham, 17 Ves. li) Ex parte Lavender, IS Ves. 212. 19. 1 Rose, 55. Usual order for distinct accounts, &c. Where separate Sect. 5.] OF THE COMMISSION. 133 commissioners as those in the first commission ; and im- Joint Com- mediately after the adjudication under the second com- ^ '""""' mission, the commissioners are directed to convey and joint com- assure all the bankrupt's estate to the assignees chosen "^'^P'"" . ' , ^ against imder the first commission ; and after such conveyance, all others of separate proceedings under the second commission are ^^^^' directed to be stayed ; and the second commission, without affecting the validity of the first, is to be annexed to and form part of the same. The Lord Chancellor has, how- ever, the power to direct the second commission, if he thinks fit, to be issued to any other commissioners than those named in the first; and also to order such second commission to proceed either separately, or in conjunction, with the first commission. Section V. Of renewed and auxiliary Commissions. If more than two of the commissioners should die — by When which means there would not be a sufficient number to f.o'"™^- • r I • • 11111 • • • 1 sio" ™ay act, — or it the commission shoukl be lost, — it may in either be re- of these cases be renewed; on which occasion only half the "^^^d> usual fees on granting commissions are payable. ( 1 ) Where, when it however, the creditors have been paid the full amount of <^^""o'- their debts, there cannot be a renewed commission. In such a case, therefore, where all the commissioners were dead, the representatives of the surviving assignee were ordered to execute a power of attorney to a receiver, ap- pointed under a decree of the Court of Chancery in a cause, by virtue of which he was deputed to collect and get in the estate. (2) Auxiliari/ commissions for the proof of debts under 20/. Auxiliary were, before the present statute, issued by the Lord Chan- commis-, ' ^ ' 111 sions. cellor ; but there was no power granted under such com- (1) Section 26. of the new act, case, 1 Vern. 208. Ex parte Hal' from 5 G. 2. c. 50, s. 44. Ex parte Mat/, 7 Vm. 77. Jtobbef, Buck. 152. Backtvelfi (2) Twogood v. Hank&y, Buck. 6S. K 3 134. OF THE COMMISSION. [Ch. 5. missions to examine the bankrupt. (1 ) But now by sect. 20. of the new act, the Lord Chancellor is empowered to issue auxiliary commissions, both for proof of debts under 20Z. and for the examination of witnesses upon oath, or for either of these purposes. And the commissioners in every commission of this description are clothed with the same powers to compel the attendance of, and to examine wit- nesses, &c. as are possessed by the commissioners in the oriirinal commission. The examination of witnesses under such commissions is dii'ected to be in writing, and to be annexed to and form part of the examinations under the original commission. Assign- ment of the bond to the Chan- cellor. When it will be im- mediately assigned. When after a Section VI. 'Remedy "shere Coinmission is maliciously sued out. By the 13th section (2) of the new statute, if the com- mission is issued fraudulently or maliciously, and without foundation, the Lord Chancellor may, upon the petition of the person against whom it was taken out, order satisfaction to be made to him for the damages sustained ; and for the better recovery thereof may assign the petitioning cre- ditor's bond (3) to him, upon which he may afterwards sue in his own name. Where the case is attended with any flagrant circum- stances, the bond will be immediately assigned (4) (without further inquiry) to ^^ the j)crson against 'whom the commission xms taken outV (5) But when the Bankruptcy is a doubtful (1) Ek parte Perry, 1 Rose, 12. Ex parte Scott, Ibid. Ex parte Upham, 17 Ves.212. (2) From 5G. 2. c..30. s. 23. (s) The provision for a bond to the Chancellor, and the assignment of it to the petitioning creditor, was first introduced by the 5 Ann. c. 22., which statute expired very soon after its enactment. (4) Ex parte Gaylor, 1 Atk. 144. (5) These words, it seems, were , inserted in the act, instead of the words " party grieved," (which was the expression in the 5 G. 2. c. 30.) in order to remove certain doubts, raised by the case of Smithey v. Edmonson, 3 East, 22. as to the right of any other person, than the one against whom the com- mission was issued, to call for an assignment of the bond. (See Eden, B. L. 64. note (a)). But it has been determined since that Sect. 6.] OF THE COMMISSION. 135 case, it is in the discretion of the Lord Chancellor, either Remedy, to direct an inquiry before the Master of the damages sus- _i tained by the bankrupt, or a quantum damnificatus upon an previous issue at law ; and after the damages are settled, the Chan- '"^"''"y* cellor may then, for the better recovery of them, order the bond to be assigned. (1) Sometimes, when the case is one of strong suspicion only, the Lord Chancellor will not assign the bond, though he will supersede the commission with costs, without prejudice to an action ; for the power Assign- to assign the bond is confined to the case of malice (2) ; of "?^".'^ '^°"" o . . . . elusive which, indeed, the assignment itself is conclusive evi- proof of dence (3), and neither more nor less than the penalty can ^^"'^e. be recovered. When, however, the conduct of the petition- When ing creditor, though highly improper, is not such as to justify ^'^"'^ ^lU an assignment of the bond, the Lord Chancellor will some- to stand as times order the bond to stand as a security for the damages, ^ secunty. to be ascertained in an issue ; but in one case of this kind, where the petitioning creditor became bankrupt himself. Lord Eldon named a specific sum, to obviate the objection that the damages so ascertained would be a debt liquidated after the bankruptcy. (4-) The assignment of the bond beinfj conclusive evidence Actions on 111 Q^ fraud, or malice, it is not necessary, in an action on the V^ ^ " d b&nd, to aver in the .declaration, that the commission was not be fraudulently or maliciously sued out. (5) And where the ''iverred. defendant in such an action pleaded, that the Lord Chan- ^ad'^*^^'^^ cellor had previously ordered a certain sum to be refunded by the defendant, and the costs of the plaintiff to be also paid by him, and then averred payment of such sum, and the costs, before the suing out of the plaintiffs writ, in satisfaction of the damages sustained by the bankrupt's estate; and that neither the plaintiff, nor the bankrupt's estate had sustained any other damage idtrd the sums so case, that a creditor aggrieved by (2) Ex parte Lane, 11 Ves. 415. the issuing of a fraudulent com- (3) Ex parte Gaylor, supra, mission, was not entitled to an (4) Ex parteiFwicH.?, MVes.fiOO. assignment of the bond. (Ex parte (5) Smith v. Broomhead, T T. R. i?a?H/brrf, 2 Madd.l.) 300. Holmes v. WaUuvnght, (1) Ibid. 1 S\vanst.,2.5. K i m OF THE COMMISSION. [Ch. 5. Remedy, Bond not within tiie 8&9W.S. Party not deprived of his action on the case ; but that is a waiver of the action on the bond. paid to the plaintiff; — it was held, that this plea was no answer to the action ; for the order of the Lord Chan- cellor assigning the bond implies, that the whole penalty of the bond was assigned to the plaintiff, by way of satisfaction in damages for the injury sustained. (I) It is competent, however, to the Lord Chancellor under these circumstances to review his former order, and to direct either the whole, or any part, of the penalty to be applied accordingly. The bond is not within the statute 8 & 9 W. 3. c. 11. s. 8., by which a jury is to assess the damages ; for the damages in this case are to be ascertained by the Lord Chancellor, though he may assist his conscience, either by directing ajj, inquiry before a Master, or an issue at law. (2) >^'+ But notwithstanding the above provision in the statute for the assignment of the bond, the party, against wliom a commission is maliciously sued out, is not deprived of his common law remedy by an action on the case against the petitioning creditor; and this mode of proceeding will indeed sometimes afford more satisfactory redress to the injured party, than an action on the bond, — inasmuch as a jury are not limited to the amount of the penalty of the bond, but may give any damages which they may think the plaintiff is justly entitled to. (3) An action of this de- scription, however, is a waiver of a right of action on the bond. (4) In such an action the solicitor should not be joined as a defendant ; for in a case of this description, though the plaintiff gave in evidence, that the messenger had taken possession of his property by the orders of the solicitor, it was held, nevertheless, by Macdonald C. B., that there was no satisfactory ground of action against the latter, who was professionally bound to act as he had done. (5) (^1) Smitket/v. Edmonson, 3 East, 91. Ex parte Fletcher, 1 Rose, 22. (2) Ibid. (3) Brown v. Chapman, 3 Burr. 1418. Chapman v. Picker sgill. sWils. 145. £o«/jam's case, 8 Rep. 121. Wydown\ case, 14Ves. 90, 454. (4) Holmes V. Wainwrighf, I Swanst. 20. (5) Smith V. Gainsfurd, 1 Rose, 148. n. Sect. 6.] OF THE COMMISSION. 137 Whenever the circumstances of the case justify the Remedy, interference of the Lord Chancellor, he will, whether _____ he directs an assignment of the bond or not, order the As to de- commission and the proceedings to be delivered up on ^°*"^ j oath to the Secretary of Bankrupts, for the purpose of being ings. produced at the trial of any action or indictment, that may be brought against the petitioning creditor, or other party implicated in suing out the commission ; and will per- mit the bankrupt, or his solicitor, to take such copies of them as they shall be advised. (1) But a judge, it seems, A judge has no authority to make an order for the bankrupt to in- ^j^^ ?° ^^' spect and take copies of the proceedings, notwithstanding order they remain in the hands of the attorney who sues out the '^"P*^^- commission. (2) The allegation in any such action that Allegation the commission was duly superseded, can only be sustained ^^/"^^'^' by the production of the writ of siipersedeas ; for the Lord Chancellor's order directing a supersedeas to issue, is im- perfect evidence that the isorit was actually issued. (3) It is What a a fatal variance, also, to allege that the defendant sued out ^^^ variance. the commission out of the High Court of Chancery ; for the commission does not issue out of the Court of Chancery, though signed by the Lord Chancellor, — but under the Great Seal of Great Britain, by virtue of the act of par- liament giving special jurisdiction to the Lord Chancellor in matters of Bankruptcy. (4) If it appear, that persons have conspired together in the Conspira- issuinr; of a fraudulent commission. Lord Eldon has de- ^'^ }^ 'f^"® o ^ ^ a trauda- clared, that in such a case he would direct the necessary lent corn- documents to be laid before the Attorney-general, with a m's^sion. view to the institution of criminal proceedings against the parties. (5) But the offence may also be prosecuted either by indictment, or information, without recourse to the Attorney-general. (6) (1) Ex parte Warren, 1 Rose, (4) Ibid. 276. 19Ves. 162. (5) Ex parte ^7»er?/, Buck. 422. (2) Ibid. , • (6) Ex parte Caivthorn, 19Ves. (3) Poyw^onv. For«/fir, 3. Cam p. 260. 58, 138 CHAP. VI. OF THE MEETING TO OPEN THE COMMISSION. Prelimi- nary pro- ceedings to the ad- judication. Petition- ing cre- ditor must attend in person. As soon as the commission is sealed, three of the Com- missioners ought to be summoned by one of the messengers in Bankruptcy to attend a private meeting, for the purpose of opening the commission. After it is opened^ the com- missioners, before they can act under it, must quahfy them- selves by taking the oath directed by the statute ( 1 ), v/hich they are required to administer to one another ; ■ — and a memorial of which must be signed by them, and entered among the proceedings under the commission. They then proceed to receive proof of the petitioning creditor's debt, the trading, and the act of bankruptcy (2) ; each of which ought to be made out to their satisfaction, previous to their declaring the party bankrupt. The petitioning creditor — or if there is more than one, then all of them — must attend in person (3) before the commissioners to prove the debt or debts, upon which the commission has issued. And before the commis- sioners declare the party bankrupt, they are required to enter on their proceedings a deposition of the petition- ing creditor, stating the nature and amount of the con- sideration, and the time of accruing of the debt. This, order must be strictly adhered to, and the commissioners are not to depart from it (even in cases where it is im- possible for the creditor to attend) without the special order of the Lord Chancellor, — which will only be obtained in a case of imperative necessity, and will not be made (1) Section 21. (2) See Vol. II. (5) General Order of Lord Loughborough, 2(»th Nov. 1798. See also 17 Ves. 415. Ch. 6.] OF OPENING THE COMMISSION. 139 merely on the ground of the attendance of the petitioning creditor being inconvenient to himself. (1) But where the party is so ill that he cannot attend but at the hazard of his life, the Chancellor will in that case, upon a proper affidavit of a medical man, make an order that his personal attendance shall be dispensed with, and that the commis- sioners may receive an office copy of the affidavit, made on striking the docket, in proof of the debt. (2) If the peti- tioning creditor should die, between the issuing and the opening of the commission, his executors then will be per- mitted by a special order to prove the debt. (3) The witnesses to prove the trading, and the act of bank- Witnesses ruptcy must also personally attend (4) before the com- gon^l/'*^^" missioners ; but no witness, who is a creditor^ is admissible attend. to prove these facts. Neither can the 'wife of the bankrupt Bank- be examined to prove any of the requisites to support the '""P'- ^ commission. (5) But it seems, that where there is a valid . , . . . . As to m- objection to the competency of a witness, if it be not taken compe- before the commissioners prior to the adjudication, it can- *^6"cy of Witness, not afterwards be urged as an objection to the proceedings under the commission. (6) The personal attendance, how- Excep- ever, of a witness may be, under special circumstances, tio"* dispensed with ; as where a separate commission had issued against a party under which he was found a bankrupt, and afterwards a joint commission was taken out against him and his partners, and the only witness, who could prove the act of bankruptcy against him, was in Cumberland upon business of importance, — the Lord Chancellor in this case permitted the commissioners to receive an affidavit of the act of bankruptcy, made by the witness before a Master Extraordinary, upon being informed that the joint (1) 'Eyi ^avte Wilkinson, 1 Jac. & (4) Ex parte Allnid, iC.B.L. W. 240. In re Graham, Buck. 47. 105. Ex parte Edivards, Ibid. (2) Ex parte Edwards, 8 Ves. (5) Ex parte James, 1 P. Wms. 318. 611. (3) Ex parte Winwood, 1 G. & {6) Ex parte Lane, 1 Mont. Dig. J. 252. 89. •» 140 OF OPENING THE COMMISSION. [Ch. 6. Proof of lying in prison. Duty of commis- sioners. Adjudi- cation. In case bankrupt dies. commission was directed to the same commissioners as the separate one. (1) But in a subsequent case of a similar nature, where the application was opposed by the bank- rupt, such an order was refused. (2) As to the authority of the commissioners in enforcing the attendance of the witnesses to prove the trading and the act of bankruptcy, see post. Chap. VI. Sect. IV. & V. Where the act of bankruptcy consists in lying in prisoji^ the usual proof of it before the commissioners is, by pro- ducing the certificate of the clerk of the papers signed by him, and proved by a witness who can depose to his signature. (3) The evidence produced at this meeting of the com- missioners being all ex parte, it is both their practice and their duty, to enquire minutely into the fairness of the petitioning creditor's debt, and the manner in which it arose, as well as into the facts of the trading, and the act of bankruptcy. (4) And if the result of the inquiry aflTords to their minds sufficient evidence, (for they are not bound to believe all that is sworn) (5) that the party has become bankrupt within the intent and meaning of the statute, they are then required to adjudge (6) him a bankrupt accord- ingly ; that is, to declare generally (7), that he became bankrupt before the date and suing forth of the com- mission ; and they then sign an adjudication to that effect. (8) The adjudication is so fur final, that the com- missioners may, notwithstanding the subsequent death of the bankrupt, proceed in the commission as if he were still living (9) ; but they cannot adjudicate if the party is already dead, the commission being in that case absolutely (1) In re Wood, i Rose, 298. (2) Ex parte Howe, 2 Rose, 339. (5) 1 Mont. B. L. 403. (4) 1 C. B.L. 103. (,5) Ex parte Simpson, 1 Atk. 71. (6) Section 24. (7) Broviley v. Goodere, 1 Atk. 78. Ex parte Groome, Ibid. 119. (8) For the form, see Vol. II. (9) Section 26. Beasley v. Beas- ley, 1 Atk. 97. ^\^z\te Dewdnei/, 15Ves. 494. Doe v. Clarke, 5 li, &A.458. Ch.6.] OF OPENING THE COMMISSION. 141 abated, and the commissioners deprived of all further authority. (1) The Lord Chancellor has no authority to compel the Commis- commissioners to adjudicate : for they are the only tribunal, s'''"^" '' ' ,. "^ , . , . . cannot be to which this particular proceeding (which is entirely dis- compelled cretionary on their part) has been committed by the ^^ adjudi- legislature. (2) Ail that the Chancellor can do is, to order them to proceed generally in the execution of the commission. But where the petitioning creditor, either but where from the death, the absence, or the differing in opinion of ^fft^^jj^ the commissioners, is unable to obtain any adjudication of fresh com- the bankruptcy, he will be permitted, upon application to ™jg°gj the Lord Chancellor, to take out another commission against the bankrupt, upon the same docket papers on which the first commission issued, directed (if in London) to another list of commissioners next in turn at the Bankrupt office. (3) After adjudication, the commissioners are directed to Notice in 4-Vt r^ cause a notice (4) thereof to be published in the next London ^ette Gazette, by which three public meetings are appointed for the bankrupt to surrender, — the last of which must be on the forty-second day after such notice (5), and after a similar notice also in v/riting left at the bankrupt's usual place of abode. This last-mentioned notice is in the Notice to form of a summons (6) from the commissioners to the ^^ ^" bankrupt, requiring him to surrender, — which, if he is in prison, must be personally served upon him. (7) In some cases the Lord Chancellor has ordered the ad- When ad- vertisement to be suspended, where the party will swear ^^''t.nt' sus- that he is really solvent, and has committed no act of pended, bankruptcy (4); though in one case the advertisement was ( 1 ) Ex parte Beale, 2 V. & B. 29. ings, were first introduced by the 1 Rose, 140. 4&5Ann. c. 17. (2; Ex parte Perrin, Buck. 510. (5) See Section 112. (3) Ex parte Stead, 1 G. & J. (6) See Vol. II. 301. (7) Section 112. (4) Section 25. The notice in (8) Ex parte Foster, 1 Rose, 51. the Gazette, and the three meet- 17 Ves. 414. Ex parte Proston, 142 OF OPENING THE COMMISSION. [Ch. 6. As to bankrupt's surrender. Provi- sional assignee. Warrant to the messenger. Stayed with some hesitation, upon the applieation of a cre- ditor, accompanied even with the consent of the petitioning creditor. (1) But such an order will only be made, where, on inspection of the proceedings, no bankruptcy is found ; — or, where, under a Country commission, it is necessary to give an opportunity of producing the evidence. (2) The bankrupt, if he chooses, may surrender at the meeting to open the commission, (without waiting for any of the public meetings,) for the purpose of obtaining an earlier protection from the commissioners. (3) If an extent is apprehended against the bankrupt's effects, or it is intended to carry on the trade, the commis- sioners may at this meeting appoint a Provisional Assignee of the bankrupt's estate (4<), — whom, however, it is the practice to remove at the subsequent meeting for the choice of assignees. But a provisional assignment ought not to be executed without necessity, — for it will not in such case be allowed in the bill of costs. (5) When the commissioners have adjudged the party bank- rupt, they issue their warrant to the messenger under the commission, for the immediate seizure of all the bankrupt's personal estate and effects. (6) As the power and authority of this officer have been considerably enlarged by the pre- sent statute, and as various rights and duties are connected with, the office, it has been thought better to devote a separate chapter to the consideration of this particular subject. (7) 1 Rose, 259. Ex parte Fletcher, Ibid. 337. In re Lewis, 2 Rose, 59.; and see 17 Ves. 513. (1) Ex parte Ogilby, 1 G. & J. 250. (2) Ex parte Tarleton, 1 9 Ves. 464. (s) Ex parte Wood, 18 Ves. 1. 1 Rose, 46. (4) Section 45. {5)^x\)?iTteM'Williams, \ Madd. 141.; and see post. " Assignees." (6) Section 27 ; see Vol. II. for the form. (7) See post, Chap. VIII. 14-3 i CHAP. VII. OF THE COMMISSIONERS. 1. Of their general Jurisdiction. 2. Of their Power over the Bankrupt. 3. Of their Power over the Bankrupts Property. 4. Of their Power over other Persons. 5. Of the Protection and Indemnity of Witnesses, and other Persons attending the Commissioners. 6. Of the Custody of the Depositions and Proceedings. 7. Of Actions, and other Proceedings, against the Commis- sioners. Section I. Of the general Jurisdiction of the Commissioners. 1 he jurisdiction of the Commissioners is derived from the Nature of Lord Chancellor, by a commission under the Great Seal, — their juns- and is, (like that of the Chancellor himself) as far as it ex- tends, both equitable and legal ; for they have full power and authority to act in many cases according to their dis- cretion, besides being bound to act in other cases by the strict directions of the statute. There were formerly seven. Number and sometimes nine(l), commissioners in each commission; but for a long time past the number has been limited to five, who are all appointed and removable at the pleasure of the Lord Chancellor. The place of a commissioner is not one known to the law, (as Mr. Christian supposes) — but each commission is a particular authority and delegation ; (1) 1 Mont. 95. of commis- sioners. 14,4 OF THE COMMISSIONERS. [Ch. 7. General Jurisdic' tion. As to power of imprison- ment. No power to commit for a con- tempt ; or for pu- nishment ; not a court of justice. and the appointment of particular lists in the metropolis is a mere arrangement, arising from the personal acts of those who have held the great seal. The number of lists may be extended, or diminished, at the chscretion of the Lord Chancellor; and indeed, so recently as 1792, a new list was added by the then Lords Commissioners. Before the commissioners are capable of acting in the execution of any of the powers and authorities vested in them by the com- mission, they must (as we have seen(l)) take and admi- nister to each other the oath of qualification, the form (2) of which is given in the statute. (3) In certain cases the commissioners have power to issue process of imprisonment; but this power is intended not so much to punish the party, as to compel an answer (4-) to questions put by them to the bankrupt and Others, for the discovery of the estate and effects; — and the process they issue is in the nature of process for contempt. But they have no power given them of committing generally for a contempt. Thus, in the case of any person being guilty of riotous con- duct in their presence, to the obstruction of their proceed- ings — they are not empowered to commit the person for the contempt, but only to order him to be taken before an alderman, or justice of the peace. (5) They have indeed no power of committing for punishment^ — for they are not considered as a court ot justice (6) — and the cause of their commitment is traversable. They are in no statute, or legal proceeding, denominated Judges ; and the only au- thority countenancing such an idea is that of Sir Edward Coke, — wlio entitles the sixty-third chapter of his fourth Institute, " The Court of the Commissioners upon the Statute of Bankrupts." (7) In the context of the chapter (!) Ante, 138. (2) And see Vol.11. (5) Section 21. (4) And see Miller v. Seare, 2B1. 1141. Ferlcin \. Proctor, 2 Wils. 384. (5) l&i2 G. 4, C. 115. (6) Kinder v. Williams, 4 T. R. 378. 1 Ld. Raym. 467. 2 Black. 114.?. 8 Co. 121. (7) The statute of 1 & 2 G. 4. c. 115., for building offices for the meetings of the commissioners, di- rected the buildings, when com- Sect. 1.] OF THE COMMISSIONERS. Ii5 he does not say that they are Judges, but that their au- General thority is by commission under the Great Seal ; and that as '^"q"* ^' their jurisdiction and power is by force of acts of parlia- ment, they ought to be pursued, or else they are subject to the action of the party grieved. But the Commissioners ai'e a tribunal sufficient to have As to pro- their witnesses protected (1) ; though in this case it is J^ng"^ rather a privilege than a protection ; for ihei/ have not power attending to discharge a witness who is arrested during his attendance *^"^™' on them ; but the witness is compelled to apply by habeas corpits to one of the superior courts. They have power, however, to administer an oath; and any person falsely swearing before them may be indicted for perjury. (2) Where the directions of the statute for the conduct of Discre- the Commissioners are plain and positive, they ought to be poweTnot strictly pursued; — but where any disaeiiofi is vested in them, subject to — ihat is not subject to control. Thus the Court of King's '^'^"^^'^ • Bench will refuse a mandanms to Commissioners of bank- rupt, to certify the bankrupt's conformity to the Lord Chan- cellor; the legislature having vested a discretion in the Commissioners in that respect, with which the Court will not interfere. (3) And where the Lord Chancellor sends back to them the bankrupt's certificate, for the purpose of letting in other creditors, the Commissioners are not confined to that object, nor bound by the original certificate ; but the whole is again open to their judicial (4) discretion. So, in the examination of a person as to any portion of the bank- rupt's property, which may have been received by him, — they are to determine, at the hazard of an action, whether the questions are such as the person is bound to answer ; and the Lord Chancellor will not interfere, by making an order upon them, to enforce answers to any particular questions (5) to be put to such person. pleted, to be called the " Court of (l) 2 Black. 1142. Commissioners of Bankrupt;" but (2) Section 99. this of course applied only to the (3) Ex parte King, 7 East, 92. designation of the place, and not (4) Ex parte A'i/jg, 15 Ves. 126. to the power of the persons who (5) Ex parte Farr, 9 Ves. -513.; were to sit there. and see post, 157, lie OF THE COMMISSIONERS. [Ch. 7. General jurisdic- tion. Power to expunge a proof. Commis- sioners' fees. When bound to attend and act; By the 60th section of the new statute, the Commis- sioners are now empowered to expunge, or reduce, the proof of a debt under the commission, — an authority which they did not possess before, and which, in many cases, may be beneficially exercised, with respect to saving the ex- pence of an application to the Lord Chancellor for that purpose, — which last proceeding was always necessary previous to the recent statute. The Commissioners are entitled to receive the fee of 20,?. each for every meeting, and the like sum for every deed of conveyance executed by them, and for the signature of the bankrupt's certificate. (1) Where a commission is executed in the Country, every commissioner (who is a barrister) is entitled to a further fee of 205. for each meeting ; and in case he resides at a distance of seven miles or more from the place of meeting, and travels such distance to the meeting, he may receive a further sum of 20^. But no Commissioner is entitled to any allowance for disbursements or travelling expenses (2), nor indeed has the Chancellor any power to make an order for allowing such expenses. (3) And at every meeting under any Country commission, so many of those commissioners as are barristers, and are willing to attend, not exceeding three, are to be the acting Commissioners, and entitled to their summonses and fees, in priority to any of the other commissioners named in the commission. (4) If any Commissioner shall receive a further sum, or shall eat or drink at the charge of the creditors, or of the estate of the bankrupt, or if he shall order any such expense to be made, he is dis- abled from ever acting again as a Commissioner. (5) The solicitor to the commission is liable to the Commissioners for their fees. (6) Those Commissioners who consent to act, are bound to attend a meeting when summoned for that purpose (7), and (1) Section 22. (2) Ex parte Harbin, 1 Rose, 59. Ex parte Griffith, 2 Rose, 342. (5) Ex parte Butter, 1 Mont.G38. (4) Section 23. (5) Section 21. ; and see Ex parte Halliday, 1 Vin. 77. pi. 3. (6) Ex parte Griffitlis, 2 Rose, 342. (7) 1 Mad. GO. Sect. L] OF THE COMMISSIONERS. H7 must proceed upon the principle of the commission being General. valid. ( 1 ) They are bound also to act throughout the J'j^^^^^- . ° tion. proceedings in every matter, accordmg to the best of their judgment and discretion ; and though the Lord Chancellor will assist them, in case of need, with the weight of his au- thority, yet he will not encourage their declining to act in any matter, merely for the purpose of having a petition pre- sented to him, to obtain his opinion on the subject. (2) But when their wherever the legislature has given authority to the Commis- ^"thority . , ^ . . , ^ • 1 1- , 1- will be sioners, without giving them power to punish disobedience assisted by to that authority, or to make the authority available for its that of the purpose, the Great Seal will lend the aid of its general ggj jurisdiction, to execute and enforce the provisions of the legislature- (3) The Commissioners are, from the nature of their trust. Incapable incapacitated from purchasing any of the bankrupt's pro- chash'"^ perty, either for themselves or others. (4) And this dis- bankrupt's ability attaches to a Commissioner, who has not even acted P'^^P^'^'^yj under the commission ; but if he has obtained the consent except of the creditors at a general meeting called for that pur- order. ' pose, it seems, he may then become a purchaser under an order of the Lord Chancellor. (5) The same person cannot be solicitor and commissioner Solicitor, under the same commission (6); and if any creditor of the ^[(■or'^'c'n- bankrupt acts as a Commissioner (7), the commission will not be a be superseded. ^?'^'^''- ^ , , sioner. An appeal lies from the determination of the Commis- Appeal. sioners to the Great Seal by petition (8); and the Lord (1) 16 Ves. 164. (5) Ex parte Harrison, Buck. 17. (2) 15 Ves. 590. It appears from (6) Ex parte Ward, Sel. Ca. Ch. several old cases in the books, that 46. commissioners were formerly in the (7) Ex parte Prosser, 2 Rose, practice of asking and receiving the .570. Ex parte Crundwell, 2 Mad. opinion of the Court of Common 292. Ex parte Siori/, Buck. 70. Pleas. 2 Christ. B. L. 9, 1 0. Ex parte Matheivs, 1 G. & J. 1 64. ; (3) Ex parte Woolley, 1 G. & J. and see General Order, 25th July, 395. 1817. (4) Ex parte Bennett, 10 Ves. (8) Bromley v. Goodere, 1 Alk. 381. 77. L 2 148 OF THE COMMISSIONERS. [Ch. 7. General jurisdic- tion. Costs. When functi officio. Authority not deter- mined by death of the king, or the bankrupt. Chancellor has power to remove them for misconduct. He will not, however, upon a petition against them, order them to pay costs, unless in respect of conduct out of the course of their duty as Commissioners (1); and when they are made parties to a petition without sufficient grounds, they will then be entitled to costs. (2) When the Commissioners have once executed an assign- ment of the bankrupt's estate, and have afterwards given him his certificate, they cannot make a subsequent assign- ment, for they are then, as to this mzitiev, fimcti officio. (3) The authority of the Commissioners is not determined, as we have seen, by the death of the King, nor by the death of the bankrupt after adjudication ; in the latter case they are expressly empowered to proceed in the com- mission, as if the bankrupt were still living. (4<) Authority to compel surrender ; Section II. Of the Power of the Commissioners over tlie BanJcnipf. As to the Examination of the Bankrupt previous to Commitment, see post, Ch. XIII. As soon as the party is declared a bankrupt, the Com- missioners are empowered to call upon him to surrender himself within the time limited by the statute. But if they have reason to apprehend that he is embezzling his effects, or preparing to depart the kingdom, they may summon him to appear before them to be examined (5) immediately. And in case the bankrupt disobeys their summons, (which the Commissioners may now issue at any time, and for any purpose, whether he has obtained his certificate or not,) they may, if he has no lawful impediment made known to and allowed by them, by warrant under their hands and (1) Exparte &criA, l4Ves. 104. (3) Jacobson v. Williavis, I P, ISVes. 295. Wms. 386. (2) Ex parte Steele, 16 Ves, 161. (4) Section 26. (5) Ex parte Ljwgoorf, 1 Atk. 240. Sect. 2.] OP THE COMMISSIONERS. 149 seals, authorize any person to arrest him and bring him Power before them. (1) Upon the appearance of the bankrupt lankrupt. before them, they may examine him upon oath, either by word of mouth, or on interrogatories in writing (2), touch- gxalnbe* ing all matters relating to his trade, dealings, or estate; or bankrupt, which may tend to disclose any secret grant, conveyance, or concealment of his lands, tenements, or effects. The Commissioners have in this examination a duty imposed upon them, as well as an authority, to get out an account and discovery for the benefit of the creditors. (3) The bankrupt's answers should be taken down in writing, and he is required to sign them. If the bankrupt refuses to and com- be sworn, or to answer any questions put to him by the P"^ J^\ Commissioners, or does not fully answer to their satis- to answer, faction, or refuses to sign his examination, — they may ^^' then by their warrant commit him to prison, without bail, until he shall submit himself to be sworn, and make full answer (4) to their satisfaction to such questions as shall be put to him, and sign his (5) examination. They must, however, in every such commitment for refusing to answer, or not fully answering, any question, specify the question and answer in the warrant of commitment. (6) As the Commissioners have but a special authority, in Liability the commitment of the bankrupt and other persons to ""^^ ^j|_ commit- ment» {\) Section oG. Formerly if the 202. Anon. 14 Ves. 450.) Both bankrupt disobeyed the summons these proceedings, however, will of the Commissioners, they could now be rendered unnecessary, not issue their own warrant against (2) Section 36. him, but were obliged (under the (.3) T'oy/ojVcase, 8 Ves. 328. 5G. 2. c. 50. s. 14.) to certify his (4) The answer must be full in disobedience to a judge, or justice this sense, — thatitmustbereason- of the peace, in order to obtain ably satisfactory to the mind that from them a warrant for his appre- is to decide. (Per Lord Eldon, hension. (And see Ex parte Hunt, Taylor'% case, 8 Ves. .^Sl.) 2 J. & W. 560.) And when the (5) And see iJexv. Parrot/, Burr, bankrupt had passed his last ex- 1122. Taylor's case, 8 Ves. 528. amination, it seems to have been Ex parte iVow/att, 11 Ves. 511. the practice, to apply to the Lord (6) Section 59.; and see post. Chancellor for an order on the Ch. XIII. " Of the Commitment bankrupt to attend the Commis- of the Bankrupt." sioners. (Ex parte Bradley, 1 Rose, L 3 150 OF THE COMMISSI OMEUS. [Ch. 7. Power over the bankrujit. Warrant ofcommit- ment. Bankrupt not bound to crimi- nate him- self. When commis- sioners bound to commit. prison (1), they must be careful not to exceed it; for an action will lie against them in case of an illegal commit- ment. (2) But to prevent their being perpetually harassed with actions, the legislature has in a great measure pro- tected them, in case of an innocent mistake, by enabling them to tender amends (3), and to pay money into court in any action brought against them, — as well as by giving them double costs (4), in case of a verdict being found for them. As they are not invested, however, with an un- limited authority of committing whom and for what they please, any warrant of commitment which they feel them- selves called upon to issue, should pursue the words of the act of parliament, and appear on the face of it to be within the scope of their authority ; for the superior courts have been very strict in their construction of the powers thus vested in them by the legislature. (5) They have not power to commit the bankrupt, or any other person, for not answering a question, the answer to which would directly criminate himself (6) ; but otherwise, if it would only tend to show that he had done something criminal. (7) If the bankrupt, however, refuse to account for any jpart of Ids effects^ on the ground that his answer to the enquiry of the Commissioners would criminate himself, such refusal subjects him to a commitment. (8) If the Commissioners think that the bankrupt has not ansvoered satisfactorily upon Iiis examination, they are bound to commit him ; for they are not obliged to give credit to any absurd or improbable account, merely be- cause he has the effrontery to swear to it. (9) Indeed there are no technical rules by which cases of this kind (1) Bracy\ case, 1 Salk. 348. (2) And see post, " Actions." (5) Section 45. (4) Section 44. (5) i?racy s case, Comb. 3 91. /if ej: V. Nathan, 2 Str. 880. Hollings- head's case, 2 Ld. Raym. 851. 1 Salk. 551. Brarr/ v. Harris, 5 Mod. 309.; and see post, " Of the Commitment of the Bankrupt." (6) 5 Mod. 509. Comb. 391, (7) Ex parte C'ossens, Buck. 531. (8) Ex parte Oliver, 1 Rose, 407. (9) 6 T. R. 1 20. Doswell v. Im- pey, 1 B.&C. 165. Sect. 2.] OF THE COMMISSIONERS. 151 can be determined ; but the question in each particular Power case is, whether the answers given by the bankrupt be °hankru t sufficient to satisfy the mind of any reasonable person. ( 1 ) The bankrupt, however, after such commitment may be When discharged, upon his answering satisfactorily to the com- ''^"'^J'^P' missioners at a subsequent time — or, upon his answer dis- already given being deemed satisfactory by the superior ^"^■g^''> jurisdiction, before which he may be brought by writ of habeas corpus. (2) But though the bankrupt should be without afterwards discharged by habeas corjms, on the ground of gi^™^s*" the Court thinking his answers satisfactory', an action of being trespass will not lie against the commissioners. (3) For "^°'^- in the exercise of their discretion, under the sanction of an oath, they are required to commit, if the answers of the bankrupt be not to their satisfaction. The Commissioners cannot delegate their authority to Cannot any other persons to examine the bankrupt, without his °^ .8^^^ consent; for such persons are incompetent to exact any authority, submission from him, upon which the commissioners can commit. (4) It seems somewhat doubtful whether the Commissioners As to being should be influenced by extrinsic evidence in committinfif the J"""^"S^" *^ . . . . * by extrin- bankrupt for not answering satisfactorily ; but if they are so sic evi- influenced, the evidence should be fully read over to the "^"^^• bankrupt, before they can call upon him for an answer to the questions proposed to him in his examination. (5) (1) Ex parte Noivlan, 6 T. R. ('i)Ex. parte Cassidt/,2Rose,219. 118. llVes. 511. Tai/lor' s case, 19Ves, 324. 8 Ves. 328. (5) Crou'ley's case. Buck. 264, (2) 1 Rose, 407. 2Swanst. 1. (5) Doswell V. Impcy, 1 B. & C. 163. ; and see title " Actions." L 4 152 OF THE COMMISSIONERS. [Ch. 7. Power over all the real and per- sonal pro- perty. Warrant of seizure. Section III. Of the Tffwer of the Commissioneis to seize the Bankrupts Property. And see further upon this head, " Messenger" " Assignments'^ and " Assignees."" The Commissioners have, by tfie fwelfth section of the new act, full power and authority to take such order and direction, as is afterwards particularly specified in the act, with all the bankrupt's lands, tenements, and heredita- ments, both within this realm and abroad, as well Copy or Customary-hold, as Freehold, which he had in his own right before he became bankrupt, as also with all such interest therein as he may lawfully depart withal, and with all his Money, Fees, Offices, Annuities, Goods, Chattels, Wares, Merchandize, and Debts, wheresoever the same may be found or known, and to make sale thereof as directed by the act, or otherwise order the same, for satisfaction and payment of the creditors of the bankrupt. This clause is the foundation of the powers, which the commissioners possess over the bankrupt's property. As soon as the party is declared a bankrupt, the com- missioners are then empowered to issue their warrant (1), under their hands and seals, for the seizure of all the bank- rupt's effects, books, papers, or writings, wherever they may be, either in England, Scotland, or Ireland ; — and their officer, in order to make such seizure, may break open (2) any house or place where the bankrupt, or any of his property, shall be reputed to be. If any of the efTects are suspected to be concealed, a search-warrant (3) from a magistrate may be obtained and executed in the same way, as a search-warrant for stolen property. And when any (1) Section 27. open any house, except the bank- (2) The commissioners could rupt's. (2 Show, 247.); and see not formerly justify the breaking post, 169. note (2). (3) Section 29. Sect. 4.] OF THE COMMISSIONERS. 153 of the property is in Ireland or Scotland (1), the warrant Poivcr • OVGT tilG must be first verified in the manner dii'ected by the statute, bankrupt's and indorsed, before it is executed, by a Judge Ordinary, property. or justice of the peace, in the county where it is intended to be executed. The property and the person should not both be taken under one warrant, but there ought to be two separate warrants for this purpose. Section IV. Of the Poxver of the Comrnissioners over other Persons than the Bankrupt. The authority of the Commissioners is, by the new Authority statute, more complete and extensive than what they ^^ ^^^"^ * 1 • • • 1 1 warrant, formerly possessed, in regard to requiring the attendance of witnesses and other persons, to give evidence upon oath before them of any matter relating to the bank- ruptcy. (2) They may, now, not only summon witnesses to depose, as to the trading and the act of bankruptcy, and call for the production of any books and documents neces- sary to establish the one or the other, — but they may also, in case of disobedience to the summons, issue a ^warrant to compel (3) their attendance. And the witness will incur the same penalty for refusing to be sworn and examined, for not fully answering, for refusing to sign his examin- ation, or for not producing books or documents, as is provided with respect to persons summoned after adju- dication. (4) (1) Section 28.; and see post, comjoe/ the attendance of witnesses, title " Messenger." to prove the act of bankruptcy and (2) Section 24. the tradinjr, without obtaining an (3) This power was first given order of the Lord Chancellor for to the commissioners by the tern- that purpose. (Ex parte Lund, porary act of the 4& 5 Ann. c. 17. 6 Ves. 781. Ex parte Higgins, but it was not again conferred upon 1 1 Ves. 8. Ex parte Jones, 1 Rose, them before the 5 G. 4. c. 8 1 . ; pre- 39. &c.) vious to which last-mentioned act, (4) Section 33. ; and see post, the commissioners had no power to p. 1 54. et seq. 154 OF THE COMMISSIONERS. [Ch. 7. Power over other persons. Witness alleging himself a creditor. Trustees bound to produce deed. Where no excuse for non-at- tendance. Persons suspected to have bankrupt's property, or to be indebted to bank- rupt, &c. Although a party summoned as a witness alleges that he is a creditor, and therefore not competent as a witness, it is no preliminary objection to his being examined by the Commissioners, — for the result of the examination may establish, that he is not a creditor. ( I ) Trustees, also, in a deed of assignment of all the bankrupt's effects, are com- pellable to produce it before the Commissioners, for the purpose of proving thereby an act of bankruptcy (2); though the petitioning creditor, as we have seen, if he has acted under such a deed, cannot avail himself of it for such purpose. A witness is not justified in refusing to attend the Commissioners to prove the act of bankruptcy, under a joint commission against two partners, because he has already attended for the same purpose, under separate commissions previously issued against them. And where, in such a case, the petitioning creditor under the separate commissions refused to disclose the person who proved the act of bankruptcy under those commissions, the Lord Chancellor inspected the proceedings under the separate commissions, and ordered that person to attend the commis- sioners under the joint commission at the peril of costs. (3) The Commissioners are also empowered, after the party has been adjudged (4) a bankrupt, to summon before them any person suspected of having any of the bankrupt's pro- perty in his possession ; and their power in this respect is not confined to persons claiming a beneficial interest in such property; for the mere detention of the property, whatever may be the motive, is sufficient to give the Com- missioners jurisdiction. (5) They may also summon any one who is supposed to be indebted to the bankrupt, — as well as any person whom they believe capable of giving information (6) concerning any part of the bankrupt's (1) In re Gooldie, 2 Rose, 330. (2) Ex parte Cawkwcll, 1 Rose, 513. Ex parte Tieacher, Buck. 17. (5) Ex parte Gardner, 1 Ves. & B.74. (4) Section 53. (5) Ex parte Anderson, Buck. 397. (6) The commissioners could not before enforce the attendance of any persons, except those suspected of having the bankrupt's property, Sect. 4.] OF THE COMMISSIONERS. I55 estate, or any fictitious debt, or any spurious book or Power document, or other transactions material to the full dis- ^^"' °^''^'' persons. closure of the dealings of the bankrupt ; and they may re- quire the production of any books or documents, which raav .yf*" ^° appear to them necessary to the venncation ot the depo- books, &c.j sition of such person, or to the full disclosure of any of the matters, which they are authorised to inquire into. And if to issue any person so summoned neglects to come before them, ^^'"^^"'^ ^° 1 • 1 .- I • T 1 /-. • • compel at- havmg no lawiul nnpediment, the Commissioners may, by tendance. warrant under their hands and seals, direct him to be apprehended and brought before them to be examined. And this may be done after issuing one summons, thouo-h it was formerly thought necessary to issue two sum- monses before the warrant. ( 1 ) The propriety of granting the warrant, being an act of discretion, must be deter- mined upon by the Commissioners acting together at the time; but the mere act of signing it may be done by them separately. (2) They have also power to examine (3) any person upon Power to oath, either by word of mouth, or by interrogatories in ^''^'"^"^ . , 11,. persons; writing, concerning the person, trade, dealings, or estate of the bankrupt (4); or concerning any act or acts of bankruptcy by such bankrupt committed, and to reduce into writing the answers of such person, and compel him to sign them. And if any person refuse to be sworn, or and to to answer any lawful questions put to him by the commis- commit in sioners, touching any of the said matters — or shall not fully fusal to answer to their satisfaction — or shall refuse to sign his ex- answer, amination — not having any objection allowed by the com- ^' missioners ; or shall not produce any books or documents or of being indebted to his estate ; (2) Battye v. Greslcy, 8 East, (Ex parte Levett, 1 G. &J. 185. ; 319. and see ex parte Woolley, ibid. (s) Section 34. 395.) and their jurisdiction in this (4) The bankrupt, whose estate respect was only supported, by ap- is sought to be charged by an ex- plying to the Lord Chancellor for amination before the commis- an attachment against those who sioners, has a right to be present made default. 14 Ves. 449. during the examination. (Ex parte (l) Dyer v. Missing, Bl. 1055. Eardlcy, 1 Mont. Dig. 115,) 156 OF THE COMMISSIONERS. [Ch. 7. Power over other persons. Incidental right of examin- ation. in his custody or power, which he was required to pi'oduce, and to the production of which he shall state no objection allowed by the commissioners, — in any of these cases, the commissioners may, by warrant under their hands and seals, commit him to prison without bail, until he shall submit himself to them to do what they had previously required of him. The warrant of commitment should, as in the case of committing the bankrupt, pursue the words of the act of parliament (1) ; and should also specify all the questions and answers, as far as they are applicable to the commitment. And in case an habeas corpus is brought by the person committed, and there shall appear merely an insufficiency in the^rm of the warrant, the Court, or Judge, may re-commit the party until he shall conform, unless it be shown that he has fully answered, or that he had a sufficient reason for refusing to do what was required of him. And the Court, or Judge, may look at the whole of the examination, in order to consider whether the answers of the party were satisfactory or not. As the Commissioners are authorised to examine a wit- ness concerning the trading, or the act of bankruptcy, or the estate and effects of the bankrupt, they may inci- dentally to this power examine him also respecting other individuals, through whom they may be likely to obtain information on those points. Therefore, where a witness was asked questions, as to when and where he last saw the bankrupt's wife, it was held, that such questions were both legal and material, and that the commissioners were jus- tified in committing him for giving unsatisfactory answers to those questions. (2) The true criterion of judging as to the propriety of the commitment, is to consider all the questions and answers collectively — and then to say, whether the "johole examination is satisfactory or not. Therefore, though some of the answers, when taken alone. (1) Rex V. Nathan, 2 Sir. 880. (2) Ex parteFoge/, 2 B. & A. Salk.55I. 2Ld. Raym. 851.; and 219. see ante, lis. Sect. 4.] OF THE COMMISSIONERS. 157 may be considered satisfactory, — yet this is no objection to Power a warrant committing the party, till he should make full ^f^sm^'^^ answers to all the questions put to him. (1) The Lord Chancellor will not in general intrude upon As to re- the discretion of the Commissioners in the examination of ^traimng 111 T -1 the ex- witnesses — although, upon extraordmary occasions, he may amination limit their examination to a particular mode, or to par- of the I . rr>, 1 • • p 1 1 r- COmiuis- ticular pouits. Ihus, the exammation or the mother ot siouers. the bankrupt was, on petition, ordered to be limited to her son's trading ; but Lord Hardwicke refused to restrain the Commissioners, from asking any question that might be relevant thereto. (2) And when a banker, who had been summoned before the Commissioners, instead of attending them, petitioned the Lord Chancellor that the Commis- sioners might be restrained from asking him certain ques- tions, the petition was dismissed on the opening of the petitioner's counsel — Lord Hardwicke saying, that he would not limit or restrain Commissioners in their examination ; for if he did, it would be attended with expense and in- convenience from other applications of this kind ; and that he would not presume, that they would ask trifling and im- material questions. (3) It was formerly holden, that a person suspected of de- Party taining the bankrupt's effects, and who, before the com- bound to mission issued, had obtained some goods from the bankrupt thout^h it in discharge of his own debt, was not bound to answer, expose his whether any of the bankrupt's effects had come to his tiye title •" hands before the issuing of the commission ; — and that it was sufficient for him to swear generally, that he had none of the estate of the hanJcrupt in his hands. (4}) But it has been since ruled, that a witness is bound to give an account of what he knew of the bankrupt's effects, as well before, as after, the bankruptcy ; and Lord Erskine said, that Com- (1) Ex parte Vogel, 2 B. &. A. (3) Ex parte BImd, 1 Atk. 205.; 219. and see ante, 145. (2) Ex parte Parsons, 1 Atk. 204. (4) Jeakil's case, 3 Keb. 837, 15S OF THE COMMISSIONERS, [Ch. 7. Power over other persons. but not compelled to crimi- nate him- self; or to de- stroy his own pro- ceedings. To what bankrupt's wife may be examin- ed. missioners, of their own authority, may examine parties, and make them confess the infirmity of their title. (1) Notwithstanding, however, a person suspected of having the bankrupt's property in his possession is bound to answer questions, thougli the answer may expose his own defective title, he is not (any more than the bankrupt) compelled to do so, if the answer w^ould dh-edly criminate himself (2); though he is not excused, if the answer would only TEND to shew, that he had done something criminal. (3) If a witness, however, do unguardedly answer questions to which he might have demurred, his answers may be adduced in evidence against him, for all purposes to which they are legally applicable. (4) And the Commissioners vf\\\ not be restrained from examining parties, upon a mere allegation, that the object of the examination is to procure evidence against them, as to penalties incurred by gaming. (5) But the Commissioners under a joint com- mission cannot compel the petitioning creditor to a prior separate commission to attend them, in order to give evidence in support of the subsequent joint commission against the same party and his co-partner ; for this would be compelling him to be a witness to destroy his own proceedings. (6) The Commissioners are also empowered to summon before them the "iSoife (7) of the bankrupt, and examine her for the purpose of discovering such part of the bankrupt's estate and effects, as may be concealed, kept, or disposed of, either by herself or by any other person ; and she will incur the same penalty for refusing to be sworn and examined, or for other disobedience to the authority of the Commissioners, as other persons are liable to in this respect. But, though the wife may be examined by the Commissioners, as to the bankrupt's (1) Ex parte Herbert, 13 Ves. 189. (2) 5 Mod. 309. Comb. 391. (3) Ex parte Cossens, Buck. 531. (4) Smithy. Beadnell, 1 Camp. 30. (5) Ex parte Burlton, 1 G. & J. 30. (6) Ex parte Stones, i G. & J. 7. (7) Sectional. 23 Sect. 4.] OF THE COMMISSIONERS. 159 jnoperty^ they have no power to examine her on any PoweT matter relating to the act of bankruptcy : for, bv the com- ''^'^' "^^'^'' *^ t- ./ ' 7 J persons. mon law, a wife cannot be a witness either for or against her husband; and this special authority given to the Com- missioners, which breaks in upon that rule of law, is not to be extended beyond what the statute gives them. (1) It has been also considered questionable, whether the bank- rupt's wife is admissible to prove payments in contemplation of bankruptcy. (2) The Commissioners may likewise examine upon oath, Creditors, either by word of mouth, or by interrogatories in writing, every person claiming to prove a debt (3) under the com- mission, and may require such further proof, and examine such other persons in relation thereto, as they shall think fit. And it seems, that the power of the Commissioners in the examination of a creditor of the bankrupt, in respect of a debt which he seeks to prove, is not different from that which they may exercise, in the examination of other persons concerning the bankrupt's property ; and that they may compel him to produce books relating to his trans- actions with the bankrupt, in the same way as they can enforce the production of books from other persons — or, if they choose, by the more indirect method of refusing other- wise to receive the proof of his debt. (4) The Commissioners may also at all times summon the Assignees, assignees (5) before them, and require them to produce all books, &c. relating to the bankruptcy, — and, in default of their attendance, may issue their warrant to enforce it; and they have the like power of commitment with respect to them, as with respect to other persons. As the Commissioners cannot issue subpoenas, they must, upon any collateral questions, or other matters coming before (1) Ex parte James^ 1 P. Wnis. (4) Ex parte Woollet/, 1 G. & J. 611. 398. (2)lEsp. 67. {5) Section 10\. (3) Section 45, ICO OF THE COMMISSIONERS. [Ch. 7. Power them, for inquiring into which they are not empowered to over other persons. issue their summons, proceed by affidavit. ( 1 ) Witnesses privileged from ar- rest; so a cre- ditor at- tending to prove. Where arrest amounts to a con- tempt. Section V. Of the Proteciioti a?id Indemnity of Witnesses^ and other Persons, attending the Commissio7iers. Witnesses summoned to attend Commissioners of Bank- rupt have the same privilege, as those attending Courts of Justice, namely, the exemption from arrest eundo, redeundo, et viorando.{2) And it is not material, whether the witness be summoned in writing, or verbally, by the messenger (3), — provided the Commissioners afterwards adopt the verbal summons. The privilege also extends to persons who attend voluntarily, on a mere application to them for that pur- pose (4<); or who, on their own importunity, are summoned by the Commissioners (5) ; as well also as to one who at- tends, even without any application, and requests to be ex- amined as a witness, — provided the Commissioners signify their intention to do so; but it is a question whether, in this last case, such person would be entitled to protection eundo. [Q) A creditor, also, who attends to prove his debt, has the same privilege, as a witness who is summoned before the Commissioners ; for he is as much entitled to protection, as any party attending the prosecution of his suit in a Court of Justice. (7) If the arrest of the witness, or the party attending, amounts to a contempt, the application for his discharge is made to the Lord Chancellor upon motion {8); the order ( 1 ) Ex parte Thistletvood, 1 9 Ves. ( 6) Ex parte Bayne, 1 Rose, 451. 250. 1 V. &B.316. (2) Ex parte Stow, 2B1. 1142. (3) Arding v. Flower, 8 T. R. 534. (4) Ibid. Ex parte King. (5) Ex parte Kerney, 1 Atk. 54. V. cc o.aib. (7) Ex parte List, 2 Rose, 24. Ex parte King, 7 Ves. 316. Ex parte Bryant, 1 Mad. 49. (8) Anon. 1 Rose, 230. The Court of King\ Bench have re- 8601.5.] OF THE COMMISSIONERS. 161 upon which is entitled in the bankruptcy (1); and the Protection Lord Chancellor administers the oath by the register, and '^ '^' " •z o ' 71 esses. examines the party himself.(2) The party arrested may also proceed by process against the officer and solicitor for the contempt. (3) If the arrest does not amount to a con- Where it tempt, then the proper course is to apply by petition ; and ""^ the Chancellor, upon an affidavit of the facts, will order him to be discharged. And in case of a detainer being lodged after the arrest, that will also be set aside, if the original arrest is bad. But in both cases, the arresting and the detaining parties will have an opportunity of being heard against the petition, or the motion for the discharge. (4) With respect to the costs of an application to be dis- As to the charged from such an arrest, they will be ordered to be paid ^°^^^. ^^ by the officer or person causing the arrest, — but will at the cation for same time in general depend upon, whether a contempt was discharge, intended, or not, by the party arresting ; they have been or- dered, where the witness was arrested by the bankrupt. (5) Where the crown is the arresting creditor, the order for discharge must be upon the gaoler. (6) If the application Where for the discharge only affects the creditor arresting, the l^^l^^ ^^' party may be forthwith discharged ; but where there are other detainers, the Court must hear the persons by whom they are lodged, for the purpose of ascertaining, whether they are founded upon the original arrest. (7) Every witness summoned to attend before the commis- Tender of sioners, must have his necessary expenses (8) tendered [to ^^^"^,^^^J him, in like manner as is required, upon service of a sub- expenses. fused to grant such an application, (4) Ex parte King, 7 Ves. 515. on the ground, that that Court Ex parte Doidevy, Ibid. 318. Ex was not the Court of which the parte Byne, iV. &B. 316. Ex contempt was committed. Kinder parte Ross, 1 Rose, 360. Ogfe's V. Williams, iT.R. 377. case, 11 Ves. 256. Castle's case, (1) 11 Ves. 556. 16Ves.413. 16Ves.413. (2) 16 Ves. 413. Ai//elt' s case, (5) Ex parte Bt/nc, supra. cit. ibid. Gascoigne's case, 14 Ves. (6) Ex parte Russell, 1 Rose, 183. 278. (3) Ex parte Kerney, 1 Atk. 54. (7) Ex parte A't/zj?, 7 Ves. 3 1 2. Ex parte King, 7 Ves. 315. (8) Section 35. M 162 OF THE COMMISSIONERS. [Ch.7. Protection of wit- nesses. When tender un- necessary. As to right of party examined to have counsel. poena to a witness in an action at law. It is not necessary, however, upon summoning a person suspected to have any of the bankrupt's property (as it is in summoning a wit- ness) to tender him the expenses of his journey before hand, even though the commissioners may have made an order, in the first instance, for the payment of his expenses, — and the assignees have in fact offered to pay such expenses as the commissioners shall think reasonable (1) ; but he may afterwards, when his examination is concluded, be allowed such charges as the commissioners shall think fit. (2) If he is indeed without the means of taking the journey, that may be an excuse for not obeying the sum- mons, but will not invalidate the warrant of the commis- sioners to bring him before them ; and the o?ms lies on the person summoned, in all cases where he brings an action against the commissioners, to prove that he was pre- vented by a lawful impediment from attending them. (3) After a party has been examined, he may maintain assump- sit for any costs directed by the commissioners to be paid to him, although such order is merely by parol. (4) A person, who is summoned before the commissioners to be examined by them, is not entitled to the assistance of counsel, as a matter of right, but merely as a matter of indulgence on their part ; and Lord Hardwicke, upon one occasion, refused to make an order upon commissioners to permit a person so summoned to have counsel, — though he recommended them, in that particular instance, to permit it. (5) This indulgence, however, has in the present day become quite a matter of common practice, and there is no instance of its being refused. (6) If a witness is prevented by any lawful impediment from' attending the commissioners according to their summons, he ought, for his own protection, to make it known to (1) Ex parte Roscoe, 2 Rose, 345. (2) Section 35.; and see Ex parte Benson, 2 Rose, 75. Ex parte Roscoe, supra. (3) Ibid. ; and see Battye v. Gresley, 1 8 East, 319. (4) Yarker v. Botham, 1 Esp. 64. (5) Ex parte Parsons, 1 Atk. 204> (6) Eden's B. L. 82. Sect. 6.] OF THE COMMISSIONERS. Igf them, and obtain their allowance for the excuse ; otherwise a warrant will issue against him as a matter of course. Section VI. Of the Depositions, The Depositions and Proceedings taken before the Com- A party missioners are not of a public nature, but taken principally 'l^.*^ *:"" to defend themselves; no one, therefore, is entitled to a copy of his copy of them (l); and the Court of King's Bench refused disposition; the application of a party, for a copy even of his own de- position. (2) It is, however, in the discretion of the Lord but Lord Chancellor to permit, or refuse, any party to have a copy of ^'?/^"" his examination before the commissioners. (3) But where permit a a bill was brought by assignees for a discovery of the ^°P^ *° ^^ bankrupt's effects, the Lord Chancellor would not allow ttt. ' ' _ When the defendants to look into their own depositions before refused, the commissioners, in order to make their answers con- sistent (4) ; — - Lord Hardwicke observing — that as truth is always uppermost, they might put in an answer consistent with what they had already sworn in their depositions, supposing them to be true ; — and if false, they swore at their own peril. But though the Depositions and Memorandums of the Custody of commissioners' proceedings are taken in some measure for W°' 1 • • 1 1 . /- 1. 1 ceedmgs, their own protection, yet as the object of all the proceed- ings under the commission is for the benefit of the bank- rupt's creditors, the assignees (who represent the creditors) and not the commissioners, are entitled to the custody of them. (5) They are usually kept by the solicitor nominated by the assignees ; and when the production of them be- comes material for the purposes of justice, neither the so- (1) Ex parte Watson, 1 C. B. L. (.5) Ex parte Chater, Buck. 290. 105. (4) Boden v. Bellow, 1 Atk. 288. (2) Bracy\ case, 1 Ld. Raym. (5) Ex parte 5crtr//i, 15Ve8. 29,5. 153. M 2 1$.# OF TH£ COMMISSIONERS. [Cll. ?• Dcposi- licitor, nor the assignees, will be permitted to say that they °'"' are in any person's hands but their own. (1) Depositions, What con- also, upon which the commissioners have founded a report aiTofthe ^° ^^^ Lord Chancellor upon a reference to them, are pro- proceed- ceedings under the bankruptcy, and as such are to be left "^S"' in tlie custody of the assignees; but the report must be filed in the Bankrupt office. (2) And any books or docu- ments, referred to by the bankrupt on his last examination, form likewise part of the proceedings under the commis- No lien on gion. (3) But neither the solicitor to the commission, nor any officer of the court, has a lien on the proceedings for their costs or fees in any matter relating to them (4); and costs will always be given against that person who, by re- fusing to deliver them up to the assignees, drives them to an application to the Lord Chancellor to obtain them. (5) Section VIL OfActions^ and other Proceedings, against the Commissioners. The new statute has introduced several fresh regulations with respect to actions against Commissioners, affiDrding them, very properly, the same protection as that possessed The Court by justices of peace. Thus by Sectioti 40, in the event at the ^^ ^"y action being brought against the commissioners by whole of the bankrupt, or other person, for being committed by minatbn. them for refusing to be examined, or not fully answering to questions, the Court or Judge upon the trial (if required by the defendant) may, in case the whole of the examin- ation of the party so committed shall not have been stated in the warrant of commitment, inspect and consider the whole of such examination ; and if it shall then appear to (1) Per Lord Eldon. Ex parte (4) Ibid. 395. Ex parte JS«///#w, BuUcn, 1 Rose, 135. Ibid. 134. Ex parte Sandison, Ilrid. (2) Ex parteiVezi'^ow, 2Rose,]9. 27^. (5) Ex parte Hardy, 1 Rose,39e. (5) Ex parte Hardy, l Rose,396. Sect. 7.] OF THE COMMISSIONERS. 165 the Court or Judge, that the party was lawfully committed, Actions. the defendant will have the same benefit therefrom, as if the whole of the examination had been stated. No action can be commenced against any Commissioner Notice of for any thing done by him as such, unless notice in wri- '*'^*^°"- ting(l) of the intended writ or process shall have been delivered or left at his usual place of abode, by the attorney for the party intending to sue out the same, at least one calendar month previously ; the notice, too, must set forth the cause of action, and must be indorsed with the name and place of abode of the attorney, who is to receive no more than 205. for preparing and serving it. In default of proof of such a notice, the commissioners will be en- titled to a verdict, and costs against the party bringing the action ; and no evidence can be given by the plaintiff, on the trial, of anjj^ other cause of action than what is con- tained in the notice. (2) Every Commissioner may also, within one calendar May month after such notice, tender (3) amends to the party *^^""^^ ^ ' . amends, complaining, or to his agent or attorney ; and if not ac- cepted, may plead the same in bar to any such action, to- gether with the plea of not guilty, and any other plea, with leave of the Court ; and if the jury shall find the amends so tendered to have been sufficient, they are to give a verdict for the defendant. If the plaintiff shall become If plaintiff nonsuit, or discontinue his action, or if judgment shall be becomes given for the defendant upon demurrer, the commissioner will be entitled to the like costs, as he would have been entitled to in case he had pleaded the general issue only. But if the jury shall find that no amends, or not sufficient, were tendered, and also against the defendant on the other plea or pleas, the plaintiff will then be entitled to a verdict for damages and costs. And though the commissioner may pay neglects to tender amends, or tenders insufficient, previous "^[^Q^omt, to the action, — he may, nevertheless, by leave of the Court, (l) Section 41. (3) Seclion 45. ('i) Section 42. M 3 1C6 OF THE COMMISSIONERS. [Ch. 7. Actions. Limitation of actions. May plead general •Defendant entitled to double costs. When conamis- sioneirs liable to action. at any time before issue joined, pay into Court such sum as he shall think fit; upon which such proceedings shall be had, as in other actions where the defendant is allowed to pay money into Court. Every action against any person, for any thing done in pursuance of the act, must be commenced within three calendar months (1) next after the fact committed ; and the defendant may plead the general issue, and give the statute and the special matter in evidence at the trial, and that the same was done by authority of the statute ; and if it shall appear to have been so done, or that the action was commenced after the time limited for bringing it, the de- fendant will be entitled to a verdict ; and in that case, or in case of a nonsuit, or discontinuance of the action after appearance, or if upon demurrer judgment shall be given against the plaintiff, the defendant will be entitled to double costs. The right of action against the Commissioners is founded upon the general rule of law, applicable to all actions of tress- pass against persons having a limited authority. If they do any act beyond that limit, they thereby subject themselves to an action of trespass ; but if the act done be wil/im the scope of their authority, although it be done through an erroneous or mistaken judgment, they are then not liable (2) to such action. Thus, though it was formerly held that an action would lie against them, for committing a person for not answering improper questions, or not acquiescing in a proper answer (3), — it has been since decided, that commissioners are not liable to an action of trespass for committing a bankrupt, who does not answer to their satis- faction, notwithstanding he is discharged afterwards by habeas corpus on the ground of the Court thinking the answers (4) satisfactory ; for the commissioners have a discretionary power to commit, if the answers are not (1) Section 44. (2) Per Abbott C. J. Doswell v. Jinpey, 1 B. & C. 1 G9., and see ante, 1 50. and soq. (3) Miller v. Scare, 2 Bl. 1141. (4) Dosivell V, Impey, 1 B. & C. IC.'J. Sect. 7.] OF THE COMMISSIONERS. 167 satisfactory to themselves. Neither will any action lie Actions. against commissioners for a commitment, which is bad only in consequence of a formal defect in the warrant. (1) In an action brought against the Commissioners by a Where person apprehended on their warrant, for not obeyinir a ^""'9;. . ... p proof lies .previous summons requiring his attendance before them, on plain- it lies on the party summoned, having a lawful excuse for ^'^* not attending, to prove the fact of his being prevented from attending by a lawful impediment. (2) When the Commissioners have incurred any costs, by Right to defend ins: an action brought against them for an act done '""emnity *=• . . . . trom costs. in the strict discharge of their duty, they have a right to be compensated by the assignees ; and the Chancellor will not restrain them from bringing an action to recover such costs, though the assignees have not received suffi<:ient to pay the expenses of the commission, and have, in fact, no prospect of obtaining any more of the bankrupt's pro- perty. The Commissioners, indeed, act under a double security; for, besides that which every other judge is en- titled to in the exercise of his duty, they have also the covenant of the assignees. (3) Where the bankrupt is confined in prison under pre- How far vious process, the mere issuing of the commissioners' war- warrant , . . ... evidence rant does not amount to an imprisonment by them, until it of the has been in some way operative to the detention of the ""prison- party, independently of the other process ; for the warrant is only evidence of the order for imprisonment, and not of the imprisonment itself. But if it operate to the confine- ment of the party within narrower bounds, it is then, coupled with proof of that fact, evidence of an imprison- ment by the commissioners. (4) Where the bankrupt had been already nonsuited in an Court will action against the Commissioners in the King's Bench, ^J^ediu^f'T (1) Bract/ i case, Comb. 391. (3) Ex parte Z/iw^Aa-auV, 16 Ves. (2) Baltye v. Gresley, 8 East, 214. 319. (4) Crowley v. Impey, 2 St; 261. M 4' 168 OF THE COMMISSIONERS. [Ch.7. Actions. till costs of a former action paid. When commis- sioners' may mr.ke affidavits in answer to any pe- tition. on the ground that he was not prepared with evidence to prove the validity of a former commission, the Court of Common Pleas, in an action for the same cause, stayed the proceedings until the plaintiff paid the costs of the former action. (1) Notwithstanding a petition from the bankrupt, or any other person, reflects on the conduct of the commissioners, they are not called upon, and indeed ought not, to make affi- davits in answer to the allegations contained in it, unless they are actually served with the petition. In that case they are made parties, and may properly come forward, and defend their conduct upon affidavit; but they are not otherwise to make themselves a species of witnesses, either with respect to their own conduct, or the general nature of the transactions under the commission. They are to take it for granted, that the Lord Chancellor will give them credit for having acted properly, unless such a case appears upon the petition, as induces him to call upon them for an explanation of their conduct, — in which case, if the im- putations against them prove to be groundless, they will then have justice done them with respect to their costs and expenses. But this cannot be done, where they come forward as parties, without being served with the petition. (2) (1) Crowley v. Impey, 8 Taunt. 407. 2 Moore, 460. (2) Ex parte Husband, 1 G. & J. 108. ; and see Ex parte Steele, 16 Ves. 161. Ex parte Scarth, 14Ves. 104. 1."; Ves. 295. 1.69 CHAP. VIII. OF THE MESSENGER. 1 HE Messeno:er is the officer of the Commissioners, and Nature of his duty is to execute promptly the summonses and war- omce. rants directed to liim by them, whether for the seizure of the bankrupt's property, or for summoning or appre- hending the bankrupt, or other persons, during the different proceedings under the commission. For his trouble in the discharge of these duties, he is entitled to certain fees, which are taxed by the commissioners, and are paid out of the bankrupt's estate. There are several messengers at- tached generally to the commissioners of bankrupts in London ; and it is usual for the solicitor, who issues a town commission, to nominate which of them he chooses to act as messenger under it. The messenger is amply protected in the discharge of His autho- his duty, if he behaves himself properly, and does not ex- "^y ^^ ^° . . . ^ i V J ^ j-j^g seizure ceed the limits of his authority, as defined in the various of the enactments of the statute. He may, by warrant under the bankrupt's hands and seals of the commissioners, " break open ( 1 ) and pro- any house, chamber, shop, warehouse, door, trunk or perty. chest of any hanh-upti^), where the bankrupt or any of his' property shall be reputed to be, and seize upon the body, or property, of the bankrupt." And if the bankrupt be in prison or in custody, he may seize any jpropcrty (3) (except (1) Section 27. &c.," — under which last construc- (2) The wording of this section tion, the messenger would not be is rather obscure; for it seems justified in breaking open any doubtful whether the words, " of house, &c., except the house of the any bankrupt" are intended to hankrupt. And this, indeed, was apply only to " trunk or chest," formerly the law. 2 Show. 247. (as from the pointing of the printed (3) There is also an omission in act would seem to be implied), or this part of the clause, in not con- are meant to be connected with fining the seizure to the property rtie matters previously enumerated, of the bankrupt; but this of course namely, " any house, chamber, must necessarily be inferred. 170 OF THE MESSENGER. [Ch. 8. Where part of the property is in Ireland. Where the pro- perty is concealed. Where any pro- perty is in Scotland. Inventory of bank- rupt's ef- fects. his necessary wearing apparel) in the custody or possession of the bankrupt, or of any other person, in any prison or place where the bankrupt is in custody. If any of the bankrupt's property (1) is in Ireland^ the messenger may in the same way seize the property there; but the warrant in that case must be verified upon oath by the solicitor under the commission, before the mayor or other chief magistrate of the city or town where or near to which the commission is executed, and be also verified under the common seal, or the seal of office of such mayor or magistrate; and the messenger must also depose upon oath, before a justice of peace residing in the county where the bankrupt's property shall be reputed to be, that he is the person named in such warrant. Where there is reason to suspect that property of the bankrupt is concealed (2), the messenger may then obtain a search-warrant from any justice of peace in England, or Ireland, and may execute it in the same manner, and is entitled to the same protection, as is allowed by law in the execution of a search-warrant for stolen property. If, in the execution of the commissioner's warrant, it becomes necessary to have access to any house or place of the bankrupt in Scotland {S\ the warrant, after being verified upon oath as before mentioned, must be backed or indorsed with the name of a judge ordinary or justice of the peace in Scotland, which will be then sufficient autho- rity to the messenger, and all officers of the law in Scot- land, to execute it within the county or burgh wherein it is so indorsed. The messenger, when he seizes the bankrupt's property, should make an inventory of every article, which the bank- rupt ought, if possible, to see and acknowledge to be cor- rect; and the inventory, with the articles contained in it, must as soon as assignees are chosen be delivered up to them. None of the property should be left in the banki- (1) Section 28. (2) Section 29. (5) Section 50. Ch. 8.] OF THE MESSENGER. 171 rupt's power, — and care should be taken that no docu- ment is lost. The usual way of securing the books and papers is to put them into a bo;c, or some other safe place of deposit, sealing it up with the messenger's seal, as well as with that of the bankrupt, and thus to keep them until assignees are chosen. When the messenger has once taken possession of the After sei- bankrupt's property, he should not quit possession upon ^"''^' ™^®' the representation of any person claiming the property should not as his own; for if he quits possession, there may be q"'t pos- session some difficulty in his resuming it ; as it is a question, whether, after having once abandoned it, the warrant of the commissioners is not spent. (1) Perhaps the safest mode of proceeding, in such a case, would be to get a fresh warrant from the commissioners ; since an attachment will not be granted, under these circumstances, against a per- son for refusing to permit the messenger to take a (2) second possession. As the messenger was formerly put to much expense Indemnity and trouble, from actions beino- brought against him, for ^^ *^° ^^- . . . . . tions. the mere purpose of trying the validity of the commission, a protection is now given to him, similar to that, which the law alfoi'ds to constables in the execution of their duty. He seizes the property of the bankrupt, indeed, at his ovvn hazard ; but no action can be brought against him for any p^^ ^^ jg_ thing done in obedience to the commissioners' warrant mand and prior to the choice of assignees, unless a previous demand (3) jf,g ^^j_ in writing is made by the party, or his attorney, of the rant. perusal and copy of the warrant, nor unless the same hath been refused or neglected for six days after being made. And if, after compliance with such demand, any action be Petition- brouffht against the messenger, without making the pe- \'?o ^re- . . ^ ^ ,. 1 r 1 I 1 • c c ditor must titionmg creditor a deiendant also, the jury, on prooi or ^g joined such warrant at the trial, must give their verdict for the ^" ^he action. (1) Per Lord Eldon, Ex parte (2) Per Lord Eldon, Ex parte Page, 1 Rose, 2. Page, 1 Rose, 2., and 1 7 Ves. 59. (.3) Section 51. 172 OF THE MESSENGER. [Ch. 8. defendant, notwithstanding any defect of jurisdiction in the commissioners. But, if the action be brought against the petitioning creditor as well as the messenger, the jury, on proof of the warrant, are equally bound to give their ver- dict for the messenger; and if a verdict be given against the petitioning creditor, the plaintiff may recover his costs against him, so as to include the costs which such plaintiff is liable to pay to the messenger. And proof in such an action, that a defendant is the petitioning creditor, renders him (1) liable to the same extent, as if the act complained of in the action had been committed by the defendant. As this protection, however, of the messenger is only given to him, for acts done prior to the choice of assignees, he should in all doubtful cases, when the action is brought after the choice, secure himself by taking an indemnity from the assignees. Limitation The messenger is also within the section (2) of the statute, of action, ^ijich provides for the limitation of actions aebb and the case of the petitioning creditor) that it was contracted ' with the bankrupt after he left off trade. ( 1 ) But a debt which is barred by the statute of limitations cannot be As to time proved, although the bankrupt admit that he contracted tractinf^ the debt and never paid it. (2) A debt, contracted by the Jebt. bankrupt's wife before her coverture, may likewise be proved under the commission against him ; for when a woman marries, all her debts become, by the marriage, the debts of her husband. (3) "Whenever a debt is barred by the certificate, it is fwith What . . ■ . ^ debts only one or two exceptions, which will be noticed in a sub- provable sequent chapter (4),) provable under the commission ; and the converse of this proposition likewise holds true. (5) But before a debt can be proved, it must either be actually liquidated and ascertained, or capable of being so (6) ; and it must also be contracted for a lawful consideration. (7) Proof of a debt has been decided by the Vice-Chancellor How proof to be equivalent to payment. (8) But this position appears °P^*'^'^^' to have been doubted by Lord Eldon. (9) Proof of a debt, however, is so far binding on the creditor, that if he has a security or lien on any property of the bankrupt, and proves for the whole debt, he will not be allowed afterwards to withdraw his proof, and avail himself of his security or lien, — but must deliver up the security, or property on which he has a lien, for the general benefit of the credi- tors. (10) (1) Meggott V. Mills, 12 Mod. sWils, 262. Utterson v. Vernoji, 159. 1 Ld. Raym. 287. 5 T. R. 546. (2) Ex parte Dewdnet/, 15 Ves. (7) See post, Sect. 25. " Ofllle- 479. Ex parte Seaman, Ibid. Ex gal and Void Debts." parte Roffey, 2 Rose, 245. (8) Ex parte Watson, Buck. 456. (5) Miles V. Williams, 1 P. Wms. Ex parte Smith, Ibid. 492. Ex 249. parte Hornby, Ibid. 551. (4) Vide post. " Of the Effect (9) Ex parte Hunter,Bnck. 556. of the Certificate." (10) Ex parte Dowries, 18 Ves. (5) 1 Atk, 119. Barnfordw.Biir- 290. 1 Rose, 96. Ex parte Solo' rell, 2 B. & V. 1 1. man, 1 G. & J. 25. (6j Goddard v. Vatidcrhei/den, N 178 OF THE PROOF OF DEBTS. [Ch.9. Debts and creditors. Penalty on a creditor receiving more from the bank- rupt, than the other creditors. Creditors must come in upon equal terms, notwith- standing they have securities. Excep- tions. Mode of proof as to creditors holding securities. Joint securities. By Section 8. of the new statute, if any creditor, after a docket struck against a bankrupt, receives from liim any money, gift, satisfaction, or security for his debt, or any part of it, whereby the creditor may receive more in the pound in respect of his debt than the other creditors, he thereby forfeits his wliole debt, and is also compellable to deliver up such money, &c. or the full value thereof, to such person as the commissioners shall appoint. The aim of the legislature, therefore, being that the creditors should have an equal proportion of the bank- rupt's effects, creditors of every description must come in upon equal terms ; nor will the nature of thei • demands make any difference, unless they have obtained actual exe- cution against the bankrupt, or have taken some pledge or security from him, more than two calendar months before the date and issuing of the commission. (1) The 108th section of the new statute accordingly declares, that no creditor having security for his debt, or having made any attachment in London or any other place by virtue of any custom there used, of the goods and chattels of the bank- rupt, shall receive upon any such security or attachment more than a rateable part of such debt, except in respect of any execution or extent served and levied by seizure upon, or any mortgage of, or lien upon, any part of the property of the bankrupt before the bankruptcy. (2) When a creditor comes to prove his debt, he is obliged to swear, whether he has a security for it or not; and if he has, and insists upon proving, he must either deliver it up for the benefit of the creditors (3), or have the value previously ascertained by the sale of it. (4) If it be, however, a joint security from the bankrupt and another person, he may then come in for his whole debt under the commission, without being compelled to deliver (i) Section 81. (2) And see post, as to judg- ment creditors. (3) Ex parte Grove, 1 Atk. 105. (4) Ex parte Smithy 2 Rose, 64. Sect. 1.] OF THE PROOF OF DEBTS. 1 79 up the joint security (1) ; and he is in that case entitled to Debts and take his dividend upon the whole of his demand from the ^ ^^^^^"'^ - bankrupt's estate, and to recover what he can from the co- surety, provided he does not receive more than 20^. in the pound in the whole. And the same rule holds, where the Separate creditor has a distinct security from a third person for the ^^'^""''^^ same debt; for the deduction of such a security is never persons, made from the claim of the creditor, unless it is pledged with the creditor as the property of the bankrupt. (2) It Exhibit. should, however, be produced at the time of proving the debt, in order that the commissioners may mark it as having been exhibited. If a creditor, holding the bank- rupt's acceptance, proves his debt without stating that fact to the commissioners, and there are circumstances of suspicion, which make it fit that the assignees should again have an opportunity fully to examine into the debt, the proof will be ordered to be expunged — giving him liberty, however, to go again before the commissioners and tender his proof. (3) Where the creditor thinks, that a security pledged with Wlien him by the bankrupt is not of equal value with the debt, j^^y ^J he may apply to have it sold, and be admitted as a creditor sold, and for the residue; and it makes no difference in this respect, ^[^j ^ whether the security is a real or personal one ; for all per- the dif- sonal securities, such as bonds and bills of exchange, may '^'"^"c^- be directed to be sold in the same manner as an estate. (4') And if the security is really of less value than the debt. When and the creditor is desirous of voting in the choice of ^'"■^u^ assignees, the Court will sometimes permit him to prove giving up without giving up the security ; but then the value of the ^^'^""'^y* security or pledge must be deducted, and he can only prove for the difference ; and the Court will impose such terms upon him, as that justice may be done to the (1) Ex parte Bennet, 2 Atk. 528. (3) Ex parte Hossack, Buck. 390. (2) Ex parte Parr, 1 Rose, 76. (4) Ex parte Hiltier, 1 C. B. L, Ex parte Goodman, 5 Madd. 573. 158.; and see post. N 2 180 OF THE rnOOF OF DEBTS. [Ch. 9. Debts and creditors. When proof of the ba- lance of a debt should not be re- jected. estate. (1) Where the security consists of bills, if the cre- ditor is willing to take them at their value on the face of them, the estate in that case cannot be damnified, as they may produce less, but cannot produce more ; and his proof must, of course, be admitted for the difference. (2) And the same rule applies, where the value of the security is ad- mitted by all parties (3) ; but if, in this case, the sale of the security produces more than the value put upon it, the surplus must be carried to the estate, and not applied in reduction of the creditor's proof. (4) And though the right to retain the security is disputed, yet, if the value of it bears a very small proportion to the amount of the debt, the creditor will be allowed to prove for the difference, upon giving security to deliver up the property, if it should turn out that he is not by law entitled to retain it. (5) But where the creditor holds property under what was clearly a l^reference^ such an order will not be made. (6) The proof of the balance of a debt, which must at all events be due, is not to be rejected or deferred, because there is a question (as to the legality of a part payment of it) to be tried between the bankrupt's estate and the cre- ditor, which the assignees in their discretion may, or may not, put into a course of trial — but which the creditor can- not himself initiate; though it is proper that no divi- (1) 2Jac. & W. 221. Ex parte Nunn, 1 Rose, 322. Ex parte Greenwood, Buck. 325. (2) Ex parte Martell, 1 Rose, 329. Per Lord Eldon, (3) Ex parte Nunn, Ibid. 322. (4) Ibid. (5) Ex parte De Tastet, 1 Rose, 324. ; and see Ex parte Smith, 2 Rose, 65. The order in Ex parte De Tastet was, that the creditor should give security to deliver up the property, if the commissioners should be ofojnnion, that he was not entitled to retain it; and that the creditor should not reverse their adjudication, by an application af- terwards to the Lord Chancellor. The reasonableness of imposing these terms, however, seems to be very questionable; for in a com- plicated case of law and fact, it is somewhat hard to tie the creditor down to the decision of such a tribunal as commissioners of bank- rupt, without any appeal from their decision to the Lord Chancellor, or without, at least, permitting him to take the opinion of a judge and ju'T- (6) Ex parte Barclay, 1 G. & J. 272. Ex parte Smith, 5 Bro. 46.; and see post. Section 6. Sect. 1.] OF THE PROOF OF DEBTS. 181 dend should be paid on that proof, till the question is Debts and determined. ( 1 ) creditors. A creditor, who has not proved, is not entided to ex- Disability amine the petitioning creditor before the commissioners (3) ^^ "?' TTTi T 1- 1 , , ^ provnii^. When a creditor applies to prove, though he is not Creditor bound to criminate himself, he is nevertheless bound to bound to answer all the lawful enquiries of the commissioners, re- ^"^^^f^^*^ specting his claim upon the bankrupt. (3) Therefore, sioner's where a creditor was charged by the bankrupt with the '^"1"'"^°- receipt of several sums of money, — and refused, upon his examination before the commissioners, any disclosure as to the receipt and application of them, the Lord Chancellor would not allow him to prove his debt under the commis- sion, — as it was necessary that he should, in the first place, discharge himself of the sums of money traced to his hands. (4-) A speciaUi/ creditor has the same right under the bank- Right of ruptcy of the /leir of his debtor, as if the heir had not ^F'jl^'ty become bankrupt ; and may, therefore, follow the real against a assets of his debtor, or their specific produce, in the hands bankrupt of the assignees. (5) A creditor, who proves his debt, is not thereby estopped ^^ to from disputing the validity of the commission in an action pro^'t'^^ ^ at law, or from applying to have it superseded. (6) Creditors, who come in under the commission, are liable But liable to contribute, in proportion to the amount of their debts, ,*° contn- to all the lawful expences of the assignees in recoverino- the bankrupt's property; and there is no difference, in this respect, between creditors who prove by affidavit, and those who prove in person. (7) But no creditor, being out of England, and proving by affidavit, is liable to pay any contribution on account of his debt. (8) (1) FiX parte Ackroi/d, iG. &J. (6) Stewart v. Richnan, 1 Esp. 591, 108. Ex parte ^o?25or, 2 Rose, 61. (2) Ex parte Steele, 16 Ves. 161. (7) Ex parte Lcivthwaite, 16 Ves. (3) Section 46. 234. (4) Ex parte Symes, 11 Ves. 521. (8) Section 46. (5) Ex parte Morton, 5 Ves. 449. N 3 182 OF THE PROOF OF DEBTS. [Ch. 9. Debts and creditors. Creditor may ap- peal to the Lord Chan- cellor. Punish- ment for perjury. The new statute to be con- strued fa- vourably for cre- ditors. As an appeal lies to the Lord Chancellor, on petition, from every determination of the commissioners, — if a cre- ditor, therefore, upon his proof being rejected by them, considers himself aggrieved, his proper course is to petition the Chancellor to be admitted to prove. (1) But he can- not petition to prove a larger debt, than what he offered to prove before the commissioners. (2) Under special cir- cumstances, however, a creditor may petition to prove in the first instance, without tendering his proof previously to the commissioners (3); though such an application should not in general be made, until the commissioners have re- jected the proof. (4-) If the commissioners also have improperly admitted proof of a debt, redress must be sought by the assignees, by petition, and not by bill. (5) If any creditor, or other person, wilfully and corruptly swears falsely (6) in any deposition or affidavit, or (being a Quaker) makes a false affirmation, he is liable to be pro- secuted for perjury. The present statute declares, that it is to be construed beneficially for creditors (7), in conformity with an opinion formerly expressed by Lord Mansfield, as to the interpret- ation of the former bankrupt laws ; namely, that they should receive a construction favourable for creditors, and the suppression of fraud. (1) Clarke v. Capron, 2 Ves. 666. (2) Ex parte Fry, 3 Mad. 152. (3) Ex parte Moody, 2 Rose, 414. Ex parte Smith, 1 G. & J. 74. (4) Ex parte De Tastet, 1 V. & B. 280. (5) C.B.L. 130. (6) Section 94. Formerly, be- sides the punishment for peijury, he was liable to pay double the sum sworn to, or affirmed to be due, to be divided amongst the bankrupt's creditors. See 5G. 2. c. 30. s. 29. Holmes v. Walsh, 7 T. R.458. (7) 1 Burr. 4 74. Sect. 2.] OF THE PROOF OF DEBTS. 183 Section II. Of the Creditor's Election to sue the Baiikrujpt, or to 'pro've his Debt. A creditor, by proving his debt under the commission, Former was not formerly conckided to have made an absolute P''^'^*^''^^- election, not to proceed at law against the bankrupt; "though the Lord Chancellor would, on application, put him to his election, either to come in under the commis- sion, or to proceed with his action. Some refined dis- tinctions, too, appear to have been drawn in the different cases (which are somewhat at variance with each other), as to the particular period of putting him to his election — whether before, or after, a dividend was declared — or whe- ther there should not, at the least, be funds in the hands of the assignees sufficient to make a dividend. (1) If the creditor elected to proceed with his action, he was still allowed to prove his debt, for the purpose of assenting to, or dissenting from, the certificate ; as the certificate would, of course, operate to the discharge of the bankrupt from that action, as well as all his debts contracted before the act of bankruptcy. (2) A petitioning creditor, however, Petition- was always held to have determined his election ; for if he ^^"= ^'^^' had been permitted to proceed at law, after taking out the commission, the commission itself must have been super- seded, — which would have affected all the creditors who had proved debts under it. (3) But now, by Section 59. of the new act, (which adopts Creditor the provisions of the 49 Geo. 3. c. 121. s. 14.) any creditor, "'"'^ "9^ ^ ..,.., relinquish who has brought an action, or instituted a suit, agamst the an action, bankrupt, in respect of a demand prior to the bankruptcy, before (1) C.B.L. 134. Ex parte Ward, Ibid, 155. Ex (2) Ex parte Dorvilliers, 1 Atk. parte Crlnsox, 1 Bro. 270.; and see 221. Ex parte Lmdsai/, Ibid. 220. 1 Mont. Dig. 70. 2 Clirist. B. L. Ex parte t'apoit, Ibid. 219. 481. 8 T. 11. 344. 3Ves. 1. 1 V. (3) Ex parte Wilson, 1 Atk. 152, & B. 315. II 4 184> OF THE PROOF OF DEBTS. [Ch. 9. Election. Proof deemed an election. Where the action a joint one. Where commis- sion super- seded, cre- ditor not to be pre- judiced. Two cases of proof. Where action brought before, and after proof. or which might have been proved as a debt under the commission, is not permitted to prove, or to have any claim entered upon the proceedings, unless he relinquishes the action or suit, (l') And in case the bankrupt is de- tained in prison at the suit of such creditor, the latter must then give a sufficient authority in writing for his dis- charge. The proving, or claiming, a debt under the com- mission, is also deemed an election by the creditor, to take the benefit of the commission with respect to the debt so proved, or claimed. The creditor, however, is protected from any liability to pay the costs of the action or suit so re- linquished, either to the bankrupt, or his assignees. Where the action is a Johit one against the bankrupt and another person, the relinquishment of it against the bankrupt will not affect the action, as to such other person. If the com- mission should be afterwards superseded, the creditor may then proceed in the action against the bankrupt, as if he had not elected (2) — and, if the action was a bailable one, may arrest the defendant de ?2ovo, if he has not put in or perfected bail, — and if bail has been put in or per fected, he may then proceed against the bail. This section embraces, though it does not expressly provide for, two distinct cases of proof, — the one, where an ACTION has been brought before the debt is proved, — and the other, where the debt is proved ■previously to the com- mencement of any action. With respect to \\\Q.Jirst case, viz. where the action is brought before the proof, the words of the statute are very general, and seem to amount to an absolute prohibition from proving any debt, without relinquishing the action pending, whether brought in re- (1) It was the practice, however, of the commissioners for some time before the 49 G. 3. c. 121. to insist upon this relinquishment on the part of the creditor. Ex parte BotteriU, 1 Atk. 109. 1 C. B. L. 150. Ex parte Wilkinson, 1 Atk. 8.5. ; and see Ex parte WooUetj, infra. (2) Before this provision in the statute, if the creditor had the bankrupt in execution, and had elected to come in under the com- mission, he could not retake him, if the commission was afterwards superseded. Sect. 2.^ OF THE PROOF OF DEBTS. 185 spect of the debt offered to be proved, or of any other. Election. As to the other case of proof, viz. where the action is brought after the proof of the debt, the enactment amounts only to a declaration of the legal effect of such proof or claim, — which is confined to the debt so proved or claimed. Where a creditor, therefore, has two distinct demands Where against the bankrupt, for one of which he brings an action \ % action o ^ I ' o bejorc against him before the bankruptcy, and then proves the other proof. under the commission, the proof of this debt is an election ^^^ition • p 1 1 1 • ^° prove to relinquish the action for the other, and to come m as a ere- an elec- ditor for both debts under the commission. (l) And where *''^"- the creditor, instead of proving, presents merely a petition to be admitted to prove one of his demands, he is equally estopped from continuing his proceedings at law against the bankrupt for the other (2); for the presentation of such a petition is as much a pledge to prove, as entering a claim would be, and operates in itself as an election to come in under the commission. (3) So, where a creditor obtained So obtain- an order for an enquiry before the commissioners, and order- before the order was drawn up took out execution upon a judgment then pending against the bankrupt, the Lord Chancellor ordered the goods to be restored, and put in the same situation as they were at the time of the order, — declaring, that a creditor obtaining an order at his own in- stance should not be suffered to take out execution, with- out first applying to set that order aside, or procuring the leave of the Court, ("t) So, if one creditor accepts an or an as- assignment from another of a debt proved, he is substan- ^^^^ ^^^^ (l) Ex parte Dickson, 1 Rose,98. both. Ex parte Crinsoz, 1 Bro.270. Before the 49 G. 3. c. 1 21., where a Ex parte Botteril, 1 Atk. 109. Ex creditor had two demands against parte Mathews, 5 Atk. 817. the bankrupt of a different nature, (2) Ex parte Hardevburgh, he might prove one under the 1 Rose, 204. commission, without relinquishing (s) Ex parte Blaifdes, 1 G. & J. an action pending for the other; 179. Ex parte /mng, Buck, 425. and his election to come in under Ex parte Lord, Ibid, the com.mission as to one debt, did (4) Ex parte Bozannct, 1 Rose, not compel him to make it as to 181. 186 OF THE PROOF OF DEBTS. [Ch. 9. Election. already proved. Creditor issuing ex- ecution upon a verdict subject to an award. Joint and separate creditor having issued execution. Execution before bank- ruptcj'. Where action brought tially a creditor proving himself under the commission, and thereby reh'nquishes an action previously brought against the bankrupt for his own debt. (1) Where a creditor of the bankrupt, previous to the com- mission, obtained a verdict against him for a nominal sum, in an action for money had and received, subject to a reference, — and after the award was made (which was sub- sequent to the commission) entered up judgment for the debt and costs, and then proved the debt under the com- mission, and afterwards took the bankrupt in execution for the costs, — the Lord Chancellor ordered him to be dis- charged,- — and that the creditor should pay the costs, unless he could produce an affidavit, that the commissioners had stated to him, that he had a right to seize the person of the bankrupt. (2) It has been holden, however, that where a scj^arate commission issued against one of a firm, and a joint and separate creditor had taken out execution against the bankrupt for his joiyit debt, he was still entided to prove his separate debt, without giving up his execution. (3) And where a creditor before the bank- ruptcy seized the effects of the bankrupt under an exe- cution — though the goods were not sold till after the commission issued — yet the creditor was allowed to retain his execution, and prove for the residue of his debt; for the above clause of the statute was held not to apply to a case of this nature. (4) But if the validity of such execution is disputed, and the goods are not turned into money, he will not then be permitted to have a value set upon the goods, and to prove for the residue of his debt, in order to vote in the choice of assignees. (5) But where an action for one of two distinct debts is brought ajlcr the proof of the other, the creditor in this (1) Ex parte Taylor, 1 G. & J. (4) Ex parte Hopley, 1 G. & J. 399. 63. S. C. 2 Jac. & W. 220. ; and (2) Ex parte Haynes, 1 G. & J. see /Section 108. 107. (5) Ex parte Hopley, 1 Jac. & (3) Ex parte Stanborough, 5 Mad. W. 423. 89. Sect. 2.] OF THE PROOF OF DEBTS. 187 case is not deprived of his right of action ; for the words Election. of the statute do not make the provinaDW, Wight w. (5) Robinson v. Vale, 2 B. & C. Rep. 16. 762. (2) Bussy. Gilbert,2M.&S.'70.i (6) Ex parte Birch, 4 B. & C. and see post, " Costs." 880. (5) Ex parte Rashleigh, 1 Rose, (7) Section 58. ; and see post, 192. Section 19. " Costs." (4) Ante, 193. o S 198. OF THE PROOF OF DEBTS. [Ch. 9- Assignees may pay ofFmort- bctbre forfeiture. After for- feiture, mortgage must be sold, and proof made for the resi- due. Mode of proceed- ing when mortgage sold. Section VI. Of Creditors having a Mortgage, or equitable Lien. When a creditor has a mortgage from the bankrupt, of any property pledged by hhii upon condition or power of redemption at a future day, the assignees may, by the seventieth section of the new statute, before the time limited for the performance of such condition, make tender or payment of money or other performance, according to such condition, as fully as the bankrupt might have done; and may afterwards sell and dispose of the mortgaged pre- mises for the benefit of the creditors. But if the mortgage is forfeited, and the creditor appre- hends it is not equal to the payment of his debt, he must then apply to the commissioners to have the mortgage sold, and be admitted to prove for the residue. Or he may, if he chooses, file a bill against the assignees for a foreclosure — and that, even before the execution of the bargain and sale to the assignees by the commissioners. (1) In order to have the mortgage sold, a special application to the Lord Chancellor was formerly necessary (2) ; but this maybe done now under the general order (3) — by which the commissioners are directed to have the mort- gage sold, either before them, or by public auction, previ- ously causing due notice to be given in the London Gazette, and in such other of the public papers as they shall think fit, of the time and place of sale. The proceeds of the sale (4) are to be applied — first, in payment of the expenses attending the sale, and then in payment of what is due to (l) Bainbridge v. FinJiorn, 1 Buck. 135. (2) Ex parte Howelt, 7 Vin. 101. Ex parte C'oHu'«g, 9Ves. 115. Ex parte Weiherell, UVes. 398. Ex parte Haigli, ibid. 403. Ex parte Twogood, 19 Ves. 231 (3) Lord Loughborough, 8th March, 1794. (4) As to the rules for conduct- ing the sale of the bankrupt's pro- perty, whether under the general, or a special, order, see post, " As- signees." Sect. 6.] OF THE PROOF OF DEBTS. 199 the mortgagee for principal, interest, and costs ; and in case Mort- the proceeds are not sufficient for that purpose, the mort- ^ "^^^' gagee may be admitted a creditor for the deficiency. But Interest, he can only prove for interest up to the date of the com- mission. (1) The commissioners have jurisdiction, under this order, As to to take an account of the expenses attending the sale of the *^^'"S t"^ 11 ^ II • \ mortgage mortgaged premises, and to tax the costs oi all parties. (2) account. And where it is merely a question of convenience, it will be left to the assignees to choose, whether the mortgage ac- counts shall be taken before the commissioners, or the Master. (3) All personal securities^ which are merely pledged or de- Personal posited by the bankrupt with the creditor, may (we have ^^^^u^ties seen (4) ) as well as mortgages, be directed by a special also sold, order to be sold before the commissioners (5) ; but in this case the assignees are alone entitled to insist upon the sale. (6) Where there is a second mortgagee, who does not Second claim under the commission, but rests upon his security "'^''^g^S^^, 11-111 -11 . , not bound — whether it be a legal or an equitable mortgage — neither to join in the commissioners, nor the Lord Chancellor, have power to '*^'^* compel him to join in the sale obtained by a prior mort- gagee. (7) But where a second mortgagee elects to aban- But if he don his security and come in under the commission, under P*""^^^' P^ "' . waves his the impression that the first mortgagee will not receive right to sufficient by the sale of the estate to pay off his mortgage, ^"^ ^"'"' -^ ' •' 3 o » plus from but upon a sale there turns out to be a surplus, — the it. second mortgagee in this case will not be allowed to with- draw his proof, and be remitted to his mortgage. (8) When Where the second mortgagee will not consent tp join in a sale, the mort^aasee (1) Ex parte Wardell, C. B. L. (5) Ex parte jyi//zV;-, C.B.L. 125. 195. Ex Tp&xte Harey, ibid. Ex (6) Ex parte Z'?•o^^g/^^?^, C.B.L. parte ^arfger, 4 Ves. 165. 124. Ex parte Gi2?-6^Her, ibid. (2) Ex parte Mather, 1 G. & J. (7) Ex \idLne J ackson, 5Ves.357. 342. Ex parte Tophavi, 1 Mad. 38. (3) Ex parte Ansley, Buck. 292. (8) Ex }^avte Downes, 1 Rose, 96. (4) Ante, 179. IsVes. 290. o 4 200 OF THE PROOF OF DEBTS. [Cll. 9, Mori- better plan seems to be for the assignees to request the gages^ commissioners to call before them both mortgagees, and refuses to examine them as to the amount of the principal and in- join in the ^gj.gg{. ^j^g qjj their respective mortgages. Tlie assignees may then advertise the estate for sale, subject to the two mortgages ; — and if more is bid for it than what is due on both, the assignees, or the purchaser, can in that case I'e- deem them. If there is no advance, both mortgagees will then be left to their usual remedy, and the assignees will have no further interest in the premises. (1) When A mortgagee has a right to have the estate sold in the '"'t^tPf t^ same plight, as it was in at the time of the bankruptcy, an injunc- Therefore, where the bankrupt (before assignees were '^°"' chosen) was proceeding to cut underwood which he had mortgaged, the Lord Chancellor, upon the application of the mortgagee, granted an injunction to restrain him from so doing. (2) Where Where a mortgagee wishes to bid at the sale as a pur- mortgagee chaser of the property mortffaiTed, it is usual for him to wishes to ^ir^oD' bid at sale, ^pply l^y petition for leave to do so (3), undertaking to make good the deficiency between the sum bid and the price to be fixed by the Master, in case the latter should not approve of the bidding. (4 ) But though it is the prac- tice for the mortgagee to apply to the Court, it has been doubted whether such an application is absolutely ne- cessary ; as it is always competent to him to purchase from the mortgagor the equity of redemption, and the bankruptcy does not seem to make any difference. (5) If, indeed, the mortgagee has a power of sale given him by the mortgage, he is then considered in the light of a trustee, who is in general disabled from purchasing for himself (6); but, in Bankruptcy, he may wave his special (1) 2 Christ. B. L. 523. (5) Ex parte Hammond, Buck. (2) Hampton v. Hodges, 8 Ves. 464. ; and see Sugden, Law V. & 105. P. 572. (.3) Ex parte Ducane, Buck. 18. (G) Downes v. Grayehrookcy E.t parte March, 1 Mad. 148. 3 Mer. 206. (4) Re Salisbury, Buck. -349. Sect. 6.J OF THE PROOF OF DEBTS. 201 power of sale, and apply for one in his general character of Mort- mortfragee, — when liberty will be given to him to bid, the S ^S^^- sale being before the commissioners, and conducted by the (1) assignees. When a mortgagee becomes the pur- When the chaser of the premises mortgaged, he is liable for the ex- jjab^e^foV penses of the sale — if it does not produce a sum equal expenses. to pay those expenses, as well as the amount of his mort- gage. (2) Sales by auction of any real or personal estate of the Auction bankrupt are, by the 68th section of the statute, declared "*^* to be free from any auction duty. But it seems, that pro- perty which the bankrupt has mortgaged is (after the mort- gage is forfeited) not within this exception, as not being in law any longer the property of the bankrupt. (3) The above general order of Lord Loughborough, as to As to equi- the sale of property mortgaged, applies only to legal mort- gages, and not to equitable ones ; in the latter case, there- fore, a special order of the Lord Chancellor must be obtained before a sale can be had. An equitable mortgage How cre- is created by the deposit of title deeds, with an agreement, either written or parol, that they are deposited as a security for the debt ; and the mere possession of the (1) Ex parte Hodgson, 1 G. & J. real or personal property of the 12. bankrupt are exempted from the (2) Bowles V. Perring, 2 B. & B. duty, without confining the ex- 457. 5 Moore, 296. emption (as in the 19G. 3. c. 56. (3) Coare v. Q-eed, 2 Esp. 699. s. 15.) to " sales by the order of Rex' V. Abbott, 5 Pri. 178. Mr. the assignees," the mortgaged pro- Sugden in his Law of Vendors and perty sold under the bankruptcy Purchasers (page 12.) thought, that will not be liable to the duty. But the decision in Coare v. Creed could both the above cases were decided not be supported; but it has been on the principle, (independently since considerably strengthened by of the point made in Coat-e v. Creed, the subsequent case of Rej: v. Ab- that a sale of mortgaged property bott, in which all Mr. Sugden's in- under the general order, was not genious arguments, against the liabi- a "sale by the order of the as- lityto the duty, were urged without signees,") that the sale, except as effect in the Court of Exchequer, to the equity of redemption, was Mr. Eden, too, in his Treatise on the not a sale of the estate of the bank- Bankrupt Law, (p. 100.) conceives rupt, but a sale of the estate of the that, as the new act declares in mortgagee. general terms, that all sales of the table mort- gages. ated. 202 OF THE PROOF OF DEBTS. [Ch. 9. Mortgages deeds, if no other purpose of deposit is shewn, affords a equi^a^ presumption that the estate was intended to be a se- curity.( 1 ) Disapprobation has been expressed by the present Chancellor of such mortgages being founded on a mere joffroZ agreement (2), as leaving an opening to perjury which the statute of frauds was intended to prevent; but he con- sidered the doctrine too long established now to be (3) dis- Validity turbed. The validity of an equitable mortgage is decided of, how by the Court, without reference to the commissioners; but blished. when the mortgage is established, a reference is then made to them to take an account of what is due on it; or, in doubtful cases, the Court will direct an issue. (4) Difference In order to discoura2;e equitable mortgajres founded on a ^y'^th'^^' i'^^"^^ sg^'Gement, Lord Eldon has introduced the practice agreement of making a difference in the allowance of the costs IS in ivrit- attendinjT the sale of the property, where the deeds are mg, or by . " t i ^ ' parol. deposited under the terms of a written agreement, and where there is no a£jreement in writing. If there is a written agreement, then the costs of the petition for the sale, and of all fair inquiries into the validity of the security, will be ordered to be satisfied out of the pro- ceeds of the sale (5); and though the written agreement requires the aid of parol testimony to explain it, the mort- gagee will be equally entitled to costs. (6) But where there is no agreement in writing accompanying the deposit of the deeds, the costs are ordered to be paid by the mort- gagee (7); — though, if the assignees oppose the petition (i) Rmsel V. Mussel, 1 Bro. 269. Coombe, 17 Ves.369.; and see post, Featherstone v. 'Fenwick, Harford " Lien." V. Carpenter, ibid. note. Ex parte (4) Ex parte Jennings, 1 Mad. Bruce, 1 Rose, 374. ; but see Lucas 531. 2 Swanst. 360. V. Dorriii, post, 204. (5) Ex parte Garbutt, 2 Rose, (2) Ex parte Hooper, 2 Rose, 78. Ex parte Trew, 3 Mad. 329. 372. Ex parte Brightiven, Buck. (3) Ex parte Cojmwg, 9 Ves. 115. 148. Ex parte Sikes, Buck. 349. Ex parte Wetherell, 11 Ves. 398. 1 Swanst. 3. Ex parte Haigh, ibid. 403. Han- (6) Ex parte Vauxhall Bridge key V. Vernon, 2 Cox, 12. Hearn Company, 1 G. &. J. 101. V. Mill, 13 Ves. 114. Ex parte (7) Ex parte Jranj/, 19 Ves. 472. Mountfort, 14 Ves. 606. Ex parte Sect. 6.] OF THE PROOF OF DEBTS. 203 for sale on frivolous or mistaken grounds, they will then Mortgages be ordered to pay the costs occasioned by such oppo- ^' ^'" ^ sition. ( 1 ) Such a mortgagee, however, is not the more entitled to costs, because it was owing to the bankrupt that no regular mortgage was made. (2) It is no answer to an application by an equitable mort- When a gaeee for the sale of a lease, that it contained a covenant ^^?^^ ^'^^' tains a against assigning without licence from the lessor, and that covenant no licence had been obtained ; for the lessor might perhaps ^P^ to as- wave the forfeiture, and the mortgagee has a right, as against the assignees, to avail himself of the advantage which he has by the possession of the lease. (3) When Whatpar- the property is sold, the assignees must join in the con- *'^^ ^^^^ veyance ; for an equitable mortgagee cannot himself effect a valid assignment of the premises to a purchaser. (4) Where the deeds have been delivered for the express As to de- purpose of preparing a legal mortgage, which does not [jg^^g £^j, afterwards take effect, there has been much difference of the pur- opinion, whether, or not, such a deposit will of itself amount prenarin the memorandum not bemg hostile to the origmal agree- mortgage. ment, the signature of it ajter the bankruptcy did not affect the deposit of the title deeds which took place before ; and that the creditor was entitled to a lien for the whole amount. (1) But if a mortgage be by deed, a further charge by parol cannot be tacked to the original mort- gage debt (2) ; for where the first mortgage is by a legal conveyance, the mortgagee is never permitted afterwards to hold the estate as further charged, not by a legal contract, but by inference from the possession of the deeds. If, however, the further charge is by bond — though it is ob- Where scurely worded as to the agreement between the parties — chartre^ bv that may be so tacked. (3) And a first mortgagee is entitled bond: to tack a subsequent judgment, docketed before the exe- byjudg- cution of the second mortgage, though no execution on ^^^"'• the judgment had issued at the time of the bankruptcy. (4) Whether a mortgagee, having the legal estate before Whether the act of bankruptcy of the mortfTaf^or, can tack a second ^ ™ortga- r - o t5 ' gee can mortgage made for further advances after the act of bank- tack a se- ruptcy, and without notice of the bankruptcy, is a point, condmort- which is still left in considerable doubt by conflicting the act of decisions. Lord Erskine decided that he could not (5) — bank- riiptcy founding his judgment upon what fell from Lord Redes- without dale (6) and Lord Eldon (7) in two preceding cases. But notice. more weight, according to Mr. Sugden, was given to those (1) Ex parte Langston, 1 Rose, (4) Baher v. Harris, 16 Ves. 26. 17 Ves. 227. Ex parte fF/i«Y- 597. ; and see II Ves. 617. bread, 19 Ves. 209. 1 Rose, 299. (5) Ex parte Herbert, 13 Ves. Ex parte Hearne, Buck. 165. 183. (2) Ex parte Hooper, 2 Rose, (6) Latouche v. Lord Dunsany, 328. 19 Ves. 477. 1 Mer. 7. 1 Sch. & Lef, 152. (g) Ex parte Hearne, Buck. 165. C7) Ex parte KnxM, 1 1 Ves. 609. 208 OF THE PROOF OF DEBTS. [Ch. 9. Mort' dicta than he thinks they in fact deserved, — and indeed S "S^^' neither indicate any very strong opinion on the subject. (1) Opposed to these dicta, and to Lord Erskine's judgment, are two cases, which decide that such a mortsaffee can tack a second mortgage under the above circumstances. One of these was before Lord Talbot (2), in which he held that the mortgagee, not having had notice of the bankruptcy, might make use of his prior legal estate as a protection against the commission — and in which also he took the dis- tinction (3), that a secret act of bankruptcy did not prevent tacking, as a commission issued actually did — which was then held notice to all the world. In the other case (4') (which was first before the Lords Commissioners) the bankrupt had made a mortgage to A., — and after a commission issued against him, made another to B., who obtained an assignment of the first mortgage without notice of the commission; — and it was held by two of the Lords Commissioners against the third, that the prior mortgage did not protect the mortgage subsequent to the commission, and that the assignees might redeem, upon payment only of the money due on the first mortgage. This decision, however, a})pears to have been afterwards reversed on appeal to the House of Lords, when the estate was ordered to be sold, and B. to be paid the money due on the second mortgage (5); so that, according to the final decision of the case, it was con- sidered that a mortgagee might tack a second mortgage, notwithstanding it was made subsequent to the commission, provided he had no notice (6) of the issuing of the com- mission. If, however, the second mortgage happen to be made more than two calendar months prior to the com- mission, though after the act of bankruptcy, then there is no doubt that the mortgagee would have a right to tack, under the provisions of the 815/ section of the new statute. (l) Sugd. Law V. & P. 721. (4) Hitchcoc/cv.Sedgwick,2Yeni. C2) Collet V. Be Golls, Forrest, 157. 65. (5) Sugden, V. & P. 721. (3) Per Lord Eldon, 11 Ves.615. (6) And see Sowerby v. Brooks, 4 B, & A. 525. Sect. 6.] OF THE PROOF OF DEBTS. 209 The vendor of an estate has a lien on it for the pur- Mort- chase money (1), on the principle that payment is an ^ "^^^' essential part of the contract; and if, upon a re-sale after Lien of a the bankruptcy of the purchaser, the estate produces less, ^j^""^'' '^'" the vendor may apply the proceeds of the sale, first in chase liquidation of the charges of sale, and then of the purchase ™°"^y' money, and be permitted to prove for the deficiency. (2) And though the vendor may not have conveyed the estate to the bankrupt — and consequently has both the legal and equit- able title in himself — yet he may, if he chooses, apply for a sale of the premises in discharge of his lien for the un- paid purchase money, and prove for any deficiency not satisfied by the produce of the sale. (3) And where the vendor agreed to sell the bankrupt some standing trees, to be cut and taken away within a limited time, and the bank- rupt cut and took away only part of them, before the bankruptcy, — the vendor was held to have a lien upon what were still growing, and to be entitled to prove for the amount of the price of those taken away.(4) But where a vendor sold timber, which was already felled and severed from the freehold, and the vendee took away part of it, and then became bankrupt, — it was considered doubtful in this case, whether the vendor had a lien upon the remainder — on the ground of the partial delivery amounting to a delivery in law of the whole ; and an issue was directed on the point. (5) The vendor's lien is not discharged, When lien by his taking; bills of exchange, or any collateral security, T' , J o , charged for the amount of the purchase money — unless it can be by taking shown, that he agreed to rest on such collateral security. (6) security. But where it was agreed between a mother and a son, that she should join in conveying her life-interest in an (1) See the cases in Sugden, Law (5) Ex parte Gwynne, 12 Ves. of V. & P. ch. 12. ; and post, 579. Ch. XL Part 2. " Lien." (6) Ex parte Loaring, 2 Rose, 79. (2) Bowles V. Rogers, C. B. L. Grant v. Mills, 2 Ves. & B. 506. 125. Ex parte Hunter, 6 Ves. 94. Hughes v. Kearney, 1 Sch. h Lef. (3) Ex parte Gyde, 1 G. & J.525. 156. Ex parte Parkes, 1 G. & J. (4) ^«on. 4Mont.B.L. Appen- 228. dix, 16. 216 OF THE PROOF OF DEBTS. [Ch.9. Mori' gages. When mortgage fails, what proof allowed. Applica- bility of security. Where creditor insures against a contin- gency, and receives the sum insured. Goods pledged cannot be estate to a purchaser, the son undertaking in consider- ation thereof to secure to her an annuity — and after the execution of the conveyance, and before the annuity was secured, the son became bankrupt, — it was held, that the mother was not entitled to pi'ove for the value of the life- estate, but only for the value of the annuity, and the arrears at the date of the bankruptcy. (1) Where money has been advanced by a creditor to the bankrupt, either upon a mortgage, or other security, which fails in consequence of the bankruptcy intervening, proof may be always made for the amount of the money ad- vanced, in respect of the contract implied by law, from the loan. (2) And the same where the security fails for want of a proper stamp. (3) If a security is deposited by a bankrupt generally with his creditor, to indemnify him for a balance then due, and for such sums of money as shall be afterwards advanced — and at the time of the bankruptcy the creditor has two demands against the bankrupt, the one proveable under the commission, and the other not, — he may apply his security, in the first place, to reduce that demand which is not proveable. (4) Where a creditor had an assignment from the bankrupt of a contingent interest, to secure in part a debt exceeding the value of such interest, and the creditor insured against the contingency, and upon its taking effect received the sum insured, — it was held, that he could not prove for the whole debt ; but that the sum recovered (being allowed v,'hat he had expended for effecting the insurance) must be deducted from the proof. (5) Goods pledged as a security for money advanced, are in the nature of a mortgage, and can only be redeemed upon (1) Ex parte ProcA/MS,Buck.406. (4) Ex parte Havard, C. B. L. (2) Exparte Co?»JHg, 9 Ves. 115. 124. Ex ^&ne Arkley, Ibid. 126. (■r\ ,11. tr„^^„^., tT R 041 Ex parte i/wn/er, 6 Ves. 94. (5) Ex parte Andrews, 2 Rose, 410. S. C. 1 Madd. 573. [^2) ti,x parte coming, y v es. 1 15 (,3) Alves V. Hodgson, 7 T. R. 24 1 Ruff\. Webb, 1 Esp. 129. Brown V. Watts, 1 Taunt. 553. Wilson v. Vysar, 4 Taunt. 288. Sect. 6.] OF THE PROOF OF DEBTS. 211 payment of the money, for which they are pledged. But Mort- when the person pledging becomes bankrupt, they cannot ^ "^^^' be retained (like title deeds in the case of an equitable mort- retained gage) for subsequent {\) advances. And goods pledged ex- °^^\ ^j" pressly to secure a creditor, who has previously accepted and vances. paid bills drawn on him by the bankrupt, are released from further charge, as to other bills taken up and paid subse- quently, — if the amount of the original sinn, paid on account of the bankrupt, has been repaid to the creditor, without the goods being sold. (2) A creditor having goods Whencre- pledffed with him in part security of his debt — if he wishes ^ "^^ ^ o I J ^ ^ ^ nave a to prove for the purpose of voting in the choice of as- value set siffnees, and there is not sufficient time previously to have "f^" , " . . . ' *' goods, and a sale — may, on petition, obtain an order that a value prove for shall be set upon the goods, accordinfj to the market price ^}^^ '^'^' . lerencei of the day of the choice of assignees, and prove for the difference between such value and the amount of his debt ; — the creditor undertaking that, if the goods sell for more than the value so set upon them, the excess of the proceeds shall be for the general benefit of the creditors. (3j But where it appears, clearly, that the delivery of the goods is not a pledge, but amounts to an undue preference, such an order will not be made. (4) The selling of a pledge by Selling a a creditor, without applying first to the commissioners, F^"?^ •PI • r 1 • 1 • N 1 does- not does not (if there is no fraud in the transaction) destroy prevent his right to prove the remainder of his debt. (5) proof. The agent of a bankrupt attorney may prove the amount Agent may of his whole debt, notwithstandino- he retains in his hands ^'^°':^ ^"'^ . . , . . . retani pa- certain securities and papers, which came into his posses- pers, &c. sion as such agent, and upon which he has a lien. (G) (1) Vanderzee v. Willis, 3 Bro. (5) Ex parte Greenwood, Buck. 21. Adams v.Claxton, 6Nei..'1^6.; 323. and see Demainbray v. Metealf, (4) Ex parte Smith, 3 Bro. 46. Prec.Cas.416. 2 Vern. 691. Jones Ex parte Barclay, 1 G. & J. 279. V. Smith, 2Ves. 572. ; afterwards (5) Ex parte G^^/Zer, 2Madd.262. reversed in Dom.Proc. (6) Ex parte »S'/'i?£'/^, IsVes. 164, (2) JBirdwood v. Raphael, 5 Pri. 593. p 2 212 OF THE PROOF OF DEBTS. [Ch. Section VIT. Debts payable in futuro. By the 5 1 5^ section of the new statute, any person who has given credit to the bankrupt upon valuable consider- ation for any money, which shall not have become payable when such bankrupt committed an act of bankruptcy — whether the credit is given upon any written security or not — may prove his debt, as if the same was payable presently, and receive dividends equally with the other cre- ditors, deducting only a rebate of interest at the rate of 51. per cent., to be computed from the declaration of a dividend, up to the time such debt would have become payable, ac- cording to the terms upon which it was contracted. This section is nearly the same as the 9th section of the 49 Geo. 3. c. 121., which was framed to remedy many in- conveniences under the former Bankrupt laws. For, before that statute, if a creditor had no security for his debt in •writing {!), and it was not payable till after his debtor be- came bankrupt — as in the case of goods sold to the bank- rupt upon a certain credit — the creditor was unable to prove his debt under the commission ; — a disability, which was productive of equal injustice, both to the creditor and the bankrupt. (2) But now, by the above section, all debts con- tracted before the act of bankruptcy, though not due till afterwards, can be proved, whether there is a written security or not, subject only to a deduction of 51. per cent, discount. Section VIII. Contingent Debts, Formerly Contingent debts were formerly not proveable under a able^unlets commission, whether die contingency was certain, or un- (l) Ex parte £. /. CoOTjooTzj/, 2P. (2) See Parsloe v. Dearlovf, Wins. 395. Hoskins v. Duperoy, 4 East, 458. 9 East, 498. Sect. 8.] OF THE PROOF OF DEBTS. 213 certain, unless it had happened before the act of bank- Contingent ruptcy. (1) Thus, even a bill of exchange (where the ' contingency is certain) if not due till after the bankruptcy, contin- could not (before the 7Geo. 1. c.31.) be proved (2);— happened any more than a debt on a policy of insurance (where the contingency is uncertain) could before the 19 Geo. 2. c. 32., unless the contingency had taken effect before the bank- ruptcy. And, in more recent times, a bond to secure the replacing of stock on a particular day could not be proved, unless the day had arrived, or the condition was broken before the bankruptcy. (3) Nay, even a warrant of attorney to confess judgment for an existvig debt, being accompanied with a defeazance that judgment should not be entered up unless default was made in payment by a particular day, could not be proved, if the bankruptcy took place before that day arrived. (4-) Many subtle and refined distinctions, also, were drawn between debts accruing pay" able on a contingency — and present debts liable to be de- feated on a contingency. (5) These cases (as Mr. Eden has observed in his able exposition of the new statute (6)) will be henceforth merely matter of curiosity, in consequence of the important alteration made by the statute in the proof of this species of debts ; — an alteration, that is certainly not the least valuable of the different amendments in the law of Bankruptcy, whether considered with a view to the effecting of substantial justice, or to the disentangling this species of proof from the intricacies, with which it was so long perplexed. The following is the alteration to which allusion has been made : By section 56 of the new act, if any bankrupt shall, be- But now fore the issuing of the commission, have contracted any Pfoveable (1) Ex parte E. I. Company, (2) Callowell \. CluUerbuck, cit. 2P. Wms. 396. Ex parte Groo7He, 2Str. 867. 1 Atk. 118. Ex parte Barker, (3) Ex parte JTing, 8 Ves. 334, 9 Ves. 110. Hancock v. Enttvistle, (4) Staines v. Fla?ick,8T.R.386, 3T. R.435. ■ (5) Ibid. (e) Page 1 1 S. P 3 QU OF THE PROOF OF DEBTS. [Ch. 9. Contingent debts. before or after the contin- gency. Whether a guarantee for pay- ment of goods proveable, before cre- dit has expired. debt payable on a contingency, which shall not have hap- pened before the issuing of the commission, the person with whom the debt has been contracted, may, if he think fit, apply to the commissioners to set a value upon it, and may prove the amount and receive dividends thereon ; or, if the value shall not be ascertained before the contingency happens, he may then, after the contingency, prove in respect of the debt, so as not to disturb any former divi- dend. He is however, of course, prevented from proving, — if, when the debt was contracted, he had notice of any act of bankruptcy committed by the bankrupt. Under this section, Mr. Eden thinks, that there is no reason now, why a guarantee for payment of goods should not be proveable against the bankrupt guaranteeing the payment, though the credit given to the purchaser be not expired (1); as well as a guarantee by the bankrupt to repay money lent to a third person, on receiving previous notice — although no notice has been given before the com- mission. (2) In each of these cases, the claim of the creditor against the bankrupt has certainly been held to be contin- gent; but, at the same time, it seems rather difficult for the commissioners to set a value on the chance of payment by the principal debtor — there being no rates of premium yet calculated for insurance against dishonesty, or in- solvency. If, indeed, the credit had expired in the one case — or notice had been given in the other — and de- fault made by the principal debtor — then, as a matter of course, the creditor could prove against the guarantee. For further observations as to the proof of con- tingent debts, — see post : " Marriage Articles," " An- nuities," " Bonds," " Insurance," " Costs," " Damages," « Sureties." (1) Ex parte Gordon, 15 Ves. (2) Exparte Mine/, 14Ves.l89.; 286. and see Utterson v. Vernon, 5 T. R. 539. 4T.R. 570. Sect. 9.] OF THE PROOF OF DEBTS. 215 Section IX. Creditors by Marriage Articles. The Courts were formerly much hampered in the Former in- relief, which they were able to afford the Bankrupt's wife conveni- and children, under any settlement or bond made by him from dis- for their benefit at the time of his marriage. For, as no ability of contingent debt could, as we have just seen, be proved, unless the contingency took place before the bankruptcy — and a provision of this kind is, from its very nature, generally uncertain and contingent, by reason of the different limitations as to death and survivorship — the wife and family of a bankrupt were often (under the old law) entirely defeated of the provision intended to be secured to them, — Lord Hardwicke observing, even in his time, that the different acts then existing had not made a sufficient pro- vision for the relief of such sort of creditors. (1) 'Thus, although the husband, by marriage articles or bond, cove- nanted with trustees to leave his wife a certain sum, " m case she survived him" - — or to pay to trustees a certain sum, *' m case she died, leaving childreii 'who shoidd attain the age of 21" — and the wife happened to be living at the time of the bankruptcy, — it was held, that the trustees could in neither case prove the amount under the commission. (2) And so, indeed, in every other case where the bankrupt had con- tracted to pay money on a contingency, which had not happened previous to the bankruptcy, and which might, or might not, happen afterwards. In some cases, however, where the contingency had happened after the bankruptcy, and before any distribution had been made of the bankrupt's (1 ) Ex parte Groome, 1 Atk. 1 1 7. Davies, 254. Stiiddy v. Tingcombe, 120. 5 Ves. 695. Ex parte Murphy, (2) Ibid. Ex parte Caswell, 2 P. 1 Sch. & Lef. 44. Ex parte Mara, Wms. 497. Ex parte Barker, 9 Ves. 8 Ves. 555. Ex parte Alcock, 1 V. 110. Tully V. Sparkes, Ld. Rayra. & B. 176. 1 Rose, 323. Brandon 1546. Str. 867. Ex parte Jef- v. Brandon, 2 Swanat. 321. fries, 7 Vin. 72. Ex parte King, P 4 216 OF THE PROOF OF DEBTS. [Ch. 9. Marriage articles. Creditors may now prove under the clause re- lating to contingent debts. When co- venant broken before bank- ruptcy, debt al- ways proveable ; effects, tlie Court frequently, from the extreme hardship of the case, and more especially when the wife had brought a portion to her husband, would recommend the creditors to make some provision for her, — which was in general attended to. (1) And when the assignees were obliged to come into a court of equity, to compel the performance of a trust, the Court would then, as they required equity, make them do equity, by securing the intended settlement to the wife. Whei'e, however, the contingency was certain^ — then, though it had not happened before the bank- ruptcy, the debt could, nevertheless, be proved under the 7 Geo. 1. c. 31., being debitum in prcesenti solvendum in futnro — as in the case of a bond payable at the death of the obligor, or upon any other event which was sure to happen within a reasonable time. (2) But now, in all these cases, where the bankrupt binds himself to pay a sum upon a contingency, the trustees or parties interested may, under the BQtli section of the new statute (3) already mentioned, apply to the commissioners to set a value on their contingent interest, such as it may be, and prove the amount under the commission ; — or they may wait till the contingency happens — if they think that the more advantageous course — and then prove for the whole sum that has become payable. Where, however, the bond or covenant to secure a marriage portion was forfeited or broken before the bank- ruptcy, it could always, in such a case, be proved under the commission ; for, by the breach of the condition, the penalty or sum covenanted to be paid becomes then a legal debt. (4) And though the arrears of interest, in the pay- ment of which default is made, are accepted after the for- feiture, it is not such a waver of the forfeiture as to prevent (1) Ex parte Greenivay, 1 Atk. 1 lo. Ex parte Mitchell, ibid. 1 20. Ex parte Groome, ibid. 118. Hol- land \. Calli/ord, 2Vern.661. (2) Ex parte Mitford, 1 Bro.398. (3) See ante, 215. (4) Ex parte Winchester, Davies, 530. 1 Atk. 116. Ex parte Elder, 2 Madd. 282. Ex parte Rotvlatt, 2 Rose, 416. Ex parte Dicken, Buck. 115. Sect. 9.] OF THE PROOF OF DEBTS. 217 the proof. (1) In every case, also, where there was a Marriage remedy at law against the bankrupt before the bankruptcy '_ upon the obligation he had entered into, the debt might and so always be proved under the commission (2) ; as where he ^jngdy"^^ entered into a bond or covenant to pay or invest money law forthwith, or as speedily as possible, without any step being ^^^'j^"^ j taken by the other party. But there are still some cases where a contingent pro- Where vision in a marriage settlement cannot be proved under settlement a commission; — as where a provision of this kind is made ^o«rf's pro- of the husband's property, and is expressly contrived for the P^''ty> purpose of avoiding the operation of the Bankrupt laws, avoid the Thus, if a bond be given by a trader upon his marriage to operation trustees, to be forfeited upon the contingency of his becom- Bankrupt ing insolvent, or a bankrupt, such a bond cannot be proved, — /«"'> debt on the principle, that it would be defeating the effect of the ^j^jgl^ Bankrupt law, and would be a fraud against the rest of the creditoi's. (3) So a settlement by the husband (though not in trade at the time, or intending then to trade) of free- hold and leasehold estates, to the use of himself for life, unless he should embark in trade and in the life of his wife become bankrupt — and from his decease or bankruptcy, then to secure an annuity to his wife — was, upon his afterwards engaging in trade and becoming bankrupt, held void as against his (4) creditors. If, however, the wife brings a portion to the husband, Contra then her fortune, or a proportionable part of the husband's .f'^f^ . •^ ^ r f f wire brings property, may be settled upon the husband until his bank- a portion ruptcy, and then to her separate use, or to the use of the ^ ^^^ . (1) 1 Atk. 118. phi/, 1 Sch. & Lef. 44. In the (2) Ex parte Smith,C. B. L. 212. three first of these cases, the rea- Ex parte Grainger, 10 Ves. 349. sons for the judgment of the Court (3) Ex parte Hill, C. B. C. 228. are not noticed by Mr. Cooke ; it Ex parte Matthews, ibid. Ex parte is uncertain, therefore, whether it Bennet, ibid. 229. Ex parte Cooke, proceeded on the ground of the 8 Ves. 353. Ex parte Hennay, contingency, or the fraud; most pro- 1 Sch. & Lef. 46. Ex parte Oxley, bably, however, on both grounds. 1 Ball. & B. 257. Wise's Case, Ca. (4) Higinbotham v. Holme, 1 9 Ves, temp. King, 46. Ex parte Mur- 88. 218 OF THE PROOF OF DEBTS. [Ch. 9. Marriage articles. But proof limited to the amount ofher fortune. children of the marriage; and if^ in such a case, any part of the wife's fortune has been lent to her husband, the debt may be proved (1) under a commission against him. As, where in articles for the settlement of 10,000/. (which was only part of the wife's fortune) upon the husband till his bankruptcy, he covenanted to give a bond for 5000/. upon the same trusts — and then received all his wife's fortune, without making any settlement of his property on her, — proof was admitted under his bankruptcy, not only for the 10,000/., but also for the 5000/., or for so much thereof as the value of the wife's property received by the husband would extend to, beyond the sum of 10,000/. (2) So, where a trader, in consideration of his wife's fortune, con- veyed his house to trustees, to his own use till death or bankruptcy — and then, in either event, in trust to raise 1000/. for her separate use, — it was held to be a fair and valid settlement (in the nature of a mortgage) to secure the wife's fortune. (3) In one case, also, where the intention of the parties was, that a bond by the husband to trustees for his wife's fortune should be proveable in the event of his bankruptcy — and it appeared that, through some mistake, it was omitted to be so provided in the marriage settlement, — the bond was permitted to be proved under the com- mission. (4) But in every case, where a settlement is made in consi- deration of the wife' s fortune, the proof of the trustees will be limited to the amount of what the husband has actually received of her fortune. (5) For, where a trader on his marriage received a portion of 600/. with his wife, and in consideration thereof and of the marriage gave a bond for 1000/. to a trustee payable in six months, the interest to himself for life if he should continue solvent — but, in case of (1) Lockyer v. Savage, 2 Str. 947. Ex parte Browne, C. B. L. 215. Stretton v. Hale, 2 Bro. 490. Ex parte Hinton, 14 Ves. 598. (2) Ex parte Cooke, 8 Ves. 555. (5) Higginson v. Kelly, 1 Ball. &B. 252. (4) Ex parte Verner, ibid. 260. (5) Ex parte Youngi Buck. 179. sMadd. 124. Sect. 9.] OF THE PROOF OF DEBTS. 219 his death or insolvency, the interest to his wife for her life, Marriage- and the principal among the children of the marriage, — articles. Lord Redesdale only allowed proof to be made for the 600/., and refused to permit the remaining 400/. to be proved, that being the property of the husband, and the settlement of it therefore fraudulent, according to the authority of all the cases. (1) So, where by settlement previous to the marriage of the bankrupt, 6000/. stock (half of which was the fortune of the wife) was assigned to trustees, in trust to pay the dividends to the bankrupt for life, or until he should become bankrupt — and after his death or bankruptcy, then to pay the same to the wife ; and the trustees were thereby directed also to stand pos- sessed of a bond for 2000/. (given by the bankrupt to the trustees) in trust, if there should be no issue of the mar- riage after the death of the bankrupt, to pay the interest thereof to the wife for life, by nsoay of increase to the pro- vision before made for her — and in case of issue living at the death of the bankrupt, the bond was to be delivered up to be cancelled ; and the wife was living at the time of the bankruptcy, and there was no issue ; — Lord Eldon, under these circumstances, held that the bond was not proveable under the commission. (2) And in another case, where the husband covenanted, in consideration of certain contingent interests of ihe wife being conveyed to him, that his executors should, six months after his death, pay 3000/. to trustees, — it was held, that they could only prove to the amount of what the husband's contingent interest in the wife's property sold for under his bank- ruptcy. (3) In some cases, the trustees will not be permitted to Or to such prove for the whole amount even of the wife's property, P^"!^ ?"'>"' whether received by the husband or not, if any part of such eluded ii» (1) In re Meaghan, 1 Sch. & (3) Ex parte Young, 3 Madd. Lef. 179. 124. Buck. 179. (2) Ex parte Taafe, 1 G. & J. 110. 220 OF THE PROOF OF DEBTS. [Ch. 9. Marriage articles. the settle- ment. Where the bankrupt makes a false repre- sentation of his pro- perty at the time of the marriage, trustees may prove for sum cove- nanted to be settled. property does not come within the terms of the settlement. Thus, where the husband gave a bond to a trustee to enable him, in case of bankruptcy, to come in as a creditor, as well for the sum of 500/., as for so much beyond that sum as could be ascertained to be the distributive share of the wife in ho- father^ s properly, — and the wife was entitled (be- sides this 500/.) to a legacy of 80/. under the will of her brother, which was received by the husband, — Lord Eldon allowed the trustee only to prove for the 500/., and ordered the claim for the 80/. to be struck out. (1) Where the husband makes a false representation at the time of his marriage of the amount of his oxsoii property, q-uA covenants with trustees to settle estates or money upon his wife, which he is not entitled to or does not possess, and the marriage takes effect upon the faith of such represent- ation, — then the trustees, in order that the wife may not be left wholly destitute by such a fraud, will be permitted to prove for the amount of the sum which was so covenanted to be settled. As where, by a settlement made before marriage, it was recited that the intended husband had 1000/i and upwards employed in his trade, and it was agreed that 500/. part thereof should be vested in trus- tees, upon trust for the separate use of the wife for life, and after her death, then for the husband and the children of the marriage — and it appeared, that the representation in the settlement was unfounded — that the money was never paid — and the husband became a bankrupt, and died, leaving his widow surviving, but no children; — upon a petition by the trustees to prove for the 500/., Lord Eldon said, that on the authority of the case of Montejwri v. Montefiori (2), and many others, the husband was bound to make good the representation in his marriage settlement ; and he made an order, permitting the trustees to prove, and directing it to be recited in the order, that it appeared that the repi'e- sentation in the marriage settlement was y«/5f at the time (1) Ex parte Hodgson, 19 Ves. 206. (2) 1 B1.363. Sect. 9.] OF THE PROOF OF DEBTS. 221 it was made, and that the marriage was had upon the faith Marriage of that representation. (1) So, where by settlement previ- " ^^'^^^^' ous to the marriage the husband covenanted, in consider- ation of the marriage, to transfer immediately afterwards, or whenever requested by the trustees 2000/. stock (which was falsely alleged to be standing in his name) into the names of the trustees, upon the trusts of the settlement; and the trustees frequently after the marriage requested the husband to transfer the stock, which he repeatedly promised to do, but never did, and became bankrupt, — the trustees were in this case permitted to prove the value of the 2000/. stock, upon filing a previous affidavit as to the time at which the request was made — with refer- ence to the then price of stock, which the commissioners were directed to ascertain. (2) Whenever the bond, or covenant, is for the investment When of money or transfer of stock, zipon request, the specific pr^o^ ^e- f i 111, , .,^, gulated by time oi the request should be correctly ascertained ; tor the the price amount of the proof will be regulated, by the price of the of stock. stock at the time the request was made. (3) If the request has not been made before the bankruptcy, the amount of proof will then, perhaps, depend upon the price of the stock on the day of commission. (4) And in all these cases — whether the sum permitted to be When proved is the original property either of the husband, or of ""sbj^nd the wife — if the husband is entitled to the interest for life, to a life- or to a subsequent contingent interest, the Court will order ^"^^'"fist >« the dividends on the sum proved to accumulate as a fund, perty, di- the interest of which fund the assignees will be permitted vidend to .,,,,, . .11 1-r • . accumu- to receive, it the bankrupt is entitled to a iiie-interest in late. the property — the fund itself being kept together, to await any future contingency declared by the marriage settle- ment. When that contingency takes place, it will then either be applied to the purposes of the trust, or be distri- (1) Ex parte Gardner, 1 1 Ves.40. (5) Ibid. Ex parte Mace, 8 Ves. (2) Ex parte Campbell, 16 Ves. 335. 244. (4) Ex parte Day, 7 Ves. 303. Ex parte Leigh, 1 Mont. Dig. 229. 222 OF THE PROOF OF DEBTS. [Ch. 9. Marriage buted amongst the creditors of the bankrupt, as the cir- firttd£s^ cumstances of the case may be. (1) Section X. Creditors of a Bankrupt Executor, or Tmstee, and herein of the Executors of a Creditor. Trust pro- Where an executor or trustee becomes bankrupt — as he afffeitedbv ^^^^ "^ auter droit, his bankruptcy does not take away his the bank- rights as executor, or trustee ; and whatever property he ruptcy. j^^y. pQssgss in either capacity, which can be distinguished from his own, is not affected by the assignment of the commissioners (2) — the assignees being bound to account for it, and deliver it up to the persons who are really en- Stock may titled to it. And in such a case, it is specially provided f •*^'^dT* by the new statute (3), that where the bankrupt has any new trus- stock standing in his name as trustee, either alone or tee. jointly, the Lord Chancellor may order the stock to be transferred to such person as he shall think fit, upon the same trusts as it was subject to before the bankruptcy. When But where the testator's property cannot be distinguished be°mide ^ from the general mass of property in the possession of the bankrupt, or when the bankrupt has been guilty of a breach of trust in applying trust property to his own use, proof must then be made for the amount due to the tes- tator's estate, in such manner as shall be directed by the Bankrupt Lord Chancellor. Until lately the commissioners in such V°^ ] a case frequently admitted the bankrupt to prove against prove his own estate, without obtaining previously any order of against his ^^ Chancellor; but as this proceeding introduces into his tate, with- character the double and inconsistent relation of debtor out an and creditor — and as the commissioners have no power, like the Chancellor, to annex a condition to the proof, that (1) Holland v.CalUford, sVern. (2) Beiinetw. Daines,2P.y^ms. 662. Ex parte Groome, 1 Atk. 117. ."18, Rex v. Egginton, 1 T. R.570. Ex parte Sviith, C. B. L. 212. Ex Hoivard v. Jemmett, 3 Burr. 1369. p&vie Mitford, 1 Bro. 398. Strat- Ex parte Ellis, l Atk. 101. Ex ton V. Hale, 2 Bro. 489. parte Lleivellyn, 1 C. B. L. 137. (3) Section 77. Sect. 10.] OF THE PROOF OF DEBTS. 223 the funds shall not come into the hands of the bankrupt, — Executors and t tees. Lord Eldon, upon a recent (1) occasion, very strongly dis- "" '^^^' countenanced proof being admitted under these circum- stances, on the mere authority of the commissioners. And, in a subsequent case, where the bankrupt, who was exe- cutor of one of his creditors, proved the debt under his own commission, without previously obtaining the order of the Lord Chancellor, and upon that proof signed and carried his certificate, — Lord Eldon ordered the proof to be expunged, and sent the certificate back to the commis- sioners. (2) It is therefore now settled, that a bankrupt executor is not entitled to prove under his own commis- sion, without the special order of the Court. And the Court, moreover, will not make such an order, except in a case perfectly harmless — nor without special directions that the dividends shall not be received by the bank- rupt. (3) Where the bankrupt has been guilty of a breach of trust, Where or has committed a devastavit^ the Court will not permit j^^"*^'""?' him to prove at all, but will order one of the legatees, or mitted a other persons interested in the property of the testator, to breach of prove on behalf of himself and the other parties in- permitted terested. (4) Thus where two executors sold out trust to prove; money in the funds, for the benefit of one of them who died insolvent, and the survivor afterwards became bank- rupt, — it was held, that the person interested in the trust but a fund might prove against the estate of the bankrupt the '®sa*^^> amount of the stock sold out, according to its value at the time of the bankruptcy. The funds in this case had risen considerably, between the time of sale and the date of the commission; and the order was made with reference to the rule in equity, that where a trustee has made use of the trust fund, he may be compelled by the cestui que trusty (1) Ex parte 57^aM;, 1 G.& J. 127. (s) Per Lord Eldon, 1 G. & J. where there is a luminous judg- 161. ment of Lord Eldon's upon this, (4) Ex parte Shakeshaft, 3 Bro. and other points. 197. Ex parte Fairchildy 1 G. & (2) Ex parte Marshall, 1 G. & J. 221. 224. OF THE PROOF OF DEBTS. [Ch. 9. Executors and trus- tees. or a cre- ditor. Where one trus- tee lends trust mo- ney to the other. Cestui que trust shouldjoin in proof. As to ap- pointment ofreceiver. How di- vidends ordered to be paid. either to replace the fund — or to account for what he made of it — as it should appear most for the benefit of the cestui que trust. (!) And it seems, that such an order for proof may be obtained in the first instance, without a previous application (2) to the commissioners. In one case, where the property was small, a creditor of the testator was permitted to prove for the amount of such part of the tes- tator's property, as had come to the bankrupt's hands. (3) Where a sum was paid to one trustee on account of the trust fund, and he lent it to the other trustee upon note, and both became bankrupt, — proof was permitted to be made for the amount under each commission. (4) Where a trustee himself proves under a commission, the cestui que trust should join in the proof; but if there is any difficulty in obtaining the attendance of the latter, then an order may be obtained for the trustee to prove alone. (5) In some cases a receiver has been appointed, on petition^ to prove what is due, and to receive the dividends on the pi'oof. (6) But where the testator's property is consider- able, or it is necessary to take an account of the assets, Lord Thurlow held, that the creditors of the testator must proceed bi/ bill {7); and it has also more recently been decided by Lord Eldon, that a receiver can only be ap- pointed In/ bill. (8) In these cases the Lord Chancellor generally directs, for the security of the parties interested, that the dividends shall be paid into the Bank by the assignees, subject to further orders. (9) But where a cestid que trust is entitled absolutely to any share in the trust property, and has attained twenty-one, the assignees (1) Ex parte Shakeskr/ft, 3 Bro. 197. Ex parte Fairchild, 1 G. & J. 221. (2) Ex parte Moody. Ex parte Preston, 2 Rose, 413. (3) Ex parte Leeke, 2 Bro. 596. (4) Keble v. Thompson, 3 Bro. 112. (5) Ex parte Dubois, 1 Cox, 3 10. Beardmore v. Cruttenden, C. B. L, 211. Green, 149. (6) Ex parte Ellis, 1 Atk. 101. Ex parte Llewellyn, 1 C. B. L. 137. (7) Ex parte Leeke, supra. (8) Ex parte Tupjter, 1 Rose, 179.; and see ex parte Markland, 2 P. Wms. 546. Ex parte Whil- field, 2 Atk. 5] 5, (9) Ex parte Leeke, supra. Ex parte Brookes, C. B. L, 138. Ex parte Shakeshaft. Ex parte Moody, Ex parte Fairchild, supra, 1 G. & J. 167. Sect. 10.] OF THE PROOF OF DEUTS. 226 in that case, will be ordered to pay to him at once the Executors dividends payable upon his proof. (1) ^^^^ ' If a legacy be given to a legatee, payable at twenty-one, or marriage, with interest — it is a vested legacy, and the jeJi^'v^ legatee may prove it under a commission against tlie exe- proveable cutor; — or, if he has not attained twenty-one, or been "y^"ele- . . Ml 1 I gatee, or married, his guardian, upon petition, will then be per- his guar- mitted to prove it. (2) And where five children of a bank- ^'^"• rupt had vested interests under a will (of which the bank- rupt was executor) in certain trnst funds after the death of their mother, subject to a power of appointment to be exercised by their father and mother, or the survivor of them, and the bankrupt had converted the trust property to his own use, — it was held, that as no appointment had been made, each of the five children was entitled to prove one fifth part of the trust funds against the estate of the bankrupt, notwithstanding their father (who was the bankrupt) and their mother were both still alive. (3) Where an executor, who was directed to carry on his Where an testator's partnership trade, exceeded his authority, by em- gxc'^^d^Hs ploying the assets in the trade to an extent not warranted authority by the will — and the surviving partner and the executor be- '1 ^^ ^"'' •' " ^ ... ploynient came bankrupt — the bankrupt executor in this case was of the allowed to prove the excess of the assets so employed under assets in a joint commission, against him andthesurvivingpartner.(4') excess But if an executor, who is directed to carry on his tes- '"^7 be tator's trade, do not go beyond his authority, then the ^ / assets employed by him in the trade can never be proved when he under the commission; for they are in this case a part of "°^* "^.^ , , ... exceed his the capital of the trade to pay its debts; but this is not the authority. case, where he commits a breach of trust, by using the as- sets to an extent not authorized by the will. (5) If the bankrupt, besides being executor, is beneficially Where '■ executor (1) Ex parte KettlcweU, 1 G. & (4) Ex parte Richardson, Buck. J. 323. 203. 421. Ex parte Garland, (2) Walcottv. Hall, 2 Bi-o. 505. 10 Ves. 110. Contra Hankcij v. (5) Ex parte Beilhy, 1 G. & J. Hammon, ibid. 210. 167. (5) Ibid. 209. 226 OF THE PROOF OF DEBTS. [Ch. 9. Executors and trus- tees, is also be- neficially entitled, and com- mits a de- vastavit. Where an executrix marries a bankrupt. Costs not proveable, where ex- ecutor pleads a false plea. Where the credi- tor of a bankrupt dies, his executor may prove. Where the bankrupt a co-exe- cutor of the cre- ditor, then the other executor ordered to prove. entitled to any part of the testator's property — his interest, of course, passes to the assignees ; and the Lord Chan- cellor will, if necessary, let the assignees sue in the bank- rupt's name, in order to get in the effects. ( 1 ) And though the executor had committed a devastavit) who was entitled in his own right to a specific legacy, which was sold by his assignees, — it was held, that the produce of such sale in their hands was not liable to make good the devastavit ; but that the parties beneficially entitled must prove to the amount of the devastavit. (2) If an executrix marries, and her husband becomes bank- rupt, having previously admitted assets, in answer to a bill filed against them, — the assets in this case become a debt of the husband, and may be proved under his commission. (3) Costs of suit incurred by a bankrupt executor in an action (brought against him after the issuing of the com- mission) in which he pleads a false plea, are not proveable under the commission. (4) If the creditor of the bankrupt is dead, the proper person to prove is, of course, the creditor's executor or adminis- trator. And where a debt was forgiven the bankrupt by a testator, upon condition that the bankrupt should pay an annuity to his sister, but if he failed in doing so, the executrix was to call in the whole debt — and default was made by the bankrupt in the payment of the annuity ■ — the executrix was permitted in this case to prove the debt. (5) Where the bankrupt, and another person who was solvent, were executors of the creditor. Lord Thurlow permitted the solvent executor to prove the debt under the commis- sion, notwithstanding a pending suit in the ecclesiastical court as to the executorship: but the dividends were ordered to be paid into the Bank, pending the contest in the ecclesiastical court. (6) (1) Ex parte Butler, Amb. 74. Bedford v. Woodham, 4 Ves. 40. (2) Geary v. Beaumont, 3 Meriv. 451. (3) iSch.&Lef. 173. (4) Howard v. Jcmmet, 5 Burr. 1568. (5) Ex parte English, 2 Bro. G09. ; and see ex parte Bridges, 4Madd.269. ante. (6) Ex parte John Shakeshafl, 3 Bro. 198. Sect. 11.] OF THE PROOF OF DEBTS. 227 Where an assignee becomes bankrupt with monies in his Executors hands, his estate will not be entitled to any dividends on ^"^ the proof made by him under the estate of which he was assignee, until full reimbursement is made to the last **P^'"^''*" °, , assignee mentioned estate of the money, which he had in his hands becomes at the time of his bankruptcy. (1 ) bankrupt. Section XI. Creditors hy Annuities. The original cases in Bankruptcy, as to the proof of Former annuity bonds forfeited before the bankruptcy of the ["'^^^''^^p'^" grantor of the annuity, considered the penalty of the bond as the debt — not indeed as wholly receivable by the obligee, but to stand as a security for the payment of the annuity ; — and I^ord Hardwicke's first rule was, if there were sufficient assets, merely to order the annuity to be paid half yearly, down to the death of the annuitant. But this mode of proceeding was afterwards altered (2) by him, for the better convenience of distribution. For, if the an- nuity was to be received from time to time as an accruing debt on the estate, that would tend to make the division of the estate perpetual ; and there could, at all events, be no final division during the annuitant's life. To avoid, there- fore, this inconvenience — and in order to attain a dividend at a certain time, the Courts afterwards allowed a value to be set on the annuity (3), and the annuitant to come in as a creditor for that value under the commission. There 49G.S. was also a distinction made before the 49 G. 3. c. ] 21. s. 1 7. § '7^ (which was the first act that authorised direct proof of annuities eo nomine) between a covenant, and a bond, for the payment of an annuity : in the first case the arrears only of the annuity could be proved — in the last, if the (l)Exparte^igwo/c;,2Mad.470. (5) Ex parte Arllsy 2Ves.4S9, <2) Per Lord Eldon, 1 9 Ves. 245. Cottrdl v. Hooke, Doujx. 97. 2 2 228 OF THE PROOF OF DEBTS. [Ch. 9. Annuities. Provision of the new statute. Mode of ascertain- ing the value. bond was forfeited befo)-e the bankruptcy, then the value of the annuity, as well as the arrears, was proveable. ( 1 ) And this rule of setting a value on the annuity was con- fined to cases, where the annuity was secured by some instrument with a penalty, which had become forfeited BEFORE the bankruptcy of the grantor, by his permit- ting the annuity to become in arrear and unpaid. (2) For where there were no arrears due at the time of the bank- ruptcy, it was considered in some cases, that there was no debt then due at law, but a mere contingency as to the penalty becoming a debt injiituro, by the subsequent non- payment of the annuity. (3) If a forfeiture, however, had once happened, the receiving payment afterwards of the arrears was held not to be such a waiver of the forfeiture, as to take the case out of the general rule. (4) The new statute adopts a similar provision for the proof of annuities, as was introduced by the 49 G. 3. c. 121. s. 17., with additional directions as to the mode of calculating the value. Thus, by sect. 54. it is enacted, that by whatever assurance the annuity is secured, and whether there are, or are not, any arrears due at the time of the bankruptcy, the annuity creditor may prove for the value of the annuity ; which value the commissioners are to ascertain, with regard to the original price given for the annuity, deducting therefrom such diminution in the value, as shall have been caused by the lapse of time, since the grant of the annuity to the date of the commission. This mode of ascertaining the value is consistent with the rule laid down previously by Lord Eldon, — who held. (1) Ex parte Thistlewood, Doug. 249. (2) Ex parte Le Compte, 1 Atk. 251. Ex parte Bolton, Ibid. Ex parte Burrow, 1 Bro. 268. Ex parte Roivlatt, 2 Rose, 416.; and see CuUen, 92. (3) Perkins v. Kempland, 2 Bl. 1106.; but see Pattison v.Bankes, Cowp. 540., \vhcre there was no forfeiture before the bankruptcy, and yet the bond was held prove- able under the 7 G.l. c.51., as be- ing for a debt payable at a future day. See also Brooks v. Lloyd, 1 T. R. 17., which was the case of a bond payable by instalments, and which was held proveable for the same reason, though there was no defpult before the bankruptcy. (4) IVi/lliev. Wilkes, Doug. 519. 2BI. 1108. ^eCt. IJ.] OF THE PROOF OF DEBTS. 229 that if there were not any special circumstances, the com- Anmdtics. missioners should ascertain the value upon the basis of the original sum paid, qualified by the time of enjoyment. (1) And the state of the money market is not a circumstance, which can affect this rule. (2) Under some ciixumstances however, the rule, if strictly followed, might be productive of injustice. As, where a person in a bad state of health (which is known to the grantor) purchases an annuity of hira for a sum less than the usual market price, and soon afterwards recovers, whereby the value of the annuity is, of course, considerably improved; — in this case, as the pro- bability was (when the annuity was granted) that the pur- chase would turn out to the disadvantage of the annuitant, it seems but just, that he should be allowed the benefit of his restoration to health having operated in his favour. (3) And, indeed, in such a case before the new statute. Lord Eldon permitted proof to be made, upon a calculation with reference to the age and improved health of the annuitant, notwithstanding the value so ascertained exceeded the price originally given for the annuity, and the grantee had enjoyed the annuity for the space of two years. (4) Sir J. Leach, however, in a recent case decided, that the commissioners are now precluded by the 54th section of the new statute, from taking into consideration the altered state of the health of the annuitant: and that where the consideration for the annuity is not money, but property, the price paid by the grantee for that property is not the criterion of value, if such value be altered by ac- cidental circumstances. (5) In a case of a peculiar kind which came before Lord Thurlow, he permitted the whole penalty of an annuity bond to be proved, without regard to the time of enjoyment, and without any deduction of the payment of the annuity. (6) Where an annuity creditor applied to prove, and was Where annuity (1) Ex parte Whitehead, 19 Ves, (s) Ex parte Thisllewood, 1 Rose, 557. 2 Rose, 358. 1 Meriv. lO. 290. 19 Ves. 236. 127.; and see 1 Atk. 251. (4) Ibid. (2) Ex parte Webb, 2 G & J. 2 9. (5) Ex parte Fisher, S G. k J. 1 02. (G) Ex parte £7ig/i*(%, 2Bro. 609. VOL. I. * Q 3 230 OF THE PROOF OF DEBTS. [Ch. 9. Annuiticx, void under the annuity act, gran- tee may prove ba- lance of original consider- ation. Where consider- ation not proveable. Where annuities granted by bankrupt for inade- quate con- aideration. Annuity creditors now upon the same footing as other creditors. refused, on the old principle, that the bond was not then forfeited — but it appeared afterwards that the bond was in reality void under the provisions of the annuity act (1) — and he then petitioned to prove for the sum actually ad- vanced — Lord Loughborough dismissed the petition, saying, that as he had insisted on his security at the date of thccommission, it was not the same debt. (2) But in a similar case before Lord Eldon, where the creditor had not insisted on his security, the grantee was permitted to prove the balance remaining due of the money advanced. (3) Where B. purchased an annuity of C. through the agency of the bankrupts, and the consideration money was received by them, as agents for C, and placed to C.'s ac- count, — it was held, that B. could not prove the consider- ation paid, unless the grant of the annuity was merely colourable, and contrived by the bankrupt for the purpose of obtaining B.'s money for their own use. (4) A deposit of deeds, as a further security for an annuity previously granted, we have seen (5), is not within the provisions of the annuity act, — and such deeds, therefore, need not be registered. Where it appears that annuities have been granted by the bankrupt for an inadequate consideration — such as having been bought at only five years' purchase for a good life — though the assignees may not object to the proof, yet a special meeting of the creditors should be called to decide, whether the assignees should consent or not to admit such proof. (6) Annuity creditors are not compelled^ any more than any other creditor, to come in under the commission, but may sue the bankrupt if they choose, and decline to prove. But they cannot sue any surety for the annuity without proving; nor can they now proceed against the bankrupt (as they could formerly under a deed of covenant for securing (7) the annuity) after he has obtained his certifi- (1) 17 G. 3. C.26. (2) Ex parte James, 5 Ves. 708. (3) Ex parte Wright, 19 Ves. 255.; and see Shove v. Webb, 1 T. R. 752. Walker v. Lkcarry, 6 Esp 98. Ex parte Brockliss, Buck. 406- (4) Ex parte Shaiv, 2 G.&J. 106. (5) Ante, 206. (6) Ex parte Cator, 1 Bro. 267. (7) Fletcher v. Bathurst, 7 Vin. 7 1 . pi. 4, 4 Burr. 2446. Cottrcll v. Hookc, Douff. 93. Sect. 11.] OF THE PROOF OF DEBTS. 251 cate ; for, by the present act, the certificate is made a dis- Annuities. charge from all claims, either of the annuitant or the surety, in respect of the annuity. (1) Where the annuity is secured on freehold or leasehold ^^here property, which is insufficient to satisfy the arrears due, as charged well as the value of the annuity, an order will be made for <^" lands, the sale of the property on which the annuity is charged ; and the gi'antee will afterwards be allowed to prove for the residue. (2) A mere stipulation for the payment of annual interest, Anengage- for the forbearance of a sum of money, cannot be proved pay annual as an annuity ; for it is not an annuity in any reasonable interest sense of the term — neither does it come within the mean proved ^ ing of the statute. An annuity implies, that the princi- an annuity. pal sum is gone for ever, and is to be satisfied by yearly periodical payments. (3) It has been stated, that arrears of an annuity subse- quent to the commission are not the subject of pi-oof (4-); but no authority is cited for this position, which, indeed, does not appear very reasonable in itself. For, as the creditor, in proving for the entire value of the annuity, proves in fact for the probable^ though at the same time the uncertain, amount o^ aWJitfure payments — which pay- ments would, of course, when they fell due, become of themselves mrears subsequent to the commission — it is some- what inconsistent to shut him out from proof of arrears which are actually due, and in regard to which there can be, therefore, no uncertainty as to the amount. The new statute provides, also, for the relief of the Provision surety for the payment of an annuity by the bankrupt, [l^^^ ^"'^^" (which the 49 G. 3. c. 121. was deficient in) as well as for the relief of the bankrupt himself from the contingent claims of the surety. For by section 55. (besides declaring (1) Section 55.; and see also (3) Winter v. Mouselci/, 2 B. & Sectio7i 121. A. 806, 807. (2) Ex parte Kei/, 1 Madd. 426. (4) 1 G. & J. 346., note (a). Ex parte Slack, 1 G. & J. 346. Eden's B. L, 11 5. O 4 232 OF THE PItOOF OF DEBTS. [Cll. 9. Annuiiies. it to be unlawful for any person entitled to an annuitj granted by the bankrupt to sue any person, who may be a collateral surety for the payment of the annuity, until the annuitant shall have proved under the commission for the whendis- value of the annuity) it is enacted, that if the surety, charged; j^fj-g^. g^.}^ proof, shall pay the amount so proved, he is discharged from all claims in respect of the annuity ; and he is only liable to be sued for the accruing payments, in the event of his failing to pay the sum proved, before any payment of the annuity subsequent to the bankruptcy be- comes due; — nor is he then liable to j^ay beyond the amount so proved, with interest at 4 per cent, from the time of his receiving notice of such proof, and of the amount when may thereof. And after such payment or satisfaction by the stand m surety, he may then stand in the place of the annuitant, in the place p i ■- i r i • i of the an- respect or the proof, to the amount ot the sum so paid or nuitaat in satisfied ; and the certificate of the bankrupt is then declared his proof. ^^ '^^ ^ discharge from all claims of the surety, as well as of the annuitant, in respect of the annuity. The surety is also entitled to credit in account with the annuitant, for any dividend which the latter may have received, before he can be called upon to pay the whole sum proved by the annuitant under the commission. When It may still, however, be a doubtful point, when the annuity annuity creditor, after provino; the value of the annuity, creditor . . ■ n , ,• • , i , • , comes ivnd receiving all the dividends he can receive upon sucli upon the proof, comes upon the surety for the deficiency after the surety for J , . , , . "" .„ ■ i " • , any defici- bankrupt has obtainetl his certihcate, — whether, in such a ency after case, the certificate would discharge the bankrupt from the bankrupt , . ^ i -n t i • i- i has e;ot his claims OI the surety, lor, ir the annuity creditor chooses certificate, to avail himself to the extent of his proof, without giving whether ^"y "ot'ce to the suret}', or making any claim against him bankrupt until after a final dividend is declared, the surety would a^to^thr have no opportunity of proving under the commission. It surety. might, indeed, be held, that in order to acquit himself, as against the annuity creditor, and to entitle himself to any claim against the bankrupt, he is bound to take immediate It Sect. 12.] OF TFiE PROOF OF DEBTS. 233 notice of the annuitant's proof, and to pay the amount so Annuities. proved; for, by the above section, the annuitant is not compelled to give the surety notice of the amount of the proof, except indeed so far as to entitle himself to interest from the surety upon the sum proved. (1) Section XII. Apprentices, Clerks, Scrxnnis, and Children. Where a sum of money had been paid as a premium Former with an apprentice, and his master became bankrupt, it Practice as . PI • • 1 r 1 to appren- was the practice or the commissioners, berore the new tices. statute, to recommend it to the creditors to allow the apprentice a gross sum out of the estate, for the purpose of binding him to another master — instead of obliging the apprentice to come in as a creditor under the com- mission. (2) But this proceeding, though equitable and just in itself, was only matter of indulgence, and not of right ; for if it was objected to, the Court could, in strict- ness, only order the apprentice to be admitted as a cre- ditor. (3) The bankruptcy, also, of the master was held no discharge, in law, of the apprentice's indentures. (4) But now, by the 49/fA section of the new act, it is declai'ed, Discharged that the commission shall enure as a complete discharge of "^^i^tei^s the indentures of an apprentice; and if any sum shall have bank- been paid as an apprentice fee, the commissioners may, "^"^ '^^f upon proof thereof, order any sum to be paid to or for the premium use of the apprentice which they shall think reasonable, »>''iy ^^ r^- regard being had, in estimating such sum, to the amount of the premium which has been paid, and to the time that the apprentice shall have resided with the bankrupt. (l) And see Watlchis v. Flana- (2) Bar wells. Ward, lAtk. 261. gan, 1 Bing. 413. 1 G. & J. 199. (3) Ex parte Sundbi/, lAtk. 149. ".3B. &A. 1S6. Welsh v. Welsh, (4) Buckington v. Shepton, 4M, &S. 333. 8 Mod. 235. Str. 582. 2 Ld. Raym. 1352. 234? OF THE PROOF OF DEBTS. [Ch. 9. Children. With respect to servants^ also, — by the 48^^ section of p'TT J the act, a power is given to the commissioners to order six servants months' wages, or salary, to be paid to any servant, or clerk, ^^y ''Th ' '^^ *^^ bankrupt ; but if more than this is due, then the wages. clerk, or servant, must prove for the difference. A child A child living with the father, and earning money for may, m itself, may be admitted as a creditor under the com- sonie cases, ' j be ad- mission against the father, if he has received that money mitted a ^ ^j^^ child's use. But Lord Hardwicke said he was creditor. under some difficulty in making such an order, for the sake of the precedent ; as it might be dangerous in London to lay it down as a general rule, that every child who earns money whilst living with his father, which the latter receives, may claim it as a debt in the event of his father's bankruptcy; for a father frequently, as was remarked in that case, sends out his son to work as a journeyman, and his earnings then are supposed to belong to the father. (1) And where a son had lived with his father seven years as a clerk, receiving only board and lodging, and there was no actual contract for wages — though the father swore it was always his intention to pay him something for his services, and the assignees did not object — yet Lord Eldon, though he lamented the hardness of the case, said, that as there was in reality no contract for wages, he could make no order for the son to prove. (2) Debts owing by the bankrupt to children, or other relations, are always watched in Bankruptcy with great sus- picion — with greater, perhaps, than the justice of the case frequently requires ; since a man in pecuniary distress, as has been well observed, is more likely to apply to his relations, than to strangers, for that assistance of which he is in want. (3) ( 1 ) Ex parte Macklin, 2 Ves. 675. he had received from the managers This case arose out of the bank- of different theatres, riiptcy of Macklin, the comedian, (2) Ex parte Glover, 1 Mont, and the petitioner was his daugh- Dig. 165. ter; whose earnings, as an actress, (3) Per Lord Eldon, 1 Ves.& B. 48. Sect. 13, l*.] OF THE PROOF OF DEBTS, 2SS Section XIIL Awa7-ds. An award, if made before bankruptcy, creates such a debt as may be proved under the commission. Therefore where a man was taken upon an attachment for not per- forming an award, and afterwards became bankrupt and obtained his certificate, he was ordered on motion to be discharged. For though an attachment is in the nature of a contempt, which is not purged by bankruptcy, yet an action of debt will he on an award j and the bankrupt ought not to be arrested, prosecuted, or impleaded (1) for any debt due before the bankruptcy. But where proof was admitted upon an award made after the bankruptcy, the proof was in that case ordered to be expunged. (2) Section XIV. Bo7ids. A creditor by bond is entitled to prove his demand against all the parties to it, and to receive dividends upon the whole sum from each estate, provided he does not receive more than 205. in the pound. If he does receive more, he is accountable for the surplus. And if he has I'eceived any part of the debt before he applies to prove, he can then only prove and receive dividends for the residue due to him. (3) (1) J9flr^Y?r's case, sStr. 1152. (3) Ex parte Wildman, 1 Atk. (2) Ex parte Kemshcad, 1 Rose, 109. 2 Ves. 1 13. 149. 236 OF THE PROOF OF DEBTS. [Ch. 9. Bonds. When bond as- signed, assignor must join in the jiroof. Bond pay- able on demand, whether proveable without demand made. Bond to replace stock proveable. As to cal- culating the value of the stock. A bond, though not strictly assignable at law, may never- theless be pi-Qved by the assignee under a commission of bankruptcy against the obligor; but the assignor must in this case join with the assignee in the usual deposition for the proof of debts — namely, that he hath not received the debt, or any part thereof, or any security or satisfaction for the same. (1) If a bond be payable generally on demand, and interest has been paid upon it — though no demand has actually been made — it may still be proved under the commission. (2) But where a bond was given by the bankrupt, for the pay- ment of the interest on the principal debt by half yearly payments on Lady Day and Michaelmas, or 'within tisoenty days next after demand^ and for payment of the principal to the executors, of the obligee — and no demand had been ever made for the interest — the bond was in this case held not to be forfeited, and the obligee incapable of proving it under the commission. (3) A bond to replace stock by a given day, if it is forfeited before the bankruptcy, is proveable. (4-) And where such a bond was also conditioned for making good the dividends payable in the meantime, and the obligor became a bank- rupt after the day mentioned in the condition, — Lord Eldon admitted proof for the amount of the dividends before the bankruptcy, and also for the value of the stock at the date of the commission (5), by analogy to the case of annuities. A somewhat different mode of calculation, however, was recently adopted by the Court of King's Bench. In this case the bankrupts had covenanted to replace stock by four instalments : one was replaced when due, two others had become due before the issuing of the commission, and the day for replacing the remaining instalment had not then (1) C. B.L. 146, (4) Ex parte Le'itch, C. B. L. (2) Ex parte Spurling, C. B. L. 149. 146. (5) Ex parte Dai/, ?Ves, 301.; (5) Winter \. Moiiscli/, 2 B. & und see Shepkcrdv.jo/mson, 2Easty A. 802. 211. Sect. 14-.] OF THE PROOF OF DEBTS. 237 arrived; and the Court decided, tliat the creditor might Bonds. prove for the value of the two instalments which ought to have been transferred on the days passed before the bank- ruptcy, to be calculated at the market price of the stock on those days respectively ; and that the value of the remain- ing instalment (which was not then due) was to be calcu- lated at the price on the day of issuing the commission, with a rebate for the interval, between that day and the day appointed for replacing the last instalment.(l) Where a bankrupt before his bankruptcy, on a loan of stock, gave a bond to re-transfer the principal within three years, and to pay the amount of the dividends in the meantime, and also agreed to convey a real estate as a security, and no re- transfer was made, nor any dividends paid, — it was held, that the estate should be sold, the amount of the dividends paid out of the produce, and that other stock should be purchased with the residue — and if not sufficient to re- purchase the whole principal stock, that proof should be made for the deficiency ; and the assignees were held not entitled to have three years to re-transfer the stock. (2) A voluntary bond, given without a consideration, may Voluntary be proved, not for the purpose of receiving a dividend with "^onds, the other creditors, but for payment out of the surplus. (3) But a bond, given for the arrears of a voluntary bond, is held to be a bond for a valuable consideration, and, as such, may be proved for the purpose of receiving a dividend. (4) With respect to hail-bonds, it lias been determined, that Bail- where a defendant gives a bail-bond to the sheriff, which ^°"^^'* is forfeited before his bankruptcy by non-appearance, and if forfeited an action is brought against him afterwards upon the bond — before whether the judgment is signed before, or after, the bank- ruptcy. rupt obtains his certificate — the debt on the bond is barred, and is, therefore, proveable under the commission — on the (1) Parker v. Ramsbottom, 5 B. (3) Gardner's Assignees v. Skin- Si C. 257. ner, 2 Sch. & Lef. 228. (2) Ex parte Fisher, 3 Mad. 159. (4) Gil/ham v. Lock, 9 Ves.612. Buck. 188. 238 OF THE PROOF OF DEBTS. [Ch. 9. Bonds. principle, that when the penalty is forfeited the debt be- comes due, though execution cannot be taken out for more than the damages (1) — and that the substance of the action on the bail-bond is the same, as that on the original debt. But if the bail-bond is not forfeited until after the bankruptcy of the defendant, the bond has been held, in that case, not proveable under the commission, as it was then considered a new and distinct cause of action. (2) So, where a bankrupt before his bankruptcy, upon being sued by a creditor, had given a bond under the 4 Geo. 3. c. 33., (the bankrupt being a member of parliament) for the pay- ment of such sum as should be recovered in the action, together with the costs; and after his bankruptcy, but before his certificate, judgment was obtained in such ac- tion, — it was held, that a bond of this description, being analoffous to a bail-bond, could not under these circum- stances be proved under the commission. (3) But now, it is apprehended, though a bail-bond is not forfeited until after the bankruptcy of the defendant, it may, under the 5Gth section of the new statute, be proved under the com- mission, like any other contingent debt after the happening of the contingency. As to the right of the bail themselves to prove under a commission against their principal, see post, title " Sureties" Bond to Where an assignee of a lease gave a bond to the lessee, indemnify for payment of rent and performance of the covenants covenants '^^^^ ^^^ lessor, and became bankrupt, after the bond had in a lease, become forfeited by the non-payment of the rent, — the able^'^^^^' bond was held incapable of valuation, and, consequently, not proveable under the commission. And though the lessee may be liable for damages to the lessor, by reason of the non-payment of the rent before the bankruptcy, yet (l) Bonteflour \. Coates, Cowp. (2) Cockerillv. Owston, 1 Burr. 25. Dimsdale v. Eames, 2 B. & 436. B. 8. 4 Moore, 350. Coulson v. (3) Jameson v. Campbell, 5 B. & Hammon, 2 B. & C. 626. A. 250. l Bing. 320. Sect. 15.] OF THE PROOF OF DEBTS. 239 these cannot be proved unless they are actually paid by the Bonds. lessee to the lessor. ( 1 ) And see further as to bond creditors, " Mairiage Articles^^ " Anmdties^'' " Contingent Debts,' " Insurance" " Sureties" Section XV. Bills of Exchange and Promissory Notes, and herein of Cross Pajoer Deinands. The holder of a bill of exchange is, like the creditor on A holder the bond, entitled to prove the amount of it acfainst all the "^^ prove ' / ^ ^ against all parties whom he might proceed against at law, whether the parties drawer, acceptor, or indorser ; and he may receive a '^ "'^ „ T . 1 1 /> 1 r> -11 amount of dividend from the estate oi each on the amount, provided the bill ; he does not in the whole receive more than 205. in the pound. (2) And it makes no difference, whether the bill is an accommodation bill, or whether the holder has given less than the amount for it ; except that in this last case, as except against the estate of the person from whom he received it, ^^"^^^ the he can only prove the exact sum due to him, and is not whom he entitled to more than 205. in the pound upon the consider- ^°?'^ '*» — when he ation which he gave for it. (3) Thus, where the bankrupt can only delivers bills with his name upon them to A., for goods P^^^e for furnished by A. to B., and such goods are afterwards balance, partly paid for by B., A. can only prove for the sum re- maining due for the goods, and not for the full amount of the bills. But the case would be otherwise, if the bills had been delivered by B. to A., without any communication be- tween the bankrupt and A., — for, then, there would have been no immediate contract between the bankrupt and A., (1) Taylor v. Young, 5 B. & A. Ex parte Crossley. Ex parte Doj<;w- 521. 8Taunt.318. 2" Moore, 526. M;arrf, Ibid. 157. 3 Bro. 237. Ex (2) English y. Barley, 2^. &^. parte Bloxham, 6 Ves. 449. 600. 62. 8 Ves. 53. Ex parte Earle, 5 Ves. (5) Ex parte Ki7ig, C. B. L. 156. S33. 240 OV THE PROOF OF DEBTS. [Ch. 9. Bills of cxchanse. After re- ceiving part, hol- der can only prove for balance. And the same after declar- ation of a dividend under an- other com- luission. and the bankrupt would be consequently answerable to the full amount of the bills. (1) So, where a bill is given by the purchaser for the price of goods bought, and the goods are afterwards paid for in part, the seller can only prove under a commission against the purchaser for the balance I'emaining due to him, and not for the whole amount of the bill ; for the bill, so long as it remains in the hands of the seller, represents only such part of the price of the goods as remains unsatisfied. (2) There is a distinction, also, in every case where the holder of a bill applies to prove it, afta- receiving part of the amount — and where he applies to prove, hcfore any payment or composition upon it. If, at the time of proving, he has received a part of it, he can then only prove for so much as remains due; for, of course, he could not in such a case swear, that the whole amount was due. (3) And when a dividend is declared under another commission, under which the holder has already proved the bill — though the dividend has not been actually received, yet the amount of it must be deducted from the bill, be- fore it can be proved. (4) Nor does it vary this rule, that the holder had been permitted to enter a claim for the full amount of the bill, ■previously to the declaration of the dividend under the other commission, and had also, pre- viously to such declaration, made an affidavit in proof of his debt, to be laid before the commissioners at the next meeting. (5) In one case of this kind, however, where the commissioners had improperly rejected the proof, and ad- mitted the holder only to claim, and it was afterwards decided, upon appeal, that the proof ought to have been received — it was held that, though generally all payments made previously to the proof must be deducted, yet, in (1) Ex parte Reader, Buck. 581. (2) Ibid. (5) Cooper v. Pcpys, 1 Atk. 107. (4) Ex parte Leers, 6 Vcs. 644. Ex parte Todd, 2 Rose, 202. note. (5) Ex parte Bank of Scotland, 2 Hose, 197. 19Ves. 510. Ex parte Worrall, I Cox, 509. Sect. 15.] OF THE PROOI' OF DEBTS. 241 this case the proof would relate back to the time of the claim BUls of — and that any sums partially paid after that time were to ^ -^^^^"g^ - be considered as payments subsequent to the proof. (1) But if the holder, a/Ze-r having proved for the amount Butifre- of the bill, receives a part from any of the persons liable ^^}'^^^ 1 • Ml • 1 1 T • 1 1 1 1 , afterproofy to pay it, he is still entitled to a dividend upon the whole entitled to amount (2), provided it does not exceed 20^. in the pound ^ d'vulend , ^ . , ^ on the upon such part as remains due. whole. Under very special circumstances, however, the holder Where of a bill (notwithstanding; part payment from another "°'^^'" ^ oil./ niay prove party) has been allowed to prove for the whole amount for the asrainst the acceptor^ and to stand as a trustee for such ^"^o^"', 1 11 1 -1 though other party, as to all he receives above the real balance due part pre- to himself upon it. As where A., being an indorsee of ^'io"siy B. and C.'s acceptances for 1364/., sued out a separate commission against B., but had previously by payments received from D. (for whom he had discounted the bills) reduced his debt to 420/., — it was held in this case, that A. might prove for the whole amount of the acceptances, standing as a trustee for D. for all above 420/. Lord Eldon, in deciding this case, took into consideration that A. (being the petitioning creditor) was the only joint cre- ditor who could, come in with the separate creditors, and receive dividends with them — and that as D. could not, therefore, prove so as to receive any dividend, and the bills would be discharged as against the bankrupt by the oper- ation of the certificate, it was but just that D. should have what benefit he could derive from the proof of A. (3) As all debts payable at a future day, whether the ere- Bills, ditor holds a written security or not, are now made prove- tho^igli able (4) under the commission, a bill or note (though not y^^„ j^g ' yet due) may of course be proved — and the holder will be proved. (1) In re Gibson and Johnson, (3) Ex parte De Taslet, 1 Rose, cit. per Ld. E. sRose, 201. 10.; and see ex parte Martin, (2) Ex parte Wildman, 1 Atk. 2 Rose, 87. 109. 2 Ves. 113. 2 B. & P. 62, (4) Section 51. The 7 G. 1. Formerly this was holden other- c. 31. was the first statute, that wise. See ex parte Lefebvre, 2 P. made bills and notes not due Wms. 407. proveable under a commission. 242 OF THE PROOF OF DEBTS. [Ch. 9. Sills of exchange. Objections to proof. Illegal con- sideration. Statute of limit- ations. When bill given in payment entitled to receive a dividend thereon generally with the other creditors, deducting only a rebate of interest for what he shall receive, at the rate of 51. per cent., to be computed from the declaration of a dividend, up to the time when the debt would become payable. And the holder of a bill not due may prove the amount against the drawer, though it is at the time uncertain, whether the acceptor will pay it or not when it becomes due. (1) For the draw- ing of a bill constitutes as much a debitiun hi prtrsetiti from the drawer, as the acceptance of it does with regard to the acceptor. (2) Whatever would be a valid defence to an action on a bill or note, is a valid objection to the proof of it under a commission. Thus the illegality of the consideration, for which the bill or note was given, will prevent the holder from proving it in all cases, where he was cognizant of the illegality at the time he took the bill or note; and in some cases also — as where the legislature has declared the in- strument to be absolutely void — whether he had knowledge of the illegality or not. (3) So where the statute of limitations would prevent the holder from recovering at law, he is equally prevented from proving on the bill or note. (4) The payment of a divi- dend by the assignees of one of two makers of a joint pro- missory note, has been held to prevent the other maker from availing himself of the statute. (5) But this doctrine has been since doubted, and has been refused to be extended to a case, where the indorsee had proved for an antecedent debt, and had merely exhibited the note as a security. (6) A bill, in payment of which another bill has been de- livered to the holder, cannot in general be proved ; but if (1) Stareyy. Barns, 7 East, 435. (2) Macarty v. Barrow, 2 Str. 949. 3 Wils. 16. 2 Barnard, 251. 5. 7 East, 437. n. Dub. tamen Lord EUenborough, 7 East, 440. (5) And see post. " Illegal and void Debts." (4) Ex \iarte Dewdney, IsVes. 479, Ex parte Seaman, Ibid. Ex parte Rojfey, 2 Rose, 245. (5) Jacfison v. Fairbank, 2 N. B. 340. (6) Brandram v. Wharton, 1 B. & A. 4G3., and see Atlcyns v. Tred- gold, 2 B. & C. 23. Sect. 15.] OF THE PROOF OF DEBTS. 243 the former bill is permitted to remain with the holder, then BUk and if the latter bill is not paid, there is no objection to the " ° ^^' proof of the former. ( 1 ) of another If the holder enter into a composition with the acceptor or maker of a bill or note, or agree to give him time for pounding payment of it, without the previous assent of the other ^^''^h ac- parties, he thereby discharges all those other parties. (2) ' But where a note is made by one person as principal, and unless a the others as sureties, then the compounding with one of surety, the sureties will not have the effect of discharging the principal, or indeed any of the other sureties ; for the dis- charge of the surety is very different (3) from the discharge of the principal. The same laches, too, of the holder — which would dis- Laches, charge any other party at law if he had continued solvent — will equally preclude the holder from proving under a commission against such party. Thus, if the holder Want of neglect to give notice (4) of the dishonor of a bill to the "°^,'^^^5 drawer, and the indorsers — or do not at least use due diligence in attempting to give notice (5) — they are thereby respectively discharged. If, however, the acceptor has no effects of the drawer's in his hands — in this case, the draiver will not be discharged, as he cannot then be injured by the want of notice (6) ; but the indorser in such a case is still entitled to notice. (7) The onus of proving the bill to be an accommodation bill, so as to dispense with the giving notice, is thrown upon the party contending that it is (1) Ex parte Barclay, 7 Ves. ley v. Case, 4^. 8cC.5j9. Walter 957. V. Haynes, 1 Ryan & M. 149. (2) Ex parte Smith, 5 Bro. 1. ilia«?2 v. ilfoo?-.?, Ibid. 249. C. B. L. 171. Ex parte Wilson, (5) Biirridge v. Burgis, 5 Camp. 11 Ves. 410. English v. Barley, 262. Crosse v. Smith, 1 M. & S. 2 B. & P. 61. Anderson v. George, 545. Goldsmith v. Bland, Bay. on 1 Burr. 353. Kellock v. Robinson, Bills, 224. 2 Str. 745. Tindal v. Brown, 1 T. (6) Ex parte Holden, C. B. L. R. 167. 167. Bicker dyke v. Bollman, 1 T. (3) Ex parte Gifford, 6 Ves. 805. R. 405. Rogers v. Stevens, 2 T. (4) Gnodal v. Dolley, 1 T. R. R. 715. Waltvyn v. St. Quintin, 712. Tindal v. Brown, supra. 1 Bos. & P. 652.; and see 13 East, Gee \. Brown, 2 Str. 792. Blis- 214. 4 Camp. 285. 1 Star. 116. sard V, Hurst, 5 Burr. 2670. Hart- (7) Wilks v. Jacks, Peake,202. R 2 dishonor. 24,4! OF THE PROOF OF DEBTS. [Chap. 9. Bills and notes. Bills pay- able to a fictitious payee. so. (1) And if the holder has not given notice himself to the drawer, he cannot avail himself of notice given by any other person. (2) The bankruptcy or insolvency of the acceptor, it has been determined, does not excuse the holder from giving notice to the drawer, or any other party entitled to notice. (3) But it was held by Lord Thurlow, that if the drawer, or indorser, is a bankrupt at the time of the dishonor of the bill, it was unnecessary to give notice, either to him or his assignees. (4) In a I'ecent case, however, before the Court of King's Bench, it was decided, that where the house of the bankrupt drawer is kept open by an agent of his assignees, there notice is essential — and a neglect to give it will bar the holder's right to prove against the drawer's estate. (5) Lord Thur- low's decision was not cited in argument in the last case — but the necessity of notice under these circumstances has been in some measure recognized in a case before Lord Eldon, in which he decided, that notice of a dishonored bill given to a bankrupt, as drawer, before the choice of assignees^ was sufficient notice to entitle the holder to prove. (6) If a bill be made payable to a fictitious payee, with the knowledge of the acceptor, it is considered in effect as payable to the bearer: and a bond fide holder of it for a valuable consideration may prove it under a commission against the indorser, or any other party, who knew, at the time he put his name to it, that the payee was a fictitious person. (7) But where the acceptor, at the time of his acceptance, was ignorant that the paj'ee was a fictitious per- son, the bill in such a case has been held to be void. (8) (l) Ex parte Heath, 2 Ves. & B 240. (2) (5) 117. 165. Bayl. (4) (5) 517. (6) Ex parte ilfo/iwd?, 19 Ves. 2 16. Ex parte Barclay, 7 Ves. 597 Esdaile v. Soivcrby, 1 1 East, Thachrayy . Blackctt, 3 Camp. 11 Ves. 412. 2B. &P. 279. 115. Chitt. 210. Ex parte Smith, 5 Bro. 1. Rohde V. Proctor, 4 B. & C. (7) Ex parte Clarke, 5 Bro. 238. Ex parte Alle7i, C. B. L. 172.; and see Tatlock v. Harris, 5 T. R. 1 74. Vare v. Lewis, ibid. 182. Minct V. Gibson, ibid. 48 1 . Collis v. Emet, 1 H. B. SI". Gibson v. Minct, ibid. 569. Gibson v. Hunter, 2 H. B. 288. (8) Bennet v. Famell, 1 Camp. 130. 180. c. Sect. 15.] OF THE PROOF OF DEBTS. 245: The same objections, also, as to the fo)~m of the bill, -^^^* ^"^ TlotcS which may be urged with effect in an action, apply to the ' proof of it under a commission. Thus, a bill or note is Bill or bad, if the sum for which it is given is payable on a con- ^j^jg ^^ ^ tingency — or if, in the case of a note, the promise to pay is contin- 2i conditional, and not an absolute, promise. (1) A pro- S^ncy, a . missory note, therefore, given to pay a sum, " when the circumstances of the maker will admit without detriment to himself or family," does not create a debt proveable under a commission. (2) So, a promissory note made payable " in cash, or Bank of England notes," has been for the same reason held bad for uncertainty; and the holder of several notes of this description, who received them from an intermediate person, was not allowed to prove under a commission against the maker, either upon the notes (3), or as for money had and received. (4) If the bill or note has not a proper stamp affixed to it, — Want of this, also, is another objection, which is as valid in Bank- st^i^p ruptcy, as at law. (5) But though a bill be void for want of a proper stamp, proof may still be made for the original consideration. (6) Where a bill is taken ^without the indorsement of the party Bill not from whom the holder receives it, the bill itself cannot be indorsed proved under a commission against that party ; for no delivering debt is proveable on a bill, but what arises on the face of it» "ot it. (7) And, though there is a private mark on the bill, a^aintt him. (1) Smith V. Boheme, cit. 2Ld. were declared by the legislature to Rayni. 1362. 1396. Roberts v. be a legal tender, and formed the Peake, Burr. 523., &c. j and see chief circulating medium of the Bay 1.8. country. (2) Ex parte Tootell, 4Ves.372. (5) Ex parte Manners, I Rose, (3) Exparte/jHesoji, 2Rose,225. 68. (4) Ex parte Davison, Buck. 31. (6) Alves v. Hodgson, 7.T.R.241; These two last cases, it must be Ruff v. Webb, lEsp. 129. Brown confessed, carry the doctrine of v. Watts, 1 Taunt. 555. Wilson v. uncertainty, in the construction of Vt/sar, 4 Taunt. 288. the promise in a note, to a point (7) Ex parte Roberts, 2 Cox, somewhat bordering on the ex- 171.; and see Fenn v. Harrison, treme ; — and more especially at a 3 T. R, 759. Ft/ds v. Clarke, 1 Esp. time when Bank of England notes 447. R S 24-6 OF THE PROOF OF DEBTS. [Chap. 9. £ills and notes. Contra as to accept- ance of a foreign bill. Bill lost. When an unindors- and the party admit, that upon all bills transferred by him without indorsement, on which he made that mark, he considered himself as much liable as if he had indorsed them (I) — or though the party write over the last indorse- ment, " Pay B. or order," — the rule is the same ; for in neither of these cases does the party contract any legal obligation upon the face of the bill. (2) So, where there was even an engagement in 'writing from the party, to war- rant the payment of the bill in like manner as if he had indorsed it, which engagement came into the hands of the holder for a valuable consideration, — yet this circumstance has been held not to entitle the holder to prove the bill, against the party who had so engaged to pay it. (3) This last point has, however, been ruled differently by Lord Eldon with regard to an acceptance, which, he held, need only be of such a nature, as will render the party liable to an action upon it at law. And, as a letter from a party (on whom bills ai*e drawn) undertaking to accept them, has been held at law to amount to an acceptance of the bills, so, he thought, that they might be equally proved under a commission against such party. (4) But this doctrine of acceptance by letter applies now only to foreign bills of exchange ; for by the 1 & 2 Geo. 4. c. 78. s. 2. all inland bills must be accepted by iioriting u^on the bill. And by the same statute, when a bill is accepted payable at a par- ticular place, this is to be deemed a general acceptance ; and presentment at that place need not be proved, unless it is expressed in the acceptance to be onli/ payable at that place. Where a bill has been lost by the holder, he may never- theless be permitted to prove it, upon giving an ample indemnity to the satisfaction of the commissioners. (5) "When a bill, which has been taken without the indorse- (1) Ex parte Shuttleworth, sVes. 368. (2) Ex parte Isbester, lRose,20. Vincent v. HurlocJc, 1 Camp. 422. (3) Ex parte Harrison, 2 Bro. 614. Ex parte Bell, 1 Mont. 192. In re Barrington, Sch. &Lef. 112.; and see post. (4} Ex parte Dyer, 6 Ves. 9.; and see Clarice v. Cock, 4 East, 57. Wynne v. Bailees, 5 East, 514. (5) Ex parte Greenway, 6 Ves. 812. Sect. .15.] OF THE friOOF OF DEBTS. 247 ment of the bankrupt, is to be considered a purchase, and -S'^^* "■nd when a pledge, will depend on the circumstances of the ' case, and the nature of the agreement between the parties, edbillcon- An exchange of paper between two persons, where the bills ^l^^X,. ^ are of the same amount, has been considered to be a pur- and when chase by each party of the bills of the other. As where G. ^ v^^'^Z^- accepted a bill for J. and W., and in exchange they de- pu/chase livered to him at the same time a bill to the same amount IjiH cannot drawn and accepted by other parties, but not indorsed by '^P'^"^^ • J. and W., — Lord Eldon held this to be a purchase on the part of G. of the last mentioned bill — that being the con- sideration for the acceptance given by him to J. and W. ; — and though G. had paid his acceptance, and the bill he received was dishonored, yet he was not permitted to prove the amount of such bill under a commission against J. and W. (1) If the bill is discounted {2) by the taker, it is then also considered as a purchase; and, whenever a bill is taken as a purchase, it liquidates the debt due from the person transferring it to the full amount of the bill (3), and, consequently, the debt cannot be proved under a com- mission against such person. Where, however, a bill without indorsement is taken as But in /• a security for an antecedent debt, and there is no express ^^^^f ° ,, . . . . . pledge, the agreement that it is taken in p)ayment against all risks (4), original it is then considered as a pledge, and does not destroy the . , . , . provable, debt; therefore, if the bill in this case be bad, though the if bill en- bill itself cannot be proved under a commission against the ^'^'^^^y ^^'^' (1) Ex parte Hustler, 1 G. & money secured by the bill (whe- J. 9. ther indorsed or not) minus the (2) Mr. Eden in his Ti'catise on interest ; and the person so ad- the Bankrupt Law (page 136. note vancing the money, if he does not (p.)) very justly observes, that there take the indorsement of the partyy is a great inaccuracy in several of is in reality the purchaser of the the books, (1 Rose, 2.3. Buck. 115. bill. n.) as to the distinction taken (3) Ex parte Whitter, C. B. L. between a transfer with, and with- 124. Ex parte Roberts, ibid. Ex out, indorsement, — in denominat- parte Smith, ibid. Bank of Eng' ing the one transaction " as a land v, Newman, 1 Ld. Raym. 442. sale,^' and the other " as a (lis- 12 Mod. 241. Com. Rep. 57. count," — a discount being, in fact, (4) Oivenson v. Morse, 7 T. R. nothing more than advancing the 651. R 4 248 OF THE PROCHF OF DEBTS. [Chap. 9. Sills and notes. If of any value, the bill should be sold, and credi- tor prove for the difference. Where bankrupt has only rORGOT- TEN to in- dorse a bill, it may be indors- ed after- wards. debtor, yet the original debt, or so much as remains due, may be proved. (1) If the bill is taken as a pledge, it should in strictness be sold, and the produce applied in satisfaction or reduction of the creditor's debt ; and if any part remains unsatisfied, he will be then of course entitled to prove for the residue : or the Lord Chancellor will in some cases order, that the creditor shall be at liberty to bring an action on the bill in the name of the assignees, upon his indemnifying them, and undertaking to account for any surplus recovered. And in either case, if the amount of the bill or note exceeds the debt for which it is pledged, the creditor will have to pay the costs of the application, as in the case of an equit- able mortgage upon the deposit of deeds without any writ- ten agreement. (2) In some cases, where the bankrupt has merely forgotten to indorse the bill or note, which is transferred by him for a valuable consideration, it has been held, that he may in- dorse it after his bankruptcy (3) ; — for the act of indorse- ment is in such case considered a mere form — the transfer for considex'ation being the substance, which creates an equitable right, entitling the holder to call for the form. (4) So, where the whole beneficial interest is out of the bankrupt, the assignees have been in that case ordered to indorse a bill under the above circumstances — in such a manner, however, as to secure them from per- sonal responsibility. (5) And where the payee of an accommodation bill indorsed it after an act of bank- ruptcy, it was holden, that this did not prevent the in- dorsee, for valuable consideration, from recovering on it against the acceptor. (6) So, where a bankrupt had trans- (1) Ex parte BlacJcbyrn, loVes. 206. Ex parte Rathbone, Buck. 215.; and see Richai-dson v. Kirk- man, C. B. L. 174. (2) Ex parte Brown, 1 G. & J. 407. (3) Smith V. Pickering, Peake, .50. Anon. 1 Camp. 492. n. (4) Per Sir T. Plumer, 2 J. & W. 243. (5) Ex parte Greening, IsVes. 206. Ex parte Mowbray, 1 J. & W. 428.; but see ex parte Hall, 1 Rose, 13. Ex parte Stewart, 1 G. & J. 544. (6) Wallacev.Hardacre, I Camp. 45. Sect. 15.] OF THE PROOF OF DEBTS. 24-9 ferred, without indorsing, a note for valuable consideration Bills and to B. & C, and afterwards died intestate, and B. took "^^^^__ out letters of administration to him, and then indorsed the note to B. & C, — it was held, that B. & C. might re- cover against the maker of the note(l), though it was given for the accommodation of the bankrupt, and though it was not indorsed until several years after it was due. But the mere circumstance of indorsement, in the trans- When the fer of a bill or note, does not make a difference in esti- °,"J^<^^ ^^ . the trans- matmg the rights of the parties, if the real meaning of the fer of a bill transaction was only deposit — the distinction dependino; ^? merely . r o deposit not on the fact of indorsement, but on the intention of the indorser. In this case, however, it must be clearly esta- blished, that notwithstanding indorsement, the object was nothing but deposit. (2) Thus, where several bills were delivered to a mortgagee, some of which were indorsed and others not indorsed — and the question was, whether the bills were intended to be in the nature of a collateral se- curity, or of an absolute transfer — the Court inferred (from their being a mortgage, and from the circumstance of some of the bills not being indoi'sed) that those which were in- dorsed were intended, as well as those unindorsed, to be held as a security only. (3) And if A. give B. a bill to the holder the amount of 300/. as a securitij for a debt of 1 50Z. — *=^" °"j[y 11 * • 1 • T-> • A 1 prove for whether A. indorse it or not — r>., as against A., can only the real prove 150/. — and he will be a trustee for A., in respect of ^^^^ '*"^' any surplus which he may receive from the other parties to the bill. (4) If the holder of bills indorsed by the Holder bankrupt, instead of proving; for each bill, proves the whole estopped . . . . . . after hav- amount of his debt, for which, he states in his deposition, ing once that he has received no security or satisfaction whatsoever treated the except the bills he holds, — he will be precluded, after security. thus treating the bills as a security in his deposition, from saying afterwards they were not to be treated as a security, ( 1 ) WatMns v. Maule, 2 J. & W. (5) Ex parte Baldwin, cit. 1 9 Ves. 237. 250. (2) 1 9 Ves. 232. (4) Per Lord Eldon, ibid. 250 OF THE PROOF OF DEBTS. [Chap. 9- Bills and because they were indorsed. (1) Indorsement is, however, " "^^^' always considered prima facie evidence of an absolute Indorse- transfer, unless the object of mere deposit is clearly shown, meat ]\ri' q^. ^^^ j^g plainly inferred from the nature of the trans- mujacie ^ •' evidence action between the parties. otiibsolute Where A. employs B. to get bills discounted, which A. ^, had not indorsed, and B. indorses them in his own name, bills in- the better to effect that purpose, and both A. and B. be- dorsed by ^ome bankrupt, — A.'s estate must relieve B.'s from the liability incurred by the (2) indorsements on these bills ; though the case would be otherwise, if A. had told B. expressly that he would not indorse the bills ; — for then B. would have been an agent with only a limited (3) au- thority. Where If the acceptor of a bill for value become bankrupt, and bill paid ([^q indorser is obliged to pay it in consequence of the bv inclorscr o i •/ *■ after bank- bankruptcy, he may prove the debt under the commission, ruptcy of although it was not taken up by the indorser till after the tor, may commission issued. (4) It has been held, however, that a be provedj party so claiming to prove a bill taken up by him after but not if ^i^g commission issued, must himself have contracted a party not liability upon it before the issuing of the commission. As liable on where a bill, after the bankruptcy of the acceptor, was taken up by a party, who had previously discounted it without indorsing it, — Lord Eldon refused him permis- sion to prove it under the commission, upon the ground that he had not made himself liable on the bill by indorsement — and added, that all the cases of parties claiming to prove, in respect of the payment of bills after a commission of bank- ruptcy, have been, where the party is himself liable on the (1) Ex parte ^wrra, 2 Rose, 58. 570. Ex parte Hale, 3 Ves. 304. (2) Ex parte Robinson, Buck. Buckler v. Bidtivant, 3 East, 72. 113. Houlev. Baxter, ihiA. 111. Joseph (3) Fenn v. Harrison, 3 T. R. v. On?ze, 2 N. P. 80. Contra ^rooto 757. V. Rogers, 1 H. B. 640. Howis v. (4) Ex parte Brymer, C. B. L. Wiggins, 4 T.R. 714.; but the two 1 65. Coivley v. Dunlop, 7 T. R. last cases were cases of sureties. 5^5. Ex parte Seddon, cit. ibid. Sect. 15.] OF THE PROOF OF DEBTS. 251 bill. (1) But Lord Thurlow upon a former Occasion Bilk and said, that he considered it as a very clear point, that a bill of " " ^^' exchange, though negociated after the bankruptcy of the Bill, how- acceptor, might be proved under his commission ; as the ^^^' ™^^_ debt accrued from the acceptor by his original acceptance ated after of the bill. (2) Accordingly it has been holden, that the ^^^"^' . . ruptcy. indorsee of a bill, though indorsed to him after the bank- ruptcy of the acceptor, can prove it under his commission, but only for such amount, as the indorser himself could have proved at the time of the commission. (3) So that it should seem, if the case of ex parte Isbester could have been considered merely a transfer of the hill for value to a third person, after the commission against the acceptor — and not as a -payment of the bill by a person, who was in fact never a party to the hill, or liable to pay it — the bill might have been proved under the commission. Where bankers' notes were bought up after their bank- Where ruptcy, they cannot be proved by the holder, — unless it can banker's be shewn that the pei'sons, from whom they were purchased, bouo^ht were individually entitled to a proof in respect of the "P ^^^^"^ , , _ / , , ^ . , . , , bank- notes. (4) But there have been some special exceptions (5) ruptcy. to this rule; and in one case, where one of the partners of the bank, after getting his certificate, took up the notes of the firm, he was permitted to prove (6), — upon making an affidavit, that he would not have paid the notes, unless the holders had had a valid claim against the firm. And in all these cases, where a bill is neffociated after Difference IT IS DUE, whether by indorsement or mere delivery, the ,-ig^y^fJJ. party receiving it takes it on the credit of the person trans- ing a bill ferring it, and subject to all the equities to which it may ^!^^"^'f"'^ be liable ; whereas before a bill is due, the party receives due. it on its own intrinsic credit, and is not bound to enquire (1) Ex parte Isbester, 1 Rose,20. (-3) Ex parte Deey, 2 Cox, 42,5. (2) Ex parte Brymer, ante; and (4) Ex parte Rogers, Buck. 490. see ex parte Thomas, 1 Atk. 73. (5) Portsmouth Bank case, cit. sWils. 155. Bingley \ , Maddison, ibid. 7 T R. 499. (6) Ex parte Atkins, ibid. 479. 252 OF THE PROOF OF DEBTS. [Chap. 9. Bills and notes. Where, after the proof of several bills, — any one paid in f idly must be deducted from the proof. Where bill taken lip for the honor into any circumstance existing between the person from whom he takes it, and any of the previous parties to the bill.(l) Where the holder of several bills, indorsed to him by a bankrupt for whom he had discounted them, proves the aggregate amount of them under the commission, and any of the bills are afterwards paid in full, the amomit of the bills so paid must be deducted from the proof, and the future dividends be paid only upon the residue of the debt. (2) And the same, where the bills have been in- dorsed by the bankrupt as a security for a general ba- lance — or for a debt, even exceeding their amount, and the creditor proves the whole amount of his debt, excepting the bills as a security. (3) And if the dividends have been paid upon the whole proof without such deduction, the assignees are not thereby concluded — for the Lord Chancellor on petition will order them to be refunded. (4) In this respect, we perceive the rights of the creditor differ from the case, where he proves only a single bill ; for there he is entitled to a dividend on the full amount of his proof, provided he does not receive in the whole more than 205. in the pound. (5) But when several bills are thus proved — as each bill forms a separate and distinct portion of the whole debt — if a creditor was permitted, after one of the bills was paid in full to take a dividend upon the gross sum, without deducting the amount of the bill paid off, — he would then be receiving, as to that portion of the debt which was composed of the paid bill, more than 20s. in the pound. Where the acceptor of a bill becomes bankrupt, and another person after the bankruptcy takes up the bill for the honor of the drawer, that person has no right to prove (1) Broivn v. Davies, 3 T. R. 80. Boehm v. Stirling, 7 T. R. 427. Broivnv. Turner, ibid. 630. Tinson V. Francis, 1 Camp. 19. Chitt. 126. (2) Ex parte Smith, C. B. L. 155. Ex parte Bloxham, ibid. (3) Ex parte Wallace, C. B. L. 155. Ex parte Ooi-siy, ibid. Ex parte Rufford, 1 G. & J. 41. Ex parte Barratt, ibid. 327. (4) Ex parte Burn, 2 Rose, 55. (5) Ante, 239. Sect. 15.] OF THE PROOF OF DEBTS. 253 against the estate of the acceptor, unless the acceptor had Bills and effects of the drawer's in his hands — for such person can ' only stand in the place of the drawer. (1) of the With respect to proof of what are termed accommodation ^^^^^' bills — that is, bills to which one of the parties has sub- dalion bills scribed his name without receiving any value — the holder ^^hen of a bill of this description, who has bond Jide given a valuable consideration for it, is not affected by the want of consideration between the other parties. (2) But such bill cannot be proved as between the parties to the accom- modation. And where a debtor to a bankrupt's estate, after notice of the bankrupt's insolvency, acquired a bill with the bankrupt's name upon it, (which he knew then was a mere accommodation bill given by the bankrupt, and formed no demand upon the bankrupt's estate) with a view to set it off against his own debt, — he was held not to be a bond Jide holder of such bill ; — and, having proved for the difference between the amount of the bill and the debt he owed the bankrupt, his proof was ordered to be ex- punged. (3) When two persons, however, agree that the one shall accept and pay all bills, which a third may draw upon him on account of the other — and the drawer has effects in the hands of one of those parties, though not in the hands of the acceptor — the acceptor by such an agree- ment makes himself equally liable with that party, in whose hands the drawer has effects — and the drawer may there- fore prove such bills under a commission against the acceptor. (4) When a party lends his name upon a bill, whether as Party drawer, acceptor, or indorser, without receiving value for lending his . . , " name, sub- such accommodation, he is substantially a surety for the stantiallyj other part}^, who has received a consideration for the bill ; ^ si"'ety. (1) Ex parte Lambert, 1.5 Ves. (3) Ex parte Stone, 1 G. & J. 174. overruling. Ex parte Wack- 191.; and see Fair v. M'lver, erbatli, 5 Tes. 574. 16 East, 130. (2) Cull. B. L. 97. Chitt 442. (4) Ex parte Marshall, 1 Atk. 130. ^54^ OF THE PllOOF OF DEBTS. [Chap. 9. Accommo- dation bills. Surety en- titled to benefit of the hol- der's proof. Former disability attached to him. May now prove, though he pays the debt after the com- mission. and if, through the default of that party, he is obliged to take it up, he is entitled, of course, to be indemnified by the estate of that party. In bills of exchange, Lord Hard" wicke observes, there is a double contract — the first between the principal debtor and creditor — and also an implied con- tract, that the principal debtor will indemnify the surety — so that if the creditor (the indorsee) comes upon the surety (the indorser), the indorser or his assignees may come in against the original or principal debtor; and he added, that this was likewise the case, where no consideration was paid by the original drawer. (1) This principle has been often recognized in Bankruptcy. As where the holder of a bill proved it against the person, who was ultimately bound to pay it, before he called upon the surety, and he after- wards received from the surety either the whole or a part of the debt, — the Court was always accustomed to give the surety the benefit of the holder's proof (2) under the com- mission. But there was a great hardship formerly, where the surety paid off either the whole of the bill subsequent to the act of bankruptcy, or part of it before the creditor had proved ; for, in the one case, the creditor could only prove for the residue of the debt owing at the time of the proof — and, in the other, the surety was held to be barred entirely from proving — as, quoad him, it became a debt subsequent to the bankruptcy. (3) To remedy this grievance to the surety, the 49 G. 3. c. 121. s. 8. first enacted, and the 52d section of the new statute enacts nearly in the same words, that any surety or person liable for any debt of the bankrupt, though he pays the debt, or any part of it, after the com- mission issues, may stand in the place of the creditor, if the creditor has proved — and if not, then that the surety may prove his demand in respect of such payment, not disturb- (1) Ex parte Walton, 1 Atk. 125. (2) Ex parte Rysivicke, 2 P. 640. r,^^ on gx parte Marshal, 714 E.\ parte Mathews, Wms. 89. 1 Atk. 129 eVes. 285. (3) Brookes v. Rogers, 1 H. B. Howis V. Wiggins, 4 T. R. Sect. 15.] OP THE PROOF OF DEBTS. 255 inff former dividends. And this benefit is given to the Accommo- • 1 T 1 11 r elation bills. surety, notwithstanding he may have become so even alter an act of bankruptcy — provided he had no notice then of any act of bankruptcy. The words " person liable" in the above enactment, LordEldon has observed (1), were adopted for the convenient latitude of comprehending all those, who could not strictly be considered as sureties, but who w^ere entitled to the same protection. Thus, the acceptor of a Acceptor bill of exchano;e is not strictly a surety for the drawer — the "* ^" ^^- coniniociti- acceptor being, on the face of the bill, liable in respect of tion bill his own engagement merely; — but if die debt, which the ac- treated as ceptor adopts, be in reality the debt of the drawer, and the contract between the drawer and acceptor be in the nature of an accommodation transaction, viz. that the drawer should be the person finally responsible, — in this case, though the acceptor would not strictly be a surety, yet he is a " person liable." In conformity, therefore, with the above enactment, — And may when the acceptor of a bill for the accommodation of the prove 1 -^11 ,11 11-1 • against the drawer is, after the drawer s bankruptcy, obliged to pay it — drawer though the bill itself is, strictly speaking, gone by the ac- for the , . . 1 , r 1 amount, ceptance being paid — yet the acceptor may prove lor the ^j^jj jjjg amount, as having paid it for the use of the drawer. (2) costs. And such proof, as it should seem, may also include the costs (if previously ascertained) of an action brought against the acceptor by the holder, in consequence of the drawer not providing funds to pay the bill when due. (3) If the acceptor assigns his debt to a third person, he may be called upon by such assignee to prove it, and the assignee will be entitled to all the dividends in respect of it. (4) (1) 3 V. & B. 40. V. Be Paibe, ibid. 528. Snaith v. (2) Ex parte Lloyd, 1 Rose, 4. Gale, 7 T. R. 364. Ex parte Beau- Stedman v. Martinnant, 13 East, foy, C. B. L. 158. Heskingson v. 427. Before the 49 G. 3. c. 121. Woodbridge, Doug. 166. this could not- be done. See ex (3) Vansandari v. Corsbie, 3 B. & parte Walton, 1 Atk. 122. Qnlton A. 13. 8 Taunt. 550. 2 Moore, V. Whiffin, 3 Wils. 13. Young v. 602. Hockley, ibid. 34G. Vanderheyden (4) Ex parte Lloyd, supra. 256 OF THE PROOF OF DEBTS. [Chap. 9. Accommo- This equity (which is now in fact become a legal right) If surety who has proved it under a commission, was before the th^^bUl ^^ ^' ^' ^^ ^^^ quahlied, that it was not permitted to operate after the to the prejudice of the holder — if the latter had any other holder has ^hstinct demand against the bankrupt's estate ; so that if received a ... dividend, there would be any diminution of the dividends upon such holder distinct debt, occasioned bv the surety's standing in his bound to .... * 1 1 -n account to place and receiving dividends upon the amount of the bill, surety. such diminution was directed to be made good out of the dividends receivable by the surety. (1) But this point has been differently decided since the 49 G. 3. As where a surety on a note, after the bankruptcy of the debtor, paid it off to the creditor, the latter having previously proved for a greater amount, and received a dividend on the gross amount of his debt, — Lord Eldon ordered, that the surety should receive from the creditor the dividend on the note, which the creditor had already been paid. (2) As to the discharge of the surety on a bill or note, by the holder discharging or compounding with the principal, see post, title " Sureties." Crossbills, Where, however, a party lending his name on a bill or former j^^^^ ^^j. ^^ accommodation of the bankrupt, had taken for practice in ^ proof of. his own security a counter bill, with the bankrupt's name upon it, he was, independently of the 49 G. 3., permitted to prove the latter under the commission, though the former bill had not become due. For the mere liability to pay money was held a good consideration for a bill of exchange, and would entitle the party to come in as a creditor under the commission, although the payment in respect of the liability was infuturo, or depended upon a contingency. (3) And this, it was said, did not militate against the old rule, that contingent debts were not prove- (1) Ex parte Turner, sVes. 243. (3) Toussaint v. Martinant, 2T. Ex parte Ruslnvorth, loVes. 409, R. 100. Hodgson v. Bell, 7 T.R. Paley V. Field, 12 Ves. 435. 97. (2) Ex parte Brook, 2 Rose, 534. Sect. 15.] OF THE PROOF OF DEBTS. 257 able, because the claim under the commission was upon Accommo- an instrument creating an absolute debt at law. (1) But ^ '"" ' ^' though the holder of a counter-bill could prove it before the other bill became due, yet the practice was to reserve the dividends, until it appeared to what extent he had been damnified, and whether he had exonerated the bankrupt's estate from the bill or acceptance, given by him to the bankrupt in exchange for such counter-bill. (2} It was afterwards doubted, whether such proof ought to have been permitted, before the party applying to prove had taken up his own paper, or had paid the original debt. (3) And it Party ap- seems now to be a settled rule, that the surety claiming to P'^'^S to Jo prove, come. in as a creditor upon an exchange of acceptances must take must, before he can be permitted to prove, take up his "P'"sown own bills, or exonerate the bankrupt's estate from any liability in respect of them, (i) Where there has been a mere exchange of acceptances In ex- for the same sum. between the creditor and the bankrupt, '^"^"^^ °^ ^ ^ accept- the creditor cannot prove against the bankrupt any pay- ances for ment made on the creditor's own acceptance ; for in such a *"^ ^''""^ transaction the law considers, that the creditor did not give proof al- his own acceptance in consideration of a promise of in- lowed of demnity from the bankrupt, but in consideration of an ment. actual and executed delivery of the other acceptance. Each party, therefore, under these circumstances, is held to have liquidated his claim on the other, by the accept- ance which he takes in lieu of his own. (5) Whether, in Evidence other exchanges of paper between two parties, one accept- ? •°"^- ' ance is to be considered as given, or one bill transferred in in consi- (1) Ex parte iWaj^rfitf//, C.B.L. (2) Ex parte Curtis, C. B. L. 252. Rolfev. Caslon,2Y{,B.510. 162. Ex parte i/ee, ibid. Ex parte Ex parte Beaufoy, C. B. L. 158. Broivne, ibid. Ex parte Clanricarde, ibid. 160. (.3) In re ^o;-on£>s^, C. B. L. 161. To such miserable devices, says (4) C. B. L, 162. Ex parte Mr. Eden, were the courts com- Bloxhain,sNes.5o\. pel led to have recourse, in order (5) Cowley v. Dunlop, 7 T. R. to effect substantial justice, and to 565. Butler v. Buttivant, 3 T. R. elude the operation of a harsh and 72. inequitable rule oiflaw. Eden, B. L. 141. 256 OF THE PROOF OF DEBTS. [Ch. 9. but one party pay- ing his own ac- ceptance, may prove the coun- ter one. When both par- ties bank- Accommo- consideration of the other, must be determined by the par- d ahon bill s, ^-^^.^ir^^ circumstances of each case. (1) Any variation in the deration of time of payment, or of the amount, of the respective bills, the other; — -^ evidence whether the parties did, or did not, transfer the bills in consideration of each other — though not con- clusive evidence. But an agreement by each party to pay his oven acceptances is conclusive evidence, that the bills were given in consideration of each other. (2) Where, in an exchange of acceptances, one party takes up and pays his own acceptance after the bankruptcy of the other, and the bankrupt's acceptance has not been proved by any other holder, the drawer may, of course, prove it under the commission. But if both parties become bankrupt, and the acceptance of one party has been proved by the holder of it against the estate of the drawer, as well as rupt, divi- against that of the acceptor, and the holder receives dividends by one under each commission — the amount of the dividends paid estate not ^^y ^^ assignees of the drawer cannot be proved under the ■nroveanle , . against the commission against the acceptor ; for that would be charging other. the estate of the acceptor twice for the same debt. (3) In transactions of this nature, where both parties be- come bankrupt, and there has been a considerable exchange of paper between them, questions of great difficulty fre- quently occur in determining the amount of proof to be made by the assignees of that party, who has accepted to a greater amount than the other — more especially, if there happen to be outstanding acceptances of each party proof to be capable of proof by the respective holders, or bills which th^ ^redi- ^^^^^ been already proved under each commission. In one tor estate case of this kind, where the assignees of one firm claimed ?y!/ to prove against the estate of the other outstandintj bills, bills, or t^ o o ' the cash that might be proved by the holders against both estates, — balance. Lord Loughborough held that, as between the two estates, no proof could be made of the unsatisfied bills of either party ; and he directed an account of the dealings between Where both par- ties in cross-bill transac- tions be- come bank- rupt, — whether (1) Per Lord Eilenborough, 3 East, 76. (2) Ibid. 7 T.R. 565. Chitt. 443. (5) Couiley v. Dunhp, supra. Sect. 15.] OF THE PROOF OF DEBTS. 259' the parties to be taken, excluding those bills, and the Accommo' . balance to be ascertained upon the general dealings be- ^ '"" ^" tween them, considering bills duly honored as so much cash — for which balance only the proof was ordered to stand. (1) In a subsequent case, under the same bank- Where ruptcy, where the assignees of one house petitioned to ^ j prove against the estate of the other, not only for the cash proveable. balance between the two estates, but also in respect of the dishonored bills, part of which having been negotiated, were proved by the respective holders against both estates, — Lord Loughborough said, that upon consideration of the case of Ex parte Walker it struck him, that there were but two ways of taking the account between the two estates — either to consider all the bills to be struck out of the case entirely, as if issued for a bad purpose — like gambling transactions, &c., upon which there could be no pi'oof — or to consider them all as good bills, — and that he did not see a middle course ; and he permitted the cash balance in this case only to be proved. (2) This principle adopted by Lord Loughborough was afterwards recognized by Lord El don in the following case, where there were mutual advances of cash between the parties, but paper upon one side only. A. and B. had dealings together, in the course of which it appeared that B. had received fron A., in cash and bills, 6421/. 9s. Sd., and A. had received from B., in cash alone, 5284/. 19s. Id., making a balance of 599/. 95. Sd. upon the whole account in favour of A. Both became bankrupt, and several of the bills delivered by A. to B. {amounting to 1098/.) were dishonored, and proved against both estates, and divi- (1) Ex parte Walker, 4 Ves. 373. all cross paper should be proved, — (2) Ex parte Earle, 5 Ves. 835. but no cash balance, if the party Mr. Christian, in his observations to whom the balance was due has on these cases, (Vol. II. 390.) pro- drawn bills, which have been al- poses a different arrangement from ready proved to the amount of the either of the plans suggested by balance. Lord Loughborough, namely, that S 2 260 OF THE PROOF OF DEBTS. [Ch. 9. Accommo- dation bills. Where cash ba- lance not proveable. dends paid upon them. B.'s assignees applied to prove 498/. 105. 4fd. under A.'s commission, insisting that the 1098/. should be deducted from the 64.24Z, 95. 3d., and there would then be that balance due to B.'s estate. Lord Eldon admitted the proof, but held that the assignees of A. were entitled to retain and apply the dividends payable in re- spect of such proof, for the exoneration of the estate of A. from all the dividends, which it should be obliged to pay in respect of the proof of those (1) dishonored bills so proved against both estates. But where bankers accepted bills for the accommodation of the bankrupt, (who had kept cash with them, and was in the habit of remitting bills to them from time to time to cover the acceptances when they became due) and at the date of the commission the bankers were under acceptances for the bankrupt, and also held bills drawn by the bank- rupt, none of which acceptances or bills were due at the time of the bankruptcy, — Lord Eldon held that upon this sort of transaction, the bankers, taking up their own ac- ceptances, were entitled to prove upon the securities they held, but not for the cash balance. (2) And since the operation of the recent provision for the protection of sureties, a new principle has been introduced in the decision of this class of cases relating to cross-paper transactions. So that if A. has accepted bills for the ac- commodation of B. the bankrupt, and does not pay them when due — or if B. has given A. bills or notes to secure any debt or balance due to him — and any of such acceptances, bills, or notes are afterwards negotiated and proved by the respective holders against B.'s estate, to a larger amount than any cash balance due from B. to A., — such cash ba- lance will not be permitted to be proved under B.'s commis- sion. And notwithstanding A= actually pays any of the bills which have been proved under the commission — all that he (1) Ex parte Metcalf, 11 Ves. 404. (2; Ex parte Bloxham, 8 Ves. 531. Sect. 15.] OF THE PROOF OF DEBTS. 261 can claim is, to have the benefit of the proof in respect of Accommo- the particular bills ( 1 ) which he is obliged to pay. d ationbU ls. If, by giving an acceptance, a debt be constituted, which An accept- mav be proved under a commission against the acceptor, ^^^\ •^ , ^ . . . . ' which may that is as much a consideration for a bill, as if the value of be proved the bill had actually been paid in money. Thus, where "8^'"*^ *"^ G. and Co., being largely indebted in a drawing account to good con- F. and Co., paid to them a bill, which the latter indorsed to !,''^^'"^^!^" D. and Co.; and then G. and Co., F. and Co., and two other given in ' parties to the bill having become bankrupt and insolvent, exchange. D. and Co. by proving it under each commission, and receiv- ing a composition from the estate of the insolvent, obtained altogether 20^. in the pound; — it was held, that although G. and Co. were only indebted to F. and Co. in respect of F. and Co.'s acceptances, which were in fact not paid when F. and Co. became bankrupt, yet that the assignees of F. and Co. were entitled to stand in the place of D. and Co., in respect of the proof made by the latter under the commis- sion against one of the other parties to the bill, to the extent of the dividends which had been paid to D. and Co., under F. and Co.'s commission. (2) Where, by agreement between plaintiffs (bankers at Proof on Carlisle) and defendants (bankers at Newcastle), plaintiffs special were weekly to send defendants all the notes issued by the between defendants, as well as the notes of certain other banking two bank- houses, which might come to the plaintifTs hands — and the ^°^^q g^- ' defendants were in exchange to return to the plaintiffs all change of their own notes, and the notes of certain other bankers snecUve" which might come to the defendant's hands, and the defi- notes, ciency was to be made up by a bill drawn by defendants in favor of plaintiffs at a certain date, — it was held, that the notes so sent by the plaintiffs constituted a debt against defendants, which the latter might pay by a return of notes according to the agreement — but that if they made no such return, or a short return, and gave no bill for the balance, (1) Ex parte Read, 1 G. & J. (2) Ex parte Greenwood, Buck. 224. 237. s S 262 OF THE PROOF OF DEBTS. [Ch. 9. Bills and notes. Bill dis- counted may be proved in full; so banker's notes bought in for less than their amount. Charges of protest proveable ; such balance remained as a debt against them, which was proveable by the plaintiffs under a commission issued against the defendants, on an act of bankruptcy committed after the time, when the bill for the balance (if drawn) would have been due and payable. (1) The holder of a bill or note, who has discounted it for the previous holder, may prove against any of the parties to the bill for \\\q full amount. (^) And, as an assignee or indorsee of a bankrupt's notes, who has bought them in at 10s. in the pound, may take out a commission on such notes (3), — it should seem, that he might equally prove the full amount of them as a general creditor, and receive dividends upon that amount under the commission. The costs and charges of jprote&ting bills might formerly be proved under the commission, if they were incurred befoi'e the act of bankruptcy ; but those incurred afterwards could not be proved. But now, it is apprehended, under the ^"itli section of the new statute, all such costs are proveable, if they were incurred before the issuing of the commission, and before notice of the bankrupt's insolvency, and conse- And such costs and charges may include the consequential dani^ages damages which, by the law of a foreign state, the drawer occasioned or indorser of a returned bill is obliged to pay beyond the ofa^fbr i^^ amount of the bill. As, where bills drawn by a trader in state. Pennsylvania upon the bankrupt in England were protested and returned to the drawer, some for non-acceptance, and others for non-payment — and by a law of that state the drawer or indorser of a bill so returned must pay it with 20 per cent, advance for damages, which the drawer in this case accordingly paid — Lord Camden admitted the drawer to prove the 20 per cent, under the commission, say- ing, that that per centage was part of the original contract ; for the nature of the engagement was to pay the bills when due, or the 20 per cent, in addition (according to the law of (1) Forster v. Surtecs, 12 East, (s) Ex parte Lee, 1 P. Wmo. 605. 782. (2) Ex parte Marlar, 1 Atk. 150. Sect. 15.] OF THE PROOF OF DEBTS. 263 Pennsylvania) the same as if it had been by express stipu- Bills and lation.(l) "!!!!_ Re-exchange, when it is only the value in sterling Re-ex- money of the bill payable abroad in foreign money, has ^yh"^^' been held proveable, notwithstanding the value of the proveable. foreign money was greater at the time of re-drawing, than at the time of negotiating the bill. (2) But the re-ex- change must not include damages and costs, arising upon protest of bills after the issuing of the commission. With respect to interest on bills and notes — the practice Intereston was formerly not to allow it to be pi'oved, unless it was LveabL expressed in the body of them (3) ; or unless there was a special agreement or custom of the trade to that effect (4) ; — the rule in Bankruptcy differing from the rule in Equity in this respect, which allows interest on bills and notes (pay- able on demand, or on a day certain) to be calculated from the demand, or the day. (5) But now, by the BltJi section of the new statute, the holder of any bill or note, which is overdue at the issuing of the commission — though interest is not reserved by it — may, nevertheless, prove for interest upon it up to the date of the commission, at such rate as is allowed by the Court of King's Bench in actions upon bills or notes. And where a creditor, with whom a bill of exchange had been deposited as a security, first proved his debt against the estate of the drawer (his principal debtor) and thereby, and by other means, reduced his debt to 14/., — he was held entitled to prove under a commission against the acceptor, not only the 14/. but also all the interest due upon his whole debt up to the time of making that proof, for the perfect liquidation of the account, in respect of which he held the bill as a security. (6) Where (1) Francis v. Riicker, Arab. (4) Ex parte J^mm^i??/, 3Bro.504. 672. Ex parte Mills, 2 Ves. 295. Ex (2) Ex parte Hoffman, C. B. L. parte Williams, 1 Rose, 399. 175, (5) Loivndes v. Collins, 17 V"es. (3) Ex parte Marler, 1 Atk. 151. 27. Ex parte Kock, 1 V. & B.342. Ex parte Coc^'s, l Rose, 317. Ex Ex parte Coc/w, 1 Rose, 317. parte Champion, 5 Bro. 436. (6) Ex parte Martin, 1 Rose,87. S 4 264- OF THE PROOF OF DEBTS. [Ch. 9. Bills and notes. a bill is drawn payable at a given time after date for a specified sum, " with lawful interest for the same," interest is to be computed from the date of the bill. (1) Insured may prove, though loss hap- pens after the com- mission. Agent may prove, where in- sured abroad. Life insur- ances. Insurance on foreign property not prove- Section XVI. Policies of Insurance. Formerly all debts which might become due and pay- able on policies of insurance, or bottomry and respondentia bonds, being (as such debts are) contingent in their nature, were not proveable under a commission of bankrupt, unless the contingency had happened before the act of bank- ruptcy. Relief was first afforded to creditors holding these securities by the 19 Geo. 2. c. 32. s. 2. which enabled them first to make a claim, and afterwards prove when the contingency took effect. The 5Sd section of the new statute adopts that provision, declaring that the obligee in any bottomry or respondentia bond, and the assured in any policy of insurance, made upon good and valuable consideration, shall be so admitted to claim, and after the loss to prove his debt or demand, and receive dividends, as if the loss or contingency had happened before the issuing of the commission against the obligor or insurer. And the person, also, who effects the policy, may prove for any loss, though not beneficially interested in the ship or goods, in case the person really interested is out of the realm. (2) Insurances upon lives are within this enactment ; for, though they are not expressly mentioned, the enacting words are sufficient to comprehend them. (3) A debt upon a policy of insurance on foreign property, though the policy is effected during peace, yet where the loss happens by capture by any British or co-belligerent yl) Doman v. Dibden, 1 Ry. & M. 381. (2) This last provision is taken from the 49 G. 3. c. 121. s. 16. (5) Cox\, Liotard,Doixg. 166. Sect. 17.] OF THE PROOF OF DEBTS. 265 vessel, after the commencement of hostilities, is not prove- Policies of able — not even after the return of peace (1); for every in- " ^"^""^^ ' surance on alie7i property by a British subject must be able, if loss understood, with this implied exception, that it shall not ^y British extend to cover a7ii/ loss during the existence of hostilities between the respective countries of the assured and assurers. Section XVII. Rent. A landlord having a general right to distrain goods for rent, as long as they remain on the premises for which the rent is due — neither the issuing a commission of bankrupt against the tenant, nor the messenger's possession of his goods, will prevent him from exercising that right. But Landlord by section 74. of the new statute, the landlord cannot now, ^?" ^P'y after the act of bankruptcy, distrain for more than one for one year's rent, — and that must have become due before the date year's rent, of the commission. If more than a year's rent, therefore, of bank- is due to him, he can only prove for the residue ; the law, ruptcy. in this respect, putting him now upon the same footing, in Bankruptcy, as when his tenant's goods are seized by the sheriff under an execution, in which case he is only en- titled to a year's rent out of the goods so seized. (2) As long, however, as the goods continue on the premises, whether before or after assignment to the assignees, or even after the assignees have sold them, the landlord will be entitled to distrain for the whole year's rent. (3) But in a Case, where the landlord proved the amount of Afterprov- the rent due to him under the commission, and permitted rent°and^ the assignees to sell the goods to a third person, who lying by (1) Ex parte Iree, 4 Mont, B. L. (3) Ex parte Plummer, 1 Atk. App. 13. 13 Yes. 64. Brandon V. 103. Ex parte Jacques, 1 Atk. Curling, 4 East, 410. 104. Ex parte Dillo7i, ibid. (2) 8 Ann. c. 14. OF THE PROOF OF DEBTS. [Ch. 9. Bent. for three years, can- not after- wards distrain. When goods taken off' the pre- mises, landlord cannot distrain, thereupon took possession of them, and resided on the premises — and the landlord, three years after proving his debt, distrained upon the goods as being still upon the premises, — Lord Hardwicke, after great consideration, determined, that the vendee of the goods was entitled to retain them ; and confined the landlord to his remedy under the commission. (1) And indeed it should seem now, under the equitable construction of the 59th section of the new statute, (which declares that the proving or claiming a debt by a creditor shall be an election to take the benefit of the commission, with respect to the debt so proved) that whenever the landlord had once proved or claimed the amount of his rent under the commission, his doing so would be deemed equally an election, and would amount to a waiver of his remedy by distress. Whenever the goods are taken qjf the premises, after being sold by the assignees, the landlord then loses his remedy altogether by distress, and can only come in under the commission j)i'o rata with the rest of the creditors. (2) And in one case, though he had in fact distrained before the bankruptcy, but the tenant had replevied the goods, and the replevin cause was pending at the time of the bankruptcy, the landlord was held to have lost his lien. (3) Nor, when the goods are once actually removed, is the landlord entitled to a lien for a year's rent under any equity of the statute, which gives the landlord a year's rent in the case of an execution (4) ; for a commission of bankrupt is not an execution within the meaning of that statute. (5) Therefore, where a sheriff seized and sold goods under an execution after an act of bankruptcy, it was held, that he was not entitled, out of the produce of the sale, to retain for a year's rent which he had paid to the landlord, unless he could show that such payment was (1) Ex parte Grove, 1 Atk. 103. (2) Ex parte Descharmcs, 1 Atk. 103. Ex parte Grove, ibid. (3) Bradyll v. Ball, 1 Bro. 427. (4) Ex parte Devine, C. B. L. 177.; but see 2 Bl. Com. 487. contra. (5) Lee V. Lopes, 1 5 East, 250. Sect. 17.] OF THE PROOF OF DEBTS. 267 made without notice of the commission. (1) But in an Rent. action by the landlord against the sheriff' for not paying a year's rent, it was held by the Court of Exchequer to be no answer, that the tenant was bankrupt when the execution was executed, and that the goods were therefore no longer his property, but that of the assignees, — and that the sheriff ought not to be liable both to the assignees and the land- lord. (2) If the goods however are fraudulently or clandes- except tinely removed by the assignees to avoid a distress for rent, j i ".i'^'^"' then the landlord has a right, under the 11 Geo. 2. c. 19. removed, s. 1., to follow the goods, and distrain them wherever he may find them, within thirty days after their removal. But, unless a landlord actuality distrain the goods of his But land- tenant, he can have no lien on them whatever for his rent, ^"^'l.has 111 11- no lien, though as long as they do contmue on the premises, he unless he has still the right to distrain. "When it is said, therefore, «^^"«% that a mortgagee of a bankrupt's leasehold estate, who pays the arrears of rent due to the bankrupt's landlord, may apply to the Court for an order, that he may stand in the place of the landlord with respect to his right to dis- train (3), — that can only have reference to a case, where the arrears have been paid upon a distress already made by the landlord, — or at least, where there are goods still re- maining on the premises for the landlord to distrain. Though a landlord cannot in general distrain until the Landlord rent becomes due, yet, if the agreement be otherwise, or "'''^y.Y there is a custom of the country to the contrary, there is a"ieement no objection to it in point of law. Therefore where a °'' '''^ ^^^' bankrupt (who had previously committed an act of bank- countrv ruptcy) took a shop, and agreed to pay half a year's rent distrain in advance, and by the custom of the country also that advance. proportion of rent was payable on the day on which the tenant entered, — the landlord was held entitled, before the first half year expired, to distrain the goods on the premises for half a year's rent; and the landlord having in fact (1) Ibid. (5) 1 Atk. 103. (2) Duck V. Braddyl, 1 5 Pri. 455. OF THE PROOF OF DEBTS. [Ch. 9. Rent. Where bailiff dis- training embezzles the sur- plus, and becomes bankrupt, tenant can only prove for the amount. Assignees of a bank- rupt lessee must elect whether they will take the lease« bought the bankrupt's goods at the sale under the commis- sion, it was also held, that he had a right to retain the amount of the rent out of the purchase money (1) due to the as- signees. In this case, though there was no actual distress, — yet, the landlord being in possession of the goods as a purchaser, it was considered that he had the remedy of distress in his own hands, by preventing the goods (as purchaser) from being removed off the premises, until he chose to exercise his rights as landlord. (2) On a distress for rent, goods were sold producing a sur- plus after satisfaction of the rent, which surplus remained in the hands of the bailiff, who afterwards became bank- rupt. The tenant died, and his executor claimed this money of the assignees, in preference to the other creditors of the bankrupt. But it was held that, as the bailiif had embezzled the money, the executor must come in with the rest of the creditors (3), though, if any thing had remained in specie^ the case might have been different. In order to protect landlords from any loss of future rent accruing after the bankruptcy of their tenants, it is enacted by the 15th section of the new statute, that if the assignees of a bankrupt, who is possessed of leasehold premises, shall not, upon being required by the landlord, elect whether they will accept or decline the lease, the landlord may apply, by petition to the Lord Chancellor, for an order that they shall so elect — and in case they shall decline the lease, then that the lease and the possession of the premises may be delivered up to the landlord. For further information on this head,, the reader is re- ferred to that part of the following chapter (4-) which treats of the duty of the assignees in collecting the bankrupt's property. (1) BucMey V. Taylor, 2T. R. 600. (2) It might, however, (as Mr. Christian suggests, Vol. II. 510.) have been contended in this case with some reason, that the fact of the landlord purchaning the goods under the commission, was rather an abandonment of his right to distrain, than an assertion of it. (3) Ex parte Dobson, 7 Vin. Ab. 74. (4) Post, Ch. X. Sect. 18.] OF THE PROOF OF DEBTS. 269 Section XVIII. Interest. The rule in Bankruptcy as to the proof of interest is, Interest that none is proveable but what arises by contract; for if °"'^ , , . . , p , proveable there be no contract, interest is then only matter of da- when aris- mases, and is given as such merely in an action at law. ^"S "y o ' o •' • . 1 contract. When, indeed, interest is part of the contract, it is then as much a debt as the principal ; but where it is matter of damages, — as damages not liquidated cannot be proved under the commission, so neither can interest in the shape of damages. (1) And this principle has been recognized, as well in the event of a surplus (2), as in the case of proof. But, whether the contract to pay interest is express^ or How con- implied, the creditor is in either case entitled to interest at j^. gy-_ law upon his debt, — and the contract may be collected denced. either from the agreement between the parties, from the nature of their dealings with each other, or from the usage and custom of trade, as applicable to the particular trans- actions that have passed between them. (3) Interest on hills of exchange and promissory notes was Interest (as we have already seen) (4) before the present statute not an^inoteg proveable, unless the bill or note bore interest on the face of it ; but it is now proveable down to the date of the commission. A specialty creditor cannot have interest calculated, so not al- as to exceed with the principal the amount of the penalty (5) beyond contained in his security. penalty. (1) Ex parte Furneaux, 2 Cox, (4) Ante, 265. 219.; and see post. " Damages." (5) Bromley v. Goodere, 1 Atk. (2) Ex parte Champion, 3 Bro. 80. Ex parte Mills, sVes.SCl. 436. Ex parte Hankeij, ibid. 504. Tew v. Earl of Winterton, 3 Bro. Ex parte Mills, 2 Ves. 295. 489. Knight v. Maclean, ibid. 495. (.3) Ibid. Ex parte Boyd, 1 G. &J.285. 270 OF THE PROOF OF DEBTS. [Ch. 9. Interest. Depositary not charge- able. Com- pound in- terest not allowed, except on a contract to pay it. Interest only proveable up to date of com- A mere depositary is not in general chargeable with in- terest, unless he has himself made interest of the property deposited. (1) Interest upon interest, that is, com'pound interest^ is not commonly allowed (2) ; though it is said, that in the deal- ings of merchants, where there are regular accounts settled from time to time, and a sum for interest debited and al- lowed by either party, interest upon interest is then admitted to be proved, on the ground of an original con- tract to pay it ; and that the settling accounts in that way is evidence of an original contract. And in a case where an executor became bankrupt, and the testator had directed the property to accumulate^ Lord Eldon charged the estate with interest at 5 per cent, with rests, on the princi- ple of an implied contract to pay such interest, in respect of the trust imposed upon him. (3) But no creditor is allowed to prove for interest, calcu- lated to a period lower than the date of the commission (4) ; though in one case (which was, however, under a special act of parliament (5) ) proof of interest subsequent to the com- mission was allowed, on a claim by certain commissioners appointed under that act; and as proof for interest after the commission cannot be made directly, so neither can it be indirectly thrown upon the estate, except, indeed, in the event of a surplus. (6) Thus, if a mortgagee, after sale of the mortgaged premises, applies to prove the residue of his debt, he is only entitled to prove for interest up to the date of the commission (7) : though if the estate mortgaged is sufficient to answer the principal and interest, the assignees cannot in that case redeem without paying interest to the (1) Bromley \. Child, 1 Atk. 259. (,2) Ex parte Morris, 1 Ves. 132. Bromlei/ v. Goodere, supra. Wer- ing V. Cimliffe, 1 Ves. 99. (3) Dornford v. Dornford, 1 2 Ves. 127. (4) Bromley v. Goodere, supra. Ex parte Bennet, 2 Atk. 527. 14 Ves. 573. (5) 51 G. 3. c. 15. (6) Ex parte Baton, 1 G. & J. 332. Ex parte Gass, ibid. 338. n. (7) Ex parte Wardell, C. B. L. 181. Ex parte Hcrcy, ibid. Ex parte Badger, 4 Ves. 165. Sect. 18.] OF THE PROOF OF DEBTS. 271 time of redemption. (1) But, where there was an order for Interest. superseding a commission, upon payment by the bankrupt of what should be settled by the Master to be due to the creditors under the commission. Lord Hardvvicke held, that the creditoi's were entitled to interest fi'om the date of the Master's report to the day of payment, — as in the com- mon case of a reference to the Master in a cause to state what is due for principal and interest. (2) Where there is a mutual credit between the bankrupt and the creditor, the computation of interest should be stopped at the same time on both sides of the account. In a case where the creditor had sold goods to the bank- Where rupt, and agreed, if prompt payment were made, to deduct ^„Yee=. to 33 per cent, from the price — but no payment being made allow dis- at the stated times, the creditor applied to prove the whole '^°""'' °" ' . prompt charge for the goods, without deducting the 33 per cent., payment. contending, that this was a contract to accelerate payment, rather than to give day of payment, — the Lord Chancellor said, they could not make the debt more than the real price of the goods, and dismissed the petition. (3) If a surety of the bankrupt pays the debt, and the Surety interest accmed subsequent to the bankruptcy, it has been ^^owe for decided, that he cannot prove such subsequent interest subse- under the commission, but only in the same way iis the ^"^"'^ , •' ^ interest. original (4) creditor. But in case the estate of the bankrupt produces a sur- But ifa sur- plus, after paying 205. in the pound, then by section J 32. Pj^'^^^'. ^^f^ of the new statute, the creditors, whose debts are by law allowed to entitled to carry interest in the event of a surplus, are first credi- •^ . * ' tors, sub- to receive interest on their debts at the rate reserved, or by jecttocer- law payable thereon, to be calculated from the date of the tani pn- onties. commission. And after such interest shall have been paid, then all other creditors who have proved may receive in- (1) 7Vin. Ab. 110. 191. 4Ves.678. S. P. Ex parte (2) Ex parte Rooke, 1 Atk. 244. Pigoti, 5 Maud. 136. (5) Ex parte Ainsworth, C. B.^L. (4) Ex parte WUson, 1 Rose, 137. 272 OF THE PROOF OF DEBTS. [Ch. 9. Interest. As to the rights of the two classes of creditors. Additional iterest iiot to di- minish bankrupt's allowance. Separate creditors not en- titled to it, till joint creditors paid 20*. in the pound. terest on their debts from the date of the commission at the rate of 4 per cent. (1) The former rules will of course be applicable, as to the rifrht of interest between these two classes of creditors. Thus the holders of bills of exchange — if no interest is re- served upon the face of them, or by express or implied agreement — will be included only in the latter class of creditors, and be postponed until the payment of all interest that may be due to the first class. For the 51th section of the statute, which (as we have seen) (2) allows holders of bills to prove for interest, does not alter the nature of the agree- ment between the holder and the party liable upon the bill, but only gives the holder a right to prove for a demand not proveable before. So, upon the principle that a bond creditor is not entitled to interest beyond the penalty, it will follow, that such a creditor will, to the amount of the penalty of the bond, be entitled to interest with the cre- ditors of the first class, viz. of those whose debts carry interest — and, for any interest beyond the penalty, he will rank with the creditors of the second class. (3) This claim, however, of the creditors for additional in- terest in the event of a surplus, it has been determined, cannot be set up by them so as to diminish the bankrupt's allowance. (4) Where the commission is a joint one, the creditors of the separate estates are not entitled to such additional interest upon their debts, until the joint creditors have also received 20s. in the pound, — the rule being, that where there is a surplus of the separate estate, that surplus shall not go immediately to pay such interest to the separate creditors, but shall first be applied to make the joint creditors equal (1) And see Butcher v, Churchill, 14 Ves. 575. Ex parte Hill, 1 1 Ves. 654. Ex parte Boyd, 1 G. & J. 285. (2) Ante, 263. (3) See Eden's B.L. 367. et seq. and a note by the same learned author, to the case of Tew v. Earl of Winterton, in his edition of Brown's Reports, vol. iii. 489. (4) Ex parte Morris, 5 Bro. 79. 1 Ves. 152.; and see post, " Bank- rupt's Allowance." Sect. 18.] OF THE PROOF OF DEBTS. 27S with the separate creditors, as to the principal of their re- Interest. spective debts. (1) And where both joint and separate Claims of estates have been paid 20s. in the pound, and there hap- joint, or pens to be a debt due from the separate estate to the joint ^^P^^^^^> estate, or from the joint estate to the separate estate, — upon each neither the partnership can be admitted a creditor upon '^'-"^'"' "°' . . * to coin- the individual partner, nor the individual partner upon the pete with partnership, until all such additional interest is paid to <^'"^"i^o''S' every class of ci'editors, who have proved debts under the commission. For as the partnership itself, in such a case, or some of the partners, are themselves debtors to the cre- ditors of every class — and as the principle is, that the debtor cannot come in competition with the creditor, — it follows, that neither the partnership, nor any individual partner, can claim a debt from the estate of either one or the other, until all the creditors of each are fully satisfied their demands — which include both the principal and interest of their respective debts. (2) Where the surplus consists of real, as well as of personal Personal estate, the personal estate is first to be applied in payment ^^^^^^ |P of interest — and if that is deficient, then the real estate may before real be resorted to. (3) And it seems, that the commissioners ^**^^te. may make the computation of such additional interest, without a previous order of the Court. (4) A creditor, who has given a receipt in full, or delivered As to cro- up securities, under a mistaken impression that there would "'^or being be no surplus, is not thereby barred of his right to interest in the event of a surplus. (5) Where a creditor is obliged to petition, in respect of his Where proof, for payment of a dividend which has been declared ^.'^t>?*'[ ^ under the commission, he will be entitled to interest upon interest (1) Ex parte j9oarrfmaw, C.B.L. (3) Bromley v. Goodere, 1 Atk. 184. Ex parte C/fir^e, 4Ves. 677. 81. Ex parte Reeve, 9 Ves. 590. (4) Ex parte Morris, 1 Ves. 132. (2) 9 Ves. 588. (5) Ex parte Deei/, 2 Ball, & B. 77. 274' OF THE TROOF OF DEBTS. [Ch. 9. Interest such dividend ; and in such a case it was ordered to be nj^g' computed at the rate of 5 per cent. (1 ) on dividend. A plaintiff recovering judgment before bank- ruptcy, may prove for costs, though not taxed. But costs incurred after bank- ruptcy, not prove- able. Section XIX. Costs. (And see ante, " Judgments," and post, " Damages.") By section 58. of the new statute, if any plaintifF{2) in any action at Law, or suit in Equity, or petitioner in Bank- ruptcy, or Lunacy, shall have obtained any judgment, decree, or order, against any person who shall thereafter become bankrupt, for any debt or demand, in respect of which such plaintiff or petitioner shall prove under the commission, he may also prove for the costs which he shall have incurred in obtaining the same, although such costs shall not have been taxed at the time of the bankruptcy. But costs incurred after the bankruptcy are not prove- able under the commission ; though, in actions of contract, they are in general discharged by the certificate, by reason that they follow the original debt. So that, if a creditor bring an action against a bankrupt after a commission has issued, he takes the chance of losing his costs, in case the debt should be barred by the certificate. (3) (1) Ex parte Loxley, 1 G. & J. 345. (2) It will be observed, that this section takes no notice of a judg- ment obtained by a defendant in any action or suit ; though it was no" doubt intended, that the costs of a nonsuit, or a judgment, in the defendant's favour, occurring be- fore the bankruptcy, should be equally proveable with those of a judgment for the plaintiff. The provision contained in this section, also, as to the proof of costs ai law, seems to be wholly unneces- sary ; for such costs must always be taxed, before final judgment is obtained ; and were, indeed, always proveable, when judgment was re covered before the bankruptcy Gulliver v. Drinkwater, 2 T. R. 261. (3) Willett V Pringle, 2 N. R. 1 90. ; and see Blaiidford v. Foote, Cowp. 138. Lewis V. Piercy, 1 H B. 29,, and see post, 278. Sect. 1 9.] OF THE PROOF OF DEBTS. 275 it* It was for some time held — and the doctrhie was re- Costs. cognized by many decisions (1) — that the judgment in all /-T" actions, when signed, related back to the verdict ; and that not be the costs de incremento upon the iudument, accordinf; to a P''°^^''' . p , , where fair and equitable relation of law, became annexed and judgment consolidated with those assessed by the jury; and mijrht signed 1 1 1.11 . . ^^ . p after bank. be consequently proved as a debt under the commission, it ruptcv, the verdict was prior to the bankruptcy. The authority though . verdict be of these cases, as far as they related to the right of proof, hcfore. was first doubted by Lord Eldon, in a very learned and comprehensive judgment pronounced by him in a case, where both the verdict and the judgment occurred after the bankruptcy — and in which he decided that, notwith- standing the costs in such a case might be discharged by the certificate, they were, nevertheless, not proveable under the commission. (2) In delivering his opinion upon this occasion, his Lordship intimated that, in the decision of the cases above referred to, (all of which had been cited in the argument) the Courts had not presented to their view, two former decisions of great authority (3), in which a different principle was established. A case was aftei'- wards sent for the opinion of the Court of King's Bench; and, after full consideration of all the previous authorities, that Court finally determined that, although a verdict be obtained before an act of bankruptcy, yet, if final judgment be not signed till afterisoards, the costs could not be proved under a commission. (4) And a similar decision has been since come to on this point by the Court of Common Pleas, — Lord C.J. Gibbs observ- ing, that the question could not be tried better, than by (1) Ayletty. Harford, 2 Bl. 1317. (2) Ex parte Hill, 1 1 Ves. 646. Graham v. Benton, 1 Wils. 41. (3) Ex parte TocJa?, cited 5 Wils. sStr. 1196. More accurately re- 270. 11 Ves. 651. Walter y.Sher- ported in 14 East, 200. note (a). /oci5:, cited ibid. Longford \. Ellis, 1 H. B. 29. note. (4) Ex parte Charles, 14 East, 14 East, 202. note. Ex parte 197. Simpson. T 2 676 OF THE PROOF OF DEBTS. [Ch. 9. Costs. Except in an action ex con' iractu. asking, whether an action can be brought upon a verdict, before judgment is signed. (1) There is a distinction, however, still taken between a verdict in an action on a contract ^ and a verdict in an action on a tort {2); — it having been recently decided by the Vice- Chancellor, that where in an action ejc con- tractu, the verdict was before bankruptcy and the judg- ment afterwards, the costs de incremento are incorporated with the existing debt by the verdict, though not ascer- tained in amount until the judgment — and were, there- fore, proveable under a commission ; but that in tort there is no debt whatever, with which the costs can be incor- porated, until the judgment. (3) This distinction, however, •does not seem to have been much attended to by the Court of Exchequer in an action for damages on a tort, in which a verdict was taken subject to a reference — and in which, though the award was not made, nor the judgment en- tered up until after the defendant's bankruptcy — it was decided, that both costs and damages could be proved under the commission (4), — a decision, utterly at variance with the principle previously laid down by the Lord Chancellor, and the Courts of King's Bench and Common Pleas, in the previous cases of ex parte Hill, ex parte Charles, and Walker v. Barnes. The judgment, indeed, in this case, though not entered up until after the act of bankruptcy, was entitled as of the previous term (5), and this may probably have been taken into consideration by the Court, though it is not stated as a reason for the judg- ment; for on no other principle, is it apprehended, can this decision be supported. (1) Walker v. Barnes, 1 Marsh, 546. 5 Taunt. 778. (2) This distinction appears to have been first acted upon by the present Vice-Chancellor, though it was previously approved of by Lord Eldon in ex parte Hill, and was also taken in argument in Longford v. Ellis, 1 H. B. 29. (o) Ex parte Poucher, 1 G. & J. 385. Ex parte Farkinson, ibid. 386, note (a). (4) Beeston\. White,! Price, 209. (5) And see, as to the relation back of a judgment to the first day of the term in which it is signed, the recent case of ex parte Birch, 4 B. & C. 880. Sect. 19.] OF THE PROOF OF DEBTS. 277 A new line of distinction, also, has been lately adopted Costs, by the Court of King's Bench, — where it has been holden, ^yj^^j!^ that, if the judgment in an action of tort be obtained before judgment the issuing of the commission, though not until after the act ^\^^^^'^ of bankruptcy, the judgment for both damages and costs commis- may then be proved as a debt hona fide contracted before «|o»> costs the issuing of the commission, within the meaning of the proveable. 46 Geo. 3. c. 135. s. 2., — and, consequently, within the ^Tth section of the present statute (1), which adopts the same provisions. Upon a careful review of all the above cases, the follow- Rules dc- ing rules seem to be clearly deducible from them : i^^^^ ^ 1st. Where the verdict is not obtained until after the act the cases. of bankruptcy, the costs can in no case be proved, whether the action is on a contract, or in tort. 2d. Where the verdict is before the banlcruptcy, and judgment is obtained before the issuifig of the commission — though not till after the act of bankruptcy — then the costs in actions both of contract, and of tort, may be proved, as a debt contracted before the issuing of the commission, pro- vided the creditor, when judgment was obtained, had no notice of the act of bankruptcy. 3rd. Where the action is on a contract, and there is a verdict before the bankruptcy, then, although judgment be not obtained until after the bankruptcy, and even after the issuing of the commission, the costs are proveable, as being consolidated with the original debt by the verdict, though not ascertained until the judgment. 4th. But where the action is in tort, and the bank- ruptcy, as well as the issuing of the commission, occur bettsoeen the verdict and the judgment ,• — then, as there is no debt whatever with which the costs can be incorporated until the judgment, the costs in this case cannot be proved. With respect to costs upon a judgment of nonsuit, the As io costs statute, as has been already observed (2), is wholly silent, nonsuft- (l) Robinson v. Vale, 2 B. & C. (2) Ante, page 274. note (2). 762, 4 Dowl. & R. 430. Ex parte Birch, 4B. &C.880. T 3 278 OF THE PROOF OF DEBITS. [Ch.9, Costs. maybe proved, if judgment entered up before commis- sion. In some cases costs not prove- able, though barred by the certifi- cate. Judgment revived by sci.fa. making no provision whatever for the proof of a defendants costs, whether on a judgment of nonsuit, or judgment after a verdict. It was, indeed, formerly determined, that where the nonsuit was before the bankruptcy of the plaintiff, the costs might be proved, though the judgment was not ob- tained till afterwards — on the ground that the costs related back to the nonsuit (1), by virtue of which the debt might be said to exist before the bankruptcy. But this position is to be only found in two of the cases, which were impugned by Lord Eldon in ex parte Hill (2), and which seem to have been overruled by the above case of ex parte Chat'les. And it has been moreover since decided, that where a defendant obtains a verdict^ and the plaintiff becomes bankrupt before judgment is signed, the costs cannot be proved under the commission, on the principle, that no debt arises in such a case until judgment is signed. (3) But in a subsequent case, where the judgment on a nonsuit was entered up before the commission issued against the plaintiff though not until after the act of bankruptcy, the costs were held to be proveable (in conformity with the principle, which governed the Court of King's Bench in the above case of Robinson v. Vale) as being a debt contracted before the issuing of the commission. There are several cases, as has been already observed (4), where costs may be discharged by the certificate, and yet not proveable under the commission (5); though formerly the right of proof was considered co-extensive, in every case, with the effect of the certificate. Thus, the costs of all proceedings upon an action of contract, which (for want of a previous verdict) cannot be proved, are, nevertheless, barred by the certificate, as following the original debt. (6) So, if a judgment recovered before the bankruptcy be re- vived by scire facias after the bankruptcy, it has been (1) Hurst V. Mead, 5T.R. 565. Wafts V. Hart, 1 Bos, & P. 154. (2) 1 1 Ves. 646. (.i) Walker V. Barnes, 5 Taunt. 778. 1 Marsh. 546. (4) Ante, 274. (5) Per Lord Eldon, 1 1 Ves. 649. (6) Ex parte Poucher, ante, 276. Sect. 19.] OF THE PROOF OF DEBTS. ,279 decided, that the bankrupt's certificate delivers him from Costs. the costs of the sci. fa., as well as from the original judg- ' 7" ment; but, it does not follow, that the costs of the sci. fa., bank- which have been incurred by the act of the creditor in re- ''up'^cy. viving the judgment, can be proved (1) under the com- mission. It has been also decided, where a judgment is Quaere: obtained before the bankruptcy — if the defendant after his ^^^^re y -, ^ . . • c • , . defendant bankruptcy brmg a writ oi error to reverse it, and the brin'^s a judgment be affirmed — the costs of the writ of error relate ^'t of back to the judgment, and are barred by the certificate. (2) bank- But it would seem to follow, in this case, that the costs ruptcy. could likewise be proved; for the plaintiff having in reality, though not effectually, obtained judgment before the bank- ruptcy, the case seems to fall within the above clause of the statute, which enables a plaintiff to prove for the costs incurred in obtaining judgment against any person who shall afterwards become a bankrupt, though not taxed at the time of the bankruptcy; and a judgment of affirmance in error is equivalent to pronouncing judgment (3) in the original action. And where the judgment is not obtained until after the bankruptcy, in an action for a debt, and the defendant brings a writ of error which is nonprossed — the defendant being held to be discharged by his certificate from the costs (4) — it is apprehended, that the costs in this case might be likewise proved under the commission ; for, the action being on a contract, they may be con- sidered as incorporated with the original debt, according to the principle of the foregoing cases; and being in- curred, moreover, by the act of the bankrupt, and not by the act of the plaintiff, it would be unreasonable to hold, that the bankrupt should be discharged from them, and the plaintiff be at the same time unable to prove them under the commission. (5) (1) Phillips V. Brown, 6 T. R. (4) Scoti v. Ambrose, ibid. 282. (5) The most consistent rule, as (2) Ibid. it appears, would be, when the (3) 3 M. & S. 326. costs are thus occasioned by the T 4 280 OF THE PROOF OF DEBTS. [Ch. 9, Costs. Costs in Chancery proveablc, though not taxed till after bank- ruptcy. Before the new statute, the costs of a suit in Chancery not taxed till after the bankruptcy, though the order for taxation was made before, could not be proved under a commission, — it being held that it was the taxation which constituted the demand ( 1 ), and that that could not relate back to the order. But now, by reference to the above section of the statute, it will be seen, that where the order or decree is obtained before the bankruptcy, the costs of obtaining it may be proved, though not taxed till after the bankruptcy. Whether the words of the section will in- clude the costs of a suit directed to be paid by an a^ard, where there is 7io order or decree for the reference, remains to be decided. (2) Where damages contin- gent, can- not be proved. Section XX. Damages. (And see ante, " Judgments" and " Costs") Where damages are contingent and uncertain, as in all cases o^ tort — and also in matiy cases of a demand founded upon contract, as where the damages remain to be inquired into, or where damages may only by possibility arise on a stipulation not previously broken — they cannot in either case be proved under a commission. (3) For the 5Qth section of the act, which we have already considered (4), would not, it is apprehended, meet the last of these cases; that section applying solely to proof of a debt (that is, a sum certain) payable on a contingency — and not to an un- certain sum payable upon an uncertain event. bankrupt bringing a writ of error after the bankruptcy, to hold in that case, that the costs should neither be proveable under the commission, nor discharged by the certificate, as being a debt con- tracted by the bankrupt after the bankruptcy. (1) Ex parte Sneaps, C. B. L. 193. (2) See Rex v. Davis, 9 East, 518., and Ex parte Kemshead, 1 Rose, 149. (3) Utter son v. Vernon, 4 T. R. 571. (4) Ante, " Contingent Debts." Sect. 20.] OF THE PROOF OF DEBTS. 281 With respect to cases o^ tort : — damages claimed for an Damages. assault and battery ( 1 ), or for slander — or even in trespass (j^ses of for mesne profits (2), in which the rent may not be the tort. only measure of damage, — or damages in an action of trover (3), if they are incapable of being liquidated, — can in no case be proved under a commission ; for, in each of these cases, the claim of the party amounts in law to nothing more, than an alleged cause of action against the bankrupt — and a jury can only determine the amount of the damages he is entitled to — or whether, in fact, he shall have auT/ damages at all. In one case, indeed, it was holden, that damages (though ascertained by the verdict of a jury before the act of bankruptcy) were not proveable, any more than the costs, if final judgment was not signed until after the bankruptcy. (4) But it has been since determined May be that when the iudo-ment is obtained before the issuim of I^jo^^d JO ^ G .y when the commission^ the damages are then proveable, as con- judgment stituting a debt contracted hona fide within the meaning of before the . coniiiiiS" the 47th section of the statute. (5) And in a very recent sion. case it was holden, that though the judgment was not actually signed until three days after the commission issued, yet — as a judgment relates back to the first day of the term in which it is signed, which in this case was before the issuing of the commission — that both damages and costs could be proved. (6) In considering this branch of the subject, there seems to Semble, be a distinction, between the right to prove damages already "^"^^?^' ascertained by the verdict of a jury — and the right to prove proved, merely upon the judgment, or for the costs. For though ^y.^^" ^f' , , *= diet only a judgment is not proveable, nor costs m many cases (7), before unless the judgment is obtained before the issuing of the bank- commission, — yet, as a uer^/cns ^nVna ya«V evidence of a (1) Walter v. Sherlock, 5 Wils. (4) Buss v. Gilbert, 2 M. & S.70. 272. •' (5) Robinson v. Vale, 2 B. & C. (2) Goodtitle v. North, Doug. 762. 4 Dowl. &R. 430. 562. (6) Ex parte Birch, 4 B. & C. (3) Parher v. Norton, 6 T. R. 880. 695. (7) Ante, 275. 282 OF THE PROOF OF DEBTS. [Ch. 9. Damages, debt(l), and is, at least, a guide to the commissioners to measure the amount of the damages which the creditor claims, it should seem, that when proof is offered merely for damages (without any claim for costs) by reason of a verdict before the bankruptcy, the commissioners in such a case have a discretionary power to inquire into the pro- priety of the verdict, and to admit the creditor to prove for such damages, provided they are satisfied of the justice of his claim. (2) For it is the uncertainty only of the amount of the damages, which prevents their being proved under a commission ; a reason which no longer holds, when they are already liquidated and ascertained. Thus, where an action was brought for the seduction of the plaintiff's daughter, and was compromised before judgment by the defendant giving the plaintiff two promissory notes in satis- faction of the damages, — it was held, that the notes were proveable under a commission against the defendant, as being liquidated damages assessed between the parties. (3) So, even in an action of trover, if the demand can be liquidates, it can be proved. (4) Where In all cases, too, where a creditor, having a right of action creditor f^^ ^^ TORT, is entitled to waive the tort and bring an action may waive . o the tort as for money had and received, or upon a contract for a and bring gjven sum, he may prove his demand (5) under a commission, and re- Therefore, where goods have been paid for, but not deli- ceived, vered by the bankrupt (6) according to agreement ; or where ' money is levied by the sale of goods under an execution which is afterwards set aside (7); or where a bill of ex- change, having been entrusted to the bankrupt to receive payment when due, is discounted by him, and the proceeds applied to his own use (8); or where the bankrupt pledges a debenture for a debt of his own, which had been de- (1) Per Lord Eldon, 1 Rose, 1 95. (5) Wright v. Hunter, 1 East,50. (2) Ibid. (6) Utterson v. Vernon, 5 T. R. {3) Es. parte Mumford, 15Ves. 548. B90. (7) Ibid. (4) Per Buller J. Doug. 168. (8) Parker v. Norton, supra. Sect. 20.] OF THE PROOF OF DEBTS. 283 posited with him for a special purpose (1) ; or where money Damages. is embezzled by a bailiff upon a sale of goods under a distress for rent (2) ; — in all these cases, as the amount of the creditor's demand against the bankrupt is capable of being ascertained without the intervention of a jury, and the creditor can safehj siioear to it, he is entitled to prove it under the commission. But if the creditor, in any of these cases, insists upon his claim for the consequential damage arising from the tortious act of the bankrupt, then he can- not be admitted to prove; for the damages so claimed are uncertain and contingent, and can only be estimated by a jury. In regard to claims founded upon contract, such as a Claims . • f I 1 demand either for goods sold, or for work and labour — o ' _ _ on a coil' where there is no agreement as to the price, and which tract, would be recoverable at law in an action on a quantum though -^ sounding meruit — the demand, though sounding in damages, can be in da- proved, because it can be easily ascertained, and the ere- mages, T i-nc 1 • • o proveable, ditor can have no difficulty m svveanng to the amount, oo tvhere where a bond (as we have before seen (3) ) is given to re- amount place stock on a certain day^ and the bond is forfeited certained. before the bankruptcy, the damages for not replacing the Bond to stock can be proved, because they can be easily estimated, replace — the amount proveable in this case, being the value of the stock at the date of the commission, together with the amount of the dividends receivable before the bank- ruptcy. (4) And where navy bills were deposited with a Account- firm, who gave an accountable receipt for them, and one ''^^'^ ^^' of the firm became bankrupt, the owner of the bills was navy bills. held entitled to prove for the value of them on the day of the deposit. (5) Not only, indeed, may the creditor prove his demand against the bankrupt in any of these cases, but he is now in fact compelled to do so, with a view to his (1) Johnsonv. Spiller,Doug.l67. (4) Exparte Leilch, C.B.L. 149.; (2) Ex parte Dobson, 7 Vin. Ab. and see ante, 256. 74. (5) Bromlei/ V. Child, I Atk. 2 5S. (3) Ante, 236. 284. OF THE PROOF OF DEBTS. [Ch. 9. But not proveable where damages uncertain. Damages, own security ; for all such demands arising from any breach of contract^ which can with any certainty be liquidated, are discharged when the bankrupt obtains his certificate. ( 1 ) But unliquidated damages, though arising on a contract, cannot be proved, if there is any uncertainty in the mode of estimating them. Thus damages sustained from a breach of covenant, in not building a certain number of houses within a given time (2), in not having full power and authority to sell a ship (3), or in not indemnifying the assignor of a lease from the covenants contained in it (4), have been in each of these cases held not proveable under a commission. For in all such cases a variety of circumstances must be taken into consideration, which may either in- crease, or mitigate, or even sometimes altogether excuse the damages, and which it is the peculiar province of a jury to determine. And where there is even a penalty, or specific sum of money made payable in a bond of in- demnity, or covenant to secure performance — as upon a covenant in a lease not to plough up ancient meadow — the penalty, it has been held, cannot be proved as a debt ; as it is not the measure, but only Ihnits the extent, of the da- mages to be claimed in case of a breach. (5) (1) Forster v. Surtees, 12 East, 605. (2) Bannister v. Scott, 6 T. R. 489. (3) Hammond v. Toulmin, 7 T. R.6ia. (4) Mai/or V. Steward, 4 Burr. 5439. Ludford v. Barber, 1 T. R. 86. Auriol V. Mills, 1 H. B. 433. 4T.R. 94. (5) 5 Wils. 270. Sect. 21.] OF THE PROOF OF DEBTS. 285 Section XXI. Sureties. 1. As to the Bights of a Creditor against the Banh-upt Surety. 2. As to the Rights of the Solvent Surety against the Bank- rupt Debtor, or Co-Surety. 1. As to the Rights of the Creditor agai?ist the BaJifcrupt Surety. Where a surety has become bankrupt, the right of the Right to creditor to prove under the commission has been con- pj'oye f 1 against sidered to depend upon, whether the engagement or the surety, surety was absolute, or conditional, at the time of the bank- ^'^^^ ^*^, . . uepcnds* ruptcy. For the 49 Geo. 3. c. 121. s. 8. which gave reHef to the surety as a creditor, has been held not to apply to cases, where the. surety himself becomes bankrupt [\) ; and there is nothing contained in the corresponding section of the new statute, which alters the law in this respect. Such cases, therefore, must be considered as falling within the rule respecting contingent debts contained in the 56th section of the new statute. (2) If the engagement of the surety be absolute, the creditor Where the has a right of course to prove, independently of the power ^"S^g^- , , 7.1 1 "'C"t ab- given by the B6th section — as where the surety enters solute, cre- with the principal into a joint and several bond payable by ^'''^'' '"^y instalments, and before the first instalment falls due, the course, surety becomes bankrupt; — for in such a case the surety himself is considered as a principal. (3) But, if in this deducting case the principal, as well as the surety, become bankrupt, what he received. (1) Ex parte McMillan, Buck. (2) See ante, " Contingent 287. Debts." (.-) Brooks V. Lloyd, 1 T. R. 17. ^8a OF THE PROOF OF DEBTS. [Ch. 9. Proof against sureties. When the engage- ment con- tingent, cannot be proved before con- fcingency. and the obligee first proves his whole debt against the principal, and i-eceives a dividend, he must deduct the amount of the dividend, and prove against the surety only for the residue. ( 1 ) So, indeed, where the engagement is not decidedly absolute — as where the creditor receives a bill of exchange from a surety, to secure the payment of goods sold to the principal, which are afterwards partly paid for by the principal — the creditor can only prove against the estate of the surety, the sum remaining due for the goods (2), and not the full amount of the bill. And where A., previous to bis bankruptcy, guaranteed B. and Co. against any loss, on account of the non-payment of an instalment by certain joint debtors of B. and Co. ; and one of the joint debtors becoming bankrupt, B. and Co., under an order for the proof of joint debts under his separate commission, proved the amount of the instalment, and re- ceived a dividend, — it was ordered, that the benefit of the future dividends should be sold, and the produce paid to B. and Co. — and that the monies so received by them, to- gether with the amount of the former dividend, should be deducted from the instalment — and that B. and Co. might then prove for the difference under A.'s commission. (3) If the engagement of the surety be only collateral^ and depending on a contingency, then, unless the contingency has happened before the application to prove, the debt cannot be proved under a commission against him ; unless, indeed, it can be considered such a contingent debt, as that a value can be set upon it by the commissioners under the SQili section. It will be advisable, perhaps, to consider some of the decisions on this head, notwithstanding they occurred before the present statute, the better to inquire how far the words of the new enactment as to contingent debts will be applicable to cases of a similar nature. (l) Ex parte Wildman, 1 Atk. (2) Ex parte J?m£?er, Buck.381.; 109. 2 Ves. 115. Master V. Buclc- and see ante, 249. nell, 2 M. & S. 59. (s) Ex parte Beid, Buck. 259. SeJCtJ 21.] OF THE PROOF OF DEBTS. 287 Where a surety joined in a bond, conditioned that the Proof against sureties. principal, his executors, or administrators, should repay '^~'^"" the money within twenty days after the expiration of five years, in case he should so long live and enjoy the benefit ^ "." ^ of the loan ; and if he died before, then that his executors, &c., should repay it within three months after his death, — the bond in this case was held not proveable under a com- mission against the surety, unless there had been a pre- vious forfeiture by the breach of any of the conditions. ( 1 ) So, where J. S. agreed to pay a sum of money to A. by or cove- instalments, and B. covenanted with A., that in case the "^"*' said sum, or any instalment thereof, should not be paid to A. at the times, and in the manner, provided for by the articles, B. would upon demand pay to A. the said sum, or so much thereof as should not be paid at the said times, &c. — and no instalment became due until after a commission of bankrupt issued against B. — it was held in this case, that A. could not prove under the commission (2) ; though now, it is apprehended, under the 56th section of the new statute, he might prove for any instalment already due, notwithstanding it did not become due until after the issuing of the commission. So, where a surety, or agree- in consideration of a premium, gave a promise in writing '"^"^ *^ to be answerable for the due payment of a note of hand contin- of a third person, and before the note was due became a S^"* P^y" bankrupt, — it was held, that the creditor was not entitled, upon such an undertaking, to prove the amount of the note under the commission. (3) But if in this case, also, the note had been due, and default had been made in the payment of it before the application to prove it against the surety, he creditor would, under such circumstances, be admitted now to prove it as a contingent debt. Where a man becomes bail for another, and before he As to bail, is fixed, is made a bankrupt — or if he is bail in error, and P'"^^^^'^^" ' ^ now be (1) Alsop V. Price, Doug. 160. (.5) Ex parte Adney, Cowp. 460. ; (2) Hoffham v. Foudnnier, 5 M. and see ex parte Gardner, 1 5 Ves. &S.21. 286. OF THE PROOF OF DEBTS. [Ch. 9. Proof against sureties. made, though not fixed till after bank- ruptcy. Where surety dis- charged by creditor taking a collateral security, or com- position. On a bond for per- formance of cove- becomes bankrupt before judgment is affirmed — the debt in each of these cases, being contingent at the time of the bankruptcy, could not formerly be proved against him. (1) But now, if judgment be affirmed in error, or the bankrupt be fixed as bail in the action, before the application to prove, the time of the bankruptcy would make no differ- ence in the right of proof. The discharge of the principal debtor is in general a discharge of the surety; and an agreement by the creditor to take a collateral security from another person in full of his demand, operates to the same effect. (2) But the dis- charge of a surety by the creditor has not the effect of discharging the principal, nor does it operate as a discharge of the co-surety. Therefore, where a promissory note was made by a principal and three sureties, and two of the sureties and the principal became bankrupt, and the holder of the note proved the amount under each commission, and afterwards received a composition of 45. in the pound from the third surety, — it was held, that this was not a discharge of the maker of this note, or of either of the two other(3) sure- ties. It is competent also for a creditor, executing a deed of composition with the principal, to reserve his remedy against the surety, by a stipulation to that effect in the deed of composition. (4j) And a creditor holding a bill of ex- change as a security from three partners, though he takes the notes of one of them as a collateral security, without the knowledge of the other partners, retaining the original security in his hands, does not by so doing discharge the other partners. (5) "Where a surety enters into a bond with the principal, conditioned for the performance of covenants in a lease, the surety is still liable, though the principal is discharged (1) Hockley v. Merry, 2 Str. (4) Ex parte Carslairs, Buck. 1045. 560, Ex parte Glejidining, ibid. (2) Lewis V. Jones, 4 B. & C. 517. 506. (5) Bedford v. Dealcin, 2 Star. (3) Ex parte Gjjfora', 6 Ves. 805. 178. Sect. 21.] OF THE PROOF OF DEBTS. 289 by bankruptcy and certificate from the covenants contained Sureties. ill it, under the 75th section of the new statute. (1) tiants It seems to be pretty well settled now, in courts of law surety still at least, that an agreement to pay, or be answerable for, the "^."'^.^'jf debt of another must, according to the construction of the discharge. 4th section of the statute of frauds (2), not only be in writing, but must also contain the consideration for the promise, as well as the promise itself. (3) Some doubts upon this point are reported to have been expressed by Lord Eldon, but they seem to be merely obiter dicta, and to have occurred moreover in cases where the consider- ation did, in fact, sufficiently appear in the agreement. (4) Notwithstanding, also, the attention of the Judges has been especially called to a consideration of these doubts in two subsequent cases, both the Courts of King's Bench and Common Pleas have confirmed the doctrine laid down in Wain V. Warlters. (5) 2. As to the Rights of the Solvent Surety against the Bank- rupt Debtor, or Co-surety. There have been many conflicting decisions respecting When the right of the surety to prove a counter-security against ^"'"^^ the principal debtor, where the surety had not himself been prove a actually obliged to pay the money before the bankruptcy <^oiinter- of the principal. At one time (as we have before seen in the case of a bill or note (6) ) it was holden, that if he had taken a counter-security, which was payable absolutely at a day certain, — then, though the principal had become bank- rupt before the counter-security was payable, and before the surety had either paid, or been called upon to pay his engagement to the creditor, the surety was permitted to {\)Inglis\.Macdougal, 1 Moore, 595. Jenkins v. Reynolds, 5 B. & 196. B. 14. (2) 29 Car. 2. c. 3. (4) Ex parte JMinet, 14 Ves. 190. (3) Wain v. Warlters, 5 East, 10. Ex parte Gardom, 1 5 Ves. 286. Saunders v. Wakefield, 4 B. & A. (5) 4 B. & A. 595. 3 B. &• B. 14. (6) Ante, 256. 290 OF THE PROOF OF DEBTS. [Chap. 9. Pico/by prove his counter-security immediately under the com- hut^ej^s^ mission ; upon the principle, that the counter-security was an absolute debt at law, for which there was a sufficient consideration created by the liability of the surety. (1) In subsequent cases it was holden, that the surety could not prove upon such counter-security, unless he had taken up his own bills, or had paid the original debt (if upon bond) — so that the bankrupt's estate, before it was charged with the claim of the surety, might at all events be exonerated from the original debt. (2) But where the counter-security was only conditional, such as a bond to indemnify the surety against his being called upon to pay the money, and there was no breach of the condition before the bankruptcy, it was there held, that the surety could not prove, — as the debt in that case was only contingent. (3) Though at the same time, where the indemnity bond was forfeited before the bankruptcy, the surety was then considered entitled to prove his bond, notwithstanding he had paid no part of the sum, for which he had become surety, until after the bankruptcy. (4) When he I" ^^ cases, however, where the surety had no counter- could not security from the principal, or nothing but a mere under- prove a taking of indemnity, it seems to have been the uniform decision of the Courts, that the surety then, though he had made himself absolutely liable for the debt, could not prove under the commission, unless he had actually paid the debt before the banh'uptcy of the principal ; and that any payment after the bankruptcy only gave him a per- sonal remedy against the bankrupt, and did not enable liim to prove. And the reason of this was, that there was (1) Rolfe V. Caslon, 2 H. B. 570. (2) In re Bowness, C. B.L. 161. Ex parte Misrj/rfwf//, cit. ibid. 571. Ex parte Findon, ibid. 149. Ex C. B. L. 157. Ex parte Beaufuy, parte Brown, ibid. Ex parte Wal- ibid. 158. Ex parte Clam-icarde, ^cr, 4 Ves. 385. ibid. Totissaint v. Martinnant, {3) Martin v. Court, 2 T.R. 640. 2 T. R. 1 00. Martin v. Co7ist, ibid. Crookshank v. Thomson, 2 Str. 1 1 60. 640. Hodgson V. BcH, 7 T.R. 97. (4) Ex parte Cockshott, 5 Bro. 502. Hodgson v. Bell, supra. Sect. 21.] OF THE rnoor or df.et,';. 291 no existing debt between the principal and tlie surety, Proof hi/ before the latter had paid the money to the creditor.(l) ' H These disabihties were, however, always considered to When be a great hardship upon the surety, when he was obliged ^"^ij' to pay the money after the bankruptcy of the principal ; stand in and, therefore (as has been already observed (2) ) the Courts ^'f^.i^g^Qri- lield, in cases when the creditor had already proved under ginal cre- the commission, that the surety had an equitable right to '"^^'■* stand in the place of the original creditor, and to receive dividends upon such proof (3) And if the creditor had not proved, the Court of Chancery would, upon a bill filed by the surety against the creditor, order the latter to prove the debt, upon the surety bringing the amount (4) of it into court. But if the surety had paid the debt after the bankruptcy of the principal, and before the creditor had proved, in that case it could be proved by neither creditor nor surety. (5) In order to avoid this circuitous mode of sureties ob- Surety taining relief, and to put them upon a fair and equitable "^^^ ^^ ^° footing with the other creditors of the bankrupt, it was (as has prove him- been before stated under the section relating to bills of ex- ^^^> change (6) ) first provided by the 49 G. 3. c. 121. s. 8. — and pays the this provision has been adopted, and somewhat extended in '"oney the new statute (7) — that any person, who at the issuing of commis^ the commission shall be surety or liable for any debt of the pion bankrupt, or bail for him either to the sheriff or to the '**"^** action, and who shall have paid the debt, or any part thereof in discharge of the whole debt, (although he may have paid the same after the commission issued) may, if the creditor (l) Smithson v. Johnson, Barnes, (2) Ante, 254. 115. Goddard v. Vanderheyden, (3) Ex parte Ryswicke, 2 P. oWils. 262. Bl. 794. Taylor v. Wms. 89. Ex parte Marshal, Mills, Cowp. 525. Paid V. Jones, lAtk.129. Ex parte Matthews, 1 T. R. 599. Kettear v. Paynes, 6 Ves. 285. Ex parte Atkinson, 1 Bro. 384. Chilton v. Whiffin, C. B.L. 210. sWils. 13. Youngv. Hoclcley,B\. (4) Beardmore v. Cnittenden, C 839. 3\Vils. 346. Vanderheyden B.L. 211. V. De Paiba, 3 Wils. 528. Hes- (5) Ibid. kuyson v. Woodbridge, Doug. 166. (6) Ante, 254. Ex parte Marshall, 1 Atk. 130. (?) Section 52 Brookes V. Rogers, 1 H. B. 640. Hojvis V. Wiggins, 4T. R. 714. u 2 292 OF THE PROOF OF DEBTS. [Cliap. 9. Proof hi) sureties. Bail have the same privilege. How far surety bound by proof of creditor, or com- pelled to prove. shall have proved his debt under the commission, stand in the place of the creditor as to the dividends, as well as to all other rights tinder the eommission iiohich the creditor pos- sessed, or xwidd he entitled to in respect of such proof [l); — or, if the creditor shall not have proved, then the surety, or person liable, or bail, may prove his demand in respect of such payment as a debt under the commission, (not dis- turbing the former dividends) and may receive dividends with the other creditors, although he may have become surety, bail, or liable as aforesaid, after an act of bank- ruptcy committed by the bankrupt ; provided that when he became so he had no notice of any act of bankruptcy. This section, it will be perceived, extends the right of proof to bail, who were held not to be included in the provisions of the 49 G. 3. c. 121.(2) With that exception, therefore, all the cases determined under the 8th section of that statute will be applicable to the construction of the corresponding section of the new act. From the wording of the above section, it would seem that the provision is intended more for the benefit of the surety, than that of the bankrupt ; as it enables the surety merely, and does not compel him, either to prove himself, or to stand in the place of the creditor who has proved, and receive the dividends upon his proof. And the case of Mead v. Braham (3) favours this construction, in which it was held, that the surety was not bound by the proof of the creditor. But where the surety receives dividends on the proof of the creditor, there he is estopped from proceeding afterwards against the bankrupt. Therefore, where a bill of exchange accepted by the bankrupt had been proved by an indorsee under the commission, who afterwards received the amount from the drawer, and the drawer then received a dividend upon the proof, and afterwards arrested the (1) The words in italics, are not in the 49 G. 3. (2) Hmves v. Mott, 6 Taunt. 329. 2 Marsh, 192. Neiuington v. Keys, 4B.& A. 495 (5) 2 M. & S. 91. ; and see ante, 152., and Toumsend v. Downing, 14 East, 565. Sect. 21.] OF THE PttOOF OF DEBTS. 293 bankrupt (who had not obtained his certificate) for the Proof by balance; — the Lord Chancellor, upon the petition of the '^ 1 bankrupt, ordered that he should be discharged out of custody at the suit of the drawer. (1) And, as the certifi- cate now releases the bankrupt from all claims and de- mands made proveable under the commission (2), it follows, that the above section is so far compulsory on the surety, that in all cases where he 7)u'ghi have proved against the bankrupt, the certificate will be a bar to any action brought afterwards by the surety. Having already fully considered the right of proof by sureties on bills and notes (3), as well as that of sureties for the payment of annuities (4), it will be sufficient on the present occasion to confine our attention to those cases, which involve the rights of sureties on other instniments. Where a surety joined in a bond to a banker for 10,000/., Surety by for payment within two months after notice of every sum of ?^, ^" ^" money, which the obligee should at any time pay or ad- obligee's vance on account of the principal, by payment of or discount- \l^ ^° ^ ing drafts, bills, &c. — and the principal conve^^ed an estate of balance to the surety as an indemnity, and afterwards became a unsatisfied bankrupt — upon which the obligee proved under the com- counter- mission a debt of 20,000/. due from the bankrupt upon the security. balance of the standing account ; — the surety in this case, upon payment of the 10,000/., was held entitled to the benefit of such proof, to the amount of the difference be- tween the 10,000/., and the value of the proceeds of the sale of the estate. (5) So, where a surety had entered Surety in into a bond to the king, for the payment by the bankrupt ^^eTinf^*^ of the duties received by him as distributor of stamps, and for stamp after the bankrupt had obtained his certificate, the surety ""ties.may 1 'J iirnvp. was obliged to pay a sum of money due to the crown ; — it (1) Ex parte Lobbon, 17 Ves. (") See ante, 255. et seq. 334. (4) Ante, 251. (2) Section 121.; and see Van- (5) ¥i\ ^axte Rushforth, 10 Ves. sandan v. Corsbie, 8 Taunt. 550. 409. 2 Moore, 602. 5B. &A. 13. West- cott V. Hodges, 5 B. & A. 12. U 3 prove. 294. OF THE PROOF OF DEBTS. [Chap. 9. Vroofhij surclics. Surety en- titled to the rights of the cre- ditor, in respect of trie cer- tificate, as well as of the di- vidends. Surety for rent not due at the bank- rwptcy, not within the above 6ection. was held, that the surety could not sue the bankrupt for the amount so paid, as he might have proved it under his commission. (1) In this case it was urged, that the statute did not contemplate the case of a surety in a bond to the king, but only to a common creditor, who might, or might not, prove under the commission ; whereas there was no instance of the crown proving under a commission : but the Court decided that, in order to bring the case within the statute, it was not necessary that the principal creditor should be enabled to prove, or that the bankrupt should be discharged by his certificate if he does not prove ; and that the case did not differ from that of a surety in a bond to a private person. (2) A surety, paying the debt after proof by the creditor, is not only entitled to stand in the place of the creditor in respect of the dividends on the proof, but also in respect of his right as to the bankrupt's certificate. (3) This de- cision, which was upon the construction of the 49 G. 3. c. 121. s. 8., is still more fortified by the additional words introduced into the above section of the new statute, which expressly declares, that the surety in such a case shall be entitled to stand in the place of the creditor as to the dividends, and all other rights under the commission, which the creditor possessed or would be entitled to in respect of such proof. It has been determined, that a surety for the payment of rent by a bankrupt to his landlord, where there is no rent due at the time of the bankruptcy, is not within the terms of the above section, which relates only to securities for debts of the bankrupt due at the time of issuing the commissiofi ,- and, therefore, where a surety in such a case was obliged to pay for three years' rent, which became due after the bankruptcy, it was held, that he might sue the bankrupt to recover it (4), notwithstanding his certificate. (1) Wcitcott A. 12. (2) Ibid. V. Hodges, 5 B. & (.3) Ex parte Gee, 1 G.& J.550. (4) ArBoiigalv. Fato}i, 'J Moore, 644. 8 Taunt. 584. Mr. Edeu, in SeCt.21.] OF THE PROOF, OF DEBTS. 295 The statute, also, only applies to cases wl^re the surety Proof by has paid the idiole debt, or part in discharge of the whole ; " ^''^^^^^^ and not where he merely pays part in discharge of his own Nor a personal liability. Therefore, where a surety in a warrant ?"'"^typay- . . . . ing only of attorney, in order to discharge himself, paid part of the part of debt remaining due to the creditor (who had previously ^^^ ^^'^^' proved under the commission), and thereupon satisfaction Avas entered upon the record, — it was held, that as this was not a payment of part of a debt in discharge of the "iSohole^ he could not stand in the place of the creditor who had pre- viously proved. (1) If a surety, also, should after the Cannot bankruptcy of the principal, besides the debt, pay the interest ifiterest accrued thereon subsequent to the bankruptcy, he ^'"'■e will not be permitted to prove such subsequent interest; mptcv. for all that is contemplated by the above enactment is, that the surety may prove as the principal creditor. (2) If a surety in a bond for a bankrupt, after the bankrupt Nor when obtains his certificate, joins with him in a new bond to the •^'^ "''^f "^sij representatives of the creditor, and the old bond is de- bond after his Treatise on the Bankrupt Law, whole future rent reserved in a page 151- suggests, whether a case lease to the bankrupt, and be per- like the above would not be varied mitted to prove the amount as a now, by the provision as to con- contingent debt, — it is apprehend- tingent debts, contained in the 5Qth ed, thiit a mere surety for the rent, section of the new statute. But it who might never be called upon is submitted, that unless the surety for a farthing, could still less have has entered into a bond, or other a value set upon his liability, and specialty, to the lessor for the pay- prove for the amount. And — if he ment of the rent, the mere liability cannot have a value set upon his to pay it (in respect of which a debt liability — he cannot prove, when may only by possibility be created) the contingency happens, and he is cannot be considered as a debt al- actually obliged to pay the rent ; ready contracted payable on a con- for the statute only enables the tingeney, so as to bring it within the party to prove after the contin- 56th section. Nor does the case, gency, " in respect of such debt," indeed — even if a bond were given previously mentioned in the see- by the surety — appear to come tion, — that is, such a debt as the within the meaning of tiiat section ; commissioners can set a value upon which enables the commissioners to before the contingency happens. set a value upon the debt, before the See also the following case. contingency happens, and to admit (l) Souttenv. Soutten, 5 B. & A. the creditor to prove for the amount. 852. For, unless the lessor (which would (2) Ex parte IVikon, 1 Rose, 137. seem a very preposterous case) Ex parte Houston, 2 G. & J. 36. could have a value set upon the VOL. I. * U 4 296 OF THE PROOF OF DEBTS. [Chap. 9. Proof by livered up to the surety, this is not equivalent to payment s ureties. ^^ j.}jg surety, so as to enable him to prove under the corn- bankrupt's mission ; for the transaction amounts to an entire release certificate, ^f [he old debt by the obligee, and the surety stands after- wards in quite a different character, being no longer surety for the bankrupt's estate, but for a new obligation created subsequent to the certificate. (1) Whether It was decided by the late Vice-Chancellor, that the the substi- substitution by one co-surety, without the knowled<>;e of the tution by / . . , i • i a co-surety other, of a different security, in the place of that on which ot a difler- ^^ were severally liable, does not oive such co-surety any ent instru- / . •' . ^ r i • i inent gives claim against the other, as havmg paid the debt, for which him a claim g^^|j ^^.^^ liable on the original instrument. Thus, where other CO- I^-> ^or the accommodation of C. & Co., drew on J. & Co. a surety. \y\\\^ which they accepted — J. & Co. drawing on R. another bill, which he accepted — and both bills were indorsed to C. & Co. ; and (J. & Co. before their acceptance fell due having become insolvent) the holders called upon R. as drawer for payment — who thereupon, for the accommoda- tion still of C. & Co., obtained an acceptance of T. in lieu of that given by J. & Co. — and R. proved the amount of such acceptance under a commission against J. & Co. ; — Sir J. Leach, under these circumstances, ordered the proof to be expunged, the dividends repaid, and the acceptance de- livered up ; as he considered, that the new security given by R. was one with which J. & Co. had no concern, and that their estate could not, therefore, be charged with the consequences of it. (2) But Lord Eldon, when this case came before him upon appeal, thought that the ques- tion was merely who were sureties, and who were princi- pals, in these counter-acceptances ; and that R. being the surety (as drawer) for J. & Co., as to those bills drawn by him and accepted by them, the question was to be decided by the general law between acceptors and drawers, when the drawers pay for the acceptors ; — and the Vice- Chancellor's order was reversed. (3) (l) Ex parte Scrsreant, 1 G. &J. (2) Expartc77?in/c?-,5Mad.l65. 1 85. 2 G. & J. 2.-. (3) Ex parte Hunter, 2 G. & J. 7. Sect. 22.] OF THE moor of debts. 297 Where partners dissolve their partnership — one partner Sureties. retiring, and the other continuing the business, and cove- » T^ nanting to pay all the debts, — if the latter becomes bank- partner in rupt, and the retiring partner is obliged to pay any of the ^ "^*'"'"*^ ,{_ 1 II °' ^ surety, debts, he can prove such payment under the commission ; as he is in the nature of a surety for the continuing part- ner. (1) Section XXII. Creditors hy Composition. Where a creditor agrees with his debtor to take a com- Where position in lieu of his debt, on condition that the money is creditor • J ^ . 1 ^ r r -^ • i not bouod paid on a certain day, and arter tailure m such payment, i^y compo- the debtor becomes a bankrupt, — the creditor is entitled in si^i^n ; that case to prove for the whole of his original debt, or for such part as remains unpaid — and not merely for the amount of the composition. For the general rule in equity is, that the Court will not dispense with the point of time in the com- position of debts, as they will where it would work a for- feiture ; and that where a creditor thus agrees to take less than his debt, so that it be paid precisely at the day, and the debtor fails in payment, the latter cannot (2) be released. Therefore, where a trader entered into a deed of com- and may position with his creditors, by which they agreed to take V^ove for 10^. in the pound on their respective debts by instalments, due of his to be secured by his promissory notes, and the creditors debt re- covenanted that they would, as soon as such promissory unpaid^ notes should be paid, release and discharge the trader — and the deed also contained a proviso, that in case of de- fault made in such payment, or if any commission should issue before the whole of the composition should be paid, then the covenants, on the part of the creditors whose (1) Wood V. Bodgson, 2 M. & {ti) Scwcll v. Masson, 1 Vern. S. 195.; and sec post, title "Part- 210. Eq. Ca. Ab. 28. s. 3. Hcath- ners." cole v Crookskanks, 2 T. R. 24. 29S OF THE rUOOF OV DEBTS. [Chap. 9. Composi- tion. Where he cannot prove for residue. debts should be so unsatisfied, should be null and void — the first instalment was paid, the second was due and unpaid, and a commission having issued against the trader, — Lord Eldon under these circumstances held, that the creditors were entitled to retain the first instal- ment, and to prove for the residue of their original debts. (1) So, where a trader assigned certain book-debts, in trust to pay the creditors who should execute the deed, and covenanted that if the creditors should not, out of that fund, be paid in full within two years, he would pay the defi- ciency within a month afterwards — and before the end of the two years the debtor became a bankrupt, — it was held, that the creditors under the deed were entitled to have the j-emaining debts of the trust fund sold, and the produce divided amongst the creditors under the trust deed, jpari -passu, having regard to what had been already received ; and that, after such application of the trust fund, the cre- ditors were entitled to prove for the deficiency under the commission. (2) But if a creditor under a composition has not received his instalments before the bankruptcy takes place, and tliere is no fund separated for the payment of them, he cannot have them out of the bankrupt's estate, and prove the residue of the debt ; but he must then come in as the other creditors (3) at the date of the bankruptcy. Where, however, there is an actual r-elease of the debt in the composition deed, and no default made before the bank- ruptcy in the payment of any of the instalments, then the creditor cannot prove for the residue of the original debt, but only for the remaining instalments. As, where a deed of com- position stipulated that if the instalments should not be duly and regularly paid, the release thereby given by the creditors should be void — and all the instalments, which had become due before the bankruptcy, were regularly paid ; — in this ( 1 ) Ex parte Verc, 1 Rose, 28 1 . 1 y Ves. 93. ('-!) Ex parte Ric/tardsuu, 14 Ves. 184. (.3) Ex parte JD'Olivicra. Ex parte Von Hulk; 14 Ves. 184. Sect. 23,] OF THE PROOF OF DEBTS. 299 case Lord Eldon held, that the creditor ought not to prove Compost- the residue of the debt, but only the outstanding instalments : ' ""' for that, as there had been no default before the bankruptcy, and the bankrupt had been released from his debts, no- thing whatever was then due to the creditor. ( 1 ) In a former case, however, where the bankrupt had paid the first in- stalment — and though the creditor had waived the default in the payment of the second, by accepting two notes of hand which were not due at the time of the bankruptcy, — Lord Hardwicke thought it would be a hard case, if the creditor was not admitted to prove the whole of the remainder of his original debt. (2) If a creditor, to induce another creditor to come to an Where a arrangement with his debtor by composition, or otherwise, u^*^*^^i , conceals his own debt, holding out that he is no creditor, — his own the party is bound by such misrepresentation, and, in case ™isrepre- 1 • • 1 ■■ rr. -11 1 1 1 1 <- . sentation. the composition take eiiect, will be precluded irom proving his own debt. (3) But when the proposed composition or arrangement does not take effect, then the party, however fraudulent his intention, will not be bound (4) by such misrepresentation. Section XXIIL Friendly Society Act. By the 33 Geo. 3. c. 54. s. 10. for the encouragement and relief of friendly societies, it is provided, that if any person appointed to any office by any such society, and being entrusted with, or having in his hands or possession, any monies or effects belonging to such society, or any securities relating to the same, shall die, or become a (1) Ex parte Peele, 1 Rose, 455. 1 Anst. 202. EastabrooJc v., Scott, (2) Ex parte Bennett, 2 Atk. 3Ves.456. Ho/mer v. Finer, lEsp. 527. 132. Ex parte Gardnej; llVes. (3) Monlefiori v. Montc/iurl, 24 4. 1 Bl. 563. Cecil V. Piaislou', (J) Ex parte C>a/f%, iRose, 138. 300 OF THE PROOF Or DEBTS. [Chap. 9. Friendlij society. OptM-ation of act con- fined to money due from ojjiccrs of the so- ciety, bi/ ■virtue of their office. bankrupt, or insolvent, his executors or administrators, or assignees, shall within forty days after demand made by the order of the society, deliver over all things belonging to such society, to such person as the society shall ap- point ; and shall pay out of the assets all sums remaining due, which such person received by virtue of his said officei before any of his debts are paid or satisfied. ,(r>aii - . In the first cases that were determined under this act, its provisions were construed to extend to all persons, who had the property of the society in their hands, although they were not officers of the society ( 1 ) ; but, upon a revi- sion of those cases, such a construction was found to be too large, and the statute was afterwards confined to cases where persons were duly and formally appointed officers of the society — and was therefore held not to extend to a person, to whom the money of the society has been paid as a banker, or to whom money has been lent by them upon security paying interest. (2) And even money lent to a treasurer duly appointed, upon his promissory note, has been held to be not within the operation of the act; for the preference is given by the statute, in respect of money which gets into the hands of the officers of the society, only by virtue of their office, and independently of con- tract. (3) But in a case where money was paid to trustees, as TUUSTEEs, and they gave separate notes for it, and volun- tarily agreed to pay interest, for the purpose of serving the society, — it was held, that here, the money being paid to them as trustees duly appointed, their agreeing to pay in- terest did not alter the case, so as to make the money in their hands to be considered only a loan to them in their private character ; and the claim under the statute was allowed. (4) (1) lC.B.L.255. (2) Ex parte Askimth, 1 C. B. L. '255. Ex parte Amicable Societr/ of Lancaster, 6 Ves. 98. Ex parte Ashley, \b\A. 441. Ex parte Cor- ser,i\iiA. Ex parte Ross, ibid. 804. (.3) Ex parte Stamford Friendly Society, 15 Ves. 280. Ex parte Buckland, Buck. 214. (4) Ex parte Friendly Society of Wickwar, Whitmarsh, 297. Sect. 24.] OF THE PROOF or DEBTS. 301 Section XXIV. Rates and Taxes. If the bankrupt's estate is in arrear for rates or taxes, Where the collector, or assessor, seems to be the proper person to f^llt^'tor, or tisscssor prove the debt; and he ought at the time of proof to pro- may prove! duce his appointment, that the commissioners may judge of the legality of it. (1) But, if the collector himself should become bankrupt. Where havinor received the taxes from the inhabitants, but not ^^'\'^^*^°'' 1--1I pj-11'- bankrupt, havmg paid the money over, one of the mhabitants m that then one case may be admitted to prove for himself and the rest (2); P^/^!"^ '"" and the form of his deposition should be, that neither he, nor the rest of the parishioners to his knowledge or belief, have received any security or satisfaction. It makes no difference, with respect to the right to prove against such collector, that the usual time of accounting has not arrived — as in the case of an overseer, who becomes bankrupt be- fore the expiration of his year of office, before which he cannot strictly by law be compelled to account ; — for the money in his hands is a dehitum in pnesenti, though he may only be accountable for it in futuro. (3) Where the bankrupt had been appointed a joint collector with another person, such person (though his co-collector) was per- mitted to prove for the sum due on the part of the parish. (4) ( 1) lAoyd V. Heathcote, 2 B. & B. 508. contra, Rex v. Egginton, 1 T. 388. 1 C. B. L. 127. 1 Mont. Dig. R. 369. 143. (4) Ex parte Muggcridge, 1 C. (2) Ex parte Child, 1 Atk. 111. B. L. 128. Ex parte Exlei^h, 6 Ves, (3) Rex V. Tticker, 5 M. & S. 811. 302 or THE PEOOr OF DEBTS. [Chap. 9. Section XXV. Illegal and void Debts. What debts not illegal. Debts tainted withwiwry. No debt, which is either illegal in its nature — as a bond given for the jn'emhttn pudoris ; or which is made void by statute — as a debt upon an usurious contract, — can be proved under a commission. Where a bond, however, was given by a bankrupt for the payment of a sum of money, in consideration that the obligee would marry a servant of the bankrupt, and main- tain a bastard which the bankrupt had by her, and the marriage took effect, — this was held to be a good con- sideration, and the obligee entitled to prove the bond. (1) So, where promissory notes were given for liquidated damages in compromising an action for the seduction of the plaintiff's daughter, pej- quod servitium amisit, the notes were permitted to be proved under a commission against the maker. (2) Where a contract is originally usurious^ it is (with only one exception) void ah initio^ and cannot be proved by any person claiming benefit under it, notwithstanding he may be neither party, nor privy, to the usury. (3) The ex- ception alluded to is one created by a recent statute (4), by which it is declared, that no bill or note, though given for an usurious consideration, shall be void in the hands of an indorsee for valuable consideration, without notice of the usury. The rule of the Court of Chancery is, when a bill is filed to be relieved against a demand of usurious interest, not to make void the whole debt, but merely the excess of interest, and to compel the party to pay what is really due ; but under a commission of Bankruptcy, the (1) Ex parte Cottrell, 2 Camp. 742. (2) Ex parte Miimford, 1 5 Ves. 289. (.3) Lowe V. Waller, Doug. 736. (4) 58 G. 3. C. 93. Sect. 2.1] OF THE PROOF OF DEBTS. 303 assignees have a right to insist, that the whole is void upon Illegal the ground of usury. And, unless the assignees and cre- ditors submit to the proof of what is really due, the Lord Chancellor has not power to order it. (1) Where a cre- ditor also, who had taken out execution, delivered up the proceeds to the assignees, under an express agreement that he should come in with the other creditors for the balance due to him, — it was held, that such agreement meant a proveable balance, and did not let in the debt, if affected by usury. (2) In some cases, however, where by the custom of trade a Where small per centage more than the legal interest is taken, in J^■ tirade T the nature of commission.^ on the discounting of bills, and as reasonable a reasonable compensation bond fide for extra trouble, — comnm- 1^ ^ "^ ' sion taken, such a transaction is not considered to be usurious (3) ; not usury, and 10s. per cent, has been held to be not unreasonable in this respect. But commission cannot be added to the amount of legal interest, for the purpose of inducing a loan of money to be made, and of recompensing it afterwards when made; for it must be always considered as an excess beyond legal interest, unless it can be ascribable to trouble and expense bond Jide incurred ; therefore, where there is no such trouble or expense, the remuneration cannot legally be claimed. The cases, where such commission can be claimed, are chiefly confined to the dealings of bankers, brokers, and other agents ; for any charge above the legal interest by a general trader, and on one single transaction, or by persons who cannot be considered in a mercantile character, would be held a mere shift or cloak for usury. (4-) (l) Ex parte Thompson, 1 Atk. 2T. R. 52. n. Carstairs v. Stein, 125. Ex parte Skip, 2Ves.489. 4M.&S. 192. Banjleld v. Solomons, 9 Ves. 84. (4) Kent v. Loiven, 1 Camp. 178. (.2) Ex parte Banglay, 1 Rose, Auriol v. Mills, 2T. R. 52. Ha- 168. mersley v. Yea, 1 B. & P. 151. (5) Ex parte Jones, 17 Ves. 332. Mastennan v. Coiuic, 5 Camp. 488. 1 Rose, 29. Ex parte Henson, Bayiiesv. Fry,\5Ves.\20. Marsh 1 Mad. 112. Winch, q. t. v. Fenn, v. Martindale, 3 B. & P. 1 54. 304 Illegal debts. Where money not all ad- vanced on the day from which in- terest to be paid, usurious. How Bank- ruptcy differs from other proceed- ings, in charging usury. OF THE PROOF OF DEBTS. [Cliap. 9. Debt from sale of goods to be illegally exported, not prove- able. Where a warrant of attorney was given to secure the repayment of 600/., with interest from a certain day, and the whole of the money was not actually advanced on that day, — it was held, that the transaction was usurious. (1) But an agreement that money borrowed should be repaid to the lender, or left in his hands as a banker, to be drawn out as the borrower wanted it, — then, though the money not being ready at the time when it is applied for by the borrower, would be a breach of the contract, — yet it would not amount to usury. (2) In making out a charge of usury to defeat a debt /« BanJcniptcy, it seems that, by the practice of the Court, there is a much greater latitude allowed to the party making such charge, than what is permitted in courts either of law, or equity. For, at law, the charge must be supported by strict rules of evidence ; and, in equity, the debtor must either prove the usury by legal evidence, or have the confession of the party — and, moreover, cannot apply for relief, without offering to pay what is really due. But in Bankruptcy, it is sufficient to suggest usury in a petition supported by affidavits, merely upon information and belief, by which the party charged is in fact compelled to prove against himself; and this proceeding, also, is not for the purpose of giving him his real debt, but with the ob- ject of cutting him off from all relief. (3) This practice, which has been more than once forcibly commented upon by Lord Eldon, and which is certainly unreasonable in principle, and frequently oppressive in its effects, does not, however, appear yet to have received any alteration. A debt arising from the sale of goods, bought for the purpose of being sent to India, contrary to the prohibition of an act of parliament, cannot be proved, if the party at the time of the sale knew of their illegal destination. (4) (1) Ex parte Banglay, 1 Rose, 168. (2) Per Lord Eldon, ibid. (3) Ex parte Scrivetier, 3 V. & B. 14. (4) Ex parte Moggridge, 1 C B. L. 187. ; and see ex parte Daniel, l4Ves. 191. Sect. 25.] OF THE PROOF OF DEBTS. 305 So, money advanced, for the furtherance and in execution Illegal of any illegal contract, cannot be proved ; — as, where one ^ member of a firm was connected with the bankrupt in an insurance partnership (which until lately was illegal (1)), and advanced the money of the firm to the bankrupt on dif- ferent policies of insurance, and the partner so advancing the money died, — it was held, that the surviving partner of the firm could not prove the amount of such advances under the commission. (2) If the consideration, for which a security is given, be If part of good in part, and bad in part, — though the security is void ^P"*'^^''^" at law, yet in equity, and in proceedings in bankruptcy, it and part shall stand as to what is good. As, where a broker was -' ^ ^^' . curity may employed to effect two insurances — one of which was be proved illegal — and the principal, in consideration of the money ~ 1-1 iiii-rt>- ■ 1 amount or laid out by the broker in effecting them, indorsed a bill to what is him, which was accepted by a third person, who became a S^^d. bankrupt; — the Lord Chancellor, though he refused to allow the broker to prove against the estate of the ac- ceptor such part of the debt, as arose upon the illegal in- surance, held nevertheless that he might prove for the residue. (3) And, where promissory notes were given by a stock-broker for the balance of an account of money advanced to him, to be employed in bargains for stock contrary to the statute of the 7 Geo. 2. c. 8. — and the broker became bankrupt, — upon a petition by the payee to prove the notes under the commission. Lord Erskine allowed proof to be made for sums admitted by the bankrupt to have been received and applied to his own use — but for no part of the amount, that appeared to be made up of the profits arising from the stock-jobbing transactions. (4) It is, however, purely a legal question, whether trans- Whether actions of this nature are, or are not, an infringement of ^" ^?^ °' ° parliament (1) See 5G. 4. c. 114., by which (4) Ex parte Buhner, 13 Ves. such partnerships are now made o\o.; awA see Grey \. Fowler, lH. legal. B. 462. Petrie v. Hanvxiy, 5 T. (2) Exparte JSe//, 1M.&S.751. R.418. (3) Ex parte Mather, 3 Yes. 57 3. X 306 OF THE PROOF OF DEBTS. [Ch. 9. Illegal the act of parliament; and upon a petition to expunge the debts. proof of a debt, wliich was composed of various sums of isinfring- money paid by a broker for a bankrupt, in settling differ- ^^' ^l'"^ r ences upon bargains of this description, Lord Eldon said, question of . , , • r i j • • c . r law. It ought to be put m a course tor the decision oi a court or law. (1) Where a A broker of the city of London, though he gives a bond broker ^|^^|. j^^ ^yjj| j^^j. ^-j^^^j ^j^ j-jjg ^^j^ account, may nevertheless dealing on _ _ . his own prove a debt arising out of transactions as a merchant, not- account, withstanding such dealings are in contravention of the rules renders y ^ . the debt and stipulations, under which he derives his office; for such illegal, I'ules are not founded on any prohibition of general law, but are only a matter of mere municipal regulation. If, however, the debt arises out of one transaction, in which he acted both as broker and principal, it is then void upon principles of common law. (2) Contract A debt, arising out of a contract to convey British goods to a to convey ji^arket in an enemy's country, cannot be proved under a com- an enemy's Juissiou, notwithstanding peace has even been subsequently country, established between that country and Great Britain. (3) °' ' Though, if the contract had taken place before the war, it would then revive upon the restoration of peace between the two countries, — the claim of the creditor being, in this case, only suspended by the war. (4) But, in the case of an INSURANCE of foreign property, followed by a war with the country of the assured, a loss incurred by the hostile act of this country cannot (as we have already seen (5) ) be recovered upon the return of peace. Inade- Inadequacy of consideration is also an objection, which quate cbn- j^j^y be made to the proof of a debt under a commission, — as in the case (which has been before put) in treating of the Voluntary p^-Qof of annuities. (6) But a voluntary bond may be (1) Ex parte Daniels, 14Ves. 71.; post 308, but see 2 Christ. 191. B. L. 287. (2) ExparteZh/s<<7r, 2Rose,245. (5) Ante, 264. (3)Ex parte &/iW«/i?ig, Buck.93. (6) Ante, 2,'>0. Ex parte Cafor, f 4'^ Ex narte Boiissmaker. 13 Ves. 1 Bro, 287. (4) Ex parte Boiissmaker, 13 Ves. 1 Bro, 287. Sect. 26.] OF THE PROOF OF DEBTS. 307 proved, so that payment of it be postponed until all the other debts are satisfied ; after which it may be paid out of the surplus, (l) And a bond, given for the arrears of a voluntary bond, is deemed a bond for valuable consideration ; and may be, therefore, proved without this restriction. (2) may claim. Section XXVI. Of claiming a Debt. If a creditor cannot ascertain his debt with certainty, Where a sufficient to enable him to swear to the amount — or where ^'■^'"'^p'". it appears to the commissioners that there is a probable foundation of a demand, though not satisfactorily sub- stantiated — it is usual to suffer a claim of the creditor to be entered on the proceedings. (3) The benefit of this proceeding is, that when a dividend is declared, he has one also reserved upon his claim ; and as soon as his debt is ascertained and proved, he is then entitled to receive the dividend, without being obliged to apply to the Lord Chan- cellor for that purpose. (4) The claiming a debt is often necessary, where there have been extensive dealings between the creditor and the bankrupt as merchants, and no balance has been struck upon the account current between them at the time of the bankruptcy (5) ; or where the agent of a creditor, applying to prove on his behalf, cannot at the time produce his authority. It is, also, expressly provided for by the new statute (6), in the case of an obligee in any bottomry, or re~ spondentia, bond ; and also in that of the assured under a policy of insurance, before the loss or contingency shall have happened. (1) Gardner's Assignees v. Skin- (5) Ex parte Simpson, 1 Atk. 70. ; ner, 2 Sch. & Lef. 228. and see .5 Wils. 271. (2) Gil/ham V. Loc/c, 9 Yes. 612. (6) Section 53.; and see ante, (o) 1 C.B.L. 255. 264. (4) Cull. B.L. 160. X 2 308 OF THE PROOF OF DEBTS. [Ch. 9. Of claims. When claim may be struck out. Where an alien ene- my may claim. How claim operates, as notice of dissent from an illegal con- tract. If the claim, however, is not substantiated in a reason- able time, the commissioners may strike it out ; and they generally do so before a dividend is declared, unless sufficient reason is offered to them for its remaining longer on the proceedings ; but the creditor is, notwithstanding its erasure, at liberty to prove his debt afterwards, and to receive his share upon any future dividends. And when there have not been gross laches on the part of the cre- ditor, the Lord Chancellor will generally make an order, that the creditor shall be paid his proportion of the former dividend out of what money may be in the hands of the assignees, — so, however, as not to break in upon the rights of the rest of the creditors as to such former dividend. Where a debt was due to an alien enemy from the bank- rupt, upon a contract before the isoar took place. Lord Erskine ordered a claim to be entered, and the dividend reserved, — holding it contrary to justice to confiscate the dividend in such a case ; for that as the contract was originally good, the right to recover it was only sus- pended by the war, and would revive upon the restoration of peace. (1) A claim to prove a premium on an illegal insurance, or wager, made with a bankrupt, has been held to be a sufficient notice on the part of the claimant, that his intention is to rescind the contract. Therefore, wherg after such a claim was made, the commission was super- seded, — the party was held entitled to recover back the premium, in an action for money had and received against the bankrupt — on the principle, that a person declaring his dissent from an illegal wager, before the event happens, may recover back the money he has paid. (2) (1) Ex parte Boussmaker, ISVes. (2) Busk v. Walsh, 4 Taunt. 290. 71. Sect. 27.] OF THE PROOF OF DEBTS. 309 Section XXVII. Of expunging and reducing a Proof. Before the new statute, the commissioners, after once ad- mitting a proof, could not expunge it without an order of the Lord Chancellor. (1) But now, by the 60th section The com- it is provided, that whenever it shall appear to the assignees, ™'^^*°"^''^ tr ^ r r » ' may now or to two or more creditors, (who have each proved debts expunge, to the amount of 20Z. or upwards) that any debt proved is "'" ^^""'^^' not justly due, either ni whole or m part, — such assignees or creditors may make representation thereof to the com- missioners, who may thereupon summon before them and examine upon oath any person who shall have so proved, together with any other person, whose evidence may appear to the commissioners to be material, either in support of, or in opposition to, any such debt. And if the com- missioners, upon the evidence given on both sides — or upon the evidence adduced by such assignees or creditors alone (if the person who shall have so proved shall not at- tend to be examined, having been first duly summoned, or notice having been left at his last place of abode) — shall be of opinion, that such debt is not due, either wholly or in part, the commissioners are then empowered to expunge the same, either wholly or in part, from the face of the pro- ceedings. The assignees or creditors, however, who require suth investigation, must, before it is instituted, sign an undertaking (to be filed with the proceedings) to pay such costs, as the commissioners shall adjudge to the creditor who has proved such debt ; which may be recovered after- wards upon petition to the Lord Chancellor. But this new power given to the commissioners, it is declared by the same section, is not to prevent the assignees or creditors from applying in the first instance, if they choose, by petition to the Lord Chancellor ; nor is either (l) Ex parte Nixon, Mont. B, L. App.34. Ex parte Graham^ iRose, 4.56. X 3 310 OF THE PROOF OF DEBTS. [Ch. 9. Expung- party, in fact, restricted from petitioning against the deter- % ng proof . j^jpaj-JQjj of t[,g commissioners. When If the creditor has received a dividend upon the proof, creditor ^y}^i(.j^ jg ordered to be expunged, or reduced, he will upon refund di- petition to the Chancellor be ordered to refund such divi- vidend. clend, either in all, or in part, as the case may be. (1) When a With respect to those cases where a proof will be proof may ordered to be expunged, or reduced, — it may be sufficient punged. to observe, that where the circumstances are such as would prevent a creditor from proving (if he had not proved already), they wiil equally authorize the expunging, or re- duction, of the proof. As, where a creditor proves a debt, excepting certain bills of exchange which he holds as a security, — if any of such bills are afterwards duly honoured, or in any wayfidli/ satisfied, the amount must be deducted from the proof, and the dividends made only upon the residue of the debt. (2) Where a creditor took out a commission, and then relin- quished it upon obtaining security for his debt, and under a second conmnssion which was afterwards issued, proved the debt, and was also chosen an assignee, — his proof in this case was ordered to be expunged (3), and a new choice of assignees directed. And where a creditor had prevailed on the bankrupt to give him a bond for more than was due, and had proved it under the commission, — this proof was likewise ordered to be expunged. (4) Where If the indorsee of a bill of exchange, who proves it discharges ""^^e^' ^ commission against the indorser, afterwards re- acceptor ceives a composition from the acceptor in discharge of the wit lout ^.jj^ without the consent of the assignees — as the indorsee assignees by SO doing discharges the indorser — the assignees have of in- (1) Ex parte Smith, 1 C. B. L. Crosdey,\\nd. Ex parte Barratt, 124. Ex parte Browne, UVes. iG & J. 527. 472. Ex \mxtc Burn, 2 Rose, 55. (5) Ex parte Paxton, 15 Ves. Ex parte Hunter, 5 Mad. 165. 461. (2) Ibid. Ex parte ^/o.c/ia»i, ibid. (4) Ex parte Brown, 15 Ves. Ex parte Wallace, ibid. Ex parte 472. Sect. 27.] OF THE PROOF OF DEBTS. 311 also, in such a case, a right to insist that the proof of the Expung- debt shall be expunged. (1) This is upon the ground, " '° ^' "^ ' that a discharge of the principal debtor, without the con- sent of the surety, discharges the surety. But the discharge of a surety by the creditor has not, as Where a we have seen (2), the effect of discharging the principal; ^^[^^y v. ^5 _ » o t t ' only dis- nor does it operate as a discharge of the co-surety. There- charged, fore, where a promissory note made by a principal and three sureties was proved by the holder, under different commissions against two of the sureties and the principal — and the holder afterwards received a composition of 4s. in the pound from the third surety, — it was held, under these circumstances, that the proof against the estate of one of the other sureties should not be expunged. (3) Where the creditor, whose debt is sought to be expunged. Service of is abroad, or lives remote, an order will be made (on expunce motion) that service of the petition on his attorney (4-), or where cre- on the agent to whom the affidavit of debt was sent, shall abroad be deemed good service. (5) (!■) Ex parte Smith, 3 Brown, 1. (5) Ex parte Gifford, 6 Ves. 805. 1 C.B. L. 155 (4) Ex parte Palon, 5 Mad. 116. (2) Ante, 288. (5) Ex paite jDu?ilop, ibid. 279. X 4 313 CHAP. X. OF THE ASSIGNEES. 1. Of a Provisional Assignee. 2. Of the Choice of Assignees. 3. Of the Interest they take hy the Assignment. 4. Of the Nature of their Trust ; and herein 1 . Of their general Authority, Duty, and Liability. 2. Of their Duty, more especially, in collecting and disposing of the Ba?ikrupt^s Property. 5. When Assignees become Bankrupt. 6. Of the removal of Assignees, Section I. Of a Provisional Assignee, Jjy section 45 of the new statute, the commissioners may^ if they think fit, immediately upon declaring the party bankrupt, and before any meeting for the choice of assignees, appoint one or more person or persons to be a provisional assignee or assignees, either of the whole, or of any part, of the bankrupt's real and personal estate. The provisional assignee is removeable at the meeting of the creditors for the choice of the regular assignees — and must then, under the penalty of 200/., deliver up and assign all the estate of the bankrupt in his possession to the assignees so chosen by the creditors — who will thereupon become as effectually and legally entitled to it, as if the first assignment had been made to them by the commissioners. Object of This power is given to the commissioners, merely for the the ap- better securing of the bankrupt's property, and is not often Sect. 2.] OF THE ASSIGNEES. 313 exercised ; for, in ordinary cases, it creates expense without Provisional answering any good end. But where the bankrupt is '^ ^"S^^^- indebted to the Crown, and an extent is apprehended to issue against his property, a provisional assignment is then of essential benefit; for an extent binds the property of tlie bankrupt, if issued before an actual assignment (1) made by the commissioners. If, however, there is no Costs, necessity of this kind for a provisional assignment, the ex- pense of it will not be allowed on the taxation of the peti- tioning creditor's bill of costs. (2) When a provisional assignment is made, the bankrupt's Copyholds copyhold property (3) (if he has any) should be excepted should be out of it, with a view of saving the expense of two fines to the loi'd upon surrender and admittance. For an extent does not affect copyhold property ; and, therefore, the creditors will run no risk in this respect with regard to the claims of the Crown. (4) Section II. Of the Choice of Assignees. By the 61 5^ section of the new act, the assignees are Must be directed to be chosen (5) at the second of the three public chosen at , „ , . , . , , . , . .the second meetmgs, (or which notice has been previously given \n meetin'^ the Gazette in the manner stated in a former chapter (6) ) (1) Queen v. Arnold, 7Vin. 104. one, contained any directions token Rex V. Cotton, 2 Ves. 289. Eex v. they were to be chosen, though Mann, 2 Str. 749. the usual practice was to elect (2) Ex parte M'WUliams, 1 Mad. them at the second meeting. For 141. the progress of the law upon this (3) See Section 64. subject, see 1 Christ. 255. 277. (4) Drurj/ V. Mann, 1 Atk. 95. (6) Ante, 141.; and see Section (5) The '5 Ann. c. 22. s. 4. was 25. The meeting of creditors for the first act, that introduced the the choice of assignees (as well, provision respecting the choice of indeed, as all the other public the assignees by the creditors; meetings appointed by the com- but no statute before the present missioners, where the commission 314 OP THE ASSIGNEES. [Ch. ICF. Choice. by what creditors. Commis- sioners have power to reject. Three commis- sioners must be present. Election must not be post- poned without substantial reason. or at some adjournment of such meeting. And all cre- ditors who have proved debts under the commission to the amount of 10/. and upwards, are entitled to vote in such choice, as well as any 'person duly authorized hy letter of attorney [1] from any such creditor; the execution of which must be proved, either by affidavit sworn before a Master in Chancery, or by oath before the commissioners viva voce ; — and in case the creditor resides out of England, by oath before a magistrate where the party shall be residing, duly attested by a notary public, British minister, or consul. The choice is to be made by the major part in value of the creditors so entitled to vote. But the commissioners have power to reject any person so chosen, who shall appear to them unfit to be such assignee ; and, upon such rejection, a new choice of another assignee must be made in his room. (2) Three commissioners should be jiresent when the choice takes place ; otherwise the election becomes invalid, and will, be set aside, notwithstanding the assignment is after the election duly executed by three commissioners. (3) The choice of assignees is not to be postponed, because certain creditors, whose accounts are in an unravelled state, are not prepared to establish their proofs ; for the pro- ceedings under the commission must not on this ground is executed in London) is now held at the Court of Commissioners of Bankrupts, lately erected in Ba- singhali Street, in the city of Lon- don, and established under the 1 &2G. 4. c. 115. (1) The right to vote under a power of attorney, was by the former law confined to creditors living remote from the place of meeting, and was not even ex- tended to the case of a creditor prevented by illness from attend- ing. (Ex parte Garland, 2 Rose, 351.) One partner, it has been decided, may execute such a power of attorney for himself and his co- partners. Per Lord Eldon, ex parte Hodgkinson, 2 Rose, 174. (2) This power of rejection was before the new statute vested only in the Lord Chancellor. (Ex parte Shaw, 1 G. & J. 127.) The com- missioners, however, had power to adjourn the choice of assignees from the day publicly appointed for that purpose, although all the creditors present concurred in the election. Ex parte Garland, 2 Rose, 561. (.3) Ex parte Moore, 1 G. & J. 190. Sect. 2.] OF THE ASSIGNEES. 315 be impeded ; and, in general, the choice of assignees ought Choice. to proceed, however few the creditors may be who have made immediate proof. (1) The commissioners also ought not to adjourn the meeting for the purpose merely of investi- gating a claim, which is not sufficient to turn the choice ; and where they did so upon one occasion of this kind, the}' were ordered, on petition, to execute the assignment forthwith to the persons who had been elected assignees ; for the choice of the creditors must be rendered effective by the immediate execution of the assignment, the better to enable the persons chosen to act for the benefit of the estate. (2) The choice, indeed, should never be postponed without a good and sufficient reason, — but should be pro- ceeded with to the best of the judgment of the commis- sioners, unless a petition against it has been previously presented. (3) If the commissioners, however, are satisfied When to that a petition for superseding the commission will be pre- . ^ '"^'"j sented, with the co7ise?it of all the creditors who have proved under the debts, they are, in that case, directed by a general order (4) S^"^""'^! to adjourn the choice to some future day, in order to give the opportunity for presenting such petition. The qualifications required to be elected an assignee are Qualifica- merely, the integrity of the party, and his sufficient ability *'°rj °' to be responsible for the sums he may receive from the bankrupt's estate. It is not necessary^ that he should be a creditor oi the bankrupt (5), though it is usual to elect a creditor to the office. And, although a creditor, who is a party to a deed of assignment of the bankrupt's effects previous to the commission, is prevented from being peti- tioning creditor, and setting up that deed as an act of bankruptcy, he is nevertheless eligible as an assignee, under a commission sued out upon it by another person. (6) (1) Ex parte Butterfll, 1 Rose, (4) 21st August 1818. Buck. 281. 196. (5) Ex parte Greqiiier, 1 Atk. 90. (2) Ex parte Woolley, 1 G. & J. In re Litchfield, ibid. 86. 366. (6) JacJcson V. Irving, 2 Camp. (3) Ex parte Barclay, 1 G. & J. 48. 280. 316 OF THE ASSIGNEES. [Ch. 10. Choice, As to cre- ditor elect- ing him- self as- signee. Bankrupt cannot be assignee of his own estate. When creditors tn ay prove, in order to vote. One creditor, if his debt be sufficiently large, may elect himself assignee of the bankrupt's estate, within the mean- ing of the statute, which directs that the choice shall be made by the major part in value of the creditors. And the proof of such a creditor is not to be rejected, because he has interests or claims inimical to the general creditors, and may, by virtue of such proof, elect himself to be as- signee. But if a person of the latter description do elect himself — as the Lord Chancellor would, upon an immediate application, remove him — (1) the commissioners may now also, under such circumstances, equally reject him. In some cases of this kind, where a length of time has been suffered to elapse before the application for the removal — or where transactions of importance have taken place under the commission, which may be affected by removing such an assignee, — the Lord Chancellor has appointed another per- son to be a co-assignee, or as agent, or inspector, solely for the purpose of investigating and contesting the claims of the assignee so self-elected. (2) In one case, indeed, be- fore Lord Hardwicke, where an assignee died, leaving the bankrupt his sole representative, who thereupon chose himself (the debt being sufficiently large) to be assignee of his own estate, — it was held, that such choice was valid. (3) But in a late case, where the majority of the creditors chose the bankrupt to be assignee, Lord Eldon held, that whether a bankrupt was certificated, or not, there was too much inconvenience in it, to permit him to be assignee of his own estate. (1) If a creditor will make oath of a certain sum being due to him — as his account may be afterwards fully investigated — he ought to be permitted to prove to that amount, for the purpose of choosing assignees, unless there appear to the commissioners to be any reasonable objection to the fairness (1) Ex parte Martell, 1 Rose, Ex parte Miles, 2 Rose, 68. 5V. 528. & B. 139. (2) Ibid. Ex parte De Tastet, (s) Cooperh case. Green, 260. ibid. 524. 1 Ves. & B. 280.; and (4) Ex parte JacJcson, 2 Rose, see ex parte JBazarro, 1 Rose, 266. 221 . Sect. 2.] OF THE ASSIGNEES. 317 of the debt, — in which case they should only suffer him to Choice. claim, till he makes out his demand to their satisfaction. (1) And a creditor, holding a security for part of his debt, may, if he is desirous of voting in the choice of assignees, petition to have a value put upon the security, and prove for the difference before the security is sold. (2) But an application of this nature will depend upon its special cir- cumstances, — of which the general benefit of the creditors, and the amount of the applicant's debt, are two of the most material. (3) A Corporation vote in the choice of assignees, by a spe- Corpor- cial power of attorney under their common seal. (4) ation. A Beceiver appointed by the Court of Chancery to prove a receiver and receive dividends does not, in consequence of that ap- ^?^, "o , r ... , . „ right to pomtment, possess the power oi votmg m the choice or vote. assignees (5); for the order admitting him to prove is not declaratory of an anterior right, but originates his title ; and if the order does not pronounce that he had an ante- cedent right to prove, he cannot have any right to vote. (6) The choice of assignees is subject to the most unqualified Grounds control of the Lord Chancellor (7), and he will always o*'applica- , • , 1 1 1 • i tion tor dn-ect a new choice, when they have been improperly anew elected. But it is not a sufficient ground to apply for a choice, new choice, merely because creditors were abroad, or were prevented by accident from voting, or have given a de- fective power of attorney to another person to vote. (8) For if that practice were to prevail, the choice might be postponed to a great length of time, which would be incon- sistent with the general provisions of the Bankrupt laws. (9) But if creditors are kept back by fraud, then the Court will attend to such an application. (10) Nor is it a suf- (1) Ex parte Simpson, 1 Atk. 70. (5) Ex parte Shaw, 1 G.&J. 151. (2) Ex parte iV?,,., P . . 1 bankrupt, beneiit, (except the right oi nommation to any vacant eccle- may be siastical benefice) may be executed by the assignees for the executed benefit of the creditors, in the same manner as the bank- nees. rupt might have executed them. The authority of the assignees is limited to the purposes Authority of their trust, namely, the distribution of the estate under limited to 1 • • rr.| 1 1 r piU-pOSeS the commission. 1 hey have no power, thereiore, to enter of trust, into an agreement to dispose of the surplus of the bankrupt's effects, after paying 10^. in the pound to the creditors. (3) By section 88. the assignees (with the consent of the As to major part in value of creditors who have proved debts P°^^^ under the commission, present at any meeting, whereof pound, and of the purport whereof twenty-one days' notice shall y ^^ have been given in the Gazette) may compound with any arbitra- debtor to the bankrupt's estate, and take any reasonable *'°"J part of the debt in discharge of the whole — or may give time or take security for the payment of such debt — or may submit any dispute concerning the bankrupt's estate to the determination of arbitrators, to be chosen by the assignees (1) In the matter o{ Bryant, (2) Ex parte JacA-5, 1 Rose, 395, 2 Rose, 1 7. (5) Ex parte Barfit, 12 Ves. 1 5. Y 2 324 OF THE ASSIGNEES. CCh. 10. Authority. and to commence suits in equity. Calling meetings. As to re- ferring to arbitra- tion. Operation of release by one as- signee. Whether a receipt of one as- signee binds the other. and the major part in value of the creflitors, and by the party with whom they shall have such dispute. The award of the arbitrators in such case is declai-ed to be binding upon all the creditors, and the assignees will be indemnified for what they shall do according to such directions. No suit in equity can be commenced by the assignees, without such consent of the creditors as above mentioned. (1) But if one-third in Afalue or upwards of such creditors shall not attend such meeting, the assignees have power then, with the consent of the commissioners in writing, to do any of the matters aforesaid. The assignees, however, may call any other meeting, upon any extraordinary occasion that concerns the cre- ditors ; and when they do so, they will act rightly in adver- tising such meeting, pursuant to the directions of the above section. (2) In referring disputes to arbitration, the assignees (for their own security) should be careful to protest against the reference being taken, as an admission of assets ; — for if they refer generally, without a protest of this kind, it will amount to such an admission — and will, consequently, ren- der them personally liable to pay the sum awarded, in case of a deficiency of the bankrupt's assets ; for there is no distinction, in this respect, between assignees, and executors or administrators. (3) One assignee cannot, by giving the other assignees a general authority to act for him, enable them to execute a release by deed, for which purpose there must be a special authority under seal: but a release, executed by one as- signee in \he jjre&ence of the other, binds both, (■i) The receiyt, however, of one only of several assignees, Lord Hardwicke held, was not an absolute discharge to the debtor, — making a distinction in this case between as- signees and executors; for, he said, though a payment to one (1) Ard see post, " Of Suits at Law and in Equity, by and against the Assignees." (2) Ex parte Proudfoot, 1 Atk. 2.51. Ex parte Cnfer, 1 Bro. 267. (5) Robson V. -, 2 Rose, 50. (4) Williams v. Waloby, 4 Esp. 220. ; and see Lord Lovelace's case, W.Jones, 268. Bell v. Du7i- derville. Sect. 4.] OF THE ASSIGNEES. 325 executor is good, because each has a power over the whole Authoriti/. estate of the testator, and each is considered as a distinct person ; yet, that this was not the case with assignees of a bankrupt, who are in the nature of trustees. (1) But it has been decided by Lord Kenyon at fiisi prius, that a bona Jide payment to one assignee would be good, and that his receipt would bind the estate (2); unless, indeed, his co-assignee expressed his dissent; — for, without that exception, one assignee might be enabled to dissipate and destroy the estate in despite of his brother trustee. Assignees will not be permitted to charge the estate No right to for business done by themselves as accountants, though ^"^''g^/or •' , _ . travelling they carry on that particular business for their own live- expences, lihood. (3) Nor, though it may be sometimes proper for the creditors to make such an allowance, have they any right to charge for their travelling expences. (4) Assignees under a separate commission against one of As to en- two partners, cannot in tjeneral en£iaa;e in new adventures S^S'"g '" with the solvent partner ; though they may do so with the ventures, consent of the creditors of the bankrupt. (5) The assignees are entitled to the custody of the proceed- As to gus- ings under the commission, and have a ri^ht to nominate ^"^^ of the ... . proceed- the solicitor, with whom they shall be deposited. (6) They ings, and are, in fact, responsible for the safe custody of the proceed- "omma- c . , , . 1 * 1- . .,, , tion of the ings ; ror neither the assignees, nor the solicitor, will be solicitor. permitted to say, that they are in any person's hands but their own. (7) The solicitor, however, may be changed by the majority of the assignees, and the commission and proceedings will be in that ease ordered to be delivered up to the new solicitor; — but the dissenting assignee has a right to know, whether such change will be beneficial. (8) (1) Canny. Reed, sAtk. 695. (5) Crawshay v. Collins, 15Ves. (2) Smith V. Jamieson, 1 Esp. 228. 114, Bristow v. Eastman, ibid. (6) Ex parte jScar/A, 15 Ves.293. I<72. Ex parte Watson, 1 C. B. L. 105. (3) Ex parte Read, 1 G. & J. 77. (7) Ex parte Btdlen, 1 Rose, 134. (4) Per Lord Eldon, ex parte (8) E^ parte Scrubi/, 1 Rose, 207. Brai/, I Roue, 145. Ex parte Tomlinson, 2 Rose, 66.; and see post, " Solicitor." Y S 326 OF THE ASSIGNEES. [Ch. 10. Duty and If an assignee employs an agent in the conduct and ma- h ahihty. nagement of the bankrupt's property, who misapplies and When li- embezzles any part of the effects, — the assignee will be able for liable to make it ffood, unless he had consulted the body the acts of f i • • • an agent, of the creditors (who are his cestui que trusts) in the appoint- ment of such agent. (1) But when the assignees employ a person, either from necessity, or conformably to the general usage of mankind, they are not then liable for losses, or for the default of such agent. Thus, where an assignee em- ployed a broker to sell a quantity of tobacco, and the broker received the money, and in ten days failed, without having paid it over, the assignee in this case was held not bound to make it good. (2) Only an- Assignees are, like other trustees, only answerable indi- swerable vidually for what each actually receives ; and the miscon- for their , X • -n • i • • own acts, duct oi one assignee will not operate against his innocent co-assignee (3) ; notwithstanding in the assignment they covenant jointly and severally with the (4) commissioners. As to keep- There are various provisions in the new statute, as to the ing and keeping and the auditing of the accounts of the assignees. auditing' r a o c? accounts. Thus, by section 101. (5), they are directed to keep an account of all property of the bankrupt received by them, and all payments made by them on account of the bankrupt's estate; which account every creditor, who has proved a debt under the commission, may inspect at all seasonable times. And, by a general order of Lord Lough- borough (6), the assignees under a joint commission are required to keep distinct accounts of the joint and separate estates. By section 106., also, of the new act, the commis- sioners are directed, at the meeting for the bankrupt's last examination, to appoint a public meeting, not sooner than four calendar months fiom the issuing of the commission, nor later than six calendar months from the bankrupt's (1) In the Matter of Earl of 98. In the Matter of Earl of Litchfield, 1 Atk. 87. Litclifield, supra. {'■A) Ex parte Belchier, Ambl. (4) l Atk. 90. 218.; and see ex parte Wilkinson, (5) Taken from 5 G. 2. c. 30. Buck. 197. and post, 539. s. 26. (3) Primrose v. Bromley, I Atk. («) 8th March 1794. Sect. 4.] OF THE ASSIGNEES. 327 last examination, (whereof twenty- one days' notice must be Duty and given in the Gazette) to audit the accounts of the assignees, ^' who must then deUver upon oath a true statement in writing of all money received by them respectively, and when and on what account, and how the same has been employed. And the commissioners are required to exa- mine such statement, and compare the receipts with the payments, and ascertain what balances have been from time to time in the hands of the assignees respectively, and enquire whether any sum ought to be retained by them. In this inquiry, the commissioners may examine the as- signees upon oath ; who are to be allowed to retain all such money, as they shall have expended in suing out and pro- secuting the commission, and other just allowances. The assignees, also, by section 101., may be summoned by the May be commissioners at any time to produce all books and docu- jo"!^'^"'^^ ments relating to the bankruptcy ; and in case of default, duce their attendance may be enforced by warrant ; — and upon "°^'^^» *^'^- refusal to produce them, the commissioners may commit the assignee refusing to prison, until he shall submit him- self to the commissioners. Besides the above provisions as to the authority of the Can be commissioners over the assignees, the latter can be com- ^o^P^l'^d ^ ' . to account, pelled also to account for what they have received by hype- petition (1) (not by hill [2) ) of the bankrupt, or of any of ^*^'""' the creditors. But a previous application should ba made for this purpose to the commissioners ; and if they miscarry in their judgment, or refuse to act, then the creditors, or the bankrupt, may petition the Court to have the accounts taken. (3) When an assignee dies before he has accounted for the When as- . J. bankrupt's estate received by him, and leaves no personal ^'|j^^g ^^^ assets, the commissioners will be considered as specialty counting, creditors ; — for the assignee having executed to them a counterpart of the assignment under hand and seal, his covenant to account with them for monies received is in (1) Per Lord Eldon, Buck. 92. (s) Ex parte JBrocksopp, Buck. (2) Saxton V. Davis, 18 Ves. 80. 304. Y 4- S2S OF THE ASSIGNEES. [Ch. 10. Duty and liability. Bound by contract of bankrupt. When li- able for goods ordered by bankrupt. For costs and wit- ness's ex- penses. the nature of a specialty debt, and they may consequently come upon his real estate. (1) The assignees are bound to fulfil a contract made by a bankrupt before his bankruptcy, part of which has already been performed by him. Therefore, where a bankrupt had contracted to purchase a quantity of wool, on an agreement that a deposit of 5 per cent, was to be made on the amount of the purchase money, and that the re- mainder was to be paid when he took away the wool; and after the deposit was made, and the bankrupt had taken away part of the wool and paid for it, the price fell in the market ; and the assignees contended that the seller could have no further claim after the forfeiture of the deposit, — the Vice-Chancellor held, that (the bankrupt having taken away part of the goods) the assignees were bound in the terms of the contract to take away the re- mainder ; and he ordered the residue of the wool to be sold, and that the vendor might prove for the difference between the amount of the proceeds, and the price which the bankrupt had agreed to give for it. (2) Where the assignees authorize the bankrupt, as their agent, to carry on the business for the benefit of the cre- ditors, and the bankrupt orders goods which are used in the business, — the assignees are liable to an action for the price of them, though they are ordered by the bankrupt in his own name. (3) Assignees are liable to pay the costs of the trial of an issue directed to try the validity of the commission, when the verdict is found against them ; but they will not be made to pay the costs of a petition to supersede (4) the commission. They are also liable to an action for the travelling expenses of a witness, after allowance by the commissioners; though the witness be also a creditor of the bankrupt. (5) {\)Frimrose\. Bromley, \ktV..9,S. (o) Kinder v. Howarth, 2 Star. Wacl:erbath v, Powell, Buck. 495. 554. (2) Ex parte Gou/cr, sittings after (4) Ex parte Edwards, Buck. Trinity term 1826, cor. Vice- Chancellor. 232. (5) Yarker v. BotJiam, 1 Esp. 64. Sect. 4.] OF THE ASSIGNEES. 329 It is no defence to an action by a solicitor against an as- Butp and signee, for business done as solicitor to the commission, that ' " ' ' ^' the commission was sued out under a misrepresentation of When the solicitor, — such as that the commission would be oper- ^^^ [P ative in the Isle of Man, where it turned out to be wholly citor and fruitless; — for the commission cannot, while it exists, be ™^ssenger. considered as a mere nullity; and the only remedy of the • assignee, in such a case, is to have recourse to a cross action against the solicitor. ( 1 ) And though a commission be su- perseded for fraud, to which the assignees are in no way privy — and, though they have not, in fact, received any effects under the commission, — they are, nevertheless, liable to pay the messenger his costs of the several sum- monses and proceedings subsequent to the choice of as- signees. (2) Even after a final dividend is made, they are still liable to the messenger for his fees and expenses; for they are presumed to know his claim upon them, and ought to reserve sufficient (3) to satisfy it. Assignees, also, may make themselves liable to the solicitor under the commis- sion, beyond what a Master in Chancery will allow on taxation ; though they cannot charge the estate with any tees, or costs, which have not been so allowed, (■i) The assignees are bound to contribute respectively one Bound to to another, for their several proportions of losses, or ex- contnbute penses, occasioned by their joint acts. Thus, where a loss penses of to the bankrupt's estate was brought about by the joint act joint acts, of three assignees, and an order was made upon the three to make good the loss, and one only paid the whole amount, — upon a bill filed by him against the other two, (although it appeared that they had acted under his repre- sentation and advice) contribution was nevertheless en- forced against them with costs. (5) So, where two of three assignees became bankrupt, the solvent assignee, who had paid a debt due from the three to the estate, was held (1) Pa«?Horev. ^»toV, 2Star.59. (4) Finchett v. How, 2 Camp. (2) Ex paite Hartop, 9 Ves. 109. 278. 12Ves. 349. (5) Lingard v. Bromley, 1 Ves. (•5) Ibid. 1 Rose, 449. & B. 1 14. 330 OF THE ASSIGNEES. [Ch. 10. Duty and liability. entitled to prove a third of such debt against each of their estates. And, if either of the estates in such a case had proved deficient, it seems, that he would not have been restricted from proving a moiety of the deficiency ao-ainst the estate of the other assignee, (i) Two of three assignees, however, cannot bring b, joint action against the third, for his share of the contribution towards any loss, or payment (2) ; but each must bring a separate action. And, in such an action, the plaintiff is not bound to show, that any funds came into the defendant's hands from the bankrupt's estate. (3) For the duty of the assignees in the payment of di- vidends, see post, title " Dividend." Personally liable for wrongful seizure of property. Liability of joint estate, under a separate commis- sion, for expenses. 2. Of the Duty and Liability of the Assignees in collecting and disposing of the Bankrupt's Property. It is the duty of the assignees to collect in all the bank- rupt's property, with as much expedition as the nature of it will admit. They should be careful, however, not to seize the property of other persons ; for they will become then personally liable for any loss occasioned by such seizure. Thus, in a case where assignees wrongfully took possession of a farm (which did not belong to the bank- rupt) and kept it for a long time, during which they had mismanaged it, — the Lord Chancellor ordered, not only the restitution of the property, or its value, but also that the assignees should be personally liable, beyond the funds in their hands, to make good the loss occasioned by such mis- management; and his decision in this respect was after- wards approved of by the Court of King's Bench. (4) If assignees under a separate commission are put to any expense in recovering joijit property, the separate estate is entitled to be reimbursed out of the joint estate. (5) But if, under a separate commission, joint creditors employ a (1) Ex parte Hunter, Buck. 552. (2) Brand v. Boulcot, 3 Bos. & P. 235. (3) Hart V. Biggs, 1 Holt^ 245. (4) Ex parte Cowaw/sB. & A. 123. (5) Ex parte Rutherford, 1 Rose, 201. Sect. 4.] OF THE ASSIGNEES. SSI- person to collect in the joint property, without first ob- Duly in laining the sanction of the Court, they who employ him ^" '''^ '?^ must pay the expense, and not the joint estate. (1) When the assignees have collected in the property, it is As to the their duty then to sell it as soon as can be done with ad- ^^^^ of the . property, vantage; and if they neglect to dispose of it, the Lord Chancellor upon the petition of a creditor will order a sale, notwithstanding the assignees may be desirous of keeping the estate unsold, conceiving it to be more bene- ficial for the creditors ; for if such an order be pressed for by any one creditor, Lord Loughborough said, the Court could not refuse it. (2) And in one case, where the assignees had permitted the bankrupt to continue in possession of a farm for eighteen months, they were ordered to sell it, and to pay the costs of the appli- cation. (3) In all these cases, if any individual creditor has called upon the assignees to sell property, which they defer the sale of in the expectation of benefiting the estate, it will be at their peril of answering any difference of price, notwithstanding a considerable number of the creditors approve of the sale being deferred. (4) The assignees, being bound to exert themselves to make Not re- the most of the bankrupt's property, are accustomed ^tnctedtt* , , ,. . any par- generally to put it up to sale at public auction. But ticular though this is the general practice, they may sell it if they ™I^^'*^ °* choose by private contract; and (with the consent of the creditors) there would, indeed, be no objection to that mode of sale. If, however, they adopt that method upon their own responsibility, — and a complaint be made, that the property by a different mode of disposal might have been made more productive, — the Lord Chancellor will, upon a proper case made out, direct an inquiry whether the pro- perty could have been sold to any, and what, greater ad- (1) Ex T^dxte Longman, 1 Rose, (5) Ex parte Por/cr, 4 Mont. B. 303. L. App. 31. (2) Ex parte Goring, I Ves. jun. (4) Ibid. Ex parte Hughes, 168. 6 Ves. 617. Ex parte Kendal, 17 Ves. 514. 332 OF THE ASSIGNEES. [Ch. 10. Duty in collecting property. As to sale before the commis- sioners. When biddings may be opened. Sales free from auc- tion duty. vantage. (1) But the Chancellor will not, in general, make any order hoxio the bankrupt's estate shall be sold, but leave that power to the commissioners, who may give directions for selling it in the manner they may think most advan- tageous. (2) Nor will an order be made to restrain the assignees from selling in any particular mode; for they act in this respect at their own risk, and upon their own responsibility ; and they ought, therefore, to be the best judges of the propriety and expediency of the mode of sale. (3) An estate of value is frequently sold before the commis- sioners ; and this, perhaps, is the most effectual mode to prevent all collusion between the assignees and any other party. The advertisement for such a sale should not be general, but should specify the period of time when the sale is to take place, — as in the case of a sale before a Master, where the advertisement states that the sale will take place during a certain period, as between the hours of ten and twelve. But if a better bidder offers after that period is expired, and the commissioners are not gone, they ought to admit him ; and if they refuse to do so, the Lord Chancellor will, upon petition, open the bidding. (4) Though biddings are not often opened by the Lord Chan- cellor after a sale has actually taken place, yet, under special circumstances, and upon an early application, such an order will be made, if the justice of the case requires it. (5) Lord Manners, however, refused such an application, where the purchase deed had been executed, and the pur- chaser put into possession. (6) The sales of any real or personal estate of the bankrupt are, by the 98/A section of the new statute, exempted entirely from the auction duty. Where, however, the bank- rupt has mortgaged any part of his estate — and the as- (1 ) Ex parte Bunman, 2 Rose, GG. (2) Ex parte Comings, 1 Ves. 112. (3) Ex parte Montgomery, 1 G. & J. 558. (4) Ex parte Green, 1 Atk. 202. (5) Ex parte Partington, 1 Ball & B. 209. 1 Rose, 567. (6) Ibid. Sect. 4.] OF THE AKSIGNEKS. 333 signees, instead of selling the equity of redemption, take -Dw'y in upon themselves to sell the whole property absolutely as ^".pl^^^f the estate of the bankrupt, — such a sale has been held by the Court of Exchequer to be still liable to the auction duty, on the ground, that the bankrupt had no interest in the lands higher than an equity of redemption. And the Court refused even to deduct the proportional part of the duty, payable on the value of the equity of redemption, — con- sidering that one entire duty was payable on the whole, and that if the assignees chose to blend the interest so indis- criminately, the Court was not bound to relieve them. (1) Assignees are bound, like other persons, to make out a Assignees good title to a purchaser, unless they guard themselves by °*j." *° express stipulation (2); nor can they, without doing so, good title, either compel the completion (3) of the purchase, (which they may do in ordinary cases by petition (4') to the Lord Chancellor) or retain the deposit upon the price of the estate, which is contracted to be sold. (5) In a case, how- ever, where assignees put up to sale the bankrupt's interest in an estate under such title " as he lately held the same, an abstract of which might be seen at the office of Messrs. J. and Co.," — it was held, that the vendee could not, after such a notification, insist upon any other title than such as the bankrupt had (6) ; for a vendor, if he thinks fit, may stipulate for the sale of an estate, with such title only as he happens to possess. (7) By the 78th section of the new act, the Lord Chancellor As to may, on the petition of the assignees, or of any purchaser P''':"F"P* *" r o ' .^ r ^ joining m of the bankrupt's estate, order the bankrupt to join in any convey- ance. (1) Rex V. Abbott, 3 Pri. 178.; (6) Fre7iie v. Wright, 4 Mad. and see ante, " Proof of Creditors 394. by Mortgage." (7) Mr. Sugden observes upon (2) M'Donaldv. Hanson, 12Ves. this case, that conditions like these 277.; and see White v. Foljambe, should be looked at with great 1 1 Ves. 343. Sugden, V. & P. 524. jealousy, as they are often traps for (3) Orlebar v. Fletcher, 1 P. the unwary ; and the Court should Wms. 737. at least expect the fact to be (4) Ex parte Goidd, 1 G. & J. broadly stated, that the seller only 251. sells such title as he has, without (5) Bartlett v. Tuchin, 1 Marsh, warranting the same. Sugd. V. & 583. P. 524. 331 Duty in collecting property. Must give copies of title deeds. OF THE ASSIGNEES. [Ch. 10 Assignees restricted from pur- chasing bankrupt's property. 1 conveyance; and by the Sith section, no title of any pur- chaser can be impeached by the bankrupt, or any person claiming under him, unless the bankrupt shall have applied for a supersedeas within twelve calendar months from the issuing of the commission. (1) Where title deeds cannot be delivered, assignees must also (like any other vendor) give attested copies of them at the expense of the estate; but they are entitled to limit their covenant, for the production of such deeds, to the time of their continuance as assignees. (2) In the sale of lease- hold property, they are not, as incidental to the contract, entitled to a covenant from the purchaser to indenmify them against the rents and covenants in the original lease ; for, to enable them to insist upon such a covenant, there must be an express stipulation to this effect in the agree- ment for sale. (3) And, indeed, there does not seem to be any necessity for a stipulation of this kind at all ;' for an assignee of a lease, being only liable to the lessor by reason of his privity of estate, is discharged from all fur- ther liability as soon as he has effectually assigned the term, and divested himself of all interest in the premises. The assignees, in the disposal of the bankrupt's pro- perty, are considered in their general character as trustees; and, therefore, upon the general principle that a trustee shall not purchase the estate of his cestid que trust, they are held incapable of becoming purchasers themselves of any part of the bankrupt's property, without the consent of all the creditors. And the Lord Chancellor will, upon general grounds of policy alone, and without regard to the fair intentions of the parties, set aside every such sale, — and, in general, make the assignees pay the whole expense (4) incurred by such proceeding. If the assignee so pur- (1) These sections are similar (though somewhat altered) to the provisions in the 3 G. 4. c. 8 1 . s. 4. (2) Rx parte Stuart, 2 Rose,215. (3) Wilkins\. Fry, 2 Rose, 371. 1 Meriv. 244. (4) Whichcote v. Latvretice, 3 Ves. 740. Campbell v. Walker, 5 Ves. 678. Ex parte Hughes, 6 Ves. 617. Ex parte Lacey, ibid. 625. Lister V. Lister, ibid. 651. Ex parte Tan- ner. Ex parte Atwood and Oiven V. Foulkes, cit. 6 Ves. 630. Ex parte Morgan, 1 2 Ves. 6. Sect. 4.] OF THE ASSIGNEES. 335 chasing should have re-sold the estate, and made a profit -0«(y in of it, he will be ordered to account for such profit to the Z-onertv creditors ( 1 ) ; and the very circumstance, of an assignee having purchased part of the bankrupt's property, will be a sufficient ground for removing him, as well as his co- assignee who permitted the purchase. (2) If, however, in But held investigating a transaction of this description, it should f° . " ° . bargain, turn out that the contract would be beneficial to the bank- when con- rupt's estate — or where the future sale does not produce ^■^^!^\ h&ne- more than what the assignee agreed to give tor it (3) — he the estate, will then be held strictly to his bargain. And where an assignee, without the authority of the creditors, bought in the bankrupt's estate, which was put up to auction in two lots — and upon a re-sale there was a loss upon one lot, and a gain upon the other, though the whole balance was in favour of the bankrupt's estate, — the assignee was held in this case chargeable with the whole of the loss on the lot undersold, without being permitted even to set off against it the profit on the other lot. (4) Where notice, however, was given of a reserved bidding at the sale by the assignee for the benefit of the creditors, and several of the principal cre- ditors present at the sale sanctioned such reserved bidding, and afterwards expressed their approbation of the conduct of the sale, — the assignee, under these circumstances, was held not liable for the deficiency between the price that was offered at the sale, and the sum for which the property was afterwards actually sold. (5) In like manner, if an assignee, instead of selling the Assignee estate, should take a lease to himself, he is held answerable to f^""°' ' ' ^ take a the creditors for profit or loss. (6) And where an assignee lease to was the landlord of certain premises, which had been let '"'"5^"» to the bankrupt from year to year — and, without determin- ing the tenancy by any notice to quit, the assignee got pos- (1) Ex parte Reynolds^ 5 Yes. (4) Ex parte Leivii, I G.&J. 69. 707. (5) Ex parte Buxton, 1 G. & J. (2) Ibid. 555. (3) Ibid. (6) Ex parte Hughes, 6 Ves. 6 1 7. ^ 336 Duty in collecting property. or pur- chase di- vidends. Same dis- ability at- taches to the com- missioners, and the solicitor. When strictness of the rule relaxed. OP THE ASSIGNEES. [Ch. 10. session of the house, and let it to a new yearly tenant, re- ceiving a honus for such new demise, — Lord Eldon decided, that he was not entitled to retain it ; for that an assignee, under these circumstances, cannot resume possession and re- let, unless for the benefit of the creditors of the bankrupt. (1) So, if an assignee purchase dividends of the bankrupt's estate from a creditor, and the purchase be beneficial, he is then considered a trustee for the creditor, or the bankrupt, ac- cording to the circumstances of the case. (2) And where an assignee had purchased goods at a sale under thecommission, and afterwards became bankrupt, it was ordered, that such of the goods as remained in specie should be delivered up (3), and that what he had re-sold should be proved as a debt. The same disability, as to the purchase of any part of the bankrupt's property, attaches likewise to the com- missioners, and the solicitor under the commission — who, by reason of the situation in which they respectively stand, are subject to the same rule as the assignees are bound by in this respect. (4) The strictness of the rule has, however, in certain cases, been relaxed by the Lord Chancellor ; but this has only been done under very special circumstances, upon an ap- plication made previous to the purchase, and with the con- sent of the creditors obtained at a meeting called for that express purpose. (5) In one case, where (from the situation of the property) it was difficult to obtain a purchaser, and the property had been valued by an indifferent person, and the bankrupt consented to the purchase, — it seems, that an assignee was allowed to purchase. (6) But though the creditors, at a meeting convened by advertisement (7)> (1) Ex parte Wright, 2 Rose, 244. (2) Ex parte Lacy, 6 Ves. 625. (3) Ex parte Spong, 1 Rose, 133. (4) Owen v. Follces, 6 Ves. 639. note (b). Ex parte .Tames, 8 Ves. 337. Ex parte Linwood. Ex parte Churchill, cited ibid. 543. Ex parte Bennet, 10 Ves. 381. (5) Ex parte Hodgson, 1 G. & J. 12. Ex parte Page, 4 Mad. 459. (6) Ex parte Maychell, Whitm. B. L. ) 53. Sed quaere, whether there must not have been also the consent of the creditors, as well as that of the bankrupt. (7) Mr. Eden in his Treatise on the Bankrupt Law (p. 205.) siig- 15 Sect. 4.] OF THE ASSIGNEES. S37 sanction a sale of the bankrupt's effects at a valuation to an assignee, the Court will not order that the assignee shall be allowed to purchase, without a reference to the commissioners, to ascertain whether the property can be more advantageously disposed of. (I) Nor will such an order be made, unless the other assignees, as well as the bankrupt, are served with the petition. (2) By the 102d section of the new act, the major part in value of the creditors present at the choice of assignees, may direct how and where the money received out of the bankrupt's estate shall be paid in, and remain, until it be divided ; and if they do not make such direction, then the commissioners are empowered to make it. But no money can be directed to be paid into the hands of any of the commissioners, or of the solicitor to the commission, or into any banking-house or other house of trade, in which any such commissioner, assignee (3), or solicitor (4) is interested. Duty in collecting pro2)erti/. How mo- ney to be lodged until a dividend. gests a very reasonable doubt, how far the consent of such a meeting would be sufficiently indicative of the consent of the creditors, (and see Nias v. Adamson, 3 B. & A. 225.) for that few persons, in point of fact, see the Gazette, and a meet- ing of creditors is, in point of prac- tice, but very thinly attended. The power of creditors present at such a meeting to bind those who are absent, has been often indeed some- what hastily presumed ; the new statute gives it only in some pe- culiar cases, such as to enable the assignees to compound with cre- ditors, submit to arbitration, com- mence suits in equity, or accept a composition contract from the bankrupt or his friends. (1) Ex parte Serle, 1 G, & J. 187. (2) Ex parte Page, 4 Mad. 459. (3) For want of this restriction, much inconvenience and loss was ibrmerlv occasioned to the cre- ditors; See Ex parte .Ba/irer, IsVes. 246. (4) This enactment, with the exception of the prohibition con- tained in the last part of it, is con- formable to the 5 G. 2. c. 30. s. 32., which contained a similar provi- sion. But, notwithstanding the directions of this last mentioned act, it frequently happened that large sums of money remained in the hands of the assignees, who delayed dividing the same amongst the creditors, and often made use of the money for their own pur- poses. To remedy this evil in some measure. Lord Loughborough, by a general order 8th March 1794, directed, that where the creditors had not given directions where the money was to be placed, the as- signees should pay it into the Bank of England, as often as it amounted to 100/. Money, however, to a large amount was still often re- tained by the assignees, which oc- 338 OF THE ASSIGNEES. [Ch. 10. Duty in collecting property. May be invested in purchase of exche- quer bills. Penalty on assignee retaining money in his hands. By the following sectimi 103, the commissioners may tlirect any money to be invested in the purchase of ex- chequer bills, for the benefit of the creditors ; and may also direct where and with whom such exchequer bills shall be kept, and may cause the same to be sold, when it shall seem to them expedient that the proceeds should be again laid out in the purchase of others for the benefit of the creditors; subject, however, in every case of this kind to the control of the Lord Chancellor. Audhy section lO^., if any assignee shall retain (1) in his hands, or employ for his own benefit, or knowingly permit his co-assignee to retain or employ, any sum to the amount of 100/. of the bankrupt's effects ; or shall neglect to invest money in the purchase of exchequer bills, when directed as above mentioned; — such assignee will be liable to be charged by the commissioners with interest, at the rate of 20 j^er ccnt.^ on all such money for the time during which he shall have retained or employed it, or permitted the same to be done, — or during which he shall have neglected to invest the money in the purchase of ex- chequer bills. This enactment will be construed strictly against the assignees, as the act is imperative ; and great mischief, indeed, would frequently ensue to the creditors, if assignees were encouraged, by any laxity of construction, to disregard regulations so important to the general interests of the creditors. Therefore, where an assignee kept 346/. in his casioned frequently considerable losses to the creditors; and the only means, which the Court had to deter assignees from such mis- conduct, was to make them pay interest for all money wilfully re- tained in their hands. Ex parte Lane, 1 Atk. 90. Turner v. Town- send, 1 C. B. L. 274. 1 Cox, 50. 1 Bro. 384. Hilliai-d's case, 1 Ves. 89. Hanley v. Garratt, 5 Bro. 4fiO. Ex parte Edwards, 6 Ves. 3. Ex pnvtc Tnwn.ic7id., 1.5 Ves. 470. Ex parte Baker, 18 Ves. 246. This induced the legislature, first in the 49 G. 3. c. 121. s. 4. and now in this act (section 104.), to impose a severer pecuniary penalty upon the assignees for not obeying the directions of the creditors or com- missioners, as to the deposit and investment of the money belong- ing to the bankrupt's estate. (l) The former enactment in the 49 G. 3. c. 121. s. 4. was if he should wilfully retain, &c. Sect. 4.] OF THE ASSIGNEES. 3.39 hands for about three months, though without any evil Duty in intention being imputed to him — and having in fact acted \°j.opcrtu. meritoriously in the general matters of his trust, — he was, nevertheless, ordered by Lord Eldon to pay the penalty of 20/. per ceni., from the time when he ought to have paid the money into the bankers, (i) But where assignees gave cheques upon the banker of the estate to an agent, to enable him to purchase exchequer bills, pursuant to the commissioners' order, for the benefit of the estate — and the agent received the money and converted it to his own use, but some time afterwards replaced it at the banker's, — it was held, that the assignees were not, for the acts of an agent so employed, chargeable with the 20 per cent, upon the amount of the monies misapplied ; as this was not a xsoilful retention or employment of the money for their own benefit. (2) The penalty of 20 per cent, is to go in augmentation of the general estate of the bankrupt, and does not belong to any particular creditors, as a com- pensation for the loss they have suffered from the acts of the assignee. (3) Where an assignee died after the mis- application of monies in his hands, the late Vice-Chancellor thought that his estate was liable to pay the 20 per cent, upon the funds misapplied, though the amount of this jpenalty could not be considered (as the amount of the misapplied funds was) a specialty debt against the de- ceased assignee's estate (4) ; but Lord Eldon decided in this case, that the estate could only be charged with 5 per cent. (5) The penalty is meant to apply to a solvent assignee only, and is not intended to prejudice the general creditors of a bankrupt assignee, against whom a different penalty is imposed by the \05th section of the statute. Therefore, where the assignee becomes bankrupt, his co- (1) Ex parte Bray, 1 Rose, 144. these circumstances, be more liable (2) Ex parte Wilkinson, Buck, to the penalty than he was before. 197. Quaere, whether though the (3) JVackerdarthv. Powell,Bnck. word wilful is omitted in the new 4 95. statute, the assignee would, under (4) Ibid. (5) Id. 'JG.&J. 151.' VOL. I. * z 2 340 OF THE ASSIGNEES. [Ch. 10. Duty in collecting property. Where one as- signee absconds. assignee will only be permitted to prove for the amount of the money so mis- employed, with interest at 5 per cent., and not to include in the proof the penalty of 9,0 per cent.[\) In order to charge the assignees in an action with the 20 per cent, on balances retained, it seems, that the commissioners ought previously to settle an account charging them with such interest; and, as it is in the nature of a penalty, it must be declared on specially^ and is not recoverable on the common count for interest. (2) Where money was deposited in the Bank in the names of three assignees, and one of them absconded, an order was made by Lord Eldon, that the Bank should pay the cheques signed by the other two assignees. (3) What may be proved against an assignee. Bankrupt assignee not en- titled to dividend till when. Section V. When Assignees become Bankrujyt. The bankruptcy of an assignee does not put an end to the trust; and the money which he has received, remaining un- accounted for by him, may be proved under his commission. The proper person to prove is the solvent co-assignee; and the amount of the proof will be the balance due from the bankrupt assignee, with interest at 5 per cent. (4) But, if a proof in the original bankruptcy be not made until after the bankruptcy of the assignee, the demand of a creditor (so proving under the original bankruptcy) cannot be proved under the commission against the assignee, — and conse- quently will not be barred (5) by the assignee's certificate. When an assignee becomes bankrupt, his estate will not be entitled to any dividend on the proof made by him under the estate of which he was assignee, until full re- imbursement is made to that estate of the money, which he had in his hands at the time of his own bankruptcy (6); (1) Ex parte Goldsmith, 1 G. & J. 405.; and see post, 296. (2) Beresford v. Birch, 1 Carring. N.P.375. (3) Ex parte Hunter, 2 Rose, 565. (4) Wackerbarth v. Powell, Buck. 495. Ex parte Goldsmith, supra. (5) Ex parte Stonehouse, Buck. 531. (6) Ex parte Bignold., 2 Mad. 470. Sect. 5.] OF THE ASSIGNEES. 341 for a man ought not to come as a creditor upon an estate, W7/<7h of which he is himself a dcbtor.{\) TaSZpt. Where two of three assignees became bankrupt, the Wh ere solvent assiOTee, who had paid a debt due from the three ^ ° , . two assig- to the estate, was held entitled to prove a third of such nces bank- debt against each of their estates. And if either of the ^"^^^' ^°^' ° . . vent as- estates proved deficient, it seems, that he would not have signee may been restricted from proving a moiety of the deficiency, P'jo^^ against the estate of the other assignee. (2) By section 105. of the new statute, if any assignee shall Certificate retain in his hands, or employ for his own benefit, any sum ^^ ^ bank- to the amount of 100/. of the bankrupt's estate, and become nee, who bankrupt himself, being so indebted to the estate of which misapplies he is assignee, his certificate will only have the effect of jog^ ^o^ freeing his person from arrest and imprisonment; but his protect his Juture effects (with certain exceptions) will remain liable effects for so much of his debts to the estate of which he was as- signee, as shall not be paid by dividends under his com- mission, together with interest for the whole debt. The penalty of 20 percent, imposed by the 104T<7a;i-, that seemed seems as much connected with the to have been in question, administration of justice, ab an A A 4 S§0 OF THE ASSIGNMENT [Cll.ll. Pt. 1. and this upon principles of public policy. ( 1 ) The place of a jew broker, also, in the city of London, has been holden not assignable ; — though this was considered to be no office at all — such a person being merely one of a particular description, and of a limited number, who are licensed as brokers by the Court of Aldermen. (2) Section V. Of Advowso7is. Commis- Where the patron of a living becomes bankrupt, the inaT'^^11 commissioners may sell the advo'wso?i ; — and so with re- an advow- spect to a right of next presentation to a living. But if T"t*"^ the church be void, then the presentation cannot be sold ; sentation, for the void turn of a church is not valuable (3) ; and the unless the bankrupt, therefore, in that case is entitled to present. For church be • n\ • void. the 77//z section of the new statute, enabling assignees to execute powers (4) vested in the bankrupt, contains an ex- press exception of the right to nominate to any vacant ecclesiastical benefice. If a clergyman be bankrupt, his living is liable to a sequestration ; and the proceeds are distributable amongst his creditors. (5) (1) Cathcart v. Blackwood, 1 C. (2) Ex parte Lyons, Ambl. 89.; B.L. 284. \xi re Kennedy, ih. And and see an able note of Sir W. see Flarty v. Odium, sT. R. 681. Evans, in his Collection of the Lauderdale v. Duke of Montrose, Statutes on Bankruptcy, B. L. 15. 4 T. R. 248. Barimck v. Read, as to what offices are and are not 1 H. B. 627. Stone v. Lidderdale, assignable under a commission, in 2 Anst. 533. Contra Stuart v. which he expresses a doubt that Tinker, 2 Bl. 640. as to cases of Lord Hardwicke's decision in ex insolvent debtors. But now by the parte Butler, supra, will not stand last Insolvent Act, (vG. 4. c. 57. the test of fair and deliberate ju- s. 29.) a certain portion only of the dicial inquiry. pay of an insolvent officer in the (3) Gibs. 794. 1 Burn's Eccle- arniy, or navy, can be assigned siastical Law, 125. under particular restrictions, for (4) Sec post, 362. the benefit of his creditors. (5; Ex parte Meyimtt, 1 Atk. 200. ; but see ante, p. 20. Sect. 6, 7. J AS TO THE REAL ESTATE. 361 Section VI. Of Reversions. As the commissioners are by section 64. ( 1 ) empowered to convey all the interest^ to which any bankrupt is entitled in any lands or hereditaments, and which he may by law dispose of, — it seems to follow, that they may convey a re- version, or remainder^ of the bankrupt ( as well as lands in possession), or indeed any future interest which is vested in the bankrupt at the time of the issuing of the commission — such as a term to commence m Jicturo. (2) And the 65th section of the new statute, as has been already stated (3), expressly enables the commissioners, in the case of an estate tail of the bankrupt, to make sale of any reversion, or remainder, of such estate, whereof no re- version or remainder is in the crown. Section VII. Of Powers. When a power of appointment was vested in a bankrupt, Former it seems to have been for some time a point unsettled, ""^cer- whether the bargain and sale of the commissioners had the to the same operation, as a due execution of the power by the vesting ol bankrupt. (4) In one case it was decided, that a bank- [^g 3^. rupt, who has an absolute power of appointment, could signees^ not be compelled by a decree, on a bill in equity filed against him, to execute such power in favour of his as- signees. (5) In a subsequent case, however, in the King's Bench, where the bankrupt was seised of a life estate with (1) Ante, 348. (4) Siigden on Powers, 154. (2) ii Com. Dig. 25, Good. 88. (5) Thorpe v. Goodall, I Robe, (3) Ante, 352. 4j. 17Vcs.270, 362 OF THE ASSIGNMENT [Ch. 11. Pt. 1. Poiucrs. But now all powers, with one exception, declared to be vested in them. Powers of attorney. the general power of appointment, with remainder in default of appointment to himself in fee — and after his bankruptcy he executed his power of appointment in favour of an apprentice, — it was held that, all his interest having passed to the assignees by the assignment from the commissioners, such appointment was void, and that his assignees had a sufficient legal estate to maintain an eject- ment. (1) And in a former case, too, where an estate was limited to the bankrupt for life, with other intervening uses, and remainder to himself in fee, with power to change the uses, — the remainder in fee was held to vest in the assignees, and his power of revocation to be gone. (2) But all question, as to powers of appointment vesting in the assignees, is now set at rest by the 77//? section of the new statute, which provides that all powers vested in any bankrupt, which he might legally execute for .his own hcncfit, (except the right of nomination to any vacant ecclesiastical benefice) may be executed by the assignees, for the benefit of the creditors, in such manner as the bankrupt might have executed the same. And, inde- pendently of this express provision as to powers of ap- pointment, the l^tli section (as we have seen (3) ) also enables the Lord Chancellor to order the bankrupt, to join in any conveyance to a purchaser under the commission of any part of the bankrupt's estate. With respect to powers of attorney, — it has been de- termined, that a power of attorney, given hij the bankrupt to receive money for him, is revoked by his bankruptcy (4); and it would seem also, that a power of attorney given to a bankrupt for the same purpose, would be equally re- voked. (5) But when the power has been given by a bankrupt to do a mere formal act, — such as to sign an (1) Doe V. Britain, 2 B. & A. 95. (2) Lofft,7l. (3) Ante, 353. (4) Hovill v.*Lethwaite, SEsp. 158. (5) Hudson V Granger, 5 B. & A. 31. Sect. 8.] AS TO THE REAL ESTATE. 369 indorsement upon the register of a ship when she returns home, (which the bankrupt indeed might be compelled to do himself", notwidistanding his bankruptcy) in such a case, the power of attorney has been held not to be revoked. (1) Section VIII. 0/ a Possibilitif^ or Contingent Interest. The words ^^ possihililij of 2)r()fit" are not contained in the new statute, as they were in the 5 Geo. 2. c. 30. s. 1., — where this among other species of property, was enumer- ated, which the bankrupt was compelled to give up in the disclosure of his effects. But the provision of that statute vested no power in the commissioners over this description of the bankrupt's property, nor, indeed, gave any direction as to what they were to assign — imposing only a particular penalty on the bankrupt, for not disclosing his effects in the manner there stated. The words " possibiUty of profit," therefore, afforded nothing more than an argu- ment, as to what the intent of the legislature was in those provisions, that related to the assignment of the commis- sioners of the bankrupt's general property — and on the strength of which it has been decided, that all property of the bankrupt, that was included under the words " pos- sibility of profit," passed to the assignees. (2) Notwith- standing those words are omitted in the present act, (for which, however, there does not seem to be any particular reason assigned) the learned author of it considers (3), that from the general tenor and purport of the act — from the provision at the conclusion of it, that it shall be con- strued beneficially for creditors — and from the extensive words (4) enabling the commissioners generally to deal with (1) Dixo7i V. Eivart, Buck. 94. (2) Thorj^c v. Goodall, 1 Rose, 5 Meriv. 322. ; and sec ex parte 44. Macdonnell, Buck. 599. Ex parte (3) Eden's B. L. 218. Stewart, iG. &J. 344. (4) Section IS."?. 364. OF THE ASSIGNMENT [Ch. 11. Pt. 1. A possi- bility as- signable. PossihilUy. and assign the bankrupt's property, — that the construction of the new statute will be as extensive in this respect, as if those words had been retained in it. But, as a possibility (coupled with an interest) is by law devisable (1), it would seem to follow on that ground alone, that it may be also assigned, with the other disposable property of a bankrupt, for the benefit of his creditors. And, where there was a devise to such of the children of A. as should be living at her death — and A. had issue (amongst others) B., who became a bankrupt, and got his certificate allowed — after which A. died, — it was held, that the assignees in this case were entitled to the bank- rupt's interest ; for that he himself might in his mother's lifetime have released such interest, — and that the commis- sioners were therefore enabled to assign it. (2) The possibility, however, must be such an interest as can be assigned, or released. Therefore the mere possi- bility, or expectancy^ of inheriting an estate generally as heir at law — there being no persona designata — cannot be assigned by the commissioners. So that if an estate, under these circumstances, comes to the bankrupt after he has obtained his certificate, neither the commissioners, nor the assignees, have any control over it. (3) But, if the estate descends to him before his certificate, it will, in that case, pass to his assignees under the QUh section of the new act. A policy of insurance effected by a bankrupt on his own life, passes to his assignees, however small the apparent value of it may be. (4) But not a mere ex pectancy of inherit- ing an estate. (1) Roe azm. Perry V.Jones, 1 H. B. 30. Jones V. Roe, 3 T. R. 88. (2) Higden v. Williamson, 5 P. Wms. 132. (3) Molk V. Frome, Ambl. 394. ; and see Carleton v. Lcighton, oMeriv. 671. (4) Schondler v. Wacc, 1 Camp. 487. Sect. 9.] AS TO THE REAL ESTATE. 365 Section IX. Of a voluntary Conveyance. (And see post, 380. as to Personal Property fraudu- lently delivered in contemplation of bankruptcy.) By the 73d section of the new act, if any bankrupt, Convey- bei)7g at the time insolvetit (1), shall (except upon the mar- .^"'^f l'^ riage of any of his children, or for some valuable consider- without ation), have conveyed, assigned, or transferred to any of consider- his children, or any other person, any hereditaments, &c., (bein^ at the commissioners have power to sell and dispose of the ^^^^ ^™^ same; and such sale is declared to be valid against the void, bankrupt, and such children and persons claiming under him. A voluntary settlement, or purchase, for a *isoife, made A volun- after marriajie, has been held to be included in this power ^^^^ settle- . , '^ . . , • n , '"^"t on a given to the commissioners, upon the construction or the wife after words *' children or any other per soji" — which are copied mairiage, by the above section, from a former (2) act. And where a above deed, by which the bankrupt conveyed his real estate to section, trustees for the benefit of his wife and children, was ex- pressed to be made "in consideration of 5s. and other valuable considerations^^ — Lord Hardwicke said, that this (l) These words were not in 1 Bro. 160. Glaister v. Hewer, the 1 Jac. 1. c. 15. S.5., fromwhich 8 Ves. 195. 9 Ves. 12. llVes.377.) this section is taken, and which though it was, of course, necessary, appHed to all cases of a convey- as it is now, that he should have ance without consideration, whe- been then a trader. Crisp v. Pratt, ther the bankrupt was insolvent Cro. Car. 548. Lilly v. Osborne, or not at the time. So that, before 3 P. Wms. 298. ; and see Picklock the present statute, in order to v. Lyster, 2 M. &S. 371. Goss make a transaction of this kind v. Neale, 5 Moore, 1 9. void against creditors, it was not (2) 1 Jac. 1. c. 15. s. 5. Tucker essential, that the party making the v. Cosh, Styles, 288. Glaister v. conveyance should have been in- Hciver, 8 Ves. 195. 9 Ves. 12. debted at the time ; {Fryer v. Flood, 1 1 Ves. 377. 366 OF THE ASSIGNMENT [Ch.ll.Pt.l. Volwitary convey- Deetlmade by execu- trix to ceS' tui qtie trusts, when cood. Convey- ance made when party not in- debted, not frau- dulent. Voluntary convey- ance good, except against creditors. did not oblige the Court to bold it, at all events, to be for a valuable consideration, — and could at most only admit the party into proof, that there were other valuable consider- ations ; and he decreed that the trustees, in this case, should convey to the assignees (1) of the bankrupt. Where a deed was made by an executrix before an act of bankruptcy, for securing out of the trust monies (in her hands at the time of the deed) the fortunes of the cesitci que trusts, — it was held good against creditors. (2) But where an administrator executed a conveyance to two persons, for the payment of 1500Z. each (given to them by the in- testate) it was held fraudulent as against creditors, — unless it could be proved, that the administrator had assets in his hands belonging to the intestate, at the time of executing the conveyance. (3) If a trader make a voluntary conveyance, in consider- ation of natural affection, and he be not indebted at the time to any person, nor in treaty with any one for the sale of the lands conveyed, — such a conveyance, it has been held, would have no badge of fraud about it ; but if the party be indebted, or in treaty at the time for the sale of the lands, it would then be considered fraudulent. (4) A conveyance, also, made to secure the debt of another person, is not fraudulent against creditors. Therefore, where a father, at the request of his son, executed a mortgage to secure a debt due from the son to the mortgagee, — the Vice-Chancellor held, that this was not a voluntary conveyance without consideration. (5) A voluntary conveyance, though void as against the creditors of a bankrupt, has been holden good for all other purposes. (6) And a voluntary bond, being valid as be- tween the parties, when it is surrendered by the obligee for a substituted bond from the obligor, has been deter- mined to be a good consideration for such substituted (1) Walkerv. Burrows, 1 Atk. 93. (2) Cock V. Goodfellow, 10 Mod. 490. (3) Bateman's case, 1 Mod. 76. (4) Style, 446. (5) Ex parte Hcarn, Buck. 165. (C) Ex parte Bell, 1 G. & J. 282. Sect. 10.] AS TO THE REAL ESTATE. 367 bond, even against creditors, — unless, indeed, the bond was given with a fraudulent design to substitute a valid, for an invalid, security. (1) nees. Section X. Of an executortj or heneficial Contract. There is some difficulty (from a review of the cases in Whether the books) in determining what interest the assignees take ^ ^''^^" in a covenant, or agreement, entered mto by a lessor with renew or the bankrupt for the renewal, or the granting, of a lease. p'^"t a In one case, it was held, that the assignees were not entitled passes to to the specific performance of such an agreement (2) But the assig- this appears to have been decided principally upon the authority of another case, which has been since very much impugned, — and in the report of which there are indeed two wholly contradictory statements. In one of these (3), it is laid down, that equity will not compel a lessor, who had covenanted with a bankrupt to renew a lease, to renew in favour of the assignees ; and in another report of the same case (4), it is stated to have been holden, that such a covenant x I ' » ' ^ execution the assignees applied to take the money out of court, — it in tort. was held, in one of the old cases, that the assignees were, under these circumstances, not entided to the money ; on the ground, of its being in custodid legis, and there- fore not assignable — and that as it was levied by re- cord, it could only be delivered to him who was able to acknowledge satisfaction of record, which the assignees (being strangers to the record) could not do; the money was therefore ordered to be delivered to the bankrupt. (2) But in another case, under similar circumstances, the Mode of Court, though they refused to order the money to be paid P'"oceea- over to the assignees, consented nevertheless to detain it, recover it, in order that the assignees might take out a scire facias against the defendant to try the bankruptcy. (3) And this, indeed, appears to be the more regular course of proceed- ing, whether the sheriff brings the money into court, or retains it in his hands (4); though in one case, where the bankrupt had obtained judgment on a scire facias, the Court, upon motion, ordered the judgment to be entered, so as to entitle the assignees to the benefit of it, without bringing a new sci. fa. (5) As several subsequent cases, . (1) Evans's B.L. 14. 4 Evans's (s) Monk v. Morris, Yentr. 193. Stats. 329. 1 Mod. 93. (2) Ben$07i V. Flower, Cro.Car. (4) See post, "Actions," ch. 17. 166.176. Sir W.Jones, 215. s. 3. (5) Plumvier v. Lea, 5 Mod. 88. c c 2 388 OF THE ASSIGNMENT [Cll.ll. Pt.2. Choses ill action. Partner- ship pre- mium pay- able by instal- ment. Compen- sation under Westlndia Dock Act. Good-will of a busi- ness, if as- signed by assignees, not bind- ing upon the bank- rupt. however, have determined that a party, who is entitied ta receive money levied by a sheriff, may bring an action against hira for not paying it over, it seems that the as- signees might (if the sheriff retained money in his hands which he had levied under the bankrupt's execution) recover it from him in an action for money had and received. ( 1 ) A trader having agreed, in consideration of a sum pay- able by instalments, to take two persons into partnership with him for a period of eighteen years, became bankrupt five years after the commencement of the partnership, when only one instalment was due : — the Court held, that his assignees were, nevertheless, entitled at the respective periods to receive the remaining instalments. (2) Where covipensatioyi was given by the legislature to the proprietors of ancient quays, upon the establishment of the West India Docks, Lord Eldon decided, that this was an interest capable of disposition, and consequently passed to the assignees. (3) The subject matter in this case was a specific vested pecuniary interest, and there could, there- fore, be no doubt entertained that it was comprehended within the terms of the Bankrupt acts. But, with respect to what is called the good-will of a business — that is, a compensation given to a trader for declining trade and recommending another as his suc- cessor, he himself engaging not to carry on the same business within certain limits, — Sir W. Evans very justly observes, it is impossible to suppose, that the assignees of a bankrupt can compel him to enter into similar stipulations, for a consideration to be paid to themselves. (4) And his reasoning derives great weight from what was said by Lord Eldon in a case, where the assignees of a bankrupt (who was a carrier) had sold to a plaintiff the premises (1) Speakev. Richards, 2 Show. 289. Dale V. Birch, 5 Camp. 547. Longdill V. Jones, 1 Star. 345. (2) Akhurst \. Jackson, 1 Swanst. 85. Wils. Ch.Rep.4T. (o) Chandler v. Gardiner, cit, 17 Ves.338. 343. (4) Evans's B. L. 20. Sect. 2.] AS TO PERSONAL PROPERTY. 389- which the bankrupt had occupied, as well as the carrying Chosen in business, in these terms : " and also the good-'will of a " ^ '""' long established, trade, S,-c. ,-" and, the bankrupt having resumed the Hke business in the same district, the Lord Chancellor refused to grant an injunction to prevent him from so doing, — observing, that the good-will, which was the subject of sale, was nothing more than the ^);o- hahility that the old customers would resort to the old place ; and that by interposing in this particular instance, he should carry the effect of injunction to a much greater length, than any decision had authorized, or imagination ever suggested. ( 1 ) It has, however, been decided that the right of publish- Copyright ing' a particular newspaper was a property affected bv the "^"^"'^- Bankrupt law (2); and Lord Mansfield is also reported to signable. have held, that what is called a news-iaalk, that is, the business of selling newspapers to particular customers within a given beat, was likewise a property disti'ibutable under a commission of bankrupt. (3) But the authority of this last case (as far as it implies any obligation on the bankrupt) is much shaken by the above decision of Lord Eldon in Crutwell v. Li/e, as well as the forcible reasoning of Sir W. Evans (4), in his comment on the former statutes relating to bankrupts. A patent right for the exclusive exercise of an invention, A patent though obtained from the crown by the bankrupt after his "^ ' ^^^^^ o "^ _ r m assig- bankruptcy, but before he procures his certificate, is nees. affected by the previous assignment of the commissioners, and also vests in the assignees. (5) So, a jpolicij of insurance,) effected by the bankrupt upon So a po- his own life at an annual premium, passes to his assignees; '^^ ° '"' ^ * n ' surancc on the bank- (1) CruUvell V. Lye, 1 7 Ves. 355. (.3) 2 N. R. 70. '^"P^''' 'i^^. 1 Rose, 123. , (4) Evans's Bankrupt Statutes, (2) Longman v. Tripp, 2 N. R. page 19. note ( 10). 67.; and see Hogg v. Kirby, 8 Ves. (5) Hcsi,e v. Stevenson, 3 B. & P. 1 25.; and CooA-e v. Calcraft, 3 Wils, 565. 580. as to the general interest in such property. c c S 390 OF THE ASSIGNMENT [Ch.ll.Pt.2. action. and where, instead of delivering it up as part of his effects, a bankrupt secretly assigned it to another person, who paid the arrears of the premium, and upon the death of the bank- rupt received the sum insured, — the amount, deducting the arrears so paid, was held to be recoverable by the assignees as money had and received to their use. (1) A lease passes to assignees, though containing a general proviso not to assign. Aliter, if proviso to re-enter, if lessee is found a bankrupt. Section III. Of Leases and Annuities, and herein of Forfeiture upon Alienation. A Lease granted to a bankrupt passes to his assignees, although it contain a proviso that the lessee shall not assign without the lessor's consent; for the interest in the lease is considered to vest in the assignees by oper- ation of law (2), and not by the act of the furty, (that is, the voluntary assignment of the lessee) to which last mode of transfer a restriction of this nature is alone confined. (3) But a lease, with a proviso that the land- lord might re-enter, if the lessee should " commit an act of bankruptcy whereon a commission should issue, and he should be found, a bankritpt," does not pass to the assignees (4') ; for this is a condition annexed to the demise itself, and renders the term void, in case the lessee becomes a bankrupt. The owner of property, indeed, cannot by contract, or otherwise, qualify his own ittterestf by a con- dition determining or controlling it in the event of his bank- ruptcy, to the prejudice of his creditors, (as has been already fully considered in the case of marriage settlements) ; but a lessor, like any other grantor or alienor, may qualify (1) Schondler\. IVace, I Camp, (5) Ex parte Baglehole, 1 Rose, 487. 432. Ex parte Sherman, Buck, (2) Goring \. Warner, ^'E<\.Ca. 462, Ab. 100. 7 Vin, Ab. 85. Philpot v. (4) Roe v, Galliers, 2 T. R. 133,j J/oa!;-e, Amb.480. 2Atk,219, Doe and see 15 Ves, 268. v, Bevan, .3 M, & S. 353. Doe v. Bugbt/, 3 Wils. 234. Sect. 3.] AS TO PERSONAL PROPERTY. 391 the interest of Jiis lessee, upon a condition to take effect on AunuUies. the bankruptcy of the lessee. (1) So, where the term is made to depend upon the actual , where the terni occupation of the premises by the lessee, the assignees have, depends in this case, not such an interest as they can assign, if the "P^" ^'^ , , , , . . actual oc- bankrupt does not contmue to occupy. (2) cupation. In like manner where an annuity was given by will Conflict- to a trader " payable to Jtim only, upon his own re- 'P? .^' \ .' , sions in ceipt and no other, and to cease immediately upon alien- the case of ation^^ — it was held, that it ceased upon his bankruptcy, j^." pnnuity and the bargain and sale of his estate. (3) So, where personal there was a bequest to pay an annuity to A., with a proviso enjoyment. that if by any ways or means whatsoever he should sell, dispose of, or incumber his life-interest, or any part thereof, his interest should then cease, and the trustees should apply and determine the same for the benefit of his chil- dren, — it was held, that upon his bankruptcy the annuity ceased to be the subject of his personal enjoyment, and did not, therefore, vest in his assignees ; but that his children were entitled to it. (4) But where a testator directed, that his estate and effects should be laid out in the public funds in the names of trustees, who were to " pay the dividends from time to time into his son's hands, or to his order, and on his re- ceipt, to the intent that the same, or any part thereof, should not be grantable, or assignable, by way of anticipation," — Lord Eldon held, that on the bankruptcy of the son, his assignees were entitled to his interest under the will. (5) And in another case, where the testator bequeathed several annuities, and (amongst the rest) one to the bankrupt, and declared that " if any of the annuitants should assign, or dispose of, or otherwise charge or incumber his annuity, so {l)Wilson\.Greeniuood,\^svan?,t. (3) Dommett v, Bedford, 6 T. 481.; and see per Lord EUenbo- R. 684. oVes. 149. rough, 3 M. & S. 357. (4) Cooper v. Wt/att, 5 Mad. 48.5. (2) Doe V. Clarlic, 8 East, 185. (5) Brandon v. Robinson, 1 Rose, 197. C C 4 392 OF THE ASSIGNMENT [Ch.ll.Pt.^; Amiuities. as not to be entitled to the personal receipt, use, and en- joyment thereof, the annuity should thenceforth cease, de- termine, and be void, and should immediately devolve upon the person next entitled, by virtue of the limitations in the Avill," — Sir W. Grant, upon the principle of the above decisions as to leases, in which an assignment bjj operation of laiv is holden not to be an alienation of the party, con- sidered that the interest had not ceased by the bankruptcy, but that it vested in the assignees. ( 1 ) Though, in another case, where the annuitant had taken the benefit of the insolvefit act, the same learned Judge held, that a condition of this nature was broken by the annuitant, inasmuch as the signhig the petition and schedule were clearly acts of alienation committed by the insolvent. (2) Observ- These decisions of Brandon v. Robiyison and Wilkinson a ions. ^^ JVilkinson are, certainly, quite at variance with those of Dominett v. Bedford and Cooper v. Wyatt. The grounds of Lord Eldon's judgment in Braiidon v. Robinson are, that there is a great difference between giving an interest to a person while he shall remain solvent, and then over, — and giving it gcncrallij for life ; and that it is not enough for a testator to say the fund shall not be transferred, — but that in order to prevent that, it must be given over to somebody else, or made to fall into the residue of his property ; other- wise, it becomes an equitable interest to which the assignees are entitled. (3) This reasoning, however, will not apply to the case before Sir W. Grant, where the annuity isoas given over, being made to devolve upon the person next entitled under the will ; and the limitation is also strong as to the personal e)]joj/jnetit of the annuity by the annuitant. Whether a grantor, therefore, of an annuity, can effectually limit his grant to the period only of the solvency, or per- sonal enjoyment, of the annuitant, unaccompanied with any (1) Wilkinson v. Wilkinson, G. and see Holijland v, De Mendez^ Coop. 259. 3 Meriv. 184. (2) Shee V. Hale, 15 Ves. 404.; (.3) 1 Rose, 197. Sect. 3.] AS TO PEnSON-AL PROPEnTY. 393 limitation over in ease of insolvency, &c., so as to prevent Leases. it from passing to the assignees under a commission of bankrupt, — is a question, which may still admit of very considerable doubt. The general assignment of a bankrupt's estate does not Assign- vest a lease or term of years in the assignees, unless they J^oJ'yest^a do some act to manifest their assent to the assignment, as lease in it regards the term, and their acceptance of the lease. (1) ^"^^^'''S- For they are not bound (as has been before observed (2) ) unless they to take all the property of tlie bankrupt, but may reject 1'^!^"^*^° such as may be rather a burthen than a benefit to the term, estate. Before the case of Copcland v. Stephens^ however, it was a point still undecided, whether the bankrupt's interest in a lease passed immediatehj to the assignees, de- feasible upon their actual refusal to take it, — or, whether the interest in it was suspended until their acceptance or rejection of it. In an able judgment pronounced by Lord Ellenborough in that case, it was determined, that the effect of the ^Lssignment vf?LS suspended, until the assignees decided either to accept, or reject, the lease ; and that the estate re- maificd in the bankrupt during the 2)ertod qfstispension, — but subject to the i-ight of the assignees to have the term, by their subsequent acceptance of it, — and thereby to vest it in themselves. (3) "What acts on the part of the assignees will amount to an Cases of acceptance of the lease, and what to a rejection, will be accept- best explained by the following cases. rejection, A landlord applied to the assignee to know, if he meant What to take the bankrupt's interest in the lease, and he an- amounts swered, that if he did not let it by Lady-day, he would l°ic''e'!'^^^^ give it up ; and at Lady-day the assignee paid the rent then due, and offered the landlord the key : — under these cir- cumstances, Lord Kenyon held, that though the assignee might have refused it at first, yet he could not take it in part, and afterwards reject it, when he found that it would not (l) Coj)eland v. Stephens^ 1 B. & (2) Ante, 320. A. 593. (5) 1 15. & A. 593. 394 OF THE ASSIGNMETJT [Cll. 1 1. Pt.2. Leases. answer and he could not let the premises. (1) So, where the assignees, who were chosen on the Sth July, allowed the bankrupt's cows to remain on the demised lands till the 10/A, and ordered them to be milked there, — Lord Ellen- borough decided, that they thereby became tenants to the lessor; and, the cows being removed on the 10th to avoid a distress for arrears of rent, it was held, that the landlord had a right to follow and distrain them under the 11 G. 2. c. 19. (2) So, if assignees intermeddle with, and assume the management of a farm, this is a sufficient election to take to the term (3), and renders them liable to the land- lord. So, also, where assignees entered upon, and took actual possession of the leasehold property, they were held to become chargeable with the covenants in the lease, although the bankrupt's effects were upon those premises, and the assignees delivered up the keys immediately after the effects were sold ; for, if they had wished to curtail the full legal effect of taking possession of the premises, they should have entered with a protest, that their entry was not for the purpose of possessing themselves of the premises as assignees, but merely to take possession of the goods. (4) And, when the assignees permitted the bankrupt to continue in possession of the premises, from the period of his bank- ruptcy in 'November until April, and to carry on the trade for the benefit of the estate, the assignees inspecting the books, and furnishing the bankrupt with money, — it was held, that they could not afterwards disclaim to accept the lease, notwithstanding a notice to that effect had been given by them within a month after the bankruptcy. (5) So, where the bankrupt having a lease of premises, and also a reversionary interest in them, the assignees sold " all his estate and reversionary interest in the premises," — this was held to (1) Broome v. Robinson, cit. (4) Hanson v. Stevenson, 1 B. & 7 East, 339. A. 503. (2) Welch V. Myers, 4 Camp. (5) Clark v. Hume, 1 Ryan & 568. M. 207. (3) Thomasw. Pe7nberlon, iTaunt. 201. Sect. 3.] AS TO PERSONAL PROPERTY. 395 amount to an acceptance of the lease. (1) And so, where Leases. the assignees placed a board upon some part of the pre- mises, with a view to dispose of them, they were holden liable in use and occupation for a year's rent. (2) Where assignees, also, upon being required to give up possession of premises, answered that it was not consistent with their duty so to do, — this was held sufficient proof of possession by them, in an action of ejectment brought against them for the recovery of the premises. But though the assignees, by accepting a lease, discharge Assignees the bankrupt from any claims for rent, and render them- fiL;"ij° selves liable to the landlord, yet they may assign it, if they bility by choose, to any person (even though an insolvent) in order ^^^^g"'"?- to get rid of their liability. (3) And the assignees are not bound to take a lease, merely What acts because they endeavour to sell it, with a view to ascertain ° ""^^ 1 -111 • , ,. amount to Its value, — provided they exercise no other acts or^owner- an accept- ship over the premises demised. Thus, where assignees ^"*^^* advertised a lease for sale by auction (without stating them- selves to be the owners, or possessed of it), and never, in fact, took possession of the premises, and no bidder offered at the auction, — it was held, that this was no more than an experiment to ascertain the value, and whether the lease was beneficial or not to the creditors, — and did not amount to an assent to take it. (4) If, indeed, a bidder had been found, and the assignees had accepted the bid- ding, and received a deposit, then that would have been evidence of their assent to take to the premises, notwith- standing the contract of sale might have afterwards gone off". (5) So, where assignees allowed the bankrupt's effects to remain on the premises for nearly a twelvemonth after the bankruptcy, and then, to avoid a distress, paid the rent due, at the same time intimating to the landlord that (1) Page V. Godden, 2 Star. 509. (4) Turner v. Richardson, 7 East, (2) Gibson v. Courthope, 1 D. & 355. R.205. (5) Hastings v. Wilson, 1 Holt, (3) Onslow V. Corrie, 2 Mad. 330. N. P. Rep. 290, 396 OF THE ASSIGNMENT [Ch.ll. Pt.2. Leases. Assignees may be compelled to elect. ^Extent of the Chan- cellor's ju- i'isdiction in this respect. they did not mean to take to the lease, unless it could be advantageously disposed of — and the lease was soon after- wards put up to sale by order of the assignees, but there was no bidder for it, and they even omitted to return the key to the landlord for near four months afterwards, but never took actual possession of the premises, — Lord El- lenborough held, that the assignees were not, under these circumstances, liable to the landlord as assignees of the lease. ( 1 ) And so, where the bankrupt had underlet part of the demised premises, and the assignees released the under-tenant, and on being afterwards asked by the lessor to elect, they refused to take the lease, — it was held, that the release to the under-tenant did not amount to an acceptance. (2) But now, in order to prevent any inconvenience to the landlord, from the neglect of the assignees to determine whether they will take to the lease or not, it is by the 75ih section of the new act provided, that if the assignees shall not (upon being thereto required) elect, whether they will accept or decline any lease, or agreement for a lease, to which the bankrupt was entitled, the lessor, or person so agreeing to grant a lease, or any person entitled under them, may apply by petition to the Lord Chancellor; who may order them so to elect, and to deliver up such lease, or agreement, (in case they shall decline it,) as well as the possession of the premises, — or may make such other order therein as he shall think fit. ('^) The above clause, it has been held, applies only to cases between the lessor and lessee, or the assignee of the lessee ; and not to cases between the lessee and the assignee of the lease. (4) The Lord Chancellor is not empowered under this section to determine the question, whether the assignees have elected to take the lease or not, — but can only send such (1) Wheeler v. Bramah, 5 Camp. 340. (2) Hill V. Dobie, 2 Moore, 342, 8 Taunt. 325. (j) This clause is taken from the 49 G.5. c. 121. s. 19. (4) Taylor V. Young, 3 B. & A. 521. Sect. 3.] AS TO PERSONAL PROPERTY. 397 a question to be tried by a jury (1) ; for he has only autho- Leases. rity, under the above provision, to make an order that the assignees shall elect. It is only, in fact, when assignees will not decide, that jurisdiction is given to the Lord Chan- cellor ; for if they have already accepted, or rejected, he has no jurisdiction. (2) Therefore, where assignees had previously rejected a lease, a petition by the lessor for pay- ment of rent due after the bankruptcy, and for a com- pensation for hay and straw which the assignees had carried off the premises, was dismissed (3) ; Lord Eldon concurring with the Vice-Chancellor, that, as between the lessor and the assignees of a bankrupt lessee, the Court had not jurisdiction — except in cases under the statute — and upon petitions for an injunction; for which the petition in this case contained no prayer. Upon a petition for an order on the assignees to elect, Assignees they will be allowed a reasonable time — such as ten days, reasonaWe for instance — to consider what will be most beneficial for time to the creditors. (4) And in a case where there were two ^ ^'^ ' commissions, and issues directed which were still un- decided, — the Court granted an order (under each com- mission) on the assignees, to make an election to depend on the result. (5) Where the assignees declined taking the lease, but in- Bound by sisted that they were entitled to remove from the premises *^"^ ^^o^^- all the hay, straw, &c. (which, by a covenant in the lease, lessee, as the lessee at the end, or sooner determination of the term, ^° leaving • \ T 1 T-i 1 1 -1 "ayj straw, was to leave upon the premises), — Lord Lldon determmed &c. the lease, and directed a case upon the construction of the covenant. (6) Upon the argument of this case before the Court of King's Bench, it was decided, that the assignees (1) Ex parte Qjiantock, Buck, (6) Ex parte iV/xow, lRose,445. 189. This case at first sight appears to (2) Mad. 77. clash with the decision in ex parte (3) Ex parte Wat-wick, Buck. Warwick, supra; but the distinc- 326. tion between them is, that in this (4) Ex parte Scoti, 1 Rose, 446. case there was a prayer for an note (a). injunction; in that case there was (5) Ex parte Pomeroy, 1 Rose, no such prayer. 57. 398 or THE ASSIGNMENT [Ch.ll. Ft. 2. Leases. When en- titled to off-going crops. Parol agreement for a lease, not within the sta- tute. Where the lease in the hands of a third per- son. were bound by the covenant of the lessee, and were not entitled to the hay, straw, &c. (1) In all these cases, indeed, where the Lord Chancellor determines the lease upon the petition of the lessor, the assignees are in the same situation, as the tenant would have been in by effluxion of time. Therefore, where a lease contained a covenant, that the lessee " at the expiration, or other sooner deter' niinatioti of the lease," might take the off-going crop — and the lease was determined by the Chancellor after the bank- ruptcy of the lessee, — the assignees were held to be en- titled (2) to the off-going crops. Nor does it make any difference, that the lease is only from year to year, deter- minahle on giving half a yearns notice, and the covenant is to leave the hay, &c., or take the crops, on quitting the pre- mises (3); for the election of the assignees, not to take the lease, has the same effect (with reference to the covenant), as though the lessee had quitted upon notice. A ^jaro/ agreement for a lease, (although brought within the principle, upon which a court of equity would decree a specific performance, upon acts of part performance) it has been held, is not an agreement within the meaning of the statute, — so as to put assignees to elect, or reject, such agreement. (4) Where the lease had been deposited by the bankrupt with a THIRD PERSON, as a security for a debt, and the assignees refused to take to the term, — upon a petition by the landlord that the assignees might deliver it up, as well as the possession of the premises, an order to that effect was made. For though the statute does not in words extend to cases, where the lease is in the hands of a third perso7i, yet it seems that, by an equitable construction of the above section of the act, which is intended for the benefit of landlords, the Chancellor has such a jurisdiction. (5) (1) In re Govgh, Buck, s 5. (4) Ex parte Sutton, 2 Rose, (2) Ex parte Maundrell, Buck, 148. 85. (5) Ex parte Clunes, 1 Mad. 76. (5) Ex parte JVkittingtoji, Buck, Sect. 4.] AS TO PERSONAL PROPERTY. 399 Section IV. Of Property Abroad. As the statute enables the commissioners to assign the Personal bankrupt's property, wheresoever the same may he found or abroad^ hwian{\\ the assignees are entitled to all the personal passes to property, which the bankrupt may possess in 2iny foreign ^^^^S"^^^ country, unless there happens to be some positive law of that country to prevent it. For persoiial property, accord- ing to the general principles of all laws, has no visible locality, but is subject to that particular law, which governs the person of the owner. (2) If the Bankrupt law, in- deed, was circumscribed by the local situation of the property, a door would be open to all the partiality of un- due preference, which it is framed chiefly to prevent; for it is not very difficult to foresee, how frequently property would be sent abroad with that unjust view, immediately previous to and in contemplation of an act of bankruptcy. But the consequence of the rule, as it at present applies to personal property, is, that a commission of bankruptcy followed by an assignment, defeats all preference attempted to be obtained by any one creditor, through the medium of the law of the country where any of the bankrupt's effects may happen to be placed — (as well as by any volun- tary conveyance of the bankrupt) — after the period, when the legal effect of the bankruptcy attaches to the general estate. Thus, the bankrupt's goods in Ireland will pass to the Property assignees by the assignment from the commissioners, and ^" Ireland, the Irish courts will also take notice of our laws, so as to prevent a creditor from attaching property there after the commission, and gaining a preference (3) over the as- signees. So, the courts in Scotland, and the colonies, Scotl.ind. (1) &ciio» 63. ante, page 383. (3) Good, 114. Nealev. Cotting- (2) SUlv. Worswick, 1 H. B.665. ham, 1 H. B. 132. in note. 400 OF THE ASSIGNMENT [CIl. 1 1. Pt.2. Property abroad. Where a creditor attaching money abroad, liable to refund to When not so liable. recognize the English law in this respect. For, where bankrupts here had carried on business both in London and in Scotland, under distinct firms, the Court of Session in Scotland held, that the commission here vested in the assignees all the property of the bankrupts wherever situate, — precluding creditors in Scotland, from attaching by sequestration such parts of the bankrupts' property, as remained, or was situate, in that country. (1) Whether a commission in England, or a sequestration in Scotland, is to be preferred, as the mode of administering the effects of a bankrupt, depends upon their respective priorities. (2) Where, after the assignment of a bankrupt's estate, a creditor residing in England, who had notice of the bankruptcy and assignment, attached the money of the bankrupt abroad, — it was held, that his assignees might recover it against the creditor in an action for money had and received. (3) And in another case, where the attach- ment was before the assignment, the same doctrine was held. (4) In one case indeed of this kind. Lord Hardwicke even granted a writ of ne exeat regno against a creditor, who before the bankruptcy had gone into Scotland, and made arrestments on debts due to the bankrupt there, though he had not obtained sentence — saying, that the case was like a foreign attachment, by which a creditor was not suffered to gain a prioi'ity. (5) But in a case, where the bankrupt was one of several partners — his partners carrying on a branch of the business in the West Indies — and a joint creditor there attached property belonging to the firm abroad, — it w^as (1 ) Bank of Scotland v. Cidhbert, 1 Rose, 462.; and see Sellaig v. Davis, 2 Dow. Rep. 230, 2 Rose, 291. and Odiuin v. Forbes, Buck, 57. (2) Ibid. (3) Hunter v. Potts, 4 T. R. 1 82. Philips V. Hunter, 2 H. B. 402. The law upon this subject, however, jiji- pears to have been formerly laid down differently by Lord Mansfield, both at Nisi Prius, and at the Cock- pit. ( Waring v. Knight, I C.B.L. 300. C/eve v. Mills, ibid. 297.) See also a powerful judgment of Eyre C. J. on that side the question, in Philips v. Hunter, 2 H. B. 409. (4) Sill\. Worswick, 1 H.B. 665. (5) M'Litosh V. OgUvie, 4T. R. 187. note (a). Sect. 4,] AS TO PERSONAL PROPERTY. 401 held by Sir W. Grant, that he was entitled to retain what Property he had recovered, to the extent of satisfying his joint "^ debt. (1) And where the attachment of property in a foreign country is complete before the act of bankruptcy, the creditor is then, of course, entitled to hold the property attached against the assignees, in satisfaction or reduction of his debt. (2) Whenever, also, property has been duly recovered by a creditor from the bankrupt's debtor, by process of local law, the assignees are not entitled to claim the value of it again, as against such debtor. (3) A., a merchant at Paris, purchased in his own name, but with the money and on the account of B. (a merchant at Bristol) certain bank shares in the French funds ; and B. afterwards drew bills on A., which A. accepted, on the security of those shares standing in his name ; three of which bills were purchased by C. (a British subject) for a valuable consideration paid to B. Before the bills became due, B. authorised A. by letter to sell the bank shares, in order to reimburse himself against these bills; but previous to the arrival of that letter, A. had stopped payment, — and the bills were dishonoured. B., also, afterwards became bankrupt ; and C. then, by process according to the French law, attached the bank shares (still standing in the name of A.) for the debt due to him as the holder of the bills ; and the French court decreed, that the bank shares should be sold, and that the proceeds should be applied, first to pay a debt due from B. to A., and afterwards to retire the bills; — and C, under this decree, received a certain sum of money on account of the bills. Under these circum- stances it was held, that the assignees of B. could not recover back this money, as money belonging to B. ; for that A. had more than a simple lien on the bank shares, {\) Bnckwoodv.MilleryZM.evi\. ceived a completely satisfactory 279. Sir W. Grant expressed a answer. doubt in this case, whether the (2) Ex parte jD'Oire-e. Ex parte reasoning of Lord C. J. Eyre, in Le Mesiirier, 8 Ves. 82, Philips V. Hunter, has ever re- (3) Le Chevalier v. Lynch, Doug. 1 70. D D 402 OF THE ASSIGNMENT [Ch.ll. Pt.2'. Properti/ abroad. Courts here will favour the claims of foreiffn they being in law his property ^ and vested in him — though in trust for B., after satisfying his own lien. (1) Upon the same principle, as the courts here refuse to acknowledge the validity of an attachment made by a creditor on the bankrupt's property abroad, which may give him an undue preference over the otlier creditors, — so the English courts will equally give effect to the claim of Foreign assignees, (when the laws of the Foreign country ai'e proved) in the recovery of personal property here; — and will prevent a creditor from obtaining an exclusive satisfaction out of such property, to the prejudice of the Foreign assignees. (2) Section V. Of Property in the Possession, Order, or Disposition of the JBanlcrupt, as 7'eputed Oxvticr. 1. What things are tjoithifi the Statute. 2. PVhat Possession is '■joithin the Statute. 3. Possession as Factor, Banker, or Broker. 4. Possession as Trustee, Executor, or Adtninistrator. By section 72. of the new statute, it is enacted (3), that if any bankrupt at the time he becomes bankrupt shall, by the consent and permission of the true owner thereof, have in his possession, order, or disposition, any goods or chattels, whereof he was reputed owner, or whereof he had taken upon himself the sale, alteration, or disposition, as owner, the commissioners shall have power to sell and dispose of the same for the benefit of the creditors under the commission. But any transfer or assignment of any (1) Cazenove v. Prevost, 5 B. & (a). Jollei v. Deponthieu, ibid. A. 70. 1 32. note. (2) Sill^. Worswick, 1 H.B.691. (3) This section is taken from Solomons V. Koss, ibid. I.'jI. note the 21 .lac. 1. c. 19. s. 10, 11. Sect. 5.] AS TO rEnsoNAL property. 408 ship or vessel, or any share thereof, made as a security for Reputed any debt, either by way of mortgage ( 1 ) or assignment, ° ^"'^'^"P ' duly registered according to the provisions of the new register act, (4 Geo. 4. c. 41. s. 44.) is not to be invalidated, or affected, by this enactment. Atid, Isi, as to "jcJiat things arc isoithin the Statute. The object of the above enactment is to remedy the mischief arising from a trader holding out a delusive re- sponsibility to the world, by appearing to be possessed of a stock in trade, or of other valuable articles, which are the subjects of sale and immediate transfer. The goods and On\y per- chattels, therefore, comprehended within the meaning of the ^°| ^ ' statute, must be taken to mean perso7ial chattels, and not to comprise chattels real. For the 2^ossession, and power of disposing^ of goods and personal chattels, are the only evi- dences of ownership, to which persons dealing with traders generally look ; but with respect to real property, the fact of mere possession is not such evidence of ownership, as to induce a creditor to rely on it; — it being a matter of notoriety, that real estates are frequently mortgaged, and that the mortgagor usually remains in possession of the property. (2) No creditor, therefore, can with reason say, that he has been deceived by the bankrupt's possession of property of that description. For this reason, Jixtures^ and things affixed to the free- Not fix- hold, that are mortgaged with the premises to which they tures, &c. belong (3); or even shares in a public company, whose funds arise from the rents, or tolls, issuing out of real estate (4), are not within the above enactment. But move- (l) A mortgagee of a ship was (2) Ryal v. Rolle, 1 Atk. 16s. not formerly so protected. Ste- 1 Ves. 548. phens y. Sole, 1 Ves. 352. Hay v. (5) 1 Atk. 176. Hornv, Baker, Fairbairn, 2 B. & A. 193. Monk- 9 East, 215. house V. Hay, 2 B. & B. 114. (4) Ex parte Vauxhall Bridge 4 Moore, 57. 8 Price, 256. Kirk- Company, 1 G. & J. 131. ley V. Hodgson, 1 B. & C. 588. D D 2 404 OF THE ASSIGNMENT [Ch.ll.Pt.2' Reputed oivnershij). Alith, moveable utensils, unless let by usage. able utensils not fixed to the freehold, such as a brewer's or distiller'' s vats {!), or a di/er's pla?if (2), will be affected by- it; unless, indeed, they are utensils of a particular trade, in which there is a well-hncnson usage for the trader to have those utensils let to him on hire — the possession of them in that case not imposing on the world a false appearance of property in the possessor (3) — as in the manufacturing counties, where it is a common practice for the working hosiers, spinners, and w^eavers to have on hire the posses- sion of stocking-frames^ and other valuable machines, which they are unable to purchase. And the same exception, perhaps, will be found to apply to the case of job horses, and carriages, which it is a well-known practice to have on hire. (4) So, where a colliery was demised to the bank- rupt, with certain engines, machinery, and implements, which were to be rendered up to the lessor at the ex- piration, or other sooner determination, of the lease — and, the tenant failing in the payment of the rent, the lease became forfeited, and the landlord recovered a judgment in ejectment, but did not execute the writ of possession until the day before the tenant became bankrupt, — it was held, that the tenant never had under this demise the pos- session, order, or disposition of the engines and machinery within the meaning of the 21 Jac. 1. c. 19. s. 10. (from which statute the above section is taken), but a mere qualified right to use them during the term ; and that, even if they had been in his possession within the meaning of the statute, they would have ceased to be so, when the land- lord resumed possession by executing the writ of inquiry. Neither was the tenant considered to have such order and disposition of them, though he continued to work the col- liery, and have the use of them during the intermediate (1) 9 East, 215. (2) Brmon v. Wylic, 1 B. & P. 85. note (a). 1 C. B. L. 234. Ex parte Dale, Buck, Z%5. Lingard V. Messiter, 1 B. «& C. 308. (3) Per Le Blanc J. 9 East, 244. ; and see Storcr v. Hunter, 5 B. & C. 568. (4) Per Lawrence J. 3 Taunt. 490. action. Sect. 5.] AS TO PERSONAL PROPERTY. 405 time, between the recovery of the judgment in ejectment, ^<^pu(cd and the execution of the writ of possession — a period of _^_[^/^- fifteen months. (1) All choses m action [2) are within the enactment; as Chosesin shares in a public company (3), bills of exchange ("i), and policies of insurance (5), — as well as a share in a news- paper (6), stock in the public funds (7), and a patent for an invention. (8) 2. What PossessioJi is within the Statute. As to what possession will constitute a case of reputed ownership, within the meaning of the above enactment, that is a question more o^fact, than of Iww, — and, as such, pe- culiarly within the province of a jury to determine. (9) The Possession possession of property is, of course, prima facie evidence of ^™"" . . facie evi- reputed ownership ; and more or less strong, according to dence. the circumstances under which that possession was ac- quired, or is retained. The possession, however, must be acquired before the act of ha^ikruptcx)^ in order to constitute a possession within the meaning of the statute. When a bankrupt has once been the ostensible oioncr of Still property, and he continues in the visible possession of it at ^*J'°"gei", the time of his bankruptcy, — that is a very strong case of bankrupt reputed ownership ; and can only be rebutted by clear ^^^ °''^^ proof, not only that there has been a transfer of the pro- owner, perty from the bankrupt, but that such transfer was no- torious to the world ; for when a man has been at one time (1) Storerw. Hunter, sB. & C. (6) Longvmn v. Trij)]}, 2 N. R. 368. 67. (2) Ri/all V. Rolle, supra, per (7) Ex parte Richardson, Buck, LordK. 7T.R.23S. ISO. (.5) Nelson V. London Assurance (8) Ex parte Granger, Evans's Co?«^j«?/j/, 2 Sim. & S. 292. Statutes, title " Bankrupt," 64.; (4) HornUowcr v. Proud, 2 B. and see ante, 389. & A.327. (9) Doug. 317. 1 B. & P. 89. (5) Fallcner v. Case, cit. 2 T. R. 9 East, 241. 491. Ex parte Smith, Buck, 149. 5 Mad. 63. D D 3 406 OF THE ASSIGNMENT [Ch. 11. Pt.2; Reputed ownership. But must be accom- panied with some evidence of reputa- tion. Reputa- tion maybe rebutted by other evidence. A secret transfer, void against creditors. the real owner of property, the presumption is that he con- tinues so, where there is no change of possession. (1) But mere continuance in possession by an assignor (under pecu- niary embarrassments) of property assigned, though always suspicious, is not of itself a conclusive badge of fraud. (2) So, the fact o^ possession, without any evidence of reputation of ownership, may not be sufficient of itself to bring the case within the statute ; or, at least, not without showing /ioto, or "whe?!, the bankrupt became possessed. And in all these cases, where facts are proved, which amount to a disposition of the property by the bankrupt as owner, general evidence may be given of his being reputed to be the owner. (3) But the inference of ownership, from pos- session, and even from reputation of ownership, may be rebutted by evidence contradicting that reputation. (4) Independently, however, of any consideration of bank- ruptcy, it is a general rule of law, that all secret sales and transfers of personal chattels, unaccompanied by possession^ are fraudulent and void as against creditors ; since the effect of them is, to enable a party to gain a false credit from the world. Therefore, where a creditor took an absolute bill of sale of his debtor's goods, but agreed to leave them in his possession for a limited time, the bill of sale was held void against creditors. (5) And so, in the case of an assignment to trustees, where possession did not accompany and follow the deed. (6) ment stock, was NOTORIOUS in the neighbourhood — though pos- session in this case was retained by the bankrupt for a certain period, pursuant to the stipulations of the agree- But where an agree- for the transfer of household furniture and farming (1) Per Holroyd J. 1 B. & C. 514. (2) Hoffman v. Pitt, 5 Esp. 25. Eastwood V. Broiun, 1 Ry. & M. 312.; sed vide per Buller J. Ed- ivards v. Harben, 2 T. R. 697. (3) Oliver v. Bartlclt, 1 B. & B. 269.; and see Muller v. Moss, 1 M. &S.335. (4) Gurr v. Rutton, 1 Holt, 527. Per Gibbs C. J. (5) Edwards v. Harben, 2 T. R. 587. Wordall v. Smith, 1 Camp. 3o3. (6) Bamford v. Baron, 2 T. R. 594.; and see Worsletf v. De Mat- tos, 1 Burr. 467. Sect. 5.] AS TO PEKSONAL PROPERTV^. 4-07 ment, — such a possession was held not to be within the What jws- statute. (1) So where a person (though in embarrassed ^ ^^^'""' circumstances) sold and assigned to a creditor all his in- terest in a leasehold house in which he resided, together with the whole of the furniture and household effects — continuing in the occupation of the house and furniture pre- cisely in the same manner as before ; but it did not appear, that the creditor had given less than the Jidl value of the property; and the assignor had, in fact, tvith the 2}^i}'c/iase monei/, paid the debts of several of his other creditors, — this was held to be a valid transaction (in the absence of any fraud) against an execution creditor. (2) And Lord Chief Justice Abbott said, that he had no doubt that the pur- chase of a house and furniture, with an immediate demise of them to the vendor, may be good, if there be no intention to defeat or delay creditors by the transaction. (3) Where an execution is levied on a trader's goods, but is Secret ex- concealed for a length of time, and the trader remains in ^cu^i^n ^ , ® , J . , . 1 within the possession or the goods, and carries on business as usual, — statute. this is a case of reputed ownership within the statute. (4) And the same, where the luarrant was directed to the trader's servant and another person, as special bailiffs, and they took possession of the goods in the shop, but the business was carried on as usual, though without the trader's in- terference; — for the possession of the servant in this case (1) Mvller V. Moss, 1 M. & S. Smith, Buck, 580.) But this urns 535. a part of the contract in Edwards (2) Eastwood V. Broiun, 1 Ry. v. Harbcn, where the bill of sale &M. 512. was held void. The better dis- (j) Ibid. 515. Lord Ellenbo- tinction seems to be the one taken rough in his judgment in Midler by Lord Coke ; who recommends, V. Moss, supra, appears to make a that a gift in satisfaction of a debt, distinction in fnvour of an assign- by a person mIio is indebted to ment of furniture (where the as- others also, should be made piib- signor continued in possession), that licly, and not in private; for se- the right to do so formed a part cresy, he says, is a mark of fraud. of the contraet ; — and the Vice- Twyne^s case, 5 Co. 80. ; and see Chancellor, also, was inclined to Kidd v. Raidinson, 2 Bos. & P, 59. draw a similar distinction, where (4) Toussaint v. Hartoj)p, 1 f lolt, the delay of possession was consist- 555. ent with the deed. {Hartlei/ v. D JD 4 408 OF THE ASSIGNMENT [Ch.ll. Pt.2. Reputed was considered to be the possession of the master. (1) o wners ip . ^^^ ^^^^ j^ make any difference that, after the utensils or Though fjoods are sold under such an execution, they remain in the and let^at ^^'^^^^'^ possession at 2i yearly rental for the use of them. (2) a rental. Thus, where a creditor took the furniture of a coffee-house keeper in execution, which, witliout ever being removed, he afterwards let to him at a yearly rent ; — such a possession was held to be within the statute. (3) And though, in one case of this kind, the creditor's initials were actually marked on all the goods, it was held, that this was not sufficient evi- dence of the notoriety of the chatige of property (4), so as to defeat the claim of the assignees. But, where the execution is notorious in the 7ieighhourhood, and the goods are hondjide sold, — then it has been held (notwithstanding the continu- ance of possession by the debtor) that they are protected from subsequent executions (5) — and also (as it should seem to follow) from any claim of the assignees of the debtoi-, if he becomes bankrupt; for there can be no re- puted oisonership of property in a person possessing it, which is kno'xson to have been seized in his possession by the pro- cess of the law. Where, however, after a notorious sale of a dyeing plant and other fixtures to a trader, there was a private re-sale of them to the vendor, and then a lease from the vendor to the trader, and he appeared to the world as the absolute owner, — this. Lord Mansfield said, was an experiment to de- feat the Bankrupt laws, and ought not to prevail against (6) So any the assignees. So also, where a retiring partner leased to utensils let ^^ others who continued the business, certain stills, vats, to the , . 11-11 vendor at and utensils proper for carrying it on, and which had been ^ ^^"^' used by the former partnership, — it was held, that (the con- tinuing partners liaving become bankrupt) all such utensils, (1) Jackson v.Irvin, 2 Cd.m^.'iB,. 652. Leonard v. Baker, 1 M. & (2)lB. &P. 82. S. 251. Watkins V. Birch, 4Taunt. (o) Lingham v. Biggs, ibid, 823. Joseph v. Ingram, 8 Taunt. (4) Lingard v. Messiter, 1 B. & 858. C.308. (6) Bryson V. Wylie, 1 B. & P. (5) Latimer v. Batson, 4 B. & C. 83. note (a). 1 C. B. L. 555. Sect. 5.] AS TO PERSONAL PROPERTY. 4t>9 as were not fixed to the freehold, passed to the assignees, — Whutpos- as being in the possession, order, and disposition of the '_ bankrupts, as reputed owners. (1) It will be observed in this class of cases, that the bank- rupt Jiad once been the absolute owner, or part-oivner, of the property, which was afterwards leased to him; and diat the principle on which they were decided was, that the change of property was not siifficienihj notorious, so as to prevent the world from being deceived by the continuance of possession. But it has also been held, where the bank- Or goods rupt was not the previous owner of the property, — that a ^^ ^"^ colourable lease to him of property, of which he has the though exclusive possession, and over which he exercises complete "°^ . 7 -11 11 /'I -fii previous control, will not take the case out or the statute. Ihus owner where a trader, on leaving off trade, sold the concern to under a the bankrupt, with the stock, utensils, &c. under a deed, iggse. which (though in appearance a lease) was in effect a con- trivance to secure the seller of the property interest, at 10 per cent., on the amount of the price until it should be paid ; — it was held, that this property (independently of the consideration as to the usurious interest) passed to the assignees, as property, of which the bankrupt was the reputed owner. (2) Where utensils of trade, being the separate property of As to pro- one of two partners, and insured in his name, were con- ^"^^ ^ ' _ ... "'■e msu- sumed by a fire, and afterwards a joint commission issued ranee on against both the partners, and the insurance money was ^^P^^'^te .,,... . jiropertv paid to the joint assignees, — it was held, that the separate in joint' estate was entitled to it, and not the joint estate — 'there ^'"'^"P''*" . tion. being no visible property at the time of the bankruptcy ; for after the fire the subject was in reality gone. (3) Where goods, being the commodity in which a trader As to deals, are purchased of him, and left in his keeping by the chased^""^' purchaser, undistinguished from the rest of his stock, — they and left in will be considered to be in his possession, order, and dis- ■ V^^^^^- (1) Horn V. Baker, 9 East, 215. (3) Ex parte Smith, Buck, 149. ^^ankriipt. (2) Sinclair v. Steve^ison, 2 Bing. 514. 1 Carring. 582. 410 OF THE ASSIGNMENT [Ch.ll. Pt.Sl. Reputed position, within the meaning of the statute ; notwithstand- oivnershif). . ,i • ^ n i i • ^ • i . ing there is even a custom or the trade \\\ the particular species of goods (which in this instance was that of hops) for the purchaser to leave the goods in the merchant's warehouse, subject to a rent for warehouse room ; for such a custom does not enable other persons, out of that trade, to know that the goods so left are not the property of the (1) possessor. So where A. sold to B. several casks of brandy, some of which, at the time of the sale, were in A.'s own vaults, and others in the vaults of a regular warehouse- keeper; and it was agreed between the parties, that the brandies should remain where they were, until B. could conveniently remove them ; B. then immediately marked the several casks with his initials, and it was notorious t6 the persons carrying on the wine trade at the place where the parties lived, that the sale had taken place ; but no notice of the sale was given to the warehouse-keeper, with whom some of the casks were deposited : — under these circumstances it was held, upon A.'s bankruptcy, that the whole passed to his assignees, as being in his order and disposition ; for that it was not sufficient, that the change of property was known only to persons in the mme trade, — but the transfer ought to have been known to all other persons, who might, in consequence of the bankrupt's con- tinued possession of the brandies, have been induced to give him credit. (2) Goods These cases, however, are somewhat at variance with and'^lefr ' ^^^'^ others in the Court of Chancery ; one of which was decided by Lord Hardwicke, and the other by the present Vice-Chancellor. In the first of these, the facts were, that two-thirds of a quantity of tar (then lying on the quay at Liverpool) were purchased of the bankrupt, and the whole was, pursuant to agreement, put into the bankrupt's ware- house, until the purchaser should give orders for shipping ( 1 ) Thacklhwuite v. Coc/f,5Taunt. A. 1 54. ; and see Mucldow v. Man- 487. ' g/es, 3 Taunt. 5 18. post. (2) Knoivles v. Ilorsfall, 5 B. & Sect. 5.] AS TO PERSONAL PROPERTY. 411 the same ofF as opportunity offered, and the purchaser Whatpos- also duly paid for the tar; — upon which Lord Hardwicke ^ ^^'"""' held, that as the possession of the tar was merely a temporat-y custody, it could not with any propriety be said to be in the order, disposition, or power of the bankrupt. (1) This case was cited in argument in the above case of Knawles v. Horsfall, and was attempted to be distinguished from that, on the ground, that in this the goods were to be left in the possession of the bankrupt only until they could be conveniently shipped; but in that case, also, the brandies were only to remain with the vendor, until the vendee could conveniently remove them. There does not, in truth, seem any material difference between the two cases, — except, indeed, that the circumstances in Knoiioles v. Hois- fall were, upon the whole, more in favour of the purchaser ; for in that case the casks were marked with the purchaser's initials. In the other case alluded to, which was before the Vice-Chancellor, a pipe of wine had been purchased of the bankrupt, and, after being bottled off, was set apart in a particular bin in the bankrupt's cellars, distinct from the rest of his stock, each bottle being marked with the pui'- chaser's seal, and entered in the bankrupt's books as be- longing to the purchaser ; and in this case Sir John Leach thought, that the wine was not in the possession of the bankrupt under such circumstances, as w^ould deceive his creditors, by any appearance of its forming part of that stock, to which they might give credit. (2) And this, after all, ap- Criterion pears to be the true criterion for determining every case "^f *jeter- oii-ejputed ownershij) ; for, if the goods are so distinguished cases of by the mark of the true owner, or so separated from the this na- rest of the bankrupt's stock, as to render it impossible for any person dealing with him to be deceived by any appear- ance of property in the bankrupt ; then, it is apprehended, upon no principle whatever can the goods be saitl to be in (l) Ex parte Flyn, 1 Atk. 185. (ii) Ex parte ManaOle, 1 G. & J. 402. 412 OF THE ASSIGNMENT [Ch.ll. Pt.2. Reputed ownership. Goods at a whai-f in harikrupC s name. Contra, if transferred into the name of the pur- chaser. Or if order for the deli- very the possession of tlie bankrupt, as reputed o-d)ner, at the time of his bankruptcy. But all goods lying at a *mliarf in the bankrupts name, and for which he is liable for rent to the wharfinger, or over which he exercises any control on any part of the day of the bankruptcy', are held to belong to him as reputed owner ; though it may be different, if the goods are lying there in the name of his agent, and the bankrupt himself has no reputation of ownership attaching to them. (1) But if the goods are transferred into a purchaser's name in the wharfinger's books, at any time before the act of bankruptcy, then the reputation of ownership in the bank- rupt is rebutted. Thus, where the purchaser of goods, then lying at a wharf in the name of the vendor, re- ceived from him an order on the wharfinger for their delivery ; though the order was not, in fact, carried to the wharfinger for several months afterwards (during which period the vendor had actually disposed of a part of the goods), and the vendor became bankrupt only nine days after the wharfins;er had transferred the remainder of the goods into the name of the purchaser, — yet, as the transfer was made in the wharfinger's books previous to the bank- ruptcy, it was held, that a complete change of the property had taken place; and that the assignees were not entitled to the remainder (2) of the goods. So, where a creditor, who had blank delivery notes on a wharfinger deposited v/ith liim by the bankrupt to cover advances, filled up the blanks with his own name, and took possession of the goods only the very day before the act of bankruptcy, he was held entitled to the goods against the assignees, (y) And, after a written order by the vendor for the delivery of the goods is merely communicated to the \i>harjinger, and assented to by him — though no actual transfer be made (1) Arbouin v. Williams, 1 Ry.& M. 72. ; and see Taylor v. Ilobin- S071, 8 Taunt. 648. 2 Moore, 750. (2) Jo7ies v. Dwyer, 1 5 East, 21. (3) Arbouin v. Williams, supra. Sect. 5.] AS TO PERSONAL rROPERTY. 413 in his books — the property has been held to pass to the (1) What pos- vendee. Therefore, where warrants of the West India ^ ^^^'°"' Dock Company (for sugars deposited in tlieir warehouses) shewn and were exhibited by a purchaser to the clerk of the com- f^^^"*'^'* *i 1 1 - T to by the pany, — this was holden sufficient to divest the seller of whar- any reputed ownership, though no adual transfer was made ^"o^r- in the company's books. (2) Where it is the known practice of a public company. Or where to deliver soods to the mere holder of their warrants, '^*^'^'^'"y t' _ ' warrants, without any indorsement on the warrant by the original (transfer- owner of the goods, — in that case, the bare possession of ^^'^.^^""- the warrants by any one, to whom they are delivered for dorse- a valuable consideration, is sufficient to rebut a case of P^^"*^') ^^^ reputed ownership in the person, to whom the goods ori- hands of a cinallv belonged. Thus, where a trader had pledged for ^°^f\fi^^ . I o nolder. value warrants for goods in the East India Company's ware- houses — (which warrants are current in the market, and transferable without indorsement, and the goods are de- livered to the person who brings the warrants to the ware- house) ; and the trader became bankrupt whilst the warrants wei"e in the possession of the pawnees ; — it was held, that the goods were not in the possession, order, and dispo- sition of the bankrupt at the time of the bankruptcy. (3) But, where a captain in the East India Company's service As to pro- assigned his privilege (which consists in shipping goods '^^^'^a^ e to the extent of a certain tonnage from the East Indies captain in to England) to one Taylor for a valuable consideration, in ^^ breach of an express law of the Company, which prohibits pany's ser- vice. (1) Lucas V. Dorrien, 7 Taunt, seem, that the dock warrants hav- 278. 1 Moore, 29. Harman v. Aii' ing been once exhibited by the dcrson, 2 Camp. 245. holder to the proper officer of the (2) Ibid. Spear v. Travers, company, are in themselves the 4 Camp, 251. It was observed by true symbols of the ownership of the special jury in this case, that, the goods. And, indeed, they are in practice, the indorsed dock war- now declared to be so by the rants are handed from seller to recent act of 6" G. 4. c. 94. s. 2,; buyer, as a complete transfer of and see post, " Lien." the goods. (4 Camp. 255. ; and see (.j) Greening v. Clark, 4 B. & C. 8 Taunt. 290. Per Dallas J.) In 316. all these oases, therefore, it should 414. OF THE ASSIGNMENT [Cll. 11. Pt.2. Reputed oivnership. Goods 011 sale or return, pass to assignees. Special ex- ception. Tliere may be an usage of this kind. Meaning of the contract. such assignments ; — and in order to evade this law, the goods were shipped, entered, warehoused, and sold by Taylor in the cajitaiiUs name, and the proceeds carried to his account — but, before they were handed over by the Company, the captain became a bankrupt — and Taylor was in possession of no document, which he could have carried to market for the purpose of disposing of the goods, or the proceeds ; — it was held, in this case, that the assignees were entitled to recover the amount, in an action for money had and received against the East India Com- pany — the proceeds being considered to be within the order, and disposition, of the bankrupt at the time of the bankruptcy. (1) Where goods have been bought by a bankrupt upon sale or return — such goods, when in his possession at the time of his bankruptcy, are held to pass to his assignees ; as they appear to the world to be his property, and are calculated to give him a delusive credit. (2) But where goods were sent from London to Sunderland, on sale or return, with directions to the buyer to return such of them as xoere not approved of by him, in as short a time as pos- sible ; and the goods arrived at the shop of the buyer only the day before he committed an act of bankruptcy; — it was held, under these circumstances, that the goods did not pass to his assignees, as a reasonable time had not elapsed after the arrival of the goods, to enable the buyer to select such, as he might be disposed to retain. (3) There may be an usage, also, in a particular trade, to send goods on sale or return, though there is no agreement to that effect between the parties ; but then the usage must be certain, and must be strictly proved. (4) The meaning of such a contract or usage is, not to place the purchaser upon the footing of a factor — though he, like a factor, until (1) Gordon v. E. I. Company, 7T.R. 228. (2) Livesay v. Hood, 2 Camp. 83. Sed vide per Abbott C. J. Dcknmay v. Barker, 2 Star. 542. (3) Gibson V. Bray, 8 Taunt. 76. 1 Moore, 519. (4) Wood V. Wood, 1 Carr. 59. Sect. 5.] AS TO PERSONAL PROPERTY. 415 lately, had no authority to pledge (1) — but to vest the What ])os-' property of the goods in him so far, that he may sell them '_ either for money or credit, and receive the proceeds ; — and if he is unable to sell them, the vendor cannot call upon him for the value of the goods — but has only a right, if his bankruptcy does not intervene, to reclaim them in specie. (2) When goods, however, are ojice delivered to a vendee When upon an ordinary contract of sale, the property is wholly goo'^^ sold are once changed by the delivery, notwithstanding the goods may be delivered, obtained by the vendee, even with intent to defraud the vendor property of the price ; and the latter cannot take them back, after an ° act of bankruptcy committed by (3) the vendee; though, perhaps, if the goods had been obtained by the vendee under false pretences, then the vendor might recover them back from the vendee, or his assignees. (4) And a delivery Delivery of goods cannot he qualified by any secret stipulation between '^^" V-^*" v^ the vendor and purchaser, so as to defeat the claims of the by secret assignees of the purchaser, in case he becomes bankrupt ; stipula- nor, even though the goods are not actually delivered, will p^„.chaser any secret stipulation have that effect, if the vendee be per- having mitted to exercise sucli a control and management over the ^°"'''*' . over goods, goods down to the time of his bankruptcy, as to give him equal to the appearance of being the real owner. Thus, where a 'lelivery. bankrupt had entered into an agreement, that in the event of his becoming bankrupt, or insolvent, before payment made of a quantity of standing timber purchased by him, that the vendor should retake the same, — it was held, that if the bankrupt had the order and disposition of the timber, it would pass to his assignees. (5) , (.1) See now 6 G. 4. c. 94. s. 5. 176. The circumstance of the post, " Lien." property in question in this case ' (2) Per Gibbs C. J. 1 Holt, 55Q. being part of the freehold, and (.3) Alilward v. Forbes, 4 Esp. therefore not within the provision 171.; but see post. of the statute (which applies only (4) Gladstone v. Hadtven, I M. to jiei-sonal property/), does not &S. 517.; and see post. appear to have been adverted to. (5) Holro^d v. Gwj/une, 2 Taunt. Sec ante, 405. 416 OF THE ASSIGNMENT [CIl.ll. Pt.2. Reputed ownership. Where property removed on eve of bank- ruptcy. News- paper as- signed, without affidavit of change of interest. Share of a director in a public company. It has been held in one case, that if the real owner of property, such as household furniture, permits it to remain so long in the possession of the bankrupt, as to give him the reputed ownership of it in the opinion of all who deal with him; and the owner only takes possession of it the day before the bankruptcy, — that such re-possession is fraudulent against the creditors (1); and that the property passes to the assignees. But we have already seen, that in a case of property lying at a wharf, where it did not appear that persons were deceived by any apparent ownership of the bankrupt, and the real owner only took possession of it one day before the bankruptcy, that the transaction was not impeached on that account. (2) Though, where the re- moval of the property takes place on the very same day on which an act of bankruptcy is committed — notwithstanding, in point of time, it is really before the actual commission of it — then it has been held, that the rights of the assignees attach. (3) Where the printer and publisher of a newspaper assigned his interest in it to a creditor, as a security, but continued to print and publish it as before, and no affidavit of the change of interest was delivered to the commissioners of stamps, — it was held, on his bankruptcy, that the right to the newspaper passed to his assignees. (4) So, where a director of a public company assigned his shares to the company, in order to secure a debt due from him on his private account ; and empowered the company to direct the treasurer to retain the dividends, and sell his shares for the payment of his debt; but the power given to the com- pany had not been exercised, and his share still remained in his name ; — it was held, that on the bankruptcy of the director the shares passed to his assignees, as being in his order and disposition ; but that the company had a right (1) Barbi/ v. Smith, 8 T. R. 82. (2) Arbouin v. Williams, 1 Ry. & M. 72. Ante, 412. (3) Ibid. (4) Longmanv. Ti'ipf), 2^.^.61 , Sect. 5.] AS TO PERSONAL mOPERTY. 417 to set off the bankrupt's debt, against the dividends due to Whatpos- , . 1 . I 1 ,, \ session. niiTi at his bankruptcy. (1) Where the bankrupt had a patent for an invention, and, Patent, after having mortgaged his right in it, continued in the patentee notorious use of the invention until his bankruptcy, — Lord continues Eldon was inclined to think, that the right passed to the ?'° "^t-* ^ ' ... invention. assignees ; but he directed a case for the opinion of the Court of King's Bench ; — which, however, was never argued. (2) The possession of the bankrupt, in order to bring a Possession case within the statute, must be xmth the consent and -per- ^ i^ank- ' ^ ^ nipt must mission of the true owner. (3) Therefore, where stock be with standing in the name of the accountant-ffeneral was mort- «""^"^ v , ^ trueowncr, gaged to secure a debt, and the accountant-general after- wards, xmthout the priviti/ of the mortgagee, transferred the stock to the mortgagor, — it was held, that it did not pass to the assignees on the bankruptcy of the mort- gagor. (4) So the property of infants^ who are not capable in law As to pro- of giving consent, is not affected by a case of reputed P^^'ty/** omnership. (5) But where a trustee for infants contracted to sell goods, and he afterwards let the purchaser into possession, — in this case, the property was holden to be within the statute; the trustee being considered the true legal owner of the property, and the purchaser being in possession with his consent. (6) If a bankrupt retains an adverse possession of goods Adverse up to the time of his bankruptcy, so that the party entitled possession. to them could not obtain the possession, or restrain him from disposing of them, without suing him in a court of justice, — such a possession of the bankrupt will, of course, not be within the meaning of the statute ; as this is against " the consent and permission of the true owner." (7) (1) Nelson v. London Assurance (4) Ex parte Richardson, Duck, Company, 2 Sim, & S. 292. 480. (2) Ex parte Granger, Evans's (5) Viner v. Cadell, 5 Esp. 88. Statutes of Bankruptcy, 64. (6) Ex parte Bale, Buck, 365. (3) West v. Skip, 1 Ves. 243. C') West v. Skip, supra. Lift v. Cowky, 7 Taunt. 169. E E 418 OF THE ASSIGNMENT [Ch.ll. Pt.2. Reputed ownership. Where a secret partner, — all the property passes to assignees of osten- sible partner. Where property cannot be delivered. Ships at In the case of a secret j)ortnership between the bankrupt and another person, where the stock in trade is in the sole possession of the bankrupt, — Lord Alvanley upon an occasion of this kind expressed great doubt, whether the claim of the secret partrier to a share in the joint property could be sustained, against the claims of the assignees. (1) And, indeed, a possession of property under these circumstances, seems to come within the very terms of the above enactment as to reputed owner- ship. The Court of Exchequer, however, in a case of this description determined, that the claim of the secret partner was sustainable (2) ; though Lord Eldon, on a subsequent occasion, intimated a strong opinion to the contrary, but reserved the decision of the point for the assistance of those Barons, who had concurred in deciding in favor of the claim of the secret partner. (3) This point, however, ap- pears now to have been finally settled by the Court of King's Bench, upon a case lately sent for its opinion by the Lord Chancellor; in which the judges unanimously agreed, that where there was a secret partnership, all the property and effects, as well as the debts due to the concern, must be deemed to be in the order and disposition of the ©stent- sible partner, — and therefore passed to his assignees. (4?) < Where property is of such a nature, that it camwt be ab- solutely delivered {at i\\e time of the contract) to a purchaser, then it will be sufficient, if those documents and instru- ments relating to it are delivered, which will enable him to reduce the property into possession. Thus, in the case of ships at sea, and their cargoes, of which an absolute de- livery of possession cannot be made, — it will be sufficient, if the bill of sale, or bill of lading, is delivered to the pur- chaser; provided he takes possession of the property, upon the arrival of the ship in port. (5) But, in the case of the (1) Blnford v. Dommett, 4 Ves. 256.; and see ex parte Wilson, ex 7S(>. ; and see ex parte Barrow, parte Todd, Buck, 53. 2 Rose, 252. {4) Ex parte Enderbt/, 2 B, & C. (2) Coldwell V. Grcgori/, 1 Pri. 589. 119. (5) Brotvn v. Heatkcote, 1 Atk. (3) E\ parte Dyster, 2 Rose, 160. Sect. 5.] AS TO PERSONAL PROPERTY. 419 sale or mortgaffe of the shiv^ it is necessary, that all the Whatpos- SCSSIOTI, provisions of the registj'i/ act (l) should be strictly com- plied with ; otherwise, the purchaser will not be entitled to hold the ship, as against the assignees of the vendor, or mortgagor. (2) The bill of sale of a ship at sea is held now to pass the absohtfe propnii/ in her, subject only to be divested, in case of the indorsement on the certificate of registry not being made within the proper time (which is now thirty days) after the arrival of the ship in port. (3) And a power of attorney, to sign an indorsement on the certificate, is not revoked by the subsequent bankruptcy of the vendor, — being only a power to do a mere formal act, which the bankrupt himself might have been compelled to execute, notwithstanding his bankruptcy. Therefore, if the indorsement is made within the limited time under such a power of attorney, though after the bankruptcy of the vendor, it will be a sufficient compliance with the terms of the registry act. (4) Where the purchaser, however, has an opportunity of But where taking possession of the ship, either by her being at home ^A^'^t^tl'^ at the time of the purchase, or by her returning to port, possession, he must in that case take actual possession ; otherwise, ^ "'"*^ though all the requisites of the registry act are complied \ with, the transaction will come within the operation of the above enactment, as to the reputed ownership of the bank- rupt. (5) But though the purchaser do not take actual pos- session as soon as he might, — yet, if the rights of no third person interfere, he may, afterwards, take legal possession (1)4 Geo. 4. c. 41. s. 35, 6, 7, &c. (4) Ibid. ; and see Lemprierc v. which repeals all the former re- Pas/ei/, 2 T.R. 485. gistry acts. (5) Ex parte Mattheius, 2 Ves. (2) Mos!' V. Charnocic, 2 East, 272. Wall v. Gurncy, 1 C. B. L. 399. Rolleston v. Hibbert, 3 T. R. 342. Atkinson v. Alaling, 2 T. R. 406. Rollestojiv. Smith, 4T.R. 161. 462. Mair V. Glcnnie, 4 M. & S. (3) Dixon V. Ewart, 5 Meriv. 240, Way v. Fuirbuirn, 2 B. & A. 322. Buck. 94. ; and see 4 Geo. 4. 193. Robinson v. Macdonnel, 3 M. c. 41. s. 37.; and post, " Rela- & S. 228. Monkhouse v. Way, tion." 4 Moore, 549. 8 Pri. 256. 2 B. & B. 14. E E 2 420 OF THE ASSIGNMENT [Ch.ll. Pt.2. Reputed ownership. Where purchase only of a share. Where ship con- tracted to be built, and re- gistered in name of purchaser. Where a barge built, but not deli- vered. of the ship — if he does so before the bankruptcy of the per- son, who executed the bill of sale to him. (1) And if, at the time of the sale, the ship is in any foreign jiort, then the purchaser need not take actual possession of her ; and the port of Z)Mi/m is, in this respect, considered a foreign port. (2) Where the purchase is only of a share in the ship, then the delivery of the bill of sale of such share (provided the requisitions of the registry act are in other respects com- plied with) will be a good delivery to vest a title in the purchaser. (3) And in a case where a ship-builder con- tracted to build a ship to be paid for by four instalments, three of which were paid — and he then signed the usual certificate in order to have the ship registered — and the ship "iSas accordingly registered in the name of the pur- chaser — but was not then completed or launched, and was still in the possession of the ship-builder ; — it was decided, that the legal effect, of the ship-builder's having signed the certificate for registry in the name of the purchaser, was to vest the general property in the ship, from the time the registry was completed ; — and that the ship was not in the possession (4) of the bankrupt, as reputed owner. But where a barge, (which is not required to be registered) after being completed, remained in the boat-builder's hands — though the purchaser's name was painted on the stern, and he had advanced money as the building of it went on, to the full value of the barge — but the builder had done no act expressing an unequivocal consent, that the general pro- perty should be considered as vested in the purchaser ; — in this case it was held, that, as there had been no actual delivery io the purchaser, the property (5) was in the order and disposition of the bankrupt. (1) Robinson v. Macdonnel, 2 B. & A. 1.54. (2) Ex parte Batson, 1 C. B. L. 345. (3) Ex parte Standgroom, 1 C. B. L. 348. iVcs. 1G3. : and sec Gillcsjnc V. Confts, Amb. 652. and Ha/l V. Gurnei/, 1 C. B. L. 342. (4) Woods V. Russell, 5 B. & A. 942. (5) Mucldowv. Mangles, 1 Taunt. 318.; and see post. Sect. 5.] AS TO PERSONAL PROPERTY. 4.21 But, though the purchaser forfeit his title to the ship^ as What pos- against the assignees of a bankrupt, by neglecting to take possession of her whilst she is in port, — he will still be en- Where titled to the produce of a 'policy of insurance on her (which [i"ou„hf^'^' is assigned to him at the time of the bill of sale) in the not en- event of a loss happening to the ship at sea before the *-|^.'-'"*° bankruptcy. (1) And, though the policy was detained by titled to the broker who effected it, as a pledfje for a debt owinjj to P°"*^y ^^ , , . . , insurance. him by the bankrupt ; and the assignees obtained posses- sion of it by paying that debt ; — yet they were held not entitled to retain it against the person to whom it was assigned; as this was considered not such a leaving of the policy in the hands of the bankrupt, as to give him the entire order and disposition of it. (2) Under a commission of bankrupt against two partners. Ship re- ships registered in the name of one of them, but in the S^'^'^i'*^'*^" ^ . ^ . . . name of ordering and disposition of both, are held to form part of one part- the joint estate. (3) "^'■• An executory contract for the sale of a ship is within the Executory provisions of the register act, and must, therefore, be in- '^o"*''^'^^' dorsed on the certificate of registry. (4) Where the transfer of the ship, however, is not an ahso- Where lute transfer, but merely made as a securih) for a debt, or ^'^''^ mort- 1 c 1 1 , s 1 1 S^gf-'d, not by way or mortgage^ then, as we have seen (5), by the pro- a case of visions contained in the 72r/ section of the new act, it is reputed excepted out of the enactment as to reputed ownership, — ^" provided those requisitions of the registry act are complied with, which relate to ti'ansfers of ships by way of mortgage. And by the new register act (4 Geo. 4. c. 41. s.43.) it is now expressly declared, that the person to whom such security or mortgage shall be made, shall not, by reason thereof, be deemed to be the owner of the ship or vessel, or of the share so transferred, nor will the person making (1) i^a/Ancrv. Case, cited 2 T.R. (4) Mortimers. Flccming, 4 B. 491. «S:C. 120. (2) Ibid. 1 Bro. 12.5. (5) Ante, 402. (3) Ex parte Burn, 1 Jac. & W. 378. E E 3 422 OF THE ASSIGNMENT [Ch. 11. Pt.2. Reputed the transfer be deemed to have ceased to be an owner, ex- o wncis ij ). ^^^^ g^ ^^^ ^g j^^y. 1^^ necessary for the purpose of render- ing the ship, or tlie share so transferred, avaihible by sale or otherwise for the payment of the debt, for securing pay- ment of which such transfer shall have been made. And by the ^Uh section of the same act it is also provided, that when any such transfer shall have been duly registered, the right of the mortgagee shall not be affected by any act of bankruptcy committed by the mortgagor after the time of such registry, notwithstanding the mortgagor, at the time he became bankrupt, had in his possession, order, and disposition, and was the reputed owner of, the ship, or the share so mortgaged; but such mortgage shall take place of, and be preferred to any right of the assignees of such bankrupt in such ship or share so transferred. (1) And in all cases, where the best delivery is made upon the sale of goods, which the nature of the property sold, and ade7that the circumstances under which it is sold, will admit, the case will then not be considered as one of reputed ownership. wHl admit. Thus, where the bankrupt contracted with a canal company to build locks and bridges on the canal as their engineer, and purchased timber and other materials for the purpose, which were laid on the company's premises ; and, on the company advancing money to him, they took a bill of sale of these goods, and a nominal delivery of them by a half- fenny ; — it v/as held, that the bankrupt had not, under these circumstances, such a possession of the timber, as would enable the assignees to claim it in opposition to the bill of sale ; for that, the timber being before the sale on the com- 2}any s premises, the best delivery was given of it, which the circumstances would admit. (2) When Whenever a chose in action is assigned, the security, if chose m there be one, must in all cases be delivered over at the action as- ' ^ a i • i i i signed, the time of such assignment. And, m order completely to security divest the bankrupt of the ownership of debts, he must, in So where the best delivery m circum- stances (1) See ante, 40.3. note(l). (2) Mantonv. Moorej 7 T.R. 67. Sect. 5.'J AS TO PERSONAL PROPERTY. ^/03 assi'jjninff them, have done every thing that is equivalent to Whatpda- SCSSlOtl the delivery of chattels personal. (1) Tims a boiiclf when '_ assigned, must be delivered up to the assignee. (2) But, in must be the case of mere book-debts, there is nothing that can be °^^^" "P' delivered ; except, indeed, when one partner assigns all his share in the partnership debts to the other ; in which case the deed of co-partnership must be delivered up. And and notice whenever a debt is assiijned, notice of the assignment must S'^^'i to be given to the debtor, whether there is a security for the tor. debt, or not (3); for otherwise the obligee — in the case of the bond — or indeed any other assigning creditor, would be enabled to obtain payment of the debt, — which is tanta- mount to leaving it in his order and disposition. There- fore, in the event of a dissolution of partnership, notice in the Gazette of such dissolution has been held not sufficient notice to the partnership debtors, unless it could be reason- ably inferred that they had seen it. (4) Where the bankrupt (upon borrowing a sum of money) Money in drew an order, in favor of the lender, for payment of the h^.'^^Js of money out of a particular fund due and to become due to son al- him, and the order was deposited by the payee with the ready , . T . T 1 1 • 1 • drawn for person on whom it was drawn, — it was lield, m this case, by bank- that the money did not pass to the assignees, but was to ™pt- be appropriated to the payment of the order. (5) So an Accom- accommodation acceptance, in the hands of the drawer at the '"^''^^t'o'^ . . accept- time of his bankruptcy, does not pass to his assignees ; and ance. may, therefore, be indorsed by him after he had committed the act of bankruptcy. (6) The possession of a carrier^ by whom the bankrupt Possession sends money or goods to a creditor, does not alter the of a car- rier. (1) Per Sir W. Grant, Jbne* v. S Swanst; .59.5. Ex Y>^rte Alderson, Gibbon, 6 Ves. 410. 1 Mad. 53. (2) Ri/alv. Rowles, 1 Ves. 348. (4) Ex parte Osborne, 1 G. &J. 1 Atk. 171. 356. (3) Ibid. Ex parte MoMro, Buck. (5) Row v. Datvson, 1 Ves. 331. 500. Ex parte ^Mr/o7i, 1 G. & J. (6) Wallace v. Hardacre,! Camp, 207.; and see ex parte South, 46. JFtV/ii- v. Freeman, 12 East, 656. E C 4 424 OF THE ASSIGNMENT [Ch. 11. Pt.2. Reputed property ; for, the possession of the carrier is, in this re- o wners ip . ^^^^^^^ ^.j^g possession of the bankrupt. Therefore, where the bankrupt shortly before his bankruptcy drew a billy, and after procuring it to be discounted, gave a creditor an order to receive the amount, which he directed A. (who • discounted the bill) to transmit to the creditor; and whilst ' the money was in the hands of the carrier, the bankrupt committed the act of bankruptcy, — the creditor, who after- wards received the money, was held liable to refund it to the assignees. ( 1 ) Where an In a case, where a bankrupt bought his own stock in cat^d ' ' trade of his assignees, and sureties joined in a security to ' bankrupt them for the consideration ; and the bankrupt continued to ' bought his ^YSide for four years afterwards, and then died without > own stock. . . , . having obtained his certificate, having contracted fresh debts subsequent to his bankruptcy, — Lord Camden held, »r that the subsequent creditors were to be preferred to the'- creditors under the commission. (2) But Lord Eldon, in observing upon this case, said, that it had never been con- sidered of very high authority ; for that, unless the bankrupt had purchased the stock with the money of a third person, it was purchased with that which was the property of the assignees, — and, in that case, the sale would have been with-i'^ Where out consideration. (3) And where a bankrupt (who had'^ bankrupt obtained his certificate) was employed by the assignees, as to occupy their agent, in getting in the debts; and was permitted by his house them to remain in possession of his furniture, household ^ tureasthe goods, and plate, and to continue to inhabit his house fo?' agent of nearly five years, in order the better to assist the assignees • ^ ' in settling his affairs, during which time be engaged in J^ trade on his own account; but in all the statements of his^ estate and effects, which were laid before his creditors at * different periods, the furniture, &c. (which had been in-^^ (1) Harvey V. Liddiard, 1 Star. (3) Ex parte Martin, 15 Ves. 123. 116. 123. (2) Troughton v. Gitley, Ainb. 630. Sect. 5.] AS TO PERSONAL PROPERTY. 425 ventoried and valued immediately after the commission Whatpos- issued) was included : a second commission having issued * '__ against him, — the question was, whether his possession under these circumstances was not such, as entitled the assignees under the second commission to the goods, as being in his order and disposition as reputed owner, — and the Court of King's Bench held that it was not. (1) Where, also, an uncertificated bankrupt hired a shop, and carried on business there for some time, living with his son, and goods were supplied in the name, and on the credit, of the son — though, in one or two instances, the father had guaranteed the payment — it was held, that the goods under these circumstances did not belong to the assignees. (2) And it has been recently decided, that goods, which Where (with the consent of the true owner) come to the possession ^^^^ ^^ of the bankrupt after he becomes hanJcrupty do not vest in bankrupt's the assignees under the above provision as to reputed "^^H^^^^J^ ownership ; and a person " becomes a bankrupt" on com- hank- mitiing the act of bankniptcy^ which is followed up by a ''^P^^^* commission. (3) So, the bare possession of goods entrusted to the Possession bankrupt for a specific pm-poscy without any power given °^ goo"s him to dispose of them, is not sufficient to make it a case cific pur- of reputed ownership — unless the owner has been guilty of P^^^- laches, in permitting them to remain so long in the bank- rupt's possession, or under such circumstances, as to give him a reputed ownership — and thus enable him to gain a false credit. (4) Therefore, a carpenter who receives timber to convert into a waggon, or a tailor to whom cloth is delivered to be worked up into clothes, have neither of them such a possession of the timber, or the cloth, as will constitute him a reputed cwner of it within the meaning of the statute. (5) And even if money be left with Or of mo- ney, if (1) Walker v. Burnell, Doug. (5) iyon v. JFie/rfoH, 2 Bing. 334. 303. (4) West V. Sk'q}, 1 Ves. 243. (2) Davis V. Living, 1 Holt. 275.; ^5) Per Ashurst J., 3 T.R. 323. and see Staffordv. Clark, 1 Carr. 24. 426 OF THE ASSIGNMENT [Ch.ll.Pt.2: Reputed ownershij) : FACTOR. kept se- parate. Or of a banker's cheque, not within the sta- tute. Timber supplied for par- ticular works. a bankrupt, for a •particular 'purpose, provided it be kept apart from his general property, — that also cannot be claimed by his assignees ; as in the case of an overseer of the poor, who kept the money received by him in that capacity distinct from his other effects. (1) And where a friend agreed to lend a bankrupt 200/., to be applied to a specific pmpose, and placed in his hands a cheque on his bankers for that amount, and the bankruptcy took place before the cheque was paid, — it was held, that the assignees had no right to the cheque. (2) So, where a merchant bought and shipped timber in his own name to one of the King's yards, where it was delivered for the use of the bankrupt (a carpenter), who had contracted to perform some works there, and who was secretly an ajjent of the mer- chant, — it was held, that as the timber was delivered only for the purposes of the contract, and as there was no sale of it to the bankrupt, the renl property was in the merchant; and that, as there was no fraud in the transaction, the bankrupt's assignees were not entitled to it ; for though the bankrupt liad the apparent, he had not the absolute disposition of it. (3) 3. Possession as Factor {^'), Banker, or Broker. Factor's The possession of goods by the bankrupt as Factor — possession though he has the power of immediately selling, or pledg- of reputed i"g(5), them, and taking the money — is (for the benefit of ownership, trade) held not such a possession, as will constitute a case of reputed ownership ; for his possession of the property is, only, under a bare authority to sell it for the principal, and to account to him for the proceeds. A Factor, indeed, stands in the situation of a trustee with his principal ; and what- {\) Rexy.EggintonflT.R.ZlO. 316.; but see 7 T. R. 237., per (2) Moore v. Barthrop, 1 B. & Lawrence J. C. 5. (4) And sec post, " Lien." (3) Collins V. Forbes, 5 T. R. (5) See 6 G. 4. c. 94. Sect. 5.] AS TO PERSONAL PROPERTY. 42f ever property he has in his possession in that character at Reputed the time of his bankruptcy, and which can be distinguished '^p"i^tor^' from his own, belongs to his principal, and does not pass ^'c- by the assignment. (1) And even if the goods be sold and reduced into money, provided the money be in separate bags, or in other respects distinguishable from the rest of the factor's property, (as in the case of the overseer before mentioned (2) ) — the principal, and not the assignees, will be entitled to it (3) ; for the dictum, that money has no ear- mark, must be understood to apply only, in a case of an undivided and undistinguished mass of current money. (4) So, if the factor receives notes or bills, instead of money — or buys other goods with the proceeds, — the principal will be equally entitled to the bills, or the goods so bought (5) ; for the product of, or substitute for, the original thing still follows the nature of the thing itself, as long as it can be ascertained to be the very product, or substitute ; and the right of the principal to reclaim it only ceases, when the means of ascertainment fail. Thus where a factor, having money of his principal in Factor his hands, bought South Sea stock for him, and took the '^"3'^n? 1 • . • 1 1 • • 1 • ,1 stock m stock m his own name, but entered it in his account-book, his own as bought for his principal, and afterwards became bank- "^me. rupt, — it was determined, that the stock was not liable to the bankruptcy. (6) And the same rule prevails, as to the right of a principal to reclaim substituted pi'operty from a Factor, or Broker, notwithstanding such substituted property has been ac- quired in fraud, and not in pursuance of his trust ; for an (1) Burdett v. Willett, 2 Vern. (3) Per Lord Kenyon, Tookew 638. UApostre Y. Le Plaistrier, Holli72gworfk, 5 T.R. 21 5. I T. R, cit. 1 P. Wnis.318. Mace v. Cadell, 370. Paul v. Bird, 2 Atk. 621 . Cowp. 233, Ex parte Dianas, (4) sM.&S. 575. per Lord El- 2 Ves. 586. 1 Atk. 2.52. Godfrey/ lenborough. V. Furzo, sP. Wms. 185. Boddy (5) Ex parte .S'«j/C7-*, 5 Ves. 169. \. Esdaile, 1 Carr. 62. Garrat v. Whxtcomb v. Jacob, 1 Salk. 160. Cidlum, B. N. P. 42. ; and see 6 G, 4. Scott y. Surman, Willes, 400. 1 x\tk. C. 94. s. 5. 254. (2) Ante, 426. (6 ) Ex parte Chions, 3 P. Wms. 186. 4, rican stock, &c. 428 OF THE ASSIGNMENT [Ch. 11. Pt.2. Reputed abuse of trust confers no greater rights on the party, nor ^JfJlZ^l^^' on his assignees, who claim in privity with him. There- FACTOR^ "^ i ./ ^c. fore, where a draft for money was entrusted to a broker to „ r~" buy exchequer bills for his principal ; and the broker re- embezzling ceived the money, and misapplied it, by purchasing a dratt, American stock and bullion, intendinfj to abscond with it and buy- _ _ " , ing Ame- and go to America ; and he did accordingly abscond, but was taken before he quitted England, and thereupon sur- rendered to the principal the securities for the stock and the bullion; — the principal was, in this case, held to be entitled to such securities and bullion, as against the as- signees of the broker, who became bankrupt on the very day, on which he so received and misapplied the money.(l) And Lord Ellenborough in his judgment in this case said, that if property, in its original state and form, was covered with a trust in favour of the principal, no change of that state and form can divest it of such trust; or give the factor, or those who represent him in right, any claim of greater validity in respect to it, than they respectively had before such change. (2) Neither will the rights of the principal be altered in this respect, though the factor acts under a del credere com- mission ; for this does not deprive the principal of his remedy against the buyer, if there be no payment to the factor (3); but if a factor conceal the name of his principal, and sell in his own name, the buyer has a right then to consider him as the principal, — and will be entitled, in an action by the real owner for the price, to set off a debt due from the factor. (4) When If the goods have been sold by the factor, and are not ^h'"kP^' paid for at the time of his bankruptcy, the principal should notice to give notice to the purchaser, not to pay the factor, or his purchaser, assignees ; and if the purchaser will do so in spite of such (1) Tai/lor V. Plumer, 5 M. & S. (4) George v. Clagctt, 7 T. R. 562. 359. Rabone v. Williams, cit. ib. (2) 3M.&S. 574. 360. Bai/lei/ v. Morley, ibid. (3) Scrimshire v. Alderton, 2 Str. Stracey v. Beey, ibid. 561.; and see 1182. 6 G. 4. 0.94. S. 6. Sect. 5.] AS TO PERSONAL PROPERTY. 429 notice, he will then be liable to repay the money to the Reputed . . 1 1 ownership: principal (1); or, if the assignees receive the money, tlie j^^i^ek. principal will be entitled to recover the amount from them. (2) Upon the same principle, too, as that of the right to Banker, reclaim goods from a factor, is founded the right of a cus- tomer to re-possess himself of what are called short bills ; Short that is, bills not due, in the hands of his Banker. For if ^^"^' such bills, or notes, are sent to a banker to be specificalhj applied^ and he becomes bankrupt without having parted with them, they do not pass by the commissioners' assign- ment. (3) But, if the bills are indorsed by the person who deposits them with the banker, and the latter disposes of them before his bankruptcy, though even contrary to good faith, — in that case, they cannot be recovered by the cus- tomer. (4) The nature of the interest, however, which the assignees of a Banker possess in bills and notes remaining in his hands at the time of his bankruptcy, depends on the circumstances, under which the bills or notes have been remitted, or paid in, by his customer, — as well as upon the state of accounts between the customer and the banker, at the time of the bankruptcy. If the bills have been discounted with the if tlis- banker, the property is then changed, and they pass to his ^^^ f^ ^^^ assignees with the rest of the effects; or, if he has ad- assignees; vanced money upon them, or accepted other bills for the accommodation of the customer, the assignees will not only have a lien upon all the negotiable securities in the banker's hands, to the amount of such advances or accept- {\) Saimshire \ . Aldcrton, &\x^Y^. 2H. B. 501. Parke v. Eliason, Eicot v. Mil ward, lC.B.L.378. 1 East, 514. Ex parte Sai/ers, '' 7 T. R. 56 1 note (b.) 5 Ves. 169. Zincif v. Walker, 2 Bl . (2) B.N.P. 42. &o^/!v. .Siirman, 1154. Ex parte ilfarf&oji, 1 C. B. supra. Ex parte Murray, C. B. L. L. 384. Hassall v. Smithers, 12 Ves. 579. 119. Ex parte Smith, Buck, 355. (.3) Ex parte Dumas, 1 Atk.235. Ex parte Ji/cen, 2 Mad. 192. Ex parte Oursell, Amb. 297. 2 Ves. (4) Col/ins v. Martin, 1 B. & P. 586. Ex parte Emery, 2 Ves. 674. 648. Bolton v. Puller, ibid. 559. Tooke V. Holliiig worth, 5 T. R. 215. Ex parte Pease, 1 Rose, 238. 430 OF THE ASSIGNMENT [Ch.Il. Pt.2. Reputed ownership i BANKER. and so where an exchange of accept- ances ; except when. When must be given up by the as- signees. ances, — but may also put the same in suit. And even where, taking into account the bills on both sides, the customer has a balance in his favour, but not equal to the amount of any otie of the bills, — this surplus cannot be appropriated to any ojie bill, in reduction of the claim of the assignees suing any of the parties to such bill. (1) Where the transaction with a banker amounts to an ex- change of acceptances, his assignees are in that case entitled to the bills so taken by him in exchange; — as where a person, with whom a country banker has no pre- vious dealings, applies to him for a bill on London, in return for bills of exchange of the same amount ; though the bill given by the banker be dishonored, yet the bills given in exchange will pass to his assignees. (2) But where a customer agreed to pay into a bank (consist- ing of four partners) bills of exchange indorsed, and to take in return their promissory notes — and three of the four partners became bankrupt before the bills were paid in, or their notes taken — and after this was done, then the fourth became bankrupt, — it was held in this case, that the assignees were not entitled to retain the bills so paid in ; the consideration having failed, upon which alone they were parted with. (3) So bills paid in generally, to be received when due, and then to be placed to the account of the customer, must be given up by the assignees, — provided the cash account is in favour of the customer, and the banker's estate is not chargeable with any outstanding engage- ments on the customer's behalf. For it is perfectly clear, as a general rule, that if a customer pays bills into his banker's, although it gives him a right to expect that his drafts will be honored to the amount of the bills paid in, yet the jpvjjKrty in the bills is not altered — they still remaining the property of the customer — although the (1) Bolland V. Bygrave, 1 Ryan (3) Ex parte M'Gae, 2 Rose, &M. 271. 576. (2) Hornblowe?- V. Proud, 2 B. & A. 327. Sect. 5.] AS TO PERSONAL PROPERTY. 431 banker may have a lien to the extent of his advances. In order Reputed to change the property, it must be shown that the banker ^'""^^j^f " bouffht the bills — or discounted them — which amounts to the same thing. (1) And, though bankers may have authority from their customer to discount bills remitted by him, to a certain amount, or for certain purposes, — yet this will not give them an absolute authority to discount all bills, which may be paid in by the customer. Nor, indeed, will it make any material difference, that the special authority to discount is for an uncertain amount, and one which cannot well be ascertained at the time it is given ; — as, where the object is to provide a fund to honor the drafts or bills of the customer, or to reduce the cash balance, when the bankers should be in advance. (2) Bills not due, which are entered sJiort in the banker's Bills e?z- books, are always considered to be the property of the ^^^^^^hort, customer; and must be specifically returned to him, if the given up. cash account is in his favour. But, if they are paid in by Contra, the customer as cash, or are entered as cash with his know- -^^ f" P^l ' in 05 cash,. ledge or consent, deducting the discount, — and he thereupon draws, or is entitled to draw upon the bankers, as having that credit in cash, — it has been decided by Lord Eldon, that the customer will be precluded from recurring to the bills specifically; and that such knowledge or concurrence, on the part of the customer, may be inferred from the usual mode of dealing between the parties. (3) But, notwith- But if en- standing the customer has permission to draw on the ^?,, ,°* bankers to the amount of the bills paid in, yet, if they are not pass entered as bills in the banker's books — and the cash balance, independently of the bills, is in favor of the cus- tomer at the time of the bankruptcy, — the customer has, in that case, a right to have all the bills remaining in specie (1) Per Holroyd J., Thomj)son (.3) Ex parte Sargeant, 1 Rose, v^ Giles, 2 B.&C. 451. 153. Ex parte Pease, ibid. 235. (2) Ex parte Wakefield Bank, igVes. 25. Ex parte iSo//en, ibid. 1 Rose, 24,~. Ex parte Leeds Bank, 155. 18 Ves. 229. ibid. 254. of dis count. 432 OF THE ASSIGNMENT [Ch. 11. Pt2. Reputed delivered up to him by the assignees. And this, too, not- B^K£Rf' witlistanding such bills were indorsed by the customer; unless it can be shown to have been his inicntion to make an absolute transfer of them ; for the indorsement may be niade merely, to enable the banker more effectually to re- ceive the amount from the other parties on the bills, for Indorse- the account of the customer. (1) Indorsement is, how- jmmafade ^^^^'j considered prima /acie evidence of discount, unless evidence the object of mere deposit is clearly shown. (2) If the object is a mere deposit, then it is a breach of faith for the banker to negotiate the bills, unless he is justified in so doing by the state of the customer's account. (3) But (as Lord Eldon has observed in one of the cases upon this subject) it ought to be generally known, that if bills in- dorsed are remitted to bankers, they mai/ dispose of them effectually — as between the subsequent holder and the re- mitter — though contrary to the faith of the understanding between the parties; and the remitter can, then, only come in as a general creditor of the bankers. (4) As to right In the cases which occurred in Boldero's bankruptcy, to retain ^^le Lord Chancellor is reported to have dwelt much on bills, aris- .... ing from a the distinction between a general, and a limited, authority general, OT j.^ discount; — and the bearing of his opinion seems to be, authority that if bankers have a general authority to discount, the to dis- customer in that case would have no right to have the bills delivered up ; and he is of the same opinion, also, (as has been already observed) when the bills are paid in as cash, and the customer is entitled to draw, as having that credit in cash — in which last case, it is conceived, the bankers would (as a matter of course) have, by legal inference, an authority to discount the bills so paid in. With great deference, however, it is submitted, that there is no solid distinction in law, whether the banker has a genet al, or a contracted (1) Thovipson V. Giles, 2 B. & C. (5) Per Bayley J., 2B. & C. 409. 422. (4) Ex parte Pease, 1 Rose, 238. (2) Ex parte Towgood, 19Ves. 246. Collins v. Martin, iB. «&P. 229. : and see 2 B. &C. 429. 648. Ibid. 546. count. Sect. 5.] AS TO PERSONAL PROPERTY. 433 authority in this respect, as far as regards the right of the Reputed customer to reclaim bills remaining in specie in the ^^^^^b^" banker's hands. The principle, which governs nearly all the cases on this subject, is, that in questions between a banker and Jits customer (though not as between the cus- tomer and third persons), the banker is considered pre- cisely in the situation of a factor ( 1 ) ; and has only a lien upon the securities in his hands for his general balance. If the factor has converted the goods of his principal into money ; — or the banker has negotiated (even contrary to good faith) his customer's securities, and turned them into cash ; — then, as money has, generally speaking, no ear- mark to distinguish it from the common stock, neither the principal in the first case, nor the customer in the last, can have a specific claim for such money against the assignees either of the factor, or the banker, in the event of his bankruptcy. But, unless the property is actually changed — either by discounting (2) the bills with the banker — or by the banker himself negotiating them, — it is apprehended, that in whatever way they may have been paid in, or whether the banker had a general, or only a limited, authority to discount, his assignees can have nothing more than a lien for his general balance, if the bills remain in specie in his hands at the time of his bankruptcy ; and that the customer (if the cash account is in his favour (3) ) has a right to have the bills delivered up, upon his indem- nifying the estate against any outstanding acceptances (4) of the banker for his own accommodation. But though a customer has a right to have short bills Holders of delivered up to him, if the account is in his favor, — vet ^^"•'^'■'s fiii> 7- ^ J outstand- the holders of the bankers oidstanding acceptances in favor ingaccept- of the customer have no such right, notwithstanding the f"ces, ° ° have no (1) Collhis V. Martin, 1 Bos. & (3) And see Giles v. Perkins, P. 65 1 . Thompson v. Giles, supra. 9 East, 1 2. Bolton V. Puller, supra. (4) Ex parte Buchanan, 1 Rose, (2) Carstairs v. Bates, 3 Camp. 280. 19Ves. 201. EKpavteBow- 301. ton, 1 Rose, 15. 17Ves. 426.J and see per Holroyd J., 2 B, & C. 451 . F P 434 OF THE ASSIGNMENT [Ch. 11. Pt.2. Reputed shoit bills may have been expressly deposited to answer "^!l^!^rVFc' such acceptances. For these bill-holders, beino; no parties BANKERS. ^ C3 1 to any contract between the customer and the banker, can tl ""] *°t ^''^V6 no lien even in equity upon such short bills; — the bills. object of depositing which was, not for the security of the persons in whose hands the banker's acceptances might be, but for the security of the banker himself^ who became liable on them. But, as the liability of the banker's estate, in respect of such outstanding acceptances, must be exonerated, before any restitution of the short bills can be claimed by the customer — if the customer, there- fore, should also become bankrupt, then his assignees are bound to leave the banker's estate in the same condition, as But Lord the customer must have done himself. . And, as the holders H "" '11 °^ ^^^ outstanding acceptances are, in this predicament, render entitled to be paid out of the produce of such short bills, their claim ^i^Qugh not possessing a direct lien upon them, — the Lord Chancellor will, on petition, order such an arrangement of the property between the two estates of the banker and the customer, as may indirectly render the claim of the except bill-holders available. (1) When bankers, however, be- fore their bankruptcy have received out of the produce of part of the short bills, a sum of money more than suffi- cient to satisfy all their outstanding acceptances for the customer, — their assignees will, then, have no right to retain the remaining short bills to satisfy such acceptances; and, consequently, the holders of the latter will, in this case, have no greater right to be paid out of the produce of the remaining short bills. But, though the bankers may have been in cash sufficient to pay these acceptances, there maj' still be such a state of accounts between them and their customer, as will give them a lien upon the remaining bills; and, in order to ascertain this state of account, the Lord Chancellor will (on the petition of the bill-holders) refer it to the Master, to inquire, whether the bankers had, at the (l) Ex parte Waring, Ex parte /jz^/i-s, 2 Rose, 182. igVes. 5-15. when. Sect. 5.] AS TO PERSONAL PROPERTY. 435 time of their bankruptcy, any lien upon the remaining short Beputed bills in their hands. ( 1 ) ownership: ^. ' BANKERS. v., a customer of the banking-house of D. and Co., transfers to N. (a partner in the firm) certain stock by way , /'' ^ c . J J balance of of security for money borrowed of them, and gives also stock ap- notes for the amount, payable on the stock beins: re-trans- P'op^^t^d to Jinswpi* ferred to him. He pays off these notes ; and afterwards a pai-ti- borrows a further sum on the ioint note of himself and ^" . o\ 11 m his son, without calling for a re-transfer. The stock so transferred (being blended with other stock, of which N. was in like manner possessed by way of security for other customers) is sold by the partnership, except a small balance still remaining in the name of N. — It was held, under these circumstances, that (the other creditors in re- spect of stock having been satisfied their demands) V. was entitled to the whole of this balance, as being sufficiently appropriated by the bankers to answer j^^o tanto the stock originally transferred by N. (2) An order may be applied for to have short bills delivered Order for up, before the assignees are chosen, in case there is a pro- j '^j^k^ii visional assignee, — to whom such order will be a sufficient against protection for what he does, in pursuance of the directions F°^: ^ . . * sional as- contamed m it. (3) sio-nee. 4. Possession as Trustee, Executor, or Administrator. "Where the bankrupt is a Trustee, and at the time of his Trust pro- bankruptcy has any property belonging to his cestui que P^''*y ^^°^^ trust in his possession, which can be distinguished from the to assig- mass of his own property, it does not in this case pass to "^^^• his assignees ; for any presumption of reputed ownership, arising from the fact of possession, is rebutted by the cir- cumstance of the trust. Formerly, when a trustee, or executor, became bankrupt, it was the practice, upon the application of the cestid que trusts, or other parties in- (1) Ex parte Parr, Buck, 191. (5) Ex parte Buchanan, 1 Rose, (2) Vull'umy \. Noble, 3 Meriv. 280. 19Ves.201. Ex parte Burton 595. Bank, 2 Rose, 162. r F 2 436 OF THE ASSIGNMENT [Ch.ll.Pt.2. Reputed ownership: TRUSTEE. Lord Chan- cellor may order trust stock, &c. to be trans- ferred. Cases where trust pro- perty does not pass. terested, to appoint a veceiver of the trust property, the better to secure the effects for the purposes of the trust. (1) But now, by section 79. of the new statute it is enacted, that if any bankrupt shall, os trustee^ be seised, possessed of, or entitled to, either alone or jointly, any real or per- sonal estate (2), or any interest secured upon or arising out of the same ; or shall have standing in his name as trustee, either alone or jointly, any government stock, funds, or annuities, or any of the stock of any public company, either in England, Scotland, or Ireland, — the Lord Chancellor, on the petition of the persons entitled in possession to the receipt of the rents or dividends, on due notice given to all other persons (if any) interested therein, may order the assignees and all persons whose act or consent thereto is necessary, to convey, assign, or transfer such estate, in- terest, &c. to such person or persons as the Lord Chan- cellor shall think fit, upon the same trusts as such estate, &c. were subject to before the bankruptcy; and also to re- ceive and pay over the rents as he shall direct. (3) There are many cases, however, which have decided, that trust property does not pass to the assignees of a bankrupt trustee. Thus, where a bill of sale was made to the bankrupt of certain leases and other property, in trust to pay the debts of the assignor, — the possession of such property by the bankrupt was held not to be a case of reputed ownership. (4) So, where a bankrupt had shares in a trading company, in trust for W., who by his will appointed the bankrupt his residuary legatee, — Lord Redesdale held, that the shares were not left in the bankrupt's possession, so as to entitle his assignees absolutely to them ; but that they were sub- ject to the debts and legacies of W. (5) And where a (1) Ex parte Ellis, 1 Atk, 101. Ex parte Llewellyn, 1 C.B.L. 137. Langley v. Hawke, 5 Mad. 46. (2) Quaere, whether this pro- vision was necessary, as assignees were never considered entitled in any way to trust estates? (3) This section is an extension of the 36 G. 3. c. 90. s. 1., which was confined to government stock, standing in the name of the bank- rupt. {4) Copeman v. Gallant, 1 P. Wms. 524. (5) Joy V. Campbell, 1 Sch. & Lef. 328. Sect. 5.] AS TO PERSONAL PROPERTY. 4Ji7 bankrupt, previous to his bankruptcy, assigned to B. for a Reputed valuable consideration a debt due from A. to the bankrupt, — "trustee' the bankrupt was, in this case, held to be a trustee for B,, and the debt not to pass under the commissioners' assign- ment. (1) So where a lease was granted to W., who after- wards committed an act of bankruptcy, and then executed a declaration of trust in favour of R. ; and on the trial of an issue directed by the Court, it was found that W.'s name was used in the first instance in trust for R. ; — it was held, that the lease did not pass to W.'s assignees ; and that the declaration of trust, though executed after the bankruptcy, was good in favour of R., within the statute of frauds. (2) And where a testator directed, that in case his son should carry on his (testator's) trade for the benefit of himself and his mother, his lease and furniture should not be sold, but that the trustees should permit the widow and children to reside in his house, and have the use of the furniture ; and the widow and son carried on the trade and became bank- rupt, — it was held, in this case, that the furniture, &c. was not in the order and disposition of the bankrupts, and did not pass to the assignee ; — as it was not in the exclusive possession of the widow, but only as connected with that of her children — and, as it was also a possession connected with title, and dependant in the possession of the bank- rupts upon the same trusts, as it would have been subject to, had it remained in that of the trustees of the tes- tator. (3) The same rule also is established in the case of an Exe^ Where cutor^ or Administrator' ^ becoming bankrupt ; for the pro- bankrupt perty they possess in either of those capacities cannot be cutor or assigned bv the commissioners, so as to defeat those who aa"i'nis- o J trator, have a right to follow the specific fund (4) ; not even if such (1) Winch v.Keeley, lT.R.619.; (.5) Ex parte ikfar^in, 2 Rose,331. and see Ex parte £j/«s, 124. Un- 19Ves. 491. win V. Oliver^ 1 Burr. 481. (4) Ex parte Marsh, 1 Atk. 159. (2) Gardner v. Roive, 2 Sim. & Ex parte Llewellt/n, 1 C. B. L. 137. S.346. F r 3 iSS OF THE ASSIGNMENT [Ch. ll.Pt.2. Reputed ownership: EXECU- TOR. Where lands come to him as heir. Where bankrupt's wife an executrix. Where bankrupt executor as well as residuary legatee. fund consists of money^ provided it can be specifically dis- thigiiished and ascertained to belong to the testator, and not to the bankrupt himself. (1) And so, where real estates devolve upon the bankrupt as heir, a specialty creditor of the ancestor may follow the real assets, or their specific produce, in the hands of the assignees. (2) If the bankrupt is the husband of an executrix, the commissioners in this case cannot asssign the testator's goods, which are left in the bankrupt's possession ; for the wife being possessed of them in miter droit, tiie husband can have them in no better right (3) ; and the same, with respect to a bond debt due to her as executrix. (4) So, where the wife of a bankrupt administered to her father, and became possessed as administratrix of his effects, to which she and her infant brothers and sisters were entitled ; and the husband continued the business of the father for their benefit; — Lord Eldon held, that this was not such a possession of the goods by the bankrupt, as could be deemed a leaving them in his order and disposition with the con- sent of the owner — as the infants were incapable in law of giving any consent. (5) Where the bankrupt was executor and residuary legatee, and before his bankruptcy collected in sufficient assets to pay the debts and legacies, and the residue consisted of debts and mortgages due to the testator, — Lord Hard- wicke said, that in such a case, though they could not in law vest in the assignees, as the bankrupt took them in auter droit as exeador, yet that the equitable interest be- longed to the assignees ; and that he would not scruple to let them sue in the bankrupt's name to get in the debts. (6) But where a bankrupt, after obtaining his certificate, (which, however, was subsequently held to have been ob- tained by fraud) became possessed of leasehold premises, (1) Hoivard v.Jemmet, 3 Burr. 13G9. per Lord Mansfield. (2) Ex parte ilfor/ow, 5Ves.449. (3) Ex parte Marsh, supra. (4) Ludloiu v. Browning, 1 1 Mod. 138. (5) Viner v. Cndell, 3 Esp. 88. (6) Butter v. Richardson, I Atk. 213. x\mb. 74. Sect. 6.] AS TO PERSONAL PROPERTY. 439 as executor and residuary legatee, which he mortgaged, Reputed and afterwards assigned the equity of redemption to another ^xecu-^' person; and the deed recited, that the assignment was tor. made for the purpose of paying the debts of tlie testatrix ; and the assignee of the equity of redemption took an as- signment of the mortgacce ; — the claim of the latter was held preferable to that of the assignees under the commis- sion; as tJiei/ could only be entitled to the rights of a re- siduary legatee, and a residuary legatee is bound by an assignment made by the executor for a valuable consider- ation. ( 1 ) Where, however, a bankrupt, who was entided to take WFiere a out administration to the effects of an intestate, neglected ?![^']".^"' to do so, but took possession of the goods and remained adminis- in possession of them for a period of twelve years, — it was tration,re- L 1 1 1 1 • c- 1 1 • 11 mams in nelcl, tliat this ims a case ot reputed ownership, and that possession the goods passed to his assignees. (2) several Section VI. Of Property fraudulently delivered in contemplation of BanJc- 7-aptcy. (And see as to a fraudulent or voluntary Con- veyance, ante, 71. 365.) The vohmtary delivery, or disposal, by the bankrupt of any part of his property, in contemplation of bankruptcy, either to defeat the claims of his creditors generally, or to favour one in preference to others, is held to be fraudulent and void. (3) This doctrine Loi-d Ellenborough has desig- nated as an excrescence upon the Bankrupt law ; under which it was originally considered, that the acts of a trader only subsequent to his bankruptcy were strictly void (4) — {\) Bedford v.Woodhavi, 4:\es. (5) B. & P. 584. 11 East, 260. 40. note (b.) (4) 2 Camp. 168. (2) Fo.v\.Fhhcr,oB.8ck.l35. F F 4 440 OF THE ASSIGNMENT [Ch. ll.Pt.2. Property fraudu- lently de- livered. Transfer by bank- rupt, being insolvent, and with- out con- sideration, void. As to deal- ings two months before commis- sion. As to gift of vioney to a child for his mainte- the act of bankruptcy hemg held to draw the line of separ- ation, between that property which might be disposed of by the bankrupt, and that which vested in the assignees. But it occurred to those who presided in the courts, that it was unjust to permit a party, on the eve of bankruptcy, to make a voluntary disposition of his property in favour of a particular creditor, leaving the mere husk to the rest ; and, therefore, that a transfer made at such a period, and under such cir- cumstances as evidently shewed that it was made in con- templation of bankruptcy, and in order to favour a particular creditor, should be void. (1) In accordance with this doctrine, therefore, it is enacted by the ISd section of the new statute, that if the bank- rupt, being at the time insolvent, shall (except on the marriage of any of his children, or for some valuable con- sideration) have assigned or transferred to any of his chil- dren, or any other person, any goods or chattels, or have delivered or made over any bonds, bills, notes, or other se- curities, or transferred his debts to any other person, or into any other person's name, — the commissioners may, in such case, sell and dispose of the same in the same way, as of the bankrupt's other property. (2) But by secfioti 81. all dealings and transactions with any bankrupt, bond Jide made and entered into more than tiao calendar months before the date and issuing of the com- mission, are declared to be valid, notwithstanding any prior act of bankruptcy, provided the person so dealing with the bankrupt had not at the time notice of any prior act of bankruptcy. It was formerly held by Lord Northington, that a gift of money to a child, for his maintenance and subsistence in the world, could not be supported against ci*editors ; for that no man had such a power over his own property, as to defeat his creditors in the disposition of it, unless for good (1) 1 Star. 89. (2) This section is taken from the iJac. 1. c. 15. s. 5., but the words in italics were not in that statute. Sect. 6.] AS TO PERSONAL PROPERTY. 4-41 conpiueration ; and that blood had been held to be not a Property ^ood consideration. (1) But in a later case Lord Eldon -^f'^^^', held, that a gift of 900/. to his son by a man, who three Uvered. years afterwards became bankrupt (though the gift was not -^— in consideration of marriage, or to buy him a share in a partnership), could be supported against creditors; and that the 1 Jac. 1. c. 15. s. 5. did not extend to a payment of money. (2) And the Court of King's Bench has, also, de- cided to the same effect. (3) The word monei/^ it will be observed, is not comprised in the above section any more than in the statute of James, being confined to things only which are the subject of conveyance. And, indeed, alarm- ing consequences would follow, if the statute was to extend to payments of money ; for a son might, then, be liable to refund any portion of money given to him by his father some time before the bankruptcy, and purely with the intention of providing for his maintenance. Upon the same prin- ciple as that which governed the last two cases, it was held, also, that where one of the partners of a bank from time to time transferred sums of money, to the credit of his son's private account with the banking-house, the son was entitled to prove for the amount under a commission against the partnership. (4-) Stock, it has been decided, comes within the description : Stock. " goods and chattels." Where the bankrupt, therefore, purchased stock in the name of his son (a minor) as a trustee for him, the stock was held to belong to the as- signees. (5) Where a trader advanced to a lessee half of the fine Money ad- necessary to procure a renewal of a lease, and took from vanced by him a promissory note to repay the money, unless he j.j,pj. j^* should by will bequeath the leasehold estate to one of the procure a trader's children, — and the lessee bequeathed the estate hfs^cliilV** (1) Partridge v.Goff,kmh. 596. (4) Ex parte Skirratt, 2 Rose, (2) Ex parte Shorland, 7 Ves.88. 384. Ex parte Smith, 1 Rose, 210. (5) Brown v. Bellnris, 5 Mod. 53. (3) Kensington v. Chantler, 2 M. &S.36. 44-2 OF THE ASSIGNMENT [Ch.ll. Pt.2. Property fraudu- lent! 1/ de- livered. What is a fraudulent prefer- ence. Delivery of goods under a pretended sale; or an ab- solute sale, with an in- tention to prefer. Where not in the usual course of trade. accordingly, but befoi^e his death the trader became a bank- rupt, — and, after the lessee's death, the assignees filed a bill against the child of the bankrupt, claiming the money advanced, or half the estate; — Lord Thurlow held, that if it was money advanced without a lien, it might be dan- gerous to give it to the assignees ; but that, as far as the money advanced was a lien, the father pi'ocured an interest, which must go to the" assignees. (1) With respect to what is, and what is not^ considered an undue preference by the bankrupt of any particular cre- ditor, — each case of this kind must depend upon its own pecuhar circumstances ; of which, perhaps, the most material is, the relative situation in which the bankrupt and the creditor stand with each other, at the time of the delivery, or transfer, of the bankrupt's property. Though the transaction may be made to assume the appearance, of a sale of the goods by the bankrupt to the creditor, yet if other circumstances shew that it was but a ■pretended sale, the delivery of the goods will be fraudulent and void. (2) So, though it may amount to an absolute sale, yet where it appears that the intention of the bankrupt was to give the creditor an undue preference, the sale will, in this case, be equally void as against the assignees. (S) But where a creditor, being unable to procure payment for some barley which he had sold to the bankrupt, and suspecting him to be in bad circumstances, re-purchased the barley by a third person, and in his name, a short time before the bankruptcy — the bankrupt not being privy to the contrivance of the creditor — it was held, that this was no fraud against the Bankrupt law. (4) The delivery of the property also will be considered fraudu- lent, when it is not delivered in the usual course of trade, or of the accustomed dealing between the parties. (5) Thus, (1) Fryer v. Flood, 1 Bro. 160. (2) Rusty. Coojier, 2 Cowp. 629. (.3) Martin v. Pewtress, 4 Burr. 2477. (4) Harris v. Liinell, 1 B. & B. 590. (5) Alderson v. Tcviple, 4 Burr. 2235. 1 Bl, 441. Sect. 6.] AS TO PERSONAL PROPERTY. 443 where a bankrupt, on the eve of his. hanlcriiptcy, indorsed 'Property -, • 1 I , , I'. >^ frmidu- and sent a promissory note by the post to a creditor, to /^^/„ ^^. whom he had never made a payment in sucli a manner Hvcred. before, and no applicatio7i had been on this occasion made by the creditor to the bankrupt for a note, or" for pay- ment, — the transaction was held to be fraudulent and void. ( 1 ) So, where a trader in embarrassed circumstances gave his creditor a promissory note for the "johole of his debt, in consideration of his promise to induce the other creditors to agree to a composition^ each party undertaking to keep the matter a secret from the other creditors (2) ; or, where stock was transferred to a creditor who had struck a docket, in consideration of his agreeing not to prosecute the docket ; — each of these transactions was held a fraud upon the Bankrupt law. (3) And the same, where a bankrupt had, in contemplation of absconding, inclosed certain bills to a creditoi*, saying, " he has the honour to shoix) him that preference, which he conceives is certainly his due ;" — for though the inclosure was made without the privity of the creditor, yet the express motive of the bankrupt was to give him 2i preference. (4) Where a trader also had voluntarily, Where laithoiit being called upon for the money, executed an assign- voluntary, ment of a third part of his effects to his brother, in consi- deration of a previous loan of 120/. — though possession was delivered instantly, and several acts of ownership were exer- cised by the brother, who had no knowledge or suspicion of the insolvency; — yet, as the trader in two days afterwards absconded, and was declared a bankrupt, the Court held the deed void, as partial and unjust to the other creditors (5) — and as being made in contemplation of bankruptcy. So, where a trader (knowing himself to be insolvent) called upon his creditor and informed him of it, when the creditor said, he must nevertheless be paid his debt — which was accordingly done — and the trader immediately afterwards (1) 4 Burr. 2235. N) Harman v. Fisher, Cowp. (2) Wells V. Girling, iB. &B. 117. 447. (5) Linton V. Bartlett, 5 Wils. (5) Cory V. Gertchen, 2 Mad. 40. 47. Cowp. 124. 444< OF THE ASSIGNMENT [CIl.ll. Pt.2. Property fraudvr- lently de- livered. When pay- ment not voluntary. Rent. Payment in the regular course of trade ; became a bankrupt ; — this was held to be a void transaction, — inasmuch as the circumstance, of the trader calling upon his creditor, and disclosing to him his situation, and then ac- ceding directly to his request of payment, afforded strong grounds for inferring a fraudulent performance. (1) So, also, where any voluntary payment is made to a creditor under circumstances, that might reasonably lead the debtor to believe that his bankruptcy was probable, though not in- evitable, — such payment will be a fraud upon the other creditors ; and the money so paid may be recovered back by the assignees. (2) But a payment is not voluntary, which is made by a bankrupt to a creditor, in consideration of the latter relin- quishing some right he then possessed, — although the cre- ditor may not, previously to relinquishing such right, have stipulated for any payment by the bankrupt. Thus, where a creditor who had a lien on the bankrupt's ship, received from him shortly before his bankruptcy the balance due on account of disbursements made on the ship, and then delivered up the ship's papers to the bankrupt, without having previously stipulated for payment of the balance, as a condition for the surrender of his lien, — it was held, nevertheless, that the creditor was entitled to retain this payment as against the assignees. (3) So, where the bank- rupt paid his landlord five quarters' rent, even after an act of bankruptcy, the payment was held to be good ; for the landlord had a right of distress and re-entry for the rent, and he is at liberty to waive that right if he chooses, and accept of the rent instead. (4) And in all cases, where a bankrupt has paid a creditor his debt, in the regidar course of trade, or of their dealings with each other, — this is a fair advantage, which the creditor is not compellable to relinquish; for it is a transaction that might pass between any {\) Singleton \. Butler, 2 B. & {o) Thompsonv. Beatson,\Bmg. P. 283. 145. (2) Poland V. Glyn, 2 Dowl. & (4) Mavor v. Croome, 1 Bing. R.,310. 261. Stevenson v. Wood, 5Esp. 200. Sect. 6.] AS TO PERSONAL PROPERTY. 445 two persons, without having any thing like bankruptcy in Properti/ contemplation. (1) Thus, where a bankrupt, then solvent, ilnuJ^^g. ordered his correspondent at Bombay to remit certain pro- livcred. ceeds to an agent in England, who was in the habit of ac- cepting bills for the bankrupt ; though the remittance was not, in fact, made until after the act of bankruptcy, — yet, as the order was given by the bankrupt when he was solvent, and there was no fraud in the case, it was held, that the agent was entitled to I'etain the amount of this remittance, in satisfaction of a balance due to him from the bankrupt. (2) So, even if the transaction amounts in reality to the pre- or in pur- ference of a creditor, yet if such preference be only con- ''"^"^^ °' ^ J t ^ J a previous sequential to the contract — as, if the payment is made, or agreement. the act done, merely in pursuance of a prior agreement between the parties, — the creditor, in this case, will not be liable to refund to the assignees. (3) Where bankers fraudulently sold out stock belonging to Contem- a customer, which stood in their names, and applied the P'''*^^^ ^P- ' . propna- proceeds to their own use — and afterwards, whilst they tion of remained solvent, wrapped up certain bonds of their P^^P^^'^Y} own in an envelope, inscribed with the customer's name, transferred and inclosed a memorandum stating that they had deposited ""*•" ^^^ the bonds with him, as a collateral security for his stock, bank- which they promised to replace — and then deposited the ruptcy. parcel amongst the securities belonging to other persons who dealt with them — but without giving any information of these circumstances to the customer until the evening before their bankruptcy, when they sent him the parcel with the bonds, saying, that they must stop payment the next morning; — it was held, that the customer could not under these circumstances retain the bonds against the assignees (4) of the bankers; for, though the bankers in- tended to deliver the bonds to him, he had never actual POSSESSION of them, until the very eve of the hanhniptcy ; (1) Per Lord Mansfield, 4 Burr. (3) Per Lord Mansfield, Cowp. 2235. 117. (2) Jamieson v. Hodson, 1 Star. (4) Wilson v. Balfour, 2 Camp. 150. Alley v. Hodson, 4 Camp. 579. .'525. 4<4<6 OF THE ASSIGNMENT [Ch. ll.Pt.2. Property and a contemplated appropriation does not amount to an fraudu- „pf„„i trinsfer lently dc- ^^^^^^ tiansiei. livered. But where a trader, who had obtained bills of exchange p "" from the defendant, upon a fraudulent representation that, restored a security given by him to the defendant (which was void) by bank- ^^^ ^^^ ample security — and on the next day (being resolved which he to Stop payment) informed the defendant, that he had re- had ob- pented of what he had done, and had sent express to stop under false the bills, and would return them — and three days after- pretences, wards committed an act of bankruptcy — after which he returned to the defendant all the bills (except one that had been discounted), and also two bank notes, part of the pro- ceeds of such discount — upon which the defendant delivered back the security — and afterwards a commission issued against the trader, and his assignees then brought trover against the defendant for these bills and bank notes ; — it was held, in this case, that the defendant was entitled to retain all the bills and notes so returned by the bankrupt, on the ground that the bills were originally obtained under a false ■pretence of giving a good security ; and that since, under such circumstances, a court of equity would order the pro- perty to be restored, it would be useless for a court of law to permit that to be recovered, which could not be retained. (1) Threat So where a trader, under a threat^ or an apprehension or appre- merely^ oj legal process, civil or criminal — or from the pressure legal pro- (^nd importunity of his creditor — delivers property to him, or cess. gives him a power to receive it; — the transaction in any of these cases is not considered a fraudulent preference, even though the trader knew himself to be insolvent; for the act on his part is not a voluntary act (which is implied in the PREFERENCE of One Creditor to another) — but one, which proceeds from the effect of fear or apprehension. (2) And (1) Gladstone v. Hadtven, 1 M. ?«o?r, 5 Ves. 85. Yeatcsw. Grove, & S. 5 1 7. 1 Ves. jr. 280. Holbird v. Anderson, (2) Thompson \ . Freeman, i T. 5T. R. 235. Smith \. Payne, gT. R. 155. Cosscr v. Gojigh, ibid. R. 152. C7-osby y. Crouch, '2Ci\mp. 156. note (c.) Hartshornv. Sloddcn, 166. 11 East, 256. De Tastct v. 2 B. & P. 582. Ex parte Scuda- Carrol, 1 Star. 88. Peid v. Ayton, Sect. 6.] AS TO PERSONAL PROPERTY. 447 even where a trader, in contemplation of bankruptcy, is Property intending to give a creditor a voluntary preference, but [^^iiiy'd^. before the intention is consummated, the creditor calls and Hvcred. demands payment of his debt, — the payment in such a case has been held to be good. (1) But where the transfer or delivery of property (upon the Where importunity of a creditor) does not redeem a trader from any (^^^^^ jiresent diffiadtij, vv'hich is tlie ordinary motive for such an redeem act, when really done under the pressure of a threat ; — Jvom an ' this has been held to be evidence that the transfer was not present made under such pressure, but voluntarily, and with a view '"Acuity. to prefer the particular creditor in contemplation of bank- ruptcy. Thus, where a trader, upon being pressed by a creditor for payment or security (one or other of which he said he ivoidd have) gave a bill of sale of what was ap- parently the "di/iole of his stock, and immediately afterwards left his business and home, and became a bankrupt; — this transaction, notwithstanding the pressure, was held void as against the assignees. (2) But even a voluntary transfer of property, made by a Voluntary trader in a situation of impending bankruptcy, will not be ti'ansfer void, if made hond fdc, and not from any motive of undue not from -preference. As, in a case, where certain traders ordered motive of goods of a manufacturer to be sent to their agents to be ference. shipped — and after the goods were delivered to such agents, (the traders having stopped payment) the manufacturer got possession of the goods, by indemnifying the agents for delivering them up to him : the traders called a meeting of their creditors, and were encouraged by the result of such meeting, as well as by legiil advice, to give up all claim to the goods to the manufacturer, which they accord- ingly did the latter end of July, but did not commit an act of bankruptcy until the 26th of September ; and the 1 Holt, N. P. Rep. 503. Arboidnw (2) Thornton v. Hargreaves, Hanbury, ibid. 575. 7 East, 544. (l) Baylcy v. Ballard, 1 Camp. 416. 448 OF THE ASSIGNMENT [Ch.ll. Pt.2. Property fraudu- lently de- livered. Or merely contem- plating that his trade must cease, without contem- plating bank- ruptcy. Or in con- templation of an in- tended deed of composi- tion. Property given up by agree- ment, at a meeting of creditors. Court held that the above circumstances were evidence for a jury to find, that the goods were given up bond Jide, and not from any wish to give an undue preference. (1) So, though a trader may contemplate that his trade must cease, and that he cannot pay his creditors unless they give him time, it does not necessarily follow, that he con- templates bankruptcy. Thus, where B. had purchased goods on October 8th, for the purpose of exportation ; but finding that he must stop payment, and that he could not apply the goods to the purpose for which they were bought, he returned them to the seller on October 16th : — on the 17th he stopped payment, but, expecting remittances from abroad more than sufficient to pay his debts, he had no doubt but that his creditors would give him time, which they, however, refused, and a commission issued against him the 2d November ; — It was held, that under these facts the jury were warranted in finding, that the re-delivery of the goods to the seller was not made in contemplation of hanTcruptcy. (2) So also, where a preference is given by a trader, in contemplation of an intended deed of composition, — though it would have been fraudulent as against the credi- tors under that deed, if it had been carried into effect — yet, as a commission of bankruptcy did not issue until four months afterwards, this was held to be not a preference in contemplation of bankruptcy ; for no commission was, in fact, contemplated, at ihe time the preference was given. (3) And where a merchant in London received bills of ex- change from his correspondent at Amsterdam, to whom he was indebted beyond the amount of the bills ; and after stopping payment, called a meeting of his creditors on the 1th January, when it was agreed that the bills should be delivered to an agent in London of the creditors at Amster- dam, in order to receive the money and hold it for the (1) Dixon V. Baldwin, 5 East, 175, (2) Fidgeon v. Sharp, 1 Marsh, 196, 5 Taunt. 539. (3) Wheelwright 5 Taunt. 109. V. Jackson, 8eCt. 7.] AS TO PERSONAL PROPERTY. 449 persons who might be ullhiiateiy entitled to it: the bills, Stoppage however, had been previously delivered by the merchant to such agent, for the use and on the account of the credi- tor at Amsterdam, and the agent received payment of the bills as they respectively became due: the act of hank- rujJtaj was not committed till October following, when a commission issued against the merchant : — under these circumstances. Lord Ellenborough held, that the assignees could not maintain an action against the agent for the amount of the bills ; as they were deposited with him for the use and benefit of the creditor, and the bankrupt might, at the time of the deposit, have himself directly returned them to Amsterdam. (1) Section VII. Of the Effect of the Assig?im(mt upon Goods in transitu^ — and herein of the llight of Stoppage. The assignment of the commissioners does not pass any property to the assignees in goods consigned to the bank- rupt, which may be stopped in transitu, — whether such goods are consigned to the bankrupt himself, or whether he obtains possession of them in their transit to the hands of the regular consignee. The right of stoppage in transitu is a privilege, which Nature of the law affords to every vendor who has not been paid for '•'^^ ""'S'"^ 1 • t 1 • If • 1-1 c of stoppage goods, m order to protect nmiseli against the insolvency ot j„ transitu. the vendee. Though forming part of the general law of merchants (2), it seems with us in England to have been first established in the Court of Chancery, as a kind of (1) Graff V. Greffulhe, 1 Camp, session of an insolvent vendee, he 89. is entitled to have it back again ; (2) 6 Robins's Adm. Rep. 325. (l East, 515. Abbott on Shipping, In Russia and in France, if a seller 33.3. et scq.) ami this was also the can merely identify the property, rule of the ancient civil law, Dig. though it may be in the acttialpos- IS. 1. 19. G G 450 OF THE ASSIGNMENT [Cll.ll. Pt.2. Stoppage in ti'ansitu. Can only be exer- cised, when vendee proves insolvent. equitable lien(l); and to have been afterwards adopted by the courts of common law, for the purposes of substantial justice, and to prevent the debts of one man being paid with the effects of another. (2) But, from whatever source it sprung, it is a right now universally recognized in all cases between an unpaid vendor of goods and the vendee ; so much so, indeed, that Lord Hardwicke once observed in a matter of this kind, that if the assignor could get his goods back again by any means, provided he did not steal them, he would not blame him. (3) As between the vendor and vendee, however, the right does not (strictly speaking) exist, unless the vendee prove insolvent ; for if a vendor, from misinformation, or excess of caution, assumes this privilege during the vendee's solvency, he assumes a right which does not belong to him ; and the vendee would, in such case, be entitled not only to the delivery of the goods, but also to indemnity from the vendor for the expenses in- curred in obtaining possession (4) of them. But it is not necessary, that the vendee should be actually insolvent at the time the goods are stopped ; for if he proves to be so before the ordinary time, when they would have reached their destination, the vendor will in that case have been justified in the exercise of this right, and to the benefit of his own provisionals) caution. In the multifarious changes of ownership, however, which merchandise is occasionally subject to in its transit from one trader to another, questions of difficulty will frequently occur between the consignor and third persons, — when the con- sisnee assiijns for a valuable consideration the bill of lading (1) Wiseman V. Vandcput, sVern. 205. Snee v. Prescotl, 1 Atk. 245. D^Aqvi/a V. Lambert, Anib. -"99. 2 Eden. Rep. 75. (2) 7 T.R.445. (3) Snee v. Prescott, 1 Atk. 250. Lord Kenyon said, (3 T. R. 467.) that the doctrine of stojjping goods in transitu was bottomed on Snee V. Prescott, on which all the other cases were founded ; but the right was recognized in Wiseman v. Van- deput, 2 Vern. 20."., long before the case of Snee v. Prescott oc- curred. (4) Per Sir W.Scott, 6 Rob. Adni. Rep., case of The Constantia ; and see Ellis v. Hunt, 5 T. R. 469. (.5) Ibid. Sect. 7.] AS TO PERSONAL PITOPERTY. 4-51 of the goods transmitted to him by tlie consignor, and Stoppage without notice (on the part of such third persons) that the "^J^^^^^- goods have not been paid for by the consignee. It is pro- Division posed, therefore, to consider the right of stoppage in trajisitu ? ^ under two divisions : firsts as it relates to questions simplv between the ronstgnor and consignee, where there has been no resale, or alienation, of the goods by the consignee; and, secondly, as to questions between the consignor and third persons, where there has been such resale or alienation. An(\, first, as to questions between the consignor and con- Questions signec, where there has been no resale, or alienation by the ''^'^^^'^^" . 'J consig7ior consignee. and con- All goods not paid for by a consignee, may be stopped -"g"^*^- by the consignor in any period of their transit, ere they reach the hands of the consignee (1), whether delivered to a idiarfitigcr (2), a carrier, an innJceeper (3), a master of a vessel (4^), or in fact to any other person, either to forwai'd, or to carry and deliver to the consignee. And When de- even when goods are delivered to a common earner, or on "^'^'■'^" ^^ '^ , ^ a common board a general skip, at the request and appointment, and cank-r, or in the 7iame of the consignee, and at his risk and expense: °" lioarda the consignor is nevertheless entitled, if the consignee be- thin, may come insolvent before the goods ari-ive, to stop them in l^e stopped. transitu. (5) For a delivery of this nature to a carrier, or master of a ship, being made merely for the purpose of forwarding the goods to their destination, is only a con- structive, and not an actual delivei y to the consignee ; and, though in cases as between buyer and seller, if no bank- ruptcy or insolvency happen, the goods in such a case may be considered in the possession of the buyer the instant (1) Wiseman v.Vandepui, 2 Y em. (4) D'' Aquila v. Lambert, Amb. 20.3. Ex parte Clare, 1 C. B. L. 399. 2 Eden, 75. 1 C. B. L. 382. 383. Snce v. Prescott, 1 Atk. 245. Ex parte Willcinson, cit. Anib. 400. Northey v. Field, 2 Esp. G13. Bir- Ex parte Walker, 1 C. B. L. 394. kett V. Jenkins, cit. Cowp. 295. (5) JValky v. Alontgomcri/, 3 East, (2) Mills V. Ball, 2 B, & P. 457. 585. (3) Hunter v. Beat, cit. 3 T. R. 466. a G 2 452 OF THE ASSIGNMENT [Ch. 11. Pt.2. Stoppage iti transitu. So to a packer or whar- finger. So plate delivered to an en- graver. Contra, when buyer uses warehouse of the carrier, &c. as his own. Or where there is a they go out of the possession of the vendor ; yet, in the event of the hanla-ivptaj of the vendee, an actual delivery is necessary to divest the vendor's right of stopping the goods in transitu. (1) And the same, when the goods are delivered to a jpacher, or nsoharjinger, at the request of the consignee, to be forwarded to their place of ultimate desti- nation ; for, in such a case, the packer, or 'wharfinger, is con- sidered merely as a middle man, and only one of the hands by which the gOvods are to be forwarded. (2) So, where A. agreed to buy some articles o^ jplate of B., who was to 'j-et A.'s arms engraved upon them, and to pay for the en- graving; it was held, that a delivery to the engraver for that purpose, was not a delivery to A., so as to defeat B.'s right of stopping the plate in transitu. [3] But, where the buyer of goods has no warehouse of his Olson to receive them, except that of a packer, or a 'mhatjinger, and is in the habit of using their warehouse as the general repository of his goods, the transitus in this case will be at an end, when the goods arrive at such warehouse ; for the packer and nx>harjinger are then considered as the private agents of the buyer, and their possession as that of the buyer himself. (4) And so, where a ti'ader in London, having no X'oarehouse of his own, was accustomed to pur- chase goods at Manchester, and export them to the continent ; and the goods after their arrival in London re- mained in the waggon-office of the carriers, until they were removed by the trader for the purpose of being shipped ; — it was held, under these circumstances, that the transitus of the goods was at an end on their arrival at the waggon- office. (5) It was said indeed by Lord Mansfield, that goods re- (1) Per BuUer J. Ellis v. Hunt, Z T.R. 469. Per Lord Hardwicke, 1 Atk. 248. Stokes v. La Riviere, cit. 5 T. R. 466. (2) Mills V. Ball, 2 Bos. & P. 457. Hunt V. Ward, cit. .■jT.R. 467. (3) Owenson v. Morse, 7 T. R. 64. (4) Scott V. Pcttit, 3 Bos. & P. 469. Richardson v. Goss, ibid. 127. Per Chanibre J. Leeds v. Wright, ibid. 520. (5) Rowe V. Pickford, 1 Moore, 526. R Taunt. R.o. Sect. 7.] AS TO PERSONAL PROPEIlTy. 45$ maiuecl ifi transitu, until they came to the corporal touch of Stoppage the vendee. (1) But this is merely a figurative expression, ' and has never been literally adhered to. (2) For, where .lymbolical the goods are bulky, there may be a symbolical delivery of ""'"^''i'- them, without any change of place, or without the vendee even seeing them — such as a delivery of the kej/ of the warehouse (3) where they ai'e deposited — or by the transfer of any other indicia of property, — of West India Dock warrants, for instance, where the goods are lying in the company's warehouses. (4) In such cases it is quite sufficient, if the goods come virtually into the possession of the vendee, and he has exercised over them some act of ownership. (5) Where goods were consigned to a bankrupt in the Where countrv, and as soon as they arrived at the inn there, his consignee T , . , puis Ills assignee went and put his marl: upon them, but did not mark on take them away ; — it was held, nevertheless, that the con- *''^ goods. signer could not afterwards stop them, as this was a suffi- cient taking possession of them, so as to prevent their being considered any longer in transitu. (6) A vendor, however, does not lose his right, by the consignee merely making a -prior claim to the goods ; for there must be either a delivery i or some taking of possession by the vendee, in order to divest the vendor effectually of his right to stop them. (7) And ihepaijment of freight for the goods by the Payment consignee, or his agent, appears not, of itself, to be a suffi- oifreJg'^t. cient taking of possession, so as to deprive the consignor of his right of stoppage. (8) But in all cases, where the goods are delivered by the Delivery vendor to a particular agent, appointed by the vendee, with- ^? ^^"" (1) Hunter V, Beat, cit. 3 T,R. Samuda, 1 Holt. 395.; and see 466. 6 G. 4. C. 94. s. 2. (2) Per Lord K. 3 T. R. 468. (5) Wright v. Lawes, 4 Esp. 82. (3) Per Lord EUenboroiigh, (6) Ellis v. Hunt, 3 T. \l. 464. 12 East, 618. Per Lord K. 1 East, (7) 1 Atk. 245. Amb, 39<). 2 B. 192. & P. 457. (4) Keyser\. Suse, Gow. N.P.C. (s) uMi/h v. Ball, 2 B. & P. 4«7. 58. Lucas V. Dorricn, 7 Taunt. Kinlock\.Craig,3T.R.\\9, 276. 1 .Moore, 29. Zmnger v. G (; 3 454. OF THE ASSIGNMENT [Ch.ll. Pt. 2. Stopjmge in transitu. Where vendor gives a delivery note on whar- finger, and nothing remains to be done. Where something does re- main to be done. out being subject to any ulterior destination, and remain entirely under the vendee's control, the right of the vendor to stop in tramit%i is at an end. (1) So, if goods at the time of the sale are in the hands of a wharfinger, (though not appointed by the vendee, but having been previously deposited with him by the vendor) and the vendor delivers a note to the vendee, ordering the wharfinger to deliver the goods to him : and the wharfinger receives the note, and nothing remains to he done hy the vendor in order to complete the sale; — the wharfinger is, in this case, bound to hold the goods as the agent of the vendee, and the vendor cannot countermand the order for delivery ; nor is a transfer in the wharfinger's book, as we have before seen (2), necessary to complete the delivery. (3) But in all cases, where any material acts (previous to the delivery of goods) remain to be done by the vendor, or the wharfinger — such as the weighi7ig, or measurhig, of the goods, or the separation of the quantity sold from the general bulk, — the order for delivery may in that case be counter- manded (4), tliough it is even actually entered in the (1) Dixon v. Baldwin, 5 East, 175. (2) Ante, 412. (,5) Harman v. Anderson, 2Cam^. 243. Whitchouse V.Frost, 12 East, 014. (4) Wallace v. Breeds, 15 East, 522. Hanson v. Meyer, 6 East, 614. Hawes v. Watson, 2 B. & C. 548. BuggY. Minett, 1 1 East, 210. Austin v. Craven, 4 Taunt. 644. White v. Wilks, 5 Taunt. 176. 1 Marsh. 2. Zagiiry v. Furnell, 2 Camp. 240. It is impossible to reconcile the case of White v. Wilks v^ith that of Whitchouse v. Frost, supra ; the latter case deciding, that the delivery of a quantity of oil was complete, though the oil sold had not been actually sepa- rated from a larger quantity l)e- longing to the vendor; — anil the former, that such previous separa- tion was absolutely necessary, be- fore the tlelivery could be con- sidered perfect. It was observed by Sir J. Mansfield C. J., that the difficulty was nmch greater in holding a commodity in a liquid state to be delivered, when not separated from the general mass, — than where the goods are of a solid substance. And the case of White- house V. Frost was, as to this par- ticular point, much questioned by the judges in Austen v. Craven, 4 Taunt. 044. Upon the whole, the better opinion seems to be, that wherever goods are in a general mass, whether in a solid, or a liquid state, a separation of the quantity sold is indispensable, to prevent the vendor's right to countcrmantl the order, and stop the delivery Sect. 7.] AS TO PERSONAL PROPERTY. 455 wharfinger's books, and the goods transferred into the Stoppage name of the purchaser. ( 1 ) injransHu. It has been tlecided in one case, that though goods are Where permitted to remain in the warehouse of the vendor, yet, if vemlor he receives "dinrehonse rent for them, this amounts to such a rent for dehvery, as prevents the vendor's right of stoppage in tran- goods not situ(Q,) ; though this circumstance alone would not, if the.' ,„., vendor become bankrupt, prevent his assignees from sub- stantiating a claim, founded on the principle of reputed owner ship. (3) A delivery of j^^^'t of a consignment of goods to the Delivery consignee, in general, puts an end to the transitits of the ^ ^'T'' whole. (4) But where a carrier landed a part of the goods on the vendee's wharf; and then, finding that the vendee had stopped payment, reloaded the same on board his own barge, and took the whole of the goods to his own pre- mises, — it was held, that this did not amount to a delivery of the goods, so as to divest the consignor of his right to stop in transitu ; for the special propcrti/ remained in the carrier, after such part delivery, until the freight xvas paid — or until he had done some act to shew, that he assented to part with the possession of the goods, without receiving his freight. (5) Where goods are delivered on board a ship in the actual Delivery possession of the vendee — that is, one which is let to ^/l board a him for a certain period, and over which he has the entire possession management and control (6) ; — or if goods are delivered of vendee, to the vendee at a wharf, and are afterwards shipped by him (7); — the vendor has then in neither case a right to stop them in transitu. But this rule may be controlled in (1) Shepley v. Davis, i Marsh. 504. Hammond v. Anderson, lN.R. 252. Bits/c V. Davis, 2 M. & S. G9. 597. (5) Crawshay v. Eamcs, 1 B. & (2) Hurry V. Mangles, 1 Camp. C. 181. 452.; but see per Heath J. STaunt. (6) Fowler \. Kymer, cit. 7 T. 179. R. 440. I East, 522. 3 East, 396. (5) See ante, 410. et seq. (7) Nohlc v. Adams, 7 Taunt. 59. (4) Slubey v. Hay ward, 2 H. B. G (> 4 456 OF THE ASSIGNMENT [Ch.ll. Pt.2. Stoppage in transitu. Where vendee has no actual control over the ship. Where a specific pledge of cargo. some measure by the laws of a foreign state, upon a trans- action taking place within the foreign jurisdiction: as, where goods were put on board a ship in a port of Russia, and the consignors (who are by the law of that country entitled to sue out process, and retake their goods on board any ship, and retain them till they are paid for,) applied to the captain of the ship to sign the bills of lading to their order (which he complied with) without the necessity of suing out process ; — this was held to be a sub- stantial compliance with the Russian law on the part of the captain ; and that he was consequently bound to deliver the goods to the order of the vendors, and not to the assignees of the vendee, wlio had become bankrupt. (1) And where the vendee has no control over the ship, but merely enters into an agreement with the master, for the ship to go to a particular port, and there receive goods on his account, — the delivery of goods on board a ship, under these circum- stances, is not a delivery to the vendee; but the goods may be stopped in transitu, as they might on board a general ship, without reference to the laws of any foreign state. (2) But where there is a specijic pledge of a cargo, by express agreement between the parties, accompanied with an in- dorsement and delivery of the bill of lading by tlie con- signor to the consignee, — then, after the goods are once put on board the ship by the consignor, it seems that he has afterwards no right to stop them in transitu. Thus, where a merchant at Liverpool, desiring an extension of credit upon a banking-house in London, agreed (among other securities) to consign certain goods to a mercantile house in London, consisting of the same partners as the banking- house, though under a different firm — and accordingly remitted the invoice of a cargo, and the bill of lading in- dorsed in blank, to the mercantile house — but the cargo was prevented from leaving Liverpool by an embargo, and (l) Jnglis\. Uxhcrwood, 1 East, (2) Bohtiinck v. Inglis, 3 East, 515. ."KI. Sect. 7.] AS TO PEHSONAL PROPERTY. 45f the consignor then became bankrupt, considembly indebted Stoppage to the bankers; — it was held, that these circumstances " ^ ^^"^' "' amounted to an actual transfer of the goods by the con- signor to the consignee ; and that, upon the delivery on board the ship, they became vested in the consignee. (1) So, whei'e C. advanced money to A., on an express agree- ment from A., that the proceeds of a cargo of fish (which A. had consigned to B. for sale) should be remitted to C, in order that they might constitute a security for the money advanced by C. ; — it was held, that this was an appropriation of the proceeds of the cargo ; which A. could not rescind, by afterwards writing to B., that the cargo was not to be responsible for any advances made by C. ; — for his en- gagement with C. was not like a mere order for payment of money, which might be revoked by a subsequent counter- mand before payment ; — and that B., under these circum- stances, was justified (as against A.'s assignees) in remitting the proceeds to C. (2) Though the consignor has a right to stop the goods at As to vea- any time before they reach their journey's end, yet it has s right been said, that if the vendee meet them upon the road, and possession take them into his own possession, the goods will then have °' goods arrived at their journey's end with reference to the right of vova^e stoppage. (3) But in a case, where upon the arrival of a completed, ship at her port of discharge, the assignees of the con- signee (who had become bankrupt) took possession of the cargo, and the ship was afterwards obliged to perform quarantine, during which the cargo was claimed by the consignor, — it was ruled by Lord Kenyon, and his opinion was afterwards approved of by the Court of King's Bench, that the consignor had a right to stop the goods, as the ship had not completed her voyage until quarantine was performed. And he is reported to liave added, that if a consignee had a right to go out to sea (I) Hmlle V. Smith, 1 B. & P. {'■X) Fisher v. Miller, iBing. 150. 563. J iiiid see Vertue v. Jewell, (3) Per Lord Alviiiiky, 2 B. & 4 Camp. 51. P. 461. 4-58 OF THE ASSIGNMENT [Ch. 11. Pt.2. Stoppage in transitii. Right of stoppage not de- feated, when. May be exercised without taking ac- tual pos- session. Delivery by mis- take. Vendor cannot ob- tain an in- junction to stop. to meet the ship, in order to take possession of goods on board Jier before the termination of her voyage, it would go the length of saying, that he might meet the ship coming out of the port from whence she had been consigned, and thus immediately divest the property out of the consignor, and vest it in himself — a position which of course could never be supported, as there would then be no possibility of stop- page in transitu at all. (1) There may, however, be a dis- tinction between carriage by sea, and carriage bj/ land upon this point; for, in the former case, the master of the ship, by signing the bill of lading, agrees wit/i the consignor to deliver the goods at the destined port ; which therefore gives no authority to the consignee to demand them before their arrival (2); — whereas, in the latter case, no such ex- press agreement is entered into between the consignor and the carrier. The vendor is entitled to stop the goods in every part of their transit to the place of their destination ; and, therefore, his merely handing over the shipping note and delivery order to the wharfinger before their arrival, was held not to transfer the property so entirely as to defeat his right to stop the goods, by an order to that effect given to the wharfinger two days before their arrival. (3) And the right may be exercised also, without taking actual possession of the goods; — for a claim made by the consignor upon the carrier, or middle man, is sufficient for that purpose. (4) And if a carrier, after notice from the vendor to stop the goods in transitu, deliver them to the vendee by mistake, — the sale to the vendee is nevertheless rescinded ; and the vendor may bring trover for them against the vendee. (5) A court of equity, it seems, will not assume a jurisdiction to stop in transitu, notwithstanding the rigJit is recognized in the vendor ; and, therefore, an injunction was refused (1) Hoist V. Pownall, 1 Esp. 240. (2) Abbott on Shipping, 388. (.3) Ackerman\. Humpkrey, Carr. N. P. Rep. 53. (4) Hoist V. Potvnall, 1 Esp. 240. Norlhey v. Field, 2 Esp. 613. (5) Lilt V. Cotvley, 7 Taunt. 169.; but see Coxe v. Handcn, 4 East, 211. Sect. 7.] AS TO PERSONAL PROPERTY. 469 to restrain the sailing of a vessel, which contained goods Stoppage sold to a person who had become insolvent, though the "' vendor retained his right to stop /// transitu. (1) The consignor may expressly reserve to himself, the Consignor riffht of determininii; isohen he will part with all control "'^^ '^'^T serve when over the goods consigned, so as to abandon any further his richt right to stop them in transitu. Therefore, where the o^^top- ni"'G sliill master of a ship, on board of which the goods were laden, cease. gave a receipt fur them to the vendor — which receipt it was the practice to exchange afterwards with the master for the bill of lading, the holder of the receipt being considered as the person alone entitled to the bill of lading, and the receipt keeping full control over the goods till given up ; — it was held, that though the vendee had got possession of a bill of lading of the goods, which had been improperly obtained from the master without the consent of the vendor, yet that the vendor, continuing in possession of the receipt, was entitled to stop the goods in transitu. (2) And so, even where the receipt for the goods had been merely demanded of the master, and which was refused to be signed by him at the time of the delivery on board ; — for the delivery was not perfect and complete, until that receipt was given. (3) If goods consigned are lodged in the king's stores, on Goods in account of the duties not being paid, the consignor may ^^^^ king's stop them, if he claim them before they are actually sold house, for the payment of the duties ; or if sold, he is entitled to the proceeds after payment of the duties. (4) A payment by the consignee, o^ part only of the purchase Payment money, does not bar the right of the consignor to stop the ^^'P^''t> or goods in transitu. [5) Neither is the consignor barred, where of bill'dis- the consignee has accepted bills (which are afterwards dis- lionoured. honoured) on the credit of the consignment; for thei*e is a (1) Good/tart v. Loivc, 2 J.& W. (3) Ruck v. Hatfield, 5 B. & A. 349. G32. (2) Craven \. Ryder, 6 Taunt. (4) Northcijv.Field,2^'i\->.6\3. 433. 1 Molt, 100. 2 Marsh. 127 (5) Hodiison\. Loy, I'V.M.'i'iO. 4^60 OF THE ASSIGNMENT [Ch.U. Pt.2. Stoppage in transitti. When ac- ceptance equivalent to pay- ment. When a transac- tion is in effect a sale. A vendor, or con- signor, only can stop. A lien does not give the right. great difference between actual payment^ and a liability to pay. (1) But it has been ruled by Lord Ellenborough at Nisi Prius, that unless the vendee's acceptance is proved to have been dishonoured^ the consignor has no right to stop in traiisitu ; for he then stands in the situation of a paid seller. (2) And this is consistent with what Lord Chief Jus- tice Abbott lays down in Sowerby v. Brooks, viz. that the acceptance of a bill, which is afterwards duly paid, is equi- valent to a payment at the time of the acceptance. (3) But though questions, as to the right of stoppage in transitu, generally occur between a vendor and vendee, yet the right also extends to cases where the contract between the parties is in effect a sale, and the consignor is substan- tially the vendor of the goods. Thus, where a trader here gives an order to his correspondent abroad, to procure and ship for him certain goods, — which the latter procures upon hiscmn credit, without naming the trader here, and ships to him at the original price, charging only his commission ; — the correspondent abroad is so far a vendor, as between him and the consignee, that on the bankruptcy of the latter, he may stop the goods in transitu. (4) But, where a trader here ordered a correspondent abroad to ship him goods, for the amount of which his agent there accepted bills upon receiving a commission ; and the agent also transmitted to the trader the bills of lading which he had received from the trader's correspondent ,- — it was held, that the agent could not stop the goods in transitu, as he was no more than a surety for the price, and neither vendor, nor consignor. (5) A mere lien, however, upon goods does not give the consignor the same right to stop m transitu, as the right of property in them does. Therefore, if a man has a lien (1) Feisev. Wray, 5 East, 93. Xintochv. Craig, ST.R. 122. 78.3. (2) Davis V. Reynolds, 1 Star. n5. (3) 4 B. & A. 525. ; and see Haivkins v. Penfold, 2 Ves. 550. (4) Feisc V. Wray, 5 East, 93. (5) Siffkcnv. Wray, 6 East, 371. Sect. 7.] AS TO PERSONAL PROPERTY. 4$1 upon goods for work done to them, and he afterwards Stoppage delivers them to a carrier, to be conveyed on account and _J ^"' at the risk of his principal, he cannot recover his lien by stopping the goods in transitu, and procuring them to be re-delivered to him. (1) Wlien a party remits money on a j)articular accoimt, or When vio- for a particnlar purpose, it may be stopped iti transitu ; "^^ ^^^ but not, where it is a general remittance from a debtor to his creditor on account of his debt. (2) The consignor of goods for sale, on the joint account of Where himself and the consignee, may stop them in transitu. {^) fohid^Tiv- So, where the sale is to a party trading under a licence terested. with an hostile country, a vendor, though an alien enemy, Where is entitled to stop ; for the licence gives to both parties the alien ene- benefit of the contract. (4') i"y. As a vendor, who is paid for the goods, cannot stop A paid them in transitu, as against the person to whom he sold ^^"''o^ _ *= ... . cannot them, — so neither can he exercise this right, on the in- stop solvency of a subsequent vendee. Thus, where A. sold goods ^gfi"^^ ^ •' ^ . • 1 r 1 subsequent to B., (which were then entered m A.'s name m the books vendee. of the West India Dock Company) and indorsed and de- livered the dock-warrant to B. ; who afterwards sold the goods to C. on credit, and delivered to him the dock war- rant ; — it was held, that A. could not, on C.'s insolvency, lawfully take possession of the goods, though they con- tinued to stand in A.'s name, and the warrant had never been lodged with the company. (5) A vendor is not deprived of his right of stoppage, by any Vendor v^age among carriers to retain goods as a security for the privedof general balance due to them from the vendee ; and may his right reclaim the goods out of the carrier's hands, upon payment of "^^iers of the price only of the carriage of the particular parcel of goods consigned. (6) Neither is a vendee, who has paid (l) Sweet V. Pym, 1 East, 4. (5) Spear v. Travers, 4 Camp. (.2) Smith V. Bowles, l^?,^. 5ns. 251.; and see eG.I. c. 94. s. 2., (3) Newsomv. Thornton, 6 East, and post. 462. 17. (6) Opjienheim v. Russell, 3 B. (4) Fenton v. Pearson, 1 5 East, & P. 42. 419. 462 OF THE ASSIGNMENT [Ch. 11. Pt.2. Stoppage in transitu. the price of the goods to the vendor, deprived of his right to receive them from the carrier, by a similar usage as between the carrier and the vendor. (1) Right as between consignor mid third persons. Holder of bill of lad- ing to be deemed the true owner, un- less notice to the con- trary. 2cZ/j/, As to questions between the consignor and third j)ersonSi where there has been a resale, or alienation of the goods by the consignee. The right of a consignor to stop in transitu — where there has been a resale or alienation of the goods by the vendee, or consignee, before their arrival or complete delivery to him • — until very lately, depended mainly upon the ques- tion, whether the third person claiming under such resale or alienation, had, or had not, notice, that the consignor had never received payment or value for the goods ; and also upon the acts of the consignor himself, in so far as they amounted either to a preservation of his right of stoppage in transitu — or to an abandonment of it, by his assenting to a perfect delivery or transfer of the goods, whether to a first or a second vendee. But the law in this respect has undergone a material alteration by two recent acts of parliament (the 4 G. 4. c. 83., and 6 G.4. c. 94.) — by the last of which (2) [sect. 2.) it is enacted, that where any person is entrusted with any hill of lading, or other mercantile document for delivery of goods, he shall be deemed the true owner of the goods, so far as to give validity to any contract made by such person for the sale or disposition of them, or for the de- posit or pledge thereof, as a security for advances made on the faith of any of such documents ; — provided the person making such advances has no notice, by any of such docu- ments, or otherwise, that the person entrusted therewith is not the actual and hondjide owner. (3) But no person (4), who takes the goods in deposit or pledge, for a debt pre- (1) Butler V. Woolcot, 2N.R.64. (2) The 6 G. 4. incorporates all the provisions of the 4 G. 4. ; and see post. " Lien." (5) And see section 4. (4) Section 3. Sect. 7.] AS TO PERSONAL mOPERTY. 46^ viously due, can acquire any further right, than that of the Stoppage person entrusted with such goods or documents. By section 4., also, any person may contract with any Sale by agent entrusted with goods, or to whom goods are con- »" 'igent signed, for the purchase of them ; and may receive the same less pur- of, and pay for the same to such a^rent; and such contract ch.iserhas ... . . notice will be binding upon the owner, notwithstanding the buyer that the has notice that the seller is only an agent; — provided the agent is contract be made in the usual and ordinary course of busi- ,^2ej to ness, and that the buyer, at the time of purchase or of sell. payment, had no notice that such agent was not authorised to sell the goods. It becomes important, therefore, to inquire how far these new enactments interfere with former cases, which involve the right of stoppage m transitu as it affects third persons^ — and which have been hitherto regarded as the landmarks of the law, when a question of this nature has been brought before the courts. It was formerly decided by Lord Hardwicke(l), that. As to right though a consignee of goods assigned the bill of lading (2) <'/'^o"- to a third person for a valuable consideration, the con- when con- signor was, nevertheless, under any circumstances previous ^ignee as- I • 1 f 1 1 -11 1 . si^ns the to the arrival or the goods, entitled to stop them in bin of transitu. But this decision has long ceased to be an lading. authority on this particular point, and was first shaken by the opinions of the Judges in Lickbarrow v. Maso7i. (3) As this last-mentioned case, which was carried through a Lickhar- protracted course of litigation, has been hitherto the lead- ^°]F ^* • 1 . 1 . r 1 1 • • Mason. mg one upon this branch or the subject, it may not be amiss to give some account of it ; though the point which was originally determined by it, and which was afterwards (1) Slice V. Prescott, 1 Atk. 245. legal effect of the assignment, as (2) The first case in the books, between the consignor and the as- that recognized the right of the signee, does not ai)pcar to have consignee to assign the bill of been considered before Snee v. lading, is Evans v. Mar/eft, 1 Lord Prescott, and Wright v. Campbell, Raymond, 271. 12Mod.l56. sSalk. 4 Burr. 204 b. 290.; which was followed by Ap- (3) 2 T. R. 63. 6 East, 20. in pleby V. Pollock, mentioned in Ab- note, bott on Ship|)ing, 544. But the 464- OF THE ASSIGNMENT [Ch.ll. Pt,2. Stoppage contested by two different writs of error, never received a i n transit u. ;^^,^/ decision. When the case first came before the Court of King's Bench, it was held, that the right of tlie consignor to stop the goods in transitu was divested, by the consignee assigning the bill of lading to a third person for a valuable consi- deration, nsoithout notice on the part of such third person that the goods were not paid for ; — and that there was no distinction, in this respect, between a bill of lading indorsed in blank, and an indorsement to a particular person. This judgment of the King's Bench was after- wards reversed, on a writ of error in the Exchequer Chamber ; upon which occasion, the opinion of the Court was expressed by Lord Loughborough in a very elaborate judgment. (1) The record was then removed into the House of Lords, where the judgment given in the Exchequer Chamber was reversed, and a venire facias de novo (2) was awarded. A new trial accordingly took place ; — when the jury found a special verdict, stating the same facts as had been given in evidence on the A bill of former trial ; and finding also, that by the custom of t"bl"^" merchants, bills of lading were (before the ship's arrival) by indorse- negotiable, or transferable, by the shipper of the goods *"^"'* to any other person — by the shipper indorsing the bill of lading, and delivering or transmitting to him the same so indorsed; and that, by such indorsement and deliveiy. As to in- the property in the goods was wholly transferred ; and dorsement aJgo, that indorsements of bills of lading in blank might be filled up by the person (to whom they were so delivered) with words ordering the delivery of the goods to be made to himself; and that the same, when so filled up, had the same operation, as if it had been done by the shipper, when he indorsed (3) the bill of lading. The Court, upon this (1) 1 H. B. 357. consignee is not necessary to per- (2) 4 Bro. Pari. Ca. 57. feet the transaction between him (3) If the bill of lading has been and the third person. Abiiott on indorsed by the consignor, it seems, Shipping, 599. that a second indorsement by the Sect. 7.] AS TO PERSONAL PROPERTY. 465 occasion, declined entering into a discussion of the case, as Stoppage it was intended to carry it again to the House of Lords, — w rami u. merely saying, that they still retained their former opinion. ( 1 ) It does not appear, however, that the case was afterwards taken up to the House of Lords; — but the doctrine, as laid down by the Court of King's Bench in the first de- cision of it, has been since recognised in subsequent cases involving a similar question. By these cases the following When distinction has been established, viz. wherever a bill of i^florsed 1 I- • • 1 1-7 ■ 1 • 1 1 1 withnotice laclmg is indorsed xoit/i notice tc the indorsee, that the that goods goods have not been paid for — or where the indorsee has ^^^'^ "°' notice of the inwlvencij of the consignee — the indorsee then for. takes the bill of lading, subject to the same rights as the original consignee; — and, therefore, the consignor is en- titled to stop the goods in transitu. (2) This rule, however, as to notice^ appears to have been Rule as to extended in some degree, and not to be confined to money notice, not " . . . . -^ confined payments ; for the expression, that occurs in the opinions of to money the Judges in the cases where the rule was first laid down, payiiients. viz. " without notice that the goods have not beeti paidjbr," it has been since determined, is not to be understood in a restricted sense — but as conveying the meaning of " with- out notice of such circumstances, as would prevent the bill of lading from being fairly and honestly assignable." — Accordingly, where goods were consigned, payable for by the consignee in a bill at three months — and after the con- signee had accepted such bill, and before it was due, he assigned the bill of lading to- another person bondjide for a valuable consideration, — it was held, that though such per- son knew at the time that the consignor had not received actual payment in money for the goods, yet that, after such assignment, the consignor could not stop the goods in transitu ; for, if the indorsee of the bill of ladin»- had known all the circumstances of the case, as they stood between (1) 5T. R. 683. 51. Neiusomw. Thornton, 6 East, (2) Salomons \. Nissen, 2 T. R. 17.; and see }V7-ig/it\. Campbell, 674. Vertue V. Jetvell, 4 Camp. 4 Burr. 2046. H H 466 OF THE ASSIGNMENT [Cll.ll. Pt.2. Stoppage ifl transitu. Right of stoppage not to de- feat the rights of third per- sons; delivery order partly acted on, and goods sold to a second purchaser. the consignor and consignee, it was considered, that he would have known nothing which would have made it un- iair, either in the consignee to assign, or in himself to a.c- cept, the bill of lading. Any collusion, however, with the consignee to defeat the just rights of the consignor — as, if the indorsee hieiso that the bill of exchange would not be j^ciid, or that the consignee was insolvent — would have made a difference in the case. But to hold, Lord Ellenborough says, that no bill of lading was assignable, unless the as- signee was perfectly assured that the goods were paid for in monei/, would tend to overturn the general practice and course of dealing of the commercial world (1) on this sub- ject. And this reasoning seems consistent with the prin- ciple of the new enactment, namely, that the transfer of a bill of lading shall convey the property in the goods, unless the person, to whom it is ti'ansferred, has notice that the person transferring it to him is not the actual and bond Jidc owner of the goods. The right of stoppage in transitu.^ as it is an equitable right, can only be exercised where it does not interfere with the just rights of third persons. (2) Therefore, where a vendor of tallow (lying at a wharf) gave a written order to the wharfingers to weigh, deliver, transfer, and rehouse the same; and the purchaser sold the tallow again to a second purchaser; upon which, the wharfingers wrote to the second purchaser, acknowledging that they had transferred the tallow to his account — though the tallow had in fact not been weighed since the order of the original vendor, — it was held, that whatever question there might have been as between buyer and seller, in consequence of such omission as to the weighing, yet that the wharjingers (who were sued in trover by the second purchaser) having acknowledged that they held the tallow on Ms account, could not afterwards dis- pute his title, in obedience to any order of the original vendor (l) Cuviing V. Brown, 9 East, 506. (2) Hawesv. Watson, 2B.&C. 546. per Best J. Sect. 7.] AS TO PERSONAL PROPERTY. 467 to Stop the delivery of it to such second purchaser, not- Stoppage withstanding the original vendor had not been paid by the ^^"" "' first purchaser. (1) So, where the vendee marked a quan- Where tity of timber lying at the vendor's wharf, and a small ^^^^ second part was forwarded by the vendor to one place, and part to t/ic assent another — and the vendee afterwards, and before the time of the of payment arrived, sold the whole to the plaintiff, who vendor, notified such sale to the vendor, and was answered that " it was verj/ iveir — and then, in the presence of the vendor, the plaintiff marked all the timber lying at his wharf, and afterwards marked that which had been for- warded to the other two stages ; — it was held, that the vendor (after such assent to the transfer) could not retain or stop any of the timber as iii transitu, upon the sub- sequent insolvency of the original vendee, to whom payment had been made by the plaintiff — whatever ques- tion there might have been as between the original vendor and vendee. (2) But a 7nere resale of goods by a vendee, Where who has never been in possession of the bill of lading, vendee re- • J -1 1 • , , , sells with- accompanied even witri payment to Inm by the second out ever vendee, will not destroy the vendor's right of stoppage ^^^^"S pos- in transitu [2i) — notwithstanding the second vendee pro- the bill of cures from the master of the ship (but without the l^dhig. consent of the vendor) a bill of lading to be made out to himself. Before the late acts of parliament (4) above referred to Right of (which have so materially altered the law of merchant and consignor \ 11 1 r • 1 "°^^ "e- factor, as well as that or consignor and consignee) it was feated by determined, that if goods were sent to a consignee as factor. fa^i°^ . , . . ^ J nled^e3 the symbol of ovjuersJiip in the goods, so far as to v^i ^c valid any con- tract for the disposal of them, the legal' possession of the bill of lading, even as factor, would, unless his principal interfered, have drawn with it the right to possess the goods, and to hold them as against all persons whatever, in virtue of his lien for the general balance due to him from his principal. Section VIII. Of Goods sent, but not accepted ; and of Goods ordered, but not delivered. Goods de- The assignment does not pass goods delivered by the livered by bankrupt before his bankruptcy, on a precedent consider- rup^" " ation, though they may not be actually accepted by the other party until after the bankruptcy. Goods And if goods are consigned to a bankrupt upon credit, consigned (1) 5M.&S.5S0. Sect. 8.] AS TO PERSONAL PROPERTY. 471 who, being apprehensive of his own insolvency, but before Goods jwt the commission of an act of bankruptcy, declines to accept T^'^^' ^ ' them, and the consignor consents to receive them back, — the goods, in this case, will not pass by the commissioners' as- '^ bank- signment. And the Court will presume a consent in the consignor to receive the goods back(l), unless the con- trary appears. So, where after considerable dealings between the vendor When and vendee, the latter (whilst some goods that had been contract ' .,, , . . rescinded consigned to hnn were still ni transitu) in consequence of before ar- his distresses, wrote to the vendor to say, that he was in rival of falling circumstances, and that he would not apply for those goods ; and the vendor, by return of post, answered the bankrupt's letter by saying : " If I find you an honest man, you shall have every indulgence from me," — making no mention of the goods ; but he immediately left New- castle for London, and went to the wharf where the goods were lying, and claimed them of the wharfinger; — it was held, under these circumstances, that the contract, being rescinded before the arrival of the goods, the vendor was entitled to have them delivered up — and that, free from any lien of the wharfinger for his general balance due from the vendee. (2) So, also, where goods were sold and actually delivered to Where the clerk of the vendee, and sent by him to the vendee's counter- packer, to prepare them for being shipped to the vendee ; (roods he- and whilst they were in the packer's hands, the clerk re- /^'"^ •^^■ ceived a letter fi'om the vendee, dated before the delivery of ^^^ ^e- the goods, saying, that he was ruined, and adding, "If you ceived till have purchased any goods for my account, or if any orders ^yard's are given out, let the persons have their goods back, and countermand all orders;" — upon which the clerk showed this letter to the vendor, who agreed to take back the goods, though not until after they had been attached on the (l) Atkhi V.Bar wick, 1 Str. 165. (2) Richardson v. Goss, 5 Bos. 10 Mod. 432. Fortesc. 353. & P. 1 19.; and see Mills v. Ball, 2 Bos. & P. 457. and ante. H H 4 4-72 OF THE ASSIGNMENT [Ch.ll. Pt.2. Goods not accejjted. Return of goods must be made m- stanter. same day by some of the vendee's creditors ; — it was held in this case, that the 2)roperty in the goods revested in the vendor, so as to avoid the attachment ; as the countermand of the purchase by the vendee was dated before the delivery of the goods, though not received and assented to by the vendor until after such delivery. (1) But in all these cases of a re-delivery of goods to a vendor, the determination of the vendee to reject them must be made iiistanter ; for if the goods are kept by the vendee some time after their delivery — such, for instance, as a period of four months (2) — or even, in one case, of fourteen days (3) — he cannot, when on the eve of bank- ruptcy, restore them to the vendor; for, though there might be no fraudulent concert between the parties, such a transaction would, in fact, amount to an undue preference of the vendor to the vendee's other creditors. Thus, where a vendee at Devizes was in the habit of receiving different parcels of wool from the vendor at Bristol ; and the course of dealing was, that sometimes the wool was sent with, and sometimes without, any specific order, but the vendee had always an option to return each particular parcel, if he had no call for it: — on the \Mh Fchruary the vendor, by order, sent the vendee thirteen bags of wool, which arrived on the 19th, and were then deposited in the vendee's warehouse with his other goods, — though he gave directions not to have them opened, or entered in his books, but only weighed off to see that they agreed with the invoice, as he knew that he was in embarrassed cir- cumstances, and intended not to take them into the account of his stock, if in the event he found himself unable to go on : — on the Mli and 5th March he returned the wools to the vendor, who consented on the 1th to receive them back, which was after an act of bankruptcy committed by the vendee. Under these circumstances it was held, that (1) Salte V. Field, 5 T.R. 211.; and see Graff" \. Greffulhe, 1 Camp. 89. and ante, 448. & seq. 80. (2) Barnes v. Freeland, 6 T. R. (3) iSfeate v. Ball, 2 East, 1 1 6. Sect. 8.] AS TO PERSONAL PROPERTY. 4«7d* the vendee, by keeping possession of the goods so long, Goods not had lost his option to return them, which ought to have "f^^^ ^ ' been exercised immediately on the receipt ot" them ; and the assignees of the vendee were declared to be entitled to the wools. ( 1 ) And when the ffoods, after being delivered, are 07ice When accepted by the vendee, the vendor has then no power to ^°"^ ^, reclaim them, as against the assignees of the vendee, — livered though the vendee has, in fact, committed an act of bank- ''^""J^'j- ' ' cepted; ruptcy between the sale and the delivery of the goods. (2) Nor can a vendor reclaim goods, after he has done any act or when to recognize the sale. As where, though a vendee wished .^ recog- ' o nized bv to return the goods (which were then in the hands of a vendor. packer) the vendor instituted an attachment against them, as the jwoiiertij of the vendee^ — this was considered to be an election by the vendor, not to rescind tlie contract; and, the vendee having become bankrupt, it was held, that the goods passed by the commissioners' assignment. (3) But the commissioners' assignment does not pass goods But bank- contracted to be bought by the bankrupt, in which he has u"P*^ "^"^'^ o _ *' . have the not the right o'i jtossession.^ as well as the right o{ inopertij. right of Thus, where a vendor sold to the bankrupt by contract V^^scssion, various parcels of hops, part of which were weighed, and the ri^ht an account of the weights, together with samples, only, was ^^ P^*^ delivered to the bankrupt — who, not paying for them at the goods to usual time according to the custom of the trade, the vendor P^** gave him notice, that unless they were paid for by a certain day they would be resold : — the hops were not paid for ; and the vendor resold a part with the consent of the bank- rupt before his bankruptcy, and afterwards the residue, without the assent either of the bankrupt or the assignees ; but an account of the sale of the hops was delivered to the bankrupt, in which he was charged warehouse-room from the 30th August: — the assignees demanded the hops of (1) Ibid. (3) Smith v. Field, 5 T. R. 402. (.2) Has well V.Hunt, cited 5T.R. 231. 474 OF THE ASSIGNMENT [Cll. 1 1. Pt.2. Goods ordered, but not delivered. Notwith- standing part of the price is paid. Goods ordered by the bank- rupt of a manufac- turer, but not de- iivered. the vendor, and tendered the warehouse rent and other charges ; and, upon his refusing to deliver them, brought trover ; — it was held, that, under these circumstances, the assignees were not entitled to maintain that species of action, to recover the value of the hops — notwithstanding the jury foinid, that the defendant had not rescinded the contract of sale ; for, in order to maintain trover^ the party must have, not only a right of 'property, but also a right of possession ; and although a vendee of goods may acquire a right oi property by the contract of sale, yet he does not ac- quire the right of possession in the goods, until he pays or tenders (1) the price. So, where the vendor received even 700Z. IN PART of the price of goods bought by a bankrupt at certain credit, some of which were in the warehouses of other persons in the vendor's name — and no notice had been given to any of such persons to transfer them into the name of the bankrupt, but they remained after the contract of sale as they did before ; — in this case it was held, also, that the asignees could not maintain trover for them against the vendor, without tendering the remainder of the price. (2) So, goods which are ordered by a bankrupt to be made or manufactured — though he has even advanced money on account to the manufacturer equal to the value of the work and materials, and though the work is in fact completed — have been held not to pass to his assignees, unless the article in question has been actually delivered to him — or, unless the manufacturer has done some act to express an unequivocal assent, that the general property should be con- sidered as vested in the purchaser. Thus, where a trader entered into a contract with a barge-builder for a barge; and before the work was begun advanced to him money on account, to the amount, at last, of the value of the barge; and the barge was completed, and the trader's (1) Bloxham v. Sanders, 4 B. & C. 911. (2) Bloxam v. Morley, ibid, 951. Sect. 8.] AS TO PERSONAL PROPERTY. 47^ name even painted on the stern ; but before it was deli- Goods vered, it was taken under an execution by another creditor |^^^^ ^^^f.' of the builder ; — it was held, that the assignees of the delivered. trader could not recover the barge in trover against the sheriff, — on the principle, that a buyer acquires no property in a chattel, until it is both finished and delivered to him (1) — and that painting the name upon the stern, only expressed an intention that the barge should belong to the trader, but did not pledge him absolutely to fulfil that intention. And, where goods previously ordered of a manufacturer Goods are not forwarded, or paid for, until the manufacturer has "°* (°''' f. , 1 , 1 , warded, or committed an act or bankruptcy, they may be recovered paid lor, back by his assignees in an action of trover against the before act purchaser, — notwithstanding the purchaser had even ac- ruptcy. cepted a bill for a larger sum than the price of the goods — if there is no evidence of any specijic apjorojpriation of the bill, to the payment of the price of the goods. (2) But when there is an express apipropriation of payments Where made by the bankrupt (before the article purchased of him, ''"^''^ ^^ .^" . ctppropri- or contracted for, is actually delivered) to the liquidation aLion of of the price of the particular article contracted for, — then Payments the property in it will pass to the purchasei-, after any act liquidation of transfer^ — provided he has no notice of any act of bank- of the ruptcy. As, where a ship-builder contracted with B. to P"*^^* build a ship for him, for which B. was to pay, in the pro- gress of the work, by four instalments, the two last to be payable when the ship was launched ; and whilst the ship was building, she was measured with the builder's privity, in order that B. might get her registered in his name ; and the ship -builder for that purpose signed the usual certificate of her building, upon which the ship was registered in B.'s 7ia?ne : — on the same day the third instalment was paid ; and after this, and before the ship was completed or (_1) Mucklowx. Mangles, iTaimt. (2) Bishop \. Crawshay, 5 B. & 318. C. 415.; and see Hurst v. Gtven- nap, 2 Star. 306. 476 OF THE ASSIGNMENT [Ch.ll. Pt.2, launched, the ship-builder committed an act of bank- ruptcy : — it was held, under these circumstances, that the legal effect of the ship-builder having signed the certificate, to enable B. to have the ship registered in his own name, was, to VEST the general property in the ship in B., from the time when the registry was completed, subject to the ship-builder's lien for the fourth instalment; and that a rudder and cordage, also, which were not affixed to the ship, but which were made and bought by the ship- builder specifically for that purpose, were to be considered as part of the ship ; and that none of this property was in the possession of the bankrupt as reputed owner. (1) Assign- ment does not divest a lien. Definition of tile term. Nature of a lien. Section IX. Of Goods subject to a LIEN. (And see ante, Chapter IX. Section VI. " Of Equitable Mortgages;" and post, Chapter XIX. on " Set Off.") The assignment of the commissioners does not divest a tegal^ or equitable, Lien of any party on the bankrupt's goods. This rule is founded upon the same principle, as that which we have often had occasion to notice, viz. that the assignees are bound by all the equities, by which the bankrupt him- self was bound. A Lie7i, in its legal sense, means a right to possess or retain any thing then in the possession of the party, until a just and equitable claim, which he has either in respect of the thing itself, or against the owner of the thing generally, is satisfied. In the first case it is denominated a special, — in the last a general lien. Lien subsists either by the common law, the usage of trade, or agreement between the parties ; and as the con- (1) Woods V. Russell, 5 B. & A. & C. 419. who distinguishes* thia 942.; and see per HolroydJ., 5 B. case from Bishopy.Crawshntj, ante. Sect. 9.] AS TO PERSONAL PROPERTY. 477 venience of commerce, and natural justice, are much in ^''^• favor of this species of claim, the courts have, in all cases where a question of lien has been agitated, invariably shewn a disposition leaning towards the person making the claim. They will, therefore, often imply a contract of lien, either from the general course of trade, — or from the nature of the particular mode of dealing between the parties. There Must be can be no lien, however, unless the goods, in respect of possession. which the lien is claimed, have actually come to the pos- session of the party before the bankruptcy of the owner ( 1 ) ; for a constructive possession is not sufficient. {'2) Therefore, where A. consigned a cargo to B., with a direction to pay to C. out of the proceeds a sum of money, and wrote to C. to that effect ; — it was held, that C. in this case had no lien on the proceeds. (3) And no one can acquire a greater lien, than the interest No greater which the person pledging, or depositing, the property pos- |?^" ^""' sesses in it himself. Therefore, where a tenant for life that of pledged plate with a pawnbroker, the latter was held to ^^^ P^^'f^ have no lien upon it, after the death of the tenant for life, against the remainder-man, — although the pawnbroker had no notice of the particular limitations of the settlement (4), which created the tenancy for life. So, a person, who has no right whatever to the property himself, can confer no lien by pledging it with another, — though the party bond Jide advances money upon it, without notice of the wrongful possession of the party pledging it. (5) A Lien upon goods, also, exists only so long as the Lien exists party continues in possession ; for if he once relinquishes j" x 1^ •' ^ _ . , ^ dunngcow- possession, the rule, is that the lien is at an end. (6) There tinuance of are, however, some exceptions to this rule, as where a possession. party \s forcibly turned out of possession of the property — (1) Patten V. Thompson, 5M.& (4) Hoare v. Parker, 2 T. R. S. 350. Nicholls V. Clent, 3 Pri. 376. ; and see ex parte Nesbitt, 547 . Kinloch v. Craig, 5 T. R. 1 1 9. 2 Sch . & Lef. 279. (2) Ibid. Taylor v. Robinson, (5) Hooper v. Ramsbotiom, 8 Taunt. 648. 1 Camp. 121. (3) Ex parte Haywood, 2 Rose, (6) Krugerv. Wilson, Amb. 252. 355. Street V. Pi/m, 1 East, 4. 4.78 OF THE ASSIGNMENT [Ch. 11. Pt.2. Lien. When it may re- vive. When goods pe- rishable. When it is waived. the lien will revive when he recovers possession (1); and the like in some cases, even whei'e he voluntarily quits pos- session — as, where he delivers it up to the owner upon the faith of an assignment, which afterwards turns out to be invalid. (2) So, where a party, having an equitable mort- gage, delivered up the deeds upon the sale of the estate, and the sale was afterwards set aside (3) — or where he de- livered up a lease to be sold imder an execution, and the execution was invalidated by a prior act of bankruptcy (4), — he was held, in neither of these cases, to have lost his lien. In one case, also, where an insurance broker, having parted with the possession of a policy upon which he had a lien, ob- tained from his principal the policy again, upon pretence of receiving the average ; — it was held, that the lien revived by thus regaining the possession (5): though, perhaps, there may be some doubt as to the correctness of this decision, — as the re-delivery of an article, in order to revive a lien, ought to be strictly for the same purposes, for which it was originally delivered. (6) If, however, the commodity upon which the lien attaches be of a j^erishable nature, the party may, in that case, safely part with it to the owner upon a special agreement with him, that the lien shall await the event of a legal determination. (7) A Lien, also, may be waived or abandoned by a special agreement, which contains some term inconsistent isoith the right to retain — as where the parties contract for a par- ticular time and mode of payment; but meYe\y Jixing the price, of labour to be done to any particular article or com- modity, is no abandoment or waiver of any lien upon it. (8) So, where the owner of a ship, having a lien on the cargo until the delivery of good and approved bills for the freight, (1) Ex parte Cheesman, 2 Eden, Rep. 181. (2) Brown v. Hankey, 2 T. R. 11.5. (3) Ex parte Morgan, 12 Ves. 6. (4) Ex parte Doughty, 1 Mont. Dig. 49.5. (5) Whitehead v. Vaitghan, 1 C. B. L. 547. (6) And see 2 Christ. B.L. 142. (7) 1 Mont. Dig. 492. Whit- aker on Lien, 73. (8) Chase v. Westmore, 5M.&S. 186. by which some of the older cases on this branch of the subject arc overruledj See Lord Ellcn- boroiigh's judgment. Sect. 9.] AS TO PERSONAL PROPERTY. 4j7S took a bill of exchange in payment, and though he objected Lkn. to it at the time, afterwards negotiated it ; — such negotiation was held to be an approval of the bill, and a relinquishment of his lien. (1) And, where a claim is made to retain the • goods (when they are demanded) on a differe?it ground, without making any mention of the lien, — the party has been held to have abandoned his lien (2); but a simple re- fusal to give up the property, accompanied with the observ- ation of the party, that he " might as well give up eveiy transaction of his life," does not amount to such (3) aban- donment. As to how far a delivery of part of the goods will divest the lien of the vendor upon the residue, — see ante, " Stoppage in Transitu." (4) Having thus endeavoured to explain generally the nature and legal effect of a Lien^ it is proposed now to enumerate those persons, who, by the usage of trade, or by custom re- cognised by law, are considered as having a general^ or a partiadar, lien — that is, a right to retain property, either for a gejieral balance due from the owner; or for work done, or expenses incurred in respect of the specific article retained. A FACTOR has a lien upon all the property of his principal Factor, in his hands, — every thing in his possession being construed to be a pledge, not only for incidental charges, but for the general balance due to him. (5) And he has a lien, also, upon the price of goods sold by him as factor, as well as upcm the goods themselves (6) ; which lien is available even against a claim of the crown. (7) Nor is it any objection to a factor's lien, that he has advanced money to his prin- cipal, or accepted bills drawn on him to the extent of the ( 1 ) Horncastle V. Farran, 2 Star. Goditig v. London Assurance Com- 590. 3 B. & A. 497. ?J««i/, Burr. 494. Foxcroft v. Be- (2) Boardman v. Sill, 1 Camp, vonshire, 2 Burr. 956. Hammond 410. n. V. Barclay, 2 East, 227. (.5) White V. Gainer, 2 Bing. 25. (6) Drinkwater v. Goodmn, (4) Ante, 455. See also ex parte Cowp. 251. Hudson v. Granger, Gwynne, 12 Ves. 379. post. 5 B. & A. 27. (5) Kruger v. Wilcox, Amb. 252. (7) Rex v. Lee, 6 Pri. .369. 480 OF THE ASSIGNMENT [Ch. 11. Pt.2. Lien. value (1) of the goods — provided the goods come to his "'^^°^' hands before the act of bankruptcy of the principal. (2) But a factor's right to a general lien will not aiFect pro- perty, delivered to him for a special purpose. (3) And he has no lien for a debt due to him before he became a factor. (4) "Where a factor, also, by his bankruptcy be- comes incapable of taking possession of goods consigned to him, his assignees have no right to take possession ; for the consignment is made to the factor, in respect of a per- sonal confidence reposed in him for the performance of those duties, which his principal never intended should be exe- cuted by other persons. (5) As to right A Factor, who, fi'om the very nature of his employment, to oledJe ^^^ ^^^^ ^^^ power given him by his principal to sell goods entrusted to his care, was always considered in law to have no authority to pledge; and could not therefore transfer his lien, as against his principal, to a third person, — even though that person had no knowledge, that he was only a factor (6) ; unless, indeed, the factor (by consent of his prin- Alteration cipal) exhibited himself to the world as owner. (7) The inth^^ law has, however, (as has been before observed (8) ), respect. been materially altered in this respect by two statutes (9) lately passed, for the professed purpose of affording better protection to merchants and others entering into con- tracts with factors, or agents. By the last of these statutes, the 6 G. 4. c. 94., (which incorporates all the provisions of the former,) it is enacted, that any person entrusted for the purpose of consignment, or sale, with any goods, and shipping them in his own name, shall be deemed and taken to be the true (1) Re.vv.Lee, 6Pn.569. Fox- (6) Paterson v. Fash, Str. 1178. croft V. Devomhire, supra. Martini v. Coles, 1 M. & S. 140. (2) Copeland v. Stein, 8 T. R. Daiibigny v. Dnval, 5 T. R. 604. 199. Shipley v. Kymer, 1 M. & S. 484. (5) FFrttterv. JS«>c//, 6T,R. 258. (?) Be Leira v. Edwards, cit. Burn V. Brown, 2 Star. 272. 1 M. & S. 147. (4) Houghton V. Matthews, 3 B. (8) Ante, 467. & P. 485. (9) 4 G. 4. c. 85. and 6 G. 4. {5) Paitenw. Thomjison, 5M..& c. 94. ; and see ante, 462. and S. 561. 467. Sect. 9.] AS TO PERSONAL PROPERTY. 481 Factor. owner thereof, so far as to entitle the consignee to a lien ^^^'^ thereon for advances made to the shipper, provided the consignee has no notice by the bill of lading, or otherwise, that the shipper is not the actual and bond Jide owner. And the person, in whose name such goods are shipped, shall be taken to be entrusted therewith for consignment or sale, unless the contrary shall be made to appear by bill of discovery, or otherwise, or be shewn in evidence by any person disputing the fact. By sectioji 5. any person Factor may accept and take any goods, or mercantile document ^T\^^''^ for delivery of goods, in deposit or pledge from any factor or a certain agent, notwithstanding he has notice, that the person ^^•''tent. pledging is a factor or agent ; — but so as to acquire no further right, than was possessed by the factor, or agent, at the time of the deposit or pledge. And this right oi pledg- ing goods (so as to confer the same lien, which the person pledging has himself against the owner) is by sections 2. & 3. given to any other person, besides a factor, en- trusted with any mercantile document for delivery of goods, to whom advances may be made on the faith of any of such documents ; — provided the person making such advances has no notice, that the person pledging is not the actual and bond Jide owner. By section 6. the owner of goods, Subject to however, is not prevented from demanding and receiving the rights them from his factor, or agent, before they shall have been owner to sold or pledged, or from the assignees of the factor in case recover of his bankruptcy ; or, from demanding or recovering from repayment any person the price or sum agreed to be paid for the pur- ^^ ^'^^ chase of the goods, subject to any right of set-off on the vanced. part of the purchaser against the factor ; and he may also recover from any person the goods pledged, upon repay- ment of the money, or on restoration of the negotiable in- strument, advanced, or given, by such person on the secu- rity of the goods — and upon payment, also, of such further sum of money, or on restoration of such other negotiable interest, as may have been advanced, or given, by the factor to the owner himself, or on payment of a sum equal to the I I 482 ~ OF THE ASSIGNMENT [Ch.ll. Pt. 2. Lien. amount of such instrument. If the goods have been sold by such person, then he has a Hen on the proceeds for the amount of his advances. And in case of the bankruptcy of any such factor, or agent, the owner of the goods so pledged and redeemed, will be held to have discharged pro tanto the debt due by him to the estate of the bankrupt, anker. A Banket^ has, also, a general lien upon all the negotiable securities in his hands belonging to his customer, for his general balance; unless, indeed, there be evidence to shew, that he received any particular security under special cir- cumstances, which would take it out of the common rule(l); as where a customer deposited a lease with his bankers, without stating for what purpose it was left — in which case it was held, that they had no lien on it for their general balance. (2) Insurance An Ifisurance broker has been held to have a general lien broker. ^^^ ^jj policies in his hands; and, though he parts with the possession of a policy, yet if it come again into his hands, the lien revives. (3) But, if a broker knows that the person, who employs him to effect an insurance, is an agent, and not the principal, the broker has then (in the event of the agent's bankruptcy) no lien upon the policy for any gene7'al balance due to him from the agent — but only for the charges and expenses of effecting that particular policy. (4-) If, however, he has no notice that the policy is not on account of the person from whom he receives the order, he will then have a lien upon it for his general ba- lance due from such person — and have a right, also, to apply to the satisfaction of that balance, money received upon the policy, as well after, as before, notice that it be- longs to a third person ; but, if after notice he pays over {l) Davis w.Bowshe)\5T.^.AQ8 . (2) Lucas v. Dorrien, 7 Taunt. Jourdaine v. Lefevre, 1 Esp. 66. 164. 1 Moore, 29. Bent V. Fuller, 5 T. R. 494. Giles (.5) Whitehead v. Vaughan, 1 C. V. Pe?A-2Hs, 9 East, 12. Bollandv. B.L. 129. Park \. Carter, \h\d. Bygrave, 1 Ryan & M. 271.; and (4) Maanss v. Henderson, 1 East, see ante, p. 429. 354. Snook v. Davidson, 2 Camp. 218. Sect. 9.] AS TO PERSONAL PROPERTY. 483 the surplus to the agent, he will then be liable to repay it Lien. to the principal. (1 ) ' ' A Packer may, from the viode of dealing with his em- Packer, ployer, be in the nature of a factor, — and entitled, therefore, to a lien upon all goods in his hands, not only for the price of packing, but also for any other debts owing to him. (2) So a Wharjinger has a general lien upon all goods de- Whar- posited at his wharf, and left under his (3) care. But ^"S®'"' where the wharfige due upon goods imported was, by the course of dealing between the parties, paid by the importer at the Christmas following the importation, whether the goods were in the mean time removed or not; and the goods were before Christmas sold to A., and after Christ- mas the merchant importer became bankrupt; — it was held in this case, that the wharfinger had no lien on the goods against A. for the wharfage, inasmuch as the course of dealing between the parties was inconsistent with any right to retain. (4') A Fidler^ by the custom of the trade at Exeter^ has a lien Fuller, upon goods in his possession, sent to him by a clothier to be fulled, for a general balance due to him. (5) But, ge- nerally, a fuller has only a lien for work done on the par- ticular cloth in his possession. (6) So, also, a Dyer has a lien for dying the specific goods, but Dyer, no further (7) ; though, from the usage of the trade in the place or district where he carries on his business, his right may be extended to a lien for his ge?ieral balance. (8) And, ( 1 ) Mann v. Forrester, 4 Camp. Bennett v. Johnson, 2 Chitt. Ca. 60. temp. Mansfield, 456. (2) Ex parte Deeze, 1 Atk. 228. (8) SavUle v. Barchard, 4 Esp. Greeny. J^arwer, 4 Burr. 2222. So. Humphrey s v. Partridge, ^lont. (3) Naylor \. Mangles, 1 Esp. B.L, App. 18. Close w.Wutcrhouse, 109. Spearsv. Hartley, sEsp. 81. 6 T. R. 523. in note. The places, Richardson V. Goss, 5 B.&P. 124. where this usage has been recog- (4) Craiushay v. Homfray, 4 B. nized, are London (4 Esp. 55.), &A. 50. Gloucestershire (Mont. App, 18.), (5) Sweet V. Pym, 1 East, 4. and some particular district in the (6) Rose V. Hart, 8 Taunt. 499. West of England, per Gibbs C. J., 2 Moore, 547. 8 Taunt. 500. (7) Green v. Farmer, 1 Bl. 651. I I 2 484} OF THE ASSIGNMENT [Ch.ll.Pt.2. Lien. where an agreement was entered into by a number of dyers "~ at a public meeting, that they would not receive any more goods to be dyed, except on condition that they should respectively have a lien on those goods for their general balance, — it was held, that any one, who after notice of such agreement delivered goods to any of those dyers, was to be taken as assenting to their terms — and, consequently, could not demand goods so delivered, without paying the balance of his general (1) account. A Printer employed to print certain numbers of an entire work, though not all consecutive numbers, has a lien upon the copies not delivered, for his general balance due for printing the whole of the work. (2) So a Calico-printer has a general lien upon the linen in his possession, not only for the price of printing the par- ticular linens, but also for the price of printing others, which have been previously delivered to him. (3) A Miller, however, has only a lien upon flour and sacks in his possession, for the price of grinding the particular quantity of corn of which that flour is composed, but no (4) further. A Common Carrier is not entitled to a lien for a genei-al balance, upon goods delivered to him for carriage, unless upon special agreement. (5) On a ship. With respect to the particular lien attaching on a Ship^ for repairs, or provisions, — the person repairing has only a lien upon her for the costs, as long as she remains in his possession — the lien ceasing, when possession is parted with. (6) But where a shipwright, by the usage of trade (like that prevailing in the river Thames) gives a certain Printer, Calico printer. Miller. Carrier. Of a ship- wright. (1) Kirhnanv. Shaivcross, 6T.R. 14. (2) Blake v. Nicholson, 5 M. & S. 167. (3) Ex parte Andrews, 1 C.B.L. 429. Weldon v. Gotild, 3 Esp. 268. (4) Ex parte Ockenden, 1 Atk. 255. (5) Kirkman v. Shawcross, supra. Aspinall v. Pickford, z Bos. & P. 44. Oppenheivi v. Russell, ibid. 42. Rxishfield v. Hadjield, 6 East, 519. 7 East, 224. (6) Watkinson v. Bernardiston, 2P. W. .567. Ex parte Shank, 1 Atk. 234, Wilkins v. Carmichael, Doug. 97. Ex parte Bland, 2 Rose, 91. Woods V. Russell, 5 B. & A. 942. Ex parte Hill, 1 Mad. 61. Franklin v. Hosier, 4 Bi & A. 341. Sect. 9.] AS TO PERSONAL PROPERTY. *^^ credit to the ship-owner for the amount of the repairs, '^"' Lord Ellenborough held, that in this case he had no lien, without an express agreement for that purpose; — for that the lien of an artificer was wholly inconsistent with a dealing on credit; and could only subsist, where payment was to be made the moment the work was completed, and where there was an immediate right of action for the debt. (1) If, however, the repairs or the refitting take place in a port abroad^ then, for the necessity and encouragement of trade, the lien continues, though the ship is out of the possession of the party (2) ; for, by the maritime law, any contract of tlie master for repairs, or provisions, amounts to an hy- pothecation of the ship. (3) But, where bills of exchange were given by the captain for advances made to him abroad, which were not precisely shown to have been ap- propriated for the use of the ship — and the bills did not appear upon the face of them to have been drawn for the purposes of the ship, — such bills were held, prima facie, evidence against the inference of the advances being made on the credit of the ship itself (4) Though the master, how- Of the ever, can hypothecate a ship for repairs done abroad, he has no lien himself on the ship for money expended by him in respect of those repairs ; — for it does not follow, be- cause others through him acquire a lien on the ship, that therefore he himself has such a lien, — a lien being fre- quently derived through the act of a servant, which the servant himself does not possess. (5) Neither has the (1) Raitt V. Mitchell, 4 Camp, can be created by parol; — but 146. this position would be contrary tb (2) Ex parte Shank, 1 Atk. '234. all the cases, which decide, that a Watkinson v. Bei-nardiston, supra, party, furnishing the ship with re- and the cases there cited in note. pairs and necessaries abroad, has a (3) Justin V. Ballain, I Salk. 34. lien upon her, without any instru- (4) Ex parte Halkett, 2 Rose, ment of express hypothecation. 229. 19 Ves. 474. 2 Rose, 194. 1 Atk.254. 2P.\Vnis. 567. 1 Salk. sV. &B. 155. Lord Eldon is re- 54,; and see Hussei/ v. CJiristie, ported to have said in this case, 13 Ves. 599. that a ship may be bound by bill (5) Wilkins v. Carmichael, Doug, of sale, but not by parol; — from 101. Hussey v. Christie, 9 East, which the reporter has inferred 426. Abbott on Shipping, 419. generally, that no lien on a ship 1x3 master. 486 OF THE ASSIGNMENT [Cll. 1 1 . Pt.2. As to the freidit. Ship owner Lieii. master any lien on the ship for his wages; — his case, in this respect, being distinguished from that of all other per- sons belonging to the ship. (1) And, as a lien on the fy-cight is always consequential to a lien on the ship, he has also no lien on the freight, either for his wages, or disburse- Consi^nee ments on account of the ship. (2) But the consignee of a of a ship, sijip for sale, to whom the ship and register are delivered, has a lien upon her, for money expended for repairs and seamen's wages. (3) The Onmer of a Ship has a lien on the cargo for the freight ; but his lien is confined to the amount of freight for goods actually carried, and cannot be extended to his claim for what is called dead freight, that is, an unliquidated compensation for the loss of freight, by reason of the freighter not putting a full cargo on board. (4) And where the parties to a charter-party mutually bound themselves, especially the ship-owners, the ship, tackle, &,c., and the freighter, the goods to be put on board, in a penal sum for the performance of the conditions of the charter-party, — yet this was held not to give the owner a lien on the cargo for dead freight, or demurrage ; for, as the clause was in- tended to be mutually obligatory, and the freighter had in that case no lien on the ship, the Court said, it would be therefore absurd to hold, that the clause gave a lien on one side, without the like remedy on the other. (5) "Where the owner also has by the contract of charter, in letting the ship to freight, -parted xvith the actual possession of the ship, he can then have no lien for the freight on the cargo ; as the cargo, in this case, was never in his possession. (6) But, where there are no express words of demise in the charter-party of the ship itself, the mere occupation of the ship by the freighter will not prevent the owner from being (1) JVil/cins V. Carmichael, supra. (2) Smith V. Pluvwier, 1 B. &: A. 575. Atkinson v. Cotesworth, 3 B. &C. 647. (3) Hammonds V. Barclay, 2 East, 227. (4) Phillij)sv.JRodie, l5Ea8t,547. (5) £irle2/ v. Gladstone, 3 M. & S. 205. (6) Vallejo v. Wheeler, Cowp. 143. Tiinity Home v. Clark, 4 M. & S. 228. Haiton v. Brigg, 2 Marsh. 339. 7 Taunt. 114. Sect. 9.] AS TO PERSONAL PROPERTY. -tS? considered still in the possession of the ship, so as to pre- "Lien. serve his lien.(l) Part-owners of a ship are tenants in common, and not joint-tenants; and, therefore, if one be- comes a bankrupt, being indebted to the other owners for outfit, freight, and as managing owner, they have no lien on his share for their debt; but his share passes to the creditors under the bankruptcy. (2) A vendor of real property is, as we have seen (3), entitled Vendor to an equitable lien upon an estate sold, for so much of the property, purchase money as remains unpaid, unless the vendee can show, that the lien has been clearly relinquished by the vendor. (4) For, though the conveyance of the property states (contrary to the fact) that the purchase money is paid, and the estate passes by the conveyance at law — it does not, in equity^ until actual payment, notwithstanding even a receipt for the money is indorsed upon the deed. (5) This lien, however, is held to be abandoned, by the vendor's ac- ceptance of a security for the purchase-money from some other person, when it appears that credit was given ex- clusively to such person. But the vendor's lien is not dis- charged by taking bills of exchange, or other negotiable securities, for the purchase-money payable by other per- sons ; as these are considered, not so much in the nature of a security, as of a mode of payment. (6) Where, however, there was a covenant between the vendor and purchaser, that the purchase-money should be paid within two years after the re-sale of the premises, — that was held to dis- charge the vendor's lien, as it afforded evidence, that the vendor meant to rely on the personal security of the pur- (1) Tate V. Meek, 2 Moore, Hughes v. Kearney, 1 Sch. & Lef. 278. Yates v.'Railston,'^\di.2^A. 132. Mackreth\. Summons, \5Y&s. SaviUe v. Campion, 2 B. & A. 503. 329. ; and see Blackburn v. Greg- (2) Ex parte Young, 2 Ves.& B. son, 1 Bro. 424. Eden's ed. (note.) 242. Ex parte Harrison, 2 Rose, (5) Wintcrv. Lord Anson, 1 Sim. 76.; but see Doddington v. Hallett, & S. 444. 1 Ves. 497. contra. (6) Grant v. Mills, 2 Ves. & B. (3) Ante, page 209. 306. Ex parte Loaring, 2 Rose, (4) Chajiman v. Turner, 1 Vern. 79. Ex parte Peake, 1 Mad. 346. j 267. Austin y, Ualsey, 6 Ves. 475, and see Sugden V.&P. ch. 12, I I 4 OF THE ASSIGNMENT [Ch.ll. Pt.2. Lien. Vendor of personal property. Equitable lien on goods. chaser. ( 1 ) And where a bo7id was executed by the vendee for payment of the purchase-money and interest at the death of the vendor, — the Vice-Chancellor decided, that the vendor had no Hen on the estate ; for that when the bond was executed, the estate passed to the vendee in equity, as well as at law. (2) In the case of the sale of a lease and furniture^ though the vendors had brought an action and obtained judgment against the purchaser for the amount of the purchase- money, yet, as possession had not been actually delivered up, Lord Eldon thouglit that the vendors had a lien upon the furniture, as well as the house, as against the assignees of the purchaser. (3) But, where timber felled was sold to a trader, who became a bankrupt after having taken away part. Lord Eldon considered it doubtful, whether the vendor had a lien for the purchase-money upon the re- mainder ; as it was questionable, whether such a delivery had not taken place, as was sufficient to vest the whole of the timber in the purchaser. (4) In cases of an equitable lien oji goods generally, that is, where the real and beneficial interest in property is in a creditor at the time of his debtor's bankruptcy, though the legal estate is in the bankrupt, — the assignees are subject to the same equities as the bankrupt himself, and will not, in such a case, be permitted to take advantage of the relation to the act of bankruptcy. Thus, where a trader makes an assignment of goods at sea, as a collateral security for a debt — and then commits an act of bankruptcy -7- and after- wards indorses the bill of lading to the creditor, — the cre- ditor is entitled to the goods as against the assignees. (5) But where goods, upon which the creditor of a trader [before an act of bankruptcy committed by him) had an equitable (1) Ex parte Parkes, 1 G. & J. 228. (2) Winter V. Lord Anson, supra; and see Cood v. Pollard, 9 Pri. 544. lOPri. 109. (5) Ex parte Lord Seaforth, 1 Rose, 506. (4) Ex parte Gwynnc, 12 Ves. 379. (5) Lempriere v. Pasley, 1 T. R. 485.; and see post, Chap. XVI. " Relation." Sect. 9.] AS TO PERSOl^rAL PROPERTY. 489 lien, are no longer in existence, — such lien will not, in Lien. that case, attach upon other goods, substituted for the former by the trader after he had committed an act of bank- ruptcy. (1) Therefore, where a merchant pledged for value the bills of lading of an expected cargo, and his agents abroad (without his knowledge) disposed of part of the cargo; after which, having committed an act of bank- ruptcy, he induced his agents to replace the goods by others, and then sent the bills of lading of the substituted goods to the pawnees of the former cargo, in order to make good their security ; — it was held, that the assignees might recover the substituted goods in trover against the pawnees. (2) But the general lien of a vendor of goods, for the amount Vendor of of the price, exists only during such time, as the goods ^ are not actually delivered to the vendee. What acts will amount to such a delivery, so as to divest him of this lien, have been already considered in treating of the right of " Stoppage in transitu." (3) As to the lien of an attorney and solicitor, see post. Attorney. Ch. 22. And as to a landlord's lien for rent, see ante, Ch. IX. Landlord. Sect. XVII. A creditor, having a lien on property in his hands. Proof, a waives his lien if he proves his debt (4), or even obtains ]jg„ an order to prove (5); and will in either of such cases be directed, on petition, to deliver up the property to the assignees. (1) Meyer v. Sharpe, 5 Taunt. (4) Ex parte Solomon, 1 G. & J. 74. 25. (2) Ibid. (5) Ex parte Hornby, Buck, 35 1 . (5) Ante, page 452. 490 OF THE ASSIGNMENT [Ch.ll. Pt.2. Crown may issue process for its debt before as- signment. Operation of an extent. Necessity of provi- sional as- signment. Section X. Effect of the Assignment upon the Claims, and Process, of the Cro'ian. The Crown — not being bound by the provisions of any act of parhament in which it is not expressly named, and not being mentioned by the present, or indeed by any former bankrupt act, among the general creditors of the bankrupt — is not barred, therefore, of any of its paramount rights over the other creditors ( 1 ) ; and may consequently issue process for the recovery of its own debt, notwith- standing a commission of bankruptcy is sued out against its debtor. But this is only before an actual assignment of the bankrupt's property by the commissioners; for, after the'assignment, the property is wholly changed and divested out of the bankrupt. (2) An extent served upon the property of the bankrupt he/ore assignment will bind from the teste of the writ (3); and it seems, that it has the same operation upon debts due to the bankrupt, as upon goods in his possession, and that both are equally bound from the teste of the writ (4) ; though it has been decided, in cases where the king's debtor himself was before the Court, that debts were only bound from the teste of the inquisition. (5) And the Crown will not be prejudiced by any fraction of a day ; for though the extent is tested the same day as the assignment, the Crown, it has been held, will be preferred. (6) When it is apprehended, therefore, that any extent will issue against the bankrupt's property, the commission (1) Ex parte Russell^ 19 Ves. 16.5. (2) Rex V. Cotton, 2 Ves. 295. (3) Audley v. Halsey, Sir W. Jones, 202, Rex v. Pixley, Bunb. 202. Rex V. Bewdley, 1 C. B. L. 572. Lechmere v. Thuroiighgood, 3 Mod. 236. Roake v. DayreU, 4 T. R. 408. (4) Queen v. Arnold, 7 Vin. 104, S. C. West on Extents, 327. ; and see ibid. 164. (5) Attorney General v. Elwall, Bunb. 199. Rex v. Green, ibid. 265.; and see Rex v. Glenny, 2 Pri. 396. (6) Rex V. Crumpton, Parker, 126.; cit. 2 Ves. 295. Sed vide post, Ch. 16. s. 4. Sect. 10.] AS TO PERSONAL PROPERTY. 491 should be sealed with all possible dispatch, in order that Process of the party may be adjudged a bankrupt, and a provisioj^al ' assig7imait executed forthwith to bar the process of the Crown. Of so great importance, indeed, is this proceed- ing to the interest of the bankrupt's general creditors^ that Lord Eldon, upon one occasion of this kind (that of Castell and Poxvell's bankruptcy) did not complain of being called up in the middle of the night to seal a commission, with the avowed object of preventing an extent, — considering it his duty, as he said, to hold an even hand between the Crown and the subject. (1) If an extent is issued against one partner, the Crown can Extent only take the separate interest of the partner; and that, ^g^'"*"*^ liable to the partnership debts. (2) ner. When property of various description is seized under an Crown has extent issued for a debt due to the Crown, the Crown has ^ "S"t to a right to elect out of which species of property it will be satisfied its debt, before any other creditor of the bankrupt, having a claim or lien upon any portion of that property, can insist upon such claim. (3) Although the bankrupt's effects taken on an extent have Assignees been sold (under a venditioni exponas) in default of claim, this "i° j'^j"u , does not conclude his assignees ; and they will be allowed, goods on application, to enter their claim, and plead in such a "S ''olc!, case, on payment of the costs of the sale and the appli- cation, and putting the prosecutor of the extent in the same situation, as if the claim and plea had been entered in due time (4) ; and the delay of a month is not considered as laches on the part of the assignees (5), though any con- siderable delay will strongly prejudice their claim. (6) The prerogative of the Crown to recover its debt by the Of extents summary process of extent, is extended as a privilege to the king's debtor, in order that the Crown may be more (1) Wydownh case, 14Ves. 88. (4) Rex v. Adams, 5Pri.39. (2) Rex V. Saunderson, Wightw, (5) Ibid. 50. ' (G) Rex V. Jones, 8 Pri. 108. (s) Ex parte Rowton, 1 Rose, 15. 17Ves. 426. 492 OF THE ASSIGNxMENT [Ch.ll. Pt.2. Process of the crown. restric- tions as to issuing them. To what debts their operation confined. speedily satisfied its own debt ; and this species of extent is called an extent in aid. Great abuses, however, having been committed in the issuing of these extents, and grievous injustice often occasioned by them to the general creditors of a bankrupt, they have been limited in their operation by the salutary provisions of a recent act of parliament, passed in the latter part of the last reign. (1) By this act (2) the king's debtor cannot levy under an extent in aid more than the amount of the debt which he himself owes, notwithstanding his own debtor, against whom the extent is issued, may owe him a larger debt. And with respect to the remainder of his debt, he is put upon the same footing as every other creditor. An extent in aid, also, cannot be sued out by any {3) simple contract debtor to the Crown; nor by any person indebted to his majesty by bond, for paying any particular duty which shall be payable in respect of his trade or calling ; nor by any sub-distributor of stamps, who may have given bond to his majesty ; nor by any person who shall give bond as a surety only for some other debtor to his majesty, until such surety shall have made proof of a demand having been made upon him on behalf of his majesty, and then only to the amount of such demand. But these restrictions are not to ajfiPect a person, who may become a debtor to the king as a collector of revenue^ by simple contract, in case he shall be bound by bond, or specialty of record in the exchequer, for paying over to his majesty the particular duties which shall con- stitute the debt, that may be then due from such person to his majesty. And no extent in aid (4) can issue on a bond given by any surety^ for the payment of duties due from any insurance company. In order, also, to relieve the bankrupt's creditors from the operation of any fraudulent extent in aid, it is by section 71* of the new bankrupt law provided, that if any real or per- (1) 57 G.5. C.117. (2) Sections 1, 2, 3. (3) Section 4. (4) Section 5. Sect. 10.] AS TO PERSONAL PROPERTY. 493 sonal estate, or debts of any bankrupt be extended, after Process of he shall become bankrupt, by any person, under pretence ' ^^ crown . of his being an accountant of or debtor to the king, the commissioners may examine upon oath, whether the debt was due upon any contract originally made between suck accountant and the bankrupt ; and, if made with any other person, then the commissioners may sell and dispose of the bankrupt's estate and effects, and the sale will be vahd against the extent and all persons claiming under it. But, by a statute passed in the last session of parliament New bank- (7 G. 4. c. 30. s.l.)} it is declared, that the new statute re- ^"'^ ^^ lating to bankrupts shall not extend to repeal, alter, or affect the abridge any powers or provisions for enabling the com- of^/^^Q^g. missioners for the execution of the act(l), (authorizing the c.34. advance of money for carrying on public works and fisheries, and for the employment of the poor,) or of any subsequent acts for amending or extending the said act, to enforce pay- ment of any loan or advance made by them, in case of the bankruptcy of any party to whom such loan or advance has been, or shall be made, or in case of the bankruptcy of the sureties of any such party. In the 57 G. 3. c. 34. (the act which authorizes such ad- vances for public works and fisheries) there is a limiting clause, that no person, borrowing money under the pro- visions of that act, shall be liable for more than the amount of his subscriptions or shares in the public work, for carry- ing on which the money was borrowed. This clause is omitted in the subsequent act of the 3 G. 4. c. 88. ; and it is provided in the last-mentioned act, that all the enactments of the 57 G. 3. shall continue in force, except where the contrary is expressed. But, though nothing expressly alter- ing that clause is mentioned in the last act, yet it was holden by the Vice- Chancellor to be quite clear, that the limiting clause, from being omitted in the last act, was intended to be repealed. (2) (1) 57 G. J. c. 34. William Elford, sittings after Trin, (2) Ex parte Holden, in re Sir T. 1826. 494 OF THE ASSIGNMENT [Cll.ll. Pt.2. Process of the croivn. When an immediate debtor to the Crown may sue an extent in aid. Operation of warrant of the com- missioners of the land tax. As to a recogni- zance. As to lien of crown for excise duties. An immediate debtor to the Crown — to whom money had been paid by the district collector of excise, and who had entered into the usual bond to the Crown to pay over the money, or remit good bills for the amount within twenty- one days after the receipt of it — is not entitled to sue out an extent in aid, unless there has been, in point of fact, a literal breach of the condition of the bond.(l) But the Court of Exchequer will not interfere, on the behalf of the as- signees of a bankrupt, to set aside an extent in aid, if there is any doubt, whether there is a debt due from the prose- cutors of the extent to the Crown, or not. (2) Money collected for the Imid tax, in the hands of the collector, is a debt due to the king; and a Xi^arrant from the commissioners of the land tax, executed before the assign- ment, will bind the property, though it be not removed until after the assignment. But the warrant of the com- missioners is not equal in its operation to that of an extent ; for it only binds the goods from the time of seizure, and not from the date of the warrant. (3) After the execution of a warrant, if the effects seized under it are insufficient to pay the whole debt due to the Crown, an extent may also issue for the same debt. (4) A mere recognizance (though a debt upon record due to the Crown) has no operation upon the bankrupt's property, until some process of seizure is issued upon it. (5) Independently of the rights which the Crown possesses against its general debtor by process of extent, the different 'Excise acts (imposing duties on various articles) give it, in most cases, an absolute lien upon the subject matter of the duty, and the utensils employed in the manufacture of it. Thus, where an information was exhibited against a candle- maker (though after a commission of bankruptcy had issued against him, and even after assignment) for non-payment of (1) Rex V. Tarlton, 9 Pri. 647. (2) Evans v. Solly, 9 Pri. 525. (5) Brassey v. Dawson^ 2 Str. 977. (4) Rex V. Jones, supra. (5) Ex parte Usher, 1 Ball& B. 197. 1 Rose, 566. Sect. 10.] AS TO PERSONAL PROPERTY. 495 the single duties upon candles, and he was convicted in the Trocesa of penalty of double duties, — the Court of King's Bench held, '^J^^- that all the candles, materials, and utensils in the hands of the assignees were liable to the payment of the double duties. (1) So, where malt duties were unpaid at the time of the execution of the assignment, the malt in the hands of the assignees was held to be subject to the payment of the duties, and liable to be seized under an extent issued after the date of the assignment. (2) But, as the lien given under the Excise acts is only upon Lien only the pai'tiadar goods or articles, to which the duty attaches, — °"ods°t ^ a warrant, therefore, to levy a duty, or a penalty, upon a which duty bankrupt's goods generally [after the commissioners' assign- attaches. ment) is bad, — and will not justify even a seizure of the very articles, to which the duty, or the penalty, does really attach. Thus, where a soap-maker incurred a forfeiture for concealing soap contrary to the 1 G. 1. c. 36. s. 2. ; and on his becoming bankrupt, a provisional assignment of his estate was executed, and afterwards the soap was con- demned, and the bankrupt convicted ; — a warrant to levy a general on his goods generally was held illegal, as being a warrant warrant against all the bankrupt's goods, when only some of them to levy on were liable. (3) So, where under the 3 G.4. c.95. s. 10., «^^ goods, the Crown had a lien on certain stage-coaches, horses, &c., ° in respect of duties accruing thereon, — it was held, that such lien only extended to the particular duties on each coach, &c., and not to the general stock of the party. (4) In the case of assessed taxes being in arrear from the Lien for bankrupt(5), — his goods and chattels, before removal by the ^^^^^^ed r v. /7 tj ' J , ^ taxes, pay- assignees, are liable to the collector for all arrears of duties able for due at the time of their taking possession of the goods, or '^"^ y^^^'' which shall be payable for the year, in which they shall so take possession. If the duties are claimed for more (1) Stracey v. Hulse, 2 Doug. (5) Austin y. Whitehead, 6T.R. 411. 436. (2) Atlorney General v. SenioVy (4) In re Day, 1 M'Clell. & Y. and Rex v. Fowler, 2 Doug. 416. 384. (5) 43 G. 3. c. 99. S.37. 496 OP THE ASSIGNMENT, &C. [Ch.ll. Pt.2. Process of the crown. Assignees of army agent bound to rentier ac- count of unclaimed balances. than one year, the assignees may take the goods on paying the collector one year's duties ; and if they refuse to do this, then the collector may distrain for the whole arrears of duties. Where an army agent became bankrupt, the assignees were held bound to render an account to the Crown of unclaimed balances (remaining in the hands of the bank- rupt) on money intrusted to and received by him, on ac- count of officers belonffinij to the several regiments for which he was agent, — and also a statement of their names and ranks; and that^ for any period of time during the agency, however remote ; which accounts the Crown is entitled to demand from any agent under the 45 G. 3. c. 58. And the attorney-general may compel the assignees ta furnish such an account, by filing an information against them and the bankrupt in the Court of Exchequer. (1) (1) Attorney General v. Ross, 8 Pri. 190. 497 CHAP. XII. OF THE DIVIDEND. Sect. 1 . Of the Jir&t Dividend. 2. Of the second and the final Dividend. 3. Of tmclaimed Dividends. 4. How a Dividend is to be 7-ecovered. Section I. Of the frst Dividend. j3y sectiori 107.(1) the commissioners are directed, not When sooner than four, nor later than twelve calendar months *'^k/" from the issuing of the commission, to appoint a public made, meeting, (whereof twenty-one days' notice is to be given in the Gazette) to make a dividend of the bankrupt's estate ; at which meeting all creditors, who have not before proved their debts, are entitled to prove them ; and the commis- sioners are then to order such part of the net produce of the bankrupt's estate (in the hands of the assignees) as they shall think fit, to be forthwith divided amongst such cre- ditors as have proved debts under the commission, in pro- portion to their respective (2) debts. One part of the order How order for the dividend must be filed amongst the proceedinffs , ^ . . ^ drawn up. under the commission, and another part is to be delivered to the assignees ; and it must contain an account of the time and place where it is made, of the amount of the debts (1) This section is taken chiefly (2) And see Lord Loughho- from the 5 G. 2. c. 30. s. 35., the rough's General Order, 8th March only difference being, that the com- 1 794. missioners are directed to make the dividend, instead of the assignees. K K 498 OF THE DIVIDEND. [Ch. 12. First divi- dend. Receipts for di- vidend. Assignees' accounts to be first audited. Not com- pellable before four months to make a dividend. How to compel as- signees to make a dividend. proved, and of the money remaining in the hands of the assignees to [be divided ; — as well as how much in the pound is then ordered to be paid to every creditor, and of the money allowed by the commissioners to be retained by the assignees, with their reasons for allowing the same to be so retained. The assignees are then forthwith to make the dividend, and to take receipts (in a book to be kept for that purpose) from each creditor for the dividend received. The order of the commissioners, and the receipt of the creditor, will be a discharge to every assignee, for so much as he shall pay pursuant to such order. But no dividend is to be declared, unless the accounts of the assignees have been first audited (1) by the commissioners in the manner directed by the 106th section; nor unless the assignees shall deliver in a statement upon oath of all money received by them, pursuant to the directions con- tained in the same section. (2) The assignees, therefore, cannot be compelled, and indeed are now incompetent, to make a dividend of the bankrupt's estate, hrfore the expiration oi four calendar months from the commission. (3) But after that time, if they have suf- ficient funds in their hands, it is their duty to apply to the commissioners to appoint a meeting (4) to declare one; — though the precise time (until the expiration of twelve calendar months from the issuing of the, commission) must rest with the assignees. (5) If the assignees, after the expiration of four months, refuse to make a dividend, they are bound to account satisfactorily for such (6) refusal; and if they do not, any creditor (who has proved a debt) may apply to the commis- sioners to appoint a meeting, for the assignees to show ( 1 ) This is taken from the -3 9 G. 5. C. 131. s. 5. (2) And see ante, page 327. (3) Coopers. Pefys, 1 Atk. 106. (4) The meeting to declare a dividend (as well, indeed, as tdl other public meetings under every town commission) is now held at the new Court of Commissioners of Bankrupts in Basinghall-street. (5) Treves v. Toivmejid, 1 Bro. 385. (6) Ex parte Grosvenor, 14 Ves. 590. Sect. 1.] OF THE DIVIDEND. 499 cause why they refuse to make a dividend ( 1 ) ; and the First divi- summons and the meeting may be had without any ex- ^ pense to the creditor (2) ; as it is the practice of the com- missioners in London to take no fees for such meetings. (3) The meeting to shew cause is not advertised, but the as- signees are merely privately summoned before the commis- sioners. If the commissioners decline to appoint such meeting, or the assignees refuse to obey the commissioners' order to make a dividend, the Lord Chancellor will then, upon petition, order the assignees to attend the commis- sioners, and direct the latter to declare a dividend, if^ upon examining the accounts and the assignees upon oath, they find there is a sufficient fund. (4) The Lord Chancellor may, in his discretion, postpone Lord the dividend beyond the time limited by the statute ; but „„]f"" he will not do so, unless fully satisfied that the postpone- postpone ment will be lor the oeneral benefit of all the creditors, ., , ^ videnu. and that the parties applying for the postponement have a right so to apply. Therefore, where a ])etition was presented by creditors of surviving partners, that the dividend might be postponed, until those (who were also creditors of the deceased partner, and who had filed a bill against his re- presentatives, for an account of his assets and payment of their debts) should have gone in under the decree ; — the Lord Chancellor dismissed the petition, on the ground, that there was no equity, in the creditors of the surviving partners, to make such an application. (5) If the assignees neglect to make a dividend in proper Penalty time, and wilfully retain or employ any monies of the ^" ^^fS- 11 J 1 e 1 f ^ • 1 "^^■'^ keep- bankrupt s estate to the amount or 100/. tor their own be- ing money nefit, they are chargeable with interest at the rate of !" **^^''' 20/. per cent, on all such money, for the time during which it has been so retained or employed. (6) And they have (1) And see General Order, 8th (4) Ex parte Whitchurch, \ Atk. March 1794. 91. (2) iC. B.L. 521. (5) Ex parte Kendall, \ Rose, (3) Eden, 553. 71. 17 Ves. 514. (6) Section 1 04. ; and see ante, 338 . K K 2 500 OF THE DIVIDEND. [Ch. 12. First divi- dend. Where a claim en- tered on procecd- inss. Creditor only en- titled to dividend upon the amount of his real debt. When dividend may be retained. Must be refunded when debt expunged. Solicitor's charge. Whether an assignee been charged with common interest, though the money has lain at a banker's, and they have not been paid interest for it.(l) Where a claim has been properly entered on the pro- ceedings, the person making the claim is entitled to have a dividend reserved upon it ; but such dividend must be re- tained by the assignees, until ihe claim is duly substantiated as a debt (2) ; and at u second or final dividend, the claim, if not substantiated, should be struck out. (3) If a creditor has been permitted to prove upon an in- strument of larger amount than his real debt, he will not be entitled to receive dividends to a greater amount, than upon the real debt due to him. (4) And if the consider- ation, of bills of exchange proved under the commis- sion, is other bills given by the creditor to the bank- rupt, the payment of the dividend must be stayed upon his proof, until the extent of his real claim against the bankrupt is ascertained (5) ; or the proof must be reduced pro tanto, if he has already received part of his debt upon any other security. If a creditor has obtained an unfair possession of the bankrupt's property, his share of the dividend may be re- tained, until he gives up the property. (6) And as a cre- ditor, by proving, has submitted himself to the jurisdiction in bankruptcy, the Lord Chancellor, when he directs a debt to be expunged, has power to order any dividend that has been received under it to be refunded. (7) The solicitor's charge for computing the dividends, and preparing and copying a list of the debts, will be allowed in the assignees' accounts. It is somewhat doubtful, whether an assignee has a right (1) Hilliard's case, 1 Ves. 89. Treves v. Townsend, 1 Bro. 384. (2) And see ante, page 307. . (3) 1 Christ. B. L. 562. (4) Ex parte King, 1 C. B. L. 1 56. Ex parte Crossley, ibid. 157. Ex parte Bloxam, 6 Ves. 449. 600. (5) Ex parte Clanricarde, 1 C. B.L. 160. (6) Ex parte Smith, 3 Bro. 46. (7) Ex parte Burn. Ex parte Dcwdney, 2 Rose, 59. note. Sect. 1.] OF THE DIVIDEND. 501 to retain a dividend, as a set-ofF against a private debt due ^^rst divi- to him from the creditor. There have been different de- ' cisions upon this point. Lord Talbot permitted an as- can set off' sienee to exercise this riffht of set-off(l); — but Lord a'''7^'|e"'* " . t5 . against a Hardwicke refused to do so, saying, that he would not debt due allow the assignee (who was an officer of the commission) ^^ himself. to stop a person's share in the dividends, on account of his own private debt owing to him from that person ; for that he had his remedy at law, and ought not to blend his own private affairs with the commission, to which he was only a trustee. (2) And in a recent case before Lord Eldon, where one of two assignees claimed to set off a private debt of his own against the dividend ; — upon a petition that the assignees might be ordered to pay the dividend, Lord Eldon would not allow the set-off, on the ground that the dividend was due Jtvyn two assignees, and the debt on\y AwQ to one ; — but he made no observations on the previous decisions. (3) Where a banker to the estate, being also a creditor of Where the the bankrupt, becomes bankrupt himself, his estate is not banker to entitled to any dividend on his debt proved under the becomes commission, until the whole monies received by him, as bankrupt. banker to the estate, have been (4) accounted for. Neither an assignee, nor the solicitor under the commis- As topur- sion, is permitted to purchase a dividend for his own be- 'i- f-*j"^ ? nefit. (5) The Lord Chancellor cannot, in a proceeding by bill, How order reverse the order of the commissioners for a dividend, the ^^ '^jv'- only course being by petition in bankruptcy. (6) reversed. 522. 315 (1) Ex parte Noekold, 1 C.B.L. (4) Ex parte Bebb, 19 Ves. 223. 12. (5) Ex parte James, 8 Ves. 350. (2) Ex parte White, 1 Atk. 90. (6) Clarke v. Capron, 2 Ves. jun. C3) Ex parte Bruce, Whitm.B.L, 668. K K 3 502 OF THE DIVIDEND. [Ch. 12. Section II. \Vhen meeting to be ap- pointed. Second dividend to be final, except when. Wlien creditors proving at meeting for second dividend may re- ceive the former. Of the second and thejinal Dividend. By section 109, if the bankrupt's estate shall not have been wholly divided upon the first dividend, the commis- sioners are directed, within eighteen calendar months after the issuing of the commission, to appoint a public meeting (of which twenty-one days' previous notice is also to be given in the Gazette), to make a second dividend of the bankrupt's estate, when likewise all creditors may prove their debts, who have not previously proved them. The commissioners are then, after auditing the accounts of the assignees, (as directed by the lOQth section {\) ) to order the balance in their hands to be forthwith divided amongst such of the creditors as shall have proved their debts; and such second dividend is directed to be final, unless any action at law or suit in equity be depending, or any part of the estate be standing out, or not sold or disposed of, or unless some other estate or effects of the bankrupt shall afterwards come to the assignees ; in which last cases they are directed, as soon as may be, to convert such estate and effects into money, and within two calendar months after the same shall be so converted, to divide the same in manner before mentioned. When creditors prove their debts in the first instance at the meeting for the second dividend, it must be upon the terms of not disturbing the former dividend ; but it is in- cumbent on them to explain why they have not sooner proved, and if they can reasonably account for the delay, they will then be admitted to a participation in the former dividend, before the commissioners proceed to make a second. (2) This indulgence was not formerly granted, it (1) See ante, pa. 327. Ex parte Stiles, 1 Atk. 208. In re (2) Ex parte Long, 2 Dro. 50. Wheeler, 1 Sch. & Lef. 242. 5 Sect. 3.] OF THE DIVIDEND. .503 beinff considered, that creditors (who had not proved before Final divi- a dividend) could only be paid future dividends pari passu " ' vv^ith the rest of the creditors. The strict and regular mode, of being admitted to receive former dividends is, by petition to the Lord Chancellor (1); but it is the practice for the commissioners, without an order, first to direct the creditor to be paid the former dividend, and then to direct a general distribution of the residue of the bankrupt's effects. (2) When the assignees pay former dividends to any creditors subsequently proving, without the order of the Lord Chancellor, they must also pay them to every other creditor in the same situation. (3) Section III. Of unclaimed Dividends. By seciion 110. it is provided, that an account of all Assignees unclaimed dividends to the amount of 50/. remaining in ^^ account the hands, or in the order and disposition of the assignees, of them at shall be filed in the bankrupt office within six months after runt office- the act shall have taken effect, or within two calendar months after the expiration of one year from ihe declar- ation and order of payment of such dividends. The ac- count must contain the names of the creditors, to whom such unclaimed dividends are due respectively, as well as the amount of such dividends ; and it must be signed by the assignees, arid attested either by the solicitor to the commission, or the solicitor to the assignees. In default of or liable to the assignees rendering such account, they are chargeable * P^° ^* with 5 per cent, interest upon such unclaimed dividends, to be computed from the time that the account is directed to be filed, for so long as such dividends shall be retained, (1) Ex parte Long, 2 Bro. 50. (3) Ex parte Long, 2 Bro. 50. (2) iC.B.L. 521. K K 4 504 OF THE DIVIDEND. [Ch. 12. Unclaimed dividends. How to be invested. When proof of creditor void pro tanlo. and with such further sum, not exceeding in the whole 20/. per cent, per annum, as the commissioners shall think fit. The Lord Chancellor, or the commissioners, may order the investment of any unclaimed dividends in the public funds, or any government security, for and on account of the creditors entitled, and subject to the order of the Lord Chancellor, who, if he shall think fit, may (after the same shall have remained unclaimed for the space of three years from the declaration of such dividends by the commis- sioners) order the same to be divided amongst the other creditors ; and the proof of the creditors, to whom such di- vidends were allotted, will from thenceforth be considered as void pro ianto; renewable, however, as to any future dividends, so as to place them pari passu with the other creditors — but not to disturb any dividends which shall have been previously made. Section IV. Hois) a Dividend is to be recovered. The creditor might formerly, after a dividend was de- clared by the commissioners, either bring an action of assumpsit against the assignees for the recovery of it ( 1 ) ; or petition the Lord Chancellor for an order on them to pay it. (2) But, as assignees were frequently put to con- siderable expense and inconvenience in applying to the Lord Chancellor to stop proceedings at law, when there was an equitable defence to the claim of the creditor for the divi- dend, it was considered by Lord Eldon (3) (before indeed the passing of the I'ecent statute), that there would be great convenience, in the creditor being confined to the exclusive jurisdiction of the Lord Chancellor; because then the legal (I) Broivnv.Bidlen,T>o\.\g.392. (2) Ex parte White, 1 Atk. 90. Gillies V. Smith, 1 C. B. L. 521. Bishop v. Church, 3 Atk. 691. (5) 1 Rose, 45S. Sect. 4.] OF THE DIVIDEND. 505 demand, and the equitable opposition, would be considered How re- and disposed of together. It is, therefore, now provided ' by the \\\th section of the new act, that no action for a dividend shall be brought against the assignees ; but if they Dividend refuse to pay any dividend, the Lord Chancellor may, upon ^"^ ^^7, r J J ■> . coverablc petition, order payment thereof with interest for the time by i^eti- that it has been withheld, together with the costs of the ^^''"' application. This clause, however, does not enable the assignees to The order resist the payment of a dividend upon a debt duly proved ^ | '"r under the commission, any more than they could formerly ficient to in an action at law ; therefore, if there is any objection to establish 7 7 7 1 • I ... , , . , the peti- the debt^ upon which a petition is presented to be paid a tioner's dividend, the assignees should previously present another '^ase. petition to the Chancellor to expunge or reduce the debt(l),' or, at any rate, apply to the commissioners to do so (under the power given to them by the new act) (2) previous to the hearing of the petition of the creditor. For, upon any petition to pay dividends upon a debt proved, the order of dividend will be received as in itself establishing the pe- titioner's case ; nor is it indeed a complete answer to the application, that a petition has been even presented by the assignees for the purpose of expunging the proof, and is in the Lord Chancellor's paper (3); though, if the assignees have really any equity to resist the payment of the dividend, the Lord Chancellor will in such a case either delay the order for the payment of the dividend (4) ; or if he makes the order, he will reserve the question of costs until the hearing of the petition by the assignees. (5) The assignees are not justified in delaying the payment When of dividends, on the ground that notice has been given onlj delay them by a third person of a claim upon the dividends, if ment jus- tified. (1) Ex parte Whiteside, 1 Rose, 162. Ex parte Atkinson, 3 Ves. & 519. Ex parte Loxley, Buck, 456. B. 14. Ex parte Atkinson, 3 V. & B. 13. (4) Ex parte Hodges, Buck, 524. (2) Vide Section 60. ante, 146. (5) Ex parte Whitwell. Ex parte (5) Ex parte Whitwell, 2 Rose, Atkinson, supra. 506 OF THE DIVIDEND. [Ch. 12. How re- no petition has been presented by such claimant within a * reasonable period after such notice. ( 1 ) When ere- A creditor is not entitled to interest upon his dividend tied to ' "'^dsr the above section of the act, unless he has actually interest on applied to the assignees for the payment of it, and they m end. ^^^^ refused, or omitted, to pay it. (2) (1) Ex parte Alsopp, l Mad. 603. (2) Wackerbath v. Powell, Buck, 508. 507 CHAP. XIII. OF THE BANKRUPT. Sect. 1. Of the Duties of the Bankrupt^ and herein of his Surre7ider. 2. Of the Examination of the Bankrupt. 3. Of the Banknipfs Answers. 4. Of committing the Ban/erupt, and of the Remedies for his Discharge. 5. Of the Bankrupt's Rig/its and Privileges : 1 . Of his Privilege from Arrest. 2. Of his Maintenance during his Exa- miiiation. 3. Of his Allowance under the Commission. 4. Of his Right to the Surplus. 5. As to his Right to acquire Property he- fore obtaining his Certificate. 6. Of Actions at Law hy and against an uncertifi- cated Bankrupt. 7. Of Suits in Equity. Section I. Of the Duties of the Bankrupt, and herein of his Surrender. After a party is declared a bankrupt, the first duty re- Penalty quired of him is, to surrender himself to the commissioners, ^"currecl .fr 1 1 1 • "y ^ bank- For, by section 112. of the new act, if after such declaration rupt not he shall not, before three o'clock ( 1 ) upon the forty-second surrender- day (after notice thereof in writing left at his usual place of (l) The act does not specify whether A.M., or P.M. 508 OF THE BANKRUPT. [Ch. 13. Surrender. Bankrupt, when in prison, may be brought before the commis- sioners. Lord Chan- cellor may enlarge the time for the bankrupt's surrender. abode, or personal notice, in case he be then in prison, and after notice also given in the London Gazette of the issuing of the commission, and of the meetings of the commis- sioners) surrender himself to them, and sign or subscribe such surrender, and submit to be examined before them from time to time upon oath, (or, being a Quaker, upon solemn affirmation) — he is liable to be convicted of felony, and maybe transported for life(l), or for a term not less than seven years ; or he may be imprisoned and kept to hard labour, for any term not exceeding seven years. If the bankrupt is in prison under any process or sentence, and is desirous to surrender, the new statute provides (2), that he may be brought before the commis- sioners (by their warrant directed to the gaoler) at the ex- pense of the estate. (3) And, where a bankrupt in prison for debt is entitled to be carried before the commissioners to enable them to take his surrender, an order will be made for his doing so, notwithstanding he may upon a summary application obtain his discharge. (4) By sectio7i 113. of the new act, the Lord Chancellor may enlarge the time for the bankrupt's surrender for such period, and as often as he shall think fit (5), so as the order for such enlargement be made six days at least before the day, on which the bankrupt ought to have surrendered. (6) The application for this purpose is made by presenting a short petition to the Lord Chancellor, and the order is drawn up at the bankrupt office, without mentioning it in court. (1) The punishment of death, which was inflicted by the former statutes (4 & 5 Ann. 5G.1. 5G.2, c. 50. s. 1.) for not surrendering to a commission, was abolished by the 1 G. 4. c. 115., and that of transportation substituted. (2) Section 119. (3) And see Spence v. Jones, 5 B. & A. 705. Before the 49 G. 5. c. 121., if the bankrupt was in ex- ecution, the commissioners had no authority to order him to be brought before them, but were obliged to take his surrender in prison. (4) Ex parte Emery, Buck, 527. (5) Under the 5 G. 2. c. 30. s.3. the Lord Chancellor could only enlarge the time for fifty days, and there could only be one such en- largement. (6) And sec ex parte Du Freme, 1 Rose, 311. Sect. 1.] OF THE BANKRUPT. 509 The assignees, however, ouglit not to apply for such an Surrender. order, if the bankrupt is ready and willing to surrender. (1) The bankrujjt may surrender, if he chooses, at a private Bankrupt meeting of the commissioners at any time before the forty- "cmler '^' second day; and it is his interest as well as his duty to before the surrender as early as possible ; for, by doing so, he will be ^^' entitled to protection from arrest until he has passed his last examination. (2) But, though the bankrupt choose not to surrender until the very last minute of his time, the commissioners have, nevertheless, authority to summon and examine him in the intermediate period, touching his estate and effects. (3) If the bankrupt does not surrender himself within the Consc- limited time, namely, before three o'clock on the forty- ^"^"S^^^^ '' , . •' omission to second day, and has obtained no order for his surrender surrender. being enlarged, he is warned to surrender by the mes- senger in the usual form of proclamation. But the omission Must be to surrender must be ivilful, in order to render it a felony (4); wilful to for an involuntary neglect in this respect will not subject a felony. him to the penalty inflicted by the statute. Therefore, where the bankrupt makes an attempt to surrender, and is not able to do so, by the commissioners neglecting to attend (5) — or if he is prevented from surrendering by illness (6), — the omission to do so, not being intentional, does not of course become a felony. And the same, where the bankrupt went abroad to recover a debt due to his estate, and took his passage for his return in the only ship bound for England, which did not arrive in time. (7) When \Vhen the bankrupt is prevented from surrendering by any acci- q\^^^_ dent of this kind, the Lord Chancellor will (upon his ap- cellor will plication, or that of the assignees, accompanied by an p^'' ^^ ^ (1) Ex parte Dayrie, 1 G. & J. (4) Ex parte Rogers, A.m\A. 301 . 281. Ex parte Sherman, cit. ibid. (2) Ex parte Wood, 1 Rose, 46. (5) Ex parte Grey, 1 Ves. jun. 18 Ves. 1. Rex v. Fcrrott, 2 Burr. 195. 1124. (6) Ex parte Bould, 2 Bro. 49. (3) Section 36. ; and see ante, Ex parte Ricketts, 6 Ves, 445. page 148. (7) Ex parte Higginson, 12 Ves. 496. 510 OF THE BANKRUPT. [Ch. 13. Surrender, meeting to take the surrender. In some cases the commis- sion will be super- seded to prevent a prosecu- tion. affidavit of the bankrupt) order the commissioners to ap- point a fresh meeting to take his surrender, (l) And where a bankrupt had been erroneously advised by his soHcitor, that the commission could not be sustained, and that his surrender was therefore unnecessary — and had, in reliance on that opinion, omitted to surrender, — a similar order was obtained (2) ; and the same, where his omission to surrender arose from an apprehension of a prosecution. (3) In another case of this description, where a subsequent joint commission was issued, Lord Eldon superseded the first commission (4) ; and Lord Mac- clesfield, too, in more instances than one — where there did not appear to be any intention in the bankrupt of de- frauding his creditors by not surrendering within the time, and where his absence proceeded from an ignorance of the consequences, or from accident — superseded the com- mission, in order to prevent a prosecution. (5) But this will not be done, where no circumstances of extenuation appear (6); and in all cases of this nature, the bankrupt pays the costs of the application. (7) If, however, the omission to surrender has not proceeded from ignorance of the consequences, but has been purely wilful on the part of the bankrupt, the Loi*d Chancellor will not then interfere by making any order (8) ; and Lord Thurlow even refused to make one, where the bankrupt stayed abroad at the desire of the assignees to get in his effects. (9) Where the Lord Chancellor, by thus superseding the commission, exerts his authority to impede the ordinary course of law, — the same facts, which are sufficient to induce him to do so, will also, as it should seem, be a good defence to an indict- ment against the bankrupt for the felony. (10) (1) See the four last cases. (2) Ex parte Shiles, 2 Rose, 381. (3) Ex parte Berryman, 1 G.& J. IS. (4) Ex parte Lavender, 1 Rose, 55. 18 Ves. 18. (5) Ex parte Wood, 1 Atk. 222. 223. (6) Ex parte Roberts, 2 Rose, 578. (7) Ex parte Carter, 4 Madd. 394. (8) Ex parte Smith, 1 C B. L. 434. and the preceding cases. (9) Ex parte Daiuson, 2 Cox, 48. (10) IC.B.L. 436. Sect. 1.] OF THE BANKRUPT. 511 In all these cases, where the Chancellor makes an order for Surrender. a fresh meeting to take the bankrupt's surrender, though the How Lord order will not absolutely protect the bankrupt from a prose- Chancel- cution, yet it will be considered as a declaration of the Lord .°V °^ ^^ Chancellor's opinion, that the bankrupt had no intention of strucd. keeping out of the vmy frcmdulcntlT/ ,- for otherwise it would not (of course) have been granted. ( 1 ) Where the bankrupt was prosecuted by a person, who was not a creditor, for not surrendering, and the circumstances of the case were in his favour, Lord Hardwicke refused to aid the prosecution, by ordering the clerk of the commission to attend at the Old Bailey with the proceedings under the commission; and said, he would leave the prosecution to go on in such manner, as the law prescribed, to prove him a bankrupt and a felon, within the intent and meaning of the statute on which the prosecution was grounded. (2) A petition for an order, to enlarge the time for a bank- Petition to rupt's surrender, must always be supported by an affidavit ^"'^''8^ of the bankrupt himself. In only one instance, it is said, must be has this rule been dispensed with ; and that was, where the f^l'ported 11 • 1 1 . . , t>y an affi- bankrupt was commg to surrender to the commission, but davit of was taken and detained as a prisoner by the French, and *'^^ bank- consequently could not make an affidavit. (3) The consent of the assignees is not necessary previous to the bankrupt applying for the order ; which, in fact, has been made upon one occasion, where the bankrupt's express object in sur- rendering was, that he might be enabled to petition to supersede the commission. (4) Before the bankrupt has surrendered to his commission, Bankrupt it is a strict rule (5), that he cannot be heard upon petition ; "'"** ^^" (1) Ex parte Jb/»wore, 14 Ves. 40. (5) This rule, however conve- Ex parte Jackson, 5 Ves. 119. Ex nient it may be in point of prac- parte White, 2 Bro. 47. Ex parte tice, it is impossible to deny, Ricketts, 6 Ves. 445. Ex parte must in some cases appear in- Shiles, 2 Rose, 381. consistent and unreasonable ; — for (2) Ex parte Wood, 1 Atk. 222. it compels a party to submit, in a (3) Fuller''?, case, 10 Ves. 183. certain degree,to the very authority, (4) Ex parte Shiles, 1 Mad. 248. which he contends to be invalid — 2 Rose, 381. and the validity of which (without 512 OF THE BANKRUPT. [Ch.l3. Surrender. before he can be heard on petition. Other duties. Bankrupt must de- liver up his books and papers, and attend his assig- nees to make out his ac- counts, &c. : and his representatives, in case of his death before surrender, are not in a better situation — unless, indeed, their petition makes out a case, that would induce the Court to permit a surrender if the bankrupt were living. (1) Therefore, where a bankrupt died abroad without having surrendered — and his personal representative petitioned, that the assignees might account for the surplus of his estate, as all other creditors had been paid 205. in the pound ; — the Vice- Chancellor dismissed the petition, saying, that if the pe- titioner had any equity, he must apply to the Court by bill. (2) Besides the first and more important duties of the bank- rupt — in surrendering himself to the commissioners, and making a full disclosure and discovery of his estate and effects — there are other specific duties imposed upon him by law during the working of the commission, to enable his assignees to collect his effects, and divide them amongst his creditors. Thus, by section 116. of the new statute, the bankrupt (if thereunto required) must deliver up to the assignees upon oath all his books of account, papers, and writings relating to his estate, and discover such as are in the custody or power of any other person : and he must at all times, if not in prison or custody, attend his assignees upon every reasonable notice in writing given to him, and assist them in making out the accounts of his estate : and, even after he has obtained his certificate, he is required, upon demand in writing, to attend his assignees to settle any accounts relating to his estate, as well as any court of record, to give any such previous surrender) it is competent for him to contest, either in a civil action, or a cri- minal prosecution. Sir W. Evans thinks, that the surrender should be dispensed with, whenever the opposition of the bankrupt to the commission appears to arise from a fair and real objection to its validity, and not from any vex- atious or improper motive ; (see Letter to Romilly, page 201.) an arrangement which, it is submit- ted, would be not a very inequi- table relaxation of the above in- exorable rule. (1) Ex parte Crowther, Buck, 480. (2) Ex parte Gardiner, Buck, 458. Sect. 2.] OF THE BANKRUPT. 513 evidence touching the same, and also to do any act neces- sary for getting in his estate ; for which attendance Jie is entitled to five shiiHngs (1) per day from the assignees out of his estate. And if he shall not attend, or on attendance refuse to do any of sucii matters, (without sufficient excuse shewn to the commissioners for such refusal) the commis- sioners may, on the complaint of the assignees upon oath, cause the bankrupt to be apprehended on their warrant, and committed to prison until he shall conform to the satis- faction of the commissioners, or of the Lord Chancellor. And at all times, till the bankrupt's affairs are finished, it is his duty, when required, to attend the commissioners, (whether before, or after he has obtained his certificate) to answer any questions which may be demanded of him re- lating to his estate or effects. (2) Duiicj. allowance for his at- tendance. In case of default, may be im- prisoned. Duty at all times to attend the commis- sioners. Section II. Of the Examination of the Banlcrupt. The bankrupt, as we have already seen (3), by the With section of the act is required to submit to be ex- amined before the commissioners from time to time upon oath ; and if upon such examination he shall not discover all his real or personal estate, and how, and to whom, upon what consideration, and when, he disposed of, as- signed, or transferred, any of such estate, and all books, papers, and writings relating thereunto, (except such part as shall have been really and bond fide before sold, or dis- posed of, in the way of his trade (4), — or laid out in the (1) This allowance was before only 2^. erf. (2) Section 36. Norris v. Levy, 2 Blac. 1188. ^ (5) Ante, 507. and see Section 56. (4) This exception is copied from the 5 G. 2. c. 30. s. 1.; — and Mr. CuUen, in his able treatise on the former bankrupt laws, very L judiciously remarks, that there seems to be some inaccuracy with respect to the first part of the ex- ception, if considered (as it is ex- pressed in the statute) to be an exception merely as to discovert/. The meaning, he says, of the latter part of the exception is obvious, viz. that a general account of the Bankrupt required to dis- cover all his estate and effects. 514 or THE BANKRUPT. [Ch. 13. Of the ex- amination. Penalty in case of conceal- ment, or embezzle- ment. As to re- fusal to answer questions. Commis- sioners may ex- amine bankrupt on oath, ordinary expense of his family) — or if he shall not, upon such examination, deliver up to the commissioners all such part of his estate, and all books, papers, and writings re- lating thereto, as are in his possession, custody, or power, (except the necessary wearing apparel of himself, his wife, and children) — or if he shall remove, conceal, or em- bezzle any part of his estate, to the value of lOZ. or up- wards, or any books of account, papers, or writings re- lating thereto, with intent to defraud his creditors, — every such bankrupt " in case of any default or mlful omis- sion" (l) in any of these particulars, will be deemed guilty of felony, and liable to be transported, or imprisoned, for the same term (2), as in the case of his not surrendering to the commission. When the bankrupt had surrendered to his commission, it was decided, before the new act, that the mere refusal to answer certain questions, would not render him liable to be convicted of felony, notwithstanding such refusal proceeded from an intent to defraud his creditors. (3) But now, if those questions were connected with the discovery of his estate and effects, his refusal to answer them would, it should seem, be evidence of his intent to defraud his cre- ditors, by retaining, concealing, or embezzling his property, within the meaning of the above section. The commissioners may also (as we have already seen (4) ) by the 36th section of the new act, at any time, either be- fore, or after, the bankrupt has obtained his certificate (5), gross sums laid out in family ex- penses is sufUcient, without its being necessary to go into the particular items. But to dis- pense with the discovery of such part of his estate and effects, as shall have been sold in the way of trade, seems unintelligible in itself, and inconsistent with the other parts of the clause. The excep- tion was found for the first time in the 5 G. 2., which, he thinks, is not the only instance of a variation without improvement from the former statute of the 5 G. 1. See Cull. Princ. B. L. 34,5. (1) The learned framer of the new act says, that these words should have been inserted, but have been, by some mistake, omit- ted, in the printing of the statute. Eden, B. L. 560. n, (d). (2) The punishment was death under the 5 G. 2. c. 30. (3) Rex V. Page, 1 B. & B. 308. 3 Moore, 656. 7 Price, 616. (4) Ante, page 149. (5) See 14 Ves. 449. Ex parte Bradleu, 1 Rose, 202. Sect. 2.] OF THE BANKRUPT. 515 examine him upon oath, either by word of mouth, or on Ofthcex- interrogatories in writing, touching all matters relating to ' his trade, dealing, or estate, or which may tend to disclose any secret grant, conveyance, or concealment of his estate or effects, and to reduce his answers into writing, which the bankrupt is required to sign. And if he shall refuse and im- to answer any such questions of the commissioners, or not it"he ^^1"^ fully answer to their satisfaction, or shall refuse to sign his not fully examination, the commissioners may then commit him by '^"''^^'' their warrant to prison without bail, until he shall submit himself to their authority. By sectio7i 118. the commissioners may now, at the time Commis- appointed for the last examination of the bankrupt, or any ^ ^^_ enlargement or adjournment thereof, adjourn such examin- journ the ation sine die ,• in which case the bankrupt will be free from f^.^"^^"' arrest or imprisonment for such time (not exceeding three calendar months) as they shall, by indorsement upon the summons, appoint. (1) It is irregular in the assignees to get an ex parte order to enlarge the time for the bankrupt's last examination (2); but it seems that in one case such an order was made — the assignees consenting — though the bankrupt had absconded after surrendering to the commis- sion. (3) The better to enable the bankrupt tc finish his examin- Bankrupt ation, he may (by section 116.) at all seasonable times after "pe^t^hL he has surrendered, and before the expiration of the forty- books, &c. two days from the issuing of the commission, or before the expiration of such further time as shall be allowed him to finish his examination, inspect his books, papers, and wri- (1) And see Rex v. Perrott, the section (which relates to the 2 Burr. 1122. Davis v. Trotter, surrender, the signing such sur- 8 T.R, 475. Ex parte Hawkins, render, and submitting to be ex- 4 Ves. 691. amined) being entirely copulative, (2) Ex parte Dayrie, 1 G. & J. and constituting one entire duty, 281. the whole of which, according to (3) Ex parte Paor, 1 Mont. Dig. the principle of Rex v. Page, ante, 113. Quaere, whether (under the 514. must be omitted, in order to words of the 112th section) a bank- render him liable to a conviction rupt could in such a case be con- for felony. victed of felony, the first part of L L 2 516 OF THE BANKRUPT. [Ch. 13. Of the ex- amination. Bankrupt must de- liver in a statement of his ac- counts. Bound to answer all questions of commis- sioners. tings in the presence of his assignees, or any person ap- pointed by them, and bring with him, each time, any two persons to assist him. And the assignees cannot refuse the bankrupt such an inspection of his books, whatever his object may be ; for neither they, nor (as it seems) even the Lord Chancellor, have any discretion either to permit or refuse such inspection. (1 ) If the bankrupt is in prison, he may, as lias been already stated (2), be brought before the commissioners to be ex- amined ; and the assignees may appoint any persons to attend him from time to time, and to produce to him his books, papers, and writings in order to prepare an abstract of his accounts, and a statement to shew the particulars of his estate and effects previpus to his final examination and discovery thereof, a copy of which the bankrupt is required to deliver to the assignees ten days, at least, before his last examination. Where the bankrupt's books were in the office of a Master of the Court of Chancery in Ireland, and the assignees required the production of them, the expense of procuring them was ordered to be paid out of the estate. (3) The bankrupt is bound to answer all the questions of the commissioners relating to his property ; and the whole of his conduct and behaviour in his dealings with it is sub- ject to the strictest inquiry ; for it is the duty of the com- missioners to take care of the interests of all parties, and to examine the bankrupt fully, as to every matter connected with the disposal of his estate or effects. (4) And it seems to be contemplated by the legislature, that the bankrupt shall furnish to the commissioners at his last examination some "iSorittcn disclosure or discovery of his estate and effects; the uniform practice has been, certainly, conformable to this construction, — it being usual for the bankrupt to give (1) Ex parte Ross, 1 Rose, 53. 17 Ves. 374. (2) Ante, page 508. j and see Section 119. (3) Ex parte Cridland, 2 Rose, 164. 5 Ves. &B. 94. (4) Nerot V. Wallace, 3 T. R. 17. Janson v. IVUsoh, Doug. 257. Tai/~ lo7-*s case, 8 Ves. 33 1 . Sect. 2.] OF THE BANKRUPT. 517 in then some account in writing to the commissioners. Of the ex- This account should specify what debts are due //w« him, " and what effects he then possesses, in addition to debts which are due to him, — what he has expended, — what his capital was, — and how that has been laid out, so as to account for the reason of his becoming a bankrupt. (1) The Lord Chancellor has, however, the power in his dis- As to cretion to limit the examination of the commissioners to ^"""^V^ particular points, though such a power does not appear to Chan- have been exercised in the examination of the bankrupt : f.^".""* ^^ nor, mdeed, does there seem any great necessity tor the m- amination. terposition of the Chancellor's authority in this respect. For if the bankrupt objects to any question, he may demur to the interrogatories, and the Lord Chancellor will then judge of the question upon a petition. (2) And, if the commis- sioners are dissatisfied with any of the bankrupt's answers, and commit him in consequence, the Lord Chancellor, or any other of the superior tribunals, can in that case, upon habeas corjnis^ decide both upon the propriety of the ques- tion and the answer. Lord Hardwicke, hi one case (3), made an order for limiting the examination of a person summoned before them (who was the mother of the bank- rupt) to the point of the bankrupt's trading ; but, in an- other case, he refused to i-estrain the commissioners from asking certain questions of a person so summoned. (4) The examination of the bankrupt is not to be restrained. As to com- because his answers may subject him to certain penalties, ans^g^.^" which he has incurred by his conduct in particular trans- from bank- actions (5); and it has been said that he cannot refuse to an- '^//jjj^ swer the inquiries of the commissioners, although his answers would cri- may tend to shew that he has committed a criminal act. (e) hiJ^^^gff But he cannot, certainly, object to answer a question, because (1) Per Abbott C.J. Davie v. (4) Ex parte Bland, 1 Atk. 205. Mitford, ^B.Sck. 365. (5) Ex parte Meymot, supra. (2) Ex parte Meymot, 1 Atk. Ex parte jBarr, 1 C. B. L. 437. 199. (6) Ex parte Cossens, Buck, 53 1. (3) Ex parte Parsons, 1 Atk. 204. I, I, S 518 OF THE BANKKUPT. [Ch. 13. Of the ex- amination. Assignees have no power to stop the examina- tion as to certain points. the answer would tend to establish an act of bankruptcy. (1) Nor can he refuse to answer the inquiries of the commis- sioners, on the ground that the creditors can derive no benefit from the examination (2), or that he intends to dis- pute the commission. (3) But, if the question put to him be, whether or not he has done an act clearly of a criminal nature, he may refuse to answer it. Therefore, where a petition prayed, that the creditors might be at liberty to examine the bankrupt, whether he, or any person in trust for him, or for his benefit, had received, or were to receive, any sum of money, or other valuable consideration, for his having resigned, or as an inducement to resign, the office of town-clerk of the city of Bristol, — the petition was dismissed. (4) The assignees, too, have no power by an agreement with the bankrupt, or any other person, (though made with the consent of all the creditors) to stop the commissioners from examining the bankrupt as to certain points ; — for the public, as well as the creditors, have a right to know how the bankrupt has disposed of his property. The creditors are only interested, as far as respects the payment of their debts ; but the public are interested in knowing, whether the bankrupt ought to be restored to his former credit by obtaining his certificate. Therefore, where an agreement was made by a friend of the bankrupt, to pay a sum of money to the assignees, in consideration that they would forbear to proceed in the examination then about to be taken before the commissioners, with respect to certain sums of money, for which the bankrupt had not accounted — and that the commissioners would forbear and desist from taking his examination to these points, — such agreement was held void, as being contrary to the object and policy of the bankrupt law. (5) (1) Pratt's case, l G.&J. 58. (2) Ex parte Nowlan, 11 Ves. 516. (3) Davie v. Mitford, 4 B. & A. 366. (5) Nerot V Wallace's T. R. 17., But an agreement, by a friend of the bankrupt, to pay all the cre- ditors their full debts, in consider- Sect. 3.] OF THE BANKRUPT. 519 Section III. Of the Bankrupt's Answers. The bankrupt being, as has been already stated (1), When bound to answer fulli/ any questions put to him by the ^j^^^j^"/ commissioners, touching any matter to which he may be full and lawfully examined, — when he is required, therefore, to parti<^ular account for the disposal and application of large sums of general an- money, and questions are put to him, which call for, and swerswill will admit of, full and particular answers, general answers sufficient, will not be sufficient. For the better illustration of what is, and what is not, an insufficient answer in this respect, * two or three cases will be given at somewhat greater length, than the scope of this work has in general admitted of: — John Perrot upon his examination had the following Perrofs question put to him : " As you admit, that you have spent ^^^^' * the last week previous to your examination with Mr. * Maynard (one of your assignees) to settle and adjust ' your accounts, and to draw up a state thereof, to enable ' you to close such your examination; and do likewise admit, ' that upon such state thereof it appears, that, after giving * you credit for all sums of money paid by you, and ' making you debtor for all goods sold and delivered to ' you, from your first entering into trade to the time of ' your bankruptcy, there is a deficiency of the sum of * 13,513/.; — give a true and particular account of what ' is become of the same, and how and in what manner you * have applied and disposed thereof." To this question the bankrupt refused to give any other than the following general answer : " On goods sold this last year I have lost ation that they would not proceed not contrary to the policy of the any further under the commission, bankrupt law. Kaye v. Bolton, and would join in an application 6T. R. 154. to the Lord Chancellor to have it (1) Ante, pages 149. 515. superseded, was held legal, and L L 4; 520 OF THE BANKRUPT. [Ch. 13. Of the bankrupt's answers. Bankrupt may an- swer " to " upwards of 2000/. ; and by mournings I have lost up- " wards of 1000/. ; and for nine or ten years I have (and " I am sorry to say it) been extremely extravagant, and " spent large sums of moneys The Court of King's Bench held this to be a proper question, and the answer very in- sufficient ( 1 ) and unsatisfactory. The bankrupt, however, was afterwards (at his own instance) again brought before the commissioners; and, upon the same question being proposed to him, he particularised a woman upon whom he had spent 5000/. from December 1758 to December 1759, and also specified the times of sending and giving it to her; but stated t!)at no person was privy to this, and that the woman, whose name was Sarah Powell, otherwise Taylor, was dead, as he had heard ; that she knew him to be a bankrupt, and never returned the money or any part of it to him ; and that he gave it to her for her main- tenance and expenses, and not for a fund for her future support, or wherefrom he could draw any advantage ; that he knew in the year 1759, when he gave and remitted those sums to her, " that he was not worth any thing, and " that he was remitting to her the money of his creditors :" that he was acquainted with her five or six years, but he could not recollect what he gave her, or spent upon her during the second, third, or fourth years of their acquaint- ance ; nor did he keep any further account or memorandum thereof, either in those years, or in the year 1759, but that he spoke from memory only; that he did not take any of this money from his banker, but always took it from Mr. Thomson (since deceased), who used to sell goods for him; and that all letters between him and this woman, except one or two, were burnt or destroyed : — the Court held this answer also incomplete and unsatisfactory, and ordered the bankrupt to be remanded. (2) A bankrupt, however, may answer to the best of his remembrance and belief; and if he swears that he cannot (1) Rex V. Perrot, 2 Burr. 1 122. (2) Rex V. Perrott, 2 Burr. 5 1215.; see also LanghorrCs case, 2 Blac. 919. Sect. 3.] OF THE BANKRUPT. 4^1 positively answer further, it will be sufBcient.(l) What is a Of the sufficient answer of this nature will be best explained by ansivers. an able judgment of Lord Chief Justice Dc Grey's, in which he gives a lucid definition of the different grounds q(\^\^ of recollection and belief. The questions put to the wit- remem- ness in this case were, first : " Did you purchase by a belief"^" ' broker the two bales of silk ?" Answer : *' I cannot ' positively recollect whether I bought them of a broker, ' or not." Secondly : '* Can you form any belief whether ' you bought them by a broker or not ?" Answer : " I ' should rather believe I bought them by a broker." Thirdly: ' Whether, or not, do you believe you bought the two ' bales of silk by a broker ?" Answer : " I cannot give ' any other answer than I have already given ; viz., I can- ' not positively recollect, &c., but I rather believe I did." Fourthly : " Whether by the words * I should rather be- ' ' lieve I bought them by a broker,' you mean, that you ' do believe the two bales of silk were bought b}' a broker ; ' or whether you mean to say, you believe that the said two ' bales of silk were not bought by a broker ?" The witness refused to answer this last question ; and the commissioners committed him. Upon being brought up before the Court of Common Pleas by habeas corpus^ Lord Chief Justice De Grey said : " In the present case the witness had only two ways, or " means, to enable him to answer the question put to him, " either by recollection^ or belief; the first is hiowlcdge, and " must imply consciousness ; but in some cases no traces of a " fact remain in a man's memory, whereby he can recollect " the fact ; it is possible he may have lost all knowledge " of it; and if he has, he can only answer that he doth " not Jcnoiio, or cannot recollect the fact. A man may " recollect to a certain degree, and though he cannot re- " collect at one time, he may at another. Suppose I may ** not, or cannot, recollect — yet I may and can believe I did *' a certain act, because you tell me, you saw me do it ; — (1) Perrot v. Ballard, 2 Ch.Ca.72. 522 OF THE BANKRUFr. [Ch. 13. Of the " then I believe I did it, because I give credit to you as a a^ ^^ * " person of veracity. How is it in courts of justice, " when a man swears that he neither recollects^ nor believes, " that he did such an act ; or that he did, or did not, do " it to the best of his knowledge, remembrance, and belief? *' This is certainly a full answer. A subscribing witness ** to a bond may swear, that he has totally forgot he sub- ** scribed his name as a witness to it, and that he cannot " swear positively, that he saw the obligor seal and deliver *' the bond ; but, seeing his own hand-writing subscribed " as a witness to the execution of it, he may swear he be- " lieves he saw the obligor execute the bond ; and such " answer would be satisfactory to the Court. Suppose a " banker was upon examination asked, whether he paid " such a bill in cash or notes — and he answers he cannot " tell, but his books may inform him ; if^ on looking into " his books, he sees by the hand-writing of his clerks, that " the bill appears to have been paid in cash, or notes, he " then swears to his belief accordingly ; but if his books " be lost or destroyed, and his clerks are dead, or gone, " and he then swears he cannot tell, or doth not know, " whether the bill was paid in cash, or notes, his answer " is full, and ought to be taken as satisfactory. So a mer- " chant buying many goods may have forgot, and cannot " recollect, or be able to swear, whether he bought a certain " particular parcel and sort of goods by himself, or a " broker." The Court, therefore, in this case, held the above answers of the bankrupt to be sufiicient; for, as upon the second answer, the witness would be liable to be con- victed of peijury, if it could be proved that he himself bought the silk, and not a broker, — he had, consequently, sworn to a degree of belief sufficient to answer civil pur- poses. ( 1 ) A positive It was formerly held by Lord Mansfield, that if a bank- not^eces- ^'^P^ swear fully and roundly, — though the commissioners (1) Miller's case, 5 Wils. 420. 2 Bl, Rep. 881. Sect. 3.] OF THE BANKRUPT. 523 have every reason to believe that what he swears is not Of the true, yet they must take it to be satisfactory, provided it '^"^^ * would be satisfactory, in case it ^ere true ; and that, though they are convinced he has perjured himself, yet, if he an- ^anly a sa- swers fully, they cannot commit him for false swearing. (1) answer. But there seems to be little reason or principle in this de- Rule as to cision ; and it has since been completely overruled (2) ; — sufficienqr for it would, indeed, be a ridiculous ceremony which the commissioners would have to go through in examining a bankrupt, if they were bound to give credit to any account, however improbable or absurd, merely because he has the effrontery to swear to it. The question, therefore, in cases of this kind is, whether the answers given by the bankrupt be, or be not, sufficient to satisfy the mind of any reason- able man ; for the rule does not hold now, that a positive answer must be taken to be satisfactory, — because the bank- rupt may be indicted for perjury, if it is not true; but even an indictment for perjury cannot be supported, when the secret remains locked up in the bankrupt's own breast. (3) And this doctrine has been recognized by Lord Eldon in subsequent decisions, where it is laid down, that the commis- sioners may properly inquire into the motive of a bankrupt's conduct, with a view to see whether the motive he assigns is so improbable, that they cannot believe him ; and that the bankrupt's answer must be full in this sense — that it must be reasonably satisfactory (4) to the mind that is to (1) Pedley's case, Leach, 361. among the most reasonable men, (2) Ex parte Nowlan, 6 T. R. that it must often become a matter 118. of which case see the Record of great difficulty to decide, what 2 Rose, 401. J and see 11 Ves. 511. answer is, or is not, sufficient to Tai/lor*s case, 8 Ves. 328. Ex parte satisfy the mind of any reasonable 0/iwr, 1 Rose, 407. 2V.&B. 244. man; for, as Sir William Evans Ex parte Cassidy, 2 Rose, 217. has well observed in his Letter to 19Ves. 334. 2 Swanst. 76. Sir S. Romilly, satisfactory and (3) Per Lord Kenyon, 6 T. R. unsatisfactory answers approximate 118. so nearly to each other, that the (4) The judgments of mankind, most acute legal metaphysics can- however, as to right and wrong not supply a satisfactory criterion are found from experience to be so for distinguishing them. very different, and this too even 524. OF THE BANKRUPT, [Ch. 13. Of the bankrupt's answers. As to an- swering a question embodj^ing a fact. Commis- sioners cannot de- legate their au- thority to take the bankrupt's answer. decide. (1) When, however, a single question is followed by a direct answer, and is not afterwards followed up by any other examination respecting the transaction, which may have excited the suspicions of the commissioners, the answer must then be taken to be satisfactory. As where a bank- rupt was asked : " Whether he had not six months pre- vious to the commission executed two conveyances of his estate and effects, or part thereof, to iiis son ?" and he an- swered : " Not to my knowledge." This answer was held satisfactory, no further questions having been put. (2) Where a question is put to a bankrupt embodying as a fact, what he said, or did, on a preceding day ; — if he does not deny that he said or did so, or does not qualify it, the bankrupt must be taken to admit the fact alluded to in the question ; because he must know whether he said or did so, or not. (3) But his answering a question, embodying a statement relative to the acts of a third person^ without denying or qualifying that statement, is not to be under- stood as admitting it. (4) The commissioners cannot delegate their authority to the assignees, or any other person, to examine the bank- rupt, and take his answer. For example, — a bankrupt was committed upon the following question and answer stated in the warrant of commitment : " You having stated to the " commissioners heretofore, that if you were at liberty, " and out of prison, you could find the several persons " named by you in your balance sheet as debtors to your "estate — and being directed by the commissioners to " communicate to your assignees how, or where such, or " any of such persons could be found ; and T. C. (the as- " signee of your estate) having called upon you, and seen " you in the Fleet prison for that purpose ; — have you (1) Taylor''?, case, 8 Ves. 328.; and see ex parte Oliver, 1 Rose, 407. 2 Ves. &B. 244. (2) Norrish case, 2 Jac. & W. 437. Walker'?, case, 1 G. & J. 571 . (3) Crowley's case, 2 Swanst. 78. Goddard's case, 1 G. & J. 51. Ex parte Nowlan, 6T. R. 118. Rex V. Perrot, 4 Burr. 1122. (4) 2 Swanst. 1. Sect. 4.] OF THE BANKRUPT. 525 "given him any such information? and if not, why not?" Of the A ^^ T 1 1 • 1 i»> bankrupt s Answer : " 1 nave not, and can give no reason why t answers. The bankrupt having obtained a writ of habeas corpus^ Lord Kldon held the commitment bad in substance, saying: *' If the bankrupt, answering to the direct questions of the *' commissioners, had said, he could not, or he would not, *' tell, they would then have been authorized to commit " him. The commissioners, however, have done this : " ' We do not ourselves examine you ; but, you being in *' prison, (a circumstance, however, perfectly immaterial) *' we send the assignees to you, and now ask you, why you ** have not submitted to their examination, and answered " to their satisfaction ?' The answer is obvious ; ' You have " delegated persons incompetent to exact a submission, " upon which you can commit.' The bankrupt is entitled " to be discharged." (1) Section IV. Of committing the Bankrupt, ajid herein of the Remedies for his Discharge. The commitment of the bankrupt by the commissioners, for not submitting to their authority, is a criminal pro- cess (2) ; and when such committal takes place, it must be by warrant under their hands and seals. (3) And by section 39. of the new statute, if the bankrupt be When committed for refusing to answer, or for not fully answer- bankrupt , -11 • • 1 commit- ing, — the question put by the commissioners must be ted both specified in the warrant, in order that the court, before th*^ ques- whom the bankrupt may be subsequently brought, may answer judge whether it was a lawful question or not. But, though must be the present statute, like the former one (4), only directs the ^P^" ^ '" (1) Ex parte Cassidj/, 2 Rose, (5) Section 56., and see ante, 217. page 515. (2) Re Tat/lor, 3 East, 232. (4) 5 Geo. 3. c. 50. s. 17. 526 OF THE BANKRUPT. [Ch. 13. Of commit- ting the bankrupt. the war- rant. Whether commis- sioners should be question to be specified, yet the courts have been hitherto very strict in requiring also the answers of the bankrupt, as well indeed as the whole of the examination connected with the cause of commitment, to be stated verbatim in the war- rant, that they may be the better enabled to determine, whether the bankrupt's answers are satisfactory or not. (1) And it is probable, that the courts will still require such answers, as are applicable to the immediate cause of commit- ment, to be stated in the warrant. It must be remembered, however, that (before the new act) the tsoarrant was the only source, from whence the judge could extract information, whereupon to form his opinion about the validity of the commitment (2) ; which (as Lord Eldon observed) rendered it the more necessary to set out the whole of the examin- ation. But now, as the court or judge, either on an ap- plication for a habeas corpus (3), or on the trial of an action in respect of the commitment (4), (if required thereto by the party committed, or by the defendant in the suit) may inspect and consider the whole of the examination — a power which they did not possess before (5), — the learned framer of the new act thinks, that the necessity of setting forth the whole of the examination may be in future dis- pensed with. (6) The court or judge, however, is only authorised to look at the whole of the examination, " if required by the -party committed ;" and, therefore, it would seem that, if upon application for a habeas corpus, the party committed does not require the court or judge to inspect the whole of the examination, the necessity of setting it forth in the warrant will exist as much as it did before the passing of the act. In committing a bankrupt for not answering satis- factorily, it is doubtful, whether the commissioners should be influenced by extrinsic evidence ; but if they are so in- (1) Goddar^s case, 1 G. & J. 55. Coombes's case,2Rose,598. Brown^s case, ibid. 400. Crowley'^ case, 2 Swanst. 80. Tomlin's case, 1 G. & J. 373. (2) Tomlin's case, 1 G.& J. 375. (3) Section 39. (4) Section 40. (5) Coombes'% case, 2 Rose, 399. (6) Eden B. L. 87. Sect. 4.] OF THE BANKRUPT. 527 fluenced, the evidence should be fully read over to the bank- Ofcomviit- rupt, before they can call upon him for an answer to the bankrupt. questions proposed to him in his examination. (1) There- fore, where it appeared in a warrant of commitment, that ^^ extrin- the commissioners, in the questions put to the bankrupt, sic evi- had stated facts, of which they were informed by the de- "^"^^• position of the messenger — but the deposition was not set forth in the warrant, nor did it thereby appear to have been read over to the bankrupt at the time of his examin- ation, the effect of it being only stated in the warrant; — Lord Eldon held, that the commitment was substantially insufficient, and that this was not merely a defect in form. (2) When the last examination of a bankrupt was repeatedly What is adjourned, in oi'der that he might produce a written ac- ^'^^"^f'^'" count, or balance sheet, which he had frequently referred ment. to, as the only mode of explaining his trade and dealings, and the last adjournment was made upon his assurance, that he would produce such account if further time was given; — the commissioners were held justified in committing him, when the account was not produced on the day to which the last adjournment was made, nor any satisfactory answer given by the bankrupt, explaining why it was not produced. (3) A single question followed by a direct answer, which What is question is unvaried in terms, and not followed up by any other examination respecting the transaction, which may have excited the suspicions of the commissioners, does not (as we have already seen) afford grounds for a valid commitment ; for the judge, who may have afterwards to decide upon such commitment, has no means of determining whether the answer is satisfactory, or unsatisfactory. (4') (1) Crowley'?, case, Buck. 264. (4) fTa/^er's case, 1 G. & J. 371. 2 Swanst. 1. Norris's case, 2 Jac. & W. 437.; (2) Ibid. and see ante, 524. (3) Goddard's case, 1 G. & J. 45. Davie v. Mitford, 4 B. & A. 356. not a cause. 528 OF THE BANKRUPT. [Ch. 13. Of commit ting the bankrupt. Where there should be a suppli- mental warrant. Where bankrupt refuses to be sworn, &c. Warrant must pur- sue the words of the sta- tute. What is a bad con- clusion. Where a bankrupt, after being committed for not answer- ing satisfactorily, is again examined by the commissioners, and remanded in consequence of his answers not being more satisfactory than at first, there ought to be a supple- mental warrant of commitment or detainer, stating what had passed in the way of question and answer at such second examination ; and where this was omitted, Lord Eldon thought it a substantial, and not a mere formal de- fect. (1) It is, however, no objection to a warrant, which recites several examinations, that it omits to mention that the bankrupt, who had been committed, was discharged at the conclusion of one of the (2) examinations. And where the bankrupt, upon the commissioners pre- paring to administer an oath to him, refuses to be sworn, or to give any account of his property, the commissioners in this case need not in their warrant of commitment set forth any specific question ; for this amounts to a refusal to answer all possible questions which can be suggested. (3) And when the bankrupt refused to be sworn, on the ground that his legal adviser had not arrived, and the warrant stated generally that he refused to be sworn, without adding the reason assigned by him for his refusal, that was held to be sufficient. (4) As the statute only gives the commissioners the power to commit the party, U7itil he shall submit himself to be sworn, or full answers make, to their satisfaction, to such questions as shall be put to him, or until he shall sign and subscribe his examination, the warrant of commitment (which is in restraint of the liberty of the subject) must strictly pursue the words of the statute in the conclusion of it, otherwise the bankrupt will be ordered to be discharged. A commitment, therefore, of a bankrupt under the 39M sec- tioiif " until he shall conform to the authority of the com- (1) Coomhes's case, 2 Rose, 396. Brown^s case, ibid. 400. (2) Bromleyh case, 2 Jac. & W. 455. (3) Ex parte Page, 1 B. & A. 568. (4) Nobes V. Mountain, 3 B. & B. 253. 7 Moore, 39. Sect, if.} OF THE BANKRUPT. 529 missioversy" would be held bad ; for though the word Ofco-m- coriformy instead of the word mhmit, might be well enough, /janh-upL being of the same sense, — yet the commissioners have other authorities besides that of cxami7iing, and it might not ap- pear but that it required a submission to them in other respects. (1) So, also, a commitment "till he shall be discharged by due course of law (2)," or " for misbe- haviour (3)," has been held bad ; as well as one " for pre- varication[^)" for he might pi'evaricate, and yet give a full answer at last. And a commitment, until he shall submit himself, " and full answer make to all such questions as inay be put to him," seems to have been on one occasion (5) thought insufficient ; though in a recent case such a commit- ment was held (6) good, — the Court saying, that the ques- tions must be intended to mean lawful questions. The proper What the conclusion, however, of the warrant seems to be, " until P"'*'?^''' he shall submit himself to us, the said commissioners, and sion. full answer make to the questions so put to lum by us as aforesaid." (7) When the commissioners commit the bankrupt, for not attending his assignees (when required) to assist them in making out the accounts of his estate, (as they are em- powered to do under the \\6th section (8) of the new act,) the warrant must also pursue the words of the section giving them such power. In this case, they are authorised to commit, " until the bankrupt shall conform to their satisfaction." "Where one of the reasons appearing upon the face of the Whether commitment was illeo;al, although there was another set ^ commit- '^ ° , ment bad forth upon it which was good, yet, as the person was com- in part, is bad ill toto. (1) Bracey'?, case, 1 Salk. 348. (5) Miller'i case, 3 Wi!s. 428. Comb. 391. Bracey v. Harris, 2 Bl. 881. 5 Mod. 309. (6) Nobes v. Mountain, 3 B. & (2) Hul/mgshed^s case, 2 Lord . B. 233. 7 Moore, 39. R. 851. Rex V. Nathan, 2 Str. S80. (7) ilf^iV/er's case, supra. Rex\. (3) Milter's case, 2 Bl. 882. Perrott, Burr. \ 1 22. .1144. (8) And see ante, 512. (4) Rex V. Nathan, supra. M M 530 OF THE BANKRUPT. [Ch. 13. Of com- mitting the bankrupt. As to time of making commit- ment. When the answer would only tend to crimi- nate the bankrupt. When he absolutely refuses to Where bankrupt applies for mandamus to be further examined. Remedy for dis- charge by habeas corpus . mitted until he should submit also in the matter in which the commissioners had no authority, the commitment was held illegal in toto. (1) But this decision may be con- sidered as doubtful ; for it has been said, that where one cause of the commitment was manifestly illegal, that per- haps might be rejected as superfluous, and the commitment be referred to that cause, which, if true, was a legal one. (2) It is no objection to the commitment, that it is made in the absence of the bankrupt ; or that it is made some days after the examination took place, notwithstanding it bears date on the day of the examination. (3) Though a commitment of a bankrupt is illegal, (for not answering a particular question the answer to which would directly criminate himself) yet, if his answer would only tend to shew that he has committed a criminal act, it seems, that a committal would then be good for not answering the question. (4) And, if a bankrupt absolutely refuse to account for part of his effects, on the ground that his answer to the inquiries of the commissioners would criminate him- self, he may, nevertlieless, be legally committed for such refusal (5), on the ground that his answer is unsatisfactory within the language of the act. In a recent case, where the bankrupt (who had been com- mitted for not answering satisfactorily) applied for a man- damus to examine him, professing his readiness to make the disclosures required, the Court of King's Bench granted the writ — but directed that it should not issue without an order fi-om a judge, after the bankrupt had suggested the grounds upon which he desired to be further examined, and the refusal of the commissioners to examine him. (6) The proper remedy for the bankrupt to pursue, when he is illegally committed by the commissioners, is to apply (1) Ex parte James, 1 P. Wms. 610. (2) Miller v. Scare, 2 Bl. 1 141. (3) Batty V. Gresley, 8 East, 327. Salth case, 13 Ves.361. (4) Ex parte Cossens, Buck, 531 . (5) Ex parte Oliver, 1 Rose, 407. (6) Bromley's case, 5 Dow. & R. 310. Sect. 4.] OF THE BANKRUPT. 531 for a habeas corpus. (1) This writ may be moved for by Qfcom- him — as well as by any other party who is committed by bankrupt. the commissioners, and who thinks himself improperly dealt with; and it is returnable either before the Lord Chancellor, or any of the superior courts at Westminster in term time — or before any one of the twelve Judges in vacation. It was formerly supposed, that the Lord Chan- cellor could not issue the writ at common law in vacation (2) ; but in a late case Lord Eldon decided, that the Chancellor, as well as the Judges, had authority to do so. (3) And, whenever the writ is returnable before the Lord Chancellor, he exercises jurisdiction, not as sitting in bankruptcy, but as a law officer having a right to issue the writ. (4) Care should be taken, that a correct return is made to the habeas corpus; for on the application of the bankrupt's discharge, the Lord Chancellor will not go out of the return. (5) Notice of the application for the writ of habeas corpus When should, in general, be given by the bankrupt to the as- should be signees ; though there may be some cases, where the right given of to be discharged is so clear, that it may be done at once, p^fjop^ ^' Where notice, however, is necessary, a notice given on Saturday afternoon for Monday has been held insuf- ficient. (6) The commissioners may, after the issuing of the writ of Commis- habeas corpus and before the return to it, make (if necessary) ^'^"^""^ -^ _ ' ^ . . i"3y make a fresh warrant, stating more fully the cause for detaining a fresh the bankrupt in custody ; and such warrant may, by words warrant. of reference, incorporate the formal parts of the first warrant. (7) When the habeas corpus is returned, the Court has to exercise its discretion, in deciding whether the answer of (1) Tat/lor's case, 8 Ves. 350. (4) 7 Ves. 425. Ex parte Tomkinson, 10 Ves. 106. (5) C/w<;/(?ys case, 2 Swanst. 75. Ex parte Hijams, 18 Ves. 257. (6) Bromley\ case, 2 Jac. &W. (2) Je7iks's case, 7 Harg. St. Tr. 455. 467. (7) Ex parte Page, 1 B. & A- (5) Crowley'i, case, Buck, 264. 568. M M 2 532 OF THE BANKRUPT. [Ch. IS. Of com- mitting the bankrupt. As to affi- davits in explana- tion. When mere in- sufficiency mform, court will re-coni- mit; except when. Court may look at whole of the ex- amination. the bankrupt is satisfactory, or not; and if it believes the statement which the commissioners have disbelieved, it will, of course, order him to be discharged. (1) But the Court has no authority to receive affidavits in explanation of the party's conduct and answers before the commis- sioners, — but only to inquire into the validity of the cause of the commitment, as stated on the face of the return. (2) The Court will, therefore, not discharge a bankrupt, merely upon his producing affidavits, that he had made a discovery of his estate and effects, — when he was committed for not answering and making such discovery ; for if the statement in the commitment be untrue, he may bring an action of false imprisonment. (3) If, upon the return of the habeas corpus, any insufficiency appears merely in \he form of the warrant, by its omitting to specify any question put by the commissioners, — the Court or Judge, before whom the party shall be brought, may (and is indeed required by the statute (4) ) to recommit him, unless he can shew that he has fully answered all lawful questions put to him by the commissioners; or (if he was committed for refusing to be sworn, or for not signing his examination,) unless it shall appear to the Court, or Judge, that he had a sufficient reason for the same. And, as has been already observed (5), in case the whole of the examination shall not have been stated in the warrant of commitment, the Court or Judge is directed (if required thereto by the party committed) to inspect and consider the v.'hole of the examination (6), whereof any such question was a part ; and if it shall then appear, that the answer of (1) Ex parte Oliver, 1 Rose, 407. (2) Ex parte James, 1 Chit. Rep. 110. (3) Gregory's case, 5 Mod. 568.; and see Miller v. Seare, 2 Bl. 1141. (4) Section 39.; and see Ex parte Page, 1 B. & A. 568. (5) Ante, 526. (6) LorJ Eldon in his judgment inCoombes's case, 2 Rose, 599. in- timated, that there would he some difficulty, when the application for a discharge upon a habeas corpus is made to a Judge at chambers, in regard to the mode by which the Judge could look into the pro- ceedings, as there was some doubt, with respect to his power to com- pel the production of them. But Sect. 4.] OF THE BANKRUPT. 533 the party committed is satisfactory, tlie Court or Judge Ofcom- may, in that case, order him to be discharged. Tanknpt^. What are considered matters oi form, and what of sub- stance, in the construction of the warrant of commitment, ,ner^\^at. may be collected from some of the preceding cases. In ters of one of these, where the bankrupt refused to be sworn, and /"'''"• the warrant committed him till he should full answer make to the questions " put to him as aforesaid," no questions having been previously set out, — this inaccuracy was held to be mere matter oiform, which would justify the Court in recommitting the bankrupt. So, where the warrant set out several questions, to some of which, taken singly, the answers were satisfactory, — it was considered no valid ob- jection, that the warrant committed the party till he should full answer make " to the questions so put to him as afore- said." (1) These are two instances of insufficiency merely in the form of the warrant. The above noticed case of Ex parte Cassidy (2) (where it appeared on the face of the warrant, that the commissioners had improperly delegated their authority to other persons to examine the bankrupt) will explain what is considered a defect in substance. The commissioners, having a discretionary power to com- When mit the bankrupt if his answers are not satisfactory to '^.of"'"'s- ,. , , • c • ■ sionersnot themselves, are not liable to an action tor so committing liable for him, — notwithstanding he is in fact discharfjed afterwards cpn™it- . . tin" bank- by habeas corpus, on the ground of the Court thinking rnpt. the answers to be satisfactory (3); though the contraiy of this decision was formerly held. (4-) Neither will any ■now , as Ae statute expressly directs the production of that, which he the Judge, if required thereto by is directed b}^ the legislature to the party committed, to inspect inspect. the whole of the examination, for (1) Ex parte Vogel, 2 B. & A. the purpose of considering whether 219. he has answered satisfactorily or (2) Ante, page 525. not, it is submitted, that as a ne- (3) Dowelt v. Impey, 1 B. & C. cessary consequence of this pro- 165.; and see ante, page 166. vision, the Judge must now be (4) ikfi^r v. iScare, 2 Bl. 1141. clothed with the power of ordering M M 3 534 OF THE BANKRUPT. [Ch. 13. Of com- mitting the bankrupt. When bankrupt desirous to com- plete his examina- tion. action lie against them for a commitment, which is bad only for a formal defect in the warrant. ( 1 ) When a bankrupt is committed for not answering, and is afterwards desirous to complete his examination, and be discharged, he must send word to the commissioners, that he is willing to submit and answer the questions, — and the commissioners will then appoint a meeting at the expense of the estate ; for the bankrupt has no estate, or, at least, is supposed to have none. (2) And where, in such a case, the bankrupt applied to be brought before the commis- sioners, but the assignees refused, unless he would pay the expenses of the meeting, — the Lord Chancellor di- rected, that if there were no effects, the commissioners should meet gratis, receiving their fees out of future effects, if there should be any ; and added, that if the bankrupt should be again committed for not answering fully, he would find it very difficult to obtain another order to bring him up. (3) If any gaoler, to whose custody the bankrupt, or any other person, shall be committed by the commissioners, shall suffer either the one or the other to escape (4), he is liable to a penalty of 500/. (1) Bracci/*s case, Comb. 391. (2) Rex V. Jackson, 1 T. R. 654. Ex parte Graham, 2 Bro. 48. (3) Ex parte CoAew, 18Ves.294. (4) Section 58. Sect. 5.3 bankrupt's rights and privileges. 5'il Section V. Of the Banknipt's Rights and Privileges. 1. Of his Privilege.fr 0711 Arrest. 2. Of his Maintena7ice during his Examination. 3. Of his Allowajicc under the Commission. 4. Of his Right to the Surj^lus. 5. As to his Right to acquire ProjJerti/ before obtaining his Certificate. (And see further " Supersedeas,'* " Certificate" *' Actions by an micertificated Bankrupt") 1. Of the Privilege of the Bankrupt from Arrest. The bankrupt is by the new statute ( 1 ) declared to be For what free from arrest or imprisonment by any creditor, in P^^o'l coming to surrender, as well as after such surrender, for privileged. the period of forty-two days — and for such further time as shall be allowed him for finishing his examination, not exceeding three calendar months (2) — provided he is not in custody at the time of his surrender. And if he should be arrested for debt, or on any escape warrant (3), in coming to surrender, or shall after his surrender be so ar- rested within the before-mentioned time, he is entitled (on producing the summons under the hands of the commis- sioners to the officer who shall arrest him, and giving him a copy thereof) to be immediately discharged. If the officer shall afterwards detain him, he is liable to a penalty of Si. for every day of such detention, to be recovered by the bankrupt for his own use, by action of debt in his own name, in any court of record at Westminster, with full costs of suit. (1) Section 117. (3) That is, an escape warrant (2) Section 118. at the suit of a creditor. 14 Ves. 41. 1B.&A.511. MM* 536 OF THE bankrupt's [Ch. 13. Privilege from arrest. Does not lose his privilege by refusing to sur- render, if he sur- renders in due time after- wards. If in pri- son, not protected from sub- sequent detainers. Until ac- tual sur- render, privilege confined to the act of his going to surrender. And, though a bankrupt may have been apprehended by the warrant of the commissioners, for any refusal to submit to their authority, or any non-conformity to the provisions of the act of parHament, — yet, if he shall (within the time allowed him to surrender) afterwards submit to be examined, and in all things conform, he will be entitled to the same benefit under the act, as if he had voluntarily surrendered. ( 1 ) It is also immaterial, whether the bank- rupt surrender at a private, or a public meeting of the commissioners ; for he is in either case, after his surrender, equally entitled to his privilege from arrest. (2) If the bankrupt be in prison at the time of his surrender, he is, of course, not protected from subsequent detainers: for the above section only gives him the privilege of free- dom from arrest or imprisonment, — provided he is 720/ in custody at the time of his surrender. (3) This privilege of freedom from arrest is intended to en- able the bankrupt to surrender himself to the commission- ers, as well as to encourage him the more speedily to do so, — and is not a general and independent privilege, during the whole time allowed by the act of parliament for the sur- render. Therefore, until actual surrender, the privilege is confined to the act of his going with that object. Thus, if a bankrupt be abroad, and returns with an intention to sur- render, and is arrested on his landing, or within a day or two after his arrival, before he can conveniently make his surrender, — he will be entided to the privilege, if it appears that he was actually going to surrender. (4') So, where a bankrupt was arrested in London, and it appeared that he was bond Jide in his way from Bath to Liverpool, for the purpose of examination before the commissioners, — he was discharged by Lord Eldon, upon motion. (5) But, where a bankrupt came from Holland to England within the forty- two days, with an intent to surrender himself upon the forty- (1) Section 115. (2) Ex parte Wood, 1 Rose, 46. (.3) Ex parte Goldie, 2 Roge, 345. (4) Kenyon v. Solomon, 1 Cowp. 156. (5) Ogle's case, 11 Ves. 556. Sect. 5.] RIGHTS AND PRIVILEGES. 5S7 second day — but, finding that his time for surrender was en- Privilege larged to a further day, he then laid aside his design of sur- arrest. rendering himself upon the forty-second day, and did nol, in irutkf mean to surrender until the enlarged day — and in the intermediate time was arrested by one of his creditors, — it was held, under these circumstances, that he was not en- titled to this privilege. ( 1 ) Where a bankrupt, however, before he received a summons from the commissioners, delivered his keys and effects to the messenger, and pro- mised to submit to the directions of the law — and, only an hour after he had been served with the commissioners* summons to surrender, was arrested ; — upon petition to the Lord Chancellor to be discharged, it was considered in this case, that what the bankrupt had already done was all that he could then do, and was, so far, a compliance with the requisitions of the bankrupt law ; — he was, therefore, ordered to be discharged, upon his consenting not to sue the officer who arrested him. (2) When the bankrupt has surrendered, his privilege con- If examin- tinues from that time until and during the whole of the p'-^''" ,^"" . largeci, forty-second day (3); — or, if the time for his surrender privilege has been enlarged by the Lord Chancellor, and he then continues, duly surrenders, and the commissioners enlarge the time exceedinf^ for his examination.) his privilege will continue during three ca- the whole of such enlarged time (not exceeding three njouths calendar months) as the commissioners shall by indorse- ment upon the summons appoint. (4) And the same, if the commissioners enlarge the time for his examination (after he has surrendered) within the forty-two days. (5) And, though the commissioners omit to insert in their certificate of the surrender the actual day, until which the (1) Kenyonv. Solomon, 1 Cowp. (4) Section 118.; and see Simp- 1 5Q. sun's case, Buck, 4-2i. 2 Wils. 127. (2) Ex parte De Fries, Davies, Ex parte Hawkins, 4 Ves. 691. 163. (5) Simpso7i' s vaiC, swpra. Davis (3) Ex parte Donlevy, 7 Ves. v. Trotter, 8 T. R. 476. Darby v. 317. Ex parte jDawj, Buck, 80. Baughan, sT. R. 209.; and see re Dalton, 1 Ball & B. 130. 538 OF THE bankrupt's CCh. 13. Pnvilege from arrest. Where bankrupt attends without a Where commis- sioners ad- journ sine die. Where time for surrender is expired, and bank- rupt ob- tains an order for his sur- render. examination is adjourned, the bankrupt is still entitled to his privilege ; for his protection is granted b}' the statute, independently of the commissioners' certificate. ( 1 ) But commissioners cannot give the bankrupt a protection for an unlimited period of time beyond three calendar months, in order to enable him to make a full disclosure of his estate and effects. (2) The omission by the commis- sioners to indorse the adjournment of the bankrupt's last examination on his summons, will not deprive him of his privilege. (3) And where a bankrupt's last examination has been adjourned sine die, — if at a meeting under the com- mission for a distinct purpose, and without a summons, he voluntarily attends in order to be examined, and is there arrested, — he is entitled to be discharged on general com- mon law principles : viz. as a witness, or party, attending the commissioners. (4) But where the last examination is adjourned sine die, on the ground that the commissioners consider all further examination useless — and during the adjournment, and before any further meeting is had, the bankrupt is arrested, — he will not in this case be entitled to be discharged (5) ; unless, indeed, the commissioners have (pursuant to the 118th section) indorsed a protection on the bankrupt's summons. Where the time for the bankrupt's surrender had ex- pired, and he had obtained an order of the Lord Chan- cellor for the commissioners to be at liberty to meet and take his surrender, and he was afterwards taken in execution ; — Lord Eldon, upon his application to be discharged, said it was a new case, and doubted his own authority to make the order, as the bankrupt was not strictly comi?ig to sur~ render accordifig to law ,• and he added, that if he made any order for the bankrupt's discharge, it must be upon the plaintiflP in the action, and not upon the gaoler. (6) (1) Ex parte Leigh, 1 G. & J. 264. Price's case, 3 V. & B. 23. (2) Section 118., ante, 515.; and see Claughlon v. Leigh, 1 B. & C. 652. Ex parte Woods, 1 Cr.&J.75. (3) Price's case, 3 V. & B. 23. (4) Ex parte Ross, 1 Rose, 260. (5) Ex parte Woods, 1 G.& J.75. (6) Anon. 15Ves. 1. Sect. 5.] RIGHTS AND PRIVILEGES. 559 After the bankrupt has passed his final examination, if Privilege he is summoned by the commissioners to attend them upon arrest. declaring a dividend, or for any other purpose, he is equally protected with all other persons who may be ex- fgnjcr jf amined before them, eundo, redeundo, et morando ; for the sumvwned bankrupt, or person so summoned, is to be considered in n^ss,^'JJers the character of a witness, or party attending a legal protected tribunal, sitting in the nature of a court in the administra- ^^"^> ^^ tion of justice. ( 1 ) But if the bankrupt, or any other party, comes voluntarily before the commissioners, without a sum- mons, and without any 7iecessity for his so doing, he will then not be privileged (2) eimdo et redeundo. A bankrupt is entitled to the privilege of a party at- Upon at- tending his own cause, in freedom from arrest, on his re- petition turn from attending his petition for leave to surrender, for leave after the time originally appointed for his surrender has *** ^^^' expired, — provided he deviates no further, than to call on privileged his solicitor to arrange the proper steps for giving effect to ^^deundo. the order. (3) And whether the debt, upon which a bankrupt is ar- Imma- rested, is, or is not, proveable under the commission, he is ^^^^ j.j^ ^' equally entitled, in all the cases before mentioned, to the debt is privilege from arrest. (4') The privilege also extends to of^n^t an attachment for not paying money under an award, Priviiecre which has been made a (5) rule of court, — or for not lodging extends to money in court, pursuant to a decree or order of the Court ^^^j. ' of Chancery. (6) For, though the form of the process be under an criminal, yet if it issue to compel payment of a debt, it will a^j^'-f "^ be as much an arrest within the meaning of the statute, as every other mode by which a creditor can arrest a bank- rupt for a debt. (7) And where the Lord Chancellor ^ll^^^^" rected. (1) Arding v. Flowers, 8 T. R. (4) Darby v. Baugham, 5 T.R. 534. 209. (2) Anon. 1 Salk. 544. Ex parte (5) Ex parte Parker, 3 Ves. 554. Ross, 260. (6) Wa/l v. Atkinson, 2 Rose, (3) Ex parte Jackson, 1 5 Ves. 1 96. 116. (7) Re M'fViUiams, 1 Sch. & Lef. 169. 540 OF THE bankrupt's [Ch. IS. Privilege from arrest. Where arrest ille- gal, all de- tainers bad. Surrender does not protect bankrupt escaping from pri- son. As to pro- tection from ar- rest at the suit of the crown. directed an action to be brought by the bankrupt against the assignee to try the validity of the commission, and the bankrupt (having failed in the action) was taken in exe- cution for the costs, he was, on petition to the Chancellor, ordered to be discharged. (1) When the arrest is illegal, all detainers are inoperative, and the bankrupt will be discharged from them ; for it is the arrest alone that gives any efficacy to the detainers. (2) But, where a bankrupt was committed for a contempt, in not having obeyed an order of the Lord Chancellor to bring into the Master's office the title deeds of an estate sold under the commission — and the sale having been un- duly made, the bankrupt was ordered to be discharged from that commitment — but detainers having been lodged against him, he petitioned also to be discharged from those detainers ; — Lord Eldon, after consulting with two of the judges, held, that these subsequent detainers must stand (3), according to the practice of the law. Where a bankrupt escaped out of the custody of the marshal of the King's Bench, and surrendered to a com- mission subsequently issued, being then at large, — a sur- render, under these circumstances, was held not to operate as a protection against the right of the marshal to retake him, and retain him in custody. (4) It was formerly considered, that a bankrupt was not privileged from arrest upon an extetit, even whilst under examination, as the crown was not bound by the bankrupt acts. But it has been more recently held, that, although the crown was clearly not bound by the statutes in bank- ruptcy, the bankrupt was privileged from arrest whilst in actual attendance before the commissioners : for that the (1) Ex parte Gregory , l G.& J. 177. (2) Ex parte Ross, supra. Ex parte Moore, Buck, 521 . Ex parte Wilson, 1 Atk, 152.; but sec Bar- clay V. Fabcr, 2 B. & A. 7'JJ. control. (3) Ex parte Dumbell, 10 Ves. 528. (4) Anderson v. IIamj)fon, I B. & A. 308. Ex parte Johnson, 14 Ves. 56. Sect. 5.] RIGHTS AND PRIVILEGES. 541 spirit of the common law affects the Crown equally with Privilege any other creditor ; and the principle is, that all witnesses „^^g( are protected in attending a Court competent to enforce • their attendance. (1) If, however, the bankrupt be ar- rested at the suit of the Crown, when not in actual attend- ance before the commissionei*s, or on his way to or from them, he is in this case not entitled to be discharged from such arrest, — although the commissioners have in fact enlarged the time for his examination, and extended his protection. (2) When the bankrupt is entitled to be dis- charged from an arrest at the suit of the Crown, the order of discharge will be made on the gaoler, who has the bankrupt in custody. (3) A bankrupt, however, may be taken by his bail, even whilst Not pro- attending to pass his examination, so as he is not taken tected a"'ainst his away from the commissioners before his examination is bail. finished ; for the statute expressly excepts the case, where the bankrupt is in custody at the time of his surrender ; and a defendant is always considered in law to be in the custody of his bail. (4) But in the case of bail to the sheriff on an arrest^ — that is not a custody within the strict mean- ing of the statute, at least, while the bail permit the prin- cipal to go at large — whatever it might be if they kept him in their actual cnsfodij. (5) Lord Hardwicke (in a case of this kind) observed, that he did not know that bail, taking their principal coming to a court of justice to be ex- amined as a witness, had ever been determined to be guilty of a contempt of the court, provided they brought him to be examined by that court. (6) The courts, however, As to en- have sometimes (upon application of the bankrupt) en- |?''S^"f larged the time for his surrendering in discharge of his surrender bail, in order that he might pass his examination before "? '^'*' „ <=> >■ charge ot bail. (1) Ex parte Russell, 1 Rose, (4) Ex parte GiMon«, 1 Atk. 258. 278. 19Ves. 163. (5) Ex parte Leigh, 1 G. & J. (2) Ex parte Temple, 2 Rose, 22, 267. (3) 1 Rose, 278. 19 Ves. 163. (6) 1 Atk. 238. 54.2 OF THE bankrupt's [Ch. 13. Privilege from arrest. Mode of proceed- ing to be discharged from arrest. When bankrupt in custody such surrender. (1) But, as the commissioners have now authority to have the bankrupt brought before them to be examined, whether he is in custody upon mesne or upon final process, there does not seem to be any necessity henceforth for such an application ; the object of which was, to prevent the inconvenience and expense of the commis- sioners attending the bankrupt in prison to take his examin- ation, as they were formerly obliged to do when he was charged in execution. (2) The Court of Exchequer, however, have made an order of this kind since the commissioners have possessed the authority to have the bankrupt so brought before them (3) — a power which was first given them by the 49 G. 3. c. 121. s. 13. It does not seem that the commissioners have power to discharge a bankrupt, or a witness, who is improperly arrested whilst attending them ; the practice being to apply either by motion, or petition, to the Lord Chancellor for a discharge — and, if necessary, for process against the officer for a contempt. (4<) A person undertaking to in- demnify the officer against conduct, which would amount to a contempt, will be considered equally guilty of the con- tempt himself. (5) The application for the discharge of the bankrupt should be by petition^ unless the arrest is under circumstances amounting to a contempt — in which case it should be by motion. (6) The contempt, however, is only cognizable as such by the Lord Chancellor sitting in bankruptcy, and not by any other court ; therefore, the Court of King's Bench refused to discharge a person ar- rested whilst attending commissioners of bankrupt, as the contempt was considered to be not to that court. (7) The proof or claim by a creditor of his debt, we have before seen, operates of itself as a discontinuance of any (1) Maude V. Joweti, 3 East, 145. Crump v. Taylor^ 1 Pri. 74. Glendinnmg v. Robinson, 1 Taunt. 320. (2) 5 Geo. 2. c. SO. s. 6. (3) Crump V. Tat/lor, supra. (4) Ex parte Kerney, 1 Atk. S5. Ex parte King, 7 Ves. 512. (5) Ibid. Ex parte Dixon, 8 Ves. 104. (6) Anon. 1 Rose, 230. (7) Kinder V. Williams, 4T.R.S77. at the suit a cre- SeCt. 5.'\ RIGHTS AND PRIVILEGES. 543 action previously brought against the bankrupt (1) ; and if Privilege the bankrupt is in custody at the time of such proof or ^^J^^f claim, he is entitled to be immediately discharged. Where also a creditor, who holds the bankrupt in arrest under ^^ mesne process, petitions to prove his debt, the bankrupt is ditorprov entitled to his discharge instanter upon the order for the 1?°', ^°*?' '^ . ^ . tied to ira- proof. (2) So, where a creditor (previous to the commis- mediate sion) obtained a verdict against the bankrupt for a nominal discharge. sum subject to a reference, and the award was made, and judgment entered up for the debt and costs after the issuing of the commission — upon which the creditor proved his debt, and took the bankrupt in execution for the costs — the bankrupt was in this case ordered to be discharged. (3) 2. Of the Batikrupfs Right to Mainte7ia7ice durifig his Examination. By section 114. of the new statute, the commissioners Only en- are empowered before the choice of assignees — and, after ^^^^^^ *<* assignees are chosen, they are then authorised (with the ap- he passes probation of the commissioners) from time to time to make "^^ exami- such allowance to the bankrupt out of his estate, until he shall have passed his last examination, as shall be necessary for the support of himself and his family. This is a new and a very proper enactment in the Bank- rupt law — the former statutes having contained no pro- vision to this effect, — though the custom was to make the bankrupt a reasonable allowance for his maintenance. For, as the bankrupt is bound to employ himself previously to his examination, in making up his accounts and arranging his affairs for the benefit of his creditors, it seems but just, that they should allow him sufficient to maintain himself and his family, whilst he is devoting his time to their service. But though the bankrupt is now entitled to such main- Not jus- tenance, as the commissioners or the assignees shall think ^^^^^ "^ appropri- (1) See ante, page 184. (3) Ex parte Haynes, 1 G. & J. (2) Ex parte frvivg, Buck, 423. 107. 544 OF THE BANKRUPT S [Ch. 13. Mainte* nance. ating of his own au- thority any part of his effects for that purpose. When he pays \0s. in the pound. When 12s. 6d. When 15*. Wlien he does not pay \0s. proper to allow him, yet he will not be justified, and still less any third person, in taking any part of his effects and appropriating it for that purpose, without the consent of the commissioners or assignees. For where a sister-in- law of the bankrupt, at his request, took out of his house such a quantity of his plate as would raise 20/. for the maintenance of himself and family, and borrowed 20/. upon it, which was actually expended for that purpose — it was held, that the assignees might recover the value of it in trover against the sister-in-law ; though Lord Mans- field said, it was a very cruel case, — but if the assignees in- sisted on their claim, that the Court could not relieve the defendant. (1) The bankrupt, however, (as we have be- fore seen (2),) may determine on the propriety of retaining such part of his wearing apparel as he thinks is necessary for his use ; for he does this at the risk of being indicted for felony. (3) 3. Of the Bankrupfs Allowance under the Commission. By section 128. of the new statute, — if the bankrupt ob- tains his certificate, and the net produce of his estate pays 105. in the pound, he is entitled to an allowance of 5 per cent, out of such produce, to be paid him by the assignees, provided such allowance shall not exceed 400/. (4) If his estate pays 12s. 6d. in the pound, he is entitled to an allowance of 7/. lOs. per cent., not exceeding 500/. And if the estate pays 155. in the pound or upwards, he is then entitled to an allowance of 10 per cent., not ex- ceeding 600/. But, if the produce of his estate shall not pay the credi- tors 10s. in the pound, the bankrupt can in that case only be allowed so much as the assignees and commissioners (1) Thovipsonv. Cotincell, iT.R. 157. (2) Ante, .'584. (.3) Ex parte Ross, 1 Rose, 35. 17 Ves. 574. (4) These regulations are similar to those in the 5 Geo. 2. c. ."0. s. 7. & 8., except that the extent of the allowance is now made double the amount of what the bankrupt was before entitled to. The right to any allowance was first given to the bank nipt, by the 4&.') Ann. c. 17. Sect. 5.] RIGHTS AND PRIVILEGES. 545 shall think fit, not exceeding 31. per cent., and 300^. in Allowance. the whole. Under the former statutes, it was held that the bankrupt Whether was not entitled to his allowance until a ^nal dividend was ^^^{^.["j ^q made ; and the reason assigned was, that the 5 G. 2. c. 30. allowance s. 7. only gave him an allowance, in case the net produce of ^^ "j'^^jf his estate should be sufficient to pay the creditors 105. in vidend. the pound " over atid above such allowafice ;" and that, as any creditor might come in and prove his debt before a final dividend, it could not be ascertained till then, whether the bankrupt would be entitled to any allowance at all. (1) But it will be seen, that the clause in the new statute is somewhat differently worded from that of the 5 G. 2. ; for the words, " over and above such allowance/* seem purposely omitted ; and it may, therefore, be a question now, not only whether the bankrupt is not entitled to his allowance before a. final dividend ; but whether, if the net produce of Quaere, his estate amounts to a sum sufficient to pay his creditors ^j^j^, • ^ 10s. in the pound, he is not entitled to his allowance out sufficient o{ that very sum, notwithstanding the produce of his estate j^j'^J is only just sufficie?it to pay the creditors 105. in the pound pound. — and, consequently, after the deduction of his allowance, will not yield a dividend equal to that amount. It has been said, if the bankrupt has once received his As to re- allowance, he is not bound afterwards to refund any part allowance of it (2) ; but there may be some doubt as to the correct- when once ness of this position — for the Lord Chancellor has certainly '"^^^^^^ • the power to make the bankrupt refund ; and it would de- pend most probably upon the peculiar circumstances of the case, whether the Chancellor would interpose his authority or not. (3) The above section, as we perceive, does not enable the Bankrupt bankrupt to demand his allowance until he obtains his cer- !"H^'' ^^". . . ... t^'" certi- tificate ; and it would, indeed, be of no service to him if he ficate be- (1) Ex parte Stiles and Pickart, (5) See ex parte Lanfear, 1 Robc, 1 Atk. 208. 442.' (2) R%issd V. Riis-wl, I Bro. 270. N N 54-6 OF THE bankrupt's [Ch. 13. Allowance, fore divi- dends, to claim his allowance. When right to allowance vests. Allowance independ- ant of in- terest to creditors. As to al- lowance under a second commis- Allowance to part- ners under a joint could — for until he is entirely cleared by his certificate, every thing in his hands is liable to satisfy the claims of his creditors. (1) And he must not only obtain his certi- ficate before he can claim his allowance — but he must also obtain it before the dividends are made, which entitle him to such allowance. (2) When the bankrupt has obtained an order of the commis- sioners for his allowance, it becomes a vested interest in him, and is transmissible to his representatives (3); but, according to the words of the above section, the interest does not actually vest in the bankrupt until a dividend is declared. [A) It is not necessary, however, that the bank- rupt should be alive at the time of the declaration of the dividend (5), or that he should have actually obtained the commissioners' order for his allowance (6); for where a bankrupt died before his estate paid 10s. in the pound, the Vice-Chancelloi', after that dividend had been declared, ordered the assignees to pay the allowance to the bankrupt's personal representative. (7) If the bankrupt's estate pays 205. in the pound, and there are creditors whose debts carry interest, they are not en- titled to such interest, in diminution of the bankrupt's allowance. (8) Under a second commission the bankrupt is entitled to no allowance, unless his estate pays 15s. in the pound ; for a certificate under a second commission only protects his person, unless every creditor receives a dividend to that, amount ; and his allowance, therefore, would in that pre- dicament become the property of his creditors. (9) Partners are not entitled under a joint commission to a double allowance, that is, one in respect of the joint, and another in respect of the separate estate ; but only one (1) Ex parte Grier, 1 Atk, 207. (2) Groome v. Potts, 6 T.R. 548. (3) Ex parte Trap, 1 Atk. 208. (4) Ex parte Salford, sittings after Trin. T. 1 826, per Vice Chan- cellor. (5) Ihid. (6) Ex parte Calcot, 1 Atk. 209. (7) Ex parte Salfo7-d, supra. (8) Ex parte Morris, 1 Ves. jun. 132. 2Bro. 79. Bromleyv.Goodere, 1 Atk. 80. (9) Ex parte Gregg, 6 Ves. 238. Sect. 5.J RIGHTS AND PRIVILEGES. 547 allowance is to be divided between them, in respect of both Allowance. joint and separate effects ; and this is to be calculated ac- {.ominis- cording to the proportions, which the surplus of each of sion. their separate estates, after payment of their respective separate debts — and the respective moieties of their joint estate — may have contributed to the payment of their joint debts. (1) Neither is a bankrupt under a joint commission entitled to any allowance, unless both the joint and separate creditors are paid 105. in the pound. (2) Notwithstanding, therefore, the separate estate of the bankrupt pays 205. in the pound, he cannot claim any allowance, before the joint creditors are paid with the surplus 105. in the pound. (3) And where a separate commission issued against one of several partners, under which the separate estate paid only 25. in the pound, and the joint estate 185., the bankrupt was, in this case, held not entitled to any allowance. (4) Under a joint commission, both the separate and joint estates contribute to the payment of the allowance. (5) By the new statute, a remedy is provided for a great One part- hardship, which sometimes occurred under a joint com- "er now • • 11. ,- , 1 ,11 -r-. entitled to mission, as to the claim ot a bankrupt s allowance. 1 or, allowance, under the former law, it was held that one of several though the partners was not entitled to any allowance (notwithstanding ^^^ ob- he had obtained his certificate, and both estates had paid tained his ccrtitic&tc 105. ,in the pound,) unless every one of the partners had also obtained his certificate. (6) But now by section 129. of the new statute, it is declared, that in all joint commissions, under which any partner shall have obtained his certificate — if a sufficient dividend shall have been paid upon the joint estate, and also upon the separate estate of such partner, — (1) Ex parte Bate, 1 Bro. 453. (5) I Madd. 70. Mr. Christian, 1 C. B. L. 523. however, suggests that it should be (2) Ex parte Poivell, 1 Madd. 68. paid only out of the joint effects. (3) Ex parte Holmes, 2 Rose, 2 Christ. B. L. 314. 95. sVes. &B. 137. (6) Ex parte Poivell, 1 Madd. (4) Ex parte Farlow, 1 Rose, 68. Ex parte Bate, 1 Bro. 453. 421. 2 Ves. & B. 209. S.P. Ex parte Terrell, Buck, 345. N N 2 548 OF THE bankrupt's [Ch.lS Where bankrupt deprived of all right to allow- AUowance. such partner shall be entitled to his allowance, although his ' co-partner, or co-partners, may not be entitled to any. There are, however, certain cases of misconduct on the part of the bankrupt, which will deprive him of all right to any allowance, and which equally bar him from obtaining his certificate. Thus, if he has lost by gaming ( 1 ) in one day 20/. — or 200/. within one year before his bankruptcy — or 200/. in one year by stock-jobbing ; — or if he has destroyed or falsified any of his books or papers with intent to defraud his creditors — or has concealed property to the value of 10/. [ — or has been privy to a fictitious debt being proved; — he will in either of these cases forfeit all claim to any allowance. Assignees required to account to bank- rupt for surplus. But cre- ditors first entitled to interest. 4. Of the Banhiipt^s Right to the Surphis. By section 132. (2) of the new statute, the assignees are required, upon request made to them by the bankrupt, to declare to him how they have disposed of his real and personal estate, and to pay the surplus, if any, to him or his personal representatives. And if the creditors, who have proved under the commission, shall be fully paid, the bankrupt will be entitled to recover the remainder of the debts due to him. The expenses of working the commission are, of course, to be first refunded to the assignees out of the bankrupt's estate, before the surplus is restored to him. (3) And the assignees, also, are now restricted from paying such sur- plus, until all the creditors who have proved shall have received interest upon their debts, to be calculated at the rate, and in the order, specified in the act (4); this pro- vision differing from the former rule, which allowed interest to the creditors only when there was a contract^ either ex- (1) Section 130. (2) This clause is substituted for the5Eliz. c. 13. S.4. iJac. l.c.15. s. 15. (3) Ex parte Dew, cit. 2 Ves. jun. 301. ; and see Bromley v. Goodercy supra. (4) See ante, page 271. Sect. 5.] RIGHTS AND PRIVILEGES. ^*^ pressed or implied, to pay it. (1) And though creditors ^^rplus. may have signed receipts in full, upon a payment of 205. in the pound, under the idea that there would be no surplus, they are nevertheless still entitled to interest before the bankrupt can claim the surplus. (2) A bankrupt pending a commission has a right to an in- Bankrupt spection of the accounts of his assignees, in respect to nis j.^^^.^ ^nd interest in the surplus; and the Lord Chancellor will, impeach upon petition, rectify palpable errors pointed out by the j^^^^, .^^_ bankrupt. But where the bankrupt has to a certain degree counts. an intercourse with the estate during the commission, he will not afterwards, in the Master's office, be permitted to surcharge and falsify accounts as to dividends paid, which Iiave been settled by the commissioners in the administration of the bankruptcy. (3) If the bankrupt is dead, and there is real and personal When estate more than sufficient to pay the debts with interest, j^^jead the surplus real estate must be conveyed to his heir (if he surplus died intestate), and his personal estate be divided amongst (4) ^^g^j^gj). his next of kin. But if he leaves a will, then the surplus and next of both estates will be subject to the dispositions contained , , ' """ in it, notwithstanding the will was made previous to Ins leaves a bankruptcy ; for neither the bankruptcy, nor the bargain ^^^^^• and sale by the commissioners, will operate as a revo- cation ; the Bankrupt law taking the property out of the bankrupt only, for the purpose of paying his creditors ; and from the moment that the debts are paid, the as- signees become mere trustees for the bankrupt — and can be called upon to convey to him. (5) (l) Bromley v. Goodcre, 1 Atk. by Sir William Evans in the 4th 75. Ex parte Rooke, ibid. 244. Ex vol. of his edition of the Statutes, parte Chamjnon, 3]ivo. 4d6. Ex pages. Ev. B. L. 22. note 10. parte Hankey, ibid. 504. Ex parte (.2) Ex parte Deey, 1 Ball & B. Mills, 2 Ves. jun. 295. Ex parte 77. Coc^5, 1 Rose, 517. iVes. &B. 342. (3) Twogood w Swrnisfon, ayca. Ex parte Williams, ibid. 599. The 485.; and sec 18 Vcs. 81. justice of this recent alteration of (4) Bromley v. Goodere, 1 Atk. the rule as to the allowance of in- 81. terest, was long ago pointed out (5) Charman v. Ckarman, 1 4\cs, by Mr. Christian, vol. ii. 504., and 580. N N 3 550 OF THE pankrupt's [Ch. 13. Surplus. Where part of a bankrupt's property consisted of real . , estate, j)^^t of which was sold by the assignees during his rights of life — another •part contracted to h*e sold at the time of his the heir, j]eath — and the remainder was sold after his death ; — it was and exe- cutor, of determined in a question between his real and personal re- the bank- presentatives, as to their rights to the surplus, that the surplus, heir at law had no claim in respect of the estate which was when part ^^^^ qj. contracted to be sold, during the life of the bank- of rcm cs- tate sold, rupt ; for that jiart of the estate was to be considered as converted into personalty : but that as to such portion of the real estate as was unsold, and uncontracted for at the death of the bankrupt, — that was held to descend to the heir, subject to the charge created by the Bankrupt law, for the payment of his debts. And the Court said, that it could make no difference in principle, whether such a charge were created by the provision of the law, or by the provision of the party; that, as far as the real estate was not exhausted by the charge, it was the property of the heir: that the bankrupt law had no purpose to alter the character of surplus property between the real and personal representatives of a bankrupt : and that, as to the charge for payment of debts created by bankruptcy upon the real estate of a deceased bankrupt, his personal estate is to be considered as first applicable ; and that the heir M'as entitled in the first place to be indemnified out of the surplus, to the extent in which it should ultimately appear, that the real estate was not required for the pay- ment of debts. (1) When two "Where a man is a partner in two separate firms, each firms, in ^£ vvhich becomes bankrupt, the surplus of his separate bankrupt estate must be applied in discharging the joint debts of the IS a. part- ^^^ firms, in proportion to the whole amount of the debts come proved against each firm (2) respectively. And, generally, bankrupt, jj^ ^ases of partnership) the bankrupt's right to the surplus (1) J9an/« V. 5co OF THE BANKRUPT. [Ch.13. Actions. What is not an estoppel. missioners ticked off such items in it as they allowed, and struck a balance of 169/.; — this was held to be evidence (to be left to the jury) of an implied admission by the bank- rupt, from his conduct and demeanor before the com- missioners, that such a balance was due. (1) So a bankrupt will be restrained, after laying by for a long period — or after having already repeatedly questioned the commission, from further disputing it at law. (2) Therefore, where, after a petition presented by a bankrupt for a supersedeas, he abandoned the petition, and joined in a conveyance of part of his property, and solicited and procured also the requisite signatures to his certificate, — he was restrained from proceeding in an action (against the messenger) to impeach the commission. (3) And where, at the in- stigation of the petitioning creditor and another creditor, a bankrupt brought an ejectment to recover the possession of premises sold under a commission (under which he had acquiesced for seven years), — an injunction was granted, on the petition of the assignees, to restrain him from proceeding in it. (4) But the mere surrender by the bankrupt to the commission is not an estoppel to his right to dispute it at law ; even though he presents a petition to enlarge the time for his surrender, in which he states that he has been didy declared a bankrupt. (5) Neither is a bankrupt estopped from controverting the validity of the commission in an action against a stranger, notwithstanding he has even obtained his certificate under it ; for in order to create an estoppel, there must be reci- procity between the parties; and a stranger can neither take advantage of, nor be bound by, an estoppel. (6) And even in such an action against his assignees, an injunction will not be granted by the Court of Chancery to restrain him from proceeding in it, merely on the ground, that he (1) Jarrett v. Leonard, 2 M. & S. 265. (2) 18 Ves. 393. (5) Ex parte Cutten, 1 G. & J. (4) Ex parte Grant, Buck, 90. (5) Mercer v. Wise, 3 Esp. 216. (6) Butts V. Bilkc, 4 Pri. 240. 7 East, 352 b. 31' Sect. G.] OF THE BANKRUPT. $S3 has obtained his certificate, — without alleging also, that the Actions. commission was valid, and that the action was brought with a view only to harass the assignees. (1) A bankrupt, however, will not be permitted to try the Bankrupt validity of his commission, by actions against the debtors "^L'!^7 to his estate. Therefore, where a bankrupt, who insisted sue his that his commission was invalid, gave one of his debtors f^*^",'"*' to notice not to pay his assignees, and brought an action for the validity of recovery of the debt — and the assignees also threatened ^.^'"■^is- sion to do the same, — a bill of interpleader by the debtor was entertained ; and upon the usual affidavit, and payment of money into Court, an injunction was granted. (2) As a bankrupt, though uncertificated, can acquire and May sue hold property against every one except his assignees, so amuired he can maintain an action of assumpsit against a third property, person for his own work and labour performed since the ^ ^^j \ . , '^ signees do issuing of the commission, and for materials furnished not inter- necessary to his labour. (3) And where no claim is made P°^^' by the assignees, he may also maintain trover for goods Acquired after his bankruptcy (4') ; and even assicmjmt for money lent and advanced by him after his bankruptcy (5) ; as well as trespass quare clausum f regit, for a trespass (6) committed before his bankruptcy ; for the defendant in any of these actions cannot object to the bankrupt's claim, un- less his assignees interpose — and the bankrupt may, in fact, sue as a trustee for the assignees. (7) But an uncertificated bankrupt cannot bring trespass But can- against a defendant for seizing his furniture, who acted by "°*^ ^"^ ^ mdJiority of the assignees, notwithstanding the assignees \na by au- (1) Kirkpatrickv.Dennet, 1 Sim. (4) Fotvlcr v. Dotvn, 1 Bos.&P. & S. 408, 1 G. & J. 300. 44. Larochc v. Wakeman, Peake, (2) Lowndes v. Comford, 1 Rose, 140. Webb v. Ward, 7 T. R. 296. 180, 18 Ves. 299. Harloiuv. Croiv- Webb v. Fox, 7 T, R, 591. let/, in Exchequer, Buck, 273. con- (5) Eva7is v. Brown, 1 Esp. 170, tra. (6) Clarke v. Calvert, 5 Moore, (5) Chippendale v. Tomlinson, 96, 1 C. B. L, 4.>1. Silk V, Osborne, (7) Cumming\. Roebuck, 1 Holt, 2 Esp. 140. 172. Clarke v. Calvert, supra. 556 OF THE BANKRUPT. [Ch. 13. Actions. thority of assignees. Or one who ob- tains a sur- render of their in- terest. When bankrupt may sue assignees for work and labour. When he may sue a creditor who re- had agreed with a friend of the bankrupt, for a valuable consideration, to leave such furniture in the bankrupt's possession ; — for an uncertificated bankrupt is not entitled to retain any property against his assignees. (1) So, where an uncertificated bankrupt sued a creditor (who had be- come such since his bankruptcy) for seizing his effects sub- sequently acquired — and the creditor, after a rule to plead, obtained a surrender of the interest of the assignees in the effects seized; — it was held, that this was a rati- fication of the seizure by the assignees, and that the bank- rupt could not recover. (2) And where a bankrupt before obtaining his certificate, brought an action upon a pro- missory note, and for money lent, — a plea that the plaintiff was an uncertificated bankrupt, and that his assignees " required the defendant to pay to them" the money claimed by the plaintiff, was held good; — and a replication, that the causes of action accrued after the plaintiff became bankrupt, and that the defendant treated with the plaintiff as a person capable of receiving credit, and that the com- missioners had made no new assignment of the said note and money, was held bad — upon the established prin- ciple, that the general assignment of the commissioners passes to the assignees all his after acquired, as well as present, property and debts. (3) Where the assignees employ the bankrupt in carrying on his trade or manufacture for the benefit of the estate,. and pay him money from time to time, it is evidence of such a contract between him and the assignees, as will enable him to recover from them a reasonable compens- ation for his work and labour. (4) In a case where the creditors of a bankrupt entered into a deed of composition to receive 8s. in the pound, in full discharge of their debts, and agreed to release every thing (1) Nias V. Adamson, 3 B. & A. (3) Kitchen v. Bartsch, 7 East, 225. 53. (2) Hull V. Picker sgUl, iB.&B. (4) Coles v. Barrow, 4 Taunt. 282. 3 Moore, 612. 754. Sect. 6.] OF THE BANKRUPT. 557 beyond that to the bankrupt, and join in a petition to the Actions. Chancellor to supersede the commission — and one of the ~ T,, ^ _ _ ceivcs lull creditors, having two distinct debts due from the bankrupt value on a (for one of which he held bills for the full amount), re- bill, after .... . , receiving a ceived his dividend of Ss. in the pound on both debts — composi- and then recovered the full value of some of the bills ; — it •^'°"- was held that the bankrupt, under these circumstances, was entitled to recover the money so obtained on the bills, in an action for money had and received. ( 1 ) As a debt due to a bankrupt, as trustee for another, does Bankrupt not pass under the commissioners' assignment, — it has assicrninrr a been held, that a bankrupt, who previous to his bank- Jebt, may ruptcy assigned a debt then owing to him, (and who be- trustee, came, therefore, in the nature of a trustee for the person to whom the debt was assigned) might sue the debtor in his own name for the benefit of the assignee of the debt. (2) A bankrupt is personally liable for the costs of an action When commenced by him, and proceeded in by the assignees jj^i^jg ^^^ in his name, notwithstanding he has obtained his cer- costs. tificate. And, though the Court of Chancery will protect him from such costs, when he acts fairly, — yet where he induces the assignees to pursue the action by mis- representation, he will not be relieved. (3) Where he When re- sues as trustee for his assignees, and for their benefit, and qy'ired to not for the fruits of his own personal labour, he has been ciirity. required to give security for costs, (-l) And the Court of Common Pleas, upon one occasion of this kind, refused to grant a new trial, unless the assignees would abide by the verdict, and become responsible for the costs. (5) So, When where an uncertificated bankrupt (after being nonsuited in j^'^s'^^jif an action of trespass for false imprisonment in the Court be stayed of King's Bench, on the ground of not being prepared J,^;,^^^*^ with evidence to prove the validity of a former commission) paid. (1) Stock V. Mawson, 1 B. & P. (s) Ex parte Seaman, 1 G. & J. 286. 260. (2) Winch V. Kceley, 1 T. R. 6 1 9. (4) Webb v. Ward, 7 T. R. 296. (5) Noble V. Adams, 7 Taunt. 89. 558 OF THE BANKRUPT. [Ch.l3. Actions. When action brought against bankrupt for debt proved. When bankrupt indicted, where venue may be laid. As to evi- dence. What is not a va- riance. brought a fresh action in the Common Pleas, — the last mentioned Court ordered the proceedings to be stayed, until he paid the costs of the former action ; as he ought to have been prepared with such evidence on the first trial." (1) But in another case, where a joint action was brought by two persons, one of whom was a bankrupt, and the other a prisoner in Newgate, the same Court re- fused to require such security; though the judgment of the Court, in this case, seems to proceed upon the consider- ation of the circumstance of the imprisonment of one of the plaintiffs (2), and not of the bankrnpfcT/ of the other. Where an action is brought against a bankrupt for the same debt, which a creditor has proved under the commis- sion, the proof cannot be pleaded in bar — but the bankrupt may either apply to the Lord Chancellor to expunge the debt, or move the Court in which the action is brought to stay proceedings. (3) In assumpsit against two defend- ants, where one pleaded tioii assinnpsit and bankruptcy, and the plantifF entered a nolle prosequi as to him, as to the several matters pleaded by him — and the other defendant pleaded non assumpsit; — the latter was held not discharged by the Jiolle prosequi. (4) On an indictment against a bankrupt for concealing his effects, the venue may be laid in any county, where the prosecutor can prove an actual concealment. (5) And, on the trial of such an indictment, a book delivered up at his last examination with other papers, on his signing a de- claration that fhei/ contained a full and true disclosure and discovery of all his estate and effects, was held necessary to be produced as part of the prosecutor's case. (6) Where, upon an indictment of a bankrupt for perjury (alleged to have been committed in an affidavit sworn be- (1) Craivley v- Impey, 8 Taunt. 407. 2 Moore, 460. (2) Anon. 2 Taunt. 61. (5) Harley v. Grecmvood, 5 B. & A. 95. J and see ante, "Elec- tion," 189. (4) Moravia v. Hunter, 2 M. & S. 444. Noke V. Ingham, 1 Wils. 89. (3) Rex V. Evans, 1 Russ. & R. 70. (6) Ibid. Sect. 7.] OF THE BANKRUPT. 559 fore a commissioner of the Court of Chancery), it was Actions. alleged that the detendant preferred his petition to the Lord Chancellor, setting forth various matters, and stating that " at the several meetings before the commission" the defendant declared openly to a certain effect — and upon the trial it appeared, that the statement of the petition was, that " at the several meetings before the commissiojicrs" the defendant declared to that effect ; — it was held, that this was no variance, inasmuch as it was sufficient to set out in the indictment the petition in substance and effect; and that the word " commission" also was one of equivocal meaning, being used to denote, either the tiiist cw authority exercised, or the ^person by whom it is exercised; and that on this occasion it sufficiently appeared, from the context of the petition as set forth in the indictment, that it was used only in the latter sense. (1) Section VII. nees. Of Suits i?i Equity hy and against an uncertijicated Bankrupt. Though an uncertificated bankrupt cannot, generally Where speaking, bring a bill in equity (2) ; yet where he has a bankrupt clear interest and the assignees refuse to sue, the Lord in name of Chancellor will, upon petition, compel them (upon an offer his assig- of indemnity) to let him use their names (3) ; for his dis- ability in general cases to sue is not to be acted upon, to the effect of gross injustice. (4) (1) Rex V. Dudvian, 4B. & C. ferently in Lord Redesdale's Trea- 850. tise on Pleading, where it is laid (2) Hammond v. Attwood, 3 Mad. down, that a bankrupt may sue in 1 58. ; and see Bowser v. Hughes, equity, if he disputes the validity 1 Anst. 101. of the commission, provided he (3) Sprasg V. Binkes, 5 Ves. 587. brings the assignees before the (4) Per Lord Eidon, Benfield v. Court by supplemental bill. Mit- Solomons, 9 Ves. 77. The practice, ford on Pleading, 52. however, is stated somewhat dif- 560 OF THE BANKRUPT. [Ch. 13. Suits in equity. Where demurrer allowed, for want of neces- sary alle- gations. Where, on the ground of the proper proceeding being by petition. Where a bill re- tained. Where bankrupt's suit en- tertained, notwith- standins But, where a bankrupt filed a bill against a mortgagee of estates in England and Berbice, for an account and payment of the balance to his assignees — and he made his assignees defendants, charging collusion between them and the other defendants, but did not aver that there would be a surplus, nor charge a direct application to his assignees to sue ; — a demurrer was allowed for want of such allegations. (1) And, where a bill was filed by a bankrupt (who had taken the benefit of an insolvent debtor's act) and his assignees under that act, against the assignees under his commission and others, stating improper con- duct and collusion, and that all or most of the creditors under the commission were satisfied, and praying an ac- count, — a demurrer in this case was also allowed, on the ground that the proper mode of proceeding was by peti- tion in bankruptcy. (2) So, where a bankrupt filed a bill against a debtor to his estate, asserting the invalidity of the commission, and charging collusion between his as- signees and the debtor — a demurrer was likewise allowed, the proper course being, either to try in an action the validity of the commission, or to petition to remove the assignees. (3) Where a bill, however, was filed by an uncertificated bankrupt in the Exchequer — though the assignees were not before the Court — yet it being admitted, that the as- signees had already failed in an ejectment brought by them to recover the premises in question, by not being able to prove the petitioning creditor's death, — the Court re~ tained the bill, until proper parties should be added (if necessary), the plaintiff paying the costs of the day. (4) And where a bankrupt filed a bill against a creditor (who was prosecuting an action at law against him) without making his assignees parties to the suit, and stated in his (1) Benfield \. Solomons, 9 Ves. (5) Haynviondv. Atttvood, sMad. 77. 158. (2) Saxton V. Davis, 1 Rose, 79. (4) Gvvett v. Armitage, 2 Anstr. 18 Ves. 72. 412. Sect, v.] OF THE BANKRUPT. 561 bill, that if the accounts were taken between him and the Suits in creditors, a balance would be found due to him ; and the ^'^ "' ^' bill also prayed a discovery as well as an account, and pica of payment of the balance with the usual submission, and "''"f^" ... . ruptcy. also an injunction and general relief; — a plea ofbanki'uptcy was overruled by the Vice-Chancellor — though bethought the bill went too far, to pray that the balance of the ac- count might be paid to the plaintifF(l); and this decision was afterwards affirmed upon appeal. (2) A bankrupt will be permitted to prosecute a petition, when impeaching the debt on which the commission issued, in bankrupt forma jpauperis (provided a proper case is shown), upon a t^'Ji^jf ;' certificate of counsel, that the petitioner had just cause to forma be relieved, and an affidavit that he was not worth 5/. (3) V^n^er%s. Upon the same principle, also, as that which incapaci- Bankrupt tates a bankrupt from being a 'plaintiff in a suit, he is in i» general general protected from being sued in equity as a defendant. ^^^^ \^ Thus, where a bankrupt had mortgaged a copyhold estate, equity. but no bargain and sale was made to his assignees, and the mortgagee filed a bill against the bankrupt and liis as- signees to redeem, — a demurrer by the bankrupt was al- lowed, as he was not a necessary party to the bill. (4) So, the bankrupt cannot be joined as a defendant, in a suit against his assignees for the purpose o^ relief .[5) But Except it seems, if any discover^! is sought of his acts before he !'^„ ^ became bankrupt, he may be compelled to answer to that a dis- part of the bill, for the sake of discovery, and to assist the ^^overy. plaintiff in obtaining proof; though, at the same time, his answer cannot be read against his assignees. (6) Therefore, where a bill was filed against a bankrupt and his assignees, (1) Lowndes v. Taylor, 2 Rose, (5) Griffin v. Archer, 2Anst.478. 365. 1 Mad. 425. Whitworth v. Davis, 1 V.&B. 545.; (2) 2 Rose, 432. and see Bailey v. Vincent, 5 Mad. (5) Ex parte Northam, 2 Ves. & 48. 18 Ves. 72. B. 124, (6) Mitford on Pleading, 142.; (4) Lloyd V. Lander, 5 Mad. and see Glassford v. Jeffery, cit. 282. 1 Ves. & B. 549. o o 569 OF THE BANKUUPT. [Ch. 13. Suits in charging a fraudulent bankruptcy, for the purpose of de- * jMj£^ feating the plaintiff's execution, as well as other circum- stances of fraud, and praying a discovery and injunction, — a demurrer by the bankrupt was overruled. (1) (1) King V. Martin, 2 Ves. jun. 641.; and see post, Chap. 18. s. I. 'Xy^ Yi a 565 CHAP. XIV. OF THE CERTIFICATE. Sect. 1 . Of the Signature of the Creditors. 2. Of the Signature of the Commissioners. 3. Of the Allowance hy the Lord Chancellor ; and herein of opposi7ig the Allowance, and recalling the Certificate after Allowance. 4. Of the Practice on Petitions to stay the Certificate. 5. When the Certificate is void. 6. Effect of the Certificate. 7. Of pleading the Certificate ; and herein of the Evidence to support it, or defeat it. 8. Of discharging a certificated Bankrupt. 9. Of the Bankrupt's Liability on a new Promise. Section I. Of the Signature of the Creditors. By section 122. of the new statute, it is directed that the certificate ( 1 ) shall be signed hy four fifths {2) in number and value of the creditors, who have proved debts to the (l) The 4 & 5 Ann. c. 17. s. 19. (2) This is the same proportion was the first statute that gave to as that specified in the 5 G. 2. the bankrupt the benefit of a cer- c. 30. s. 10. which was altered by tificate of conformity; but the the 49 G. 5. c. 121. s. 18. to the power of granting it was vested in proportion of three-fifths ; an al- the commissioners alone ; the teration, which, without any quali- 5 Ann. c. 22. afterwards required fication as to the period of applying the consent of the creditors. The for the certificate, was productive SG. 1. c. 24. s. 16. incorporated in its ciFects of much more evil both these requisites, which were than of benefit, increasing both the subsequentlyincludedin the .5G.2. number of fraudulent bankrupts c. 30. s. 10. and defrauded creditors. o o 2 564 OF THE CERTIFICATE. [Ch. 14. Signature by cre- ditors. Where creditor may sign by power of attor- ney. Creditors required to add the date of their sig- natures. amount of 20/. or upwards. But after six calendar months from the last examination of the bankrupt, it may then be signed either by thrcc-Jifths in number and value of such creditors, or by nine-fenths (1) in nwnber only. If there happens to be a fraction in calculating the number of creditors, whose signatures are requisite, it seems that an additional creditor must sign in respect of that fraction. Thus, if seventeen creditors have proved ; — as three-fifths of seventeen are equal to ten and one-fifth, and as ten would be less than three-fifths, though eleven is something more, yet eleven must sign; and so, in like manner, of every other number not exactly divisible. (2) If a creditor lives remote, or abroad, he may authorize any other person by letter of attorney to sign the certifi- cate on his behalf; but the authority of the creditor in the latter case must be attested by a notary public, British minister, or consul ; and every such authority and attest- ation (S) must be laid before the Lord Chancellor, previous to the allowance of the certificate. By a general order of Lord Eldon (4), the creditors are directed, at the time of signing the certificate to write opposite their respective names the day of the month and year on which they sign; and in all affidavits of their signatures, such day must be expressly stated. This order, however, is not so strict as not to be occasionally dispensed with, in a case of inadvertence satisfactorily explained to the Lord Chancellor. Thus, where a certi- ficate was opposed, on the ground that some of the cre- ditors (who had signed it) had not subscribed opposite (l) A new provision was intro- duced in the very short lived act of the 5 G. 4. c. 98. s. 120. by which, where there was only one opposing creditor, whose debt was of such an amount as to stop the certificate, the Lord Chancellor might, upon petition, allow it not- withstanding such opposition. This enactment, however, was disap- proved of by Lord Eldon, when it came into practical operation; in consequence of which, it seems to be purposely omitted in the pro- visions of the present statute. (2) 1 Christ. B. L. .358. (5) The letter of attorney, and the attestation, should be left at the bankrupt ofiice. (4) 8th August, 1809. Sect. 1.] OF THE CERTIFICATE. 565 to their signatures the day of the month and year — which Signature was done, in fact, by the witness who attested the signa- J-^^^^' tures — and it appeared that the omission proceeded through the inadvertence of the witness, who had afterwards (but before the commissioners signed) inserted such dates, which were known to him by means of daily memorandums ; — Lord Eldon thought, that this afforded ground for dispens- ing with the strict requisition of the order. (1) The bankrupt is entitled to the inspection of the pro- Bankrupt ceedings under the commission, for the purpose of ascer- i^spg^t taining the debts proved, with a view to solicit his creditors proceed- to sign his certificate. (2) "^^^" The certificate should not be signed by any creditor, Certificate previous to the bankrupt passing his last examination ; for f"°^'*^ "^*^ ^ . be signed that would be contrary to the meaning of the act, which before last says, the bankrupt is not to be discharged from his debts, ^''.^'"^"" •^ / ^ *= ^ ' ation. until he has " in all things conformed himself to the laws in force concerning bankrupts ;" — and before he passes his last examination (which is one of the principal duties re- quired of him) it would be impossible for the commissioners, notwithstanding the consent of the creditors, to certify that the bankrupt had so conformed himself. If, therefore, the certificate is signed by any creditor before the last examin- ation, it will be sent back by the Lord Chancellor, and must be signed afresh both by such creditor and the commissioners. (3) There is no way of compelling creditors to sign the Creditors certificate ; who have the risht of exercising an absolute "°!; *:°"" • , 1 • , V 1 • 1 ,71 , pellable to discretion on the subject (4*) — being under no legal, though sign cer- they may sometimes be under a moral,, obligation in this tificate. respect. (5) Indeed, they are often (for their own interests) too ready to afford the bankrupt that relief, which the law has, in this instance, left entirely in their hands to grant, (1) Expartel/flZHg, 1 G.&J.348. (4) Per LordM.JRobson v. Calze, (2) Ex parte Morgan, 1 G. & J. Doug. 229. 404. (5) 18 Ves.j42.; and see 11 Ves. (3) Ex parte Srovm, 1 Rose, 424. 17Ves. 118. iVes. &Ii. 47. 176. Ex parte King, 11 Ves. 424. i Rose, 1S9. 5 V. ^ B. 103. VOL. I. * o o 3 >66 QF THK CERTIFICATE. [Ch.,^ Signature by cre- ditors. Creditor cannot sign, when not en- titled to a dividend. One part- ner may sign; but not one trus- m>'' '-' Receiver cannot sign. As to an executor. or refuse. And (as Lord Eldon well observed in Ex parte Ki?tg{l)) there can be no stronger proof of the good-nature and humanity of the British character, than the readiness with which creditors sign a bankrupt's certificate, before they know even vi^hether he has made a full disclosure of his effects. The certificate must not be signed by a creditor not entitled to a dividend under the commission ; such as (for instance) a creditor upon a bond of indemnity who has not been damnified ; and, though such a creditor may have been improperly admitted to prove, yet he has no right deducible from such proof to sign the certificate. (2) Where a creditor after proving has assigned his debt, the late Vice-? Chancellor thought that he could not sign the certificate without the authority of the assignee. (3) But Lord Eldon afterwards ruled the contrary, holding that the assignee, whose interest does not accrue till subsequent to the com- mission, has no control whatever over the certificate. (4) One partner may sign a certificate for himself and his copartners (5), even though the partnership has (since the proof of the debt under the connnission) been dissolved. (6) But one of several trustees is not competent to sign the certificate for himself and his co-trustees. (7) A receiver appointed to prove and receive dividends, it seems, cannot sign the certificate; though he may petition to stay it. (8) The executor of a creditor (who has died since the proof of his debt) may sign the certificate. But if the executor has also proved a debt in his own right, he cannot sign the certificate twice ; for, both being debts to him individually in point of law, he can only be regarded as a single creditor. (9) " (i) 11 Ves. 424. (2) Ex parte Buchier, 1 C.B.L. 4G2, (5) Ex parte Taylor, 1 G. & J. 599. (4) Ex parte Herbert, 2 G.& J.66'. (5) Ex parte Hodgkinson, 19 Ves. 293. Ex parte ilf ;/(://£■//, H Ves. 597. (6) Ex parte Hall, 1 Rose, 2. 17 Ves. 62. (7) Ex parte Rigby, 2 Rose, 224. (8) Per Lord Eldon, ex parte SJinw, iG. &J. 151. Ex parte Evans, 1 Mont. B. L. 252. (9) Ex parte Saumcrez, 1 Atk. 84, Ex parte Straccy, 1 Rose, 66. Sect. 1.3 OF THE CERTIFICATE. 567 Executors should not sign a bankrupt's certificate, with- Signature out previously consulting the cestui que trusts ,- and if the £(o^g' latter are infants, and therefore not capable of giving con- sent, there seems to be some hazard (when no dividend is ^^''^^u^^"* paid under the commission) in the executor, of his own sign with- authority, taking upon himself to absolve the bankrupt from °"' ^°"" all further (1) demands. The signature of one executor cestui que will (as in the case of partners) bind his co-executor. (2) trusts. If the bankrupt himself becomes the executor of a creditor, Where who was entitled to sign the certificate, it has been said, that "^"'^''"Pt o _ ' executor he himself might in that capacity sign his own certificate. (3) of a credi- But, if the creditor dies before proving his debt, it is now *^'"' settled, that the bankrupt executor cannot prove under his own commission, 'without an order of the Lord Chancellor ; and, consequently, cannot (without such order) sign his own certificate. (4-) The proof of the petitioning creditor at the opening of As to the commission does not entitle him to sign the certificate, creditoi'."^ without proving also at a public meeting. (5) If any of the creditors are induced by money, given Money either l^y the bankrupt himself, or by a third person, to g^^^" '^ a sign his certificate, the money may be recovered back, and sign ren- the certificate will be void on the ground of fraud "enerally — ^^'"* certi- though there is no express provision to tnis eiiect in the statute. (6) For, since many creditors are prevailed on to sign, because others have done so before, whom they sup- pose to be upon a par with themselves — if the first credi- tors, therefore, are in reality paid for signing, it would be a cheat upon those who have received nothing, and who sign the certificate trusting to the integrity of the previous (1) Powell V. Evans, 5 Ves. 859. (5) Ex parte Davis, 2 Cox, 398. (2) Ibid. (6) It is somewhat singular, that (3) Coz6i/)er's case, Green, 260. the 125th section (which will be (4) Ex parte Shaw, 1 G. & J. presently noticed) should apply 151. Ex parte Marshall, 1 G. & only to contracts, or securities, for J. 163. n. the payment of money, and not to the actual payment of money. O o 4- OF THE CERTIFICATE. [Ch. 14. Signature hy cre- ditors. When money given witliout the know- ledge of the bank- rupt. signatures. And, indeed, whether such creditors sign yfrs/, or last, it is apprehended, that such a transaction would be contrary to the whole spirit of the bankrupt law; which is in- tended to prevent any one creditor from gaining an unfair ad- vantage over another. ( 1 ) Even if the money is to be divided among all the creditors (2), or is paid by a third person tra'/A- out the privity o^ the. bankrupt(3), the certificate will be equally void; since great corruption, and oppression, might arise from a combination of all the creditors to exact conditions for their signatures. (4) When any near relative, for instance, is in- duced through compassion to pay the money for the bank- rupt, this is an unworthy advantage taken by the creditor to extort money, as a price for doing what he ought to do voluntarily, if the bankrupt has dealt fairly with his credi- tors. On the other hand, if tlie bankrupt has been guilty of any fraud or concealment, the creditor ought not to sign for any consideration whatever. And, although the other creditors (who have signed) would be sufficient in number and value to give the certificate validity, without reckoning the one who takes money for his signature — yet the certifi- cate will be equally bad ; for his example may have induced the others to sign. (5) It may, on the first view, seem a hard case upon the bank- rupt — when a third person, without the least knowledge on his part, gives money lo obtain a creditor's signature — that the certificate should for this reason alone be held void. (6) The principle, on which this doctrine is founded, is, that although the bankrupt shall not be punished for the fraud (1) Phillips V. Dicas, 15 East, 248. Robson v. Calze, 1 Doug. 228. Smith V. Bromley, ibid. 696. (2) Jones v. Barkley, 2 Doug. 695. note (3). (3) Holland v. Palmer, 1 Bos. & P. 95. Ex parte Butt, loVes.359. (4) Per Lord M. 2 Doug. 698. (5) 15 East, 248. Mr. Montagu, and Mr. Eden, both justly remark, that it may be inferred from this reasoning, that if there were suffi- cient creditors without the cre- ditor who had been so induced to sign, and it appeared that the sig- nature of such creditor was sub- sequent to that of the others, so that they had not been induced to sign by his exa^nple, the certificate in that case would not be actually void. 1 Mont. Dig. 536. Eden's B.L. 385. (6) 1 Doug. 228. loVes.359. Sect. 1.] OF THE CERTIFICATE. 669 of a third person, yet he shall not avail himself of it. (1) Signature But, though the bankrupt is prevented from deriving any J-^^^g' benefit from a certificate, to which the signature of a credi- • tor has been thus obtained, yet he will not be precluded from procuring another certificate sufficiently signed, without the signature of the creditor who had received the money ; and the Lord Chancellor will, in such a case (upon the ap- plication and affidavit of the bankrupt) assist him in so doing, by ordering the first certificate to be cancelled, that he may be enabled to procure a fresh one. (2) And Lord Mansfield said in a case of this kind — if there were creditors enough who would sign the certificate, and an enemy of the bankrupt were to give money to one of the creditors to induce him to sign, for the mere purpose of preventing the bankrupt from receiving any benefit from the certificate, — that this would be a fraud on the bankrupt, and would not hurt him. If a creditor is even induced by money to withdf'a'w a Where a petition presented against the certificate — or after such a ^^^^^^^ . . . . . _ tor money petition sells his debt, with an agreement to withdraw his withdraws petition, — this will also avoid the certificate ; and in order to ^ petition. prevent such practices, (which, it seems, were at one time not unfrequent) petitions against a certificate are now not permitted to be withdrawn, as a matter of course. (3) But if creditors are induced to sign the certificate, for the Where sole purpose of rendering the bankrupt competent as a gj^j, witness in an action brought by the assignees, the certifi- merely to cate, in this case, will not be considered illegal ; for this is ^ankruDt ^ merely a mode of getting over a technical objection to evi- competent dence, by procuring a release from the bankrupt — and thus removing that interest, which would otherwise incapacitate him as a witness. (4) (1) Ibid. (3) Ex parte Gibson, iC. B.L. (2) Ex parte Harrison, 4 Mont. 465. 6 Ves. 5. B. L. App. 36. Per Eyre C. J. Hoi- (4) &% v. Crew, 2 Anst. 504. land V. Palmer, 1 Bos. & P. 96. as a wit- ness. 570 OF THE CERTIFICA-ra. [61). 14. Signature by cre- ditors. Creditor may be sued to re- cover back money paid to him for signing. Contract or security to induce a creditor to sign, void. Privity of the bank- rupt im- material. As it is illegal for a creditor to tdke^ so it is equally illegal for him to retain^ money paid to him by a bankrupt's friend for signing the certificate. Therefore, an action will lie to recover back money paid to a creditor for such a purpose. For, in this case, the parties are not considered in pari delicto, as they are in a case where the act is in itself immoral ; but the creditor here is held to be the only criminal, who, by taking an unfair advantage of the situation of the bank- rupt, and working on the compassion of his friend, is in fact guilty of no less a crime than that of extortion. (1) It has been ruled at iSlisi PriuSf that if a certificate be impeached, on the ground that it was signed by fictitious creditors, the persons who swore to the fictitious debts must, if possible, be produced to prove the fraud; as their testimony is open to much observation. (2) By section 125. (3) of the new statute, any contract or security made or given by a bankrupt or other person, unto or in trust for any creditor, or for securing the pay- ment of any money due by such bankrupt at his bank- ruptcy, as a consideration, or with intent to persuade such creditor to consent to or sign (4) such certificate, is declared to be void ; and the money thereby secured or agreed to be paid cannot be recovered : and the party sued on such contract or security may plead the general issue, and give the act of parliament and special matter in evidence. The same principle (in regard to the priviti/ of the bank- rupt,) applies to a contract or security to pay money, as well as to money actually paid, it being perfectly immaterial, whe- (1) Smith V. Bromley, 2 Doug. 696. n. Cockshott v. Bennett, 2 T. R. 766. ; and see Nerot v. Wallace, 3 T. R. 1 7. Coles V. Lovell, 1 Esp. 282. (2) Edmonstone v. Webb, 5 Esp. 264. qu. tanien, for they are not compellable to confess themselves guilty of perjury. See 1 Phill. on Ev. 286. (5) This is taken from 5 Ann. C. 22. 5G. 2. c. 30. S. 10. 24 G. 2. C. 57. s. 10. (4) It is rather extraordinary that this section does not include in its prohibitions the acttial payment of money, as well as any contract or security for money. Sect. 1.] or Trf-E CERTIFICATE. 571 ther the one or the other is paid or given with, or without, Signature his knowledge — and whether, also, the agreement is to pay y '^''^' money to individual creditors, or to all the creditors. (1) In like manner, where the security is given, in consideration of the creditor withdramng a petition preferred by him against the bankrupt's certificate, the same principle, which applies when money is paid, will render the certificate equally bad. (2) With respect to the security itself; — it has been decided Note for a in a case, where the bankrupt gave a promissory note, even f^^'j^ul^" for a pre-existing debt, to a creditor, who afterwards signed void, the bankrupt's certificate — though he did not prove under the commission — that the note was altogether invalid ; for that independently of a security being void, which is given to a creditor to induce him to sign the certificate, it was against public policy, that any thing leading to that residt should be allowed. (3) The principle of these decisions is also extended to the As to the case of an insolvent, who assigns over his effects for the case of an benefit of his creditors. (4) But a further security given or a deed by a third person to a creditor for the same amount only, of compo as he would be entitled to in proportion with the other creditors, has been held (in the case of a deed of compost" tion) not within the principle ; as the creditor was not to receive more than the others. (5) This point, however, it is apprehended, would not be so decided in the case of a bankrupt's certificate, — the statute expressly declaring, that ani/ security 'vohateva' for the payment of monej', with intent to persuade the creditors to consent to, or sign the certificate, shall be void. (6) (1) Jones V. Barkley, 2 Doug. Lord Loughborough's judgment, 695. Holland v. Palmer, 1 Bos.tV 1 H. B. 655. P. 95. Ex parte J?« 1 i -4. • ^y Chart- that IS a strong reason tor staynig the certihcate, but it is p^//o^_ not a conclusive reason. In this respect, it seems that Lord Eldon and Lord Thurlovv have differed from Lord di^Jden^** Loughborough and Lord Erskine in their judgments; the made. two hitter having, it is said, been of opinion, that it 'was a sufficient reason for staying the certificate. (1) A certificate has been refused to be stayed upon the what not petition of creditors in Scotland, stating that the bankrupt " S""'^ * •111 cause. was properly the object of a sequestration, and that the ^^ ,. question of sequestration was then depending in the Court in Scot- of Session. (2) So if the debt of a creditor, who has •'^"'J- proved under the commission, and signed the certificate, is . ^l^ ^r" not impeached, an objection to the proof in point of time is time of not sufficient to stay the allowance. (3) And where ere- P''oo'- ditors, who had been admitted to claim debts under a ^\^^^ commission, opposed the allowance of the certificate, and posed to the bankrupt swore positively, that the balance, on taking ^f ^ank- the account, would be in his favour — and the claimants did nipt, not venture to swear that there would be any balance in ihciy- favour ; — the Lord Chancellor refused to stay the allowance ; for he said, that barely coming before the com- missioners, and saying there is such a debt, is not suf- ficient without an affidavit, when opposed to the posi- tive oath of the bankrupt. (4) Neither will a certificate be Petition to stayed, because there is a petition pending to supersede the supersede, commission ; for a certificate must stand upon its own merits. (5) Where new creditors prove their debts, after the certi- New cre- ficate has been signed by the commissioners, it will not be stayed on this account — unless the new creditors themselves (1) Ex. parte King, 11 Ves. 426. (.3) Ex parte Stracey, 1 Rose, 66. Ex parte Cunningham, 2 Mont. Dig. (4) Ex. parte Johnson, 1 Atk. 8 1 . 152. Ex parte Williamson, 2 Ves. 249. (2) Ex parte Cockayne, 2Rosc, (5) Ex parte ^o«ao;-, 2 Rose, 61. 233. V V 3 ditors proving. 582 OF THE CERTIFICATE. [Ch. 14. Allowance by Chan- cellor. Trial pending. Omission of com- missionerp. Bankrupt uncer- tificated under former commis- sion. State of bankrupt's accounts. Retaining money as assignee. petition for that purpose, and make out a case of the certi- ficate having been fraudulently obtained. (!) A certificate, also, will not be stayed in order to give a creditor (who insists on a right to stop in trajisiiu, and is waiting the result of a trial at law) an opportunity of proving under the commission, in case he should fail in his action. (2) Neither will it be withheld, because the commissioners have mei'ely omitted to certify that the bank- rupt has been a bankrupt before, in conformity with Lord Apsley's order. (3) So when the bankrupt is uncertificated under a former commission, that is no ground for staying the certificate ; for though the second commission is abso- lutely void at laiVf yet, if circumstances required it, a court of equity would sustain that commission, and interfere to prevent the production of the first. (4) It has been held likewise to be no ground for staying a certificate, that the bankrupt's accounts are in a slovenly state — unless, indeed, he has refused his assistance to ex- plain, or elucidate, them. (5) But, when it appears that the bankrupt's statement on his examination is in itself incon- sistent — as where he deposed, that he had no written do- cuments except a book produced, which book appeared to have been compiled from other written documents — the Lord Chancellor, in such a case, wiU stay the certificate. (6) And, where the bankrupt's partner petitions that the cer- tificate may be stayed, until the partnership account is taken, and there is no want of due diligence imputable to the petitioner, we have seen (7), that that is a good cause for making the application. (8) It is no objection, however, to the allowance of the certifi- cate, that the bankrupt has retained money in his hands, as (1) Ex parte Fydall, 1 Atk. "3. (2) Ex parte Heath, 6 Ves. 613. (3) Ex parte Black, 1 Rose, 60. (4) Ex parte T/iompsun, 1 Rose, 285. (5) Ex parte Rawson, 1 Rose, 67. (6) Ex parte Bangley, 17 Ves. 117. (7) Ante, 578. (8) Ex parte Hadlcy, 1 G. & J. 193. Sect. 3.] OF THE CEUTIFICATE. 58S assignee under another commission ; for the statute pro- Allowance vides a specific remedy (1) for that particular mischief. (2) cellor"^^^ A certificate under a separate commission, lying for allowance before the Lord Chancellor, will not be stayed ^''!"!"S o . . . . a joint merely because a joint commission is issued ; but if the coimnis- certificate is fairly obtained, the Lord Chancellor will *'^"- allow it; and, in order to give it effect, will impound the separate commission in the Bankrupt office, instead of superseding it — and will direct the proceedings and proofs to be transferred to the joint commission. (3) As to those cases, where the statute provides that the As to dis- certificate shall be void (4), even though it is allowed — the ^f c^^^i!!^'' Lord Chancellor is, of course, bound absolutely to refuse ficate, the allowance, if the opposing creditor adduces sufficient Y"^"*^ '^ '^ evidence before him to bring the bankrupt within any of to be void. those cases. But when the affidavits of the parties are in direct opposition to each other. Lord Eldon has generally allowed the certificate; because by refusing it, he said, the Court withholds an opportunity to try the fact by a jury. (5) Therefore, where a petition to stay the certificate alleged, that the bankrupt had acknowledged to have lost a parti- cular sum by stock-jobbing transactions — and the bankrupt denied the loss on affidavit, though he admitted having made the acknowledgment, — the certificate was refused to be stayed ; but the petition was dismissed without costs, as the acknowledgment was a justification of the petition. (6) In a case, also, of mere suspicion^ the Court will refuse Mere sus- to stay the certificate. (7) Thus, where a petition contained picion not no other grounds of opposition, than that the party was around for informed and believed, that the bankrupt had concealed his refusing it. effects, the petition was dismissed with costs. (8) For if the (l) Sections 104,105. (5) Ex parte Kcmiet, 1 Ves. & (^) Ex parte Anderson, 1 Rose, B. 195. 1 Rose, 3.51. 93. (6) Ex parte Enderby, 5 Mad. (3) Ex parte Tobin, 1 Ves. & B. 76. 308. (7) Ex parte Hall, 1 Rose, 5, (4) Section 130. post. (8) \L\\yaiie Joseph, 1 Rose, 184. 18 Ves. 510. r I> 4 584. OF Tire CERTIFICATE. [Ch. 1 Allowance hy Chan- cellor, When is- sue di- rected. As to directing review of certificate. As to cer- tificate of bankrupt uncerti- certificate is allowed under such circumstances of conduct in the bankrupt, as make it bad in law, the allowance then be- comes altogether a nullity ; but if it be withheld by the Chancellor, the bankrupt has no other means of obtaining his certificate. (1) When, however, a creditor has proved his debt under the commission, which renders hira unable to bring an action at law against the bankrupt to try the validity of the certificate, the Lord Chancellor frequently directs an issue, in order to determine the controverted fact. Thus, where such a creditor petitioned against the allowance of the certificate, on the ground of the bankrupt having lost money at a horse-race ; and it appeared, from the bankrupt's last examination, that he had in fact sub- scribed to a stake to be run for at Bedenell races ; — the Lord Chancellor in this case directed an issue to try the bankrupt's loss, in which the opposing creditor was to be plaintiff; and he ordered the bankrupt's last examination to be read upon the trial, with a declaration of the Chancel- lor's opinion, that under the statute it amounted to proof of gaming, unless it should be answered by other evidence. (2) But, where a petition imputed conduct to the bankrupt which amounted to felony, the Lord Chancellor would not in that case direct an issue to try the fact of the bankrupt's con- formity; for the bankrupt would then be in a worse situation, than if the fact were tried by affidavits before the Chancellor, in which proceeding both parties are heard. (3) Upon a petition to stay the certificate, the Lord Chan- cellor frequently refers it back to the commissioners, that they may review it ; but where the ground of opposition is, that a full discovery has not been made, this practice has been held to be improper. (4) There is one exception in practice to the rule, that the Lord Chancellor will not allow a certificate, which (if allowed) would be clearly void in law — and that is, (as we (1) Ex parte Scott, Buck. 279. (2) Ex parte Henderson, Buck. 557. (3) Ex parte Scott, supra. (4) Ex parte Bangley, 1 7 Ves. 117. 1 Rose, 187. n. Sect. 3.] OF THE CERTIFICATE. 585 may have already observed (1),) in the case of a certificate Allowance under a second commission, where the bankrupt has not celloT\^\' got his certificate under the first. For, in this case, though -k~ the certificate (as well, indeed, as all other proceedings) ^^^^ ^ under the second commission would be void at law, yet former the Lord Chancellor will, under certain circumstances, sus- '^P'"™^- tain the second commission by preventing the production of the first, and will not refuse to allow the certificate under the second commission. (2) Where the application to stay the certificate was on the Court in- ground of concealment of property by the bankrupt, the uy^i!!!^. circumstances attending which were afterwards (by the ex- missioners' amination of the bankrupt and other persons) disclosed to !^"^^I!'^'^^ the commissioners — but the whole propei'ty had been deli- fraud im- vered up to the assignees before the signature of the P"'^'^"- certificate by the commissioners; — the Vice- Chancellor held that he ought not, in this case, to refuse the certifi- cate, as the commissioners had thought fit to sign it, with a full knowledge of the facts. (3) Where a bankrupt suffered Jictitioiis debts to be proved, Fictitious Lord Eldon (even before the passing of the new statute, "^"'^^• which includes this as one of the causes for invalidating a certificate) declared that he never would in such a case allow the certificate. (4) Keeping a Lottery Office has been held to be no ground for opposing a certificate, — nor even the obtaining goods under false pretences (5) ; for except in the particular cases specified in the act, the certificate is affected only by the bankrupt's misconduct under the bankruptcy, and not before the bankruptcy takes place. (6) (1) Ante, 582. (4) Ex parte Shirley, 2 Rose,7 J, (2) Ex parte Thompson, 1 Rose, Fret/deburgh's case, 3 Ves. & B, 285. 142. Ex parte Laffert, 1 Rose, (3) Ex parte Bryant, 1 G. & J. 330. 205. But qufere, whether such a (5) Ex parte Richardson, 1 C. B. certificate would not be considered L. 46.3. void under section 130. (6) Ex parte Gardner, 1 Ves. & B. 45. 586 or THE CERTIFICATE. [Ch. 14. Allowance hy Chan- cellor. As to re- calling cer- tificate. Not recall- able in every case , where it When anyfraudho,^ been practised by the bankrupt upon the Great Seal, either in obtaining the certificate, or in the course of proceedings under the commission — which is not discovered until after the certificate has been allowed — the Lord Chancellor will in such a case recall it, if it can be done without injury to persons, who have been engaged with the bankrupt in subsequent transactions. ( 1 ) And so also, when any conduct of the bankrupt previous to the issuing of the commission is brought to light, which would of itself render the commission void. Thus where it ap- peared, that a bankrupt had, within a year before the com- mission issued, lost more by gaming in one day, than the sum then limited by the statute. Lord Macclesfield ordered the certificate to be recalled and disallowed. (2) So, where an imposition was practised upon the Great Seal, in the manner in which the certificate was lodged at the bank- rupt office for allowance, — Lord Manners declared his intention to revoke the certificate, (though a period oi three years even had elapsed since the allowance) if, upon in- quiry before the commissioners, it was found that it could be done without injury to other persons. (3) And Lord Eldon also, in one instance, ordered a certificate to be recalled, which had been obtained tim years before ; — where it was discovered, that the commission had been issued fraudtdently by the bankrupt — and that with his connivance debts had been proved under the commission, by the pre- ponderance of which the certificate had been obtained. (4') The certificate however, when once obtained, cannot be got rid of in every case in which it might have been stayed. (5) Thus, where the opposing creditor had previously (1) Davies, 437. Ex parte Ca^^^- thorne, 2 Rose, 186. Ex parte Tel- lis, 1 Ball & B. 321. (2) Lord Cowper and Lord Tal- bot, then at the bar, afterwards gave opinions doubting the power of the Lord C'hancellor to recall the certificate ; but it does not 20 appear, that their opinions were ever acted upon. Whitm. 383. (3) Ex parte Tellis, 1 Ball & B. 521. (4) Ex parte Cawthorne, 2 Rose, 186. igVes. 260. (5) Per Lord Eldon, 6 Ves. 614. Sect, ^.j OF THE CERTIFICATE. 587 failed to make out a case upon a petition to stay the certifi- AUoioance Gate, and the bankrupt had been six 7jcars in the possession of ^cUor!^' it, and had been suffered to go into the commercial world, and involve himself and others in all the consequences ["'^ ^ ^^'' of an extensive trade; — Lord Eldon refused to recall the stayed, certificate, notwithstanding there was strong suspicion of its having been obtained unfairly — and dismissed the peti- tion with costs. (1) So, where a creditor, who had not proved his debt under the commission, applied to the Lord Chancellor after the certificate was allowed, for liberty to inspect all the bankrupt's books, suggesting that he had been guilty of gambling transactions — and the Lord Chancellor had ordered the secretary of bankrupts to look into the books for a particular instance, but none such was found ; — Lord Eldon, upon counsel pressing for further inquiry, said he doubted very much, when a certificate had been allowed, whether a person, who was no creditor under the commission, could come in this way for a dis- covery, to obtain which he might file a bill — and refused the further inspection of the bankrupt's books, for the pur- pose of avoiding the certificate. (2) And, as a certificate will not (as we have seen) (3) be stayed, where the circumstances against the bankrupt amount only to strong suspicion, still less will it be recalled on that account ; for there must be a veri/ clear case established against him, to induce the Court to make an order of the latter description. (4) Section IV. Of the Practice on Petitioiis to stay the Certificate. Petitions to stay the certificate, like other petitions in Signature bankruptcy (5), must, bv a general order of Lord Eldon's, "/P^^*" (1) Ex parte Read, Buck. 430. (4) Ex parte Hood, l G. & J. (2) Ex parte Mawson^ 6\ei. 219. 614. (5) See General Order, 12th (5) See ante, oBo. August 1809, and post, "Practice on Petitions." tioners. 588 OF THE CERTIFICATE. [Ch. 14. Petitions to stay it. Attest- ation. When to be pre- sented. be signed by all the petitioners before they are presented — except in cases of partnership, or absence from the king- dom ; in the former of which cases, the signature of one of the partners will be sufficient ; and in the latter case, the petition must be signed by the person presenting it on the behalf of the person so abroad. The signature of each per- son must, also, be attested by the solicitor actually presenting the petition, or by some person who must state himself in his attestation to be attorney, solicitor, or agent of the party signing. And the Lord Chancellor will not, unless under very special circumstances verified by affidavit, dispense with the strict observance of this order. (1) The object of requiring the attestation of a solicitor, is to have his pledge and responsibility to the propriety of the appli- cation. Where, therefore, the signature of the petition purported to be " authenticated" not " attestedy^ by his solicitor — who, in fact, had not witnessed the signature, but merely put his name to it from a knowledge of the pe- titioner's hand-writing — the Lord Chancellor thought, that the spirit of the order had in this instance been com- plied with. (2) But an attestation by the agent to the solicitor has been held to be not a compliance with the order. (3) The court will not extend the time for receiving a pe- tition for the disallowance of a certificate, which must be presented within the twenty-one days from the notice in the Gazette. (4) For where a motion was made on the last day, that a petition might be received only two days afterwards, (which in fact had been already prepai'ed, but was not properly signed) the motion was refused. (5) And, though the allowance of a certificate may be delayed by a previous petition presented within the twenty-one days, yet if another petition to stay it is presented after the twenty- one days, though during the period of its suspension, it will be dismissed with costs. (6) (l) Anon. 1 Rose, 97, Re Bol- dero, ibid. 251. ('i) Ex parte Title;//, 2 Rose, 83, (.3) Ex parLt Weston, 1 Mad. 75. Ex parte Hint, 1 G. & J, 76. (4) See ante, 576. (5) Ex parte Emmett, 1 Mad. 111. (6) Ex j)artc Wright, 1 G. & J. Sect. 4.] OF THE CERTIFICATE. 589 A petition to stay the certificate prospccliveliji that is, Petitions before the bankrupt has passed his last examination, it ° ^ "^ seems, cannot be supported. (1) A copy of the petition, with the Lord Chancellor's As to ser- answer to it, must be per&onalhj served upon the bankrupt vice ot two clear days at the least before the petition day (2), upon otherwise the petition will be dismissed with costs. And, l>ankrupt. though the bankrupt even admits the receipt of a copy of the petition (3), or takes copies of the affidavits in support of it (4<), or files affidavits in answer (5), or even appears to the petition by applying to the court to have the petition advanced in the Lord Chancellor's paper (6), — yet neither of these circumstances is a waiver of his right to be personally served. Neither is it a sufficient excuse, that the omission to serve the bankrupt in proper time was occasioned by the death of the creditor, and that his executor served it as soon as he was legally entitled to act. (7) When the bankrupt is not duly served with the petition, it is not necessary for him to take any notice of it whatever (8); but merely to present a short -petition^ praying that his certificate may be allowed (9); after which, he has a right to call for his certificate on the morning of the petition day. And, where the bankrupt unnecessarily extended this pe- tition, by praying that the petition of the opposing creditor, which had not been duly served, might be dismissed with costs — and thus compelling the creditor to appear upon the hearing, — the Vice-Chancellor refused to give the bankrupt the costs of his petition. (10) The court will, however, where there is a difficulty of meeting with the bankrupt, (1) Ex parte Groome, Buck. 39. (6) Ex parte Groome, Buck. 59. (2) Ex parte Harford, Buck. 38. (7) Ex parte Cotdboiirn, 2 Rose, Ex parte Hofiey, 1 G. & J. 63. 187. 2 Jac. & W. 220. (8) Ex parte Kendall, 1 V. & B, (3) Ex parte Furnival, 1 G. & J. 543. 2 Rose, 1 1 5. 254. (9) Ex parte Moore, 1 G. & J. (4) Ex parte Kendall, 1 V.& B. 255.; and see 2 Mont. B. L. 154. 545. 2 Rose, 115. (10) Ibid. (5) Ex parte Harford, supra. 590 OF THE CERTIFICATE. [Ch. 14. Petitions make an order (upon the application of the petitioner) that ^JJ!^' service of the petition at the bankrupt's residence shall be deemed good service, — provided the application is made before the petition day ; and if the petitioner is prevented, by the conduct of the bankrupt, from making the appli- cation in proper time, and has used reasonable diligence, the court will then make such order, notwithstanding it is not applied for before the petition day. (1) Affidavit of An affidavit of the service of the petition must be filed, service of ^^^ j^j.^^, ^.j^^^^ ^^ ^^^ j^ ^f jj^g hearing. Where the petition. •' . T 1 affidavit is imperfect, the court has permitted the petition to stand over for an hour for time to file another, and has afterwards directed it to be adjourned, in order to give the bankrupt time to answer ; but if, under such circumstances, the second affidavit is not filed when the petition is ad- journed, and is filed subsequent to the day of the hearing, it will then be treated as no affidavit, and the petition will be dismissed with (2) costs. Affidavit in An affidavit must also be made of the truth of the facts support of aijgggjj j^ jjjg petition ; which latter must state all material facts, so as to make a prima facie case for staying the cer- tificate ; for the petitioner will not be permitted to supply the defect of his original case, by filing affidavits in reply. (3) And it is the general rule of the court, to construe the practice strictly, in favour of the certificate. (4) As to filing By a general order of Lord Loughborough (5), qualified by one of Lord Eldon (6), all affidavits made in support of petitions presented against the allowance of a certificate, must be filed in the bankrupt office at the time wlien such petitions are left in the office, except such affidavits as are necessary to be made in reply to any affidavits made in answer to the petition. And no petition is to be received (1) Ex parte Harrison, 1 G. & J. (4) 2 Mont. B. L. 154. and cases 71. there cited. (2) Ex parte Long, 1 G. & J. (5) 12th April 1796. 351. (6) 16th November 1805. (3) Ex parte Cundall, 1 G. & J. 37. Sect. 4.] OF THE CERTIFICATE. 591 against the allowance of any bankrupt's certificate, unless Petitions the affidavits in support of such petition are filed when the lljLl petition is left; in default of which, the certificate is to be forthwith (1) allowed and confirmed. The term '•'■ Jiling an affidavit'^ is construed to mean the swearinfr and carrying it into the office. (2) No affidavit, therefore, in support of a petition to stay a certificate, which is filed after the petition is presented, can be read at the hearing (3); such an affidavit being, from necessity, an exception to the rule applicable to affidavits on other (4) petitions in bankruptcy, viz. that an affidavit, sworn previous to the petition being answered by the Lord Chancellor, is inadmissible in evidence. (5) With respect to affidavits in answer, the practice is, to Affidavits hear the petition for staying the certificate, and then for the "^ answer. court to say (6), whether affidavits in answer are necessary. And if the bankrupt do not file his affidavits in answer till after the petition day, the petitioner against the certificate is entitled to have the petition stand over, that he may have an opportunity of replying to any new matter in the bank- rupt's affidavits. (7) There is one case, however, in which the strictness both Where of the order as to the filing the affidavit when the petition of nil"^^* is presented, and of the general rule applicable to affidavits to filing on other petitions, seems to have been in some degree de- 'p"^^'^^ parted from. For, where the time for presenting a petition from, expired on the 18th, and a petition was presented on the 16th and an affidavit filed — and on the 18th the petitioner gave notice to the bankrupt, that he intended to read some former affidavits made in the same bankruptcy, and anions them, one of the bankrupt's himself — and the Chancellor's order to hear the petition was not made till after the 1 8 th ; — (1) And see ex parte Bowes, (5) Ex parte Overton, 2 Rose, llVes. 540. 257. (2)ExparteiVejf>».1 Section V. When the Certificate is void. iirBy section 130.(1) of the new statute, certain cases are specified, where the bankrupt is not only not entitled to his certificate, but where it is declared to be absolutely void, even after it is obtained. They are as follows : ;''lst. When he has lost by any sort of gaming, or waga-- Gaming or mg, in one day 20l. — or, within one year next preceding his ^agcnng. bankruptcy, 200/. Insurance in the lottery was not con- sidered as a gaming within the former bankrupt laws (2); but it is apprehended, that it would now come within the words " ani/ sort of wagering" of the above section. And though the mere keeping a lottery office has been held to be no ground for invalidating the certificate (3), — yet, if the keeper of such office had contracted for any part of the lottery, it seems doubtful, whether this would not have been held such a sort of gaming, or wagering, as would come within the meaning of the above section. But these questions will not often occur again, as lotteries are so soon to be finally abolished by the legislature. Where a plaintiff gives evi- dence of gaming to avoid the certificate, he must elect, whether he will confine his evidence to one loss amounting to 20/,-— or to several losses amounting to 200/. (4) 2dly. Where the bankrupt has, within one year next Stock- preceding his bankruptcy, lost 200/. (5) by any contract for Jobbing. the purchase or sale of any government or other stock, where such contract was not to be performed within one week after the contract ; or where the stock bought, or sold, was not actually transferred, or delivered in pursuance of such contract. (1) This is taken from 5 G. 2. (4) Hughes v. Morley, 1 Holt, c. 30. S.7. 12. 520. (2) Lewis V. Picrnj, 1 H. B. 29. (5) The sum was lOO/. in cacli (5) Ex parte Richardson, I C. B. of these cases by the 5 G. 2. c. 50. L. 465. s. 12. 594 OF THE CERTinCATE. [Ch. 14. When void. Destroying or falsify- ing books or ac- counts. Conceal- ing pro- perty. Bankrupt being privy to proof of false debt. 3dly. Where, after an act of bankruptcy committed, or in contemplation of bankruptcy, the bankrupt has dc~ stroT/cd, alte?'edf mutilated, or fahified, or caused to be so done, any of his hoolcs, -paper's, "writings, or securities — or made, or been privy to the making of, any false orfraudu- lent entries in any book of account or other document, with intent to defraud his creditors. (1) 4thly. Where he has concealed, property to the value of 10/. or upwards. If a plaintiff, however, seeks to avoid a bankrupt's certificate, by proving concealment to the value of 10/., the defendant may shew that the concealment was not wilful. (2) Where the bankrupt had secreted part of l)is effects — but the circumstances attending the conceal- ment were afterwards, by the examination of the bankrupt and other persons, disclosed to the commissioners — and the whole property had been delivered up to the assignees before the signature of the certificate by the commissioners; — the Vice-Chancellor thought he ought not to stay the cer- tificate on this ground, as the concealment meant by the .5 G. 2. c. 30. s. 7. was a concealment at the time of signing the certificate. (3) And if this decision is correct, there seems to be no reason, why the parallel clause of the new act [section 130.) should not receive the same con- struction. 5thly. Where, if any person proves a false debt under the commission, the bankru})t (being privy thereto, or afterwards knowing the same) shall not disclose the same to his assignees within one month after such knowledge. (4) (1) This is a new provision of the present statute. (2) Cathcart v. Blackwood,Dom. Proc. 1765. (5) Ex parte Bryanty 1 G. & J. 205. (4) This provision, which was in substance contained in the 24 G. 2. c. 57. s. 9. Mr. Eden says, has been strangely overlooked in proceedings on petition to oppose 13 the certificate; for where the bank- rupt has permitted fictitious debts to be proved, the objection made to the certificate in consequence of such conduct, has often pro- ceeded on the mere ground of its proving that he had not made a complete disclosure. Ex parte Laff'ert, 1 Rose, 380. Ex parte Shirley, 2 Rose, 7 1 . Frcydebuj-gli''^ case, 3 Vcs. & B. 142. 'I'hc harsh Sect. 6\] or THE CERTIFICATE. 595 Under this provision, the persons so permitted to prove are ^''"?« admissible witnesses to prove the fraud. (1) " Besides the above cases specified in the statute, there Other are also other instances in which the certificate (as we have already seen (2) ) is held to be void in law, on the ground oi fraud ; namely, where money has been given to a cre- ditor either by the bankrupt, or a third person, to induce him to sign it — or to withdraw a petition against it. (3) commis- sion. Section VI. Of the Effect of the Certificate. The certificate, when it is allowed by the Lord Chan- Discharges cellor, gives the bankrupt a general release in consequence claims ' >=> _ . . . . proveable of his certified conformity, discharging him from all debts under the due by him when he became bankrupt, and from all claims and demands proveable under the commission. (4) As to the different species of debts, therefore, which the certi- ficate will operate in discharge of, the reader is referred to the respective heads in a former Chapter relating to the proof of debts. (5) The certificate, however, will not discharge any person Does not who was a partner with the bankrupt at the time of the discharge I • • 1 1 1 1 J partners, bankruptcy — or who was then jomtly bound, or had made or co-sure- any joint contract with him. (6) Neither does a creditor, ties. who signs the certificate of surviving partners, thereby provision in the 5 G. 2. c.30. s. 12. (I) Edmonstone v. Webb, 3 Esp. that a bankrupt should be excluded 264, from the benefit of his certificate, (2) Ante, 567- if he had, upon the marriage of any (5) Ex parte Gibson, C. B. L. 465. of his children, advanced above 1 Mont. 536. ; and see ante, 569. 100/. — unless he could prove him- (4) Section 121. self then solvent — is altogether (5) Ante, 175. omitted in the new act. (6) Section 121. This provision is taken from the 10 Ann. c. 15. s. 2. 596 OF THE CERTIFICATE. [Ch. 14. Effect. Privilege of proof and dis- charge oi liankriipt co-exten- sive. Exception; verdict after bank- ruptcy, in action on a contract. A dis- charge, as to surety paying debt, or sustaining damage, after bank- ruptcy ; release the estate of a deceased partner. (1) So, though the certificate will discharge one of several covenantors for the payment of an annuity, it will not discharge his co- sureties from the claim of the annuity creditor. (2) The privilege of creditors to prove, and of bankrupts to be discharged from debts, is, generally speaking, co-exten- sive and commensurate (3) ; and this principle is adopted by the new act, which (as we have just seen) provides that all claims and demands proveable under the commission shall be discharged by the certificate. There are only one or two exceptions to this general position of Lord Hard- wicke; — but in this, as in other cases, exceptio prohat regulam. One of these is, where a verdict in an action upon a contract is not obtained until after the bankruptcy of the defendant, in which case the costs resulting from the verdict and the judgment are not proveable under the com- mission — although they have been held to be barred by the certificate, as accessorial to the original debt. A plaintiff, therefore, who perseveres in an action against a bankrupt after the issuing of a commission, runs the risk of losing all claim against him for costs, — in case the debt, on which the action is brought, be barred by the certificate. (4) But, with the exception of a case of this description, debts proveable under the commission, and debts discharged by the certificate, may be said to be convertible terms. (5) Thus, a surety for the bankrupt, who pays the debt even after the issuing of the commission — as he is now permitted to prove it against the bankrupt's estate(6) — will be barred by the certificate. And he will not only be barred from suing the bankrupt, for the recovery of money paid in dis- (1) Sleech\ case, 1 Men v. 570. (2) Baxter v. Nichols, 4 Taunt. 90. (.3) Per Lord Hard wi eke, 1 Atk. 119. (4) Willeit v. Pringlc, 2N. R. 196.; and see Lord Eldon's judg- ment in ex parte Hill, 1 1 Ves. 649. ; and that of the Vicc-Chancellorin ex parte Poucher, 1 G. &J. 386. (5) Bamford v. Burr ell, 2 B. & P. 11. (6) Section 52. Sect. 6.] OF THE CERTIFICATE. 597 charge of the debt — but also from suing him for any con- Effect. sequential damage, accruing from the nonpayment by the bankrupt of such debt. As, where an acceptor of an accom- modation bill broutjht an action a<»ainst the drawer (who had become bankrupt) for not providing him with funds to pay the bill when due, whereby he had incurred the costs of an action, and was obliged to sell an estate in order to raise money to pay the bill, — the certificate was, in this case, held a good bar to the action. (I) But the certificate but only will only discharge the bankrupt from the claims of the ^^^^nj surety, as to those debts which the bankrupt awes at the time owing at of his bankruptcy; therefore, where a surety for payment of time ot the bankrupt's rent paid arrears which became due after the ruptcy. hankniptcy, the certificate was held no bar to an action against him by the surety for repayment of such ar- rears. (2) The certificate, however, does not discharge a bankrupt Certificate from a debt due to the Cronm ; for as the Crown is not does not bar the bound by any statute, unless specifically named (3) — and crown; the King's debt is not mentioned, among those of the cre- ditors in general, in any part of the statute relating to the proof of debts or the certificate, — the Crown, of coiu'se, will not be barred of the peculiar privileges it possesses for the recovery of its own debts. Nor is a bankrupt discharged by his certificate from his nor dis- own express collatei-al covenant of indemnity, which is not charge a broken before his banhniptci)^ unless, indeed, there can be a covenant, value set upon the subject matter of it under the bQth section, "f. ^oml ^ , 111 1 . , .« ot indem- Therefore, where the bankrupt covenanted to indemnify ^ity. the assignor against covenants contained in a lease, which was assigned to the bankrupt before his bankruptcy, — it was held, that as this was a distinct and collateral cove- (1) Vansandany. Corsbie, 3 B. & 584. 2 Moore, 644.; and see ante, A. 15. Wood\.Dodgson,2M,.&.^. Chap. IX. Sect. 21. 195. (5) Rex V. Pu-let/, Bunb. 202. (2) M'Dougul v. Palon, 8 Taunt. 1 Atk. 262. <^8 3 598 OF THE CERTIFICATE. [Ch» 14<_ Bfect. nant, in respect of which the assignor could have no remedy under the commission, — the bankrupt was not discharged by the certificate. (1) And in a similar case, where the bankrupt gave a bond of indemnity to the lessee — which was in fact forfeited before the bankruptcy by rent becoming in arrear, but the lessee had not actually paid the rent to the lessor, — it was held, that the certificate was no bar to the claims of the lessee — on the ground that a bond of indemnity against breaches of covenant is incapable of valuation, it being impossible to calculate how far the ob- ligee may be damnified by any future breaches ; and that the bond, therefore, in this case could neither be proved in respect of the penalty — nor could the lessee prove in re- spect of the rent in arrear, without having first paid it to the lessor — even if such a partial proof under a bond of indemnity could in strictness be admitted. (2) Certificato The certificate also does not, o/' itself, protect the bank- not an ab- Y^^^^ from an action of covenant, or assumpsit, by a lessor protection for non-payment of rent due after the bankruptcy — tor against which he has become liable either as lessee (3), or even as liability on . ,. i i / x ti i i , • ,> i a lease; assignee or the lessee. (4) liut by the 75m section oi the unless as- new statute it is declared, that any bankrupt entitled to '^'^"^Tthe ^^y ^^^^^' ^^ agreement for a lease, if the assignees accept term ; the same, shall not be liable to pay any rent accruing after the date of the commission ; or be sued in respect of any subsequent non-observance, or non-performance, of the conditions, covenants, or agreements therein contained. (5) or the And if the assignees dechne the same, then the bankrupt will not be liable, in case he deliver up such lease or bankrupt deliver the (1) Mat/or V. Steward, 4 Burr. (5) This provision was first in- 2446. Ludford v. Barber, 1 T. II. troduced into the bankrupt law b}' 86. the 49G.O. c. 121. s. 19. but the (2) Taylor v. Young, 3 B. & A. following part of it is new, and 521. 8 Taunt. ."18. 2 Moore, 526. seems but a just provision to re- Co) Milk V. Auriol, I H. B. 45.'5. lieve the bankrupt from his liabi- 4 T.R. 94. Bootv. Wilson, 8 E-dit, lity, in case the assignees reluse 51 1 . the lease. As to what will amount (4) Copeland v. Stephens, 1 B. & to an acceptance of the lease by A. 59o. the assignees, see zute,o9o. Sect. 6.] OF THli CERTIFICATE. 599 agreement to the lessor, or to such peison agreeing to Effect. grant a lease, within fourteen days after he shall have had ^^^^^ ^^ notice that the assignees shall have declined as aforesaid, the lessor. This section, however, only applies to cases between the Exception lessor and lessee^ and does not extend to cases between the f " ^i ^^' ' _ ^ , tends to lessee and the assignee of the lease. Therefore, where an cases be- assienee of a lease gives a bond of indemnity to the lessee t^een les- to protect hnn from the future non-payment of the rent, or hstee. non-performance of the covenants, and afterwards becomes bankrupt, — his certificate will not, as we have just observed, protect him from an action on the bond by the lessee, even though the breach declared upon took place before the bankruptcy. (1) There must be some express act done by the assignees to An express manifest their assent to the assignment as it regards the ^^^:„„„„, o o assignees term, and their acceptance of the lease ; for the general necessary assignment of the bankrupt's personal estate under the t^i'^.'^^ „{. commission does not, without such acceptance on their to take the part, vest a term of years in the assignees. (2) Therefore, ^^*^* until some act of this sort is done by them, the term still remains in the bankrupt, even though he was but himself the assignee of the lease; and his certificate will not pro- tect him from the payment of rent accruing due subsequent to the bankruptcy. (3) If the assignees decline to take the lease, the bankrupt can (as we have seen) now exonerate himself, by delivering up the lease to the lessor within four- teen days after notice of the assignees' declining it. But, if the assignees neglect to determine whether they will When accept, or decline it, there is no express power given by assignees the statute to the bankrupt (as there is to the lessor) to determine. (1_) Taylor \. Young, oB. &A. vesting it absolutely in the assig- 521. neesunder the commission. Mai/or (2) This does not appear to have v. Steivard, 4 Burr. 2443. per Yates been formerly the doctrine held J. Cantril v. Graham, Barnes, 6'9. by the courts, which inclined to Wadham v. Marloive, 8 East, 314. the opinion, that the commission note (c.) Per Lord M. and the proceedings under it ac- (5) Copeland v. Stephens, 1 B. tually dispossessed the bankrupt of & A. 591. his whole estate, transferring and O O 4- 600 OF THE CERTIFICATE. [Ch. 14. Effect. Bankrupt's liability as lessee, once got rid of, not re- newed. Quaere as to certifi- cate dis- charging bankrupt from pay- ments made on cross ac- ceptances. No dis- charge of a promise to pay a weekly sum for an illegiti- mate child; apply to the Lord Chancellor for an order on the assignees, to elect whether they will take the lease or not ; though there seems to be no reason why the Lord Chancellor should not, under his general jurisdiction in bankruptcy, as well indeed as under the equity of the statute, have power to make such an order, when circumstances call for it on the part of the bankrupt. As the certificate discharges the bankrupt from all cove- nants in the lease, if the assignees accept it — his liability to the lessor will not be renewed (except as an assignee of the term), though he comes into possession of the premises afterwards under an assignment from his assignees. Thus, where A. granted a lease to B., which contained a covenant that B. should not underlet without the consent of A. — and B. having become a bankrupt, his assignees assigned the premises to C, who re-assigned them to B. after he had obtained his certificate — after which B. underlet the pre- mises to another person ; — it was held, that B. having been discharged by his bankruptcy from all the covenants as lessee, the underletting by him was no (1) forfeiture of the lease. Where two parties exchanged acceptances, and both became bankrupt at a time when all the bills were in circu- lation — and the assignees of one party, besides paying di- vidends to the full amount of that party's acceptances, had also paid dividends on account of the acceptances of the other, — the Court of King's Bench were equally divided in opinion on the question, whether the assignees could maintain an action to recover such surplus dividends from the other party, notwithstanding his certificate. (2) The certificate has been held no discharge to a bankrupt from an action o^ assumpsit, on a promise to pay the plaintiff a weekly sum for the support of the bankrupt's illegitimate child, except as to the arrears accruing heforc the bank- ruptcy; for the promise was considered to be of such a (1) Doe V. Smith, 1 Marsh. 359. 5 Taunt. 795. (2) Cowley V. Dtmloj), 7 T. R. 565. Sect. 6.] OF THE CERTIFICATE. 601 nature, as not to admit of an aggregate value being set Effect. upon it for the purpose of proof; the future arrears, there- fore, being not proveable under the commission, were of course not discharged by the certificate. (1) So the certi- o"" ^^ ^ ficate is no discliarge of a bastardy bond, as to the bank- [j'onj. rupt's liability for further expenses, incurred by the parish officers subsequently to tlie bankruptcy (2); for this is not like the case of an annuity, which can be set a value upon, and where an estimate is made only of the duration of life ; but, in this case, the expenses for which the party is liable may vary, in consequence of the sickness of the child ; and the contingency will be, not only the duration of life, but on the continuance of health, which is subjected to every accident of human life, and the most precarious and un- certain event possible. The certificate, as we have seen (3), has no operation Certificate nntil it is allowed by the Lord Chancellor ; nor has it, operation when allowed, any relation back to an earlier period, until ac- Thus a legacy (as has been before stated (4) ), which devolves ^ «ylow- upon a bankrupt pending a petition to stay the certificate, nor any though the petition was in fact unfounded, and the certi- J"'^'^^''^" ficate was afterwards allowed, goes to the assignees ; unless, indeed, the petition was presented with the express object of delaying the certificate. (5) So, though the bankrupt's bail will be discharged, if he As to clis- obtains his certificate before they are fixed, yet they will ^^^y ° not bo discharged if they are fixed before the certificate is allowed ; for in that case a new debt arises, which is their own proper debt, distinct from the original debt of the bankrupt, and therefore not discharged by the discharge of the original debt. (6) Formerly, where the bankrupt ob- Mode of tained his certificate pending an action against him, before fp'T'^^ ' {\)Miller\.Whittenburyy\(^Q.mp. (4) Ante, 385. 428. (5) Ex parte Anscll, 19Ves. 208. (2) Oveiseers of St. Martin in (fi) Wuolley v. Cobbe, I Burr. the Fields V. Warren, 1B.&A.491. 244. Cockcrill\. Owston,ihu\.43G. 1 Star. 188.; and see Davies v. ]Vall:crv.Giblett,Yi\.S\\. Mannin Arnoit,3\i\ng.\5i. v. Partridge, 14 East, 599. Sta- (3) Ante, 575. pleton v. Macbar, 7 Taunt. 589. 602 OF THE CERTIFICATE. [Ch. 14. Effect. the bail were fixed, the practice was for the bail to sur- render the defendant — and then for him to apply to be discharged, upon an affidavit stating the fact of his having beconle a bankrupt since the cause of action arose, and having since obtained his certificate. But now, where a bankrupt is clearly entitled to his discharge, the courts (or a judge on summons) to avoid circuity, will order an cxoneretur to be entered on the bail-piece without the form of a regular surrender. ( 1 ) If the bail do not apply to enter an exoncrehir till after the money is levied upon them, When an they can only be relieved upon payment of costs. (2) And be granted. ^^^ courts will not wholly exonerate the bail, without giving the plaintiff in the action an opportunity of trying by an issue, whether the certificate was fairly obtained (3); but they will not grant an issue to try the fact of the bankrupt being a trader ; for the certificate itself is, by the statute (4), made evidence of the trading. (5) In the case of a foreign certificate, however, they will direct an issue to ascertain the circumstances under which the debt was contracted, from which the bail contend to be discharged. (6) The proper mode for the bail to avail themselves of the certi- ficate of their principal, when they are sued upon their recognizance, is not to plead such certificate in their dis- charge — but to apply for relief to the summary jurisdiction As to bail of the court. (7) Bail in error are not entitled to relief^ in error. although the bankrupt obtains his certificate pending the writ of error ; for bail in error cannot (like bail to the action) surrender their principal in discharge of their When bail liability. (8) Neither are bail of any description discharged not dis- j^ ^^ bankrupt's certificate under a second commissioru charged by •' * (1) Palrnby v. Masters, Barnes, (5) Harmer v. Haggcr, 1 B. & 568. Martin V. O'Hara, Cowp. A. 332. 82.3. 1 Tidd. Pract. 280. Todd v. {6) Bamjieldv. Anderson, SMoove, Maxfield, 3 B. & C. 222.; and see 531.; and see post, 530. post, "Of Pleading theCertificatc." (7) Donnelly v . Dunn, 2 Bos. & (2) Mannin w Partridge, ^\i\)n. P. 45. Beddomev. Holbrooke, lHo^. (3) Woolcoty. Leicester, 6 Taunt. & P. 450. note (b). 75. (h) Soiithcotc V. Braithivaile, 1 T. (4) Scclion 1,26. R. (524. Sect. 6.] OF THE CERTIFICATE. 603 where he has not obtained liis certificate under the first ; Effect. for as a second commission against an uncertificated bank- (-ertificate rupt is void, a certificate under such a commission will not under a entitle the bankrupt to be discharged, and the bail can ^^'^'^'^^ " . . comniis- never be in a better situation than the principal. (1) sion. Where a bankrupt has obtained his certificate, he is Certificate competent to justiiy as bail in an action; his recent bank- bankrupt ruptcy being not ot" itself an objection to his so doing. (2) to justify as hail. The effect of a certificate under an English commission As to dis- of bankrupt, upon a debt contracted in a foreisni country — ^ f^^. ^ and the effect also given here to a foreigyi certificate, with debt under respect to a debt contracted either abroad, or in England — ^" li^nglish ^ . . certificate, are questions of a very complicated nature; and involve ot vice many considerations of international law, which, it is far '"'^'''^'^- beyond the scope of the present treatise, to discuss in the manner due to the importance of the subject. The cases, which are to be met with in the books, principally relate to the operation of a foreign certificate in this country — in- stead of tlie effect produced by an Eiiglish certificate upon a foreign debt — this last question, however, being one that is more immediately connected with the object of the pre- sent work. A certificate obtained under an English commission of Certificate bankrupt, as it now discharges the bankrupt from all claims "" jJ", and demands made proveabie under the commission (8), conunis- will operate (as it should seem) in this country at least, to sion, discharge any debt contracted abroad — provided the debt was a proveabie debt, and the foreign creditor had an op- portunity of proving it under the commission. And upon a discharge this principle, it is said to have been determined by the i"„j^° ' court of session in Scotland, that a certificate under an English commission would be a discharge the7e of every debt that could be proved under the commission, whether (i) Martin v. (yUura, Cowp. (2) Smttli v. liobcrls, 1 Cliitt. 825. Kcp. 9. (•3) Seciton llil. 604; OF THE CERTIFICATK. [Ch. 14. Effect. E7iglis/i, or Scotch. ( 1 ) It is said, however, in some of the l~~ T" books, that a certificate under a commission in England operation will not bar a debt contracted in the West Indies (2), on on a debt ^^^ authority of an opinion given by Lord Talbot, when at contracted *' ^ . in the the bar, to this purport : viz. that notwithstanding the colonies, eifects of the bankrupt in the colonies are liable to a com- mission here, and the right is vested in the assignees — and though it might seem reasonable that his certificate should be equally extensive — yet, as the Bankrupt laws of England were made since the West Indian colonies were settled, and therefore did not extend to them unless they were expressly named, — he was of opinion, that a certi- ficate, thougli confirmed here, would be no discharge to the bankrupt, if a suit was commenced against him in Bar- badoes. But in a case, which was not long ago decided at the cockpit, upon an appeal from the col^mial court of Demerara, it was determined (consistently as it seems with the above decision by the court of session in Scotland), that a certificate under an English commission, where the creditor had Jull notice of the commission, was a bar to a suit instituted in the colonial court for the recovery of a debt — the consideration for which debt was goods con- signed by the plaintiff from Demerara to the defendant and his partner in London, for which the latter had ac- cepted bills before their bankruptcy, having also engaged by letter to accept others, which were not presented till after the bankruptcy. (3) And, indeed, it seems but just, (as Lord Talbot admitted in his opinion above cited) that the effect of the certificate should be co-extensive with the assignment ; for, if foreign courts allow the assignees under an English commission to strip the bankrupt of his foreign (l) Bank of Scotland \. Cuthberf, decided, too, is said to be still siib 1 Rose, 486.; and see Cullen, 398. jiidice, though the decision took According to Mr. Bell, however, place so long ago as January 1813. (Bell Com. 693. n.) the bills of ex- Eden's B, L. 396. change in this case being accepted (2) Beawes Lex. Mer. 4th ed. bythe drawees inEngland, the debt 543. Davis B. L. 439. C.B.L.500. was considered as an English debt (3) Odwln v. Forbes, Buck, 57. (and see post, 606). The point Sect. 6.] OF THE CERTIFICATE. 605 property, by giving effect to the assignmeiit in their juris- Effect. diction, they ought with equal reason to give effect to the certificate^ and not leave the bankrupt liable to the actions of the foreign creditors. ( 1 ) With respect to the operation of a. foreign certificate in Operation this country, the English courts are guided by the ques- /ff'^f"^ tion, 'iv/iere the debt ivas contracted^ which the foreign certi- ficate is set up to bar. If it was contracted in the same country where the discharge took place, the law of that country is held to prevail, and the debt therefore becomes extinguished (2) ; and this, as Lord Mansfield said, upon the general principle, that where there is a discharge of a debt by the law of one country, it will be a discharge in every otlier ; and he added, that he remembered a case in Chancery of a cessio bononim in Holland, which, being a discharge in that country, was held to have the same effect here. (3) It becomes, therefore, important to consider in the In what course of this inquiry, under what particular circumstances j^hf^h^i? a debt will be held to be contracted in a particular country, to be ccm- In the case before Lord Mansfield, the demand arose upon ^''"^t^'^- a bill of exchange drawn in Ireland, and paijable by the (I) Mr. Eden thinks, that the land,See post, 606.); for, though the only true ground upon which this consideration for the debt was the case can be supported is, that by goods sent from Demerara, the the Dutch law (according to which debt itself, in virtue of the accept- the Court professed to proceed) all mice of the bills, might be said to foreign debts are barred by a Dutch have been contracted in England, dischai'ge; and that, as the debt (2) Burrows v.Je7mno,iiti\ 152. was in this instance a colonial, and 2Eq. Ab. 524. Mosley, I. Ballan- not an English debt, the decision tine v. Golding, C. B. L. 464. 499. was, upon the general reasoning Potter v. Broivn, 5 Y.a&t,\2'i. given in the judgment, quite un- (5) The cessio bonorum in Hol- tenable. But though the principle land, however, seems (like the same of reciprocity and mutual comity proceeding among the Romans) to formed,certainly, one of the grounds be a discharge of the person only, for the judgment in that case, it is and not of the effects, except as to not so clear, that the debt was some few trifles of wearing apparel, considered to be a colonial debt, &c. See Voet on the Pandects, according even to the principle of 2tom. lib. 42. tit.. 3. andLordHard- Walson v. Renton, (one of the cases wicke's jiidgmer.t in ex parte Bur- cited by Mr. Eden from Bell's ^h, lAtk.255. Commentaries on the Laws of Scot- 606 OF THE CERTIFICATE. [Ch. 14. Effect. Semble, that a foreign certificate is no dis- charge of an English debt. defendant, who resided in Ireland, and who had obtained a certificate under an Irish commission ; this, therefore, was decidedly a foreign debt discharged by a foreign certificate. The genei'al principle indeed (in the case of a debt arising on a bill of exchange) seems to be, that the country where the bill is accepted and paid, is the country where the debt is contracted. Thus, a bill of exchange, (though drawn by the defendant in Ireland) which was accepted and paid by the plaintiiFs in England, was determined by the Court of King's Bench to be an English debt, and therefore not dis- charged by a certificate under an Irish commission. (1) And in like manner, the Scotch courts have holden, that bills accepted by the drawees in England constituted an English debt (2); and even that a bill drawn from New York upon Greenock, which was not accepted, was a Scotch debt, and consequently not discharged by the bankrupt's certificate in New York. (3) So, where goods were consigned by a mer- chant in Scotland to one in England — and a bill, payable at Berwick, was given for part of the goods — the bill, in this case, was held by the Scotch courts to be an English debt — while the general balance of the same debt, resting on the conti'act of sale, was considered as Scotch. (4) The result deducible from all these cases, seems to be, that a foreign ccrtijicate is no bar to an action in England for an English debt -, nor is an English certificate considered in Scotland a discharge of a debt wholly contracted there ; for the courts of both countries appear to agree in their decision (at least with respect to bills of exchange) as to the circumstances, under which the debt is to be considered a foreign, or a home-cofitracted, debt. And the reasoning of Lord Kenyon, in giving judgment upon a point of this description, appears to be quite unanswerable ; for it is impossible (as he observed) to hold, that a contract made in ( 1 ) Lctvis V. Owen, 4 B. & A. 6 54. C2) Banic of Scotland \. Cuthberl, 1 Rose, 4G2,; and sec 2 BcJl Com. (5) Armour v. Camf}hcU, cit. ibid. sFac. Coll. 417. (4) Watson V. Rcnion, 2 Bell Com. 69.~. Sect. G.] OF THE CERTIFICATE. 607 one country is to be governed by the laws of another : and Efcct. he puts the case (as that was) of a contract lawfully made by a subject in this country, which he resorts to an English court of justice to enforce — and the only answer given is, that a law has been made in a foreign country to discharge the defendants from their debts, on condition of their relinquishing all their property to their creditors. " But (he adds) how is that an answer to a subject of this '• country suins; on a lawful contract made here? How can " it be pretended, that he is bound by a condition, to "which he has given no assent either express (1), or « implied ?" A discharge, however, under a sequestration in Scotland Operation issued against a trader residino- there, in conformity to the °, "^' _ *=> o ' J charge provisions of the Scotch bankrupt act (the 54 G. 3. c. 137-) under the has been held to be a bar to an action against the trader p'^'^tch . ., . bankrupt here, on a debt contracted in England, in like manner as it act. is a bar to debts contracted in Scotland. (2) This decision, however, was expressly founded upon the effect of that par- ticular statute, and not upon any general principle. (3) When a foreign certificate is set up in discharge of an Effect of a action in this country, the courts think it a point of too certilcat much importance to be decided in a summary way (4) ; not de- they will, therefore, refuse an application for an exoiier- ^'"^^> J ^ ' itr upon a ettir to be entered on the bail-piece, on the ground of the summai-y defendant's discharge in the foreign country — and will di- ^.PP"'^^- rect an issue, in order to ascertain the circumstances under which the original debt was contracted. (5) Where an execution was levied against the goods of a Certifi- bankrupt, for a debt which existed previous to the bank- ^J^^*^' ^^' , . , • r> , • , foreallow- ruptcy- — and, previous to the execution oi the writ, the ance, does (1) Smith V. Buchanan, 1 East, (4) P odder v. Macmaster, 8 T. <>.; and see Qnin v. Keefc, 2 H. B. R. 610. 553. (5) Bamficld v. Anderson, (2) Sideawat/ v. Hay, 3 B. & C. 5 Moore, 331. Qidn v. Keefe, 2H. 12. B. 553. 5 Moore, 244. Whilting- (3) Ibid. 25.; and see ex parte ham v. De la liic.sc, 2 Chit. Rep. ti'rddex, 1 G. &- J. 4 1 4. '". Barrier v. Languiihe, iliid. 55. 608 OF THE CERTIFICATE. [Ch. U. Effect. not inva- lidate an execution levied. Certificate discharges all debts, whether joint, or separate. A dis- charge of the consi- deration for an annuity. Operation of certifi- cate dis- charged where bankrupt has been bankrupt's certificate was signed by sufficient in number and value of the creditors, but it was not allowed by the Lord Chancellor until after the writ was executed, — the exe- cution was held, under these circumstances, to be valid. (1) Mr. Cooke, however, adds a quaere to this case, whether the goods could legally be considered as the bankrupt'' s, the property of an uncertificated bankrupt belonging to his assignees. But it seems to be now clearl}^ settled, that although property acquired by an uncertificated bank- rupt may be taken from him by his assignees, yet it does not absolutely vest in them ; and if they make no claim to it, the bankrupt has a right to retain it against all other persons. (2) The certificate discharges the bankrupt from all debts, whether joint or separate — and whether the commission, under which it is obtained, is a joint or separate commis- sion ; for the debts, which a man o-wes jointly with another, are in law as much his own debts, as those which he owes on his sejjarafe account. (3) Where an annuity was granted for a sum paid as a consideration, and the grantor became bankrupt — and after- wards the annuity was set aside, — the certificate was held a bar in an action against the grantor for money had and received — on the ground, that the annuity having been set aside, was to be considered as if it had never existed — and that the relation took place to the time when the money was paid, the plaintiff's title to the money accruing from (4) that time. Where the bankrupt has been already discharged by a certificate under any former commission, or has previously compounded with his creditors, or been discharged by any insolvent act, it is declared by section 127.(5) of the new (1) Cullen V. M^rick, 1 T. R. 361. (2) Drayton v. Dale, 2 B, & C. 293.; and see ante, 555. (.5) Ex parte Yale, 3 P. Wms. as. note (A). Horset/'s case, ibid. 2.7. 7'wiss v. Masscy, 1 Atk. 61. Wiclees v. Sfrahan, 2 Str. 1157. Howard v. Poole, ibid. 995. Grace V. Higham, Fitz. 281. (4) Walker v. Liscarry, 6 Esp. 9S. (5) And see 5 G. 2. c, 50. s. 9. Sect. 6.] OF THE CERTIFICATE. 609 Statute, that the certificate will only protect his person from Effect. arrest, unless his estate (after all char";es) shall produce , \ ' \ o ' r already sufficient to pay every creditor under the commission I5s. dischar) 1 Doug. 43. Sect. 6.] or the certificate. 611 no dividend had been declmrd — and the plaintiff afterwards Effcd. entered up judgment, and took out execution; — upon a motion to set it aside, on the ground of the cognovit being discharged by the subsequent bankruptcy and certificate, the Court refused the motion, saying, that a cognovit is a mere acknowledgment of the' amount of the damages — and that where a man acknowledges the cause of action, the plaintiff may sign judgment at any time. (1) As to the form of pleading, and the evidence necessary to defeat a certificate under a second commission, see post. With respect to a certificate under a third commission, As to ccr- it has been held, that though the bankrupt had not paid ^' j^^^ 155. in the pound under the second, the certificate was third com- not void, but voidable only by application to the Lord '"'*5^°"- Chancellor. (2) For a certificate is valid, as long as the commission under which it is obtained continues in force — unless, indeed, in those cases where the statute says that the certificate shall be absolutely void. (3) In that part of the above clause which relates to the Operation compounding with creditors, such a composition only is o^^ '^^■"j.^^- contemplated, as is general, and is calculated to admit all compound- creditors of every description. Therefore, where a deed of '"^ ''"^^^ . . , creditors. composition was framed only for the joint creditors of two bankrupts, and not signed or accepted by the separate cre- ditors of one of the bankrupts, it was held not such a com- pounding, as would prevent the certificate from extending to the protection of the future property of the bankrupt, as well as of his person. (4') But, if the terms of the deed embrace all the creditors, although some of them do not come in, and afterwards sue the bankrupt, and are paid, — that has been held to be such a compounding, as will deprive the bankrupt of the benefit of his certificate, with regard to the protection of his future effects. (5) It is a (1) Wyhorne v. Ross, 2 Taunt. (4) iVbr/ow v. (SAa^espca?-, 15 East, 68. 619. (2) Todd V. Marfield, 3 B. & C. (5) Slaughter v. Cheyne, 1 M. & 222. S. 182. (3) Ibid. R R 2 612 OF THE CERTIFICATE. [Ch. 14. Effect. As to dis- charge under insolvent act. Where money fraudu- lently mis- applied. question, however, when a bankrupt (who has previously compounded with his creditors) pays those creditors before his bankruptcy the full amount of their debts, whether his future estate and effects are to remain liable, unless his estate under the commission shall produce 15s. in the pound. The above provision in the statute makes no distinction, whether the creditors, with whom the bankrupt has com- pounded, are afterwards satisfied or not. And it may be argued, that such a case is within the mischief contemplated by the act ; for the bankrupt will have had all the benefit (for a certain time at least) of a composition, till he could satisfy his creditors the full amount of their debts; and, in the interim, the creditors will have sustained some damage by the delay. The crime, therefore, (if it may be so called) of non-payment will be complete at one time, and the sub- sequent payment in full may have been the very cause of his bankruptcy. (1) On the other hand it may be con- tended, that the term " compounding with his creditors*' is intended by the statute to imply simply a composition as to the amount of his debts — that is, accepting a part in satis- faction of the whole ; and that when the debts are actually paid m Jtdl, the agreement of the creditors to give the bankrupt merely time for payment, cannot be said to come within the meaning of the word comjwsition. An uncertificated bankrupt is not entitled to his dis- chai'ge under the insolvent act, unless he has been in custody for the space of three years. (2) Where after the bankruptcy of one partner, the other was obliged to pay a partnership debt, which he had before the bankruptcy furnished the bankrupt partner with money for the express purpose of discharging — who, instead of doing so, misapplied the money, — this was considered to be such a case o^ frauds as prevented the certificate from operating as a bar to an action by the solvent partner. (l) See the argument of Mr. J. Holroyd (then at the bar) in the case of Read v. Sowerby, 5 M. & S. 79. (2) 7G. 4. c. 57. Sect. 6.] OF THE CERTIFICATE. 613 for the bankrupt's proportion of the debt paid subsequent Effect. to the bankruptcy. (1) But, as such a debt 7nai/ he proved now under the 52d section of the new act, it is a question, whether he would not be discharged by his certificate; for, notwithstanding the fraudulent misapplication of the money by the bankrupt, it does not seem to. come within those exceptions enumerated in the act, which render the certificate void. The certificate does not estop the bankrupt, from dis- Certificate puting the validity of the commission against a stranger to '^"^^ "°' it, between whom and the bankrupt there is, consequently, bankrupt no reciprocity. Therefore, in an action of trover brought ^^"^ ^^^ 1 - • 1 1 1 1 puting agamst a stranger to the commission by a bankrupt, who comniis- had obtained his certificate under a joint commission issued sion against himself and others, he was held to be not pre- srranger. vented from taking advantage of its illegality. (2) It has been before stated (3), that where the bankrupt is Operation assignee of another bankrupt's estate, and is indebted to of certifi- . . cate where that estate in respect of money retained or employed by bankrupt him to the amount of 100/., the certificate will only have assignee of the effect of freeing his 2)erso7i from arrest ; but his future bankrupt effects will remain liable for so much of his debt to the estate, estate of which he is assignee, as shall not be paid by divi- dends under his commission, together with interest for the whole debt. (4') The certificate, also, (as has been already mentioned (5) ) Of no ef- will have no effect, unless it is entered of record at the Bank- ^^^;'^"|fj* rupt office, and has a memorandum of such entry indorsed on it by the proper officer, pursuant to the directions of the 95th and 96tk sections of the new act. (1) Wright V. Hunter, lEast,20 (4) (Sec^ion^ 104, 105. (2) Butts V. Bilfce, 4 Pri. 240. (5) Ante, 576. (5) Ante, 341. n R 3 registered. 614- OF THE CERTIFICATE. [Ch. 14. Section VII. Of Pleading the Certificate^ and herein of the Evidence to support it, or defeat it. When By section 126. (1), any bankrupt who shall, after his ^" " , certificate is allowed, be arrested, or have any action ruptcy and _ ' ' •' certificate brought against him for any debt, claim, or demand, made "l**^ 11 proveable by the statute xinder the commission (2), may be dis- charged upon common bail ; and may plead in general, that the cause of action accrued before he became bankrupt, and give the act and the special matter in evidence; and such certificate and the allowance thereof will be sufficient evidence of the trading, bankruptcy, commission, and other proceedings precedent to the obtaining such certificate, provided the certificate is registered pursuant to the di- rections contained in the 95th and 96th sections. (3) The form As the statute provides for \\\q. particidar form of the the statute P^ea, viz. that the cause of action accrued before the de- iiuist be fendant became bankrupt, — he cannot, therefore, give his bankruptcy in evidence under \\\q general issue. (4) Neither can he plead specially in an action of covenant, " that before the action he became bankrupt, and that the said indenture was made before he became bankrupt;" for he must comply strictly with the form of the plea prescribed by the statute. (5) But it is not necessary to aver, that the bankruptcy happened before the commencement of the suit. (6) And though the certificate is allowed after the (1) Taken from 5 G. 2. c. 50. was to recover full costs, seems to s. 7. 15. be unintentionally omitted. Eden, (2) The words in italics are in- 399. note (a). troduced instead of the words, (4) Gowlandv.Wa7-ren, 1 Camp. " any debt due before such time 56'5. as he became bankrupt," which (5) Charlton v. King, 4 T. R. were in the 5 G. 2. c.'SO. s. 7. 156. (3) The provisions contained in (6) Tower v. Cameron, 6 East, the 5 G. 2. c. 30. s. 7. that if a ver- 415. diet passed for the defendant, he Sect. 7.] OF THE CERTIFICATE. 615 commencement of the action, yet if it is before the })lea is Ofjjhad- pleaded, it will be evidence to support the general plea ' "'^ '^' given by the statute. ( 1 ) It is said to have been ruled by Lord Kenyon, that May be a certificate granted after plea pleaded, though before ^^^^^ ^^^. trial, was not available at law. (2) But it seems to be rein con- settled, that it may be pleaded puis darrein continuance at any time before judgment; and an affidavit verifying the plea to the best of the deponenfs knowledge and belief has been held a sufficient affidavit to accompany the plea under the 4 Ann. c. \6. s. 11. (3) Thus, where an uncertificated bankrupt had pleaded a judgment recovered — and upon an issue of md tiel record^ the plaintiff ruled him to produce the record on the 25th April — and the bankrupt (who had obtained his certificate on the 14th of April) on the morning of the 25th moved for leave to plead the allow- ance of the certificate p^^^5 darrein contimiance^ — the Court in this case allowed the plea. (4) And though the certi- ficate be not obtained till after judgment, when it is too late to plead it, it is still available for the bankrupt's dis- charge out of execution for the debt and costs. (5) The plea of bankruptcy does not require the signature As to of counsel in the King's Bench (6); but in the Common counsel's -r«i • J • • • ,w\ mi . signature. Fleas a serjeant s signature is necessary to it. (7) 1 he plea must be delivered, and not filed. (8) It was once held, that the defendant must aver in his As to aver- plea, " that he has conformed according to the statutes '"^"j^ ^^. confornii- (1) Harris v. James, 9 East, 82. (3) Skarpev. Witham, 1 M'Clell. Qu0ere,Whether the wording of the & Y. 350. new act, section 126. (in which the (4) Tbid. words, "after his certificate shall (5) Per Lord ]pilenborough /far- have been allowed," are used — ris v. James, 9 East, 92.; and see instead of the general word " after- Section 126. wards," in the 5 G. 5. c. 30. s. 7. (6) Leigh v. Monteiro, 6 T. R. 13.) will not make a difference in 496. this respect. (7) Pitcher v. Martin, 3 Bos. & (2) Longmead v. Beard, cit. P. 171. 9 East, 85. (8) Henderson v. Samson, 2B. &A.592. R R 4 ty. 616 OF THE CERTIFICATE. [Ch. J 4. Ofj)lead' concerning bankrupt;" (1) but this case was afterwards mgtt. {jg,^ie(^i to be law ; for, if the defendant has 7tot conformed, it is matter of evidence (2), and the statute having directed a general form of pleading the bankruptcy, it seems suffi- cient to follow the words of the statute. Pleading As to pleading the certificate in equity, it has been held, m equity, ^.j^^j. -f ^^^^ demand of a plaintiff in equity against a bankrupt is in the nature of an action at law for a tori, the bill may be demurred to ; but if it is in the nature of an action of assumpsit^ the defendant may plead his bankruptcy and certificate. (3) As to If a bankrupt is sued by his surety, or other person, who plemimg ^^.^g liable for his debts at the time the commission issued certificate when sued against him, (though the surety may have become such after by surety, y^^ ^^^^ ^f bankruptcy, and pays the debt after the issuing of the commission), the bankrupt must plead his bankruptcy and certificate, if he means to avail himself of it. (4) In such a case it has lately been decided (with reference to the Sth section of the 49 G. 3. c. 121.), that the general plea of bankruptcy was sufficient without pleading the bank- ruptcy (5) specially — the obvious meaning of that section being, in the words of Lord C. J. Abbott, that the bankrupt should have the same benefit of a precise form of pleading, as if the debt had arisen before the bankruptcy ; and that a payment made by the surety after the bankruptcy placed the party in the same situation, as if the payment had been made before the bankruptcy by any other person. (6) This decision, however, was founded on the peculiar wording of the latter part of the Sth section of the 49 G. 3. (which is omitted in the parallel section, the 52d, of the new statute) — as well as upon the circumstance of no decision having been cited, to show that the general form would not do. But a case might have been cited, in which it was held by (1) Parisv. (Sd^f-M, 2Wils. 139. (4) Stcdman v. Martismont, (2) Willanv.Geordini, I CQ.h. 12 East, 664. 13 East, 427. 518. (-S) Westcott \. Hodges, 5 B. & (3) De Tastet v. Walker, Buck, A. 12. 153. (6) Ibid. 17. Sect. 7.] OF THE CERTiriCATE. 61? Lord Mansfield, that when a promissory note was made Of plead- before, but was not payable until c/f'hr the bankruptcy, a ' "^ '^' plea that the debt was due at the time of" the bankruptcy was bad in point of form. ( 1 ) It may therefore still be advisable, in sucli a case, to plead the bankruptcy more specially, than in the general form given by the statute. (2) The general plea, as given by the statute, puts the whole General merits of the question in evidence on both sides ; and, [hg^'^ho^g therefore, in an action on a bond to which bankruptcy is merits in pleaded, the plaintiff will be allowed to give the coiisider- *^*"'^' ation of the bond in evidence, to show that he is not barred by the certificate. (3) So, the plaintiff will be at liberty to give evidence of gaming by the bankrupt, in order to vitiate the certificate ; but he must confine his evidence to one day, if he relies upon the bankrupt having lost 20/.; and he must also elect, whether he will give evidence of one loss amounting to 20/. in one day, or of several losses in the year amounting to 200/. (4<) And, generally, all facts, which the plaintiff relies on as vacating the certificate, may be given in evidence on the similitei' to the defendant's plea (5) ; for (the plea of bankruptcy and certificate coti- duding to the countrij) a replication of any new fact (which according to the rules of pleading must conclude with a verification) would be bad on special demurrer. (6) Whei'e the defendant, upon a plea of bankruptcy, put When in a certificate under a commission issued against him by a '^.o'^rois- ^ •' sion issued different name from that which he was commonly known by, against — upon its being objected that the certificate was a nullity, f'''*"'^'!"?' Lord Ellenborough ruled, that the objection might be a ent name, good ground for applying to the Lord Chancellor to super- sede the commission — but that if it really did issue against the defendant, while it remained in force, he must give (1) Trueman v. Fenton, Cowp. (4) Hughes v. Morlei/, 1 Holt> 544. 520. (2) See Wood v. Dodgson, 2 M. (5) S, C 1 B. & A. 22. & S. 196. (6) Wi/so?i V. Kcmj), 2 M. & S. (5) Alsop V. Price, Doug. 155.; 549.; and see Miici v. Williuitis, and see ex parte Kcnnct, 1 Ves. & 1 P. Wins. 258. B. 193. 1 Rose, 351. 618 OF THE CERTIFICATE. [Ch. U. Of plead- ing it. Foreign certificate should be specially pleaded. What cer- tificate af- fords pre- sumptive proof of. Plaintiff can only impeach the certi- ficate. As to costs, when bankrupt sued by executor. Where certificate pleaded effect to the certificate; but he required evidence, that the defendant was once called by the name mentioned in the commission. (1) A certificate obtained in a foreign country should be specially pleaded, setting forth all the proceedings under the bankruptcy ; for where, under a bankruptcy in Ireland, there was a general plea of the bankruptcy and certifi- cate, referring to the Iri&h statute, and concluding to the country in the same manner as the plea allowed with respect to English bankrupts, it was held bad. (2) On the trial of a plea of bankruptcy, the time of the issuing of the commission is presumptively proved to be on the day of the date of the commission, as it appears in the certifi- cate — and the time of the act of bankruptcy, upon which the commission issued, is also presumptively proved by the statement of it in the proceedings under the commission. (3) It was held by Lord Kenyon, that the plaintiff was pre- cluded from going into any evidence to impeach the com- missio7t, and that it must be confined to the certificate only; but that, if the petitioning creditor signed the certificate, evidence might then be admitted of his debt being of such a description, as would render the certificate null and void, though it might have the effect of impeaching the com- mission itself. (4) In an action brought against a bankrupt by an executor, though the defendant obtains a verdict upon a plea of bankruptcy and certificate, the plaintiff is in this case no more liable to costs, than when suing as executor in any other action; for the general statutes giving costs to defendants are held not to extend to executors and administrators. (5) When a bankrupt pleads his certificate under a second commission, — the production of thcj/fr^^ commission and the (1) Stevens v. Elizee, 3 Camp. 256. (2) Quin V. Keefe, 2 H. B. 553. For a form of a plea of a foreign certificate, see Potter v. Brown, 5 East, 1 ■24. (5) Pearson v. Fletcher, 5 Esp. 90. (4) Bateson v. Hartsink, 4 Esp. 43. (5) Martin v. Norfolk, i H. B. 528. Sect. 7.] OF THE CERTIFICATE. 619 proceedings under it, with proof that the bankrupt sub- Of plead- mitted to it, is sufficient evidence against liim, of his ^ "^ '^' having been a bankrupt under the first commission. (1) under a And the omis then lies on the bankrupt to prove, that his second 1 77-1 -1 111 1 coramis- estate has actually paul 1 55. ni the pound under the second sjon, what commission (2); for mere proof of the probability of this is bankrupt not sufficient. (3) When indeed, under the former law, a prove. judgment creditor had recourse to a scire facias against a certificated bankrupt under a second commission, in order to obtain execution against his effects, the plaintiff was obliged to aver, that the bankrupt's estate had not paid 15^. in the pound — because, in a scire facias, the plaintiff must state every thing that entitles him to recover (4) — though it seems that the plaintiff was not bound to prove that negative. (5) Where, on the defendant's pleading his bankruptcy, issue What is joined on the flict, whether he has been discharijed or P'^'"'^J" I r • • ii'-m bound to not under a. former commission, — the plaintiff must show, prove to that the defendant obtained his certificate under that com- ^^^^^^ ^t. mission, either by the regular proof of it, or by secondary ^ ^f *^" evidence after notice to produce it. The defendant's affi- evidence davit of conformity under the first commission would be i9r™er good secondary evidence, if (after notice) he failed to pro- duce the certificate; but it would be insufficient without such notice. (6) If, however, after notice to produce the former certificate, the defendant does not produce it, — it is sufficient evidence of the allowance of it by the Lord Chancellor, if witnesses state, that they were employed by the bankrupt to solicit the certificate — and that, looking at their books, they have no doubt it was allowed (7) by the Lord Chan- cellor. But the book kept in the office of the secretary of (1) HavUand v. Cook, 5 T. R. (4) Gill v. Scrivejts, 7 T.R. 27. 655, (5) Per Lord Alvanley, 3 Bos. (2) Jelfs V. Ballard, 1 Bos. & P. & P. 1 87. 467. Edmonson v. Packer, 3 Bos. (6) Graham v. Grill, 4 Camp. & P. 187. Gregory v. Merton, 282. sEsp. 195. (7) Henry v. Leigh, 3 Camp. (3) Coverly v. Morley, 16 East, 499. '225. certificate. 620 OF THE CERTIFICATE. [Ch. 14. Of plead- ing it. Where bankrupt neglects to plead his cer- tificate ; or to pro- duce it upon the trial. Conse- quences as to bail. bankrupts, in which entries are made of the allowance of the certificate, is not secondary evidence of the allowance, in the absence of the clerk who made the entry. ( 1 ) Where judgment was obtained against a defendant, who had omitted to plead his bankruptcy through the neglect of his attorney — and it was a fair case on the part of the defendant, — the Court of Common Pleas set aside the judg- ment, in order to let in the plea of bankruptcy, observing, that it would be cruel to charge the bankrupt from such neglect. (2) But where a bankrupt, after pleading his bankruptcy, neglected to produce his certificate upon the trial, and a verdict was obtained against him, — the Court of Chancery would not assist him by granting him an in- junction. (3) In a case, where the defendant's bail became fixed, in consequence of his omitting to plead his bankruptcy, the Court of Common Pleas refused to set aside the proceed- ings against them, saying, that it was the duty of the bail to watch the proceedings against their principal ; and that they were in all cases bound, or benefited, by the defence which he makes (4) to the action. But this case has never been acted upon in the Court of King's Bench, where the general rule is, that wherever the bankrupt is entitled to his discharge, the Court will relieve the bail, on motion for entering an exoneretur on the bail-piece. (5) Where the proceedings in an action on the bail-bond were stayed, and the defendant in the original action afterwards pleaded the general issue, and subsequently a plea of bank- ruptcy 'puis darrein contimiance — there being no affidavit that the application to stay the proceedings was made on the part of the bail, — the Court of King's Bench set aside the latter plea, and restrained the defendant to his plea of (1) Henry v. Leigh, 5 Camp. (4) Clarke v. Hoppe, 3 Taunt. 499. 46. (2) Evans v. Gill, 1 Bos. &P. 52. (5) Todd v. Maxjield, 5 B. & C. (5) Lingardv. Hibbcrtson, 1 Rose, 222. 460. Sect. 8.] OF THE CERTIFICATE. 621 the general issue — on the ground, that when the proceed- Of plead- ings were stayed in the action on the bail-bond, it was in- '" ^ '^' tended, that the defendant should only question the validity of the original debt. (1) The plea of bankruptcy also is given only to the bankrupt himself: bail, therefore, cannot plead the bankruptcy and certificate of their principal in an action brought against them ; but must either apply to the Court for summary relief by motion, or proceed by audita querela. (2) On the production of the certificate in evidence, the in- Registry of dorsement thereon, purporting to be signed by the proper ^^""t^'ncate, officer at the bankrupt office, will (without any proof of proved, such signature (3) ) be admissible evidence of the certifi- cate having been duly entered of record, pursuant to the requisitions of the 95th and 9Qth sections of the new statute. I'he allo'wance of the certificate needs no proof; for the Allow- Judges take judicial notice of the hand- writing of the Lord ^^'^^' Chancellor. * Section YIII. Of Discharging a certificated Bankrupt. By section 126. of the new statute (as we have already Bankrupt seen) it is provided, that wiiere the bankrupt after the JJ^^^.'^^ allowance of his certificate is arrested for any debt, claim, on com- or demand, proveable under the commission, he may be i"0"bail. discharged upon common bail. And if he is taken in exe- cution, or detained in prison for such debt, where judg- ment has been obtained before the allowance of his certifi- cate, any Judge of the court wherein the judgment has been obtained may, on the bankrupt producing his certi- (1) Dowson V. Levi, 4 B. & A. 450. Donnelly v. Dunn, 1 Bos. & 249. P. 45. (2) Walker y. Giblett, 2B1. 812. (5) Section 96.; and see post. Beddome v. Holbrooke, 1 Bos. & P. Chap. XVIII. title " Evidence." 622 OF THE CERTIFICATE. [CI). 14, Of dis- charging the bank- rupt. Officer cannot discharge without a Judge's order. When order for discharge will be refused. A feigned issue some- times directed. As to re- lief on an audita querela. ficate, order the officer to discharge him without exacting any fee. The officer, however, who arrests the bankrupt, has no power to discharge him without the order of a Judge ; and therefore, where a bankrupt taken in execution produced his certificate to the officer and demanded his discharge, with which the officer complied, the Court refused to stay proceedings in an action against the sheriff for an escape. ( I ) The Court will not discharge the bankrupt upon com- mon bail, if it appears that the certificate was obtained by fraud (2) — or that the bankrupt has been guilty of any de- ception (3) — or if the certificate is seriously meant to be disputed, (i) But in a case where an attorney, who had obtained his certificate under a commission, describing him as " a dealer and chapman," was arrested for a debt pay- able before the commission issued — though the plaintiff swore that he did not know that the defendant was the person mentioned in the commission, and that he intended to dispute the validity of it on the ground of fraud, — the Court of Common Pleas nevertheless ordered the bank- rupt to be discharged on common bail, as the plaintiff had not stated the nature of the fraud, nor iiohen he discovered its existence. (5) The Courts, however, will sometimes, when they think it necessary, instead of discharging the bankrupt in a summary way, direct the commission to be tried on a feigned issue (6) ; and the same thing also has been done against the bail, where the validity of the certi- cate has been contested. (7) In cases where execution had been taken out against the goods of a bankrupt, and executed after the allowance (1) Sherwoodv.BensoUyAli&uvit. {5) Kemp v. Neville, 5 Moore, 631. 21. (2) Vincent y. Brady, '2\i.'R.\. (6) Yeo v. Allen, Tidd. Prac. (3) Sowley v. Jones, 2 Bl. 725. 215, (4) Stacey v. Frederici, 2 Bos. (7) WooUer \. Leicester, GTaunt. & P. 390. Nowers v. Colman, 75. Buck, 5. Sect. 8.] OF THE CERTIFICATE. G23 of the certificate, it was formerly held, that a Judge had Ofdis- no authority to discharge the execution upon motion, and ^'^"''P'^g I 1 1 1 I • 1- r ,■ ^ the bank- that the bankrupt, to obtam relier, must resort to an audita rupt. querela, {i) But the modern practice appears to be, for ' the Courts to interpose in a summary way in all cases, where the party would be entitled to relief on an audita querela. (2) A cei'tificated bankrupt is, also, entitled to be discharged As to from custody, though his imprisonment is in the nature ™P™on- •^ , " , ^ raent for a of a contempt, in not obeying the order of the Lord Chan- contempt cellor made in a previous matter of bankruptcy — that is, if such order is for the payment of money by him, which could be proved under his commission. (3) It has been suggested, that bankruptcy and certificate is on ?kcapias no ground of discharge of a prisoner in custody on a capias " ^''' ""'* utlagatum {^) ; though it is somewhat difficult to extract such a position from the very confused report of the case, which is cited as an authority for it. As to the discharge of a bankrupt, when he is arrested upon a new promise to pay a debt barred by the certifi- cate, see the following section. Where a joint action is brought against a bankrupt Where (who has obtained his certificate) along with other defend- jointw ^ ants, the bankrupt's name will be struck out of the pro- sued with ceedings, unless he is indemnified by the plaintiff. (5) ° ^'^°' (1) Caleraft v. Swan, Barnes, (3) Ex parte Eicke, 1 G. «& J. 204. Ashdow7i\. Fisher, \h\d. 206. 261. Callenv. Mcyrick, iT.R. 36 i. {4) Beauchamp v. Tomkins, (2) Lister v. Mundell, 1 Bos. & 3 Taunt. 141. P. 427. 3 Bl. Com. 406.; and see (5) Ex parte Read, 1 Rose, 4G0. Anon. 1 Salk. 95. and Wicket \. iV.&B. 346. £remer, I Ld. R. 439. 1 Salk. 264. G24. OF THE CERTIFICATE. [Ch. U. The pro- mise must now be in writing, and signed by the bankrupt. A plaintiff need only declare on the ori- ginal con- sideration. Security given by bankrupt after his bankrupt- cy for part of a debt not provedy valid. Section IX» Of the Bankrupfs Liability on a new Promise. Though a bankrupt is discharged by his certificate from all debts due at the time of the commission, he may still make himself liable on a new jiromisc to pay any one of those debts ; for, though all legal remedy of the creditor is taken away by the statute, the debt itself is clearly not ex- tinguished in conscience ,- and every honest man, as Lord Mansfield observed, would discharge all debts owing by him at his bankruptcy, if he afterwards had it in his power to do so. (1) But it is now provided by the new statute (section 131.) that such promise must be in writing, in order to bind the bankrupt ; and it must also be either signed by himself, or by some person lawfully authorised in writing by him. The existence of the debt i7i foro conscienti(£ is a suffi- cient consideration for the bankrupt's promise to pay it ; and indebitatus assumpsit will lie against him on the original consideration, to which the certificate will be no bar (2) ; neither need the plaintiff declare specially on such new promise ; but it will be sufficient for him to declare gene- rally, and give the subsequent promise in evidence. (3) The bankrupt, also, may after his bankruptcy give a cre- ditor (who does not come in under the commission) a valid security for the whole, or for part of his debt, which will not be barred by his certificate. As where a bankrupt, who was indebted to the plaintiff" upon two notes for Q^l. 9s. each (which were not proved under the commission), voluntarily proposed to secure to him the payment of 671. in satisfaction of his debt, if he would take up the two notes, and cancel and (1) Per Ld. M. 2 Cowp. 548. Per Ld. Hard. 1 Atk. 256. (2) Perm v. Bennett, 4 Camp. 205. Williams v. Di/de, Peake, 68. Dillo7i V. Bailey, cit. Cowp. 549. (.■>) Ibid. Sect. 9.J OF THE CERTIFICATE. 625 deliver them to the bankrupt — and the plaintiff accordingly Uabiliiy on pj did so, and took in exchange from the bankrupt a fresh promise note for 67/. ? — it was held, under these circumstances, that a plea of bankruptcy and certificate would not bar the plaintiff's demand on the last-mentioned note — and that, as there was no scheme on the part of the plaintiff' to de- ceive or impose upon the bankrupt, the plaintiff might recover. ( 1 ) So, if a bankrupt after being discharged by So for a his certificate applies to one of his creditors (who had ^^ if after proved under the commission) to lend him a sum of money certificate. to carry on his trade, or to become his security for any office — and as a consideration executes a bond for the old debt, — such bond is valid. (2) So, also, if a bankrupt pay As to pay- interest upon a bond proveable under the commission, j^jg^ggj ^j, after having obtained his certificate, — it will be an admis- a bond sion by him that the principal was then due, and he will *"^*^ ^^ be liable as on a new contract. (3) A promise, also, (made after bankruptcy to pay an old Promise debt) is equally binding on the bankrupt, though it is made ^^Qy^^ before he obtains his certificate ; and such promise is not made destroyed by the certificate being obtained afterwards. (4) -^^-t. So, where a bankrupt after his bankruptcy, and before certificate, indorsed to the plaintiff two promissory notes, to secure a debt due before the bankruptcy, the certificate subsequently obtained was held no bar to an action on the notes. (5) Where, also, a defendant was in execution at the suit of the plaintiff, and a commission of bankrupt issued against him — soon after which, in order to regain his liberty, he g^ve the plaintiff a bond and warrant of attorney to confess judgment for the old debt -^ and the defendant afterwards obtained his certificate under the commission, — the certificate was held to be no bar to the plaintiff's re- covering; for the bogd* and. warrant of attorney being (1) Trueman\. Fe7iton, 2 Cowp, (i) Roberts v. Morgan, 2 Esp. 544. ' V "* 736. ' ' , ' (2) Ex parte Burton, 1 Atk.25d: (5) Brk:\. Braham, lBing.281, ^{^5) Alsopy. Broivn,liouq,.\\)2. • * » ^ ^ f 626 OF THE CEU'IHKICATE. [Ch. 14-. LiabUUif on (I new promise. As to a conditional, or ail ab- solute, pro- mise. General declar- ations not sufficient. As to lia- bility to arrest on siibsc(|uent promise. irivcn to procure the defendant's liberty, the old debt became thereby extinguished, arid it was considered to be a new debt(l) arising upon a new consideration. But any trans- action of this nature will of course be invalid, if the object is to obtain a creditor's signature to the certificate (2), or to dissuade him from opposing the allowance of it by the Lord Chancellor. In a case where a bankrupt, after obtaining his certifi- cate, said, " the jplaintrjf shotild he no loscr^ but that he ivould imy when he xms able," — two of the Judges held, that this was a conditional promise, and th.at the plaintiif ought to have shown that the defendant xvas able to pay : but Lord Loughborough thought it amounted to an abso- lute promise. (3) Genaril declarations, however, b}' the bankrupt, " that he 'would jmy every body, and that his effects "diould jmy 205. in the imund (4')," are not sufficiently precise and positive to bind the bankrupt by a new pro- mise, which should be in itself express, distinct (3), and unequivocal. And a subsequent promise to pay a pi'omis- sory note, which had been given to a creditor by way of fraudulent preference, is a promise without consideration, and will not therefore support an (6) action. Where a certificated bankrupt was arrested for an old debt contended to have been revived by a new promise, namely, to *' pay when he was able," — the Court of King's Bench discharged him upon common bail ; Lord Mans- field observing, that to keep a man in prison upon a con- scientious obligation, would be taking advantage of liis con- scientiousness to use it against all conscience. (7) And in a recent case, the Court has acted upon the same princi- ple, where the bankrupt was alleged to have made even an (1) Birch V. Sharland, 1 T. R. {5) Fleming v. Hayne, 1 Star. 715. .170. . (2) Sec ante, 567. 569. 570. (6) Coetcsholt v. Bennett, 2 T. R. (.3) Bcsford\. Saunders, 2 H. B. 16Z. 116. ( 7 ) Baitcij V . Dillon, 2 Burr. 756 . (4) Lj/nbiij/v Wcigldtnan, 5Eii). ■Fortlv.(Mllun,'2ii[.79'J. 198. 1 Sect. 9.] OF THE CERTIFICATE. 627 absolute promise to pav the debt, the Chief Justice saying, LiabUity on a new promise. ., , . . f. , . , , , ore a new " tliat It was a question for the jtiry, whether, or no, the " bankrupt has made himself hable by a new promise ; and, " until they have decided that question against him, he is en- " titled to be discharged." (1) The like principle, also, has been adopted by the Court, where an insolvent debtor has made an absolute promise to pay a debt contracted prior to his discharge under the insolvent act. (2) The Court of Exchequer however have determined, that, when the pro- mise of the bankrupt to pay is absolute, the bankrupt may be arrested (3) — on the principle, as it seems, that where the debt is comjjletcly revived by a subsequent promise to pay it, all its legal incidents are also revived ; one of which is, the right of the creditor to hold his debtor to bail. This judgment is professed to be founded on the authority of two old cases in the King's Bench, in one (4) of which the point appears to be so decided : — but in the other, (5) the Court merely refused to set aside an execution against the goods of a defendant, who, having been discharged under the insolvent act, gave a note for a part of the debt not paid under the assignment. Moreover, the reasons assigned by the Court of Exchequer for its judgment, it must be confessed, do not appear to be very tenable ; — for the debt cannot be said to be " completely revived" until a jury have found it to be so ; and the mere cdlegation of the plaintijf in his affidavit to hold to bail can never be con- tended to amount to any evidence of such absolute revival. Where a bankrupt promised a creditor to pay him a sum What act certain, in consideration that he would not come under the %}' '^ *^-[f" (1) Peers \. Gadderer, 1 B. &C. 595. Turner v. Schomberg, sStr. 116. The words of the \26th sec- 1233. sed vide contra, Horton v. Hon are also extremely strong, viz. Moggridge, 6 Taunt. 563. " any bankrupt, who, after his cer- (5) Blackbourn v. Ogle, s Pri. tificatc shall have been allowed, 526. shall be arrested for any debt made (4) Drew v, Jeffcries, Hil. T. proveablc under the commission, 17S6. 8 Pri. 531. 1 Tidd. Prac. shall be discharged upon common 251. bail." (5) Best v. Barlcer, Mich. T. (2) Wilson V. Kemp, 3 M. & S. 1782. 8 Pri. 533. S S 2 628 Liability on a new promise. be a wai- ver of the agree- ment. OF THE CERTIFICATE. [Ch. 14. commission — and the creditor afterwards petitioned the Lord Chancellor against the allowance of the bankrupt's certificate — this was held to be a waiver of the agree- ment — and that the creditor was thereby deprived of all claim to any benefit which he might have otherwise derived under it ; for, by opposing the bankrupt's certificate, the creditor had been guilty of mala Jides, in defeating the object of the agreement by an act which was totally incon- sistent with it. (1) (1) C0II4 V. LoveUy I Esp. 282. I 629 CHAP. XV. OF PARTNERS. Sect. 1 . Of the Effect of Bankruptcy generally^ as to the Relation between Partners; and herein more particularly of the Effect of a separate Com- mission against one^ or more, of the Partners. 2. What is joint, and what separate, Property under a joint or separate Commission. 3. What is a joint, and what a separate, Debt. 4. Of Proof by joint Creditors against the joint and separate Estates. 5. Of Proof by separate Creditors under a Joint Commission. 6. Of Proof by Creditors holding Joint and several Securities ,- and herein of the Creditor'' s Elec- tion against the joint, or separate. Estates. 7. Of Proof between Partners, and different Firms composing one general Parttiership. As to the effect of a sea'et Partnership, see ante, " Reputed Ownership," 418. And as to the right of one Partner to his Allowance under a Joint Commission, see ante, Chapter XIII. " Of the Bankrupt's Allowance." Having in a former Chapter (1) considered the mode and effect of suing out both a Joint Commission against partners, and a separate Commission against one or more (I) Ante, Ch. V. s. 4, s s 3 630 OF PARTNERS. [Ch. Ij members of a partnership, it is proposed in tliis Chapter to inquire in what manner a joint, or separate, commission affects the joint and separate ipropcrty of the partners ; — and, afterwards, to consider the right of proof by the joint and separate creditors of the partnership, as well as that between the separate estates of the partners themselves ; this being a branch of the subject, which it was thought too complex in the present treatise to include under the general title of proof of debts. The division of the subject matter intended to be discussed may, it is conceived, be conveniently ar- ranged under the foregoing heads. . Section I. Of the Effect of Banlcruptcy generally, as to the Relation between Partners; and herein more pnrticidarhj of the Effect of a SEPARATE Comiuission against one, or more, of the Partners. Effect of joint coin- Effect of a separate commis- sion as to bankrupt partner. A joijit commission against partners, followed by an assignment of the estate and effects, puts an end of neces- sity to the entire partnership ; as all the joint stock and effects, with which the trade could be carried on, become thenceforth vested in the assignees. And, in the same manner, a separate commission against one partner, followed by an adjudication that he is a bankrupt, determines the partnership also, as to hi7n, and avoids all his acts(l) from the day of the bankruptcy. It amounts in fact to a sever- ance of the joint-tenancy subsisting between him and the other partners (2) ; and his assignees become thenceforth tenants in common with the solvent partner in all the partnership effects. But they cannot sue for any debts or (l) Thomason v. Frere, 10 East, 418. Hague V. Rolleston, 4 Burr, 2174, (2) Barker v. Goodair, 1 1 Vcs. 78." Ex parte Smith, 5Vcs.295. Sect. I.] OF PARTNERS. 631 effects of the partnership, without joininjr the solvent lW<^c^ ']!' partner as a plaintiff in tlie action (1), or liis personal ,.^w' representatives (2) in the event of his death; for the as- signees of the bankrupt partner take the partnersiiip pro- perty, subject of course to all the rights of the solvent partner. (3) A separate commission, indeed, against one partner so completely dissolves the partnership, that in a case, where a solvent partner after the act of bankruptcy of his co-partner indorsed a bill in the name of the firn), Lord EUenborough held, that an action could not be maintained by the indorsee against the tvoo iuirLncr& as in- dorsers ; for that at the time of the indorsement the bank- rupt partner had no longer any interest in the bill, and was incapable of exercising any act of ownership over it, the partnership having then ceased to exist. (4) With resi:>ect to the validity of acts done by the solvent Effect of partner, in the disposal of the partnership property after cmnmis- the act of bankruptcy of his co-partnei, there seems to be sion as lo some difference between the decisions at law, and those in ^''"f ^ ' . partner. equity and hanlinqHcy. At laiso, it has been hokien that Decisions such a transfer of the partnership property, for a valuable «it law. consideration and without fraud, is valid against the as- signees — on the ground that the purchaser, or person to whom the property is transferred, thereby becomes a tenant in common with the assignees of the chattel or pro- perty so transferred — and that, as one tenant in common cannot sue another, so neither can the assignees in this ease bring an action of trover to recover the property back. (5) In the absence of fraud, indeed, it seems that by such a delivery the 'iSohole legal property is trans- ferred (6) ; though Lord Kenyon is reported to have ruled (1) Eckhardt v. Wilson, sT. R. (5) Fox \. Hanb lay, supm. Smit/e 140. V. Siokes, 1 East, 363. Smilli v. (2) Foxv. Hanbiirij,Cow\).A'i^. Oriell, ibiil. 568.; and see Rams- (3) Ibid. bottom v. Cator, 1 Star. 228. {^) Ramsbottomw. Lewis, I C&m]}. (6) Per Lord K., 1 E^st, .jGO. 279. S. P. Tliomason v. Frere^ Per Bayley J. 5 M. & S. 542. snpra; and sec Abel\. Sutton, sEsp. 108. 1 Camp. 2R1. note(b). s « 4 632 OF PARTNERS. [Ch. 15. Effect of once at Nisi Prius, that it was only (rood for a moiety. (1 ) It ruptcv. ^^^' ^^''^5 been more recently decided, that the circumstance of the solvent partner hwoing notice of the act of bankruptcy makes no difference in the case ; for where a solvent partner, knowing of the act of bankruptcy of his co-partner, pro- cured a debtor to the partnership to give his bill in part satisfaction of the debt, and then indorsed it to a creditor in payment of the residue of his demand on the partner- ship, — such a transaction was held good against the as- signees of the bankrupt partner. (2) In this case, certain principles were laid down by the Judges, which seem to throw great light on this subject, that was previously in- volved in no small degree of obscurity. It was observed by Lord Ellenborough, that though for future purposes the act of bankruptcy operates as a dissolution, so as to prevent the solvent partner from dealing with the partner- ship property to the same extent as if the partnership continued, yet that he has clearly a lien on the joint funds in his hands, in respect of all claims v^'hich were consum-' mate at the time of the bankruptcy : — and that, where the solvent partner applies part of those funds in satisfaction of such a claim, the assignees cannot bring an action against the person to whom such funds have been so transferred; at any rate, not until the partnership account is taken, and it is ascertained whether the assignees are ' entitled to recover a balance against the solvent partner. For to entertain such an action, his Lordship added, would be pregnant with all the inconveniences, that would attend an action upon an unliquidated account between partners. Mr. J. Bayley, too, in his judgment very for- cibly points out the many difficulties that would ensue, if the power of the solvent partner to dispose of the partner- ship effects (in payment of a partnership debt) ceased by the bankruptcy of the other partner ; and the present Lord *■■ (l) Whitwdly. Thompson^ \YA^\t. (2) Harvey v. Cr'vckett, 5 M. & ^2. S. 356. Sect. 1.] OF PARTNERS. 633 C. J. Abbott (who took a part in this decision) said, that if Effect of a solvent partner is not thus at liberty to apply the partner- ^^LL. ship funds, he might be ruined in the midst of abundance of property capable of paying all the debts ; and the cre- ditors, also, would be compelled to wait until such time as assignees are chosen, and it is their pleasure to make dis- tribution. It is difficult, however, to reconcile the following judg- Decisions ments of Lord Eldon with this doctrine of the Court of ^^ •'' King's Bench ; and, more especially, what he is reported to have said in one case(l), namely, that all transactions affecting the joint property are overreached by the prior act of bankruptcy of one of the partners. In the first of these cases, where a bill was filed by the assignees of a bankrupt partner for an injunction against a joint creditor, who had qf'ter the act of bankruptcy, though before the commission, attached the partnership goods in the Lord Mayor's Court, Lord Eldon granted the injunction — upon the principle, that a separate commission severs the joint- tenancy, and vests the bankrupt partner's share of the joint property in the assignees, by relation from the act of bankruptcy. (2) And the same order was made in another case of a similar description, where the joint creditor had even obtained judgment in the attachment (3) — his Lord- ship expressing his opinion, that if, after an execution against one partner, a commission of bankruptcy issues against him upon an act of bankruptcy antecedent to the execution executed, whatever may have been taken under the execution becomes by relation the property of his assignees, to be applied among all the joint creditors exactly as the ap- plication is made in bankruptcy. And he afterwards acted upon this opinion in a subsequent case, where joint effects had been taken in execution after an act of bankruptcy committed by one of the partners — in which he held, that (1) Barker v. Goodair, 11 Ves. (5) Duttonv. Mormon, 17Ves. •78. 193. 1 Rose, 21.5. (2) Ibid. 634- OF PARTNERS. [Cll. 15. Effect of the assignees were entitled to the property so seized (1); ruvtcu ^^^' '^^'' ^^^ partnership being put an end to the moment an act of bankruptcy was committed by one of the part- ners, a creditor could only take the interest of that partner subject to the partnership dealings. (2) With respect to these very opposite judgments in Bank- ruptcy and at Law, there is certainly one difference in the facts upon which they are founded ; but it does not seem to be very material for the purpose of the argument. In the cases decided at law, the creditor got possession of the pro- perty iioith the consent of the solvent partner ; in those de- cided in equity, possession was obtained iioithoid his cotisent, but still by due process of law, in satisfaction of a just debt. Where There is one case, however, which has been decided in a joint pro- ... . , . • i i party at- court or equity, not quite so much at variance witli the tiiched in decisions at law, and in which Sir W. Grant determined, Indies and ^^^^^ where a joint creditor of a partnership (principally separate carried on in the West Indies) had attached joint property sion in ' there, the assignees of one of the partners (who became England, bankrupt in England) were entitled only to the surplus of the property in the hands of the creditor after satisfaction of his joint debt; and this, upon the ground, that the West Indian solvent partners could not be controlled in the manage- ment of their trade, or restrained by any proceeding here, from paying and applying the partnership assets as they thought fit. (3) Where a A partner, it has been held, may have no interest in the partner property of the partnership, thoujjh he may be interested interested -^ -^ -^ ^ i ' n j in thepro- in xheprofits of the concern — Sir J. Mansfield saying, that Jits, but there was a clear distinction between being partners in not in the , , , • .... , . , , ,^ . properly, goods, and being jointly interested in adventure. (4-; A transfer of the property^ therefore, by such a partner (after ( 1 ) In re Wait, 1 Jac. & W. 605. (3) Brickwood v. Miller, 3 Meriv. (2) But see Hcydon v. Heydon, ^10. Salk. 59-2. contra. (4) Per Mansfield C.J. and Gibhs J. 5 Taunt. 79, 80. yCCt. 1.] OF PARTNERS. 635 the bankruptcy of the partner solely interested in such I'lff'cct of property) is, of course, void as against the assignees. (1) ,.""/' But, under a commission of bankruptcy, the property in such a case is, nevertheless, administered (as to the joint creditors) as belonging to all the partners. (2) If one partner embezzles part of the partnership effects Wliorcthe and becomes a bankrupt, his assignees can be in no better "''"'^''"I"^ r ' ft partner situation than the bankrupt himself, taking only such un- has em- divided share or interest as the bankrupt himself had, and ^"-'^^'^'.^ . . * part ot the subject to all the rights and liens of the other partner ; they joint pro- are, therefore, entitled only to the share of the balance re- P^''^v. maining after the partnership debts are paid, and after the deduction of the amount of the (3) embezzlement. The assignees of the bankrupt partner take by the as- Assignees signment all the interest, which the bankrupt himself was p^^j^^ . , , , . ' , bankrupt entitled to at the lime he became a bankrupt. Therefore, partner where the bankrupt partner had advanced part of his share ^"tjt}^^ ^^ of the expense of an adventure, and gave his notes for the interest remainder, which did not become due until after the issuing however f. , . . . I 1 1 1 1 1 uncertain, or the commission — it was held, that the solvent partners jn a joint could not (by discharging the notes) stand in his place, but adventure. that the assignees were entitled to his full share in the profits of the adventure — although the note creditors re- ceived only a dividend under the commission, and it was uncertain (at the time of the bankruptcy) whether the ad- venture would be attended with profit or loss. (4<) Where the solvent partners continued to carry on the Where the partnership trade with the capital, as constituted at the time solvent of the bankruptcy, — the assignees of the bankrupt partner continue were held entitled (beyond an account and distribution of the busi- the stock, &c.) to a participation of subsequent profits made (1) Meyer v. Sharpe, ibid. 2 Vcrn. 29,5. Goss v. Dufresnoy, (2) Ex parte Hunter, 2 Rose, Davies, 371. 582. (4) Smith v. De Sylva, Cowp. (5) Richardson v Gooding, 4(i9. 636 OF PARTNERS. [Ch.li Effect of bank- ruptcy. Rights of solvent partner as to the sur- plus. Effect of payment of divi- dend, as to solvent partner. Conse- quences of bankrupt partner embez- zling joint property. by the solvent partners, as far as the profits might have been produced by an application of such capital. (1) If there is a surplus under a separate commission against the bankrupt partner, the solvent partner may apply by petition for an account of such surplus, and for payment of his proportion of it. (2) The payment of a dividend, under a commission against one partner, raises a new assumpsit by the other, so as to deprive that other partner of the benefit of the statute of limitations. (3) Where a solvent partner had paid the other before his bankruptcy a sum of money to be applied in discharge of a joint debt, and the latter converted the money to his own use — and the solvent partner was, after the bankruptcy of the other, compelled to pay the whole debt to the creditor, — the bankrupt partner was held in this case (by reason of the fraud) not protected by his certificate, in respect of the share of the joint debt paid by his copartner (4) after the bankruptcy. This case, however, was decided before Sir Samuel Romilly's act; which first enabled a surety, paying money after the bankruptcy of the principal, to prove it as a debt under the commission. Therefore, if such a case can be considered as divested o^ fraud on the part of the bankrupt partner, and the solvent partner had an oppor- tunity of proving under the commission, the certificate would now operate as a discharge of the claim of the solvent partner. (1) Crawshay v. Collins, 15Ves. (3) Ex parte Dewdney, IsVes. 218. 499. (2) Ex parte Lanfear, 1 Rose, (4) Wright v. Hunter, 1 East, 442. 20.; and see ante, 612. Sect. 2.] OF PARTNERS. 637 Section II. Wfiat is JOINT, and tsohat separate, Property under a Joint or Separate Commission. When a separate commission issues against either one or Interest of more members of a partnership, all transactions aflPecting the *■^^ ^^ siffnGCS joint property have been said to be overreached by the act under a of bankruptcy of the bankrupt partner, that is, so far as separate that a joint creditor will not (as we have just seen) be sion. allowed afterwards to proceed against the joint effects by foreign attachment (1) — the assignees of the bankrupt partner taking all the separate property, and all the bank- rupt's interest in the joint property, and holding the latter as tenants in common with the solvent partner. The as- signees of the bankrupt partner, however, are not strictly partners with the solvent partner ; though a necessary com- munity of interest remains between them till the partnership affairs are thoroughly wound up, requiring that what was partnership property before, shall continue so for the pur- pose of a distribution among the partnership creditors, as well as of a division of the surplus in proportion to the respective interests of the partners. (2) And the arrangement of such interest will be made, not as the partner stood at the time of the commission (3), but of the act of bankruptcy. The right of the assignees, as to the joint property, has been said to be derived more from the rule of the common law, (as far as it respects trade between partners) than from any rule arising out of the bankrupt laws; and the interest which they take in it can only be made available, upon the balance of accounts between the partnership and the bank- rupt partner ; in stating which account enough must be left to cover partnership debts. (4) (1) Sad vide ante,page 631. etseq. (3) Ibid. C'i) 6 Ves. \2iS. (4) Field v. , 4 Ves.397. 638 OF PARTNERS. [Ch. 15. What joint, and what se- parate property. Their power as to the joint pro- perty. As to con- solidating joint and separate estates. When there is a an assign- ment by a retiring to a continu- ing part- ner. The assignees, therefore, under a separate commission are entitled to deal with the joint property, as the solvent partner himself might have dealt with it — that is to say, paying all the joint creditors equally as far as the joint pro- perty goes, and applying the surplus under all the equities subsisting between the partners. ( 1 ) Under special circum- stances, however, an injunction may be applied for by the solvent partner against the sale of the property by the as- signees, upon his offering to account (2) ; but this, it is apprehended, will only be granted where a sacrifice is about to be made of the property, or there is some irregu- larity in the sale ; or, where the solvent partner engages to pay over to the assignees the value of the share of the bankrupt partner in the property offered for sale. It is sometimes thought expedient to consolidate the joint and separate estates ; but the Lord Chancellor will not sanction such a measure, without a reference to the commissioners to inquire and report, whether such a pro- ceeding would be for the general benefit of the creditors. (3) The equities subsisting between partners involve the consideration of the effect of an assignment of partnership property by a retiring to a continuing partner — and, in what cases, any portion of the joint property of the partnership becomes (by such assignment) separate estate. This depends altogether upon the bona Jides of the transaction between the partners, and the non-interference of the joint creditors at the time of the transaction. The mere dissolution of a partnership, indeed, does no more than declare that the partnership is not to be carried on any further, except for the purpose of winding up the concerns ; and he, who has the actual possession of the joint property, has it (in that event) clothed with a trust for the other, to apply it in pay- ment of the joint debts. This will so far qualify the nature (1) Barker v. Goodair, llVes. 85. Uutton V. Morrison, 17 Vcs. 209. Hanhcy v. Garrett, 5 lire. 457. 1 Ves.jun. 256. (2) Al/en T. Kilhic, 4 Mad. 464. (.3) Ex parte Siriilf, 1 G. & J. 8eCl. 2.] OP PARTNERS. 639 of his possession, that the specific effects or debts will not ^Vfiat be considered to be solehj in his order and disposition, to '^"fjfgj! the prejudice of the claims of the other partner. But, if pfiraic upon a fair and open dissolution of a partnership, the V^^P^^- })artner retiring, either by deed or otherwise, bond Jide transfers his interest in the partnership effects to the con- tinuing partner — who afterwards carries on the trade and becomes a bankrupt before ail the joint creditors have been paid ; — in this case, thejoint creditors have no equity, either upon the partnership effects remaining in specie, or the outstanding debts. (1) Therefore, where an outgoing part- ner assigned by (Xi^itiS. his share of the stock to the continuing partners, and they and a surety covenanted that they would in due time discharge all the jiartnership debts, and in- demnify the outgoing partner — and six months after the dissolution, the continuing partners became bankrupt, and the outgoing partner was arrested by creditors of the old partnership ; — he was held, upon petition, not entitled to have the specific stock and debts of the old partnership applied in satisfaction of the creditors of that partnership, in prefeience to the creditors of the (2) new firm. In such a case, however, it is very easy for a retiring jiartner to pro- vide for his own indemnity, by assigning all the effects upon trust to pay the debts. (3) But, where a retiring partner assigned the partnership estate and effects to a continuing partner, in consideration of the continuing partner accepting certain bills of exchange — and afterwards the continuing partner having refused to accept the bills, (l) Ex parte Ruffin, G Ves. 1 19. thought also, there was a material Ex parte Williams, 11 Ves. 3. Ex distinction in that case; inasmuch parte Sloio, C. B. L. 509. ; and see as the assignment there was, not ex parte Harris, 1 Mad. 5S3. There by one partner to the otiier two, is an old case before Lord Hard- but only to one of the other two. wicke, (ex parte Burnaby, 1 C. B. It does not, moreover, appear in L. 246.) which seems somewhat at that case, that the assigning part- variance with the doctrine in the ncr had actually retired from the text. It is not, however, (as Lord business. Eldon observed in ex \ydrte Riijtiji) (-2) Ex parte Felt, 10 Ves. 547. very intelligible ; and his Lordship (3) Ibid. §40 OF PARTNERS. [Ch. IS. What an injunction was granted against him, and a receiver ap- "u^katsc- pointed upon a bill filed by the retiring partner; — upon 2)aratc the subsequent bankruptcy of the continuing partner, it p ropc) y . ^^g held, that the previous interference of the court re- stored the property to its original character as joint pro- perty, unless the plaintiff in equity had (by his conduct between the time of his obtaining the injunction and the bankruptcy) rendered nugatory the eflfect of such in- terference. (1) Where the Upon a dissolution of partnership between A. and B., joint pro- jj. ^^g agreed, that until A. was provided for, B. should in the pos- continue the business, and allow him a third of the profits : session of g^ afterwards formed a partnership with C, and carried the con- ., ir '-rii tinning into it the stock of A. and B., and a commission of bank- partner. j.ypj. issued against B. and C. ; — it was held, under these circumstances, that the joint property of A. and B. having been permitted by A. to become property visible to all the world of the new partnership of B. and C, the share of B. in the residue of the joint effects was the separate pro- perty of B., and subject to the payment of his separate creditors. (2) When new Where new partners, however, are taken into a trade — are taken ^'^^ ^^ ^^ agreed that the stock, and the debts due to the in, as to old firm, should become the capital of the new partnership, the new ° ^'^^ ^^^^ ^^® "^^ ^^Vii should take upon itself the payment capital. of the debts of the old firm — and the new partnership be- came bankrupt ; — in this case, the joint effects of the new firm were held liable to the joint creditors of the old firm, as well as to the joint creditors of the new firm. (3) Assign- But, though partners may bona Jide agree to dissolve ment will ^jjgjj. partnership, and that what was joint property before efFect, un- shall thenceforth become the separate property of him who less ac- continues the business, vet such agreement will have no companied ' •' ^ ( 1 ) Ex parte Rowlandson, 1 Rose, (3) Ex parte Bingham, 1 C. B. L. 516, 2 Ves. & B. 172. 538. Ex parte C7oM;e«, 2 Bro. 595. (2) Ex i^?Ltie Barrow, 2 Rose, iC.B. L. 250. In re Staples, ihiA. 252. 538. Ex parte Peck, 6 Ves. 602. Sect. 2.] or partners. tHl effect, unless possession of the property be given pursuant to W^''^^ 1 i 1 -^ 1 • /- 7 • 1 joint, and the contract. And, it there is any Jraud in the trans- ^^y^^^ g^_ action — as if one partner retires when the partnership is pa?a^e really insolvent, and (before the partnership debts are dis- ^ ""P^' ^ ' charged) the continuing partners pay to him large sums of with pos- money on account of his share in the business, — such ' ^ .... Where payments are fraudulent and void against the joint ere- payments ditors. (1) But the mere circumstance of the partnership to retiring being insolvent, at the time of the dissolution of it by the tvaudulent. retirement of one partner, will not alone be sufficient to invalidate a dissolution fairly made, however it may affect his rights to his share of the property, as against the then joint creditors. (2) If real estates are purchased with the partnership funds, Where though conveyed only to one partner, they are nevertheless pm-chased" partnership property. But if estates are purchased with with part- the partnership fund, and conveyed to one partner under a "^''^"P specific agreement that the estates shall be his, and that he shall be debtor for the money to the partnership, the estates are in this case his separate property. (3) Where one of two partners purchased ships with the As to ships partnership property — and upon a discovery of the trans- ^l^/t of action by the other partner, the ships were brought into partner- the partnership account, and the disbursements paid out f P . J^, ^' of the partnership funds, but the registei's continued un- tered in altered, for the purpose of enabling; the other partner to "^'"^ ^^ 1 1 • 1 • I 1 r 1- ^"^ part- evade penalties, to which (as a member or parliament) he ner. would have been liable on account of the ships being em- ployed in the service of government — and upon his death a commission of bankrupt was issued against the partner, in whose name the ships were registered ; — it was held, (l) Anderson v. Maltby, 4 Bro. the assignee. Whitivellx. Thomp- 423. sVes. jun. 244. A fraudulent son, lEsp. 68. 72.j and see ante, assignment of property by one page 74. partner to another, though an act (2) Ex parte Peake, 1 Mad. 353. of bankruptcy in the assignor, does (3) Smith v. Smith, 5 Ves. !89. not, as we have before had occa- Lyster v. Dollond, 1 Ves. jun. 435. sion to observe, amount to such in Thornton v. Dixon, 3 Bro. 199. T T 642 OF PARTNERS. [Ch. 15. What jo'nl, and ivliai se- parate proi^erty. Whether registry conclusive proof of ownership. Insurance of interest of joint owner. Where three part- ners sell their goods elsewhere in the name of two. Liability of joint estate to expenses. When property considered as joint property. uTuler these circumstances, that the ships were distributable as the separate property (l) of the bankrupt partner. This case was decided with reference to the policy of the then registry acts, the 26G. 3. c. 60. and S^ G. 3. c. 68.; and other cases also, under those acts, have decided that the registry of a ship was conclusive evidence of property, even against the claim of creditors upon a joint pur- chase (2), and various acts of apparent ownership. In a subsequent case, however, under a commission against two partners, it has been held, that where ships are pur- chased or built, and paid for out of the partnership funds, though they are registered in the name of one of the partners, yet, being in the ordering and disposition of both, the ships form part of ihe joint estate. (3) If one joint owner of a ship insures his share or interest, and a loss happens, the money recovered upon the insurance will be separate property. (4) Where three partners were manufacturers in Lancashire, and sold their goods in the name of ivoo only, and a credit was acquired by them, as three in Lancashire, and two in London, — the distribution of their property in Bankruptcy was held to be, where the order and disposition was at the time of the bankruptcy. (5) Whatever expense assignees under a separate com- mission have been put to in getting in the joint estate, must be reimbursed out of the joint estate. (6) Although the property of a partnership be only in 07ie or more members of it, with an interest in the profits merely in the others, — yet, in Bankruptcy, the property is ad- ministered, with respect to the claims of the joint creditors, as belonging to all the partners. (7) (1) Curtis V. Perry, 6 Ves. 739. (2) Camden v. Anderson, 3 T. R. 709. Ex parte Yallop, 15 Ves. 60. Ex parte Hojig/iton. Ex parte Gribble, 17 Ves. 251. 1 Rose, 177, (3) Ex parte Burn, 2 Jac, & W. 378.; and see ante, 421. (4) Ex parte Terry, 5 Ves. 575. Ex parte Brown, 6 Ves. 15G. (5) In re Shakeshqft, cit. 6 Ves. 747. (6) Ex parte Rutherford, iRosc, 201. (7) Ex parte Hunter, 2 Rose, 382. Sect. 3.] OF PARTNERS. 643 Section III. What is a joint, and 'what a separate, Debt. A partner, dealing in the name of the partnership, may "When one by simple contract bind his copartners without their express P^''t"fi' assent (1); and this even in a matter not reJatmg to the his co- partnership, provided the person, with whom such partner Partners. deals, has no notice that he is dealing on his separate account. But, if it is manifest to a person advancing money to an individual partner, that it is upon his separate account (and therefore against good faith that such partner should pledge the partnership), it is then incumbent on the person dealing with him to shew, that the partner had some autho- rity to bind the partnership (2) ; otherwise the firm will not be liable. Therefore in a recent case, where one partner gave an acceptance in the name of the firm, in satisfaction of his own private debt, and isoithout the knowledge of his co-partner, the Vice- Chancellor held that such an accept- ance did not bind the joint estate. (3) The authority, indeed, of one partner in drawing or Authority accepting bills is only an implied authority, and may be j-? ^^cept rebutted by express previous notice to the party taking the be rescind- bill, that the other partner would not be liable for it, — even ^^ ^^ "°" . tice of the though the partner giving the bill represented to the holder, other that the money (advanced by him as a consideration for partner, the bill) was to be applied to partnership purposes — and though the greater part was in fact so applied. (4) Where the other partners, however, are in any way privy to the transaction, and permit him to go on with it, or to re- peat it, without expressing any disapprobation, they will then be considered to have approved of the act of the (1) Ex parte Gardome, 1 5 Yes. (3) Ex parte Goulding, Sittings 286. after Trinity Term, 1826. (2) Ex parte Peele, 6 Ves. 602. (4) Lord Galway v. Mathew, Arden v. Sharpe, 2 Esp. 524. 1 Camp. 403. 10 East, 264. T T 2 644 OF PARTNERS. [Ch. IJ What a Joint, or separate debt. When mis- application of trust money by one part- ner- Where a new part- ner bound by an en- gagement of the firm for an old debt. Where money ap- plied for partner- ship pur- poses, with the privity partner so pledging the partnership name ; and such sub- sequent approbation will be equivalent to previous con- sent. (1) And the act of one partner, done with reference to business transacted by the firm, will bind all the partners, although it be out of the regular course of trade, and be contrary to an express arrangement amongst them- selves ; because it is within the scope of his authority. (2) If one of several partners apply trust property, isoith the privity of the other partners, to the purposes of the partner- ship, the debt may be proved either against the joint estate, or the separate estate of the partner so misapplying the money. (3) But if the other partners have no knovoledge whatever that the money is tt'ust money, then there can be no proof against the joint estate. (4) Where partners, who have previously contracted debts, take a fresh person into partnership, and give paper of the new firm to a creditor in payment of a previous debt, such transaction (without evidence of the assent of the new partner) will not be binding upon him (5), provided the party taking the security had either actual knowledge, or by necessary inference must have known, that the pay- ment was without the consent of the new partner. But, where the creditor receives it hondjide without such know- ledge at the time, no subsequently acquired knowledge, of the misconduct of the partner giving the security, can dis- affirm the transaction, (6) The joint responsibility of partners cannot be established, after the separate liability of a single partner was originally contemplated. (7) But in a case, where a bill was drawn by one of the partners upon the partnership firm with the privity of the other partner, which, though not accepted, (1) Ex parte BoTibonus, 8 Ves. 541. (2) Sandilands v. Marsh, 2 B. & A. 673. (3) Ex parte Watson, 2 Ves. & B. 414. Smith V. Jameson, 5 T.R. 601. (4) Ex parte Apsey, 3 Bro. 265. Ex parte Heaton, Buck, 38 C. (5) Sherriff\. Wilks, 1 East, 48. Hope V. Cust, cit. ibid. (6) Swan V. Steele, 7 East, 210. Ridley v. Taylor, 13 East, 175. (7) Fmly v. Lye, 1 5 East, 7. Sect. 3.] OP PARTNERS. 645 was discounted by the payee, and the proceeds applied to What a the use of the partnership, — it was held, that the payee '^^'"^' 7* might sue both partners for the money, although they had debt, incurred no joint liability on the bill. (1) And the same, ^ ,. , where a holder had discounted bills drawn by one partner partners, and indorsed by another, and the money received by means of the bills had been applied for partnership purposes. (2) Where a, joint creditor of a partnership takes the separate As to tak- security of one of the partners, the others are thereby dis- '"° ^^P"" Tdtc SCCU- charged (3), unless their liability be expressly reserved. (4) rity of one But mere information to a creditor, that a partnership was Partner for dissolved, and that one of the partners had taken upon debt, himself to discharge the creditor's debt, was held not to bar him of his right against the other partner, notwith- standing even the creditor might expressly agree to exonerate the other partner from all responsibility ; for an agreement to abandon a legal claim, unless there be a consideration shewn, is a mere rmd%im pactum ; and the arrangement between the partners will not deprive the creditor of his original claim, unless he is a party to it himself, and it amounts to satisfaction. (5) In the case of a dormant partner — when the ostensible When a partner accepts bills in his own name, though the creditor ^o""'"^"!^ .11-1 » . . partner has no notice that there is a dormant partner at the time he liable. takes the bills, this will not be a discharge of the dormant partner, but he will become liable the moment he is known to the creditor. (6) Wherever, indeed, there is a dormant partner, and the fact was unknown to the creditor, it is an invariable rule in Bankruptcy, that the creditor has an option to consider his debt as either (7) joint or separate. (1) Denton v. Rodie, 5 Camp. (6) Robinson v. Wilkinson, 3 Pri. 493. 638. (2) Ex parte BolUho,Back,'[00. (7) Ex parte Hamper, 17 Ves. Is) Evans V. Drmmnond, 4 Esp. 403. Ex parte Alaihews, 18 Ves. 89. Reedv White, 5 Eap. 122. 125. Ex parte Hodg/dnson, IsYes. (4) Bedford v. Deakin, 2 B.& A. 294. Ex parte Norfolk, ibid. 458.; 210. 8,nd see Binford v. Dommett, 4 Ves, (5) Lodge V. Dicas, 3 B. & A. 756. 611, T T 3 S'i^G OF PARTNERS. [Ch. 15. What a But it has been decided in the Common Pleas (a decision 'I'eparate ^vhich certainly appears far less reasonable), that a de- debt. fendant in an action may plead in abatement, that he has a ft - jj^_ dormant partner; though the plaintiff had even no means ing him in of knowing of the partnership, and could not have proved an action. ^^^ |,,^^.| |^g joined the secret partner in the action (1) ; thus enabling the defendant to take advantage of his own wrong, and impede the plaintiff in the recovery of a just debt : for, though a plea in abatement does not entirely bar the plaintiff's claim, but merely gives him a better writ, it nevertheless occasions him considerable delay and expense — and this without any default of his own. Section IV. Of Proof hy joint Creditors against the joint and separate Estates. The creditors of a partnership, who are denominated in Bankruptcy the joint creditors, are entitled to a distribution of the joint or partnership estate, without the participation of the separate creditors of any individual partner, until How joint the joint creditors have received 20s. in the pound. And, rateest^^es ^^ the joint or partnership estate is, in the first place, to be to be ap- applied to pay the joint or partnership debts, so in like plied. manner the separate estate of each partner must be first applied to pay all his separate debts. It is proposed, in this section, to confine our attention to the rights of proof by a joint creditor against the joint and separate estates, either where a joint commission is issued against all the partners, — or where there are separate commissions, or a separate commission, against all or any of the partners. The rights of the joint, as well as of the separate creditors, are in each of these cases settled and arranged by the (1) Dubois V. Ludcrt, 1 Marsh, 246, Sect. 4.] OF PARTNERS. 647 general order of Lord Loughborough ( 1 ), which has been Proof by JOINT dilors. the rule commonly referred to for determining the right ^'^^^^ ^'^' of proof against the joint and separate estates. By this order it is, amongst other thinu;s, directed, that Lord tlie commissioners cause distinct accounts to be kept of the ^ ^"^ . °" joint estate, and also of the separate estate or estates ; and der as to in case there shall be any overplus of the separate estate or '^^^P'"g "^ '^ , ^ accounts estates, after all the separate creditors shall be paid and distinct. satisfied their whole demands, it shall be carried to the account of the joint estate, and be applied in or towards satisfaction of the joint debts. (2) In all commissions, too, against one or more of the As to partners of a firm, it is now enacted by the 62d section of pi"oo^by tne new statute, that SL'jotnt creditor shall be entitled to ditor un- prove his debt under each commission — but for the purpose '^^^' '^^P^' only of voting in the choice of assignees, and of assenting missions. to, or dissenting from, the certificate. (3) And he is de7 clared to be not entitled to any dividend out of the separate estate, until all the separate creditors shall have received the full amount of their respective debts, unless such cre- ditor shall be the petitioning creditor in a commission against one member of a firm ; in which last case, indeed, he is then considered as a separate creditor. (4) This enactment accords in some measure with the old rule, Rule when as to the right of proof against the joint and separate estates, there are ° ^ ... no joint That rule, though acted upon in principle by Lord Hard- effects. wicke, was abandoned on many occasions by Lord Thurlow, who, when there were no joint effects, permitted joint cre- ditors to prove under separate commissions, and to receive dividends rateably with the separate creditors. (5) And in (1) 8th March, 1794. certificate; but they were not per- (2) And see Ex parte Baudier, uiitted to vote in the choice of 1 Atk. 98. Ex parte Oldknow, 1 C. assignees. B, L. 235. Ex parte Cobham, ibid. (4) Ex parte Hall, 9 Ves. 549. 254. Ex parte Acker man, 14 Ves. 604. (5) The former practice was to Ex parte De Tastet, 1 Rose, 10. allow the joint creditors, upon pe- 17 Ves. 247. tition, to prove for the purpose of (5) Ex parte Haydon, 1 C. B. L. assenting to, or dissenting from, the 234. T T 4 648 OF PARTNERS. [Ch. 15. Proof hy other cases (without adverting to the consideration whether JOINT ae- jj^gj^.g ^.gj-e any joint effects or not) when the justice of the case required it, he allowed the same proof, — declaring, that debts, whether sole or joint, ought to be paid out of a bankrupt's estate; which, in the case of a partnership, he observed, was composed of his separate estate, and of his moiety of the (1) joint estate. And the principle he acted upon was this — that a joint creditor should not be de- prived by a commission of bankruptcy of the rights, which he possessed at law against the separate estates, as well as against the joint estate. For, if a joint creditor of several partners had brought an action against all, he might have taken out separate executions against each ; and, therefore, a commission of bankruptcy — being an execution for all the creditors, and preventing him from suing out his exe- cution at law with effect — ought to be considered (at least) as beneficial an execution for /«"«?, as for any other creditor of the bankrupt. But this principle was entirely departed from by Lord Loughborough, whose decision has been subsequently followed by Lord Eldon ; and it is now a settled rule, that a joint creditor is not entitled to receive dividends from a separate estate — if there is any joint fund (however small in amount) or any solvent partner — until the separate creditors are paid 20s. in the pound. (2) If the joint property, however, be of such a nature and in such a situation, that any attempt to bring it within the reach of the joint creditors must be deemed a des* perate, or (in point of expense) an unwarrantable attempt, — such a case, it has been admitted, would authorise a de- parture from the rule, on the ground that there would then be in truth no joint property. (3) And so, where the only joint effects were such as were pledged for more than (1) Ex parte Hodgson, 2 Bro. .5. parte Taift, 16 Ves. 193. Ex parte Ex parte Pnge, ilnd. 119. Ex Fea/ce, 2 Rose, 54. In re Lee, parte Fimtum, ibid. 120, Ex parte ibid. note. Coj^land, 1 C. B. L. 2.'56. (5) Ex parte Pcakc, 2 Rose, 54. (2) Ex parte Clay, 6 Ves. 813. per Lord Eldon. Ex parte Sadler, IsV'^es. 52. Ex Sect. 4.] OF PARTNERS. 649 their amount ; for in this case it was likewise considered, Proof by that there were no joint effects under the administration of ^/^/J^J/*^^' the assignees to distribute. (1) (1) Ex parte Hill, 2 N. R. 1 91 a. The exclusion, in Bankruptcy, of joint creditors from a share of the separate property, bears no analogy to proceedings at law, which give a joint creditor the right to coa)e (under an execution) at once against the separate estate of his joint debtor, as well as against the joint estate, until he has satisfied his debt. The propriety of such ex- clusion, too, seems somewhat diffi- cult to be supported ; for, as SirW. Evans has justly observed, (Evans's Bankrupt Stat. 211.,'! it should be recollected, that the credit obtained by a partnership is often founded, not so much upon a consideration of the capital, which may be sup- posed to be invested in the con- cern, as upon the known personal opulence of the several individuals who compose it. And the above rule, of not permitting joint credi- tors to prove against the separate estate, if there is any portion of joint property, however small the amount, it must be confessed, is often inconsistent in its operation, and productive of great injustice when carried to the extent to which it sometimes is. For in- stance, if the joint effects amount only to 1/. lis. 6d, (Ex parte Peake, 2 Rose, 54.) the joint credi- tors are refused permission to take dividends under any of the separate estates before the separate credi- tors are paid 2Qs. in the pound; whilst, if there should happen (for- tunately for the joint creditor) to be not a farthing of joint pro- perty, he is then permitted to receive from every one of the separate estates an equal dividend with every separate creditor. Mr. Christian, in his Treatise on tlie former Bankrupt Laws (vol. ii. 36.), as well as Sir William Evans in his letter to Sir Samuel Romiliy, very ably demonstrate the inconsistency of the rule, and the absurd conse- quences which follow from too strict an adherence to it. As sup- pose a case, where there are five partners, each having a separate estate of 20,eoo/., and separate debts to the same amount, and the joint debts amount to 100,000/. — if there should be only 10/. worth of joint property, this would be all that could be divided among the joint creditors until the separate credi- tors are paid in full ; a joint cre- ditor of 20,000/. would, therefore, not get a farthing in the pound, while the separate creditor to the same amount would receive the whole of his debt. On the other hand, if there should be no joint estate, then each joint creditor would be admitted to prove against every separate estate, and would accordingly receive 5s. 4d. in the pound from each separate estate, amounting to \ 6,6661. 185. 4d. in the whole — while each separate creditor would receive only 5s. 4d. in the pound from one estate, amounting but to 3533/. 6s. 8d. So that from the mere circum- stance of there being no joint effects, the joint creditor would get five sixths, and the separate creditors but one sixth of their debts. A more equitable mode of dis- tribution is suggested by Mr. Chris- tian and Sir\VilliamEvans(Evans's Bankrupt Statutes, 211.); namely, that as each partner ought to pay his own private debts, and his pro- per share of the joint debts, — and the effects he has to pay withal are his separate estate, and his share of the joint estate ; — every joint creditor ought, therefore, to be al- 650 OF PARTNERS. [Ch. 15. Proof by JOINT cre- ditors. When joint pro- perty is received after proof against separate estate. Where there is a solvent partner. Where, under special circumstances, an order is ob- tained by the joint creditors to prove against separate estates — and they prove against one or more of them ex- clusively of the rest — if any joint property is afterwards realized, the estates so burdened by the proof arc entitled to be reimbursed out of such joint property, to the extent of the pi'oofs made against them, before such joint property is divisible between the separate estates. (1) If there is a solvent 'partner^ though there may be no joint property, the joint creditor is in this case not permitted to prove under a separate commission against the bankrupt partner, on the ground that this would materially affect the interests of the separate creditors. (2) For, as Lord Loughborough observed, if after so proving his debt, a joint creditor was to receive a dividend of IO5. in the pound, the assignees of the bankrupt partner would have no claim against the solvent one ; as the solvent partner would in that case be entitled to set-off, as against them, the other moiety of the debt, which he himself might have paid to the creditor. But, in case the creditor first sues the solvent partner, and recovers the whole debt against him, the latter could then come in as a separate creditor lowed to prove a just portion of his debt under each partner's estate, and take a dividend with the sepa- rate creditors from the aggregate of the separate estate, and the share of the joint. But since every partner must not only pay his own share, but is a surety for the other partners — accordingly, if there is a surplus in any instance of this ag- gregate fund, then, that the surplus ought to be applied to the benefit of the joint creditors, to make up the deficiency which they may ex- perience by the dividends of the other partners. Whatever system, however, of proof or distribution might be adopted, it is submitted, that the Lord Chancellor possesses an equitable jurisdiction in Bank- ruptcy quite sufficient to enable him to depart occasionally from any general rule, convenient as it may be in ordinary practice, when too rigorous an observance of it would work manifest absurdity and injustice. And as several exceptions and departures from the above rule have been already admitted to pre- vail, (only one of which, it may be remarked in passing, is noticed in the 62d section of the new act,) a still further relaxation of it on the principle acted on by LordThurlow, might, it is apprehended, be attend- ed with considerable advantage. (1) Ex parte Willock, 2 Kose, .392. (2) Ex parte Kensington, 14Ves. 447. Ex parte Kendall, ibid. 449. Sect. 4.] OF PARTNERS. 651 of the bankrupt, to the amount only of a moiety of the Proof by debt — for he could have recovered only a moiety of the ^•^^^_j debt agahist his co-partner if he had continued solvent ; — a circumstance which, it will be readily perceived, occasions a great difference in the fund divisible amongst the separate creditors. (1) Where, however, the solvent partner is abroad and not Where likely to return, and there is no joint property — a ioint ere- solvent V . , -HI -1 1 partner ditor, m such a case, will be permitted to prove under a abroad, or separate commission for the purpose of receiving divi- where noiiG (it dends (2) ; and where there is no solvent partner at the time the time of when the joint creditor applies to prove, such proof will be ?^''o use. conceals it. (6) Judgment of outlawry against two of three joint debtors Judgment does not make the debt a separate one, as against the ^y ao-ainst' third debtor; and it cannot be proved (7) under his sepa- some of . • • the part- rate commission. ^^^^ (1) Ex parte Earned, 1 G. & J. (4) Ex parte Taitt, 16 Ves. 193. 369. (5) Keble v. Thompson, 3 Bro. (2) Ex parte Geller, 2 Mad. 262. ill. (3) Ex parte Chandler, 9 Ves. 35. (6) Ex parte Smith, 1 G. & J. 74. Ex parte Hubbard, 13 Ves. 424. Ex (7) Ex parte Dunlop, Buck, 253. parte More and Ex parte Thomas, cit. ibid. 654 OF PARTNERS. [Cll. 15. Section V. Of Proof by separate Creditors wider a joint Commission. The separate creditors under a joint commission are not permitted to come in directly w^on the joint estate; they may, however, prove for tlie purpose of assenting to or dissenting from the certificate, but have no right to receive dividends of the joint property until all the joint creditors Limited have received 205. in the pound. The rights of the sepa- right ot j,g|.g creditors are (like those of the ioint creditors which we have considered m the preceding section) more parti- cularly defined by the general order of Lord Lough- borough (1) before referred to; by which it is directed, that in a joint commission against two or more bankrupts the commissioners may admit the proof (2) of any separate debts of any one or more of such bankrupts, and such separate creditors shall be at liberty to assent to or dissent from the allowance of the ce^'tificate of the bankrupt, of Accounts whom they shall be separate creditors. Distinct accounts to be taken ^^e also ordered to be kept of the separate estates, as different well as of the joint estate; and what shall be found to estates. belong to the separate estates is to be applied in the first place towards satisfaction of the debts of the respective Overplus separate creditors. And in case there shall be any over- of joint plus of the ioint estate after all the ioint creditors shall be estate to . go to the P^^d ^^^ satisfied their whole demands, the respective separate shares of the bankrupts in such overplus are to be carried to the account of their respective separate estates, and be applied towards satisfaction of their respective separate debts. This arrangement w^as formerly made upon peti- (1) 8th March, 1794. under the joint commission, they (2) The practice was formerly paying contribution to the charge to let in the separate creditors, of it. 1 C. B. L. 232. upon petition, to prove their debts Sect. 5.] OF PARTNERS. 655 tion in each particular case; but it is now, in pursuance of Proof by this order, done by the commissioners. The costs of creditors. taking the accounts are directed to be paid out of the separate estates, and to be settled by the commissioners in case the parties differ about them. Under this order, where a firm of four persons became Proof may bankrupt, three of whom carried on a distinct business ^^ "'^"^ ^ ' ^ without a under a different firm, the creditors of the latter firm were special held entitled to prove against the distinct estate of the °''"^''- three, without any special order; such a case being within the meaning, though not the words, of the general order. (1) Where two partners agreed to borrow a sum of money Securities for the use of the partnership, but one of them only gave oJe paj.^. a bond for securing the payment — which was, however, ner, for witnessed by the other partner — and the money was after- "|^"fj ^^' wards entered in the cash-book of the partnership, — Lord partner- King, upon petition, directed the obligee in the bond to be f P"^" admitted a creditor against the joint estate. (2) So, where a creditor lent money to two of the members of a partner- ship upon the joint notes of the two partners, and upon their separate bonds, — and the whole of the money was applied to the use of the partnership (which consisted of them and several others) and the partners all agreed to con- solidate the separate debts, and to consider them as the debts of the entire partnership, — Lord Thurlow, upon petition, permitted the creditor to prove the whole amount against the joint estate of the partnership. (3) But where a sole trader became indebted by bond, and then took in a nominal partner, and some time afterwards a joint com- mission was issued, — the separate creditor in this case was not permitted to prove against the joint estate. If, What is an however, any interest had been paid upon the bond by adoption both partners, they would then have been considered to rate debt have adopted the debt, and the partnership would have ^y *'^^ ^ '41 partner- (l) Ex parte Worthington,5MRd. (2) Ex parte Bnnvii, 1 Atk. 225. ^ '^* 26. {5) Ex parte C/owex, 2 Bro, 595. 656 OF PARTNERS. [Ch. IJ Proof by SEPARATE creditors. As to trust money ap- plied by one part- ner to partner- ship pur- poses. been liable to it. (1) But where A., being indebted to several persons, entered into partnership with B., and brought his stock in trade into the partnership — and by the articles between them it was agreed that the joint trade should pay the creditors of A. named in a schedule, — Lord Eldon held, that a separate creditor of A. (though named in the schedule) did not, in the absence of all evidence of any assent on his part to such agreement, become a joint creditor of A. and B., and could not, therefore, prove against their joint estate. (2) If one partner (being a trustee) brings trust money into the trade unthout the Jawwledge of his co-partner, it can- not be proved as a joint debt ; for, though the partner abuses his trust by advancing the money to the partner- ship, it will not raise a contract between the partnership and the cestui que trust. (3) Neither can money borrowed by one partner to pay for an estate, but applied by him to pay partnership debts, be proved by the lender against the joint estate. (4) But where one of two partners applied trust money for the purposes of the trade, mth the privity of the other partner, both in that case were held liable to make good the trust money ; and though they afterwards dissolved their partnership, and the partnership effects were assigned over to the first, who took on him the pay- ment of the debts, this was held to be no discharge of the other partner. (5) So, where one of three partners died intestate, leaving a widow and infant children — and his widow administered, and agreed with the surviving part- ners that her late husband's share of the partnership pro- perty should continue in the firm (of which she constituted one with them) for a term of years, and the firm became bankrupt, — Lord Eldon held, that though the admi- nistratrix committed a breach of trust by continuing the (1) Ex parte Jackson, 1 Ves. jun. (4) Ex parte Wheatley, 1 C.B.L. 131. 537. (2) Exparte^riZ/iflfre*, lBuck,l,3. (5) Smith v. Jameson, 5 T. R. (3) Ex parte Apsey, 5 Bro. 265. 601. ; and see ante, G44. Sect. 6.] OF PARTNERS. 657 money in the trade, yet as the partners hicw that a certain Proof by proportion of the property belonged to the children, they creditors. held the money as debtors to the children, and as if it had been placed with them by way of direct loan ; and that though the children might have proved against the sepa- rate estate of their mother (if it had been for their benefit to do so), they might equally prove against the partners, who had possessed themselves of the property of the infants under circumstances raising a clear assumpsit. ( 1 ) And indeed generally, when any partner (being a trustee of funds) makes use of them for partnership purposes with the kno'-dcledge of the other partners, the cestui que trusts may prove against the joint estate. (2) Where a broker insured with an luiderwriter, who Where underwrote separately but had partners — and the broker J.°"^^ ^°^' kept an account with the partnership, — the Court held, hibited by that the proof could not be made against the joint estate '^^' pi'oof / • -1 ^ 1 • 1 • 1 1 -1 • 1 1 , cannot be (an msurance with a partnership being then prohibited by the made 6 G.l. c. 18. (3) ) ; but the debt was ordered to be proved against the against the separate estate. (4) estate. Section VL Of Proof hi) Creditors holding joint and several Securities ; and herein of the Creditor's Election to prove agai?ist the Joint or separate Estates. A creditor, who has a joint and several security, may Joint and come in either against the joi?it, or the separate, estates ; ^^^^ral but he must make his election, for he cannot prove must elect against both estates at the same time. And this accords against . . which with the well known rule of law as to the right of action estate he will prove (1) Ex parte Watson, 2 Ves. & lately repealed by the 5 G. 4. B. 414. c. 114. (2) Ex parte i/ea/oH, Buck, 386. (4) Ex [tarte Angerstei7i, 1 Bro. (■5) This restriction has been 399. Ex parte Lee, ibid. 400. u u 658 OF PARTNERS. [Ch. 15. Election of proof. Where a creditor has no notice of a dormant partner. Bond by mistake not made joint and several. When the election must be made. of a joint and several creditor ; viz. where several obligors are jointly and severally bound, the obligee must either sue them ail jointly, or each of them separately, — but he is not allowed to do both. (1) Where also the creditor has no notice that the bankrupt has a dormant partner, he may (as we have before seen (2)) make his election to come in, either as a joint or separate creditor. (3) So, where a creditor had a ^0/72/ bo?id of two partners, which by mistake was omitted to be made Joint and several, and there ap- peared to have been a clear intention of the parties that the liability should be several, as well as joint, — the cre- ditor (under a joint commission issued against the parties) was permitted to prove the bond against the separate estate of either partner. (4) But, notwithstanding a creditor is thus put to his election — yet, after having done so, if the other estate should leave a surplus beyond the payment of its own debts he may then come in for a share of such surplus in right of such part of his debt as remains un- satisfied (5); though, after electing to go against the Joint estate, he has no claim of preference to the other joint creditors upon the surplus of the separate estate. (6) The creditor, before he elects, is entitled to a reasonable time (7) to examine into the accounts of the two estates. He also has, under particular circumstances, been permitted to prove against both estates, and defer his election till a dividend is declared (8); and even where he has received a dividend upon one estate, he has been allowed to change his proof upon refunding the dividend received. (9) But, (1) iSaund, 15.5. n.l. ibid. 291 e. Bac. Ab. Obligation, D. 4. Poph. 161. 2 Burr. 1290. 2Vin. Ab. 68. pi. 7. (2) Ante, 645. (3) Ex parte Hodgkinson, 1 9 Ves. 294. (4) In re Bate, 3 Ves. 400. In re Freeman, ibid. 401. note. (5) Ex parte Roivlandso7i, 3 P. Wms. 405. Ex parte Pa^-menter, cit. 1 Atk. 99. Ex parte Banks, 1 Atk. 106. Ex parte Bond, ibid. 98. Ex parte Blankenhagen, 1 C. B. L. 249. Ex parte Hay, 15 Ves. 4. Ex parte Masson, 1 Rose, 1 59. (6) Ex parte Bevan, 10 Ves. 107. (7) Ex parte Butliriy 1 C. B. L. 250. (8) 1 C. B. L. 250. (9) Ex parte Rowlandson, 3 P. Wms. 409. Ex parte Bond, 1 Atk. 98. Ex parte Bentley, 2 Cox, 218. Ex parte Bolton, 2 Rose, 389. Sect. 6.] OF PARTNEn.s. G,59 In one case the late Vice-Chancellor held, that the creditor Election was bound to make his election before a dividend is de- ' ^ P^'Q'^f- clared of the estate against which he has already proved (1) ; but Lord Eldon, upon appeal, decided the contrary. (2) Though if a dividend has been made upon the other estate against v>'hich he seeks to prove, the Court will not permit that dividend to be disturbed by reason of such change of proof. (3) But, if the creditor has done any act in the character in When ere which he has already proved, he will in general be con- S'*T j*!"" sidered to have made a conclusive election. As, where he proof al- had signed the certificate as a joint creditor, he was holden '"^^^^ not entitled afterwards to alter his proof (4-) ; and so, where he was o. partij to a petition in the character of a joint cre- ditor, the late Vice-Chancellor appeared to think, that that was an objection to the transfer of proof. (5) Lord Eldon, however, held, upon appeal, that he was not concluded by this circumstance. (6) And where a debt was due to bankers on the balance of account, and part was covered by the joint promissory notes of the bankrupts, and the whole by a mortgage of some property belonging to one of the bankrupts, with joint and several covenants from each of them for payment of the whole balance, and part of the debt had been proved by the bankers against the joint estate, — it was held, that they were entitled to prove a portion of the residue against the separate estate of one of the bankrupts. (7) But where a joint and several creditor proved his debt under a separate commission against one of two partners, and received a dividend, and also signed his certificate — and afterwards brought a joint action against the solvent partner and the bankrupt — Lord Eldon held that the creditor, having made his election (1) Ex parte Husband, 5 Mad. (4) Ex parte Amo^i;, 1 Mont. Dig. 421. 244. (2) Ex parte Husband, 2 G. & (5) Ex parte Husband, supra. J. 4. (6) 2 G. &J. 4. (.3) Ex parte B'ldley, IsVes. 70, (7) Ex parte Ladbroke, 2G. & J. 81. VOL. I. * U U 2 660 OF PARTNERS. [Cb. 15. Election of proof. Excep- tions to the ge- neral rule of election. Where parties on a bill are separate firms com- posing one general partner- ship. to proceed severally by proving the bond under the com- mission against the bankrupt, was not at liberty to bring a joint action upon it, but that he must proceed against the solvent partner separately. (1) Where, however, a joint creditor had sued out two separate commissions, under one of which he pi'oved against the joint estate and received a dividend, being ignorant of his right to prove against the separate estate of the other, — he was held not to have conclusively elected to prove as a joint creditor ; but that, upon refunding the dividend v/ith interest, he might prove (2) as a separate creditor. And a joint and several creditor by bond, who proves against the separate estate of one of the obligors, is not concluded by taking after- wards an additional joint security from all the obligors, but is still entitled to elect. (3) There are some exceptions, however, to this rule of election so imposed on a creditor holding a joint and several security; which, indeed, are more particularly applicable to the holders of bills of exchange, and will require some attention to be properly understood. First, Where there are distinct Jirms, and the holder is igjiorant at the time he takes the bill, that they are all engaged in one general partnership : in this case, if any one firm draws upon another — whether the aggregate firm upon the minor firm, or vice versa — the holder, it has been settled, may prove against both estates, namely, the estate of the general partnership, as well as that of the minor firm (4), or the separately trading individual. And it has also been subsequently decided, that though the holder had notice of the joint interest of two different firms on a bill, who were engaged in a joint adventure, yet that he was en- titled to prove the bill against both estates. (5) (1) Bradley v. Millar, 1 Rose, 273. (2) Ex parte Bolton, 2 Rose, 389. Ex parte Swanzy, Buck, 7. (5) Ex parte Hay, 15 Ves. 4. (4) Ex parte La Forest, 1 C. B. L. 1251. Ex parte -&'o?;/;ow?<.5, ibid. Ex parte Benson, ibid. Ex parte Adam, 2 Rose, 56. (5) Ex parte Walker. Ex parte Wenslay, 1 Rose, 441.; and see Lord Eldon's observation, 8 Ves. 546. Sect. 6.] OF PARTNERS. 661 Secondly^ Where the parties on the bill are not distinct Election Jlrms — that is to say, where no member of a partnership "/P^- carries on trade on his separate account — and one of the Where partners draws upon the general firm, or the general firm ^'"^^^^ ''"'^ upon the individual partner: — in this case, if the holder of tinct firms, the bill, at the time he took it, liad notice that the different l'"^.^"')' , , , . individual parties on it were included in one general partnership, partners of (notwithstanding he procures the separate indorsement of one gene- one of the partners on the bill, for the express purpose of n^rfhipf raising a contract for a double security) he cannot prove against both the joint and the separate estates, but is put to his election (1); because, as Lord Eldon has justly ob- served, where the object appears to be to give the bill a character of respectability by this distribution of the names of a partnership, a party to such an arrangement ought not to avail himself of it, against his hiowledge of the method, in which the obligation of the firm ought regulai'ly (2) to be created. If the holder is in perfect ignorance of the Distinc- identity of the parties, and bond fide conceives them to be *'?".?^ *^ distinct houses of trade at the time he takes the bill, then the holder it would seem consistent with the principle of the above 'V^^^ *"^*' , fact or not. decisions, that he should be allowed to prove against both estates. But in a late case, where A. and B. were in partnership, B. being a secret partner, and A. on the partnership account drew bills in his own name on B., — Lord Eldon held, that the holder of these bills (though he was ignorant of the partnership) was not entitled to prove them against the joint estate, and also against the separate estate of B. ; but that he was only entitled to prove them against each of the separate estates. (3) In some cases, where the creditor has a right of proof Where originally against both estates, he may forfeit such rifjht by "» ^^ o */ c5 J J o «/ prove his own laches, or by his own deliberate election to come against only against one. In one case where, after proving against bothe^tsXes. •' *' > f o {3 IS forfeited. (l) Ex parte 5/gg, 2 Rose, 57. (2) 2 Rose, 38. 'E'x.^^xtc. Bank of England, 2B,osc, (.3) Ex parte Husbands, 2 G. iSr 82. J. 4. VOL. 1. * D U 3 G62 OV PARTNERS. [Ch. 15. Klcction of proof. By laches. B)' a deli- berate election. Where joint cre- ditors, upon a dis- solution of partner- ship, have no election against the separate estate. the joint estate, tlie creditor laid by for some time without proving against the separate one, and acted as a joint cre- ditor by joining in a petition with other joint creditors (1), the late Vice-Cliancellor thought that he was concluded ; but Lord Eldon, upon appeal, held the contrary. (2) But where A. held a bill drawn by C. and Co. upon B. (who was a member of that firm, as well as a third person who was an infant) — but A. was ignorant of these circumstances, — and separate commissions being taken out against B. and C. (the infancy of the other partner excluding a joint com- mission) — an order was made under each commission for keeping distinct accounts of the joint and separate estates, and A. proved his debt against the joint estate under each commission, and received dividends under each ; — it was held, that as A. had modelled his proof, not as against the liability of the parties arising from the contract on the bill, but upon his right to include or exclude the resort to a dormant partner, he had made a deliberate and conchtsive election to resort to the joint funds alone; and could not, in addition to the two proofs he had already made, prove also against the separate estate of B. (3) Where two partners dissolved their partnership, one continuing the business and covenanting to pay the joint debts — and afterwards a joint commission issued against them ; — the joint creditors, who had not (previous to the bankruptcy) accepted the continuing partner as their sole debtor, were held not to have an election to prove against the separate estate of the continuing partner, but to have only a right to prove against the joint estate ; notwithstand- ing what was the joint stock of the two, under the circum- (l) Ex parte Husband, 5 Mad. 421. From the marginal abstract of this case, it would seem as if all that it decided was, that the cre- ditor had simply a right of elec- tion ; but the report of it expressly states, that there were two dislinct firmSy and that the creditor was ignorant of the general partner- ship. (2) Ex parte Husbands, 2 G. & J. 4. (3) Ex parte Liddel, 2 Rose, 54. For a very able and accurate ex- amination of the cases relating to the doctrine of election, see Mr. Eden's Treatise on the Bankrupt Law, page 1 70. et seq. Sect. 6.] OF PARTNERS. 663 stances of the case, became the separate estate of the Election continuing partner. (1) y proof. Where A. sold goods to B., and other goods to C, and Joint B. and C. joined in a note for the whole, A. was allowed "takers of . , n 1 . . " promis- to prove against the separate estate oi each, on giving up sory note. the joint note. (2) T. (who was in partnership with M. and F., and also Where carried on a separate trade) being indebted to K. 100/. *^¥ ^l^^'^ on his separate account, sent him a bill of exchange for though ' 300/., that wanted two months of becoming due, indorsed S*^^" ^V by T. M. and F. (but not by T. in his individual cha- ner for his racter), and requested K. to give him credit for the 100/., separate and to send him a bill for the remainder of the 300/. — no election K. accordingly gave him credit for the 100/., and sent him against his a banker's check for 200/., which was duly paid — the bill gsut?^^ for 300/. was dishonoured, and T. M. and F. became bankrupts : — under these circumstances, Lord Eldon held that the transaction must be considered as an exchange of paper ; and that K. had no right of election in his proof upon the bill, nor any right to prove for any part of the 300/. against the separate estate of T. (3) Where a joint and separate creditor sues out a separate A joint .^, commission against one partner, and afterwards another '^'^ ^^?% creditor sues out a joint commission, the first commission tor, who will not be superseded in favour of the last, without ^"'^s out a 11 ' • 1 r 1 • • 1 IT separate securing all the rights oi the joint and several creditor to commis- prove under the joint commission, and elect between the pon, which • • 1 1 1 -11 1 11 1 1 ^s super- joint and separate estates ; and he will be allowed also seded in to elect, out of which estate he will be paid the costs of f^iyourof a superseding the first commission. (4) not j^."^' E rived of ^-^ J, , , -.. ^„^ „. J, ,j, , is elec- Ex parte Frt/, l G. & J. 96. ; and (4) Ex parte Brown. Ex parte tion. see Ex parte Fell, 10 Ves.S47. Ex Munton, 1 V.&B.60. 1 Rose, 443. parte Williams, ante, 566. Ex parte Smith, 1 G. & J. 256. (2) Ex parte Lobb, C. B. L. 250. u u 4 664 or PARTNERS. [Ch. IT;. A solvent partner cannot prove against his co-part- ner, in competi- tion with thegeneral creditors. The same rule be- tween the different estates when all the part- ners bank- rupt. Section VII. 0/ Proof between Partners^ aiid different Firms composing one general Partnership. Although one partner may be a creditor of another, and may (under certain circumstances) enforce his claim against him both at law and in equity notwithstanding the partner- ship, yet in Bankruptcy it is now a settled rule, that a solvent partner cannot prove under a commission against his co- partner, so as to come in competition with the creditors of the partnership ( 1 ) — that is, that he has no right to receive any portion of his debt, until all the creditors of the part- nership are paid 205. in the pound, as well as all interest due upon their respective debts subsequent to the date of the commission. (2) The above rule is founded on this plain principle of reason and justice, viz. that a partner, who is himself liable to all the creditors of the partnership, ought not to take any of the funds, before all the creditors (to whom he is so liable) are duly paid. (3) And where all the partners become bankrupt, the same rule is adopted as to the proof between the different estates, though it is in this case frequently more difficult of appli- cation, and does not seem to be altogether founded upon quite so sound a principle. It appears, however, to be established by the modern decisions, that not only is the (1) Ex parte Burrel, C. B. L. 532. Ex parte Parher, ibid. Ex parte Fine, ibid. Ex parte Broome, 1 Rose, 69. (2) Ex parte Reeve, 9 Ves. 588. (5) Though the partner cannot prove for the purpose of receiving dividends, he is, however, at liberty to enter a claim for the amount of his demand. Ex parte Broome, I Rose, 69. And it seems to be a question undetermined, whether, he lias not strictly u right to prove, with a reservation of his right to receive dividends until the taking of the partnership accounts — though the practice of the commissioners is not to permit such proof The arguments in favour of the proof are, 1st. That the demand of the partner is an equitable debt ; 2dly. That it is a debt within the 52d section of the new act; and, ."Jdiy. That the partner would be barred by the certificate of his copartner. And see 1 Mont. Dig. 245. Sect. 7.] OF PARTNERS. 665 separate estate of one partner prevented from claiming Proof against the joint estate of the partnership in competition *^'''<'t'^«- with the joint creditors ( 1 ), but that the joint estate, also, is not permitted to claim against the separate estate in com- petition with the separate creditors. (2) The only exceptions to this general rule seem to be, Excep- ^i'stf where money or effects have been fraudulently ah- |!°"^, ^? stracted from one estate and applied for the benefit of the other (3) ; and, secondly^ where some of the members of a partnership form an entirely distinct firm, carrying on a different trade from that of the general partnership, and where the articles of one trade have been furnished by one firm to the other. (4) And^r5^, where money or effects have hQen fraudulently Money abstracted from one estate to benefit the other. fraudu- This question, it will be perceived, involves the con- stracted. sideration of innumerable transactions, each depending on What is a its own peculiar circumstances ; and the question will al- case of ways be, whether or not, in the opinion of the Lord Chan- cellor, or of a jury, the transaction will be held to amount to a case of fraud. It has however been decided, that where one partner takes the property of the partnership fund, and applies it to his own use without the knowledge of the other partners, and to the prejudice of the partnership estate, this is such a case of fraud as falls within the ex- ception to the rule ; and that the assignees, on behalf of the joint creditors, may consequently prove the amount of the sum so abstracted against the separate estate. (5) The term fraud, indeed, (as Lord Eldon has observed) is used (1) Lord Hardwicke, however, differently by Lord Talbot. Ex was of opinion, that if one of two parte Blake, C.B.L. 553. Ex parte bankrupt partners had lent money Batson, ibid. 534. to the partnership, then that his (5) Ibid. Ex parte Lodge, 1 Ves. separate creditors had a right to a jun. 166. Ex parte Ctist, C. B. L. dividend upon this, in common 535. with the joint creditor. Ex parte (4) Ex parte SiUitoe, 1 G. & J. Hunter, 1 Atk.527. C. D. L. 534. 374. (2) Ex parte Grill, C. B. L. 534. ( 5) Ex parte Cust, supra. Ex This point, however, was decided parte Lodge, supra. 666 OF PARTNERS. [Cll. 15. Proof in a sense to distinguish the transaction from a taking by eweeiu^ contract or loan, or from a taking with the express or im- pHed authority of the other partners. (1 ) And with respect to the principle of the above exception, he upon another occasion remarks, that it is against conscience that the creditors should resist the restoration of that, which the debtor (from whom they seek payment) has against the consent of his partners, and in fraud of their contract (2), Rights of taken out of the joint fund. In the event, too, of a surplus ^reditors ^^ ^^^ joint estate, then the separate creditors of the part- ofdefraud- ner who has been defrauded will have a right to such ed part- surplus, in preference to the separate creditors of the partner committing the fraud. Thus, where it appeared that a debt had been proved against the joint estate, in respect of bills drawn by one partner in the name of the firm for his own separate debt, it was determined, that his share of the surplus of the joint estate was subject to the lien of the separate estate of the other partner, in prefer- ence to his own separate creditors ; and not only so, but that if such surplus proved insufficient to satisfy the balance due from the one estate to the other, then that the separate creditors of such other partner might come in against the separate estate of the partner (so drawing the bills) for the deficiency. (3) Solvency '^^^^^ solvency of either of the partners, also, will not pre- ofapart- vent the exercise of the same right of proof, as the joint not pre- creditors would have had if both had become bankrupts, vent the Thus, where two solvent partners, after the bankruptcy of of™roof ' their copartner, were compelled to discharge a debt against the partnership (which he had created by his own fraud), and had also paid all the joint debts of the partnership, they were permitted to prove the amount of this debt under the commission against their bankrupt partner; Lord Eldon observing, that the solvent partners might C 1 ) 2 V. & B. 2 1 .-. (5) Ex parte King, 1 7 Ves. 1 1 5. (2) Ex parte Yoiige, 5 V. & B. 55. Sect. 7.] OF PARTNERS. 667 have filed a bill to compel the other to replace money so Proof fraudulently obtained — that this right could not be taken ^ ^^^"^^^- from them by the bankruptcy of their copartner (1) — and that, in every fair and equitable understanding of the respective situations of the parties, the solvent partners were to be considered as the separate creditors of the bank- rupt partner. And even at Law it has been held, that where a solvent partner had paid money to another before his bankruptcy, for the specific purpose of being paid over as his liquidated share of a debt to their joint creditor — and the money had been misapplied by the bankrupt partner, — the solvent partner could prove the amount under the com- mission. (2) So, where there happens to be a surplus of the joint estate under a separate commission — if, upon taking the partnership accounts, the bankrupt is found in- debted to the solvent partners in respect of the transactions of the partnership, the solvent partners are also entitled to such surplus towards discharging such debt ; and if it turns out insufficient, then they are at liberty to prove against the separate estate of the bankrupt partner for the dif- ference. (3) But, notwithstanding one partner may abstract the part- Where nership money without the privity or subsequent appro- onepart- bation of his copartner, yet if the latter, by his own conduct, own con- enables him to do so — such as by conceding to him a full ^^^^^ S^^ dominion over the funds contrary to the express provision a full con- of the articles of partnership — this is a case which does not ^rol over come within the above exception. Thus, where the articles nersWp ' of partnership between two partners provided, that the funds. money belonging to the concern should be lodged in the hands of a banker in thei?- joint yiarnes — and one partner permitted the other to pay in the partnership monies, and draw them out from time to time in his own sepaj-ate name, — Lord Eldon held this to be such an acquiescence of one (1) Ex parte Young, 2 Rose, 40. (2) Wright v. Hunter, 1 East, 20. 3 V. & B. 35. (3) Ex parte Terrell, Buck, 345. 668 OF PARTNERS. [Ch. 15. Proof partner in what necessarily gave the other the whole con- b ekvecn. ^.^.^^ ^^^^ ^^^q joint property, that he must abide by the con- sequence of his own conduct ; and, therefore, though the money might have been taken by the other partner for his own purposes, without the privity or subsequent appro- bation of his copartner — yet the facts, by which the partner was so enabled to possess himself of it, being facts within the knowledge and approbation of the copartner, the con- sequence of those facts must also be taken to have been within his knowledge, and with his privity and appro- Whatclocs bation.(l) But where one partner was entrusted and "*'*' empowered by the other, vursuant to the articles ofpartner- amount to ^ , • •„ i i . i? l an acqui- ship, to draw Diils and manage the cash concerns or the escence in copartnership ; — this was held to be not such an acqui- such con- ^ .,.,.. , 1 • r 1 trol. escence in his dominion over the partnership luncls, as would prevent the above right of proof from attaching against his estate for a debt, which he had created against the partnership, by pledging the credit and using the notes and name of the partnership for his own pur- poses, without the consent of the other partners. (2) The right of proof also in this case was held by Lord Eldon to be sustainable on another ground, viz. under the provisions of the 49 G. 3. c. 121. s. 8., and conse- quently under those also contained in the 52d section of the new act. For he observed, that the solvent partners having paid all the joint debts, though they were not strictly sureties, were nevertheless in the situation of *' persons liable" and, as such, entitled to prove against the bankrupt partner. And this right of proof by a solvent partner, who has paid all the partnership debts, or indem- nified the bankrupt's estate against them, has also been re- cognized in several other cases. (3) (1) Ex parte Harris, 1 Rose, (3) Ex parte OgUvy, 3 V. & B. 437. 2 V. & B. 210. ; and see Bx 133. Wood v. Dodgson, 2 M. & S. parte Smith, 6 Mad. 2. 195. Ex parte Watson, Buck, 449. (2) Ex parte Young, 2 Rose, 40. Ex parte Taylor, 2 Rose, 175. See 3V.&B.35. also 9 Ves. 590. 2V.&B.212. Sect. 7.] OF PARTNEKS. 669 When joint creditors have, under an order on the Proof ground of there being no joint property, proved against ^ "'^"^' one or more of the separate estates exclusively of the rest. As to con- the estate so burthened is entitled to remuneration from tnbution between the others. (1) And where bankrupts were bound jointly estates. and severally to the crown, and the joint estate had paid beyond its due proportion, contribution was decreed be- tween the joint and separate estates. (2) Where a solvent partner pays all the joint debts, and Where a proves affainst the separate estates of his bankrupt co- ^'^'^^"'^ i <^ r ^ ^ r partner, partners, for the respective sums each is bound to contri- who has bute, — it has been a question, whether, if the estate of one P/^^^ "ijl f- 1 1 I • ■ nc ■ • ^ ■, the joint ot the bankrupts is msumcient to pay 205. m the pound, debts, may the solvent partner can come against the other bankrupt's pi'ove for ,, , . . r 1 1 n ' 1 • 1 1 ^ share of estate tor his proportion ot that dehciency, besides the the defici- original contributory proportion already proved against his ^"py not estate. It has been holden by the present Vice- Chancellor, another that this cannot be done ; but that the solvent partner bankrupt can only prove for such sum, as at the time of the bank- ^^^ ^^^' riiptcy each partner was bound to pay or provide — on the principle, that proof is equivalent to payment, without re- gard to the amount of the dividend — and also that proof cannot thus be mounted upon proof. (3) Some doubts, however, have been entertained as to the correctness of this decision — Lord Eldon observing, with respect to proof being equivalent to payment, that that position has been frequently overruled. (4) And Mr. Eden appears to think, that the equitable principle applicable to cases of principal and surety was not sufficiently attended to in the above decision. (5) But it must be remembered, that though the solvent partner is in the nature of a surety to third persons for his co-partners, yet his co-partners are not respectively bound for each other as sureties to him — except, indeed, for (1) Ex parte Willock, 2 Rose, (3) Ex parte W^afjow, Buck.449. 392. Ex parte JVj/lie, ibid. 393. Ex parte Stnit/i, ibid. 492. (2) Rogers v. Mackenzie, 4 Ves. (4) Ex parte Hunter, Buck. 556. 752. (5) Eden's B.L. 168. 670 OF PARTNERS. [Ch.li Proof between. Where some of the part- so much only as each may be bound to contribute, in 2^0- portion to his o'W7i share in the partnership, for any loss oc- casioned to the general concern by the default of another. With this exception, each partner is only liable to the others for his own acts and defaults, and not for the acts and defaults of any one of his co-partners. Accordingly, when there are more than two partners, then if one proves entirely insolvent, his share of the debts must be paid by the other partners, each bearing his due proportion of the loss occasioned by the insolvency of their co-partner. On the other hand, if two of three partners become bank- rupt, and one of the estates of the bankrupt partners pays but a small dividend on the amount of his contributory share due to the solvent partner, the latter ought not to prove for the whole of the deficiency against the estate of the other bankrupt partner, but only for so much as that other bankrupt partner would have to contribute towards making good such deficiency, if he had continued solvent ; other- wise, indeed, the estate of the bankrupt partner would be charged with a most unreasonable burthen for the indem- nity of the solvent partner. ( 1 ) Secondly. Where some of the members of a partnership form an entirely distinct firm, carrying on a different trade (l) The proposition contended for by the counsel for the petition in ex parte Watson, (supra) viz. " that if one partner pay more than his share of the partnership debts, he may recover the amount so paid, against any one of the other mem- bers of the firm," is, certainly, quite untenable. As, suppose three partners interested in equal shares, two of whom become bankrupt, and the solvent partner pays the whole of the joint debts, amount- ing to 1500^. He comes for con- tribution against both the bankrupt partners, and proves against the estate of each a debt of 500/. One of the bankrupts pays only a dividend of \s. in the pound, upon which the solvent partner applies to prove the deficiency, viz. 475/., against the estate of the other bankrupt partner. If he is per- mitted to do so, and that bankrupt partner pays 20s. in the pound, the solvent partner will by that means receive from one of his copartners the whole of the loss occasioned by the default of the other, without having contributed one farthing himself; a consequence so mani- festly absurd, as induces one to suppose there must be some in- accuracy in the report of the ar- gument in the case above referred to, Sect. 7.] or partners. 671 from that of tlie general partnership, and where the articles Proof of one trade have been furnished by one firm to the other, '^ '^tween. In this case there are several points of distinction, which ners carry it will be of importance to attend to. In the first place, °" ^ differ- ^ . ent trade the trades must be wholly distinct and different from each under a other, and not merely branches of the joint concern. For, distinct if there be in reality only one partnership, arranging dif- ferent concerns belonging to them all in different ways for the benefit of the whole joint concern, there cannot in this case be proof by part against the other part. Thus, where three partners carried on the business of cotton manufac- turers in Lancashire, and two of them had a branch estab- lishment in London, — it was held, that there could not be proof by the estate of the three against that of the two. But if the trades had been perfectly distinct, such as those of cotton maniifactiirers and iro7ijnongers, then the three might have been creditors upon the separate concern of the two. ( 1 ) So, where A. and B. were partners as insurance- brokers, and A. carried on a separate trade as an oilman, in the progress of which he became indebted to the firm, — the assignees of the joint estate were admitted as cre- ditors upon the separate estate. (2) In the next place, though a joint trade may prove against One of a separate trade, yet it has been held that one of two jpartners, ^"'^ P^*"*" though carrying on a separate trade, and furnishing goods as not prove a separate trader to the partnership, cannot prove under a ^Sj^'^st the commission against his co-partner; that is, not before all the joint creditors are paid the whole of the principal and interest on their respective debts. For in none of the cases (as Lord Eldon has observed) in which the partner, constituting a distinct house, has ever been admitted to prove, has the estate (against which he has been so admitted) been liable (l) In re Skakeshaft, C. B. L. Johns, ibid. Ex parte Heskam, 538. Ex parte Hargreaves, 1 Cox, 1 Rose, 146. 440. Per Lord Eldon, 11 Ves. 4 14. (2) Ex parte St. Barbe, \l Ves. Ex parte i?jng, C. B.L. 538. Ex 415. parte Freeman, ibid. Ex parte 672 OF PARTNERS. [Cll. 15. Proof with that distinct house for joint debts; — the principle ^ "^^"' being, that a solvent partner shall not be admitted to prove in competition with creditors who have a demand against himself. (1) Consider- Lastly^ the consideration for the debt must be for goods ation of "^ . . ° the debt sold, that is, for articles of one trade furnished to the other must be trade, and not for money advanced by one of the firms to for flrticlcs ^ */ xy •/ outrode. the Other. Therefore, where the debt accrued from the aggregate firm to the separate trade, in respect of monies provided for the aggregate firm on the credit of the in- dorsement of the separate firm — Lord Eldon held, that in this case no proof could be made by the separate firm against the aggregate one (2), as this could not be con- sidered a transaction between trade and trade. But in a recent case, where the question was, whether a partner in a banking house could prove a debt against the estate of another banking firm (in which he was also a partner) for money lent, the Vice-Chancellor decided, that he was en- titled to prove his demand, looking upon the case of a hanker lending money, as that of a trader making ad- vances m the isoay of his trade. [Z) As to or- Where there were three firms commencing at different der for periods, — upon the bankruptcy of the firm in which they distinct were all engaged, distinct accounts were ordered to be accounts, j^gpt of \\^q different partnerships, as well as of the respec- tive separate estates of each individual bankrupt. (4) But, where there have been various partnerships, and a joint (1) Ex parte Jrfaws, 1 Rose, .305. (.3) Ex parte Brenchley, supra. In a recent decision, however, of In this case his Honour professed the Vice-Chancellor, he said he that he could not understand some was at a loss to see the ground of of the principles on which the de- distinguishing between a case, cision in ex parte SUlitoe was where there were only tivo part- founded; and that he saw no rea- ners, and one where there were son why any difference should be more. Ex parte Brenchley, Sit- made in the proof of a debt, tings after Trinity Term, 1826. whether it was created by a loan (2) Ex parte SUlitoe, 1 G. & J. of money, or by a transaction in •374. the way of trade. (4) Ex parte Marlin, 2 Bro. 15. Sect. 7.] OF PARTNERS. 673 commission is taken out against one firm, in which some of Proof the parties were not engaged, there can only be the com- \ mon order for keeping distinct accounts of the joint and separate estates. (1) (1) Ex parte Parker, 1 C. B. L. 249. X X 674- CHAP. XVI. OF RELATION TO THE ACT OF BANKRUPTCY. Sect. 1. Js to Payments, made hy or to the Bankrupt. 2. As to Purchasers. 3. As to other Dispositions of the Banlcrupt's Property. 4. As to Judgments, Executions, and Attachments. 5. As to Notice of an Act of Banhuptcy. Section I. As to Payments made hy or to the Bankrupt. 1 he alterations made by the new statute in the law of relation to the act of bankruptcy, by which all dispositions subsequently made of the bankrupt's property were (under the 13 Eliz. c. 7.) avoided and overreached, have now rendered much of the doctrine, which formerly appertained to this division of the bankrupt law, unimportant for con- sideration. It may suffice to observe, that after the hard- ship of the former enactment had been relaxed by many subsequent statutes ( 1 ), it was still sufficiently oppressive to be designated by Judges from the bench (2) as an odious law ; — and it was also one which they always refused to let a party take advantage of 7ipo?i motion. The new statute will be found to have relaxed the law of relation still further; but whether such relaxation has gone far (l) 1 Jac. 1. c. 15. s. 14. 19G.2. (2) Clnrke v. Ryall, lBl.642.; c. 32. s. 1. and see 4 Taunt. 198. Per Mans- field C. J. Sect. 1.] OF RELATION TO THE ACT OF BANKRUPTCY. 675 enough remains to be considered, and will more especially Payments depend upon what construction courts of justice will ftive ^^ ^^'^ . , rni • 1 ■ 1. bankrupt. to Its enactments. 1 hese it may be convenient to discuss 1_ in the order above mentioned ; and, instead of enumerating in the gross the various alterations in this branch of the law, it will be better, perhaps, to point them out singly to the reader, as they occur in the progress of the inquiry, — by which means it will be more clearly perceived in what respects the new law differs from the old. By seciiofi 82. of the new statute all payments really and All pay- bond Jide made bi/ the bankrupt, or any person on his be- ™^"^* ^ half, before the date and issuing of the commission to any jide with- creditor (such payment not being a fraudulent preference '^^^ notice of such creditor), are declared to be valid, notwithstanding of bank- any prior act of bankruptcy — as well as all payments in i""Ptcy, like manner made to the bankrupt. And such creditor will not be liable to refund the same to the assignees, provided the person so dealing with the bankrupt had not (at the time of the payment by or to the bankrupt) ?iotice of any act of bankruptcy by such bankrupt committed. This relation to the act of bankruptcy cannot, of course, Relati ion be carried further back than the accruing: of the petitioning ^"'^ ^^" tends to creditor's debt; for the assignees could not avail them- accmincof selves of any act of bankruptcy beyond that time, without petitioning destroying their title as assignees. (1) ^^l^j. The payment by the bankrupt to a creditor is not ecu- Payment fined now to a payment " in respect of goods sold, or of a "°*- J^^"" bill of exchange, in the usual and ordinary course of trade," former (as was formerly held under the 19 G. 2. c. 32.) in order restriction; to be protected (2) ; — for those words (which were inserted in that act) are purposely omitted in the above section, (l) Ex parte J5mteif, 2Rose, 71. Harwood v. Lomas, 11 East, 127. Ex parte Bowness, 2 M. & S. 479. Bayly v. Schofield, 2 M. & S. 338. {1) Bradley y. Clark, bH.^.X^l. Ex parte Congalton, 3 Bro. 47. Vernon \. Hall, 2 T.'R.GA.S. Pin- Tarnplin \. Diggins, 2 Camp. 512. kerton v. Marshall, 2 H. B. 334. Blogg v. Phillips, ibid. 129. X X 2 676 OF RELATION TO THE [Ch. 16. Payments BY the bankrupt. but must be a bon/i Jide pay- ment, and made by the bankrupt, or his agent. Indorse- ment and acceptance of bills of exchange. Bartering goods. which extends to all bona jide payments whatever. It must still, however, be strictly a bond Jide payment ; and therefore a payment in any mercantile dealings, which is not in the ordinary course of trade, would not even now be considered a payment bond Jide — such, for instance, as a payment made for goods bejore they are delivered [\) — or, perhaps, a payment by weekly instalments for goods previously sold and delivered to the bankrupt. (2) The payment, also, which is contemplated by the act, must be a payment by the banJcrupt himself^ or his author- ized agent. Therefore, a payment made hy b, third person without the knowledge of the bankrupt — or a payment ex- torted by compulsion of legal process (by foreign attach- ment, for example, even after judgment) from a third person, who happened to have effects of the bankrupt in his hands at the time — cannot be said to be a payment by the bankrupt^ or by a person on his behalf, when the bank- rupt was not even conscious that his property was in the hands of such third person. (3) The indorsement and delivery of bills of exchange by the bankrupt to a creditor after a secret act of bankruptcy, where the creditor received the money due on the bills before the commission issued, was held by Lord Hardwicke to be a. good payment within the statutes of 1 Jac. 1. c. 15. and 19 G. 2. c. 32. — on the ground, that there was no dif- ference between an actual payment of money in satisfaction of a debt, and indorsing bills of exchange (provided the money was received on them before the commission is- sued), — such indorsement being only a ynedium of pay- ment. (4) So, the acceptance of a bill (which is afterwards duly paid) is equivalent to a payment of the debt in money at the time (5) of the acceptance. And the giving goods in ex- (1) Per Bayley J. 3 B. & C. 416. (2) Bolton V.' Jager, 1 Ryan & M. 265. (.3) Hovil V. Browning, 7 East, 154. (4) Hawkins v. Pcnfold, 2Ves. 550. (5) Per Abbott C. J. Sowerby v. Brooks, 4 B. & A. 525. Sect. I.] ACT OF BANKRUPTCY. 67^ change for other goods was also held by Lord Kenyon to Payments be a (1) ffood payment. i^ /"^ , ^ ' ti i- J _ ... bankrupt. The bankers of a bankrupt are in the same situation in regard to him, as other persons are in this respect; and if T^^J^^r*^^ they receive money from him after notice of an act of bank- after no- ruptcy, they are bound to retain it for the use of the assignees. ^^^^ °^ ^" Any payments, therefore, made by them upon account of bankrupt- drafts drawn by the bankrupt, after they have had notice of ^^J- an act of bankruptcy — or any payments of money over to the bankrupt himself — will not be protected. Neither can they set off any payment so made, or be allowed to come in as creditors in respect of it under the commission. (2) "Where a bankrupt shortly befoi'e his bankruptcy drew a Money in bill which he procured to be discounted, and then save 'he hands ^ ^ ' o oi a car.- his creditor an order to receive the amount, directing the rier. person who discounted the bill to transmit it to the credi- tor — and whilst the money was in the hands of the carrier, committed an act of bankruptcy; — it was held, that the creditor (to whose hands the money did not come until after the act of bankruptcy) was liable to refund it to the assignees ; for, whilst the money remained in the hands of the carrier, the property in it remained unaltered (3), not- withstanding the order to receive it was given to the creditor before the bankruptcy. Though this point would be ruled differently now, with respect to the relation to the act of hankruptci), — yet the principle of the decision will apply to a case, where a creditor receives money under similar circumstances after the issuing of the commission. A payment of a debt by the bankrupt upon being ar- Payment rested (4'), or threatened with an immediate arrest (5\ is a '?™ "* ^ " . . . ot arrest. bona, fide payment within the statute, notwithstanding a secret act of bankruptcy. But, where a trader upon being (1) Wilkins v. Casey, 7 T. R. (.") Hervey \. JAddiard, 1 Star. 713. 128. (2) Vernon v. Hankey, 2 T. R. (4) Cox v. Morgan, 2 B. & P^ 113. sBro. 313. Hammersley v. 398. Holmes v. Winnington, cit. Purling, 3 Ves. 757. ibid. (5) Jo7ies V. Lingard, cit. ibid. XX 3 678 OF RELATION TO THE [Ch. 16. Payments BY the bankrupt. Repay- ment of money clothed with a trust. Payment to avoid a distress. Payment in consi- deration of sur- render of lien. arrested and afterwards charged at the suit of several persons, sent for all the creditors at whose suits he was detained except one — and paid those creditors alone the full amount of their debts — such payments were not con- sidered to be bond jfide. ( 1 ) And where a trader was ar- rested upon a ca. sa. after he had committed an act of bankruptcy — and thereupon placed goods in the hands of the sheriffs' officer to raise money upon them, who accord- ingly pledged them, and five weeks afterwards paid over the amount to the party, at whose suit the bankrupt had been arrested ; — this transaction was considered also to be not a bona Jide payment. (2) But where a party ad- vanced money to a bankrupt during his imprisonment, for the express purpose of enabling him to settle with his credi- tors — and (that purpose failing) a part of the money was repaid to him by the bankrupt ; — in this case, the money was held to be clothed with a specific trust, which pre- vented it from passing to the assignees ; and consequently the repayment was protected. (3) A payment by a tenant to a landlord to avoid a distress is a bona Jide payment, even though the landlord knew of an act of bankruptcy ; for, having by law a right of distress, if he thinks fit to waive that right and accept of the rent, he is not to be placed in a worse situation than if he had made an actual distress. (4) And though there are no goods on the premises, such a payment by the tenant will be valid ; as the landlord would have a right to distrain on any goods which might be subsequently placed there. (5) A payment made by the bankrupt to a party who had a lien on papers in his hands for a balance due, which he delivered up on payment of such balance, was held to be a bona jide payment ; — though the party did not expressly stipulate for payment as a condition for the surrender of {\) Southey\, Butler, Z^. 8c '^. {4) Stevenson v. Wood, 5 Esp, 237. 200. (2) Allanson v. Atkinson, 1 M. & (5) Mavor v. Croomc, 1 Bing. S. 583. 261. (5) Coles \. Robins, 3 Camp. 185, Sect. 1.] ACT OF BANKRUPTCY. 679 the lien — and even though the party received sucli payment Payments from the bankrupt in the King's Bench prison, where he Y^ 1 was actually confined at the time — and the lying in prison was itself the act of bankruptcy on which the commission issued. ( 1 ) Where a bankrupt, previous to an act of bankruptcy, Money re- gave a power of attorney to his creditor to receive sums of ^^'v^" fjf' money due to the bankrupt, and to apply them to the ere- rnjHcy ditor's own use, — any money received under such power ""'ler a by the creditor cifter the bankruptcy was held to be recover- attorney, able by the assignees. (2) The relation to the act of bankruptcy, it seems, only Relation affects payments and transactions by the bankrupt, which onlyaffects may operate to the prejudice of the assignees, or interfere which may in any manner with their rights ; for in other respects the prejudice act of a man, who has committed an act of bankruptcy, has ^ggg "" the same effect as the act of any other person. (3) There- fore where a bankrupt, having securities in his bankers' hands to a certain amount, drew upon them a bill for a larger amoimt, on the score of his accommodation — which (after acceptance, and after an act of bankruptcy) he in- dorsed to a third person ; — it was held, that the indorsee, though not entitled to recover against the bankers the whole amount of the bill — which would have prejudiced the right of the assignees to the amount of the securities held in the bankers' hands — might nevertheless recover to the extent of the difference between the amount of such securities and the amount of the bill. (4) With respect to payments to a bankrupt — it is provided by section 84. (5) of the new statute, (in addition to the 82d section above mentioned) that no person or body cor- (1) Thompsony.Beatson,\'Qmg. (4) Willis \. Freeman, 12 East, 145. ; but see post, 682. 656. (2) Hovill V. Lethivaite, 5Esp. {5) This section is taken from 158. the 56G.3. C. 137. S. 1. (s) Per Lord Ellenbo rough, 12 East, 659. X X 4 680 OF RELATION TO THE [Ch. 16. Payments TO the banhrupt. Distinc- tion be- tween pay- ments by, and pay- ments to, the bank- rupt. Payment without knowledge of act of bank- ruptcy. Payment made in antici- pation of a consign- ment. porate, or public company having in his or their possession or custody any money, goods, or effects belonging to any bankrupt, shall be endangered by reason of the payment or delivery thereof to the bankrupt or his order, provided such person or company had not notice that such bankrupt had committed an act of bankruptcy. Payments made to a bankrupt after a secret act of bank- ruptcy depend, for their validity, upon the same principle as payments made by him ; they must be equally hona^fide^ and in discharge of a debt or other legal liability. But there is a great distinction in reality between the effect (as it relates to the general creditors) of the invalidity of a payment 5z/, and of a payment to^ a bankrupt; that is, between a creditor losing the benefit of a receipt of money, and being subjected to make a payment twice over. In the case of a payment to the bankrupt — that payment must, unless there be great misconduct on the part of the bank- rupt, enure (by an increase 'pro tanto of the distributable fund) to the benefit of those very creditors, who claim the second payment of the same debt ; whereas a receipt from, a banlrupt operates pro tanto in diminution of the distributable fund — and, so far as it extends, defeats the general object of the law, viz. an equal division among all the creditors. (1) Accordingly, where a party bought goods of a trader who had previously committed an act of bankruptcy, and paid for them honajide without knowledge of the act, such a payment was held to be protected. (2) But the contrary has been subsequently held, with respect to a payment made by a party who was not actually indebted to the bankrupt at the time, notwithstanding it was made in anticipation of a consignment of goods, which had been pre- viously ordered of the bankrupt by the person making such payment. (3) As the Court, however, decided this last case upon the ground, that the defendant (when he made the (1) Per Abbott C. J. 4 B. & C. (5) Bishop v. Crawshay, 3 B. & 531. C. 415, (2) Cash V. Young, 2 B. & C. 413. Sect. 1.] ACT OF BANKRUPTCY. 681 payment) was not " a dehtor of the banlcru'pf* within the Payments 1 Jac. 1. c. 15. s. 14. — and as those words are omitted in ^ankrwnt the 82d section of the new statute, which extends generally to all payments really and bondjide made before the date of the commission — it is probable, when a case of this kind comes again before the Court, it would meet with a different decision. Where money was paid to a bankrupt by a party, who Payment had received it from the bankrupt's debtor, to convey to sen^en^*^ the bankrupt in the character merely of a messenger or hearer^ — such a payment, it was held, could not be disputed by the assignees, as against such messenger or bearer, though he was aware that the bankrupt was in prison at the time. ( 1 ) Where a factor gave his acceptance after a secret act of Payment bankruptcy of his principal (of which he had then no notice) ^^^^ n^ ' for the amount of goods sold by him for his principal, — the hands though the factor paid the acceptance to a third person person") re- after notice of the act of bankruptcy, the payment was held latestothe to be protected ; as it was to be considered a payment in ^^^^^^ ^ reference to the giving of the bill, and not in reference to not to the the time when it became due. (2) And the same point ^™j "' " was lately ruled at Nisi Prius{3) before Lord Chief Justice Best. But, where the factor had not sold the goods, but Factor, had accepted and paid bills in respect of them after a secret act of bankruptcy of the principal, — in this case, the pay- ment was held to be not a jjaT/ment of an antecedent debt, but an advance of money — and therefore not protected, so as to prevent the assignees (4) from recovering the goods in trover from the factor. The act of bankruptcy by lying in prisoji (as we have As to pay- before seen) (5) was under the former law held to relate "'^"^'^ to a 1 1 1 p 1 1 • bankrupt back to the day of the first arrest — or day of surrender in when in discharge of the bail — and to operate as if the arrest, or P"son. .^ (1) Coles V. Wright, 4 Taunt. {5) Bennettv. Spachnan,\ C^rv. 198. N. P. 274. (2) Wilkins v. Casey, 7 T. R. (4) Copeland v. Stein, 8 T. R. 712, 199. (5) See ante, page 79. 682 OF RELATION TO THE [Ch. 16. Payments or surrender, was in itself a complete act of bankruptcy. TO the Consequently, where a payment was made to a trader in prison, with full notice of that fact — and with notice also from an attorney, that a commission would shortly be issued, and that the act of bankruptcy would relate back to the day of the imprisonment — and the requisite time to constitute an act of bankruptcy was afterwards completed, — such a payment was held to be ( 1 ) not protected. But where the payment was made to an agent of the bankrupt, without any knowledge of the bankrupt being in prison, — in this case the payment was considered valid; though Lord Ellenborough observed, that if the party had known the fact, out of which the bankruptcy sprung, this would have deprived him of the protection of the statute. Yet we have seen (2), that a payment hy a bankrupt to a cre- ditor was held good, though the creditor actually received the money from the bankrupt in the very prison where he was confined. And, indeed, it seems somewhat doubtful, for the reasons before stated in treating of this particular act of bankruptcy, whether it will now be held to relate As to frac- back to ihe Jirst day of the imprisonment. (3) The same tion of a doctrine, however, as to the fraction of a day (which applies to other acts of bankruptcy) applies also to this ; and accord- ingly where the sheriff took possession under an execution, and at a later hour of the same day on which the bankrupt surrendered in discharge of his bail, the execution was holden valid. (4) For the very hour of the day when a fact took place (as to all purposes connected with a right of property) may be properly inquired into ; though the parties are entitled to take the whole day into account, in calculating the period of the imprisonment, with a view to the (5) act of bankruptcy. (1) King V. Leilh, 2 T. R. 141. v. Gregg, 3 Star. 72.; and see Sad- (2) Ante, 679. let- v. Leigh, 4 Camp. 195. Wt/- (,~) See ante, page 79. rfojow's case, 14 Ves. 87. Glassing- (4) Thomas v. Desangcs, 2 B. & ton v. Bawlins, 3 East, 407. Ex A. 586. parte Birkctl, 2 Rose, 7 1 . (5) Per Abbott C. J. Saunderson Sect. 1.] ACT OF BANKRUPTCY. 683 When the act of bankruptcy consists in escaping aid of Payments jvison, or custody^ it is then expressly declared, by \\\ejifth f° ^^'^ section of the new statute, to relate back to the time of the ' arrest, commitment, or detention. A payment made to the bankrupt by coercion at law, Payment before the execution of the commissioner's assignment, ^^y coer- even with notice of an act of bankruptcy, has been always i^^^ considered valid, unless fraud or collusion can be shewn between the debtor and the bankrupt. ( 1 ) And it is no de- fence against an action by the bankrupt, that he has com- mitted an act of bankruptcy of which the defendant has notice, if no commission be actually sued out, nor any pro- ceeding be instituted for that purpose. (2) But it has been Forei grant of his chattels, — the lease and grant were held, under the 21 Jac. 1. not to prejudice the creditors of the bankrupt, the commission being sued out within five years after the fifst act of bankruptcy. But if the commission had been sued out five years after that act of bankruptcy, then the assignee of the king's lease would have been considei'ed a purchaser within ' the statute (2), and not to be impeached. The relation of the act of bankruptcy, as it affects the right of a mortgagee to tack further advances made after an act of bankruptcy, lias been already considered in a former chapter. (3) Section III. As to other Dispositions of the Bankrupts Property. The %\st section of the new act (as we have already seen) not only applies to purchasers, but to all contracts and other dealings and transactions made with a bankrupt more than two calendar months before the date and issuing of the commission. The assignees, being subject to the same equities as the Bill of ex- bankrupt, are bound by the beneficial transfer of property change de- (l) Bradfordv.Bl2idworth,lLev. (2) Pain v. Teap, 1 Salk. 108. 13. 2 Sid. 69. Spencer y.Vanacrc, (5) Chap. IX. sect. 6. Keb. 722.; and see Jellif v. Horn, Keb.u. Y Y 690 OF RELATION TO THE [Ch. 16. Other dis- jiositions of properly. more than two months, and in- dorsed within that period. Goods at sea assign- ed before bank- ruptcy. Other goods can- not be substitut- ed after act of bankrupt- cy for goods assigned before. Ships at sea, when act of bankrupt- hona fide made by him before the bankruptcy, although before such transfer is strictly completed at law the act of bankruptcy may intervene. Thus, where a bill of exchange was merely delivered, by a bankrupt to the indorsee (though with the real intent of transferring the property in it to him) more than two months before the commission, but the indorsement was not, in effect, written upon it until within the two months, — Lord EUenborough held, that the writing of the indorsement had reference to the delivery of the bill, and that the indorsee was entitled to it against the assignees. (1) And in another case, where the indorse- ment was not made even until after the commission issued, it was equally holden to be valid. (2) Upon the same principle, in the case of goods at sea, where a hona fide assignment is made of the property before the act of bankruptcy, and the bills of lading are not indorsed till afterwards, the indorsement of the bills of lading cannot be impeached. (3) But, though the legal transfer of property, which has been equitably assigned before an act of bankruptcy, can be perfected afterwards, — yet other property cannot be then substituted for the pro- perty originally assigned. Therefore, where a trader pledged for value the bills of lading of an expected cargo, part of which his agents abroad without his knowledge had disposed of — and after having committed an act of bank- ruptcy, he then caused other goods to be substituted, and sent the bills of lading of these goods to the pawnees, — it was held, in this case, that the pawnees could not retain the substituted goods against the assignees. (4) With respect to the transfer of property in sliijps at sea (in order to give effect to which certain forms are required by the registry act (5) ) it is now settled, that notwithstand- (1) Anon. 1 Camp. 492. (2) Smith V. Pickering, Peake, 50.; and see Ex parte Greening, 13Ves.206, (3) Lempricre v. Pasley, 2 T. R. 485. 160. Brown v. Heathcote, 1 Atk. 74. (4) Meyer v. Sharpe, 5 Taunt. (5) 4 G. 4. c. 41. s. 35, 36, 31. and sec ante, 418. Sect. 3.] ACT OF TJANKRUPTCY. G91 ing an act of bankruptcy intervenes between the execution Other dis- of the bill of sale, and the full compliance with all the re- property. quisites of the rej^istry act, — yet if all those requisites are in fact finally complied with pursuant to the directions of the jj^^, ,j|n ^^• statute, the transfer of the property will be held good sale and against any claim of the assignees. For the bill of sale is .jij.tiy„ „f held now to pass the absolute property in the ship, subject the requi- only to be divested in case the directions of the registry ^.pfj^j,j° act are not pursued. Therefore, a power of attorney from act. a bankrupt to sign an indorsement on the certificate of Power of registry of a ship when she returned home, in order to ^^ s["^^ give effect to a previous bill of sale, is not revoked by a sub- indorse- sequent act of bankruptcy — it being only a power to do a f^g" ^"(.gp mere formal act, which the bankrupt himself might have not re- been compelled to execute notwithstanding his bank- 7 f ^ ruptcy. (1) Where, however, the act of bankruptcy in- ruptcy. tervenes between the bill of sale, and the completion of the When forms required bv the rejjistrv act, and there is at the same ^'"^^'^ ^,* 1 "_ D J ' ^ ^ gross de- time gross delay in the completion of those requisites, — lay. then the bill of sale will become void as against the assignees. (2) And where certain things regarding the registry ai'e directed to be done, without specifying any given time for their completion, they must be done within a reasonable time ; which (Lord EUenborough observed) is as capable of being ascertained by evidence, as if it had been fixed by the act of parliament. (3) Where a trader after a secret act of bankruptcy con- Goods signed goods to a factor, who agreed to advance money consigned thereon, and accordingly accepted and paid bills drawn on sold by a him by the trader, and afterwards sold the goods and re- factor ceived the money, — the factor was held to be answerable "^t of to the assignees for the value of the goods, upon the bank- ground of relation back to the act of bankruptcy. (4) So """P*^-^* (l) Dixon V. Ewart, Buck, 94. (2) Moss v. CharnocJc, 2 East, sMeriv. 322. ; and see Palmer \. 599. Per Bayley J. 2 M. &S. 51. Moxon, 2 M. & S. 43. Mestaer (3) 2 M. & S. 50. \. Gillespie, 1\ Yes. 657. Hubbard (4) Copcland v. Stein, 8 T. R. V. Jofnisto7i, 3 Taunt. 208. 199. Y Y 2 692 OF RELATION TO THE [Ch. 16. Other dis- an agreement between the bankrupt and the defendants property? before the bankruptcy, that the defendants should accept bills, to enable the bankrupt by his agent abroad to pur- chase cargoes and transmit them to the defendants, who were to pay their acceptances out of the proceeds, and to place the surplus to the account of the bankrupt, — is no defence to an action by the assignees for proceeds received by the defendants after the bankruptcy/. {!) The relation to the act of bankruptcy of one partner, as it affects subsequent transfers of the partnership property by the solvent partner, has been already fully considered in the preceding chapter. (2) It is greatly to be lamented, that so much difference of opinion prevails upon this very important branch of the bankrupt law between the courts of law and equity. Execu- tions and attach- ments levied more than two months before commis- sion, good. Execution creditors put on the same foot- ing as others ; Section IV. Of Executions and Attachments. By the 81 5^ section before referred to, all executions and attachments against the lands and tenements, or goods and chattels, of a bankrupt, bo?id fide executed or levied more than two calendar months before the issuing of the com- mission, are, declared to be valid, notwithstanding any prior act of bankruptcy, provided the person, at whose suit such execution or attachment shall have issued, had not at the time notice of any prior act of bankruptcy. (3) But by section 108.(4) no creditor having security for his debt, or having made any attachment (in London or any other place by virtue of any custom there used) of the goods and chattels of the bankrupt, shall receive upon any such security or attachment more than a rateable part of (1) Carter V.Barclay, 1 Star. 43. (2) Ante, 631. (5) And see 21 Jac. 1. c.l9. s. 9. 49G.3. C.121. S.2. (4) The first part of this section follows nearly the 21 Jac, 1. c. 19. 5.9. Sect. 4.] ACT OF BANKRUPTCY. 693 his debt, except in respect of any execution or extent served and levied hy seizure upon, or any mortgage of, or lien upon, any part of the bankrupt's property before the bankruptcy. And no creditor, though for a valuable con- sideration, who shall sue out execution upon any judgment obtained by default, confession, or nil dicit, shall avail himself of such execution to the prejudice of other fair cre- ditors, but shall be paid rateable with the other creditors. The last part of the above section is adopted from the Irish statute of the 1 1 & 12 G.3. c. 8. s. 5. ; and is also an extension of the provision of the 3 G. 4. c. 39. s. 2. & 3., which declared all warrants of attorney and cognovits to be void, as against assignees, unless they were filed within twenty-one days after their execution. The new provision seems a very wholesome one to prevent a fraudulent pre- ference of a favourite creditor. As an execution, in order to have any legal operation, must (under the above section) be served and levied by seizure, the writ being merely tested before the bankruptcy is insufficient — or even being previously delivered to the sheriff; for such delivery is not an execution of it. (1) So an execution of the writ, by a delivery of the warrant to a shopman of the trader as a special baihfF — though there were no regular baiUffs in the county into which the writ was issued — has been holden not to be a sufficient exe- cution of the writ, so as to protect the property against the claims of the assignees, by reason of the reputed owner- ship. (2) But where the goods ai'e actually seized by the sheriff bond Jide before the act of bankruptcy, that is sufficient to render the execution valid. (3) When the act of bankruptcy is by lying in prison, and an execuiion is executed after the first arrest, though before the act of bankruptcy is complete by lying in prison Execu- tions, Sfc. unless levy made be- fore the bank- ruptcy. Execution on judg- ment by default or confession not to be preferred. Execution merely tested, or delivered to sheriff before bankrupt- cy, insuffi- cient. Delivery of warrant to shop- man of bankrupt not a suf- ficient execution. Execution levied after ar- rest, when (1) Pkilfips V. Thompson, 3 Lev. 69. 191. Buj/lci/ V, Burning, 1 Lev. 1 73. Smallcombc v. Cross, 1 Ld. R I'ol. (2) Jackson v. Irvin. 2 Carap. 48. (3) Cole V. Davies, 1 Ld.R.724. Y Y 3 691. OF RELATION TO THE CCh. 15'. Execu- tions, Sfc. act of bank- ruptcy is lying in prison. Wliere the levy and act of bank- ruptcy the same day. Whether the crown will be preferred. As to ope- ration of an extent. the full time required by the statute, — it has been held, that the execution is avoided, by relation to the first arrest. (1) With respect to the validity of executions and attach- ments against partners, where ojie of the partners has previously committed an act of bankruptcy, the reader is referred to the preceding chapter. If the goods be seized by the sheriff the same day that the party commits an act of bankruptcy, it is open to inquire which had the priority ; and the validity of the execution has been held to depend upon such priority. (2) So, where the sheriff took possession, and the same day at a later hour the bankrupt surrendered in discharge of his bail, the execution has been holden valid. (3) But where an extent of the Crcnan issues the same day that the assign- ment of the bankrupt's effects is made to the assignees, in this case, it has been held that the Cro'wn shall be pre- ferred (4) ; — though it seems very doubtful now — since the old maxim in law (of there being no fraction of a day) has been broken in upon by many subsequent de- cisions (5) — whether the Crown would really be preferred, where the assignment was bond fide executed before the is- suing of the extent. An extent of the Crown binds the property of the king's debtor from the te&te of the writ, or rather from the time of \k\Q. Jiat ; for the writ, at whatever time it issues, may always be tested the same date as the^«/, though it cannot be tested before. (6) Therefore, if it is issued at any time previous to the execution of the commissioners' assign- ment — (before which the property is not legally out of the bankrupt (7) ) — it will be preferred to the claim of the assignees ; and this preference, it seems, will prevail as {\'\Coppendalev.Bridgen,2V>\\xx. (5) Saundersonv. Gregg, 3 Star. 814.; but see ante, 79. 72. ; and see ante, 862, (2) Sadh-r v. Leigh, 4 Camp. 197. (g) Rex v. Mann, Str. 749. West (3) Thomas v. Dcsanges, 2 B. & on Extents, 5S. A. 58G. (7) Q,ueen v. Arnold, 7 Vin. Ab. (4) Rex V. Cnu)ij)lo)i, cit. 2 Ves. 104. CO 5. Parker's llcp. 126. Sect. 5.] ACT OF BANKUUPTCY. Gdfl well with respect to debts due to the bankrupt at the time Exccu- of the teste, as with the bankrupt's ^00^5 (1) ; for the Crown ' is not affected by the operation of the assignment, in relation back to the act of bankruptcy. (2) And where goods were seized under an extent, and the writ and inquisition returned by the sheriff, — though the debtor becomes a bankrupt be- fore the issuing of the liberate, the execution of the extent is good (3) against the assignees. If an extent is issued after the date of the bargain and Wlierc sale of the bankrupt's lands, but before inrolment, it seems fgppgj f^ " that the extent will be preferred to the bargain and sale ; bargain for it has been held, that in hankru])tcy the inrolment does ^" ^^ ^' not (as in other cases) relate back to the date of the bargain and sale. (4) For further information, as to the operation of extents, and other process for the recovery of the king's debt, the reader is referred to a former chapter (5), where the effect of the assignment upon the process of the Crown has been already fully considered. Section V. What is Notice of an act of Bankruptcy. It will have been observed in the progress of this inquiry, as to the effect of the relation to the act of bankruptcy, that (with the exception of purchases made more than twelve calendar months before the commission issues, and process at the suit of the Crown) the validity of any dealing or transaction with the bankrupt, under any of the fore- going circumstances, depends entirely upon the person so dealing with him having no hioidcdgc or notice that he had (1) Ibid.; and see ante, Chap.XI. (3) Audley v. Halsey, Cro. Car. Part 2. sect. 10. 148, Jones, 203. (2) Aftorna/ General v. Capel, (4) Rex v. Hoj^per, West on 2 Str. 4S0.; and see 2 Str, 982. Extents, 149. ct seq. Christ. 533.; 4 T. R. 4 II . and see ante, page .349. (5) Chap. Xl.^Parte. seel. 10, Y y 4 696 OF RELATION TO THE CCh.16. Notice. How no- tice for- merly con- sidered. When the issuing of a commis- sion to be deemed notice. Corpora- tion or committed an act of bankruptcy. A most important branch of the law of relation, therefore, remains to be considered, viz. wliat amounts to notice of a previous act of bankruptcy- sufficient to avoid a payment to, or a dealing with, the bankrupt — which payment or dealing would otherwise- have been good. The notice^ which would deprive a party of the pro- tection given him by former acts of parliament, has been defined very differently in the various statutes ; some confining it to actual kno'wledge {I) of an act of bankruptcy, while others extended it to notice " of an act of bank- ruptcy, or insolvency" (2), or of " bankruptcy, insolvency, or stoppage of payment." (3) And by Sir Samuel Romilly's acts it was Jiist declared, that the mere striking of a docket (4) — and afterwards, that the issuing of a com- mission only (5) — should amount to constructive notice of an act of bankruptcy; — this last provision being in con- formity with the old rule of law, namely, that the issuing of a commission was a public act, of which all the world was bound to take notice. (6) But by section 83. of the new statute, the issuing of a com- mission is only declared to be notice of a prior act of bank- ruptcy (if an act of bankruptcy has been actually committed before the issuing of the commission) — provided the adju- dication of bankruptcy shall have been notified in the London Gazette, and the person to be affected by such notice may reasonably be presumed to have seen the same. By section 85., also, if any accredited agent of any body (1) 1 Jac. 1. c. 15. s. 14. (2) 19G. 2. c. 19. S. 14. (.3) 46 G. 5. C. 135. S. 1. (4) Ibid. s. 3. (5) 49 G. 3. C. 121. S. 2. (6) Hitchcock v. Sedge wicfc, 'iVern. 156. Watkins v. Maimd, 5 Camp. 308.; but see Sowerby v. Brooks, 4 B. & A. 523. in which Lord C.J. Abbott very justly ob- serves, that the words " understand or known" in the statute 1 Jac. 1 . c. 15. s. 14. (upon the construction of which that case was decided) must be construed according to their ordinary and popular sense, viz. an actual understanding or knowledge, and not a knowledge to be implied by force of law (from the secret issuing of an unknown commission) against the truth of the fact. Sect. 5.] , ACT OF BANKRUPTCY. 697 corporate or public company shall have had notice of any Notice. act of bankruptcy, the corporation or company shall be public thereby deemed to have had such notice. company. The wo//c^, as defined by the new statute (1), is simply How no- " notice of a prior act of bankrtiptcy ,-" — and the only ^^^, speci- constructive notice is the issuing of a cominissioti, provided act. a previous act of bankruptcy has been actually committed, and the adjudication has been notified in the Gazette, and the person to be affected by the notice may reasonably be presumed to have seen the same. The only actual notice, therefore, that will now prejudice a party, being confined to the act of bankru-ptci/, it becomes immaterial to consider those cases, decided with reference to the former statutes, and determining what would and what would not amount to notice of insolvency (2), or stoppage of payment. When the act of bankruptcy consists in the execution As to no- of a fraudulent deed, it has been determined that notice ^}^^ °^* . . . traudulent of the deed by a person, who is not a party to it, is not convey- sufficient notice of the act of bankruptcy. (S) ^"*^^' (1) See Sections 81, 82. 50. (3) Bead v. Ward, 7 Vin. il9. (2) Anon. I Camp. 492. n. Bayly V. Schqfieldy 2 M. & S. 338. 698 CHAP. XVII. OF SET-OFF. Sect. 1. Of the Right of Set- off generally in Banhruptcy. 2. Consti-udion of the Term ''• Mutual Credit," and herein of Cases of Trtist and Deposit. 3. As to joint and separate Dehls. 4. Set-q^f between particular Persons. 5. Set-off" on Bills and Notes. 6. Of an equitable Set-off. 7. Of the Mode of balancing the Accou)Us. Provision of the new statute. Section I. Of the Right of Set-off generally in Banhuptcy. 13y the 50//i section of the new act it is provided, that where there has been mutual credit given by the bankrupt, and any other person ; or where there are mutual debts between the bankrupt and any other person, the commis- sioners shall state the account between them, and one debt or demand may be set off against another, notwithstanding any prior act of bankruptcy committed by the bankrupt before the credit given, or the debt contracted by him ; and what shall appear to be due on either side on the balance of the account shall be claimed or paid on either side respectively ; and every debt or demand, made prove- able by the statute against the estate of the bankrupt, may also be set off in manner aforesaid against such estate, provided that the person claiming the benefit of such set-off had not, when such credit was given, notice of an act of bankruptcy committed by the bankrupt. Sect. 1.] or SET-OFF. 699 This section has consolidated the provisions of the 5 G. 2. Hight of. c. 30. s. 28. and the 46 G. 3. c. 135. s. 3. ; but it has also AlterT"" made some alterations in the enactments of those statutes, ations in which it may be as well in the first place to notice. Firsts the i^ credit need not now be given (as by the 46 G. 3. c. 135.) two months before the date of the commission ; therefore, the accounts may now be taken down to the date of the commission. (1 ) Secondly, the notice, by which the party is to be affected, is confined simply to notice of an act of bank- ruptcy ; and it is now, therefore, immaterial to inquire whether the party had notice that the bankrupt was insol- vent, or had stopped payment. Thirdly, the statute de- clares that every debt or demand, ijohich may he proved, may also be set off against the bankrupt's estate. Consequently all those cases (2), which have been decided not to be within the provision as to mutual credit, because the debt was contingent, would now meet with a different decision ; as such debts may now be proved under t\\e. 56th section of the new statute. But, with this exception, it does not appear that there is any provision in the new statute to constitute a case of mutual credit, which was not so be- fore. (3) And as the accounts may, also, now be taken down to the date of the commission, provided the party had no notice of an act of bankruptcy when the ciedit was given, he will not now be deprived (as he was before the statute) (4) of his right to retain a payment made to him by the bankrupt after an act of bankruptcy, for the purpose of taking up bills not due, but which he has made himself liable to pay when due, for the bankrupt's accommodation. The right of set-off in Bankruptcy did not, as has been As to frequently supposed, originate in the statute law; but was sj^fo^.*^^ (1) See Sout/nvood v. Taylor, 301. Sampson v. Burton, 2 B. & 1 B. & A. 471. as to the effect of B. 89. Dobson v. Lockhart, 5T. the 46 G. 3. R. 153. (2) Ex parte Groovie, 1 Atk. (3) Eden, 184. 115. Hancock v. Enlwistle, 5 T. (4) Tamplin v. Biggins, 2 C-dn}[). 11. 455. Ex parte Whiilakcr, J Robc, 51-'. 700 OF SET-OFK. [Ch.17. Right of. more ex- tensive in bank- ruptcy than under the gene- ral sta- tutes. (before any interference of the legislature) adopted in prac- tice by the courts of law, which permitted a creditor to set off his debt against his bankrupt debtor, and to pay over or prove the balance, as the case might happen to be. (1) And this remedy or right of set-off of the creditor of a bankrupt is more comprehensive and effectual, than the general law of set-off under the statutes of the 2 G. 2. c. 22., and 8 G. 2. c. 24. — in the construction of which, indeed, doubts were formerly entertained whether those statutes could be extended to assignees under a commission of bankruptcy (2), on the ground that there was no mutual debt between the assignees of a bankrupt and the creditor. But, though the right of set-off in bankruptcy is perfectly distinct and independent from that given by the general statutes of set-off, yet the latter are held now to extend to actions by assignees, concurrently with the provision of the bankrupt law as to cases of mutual credit. (3) It is not, however, intended to discuss every case that has been de- cided under the general statutes of set-off, but only those in which any point of bankruptcy has been agitated in the course of the decision. (I) Anon. 1 Mod. 215. Chap- man V. Derby, 2Vern. 117.; and see 1 Christ. B. L. 279. 499. 1 Goodinge B. L. 190. The first statute that took notice of the right was the 4&5Ann. c. 17. which was continued tor five years by the 7 Ann. c. 25. s. 4. This last Stat, was re-enacted with some va- riation by the 5 G. 1. c. 24., which, also, was but a temporary act ; and after its expiration, a similar but more effectual provision relative to mutual debts and credits was in- corporated in the 5 G. 2. c. 30. s. 28. Next came the additional provision of the 46 G. 3. ; which last provision, together with that of the 5 G. 2. seem to have formed the ground-work for the enactment in the present statute. (2) Ryall V. Larkin, 1 Wils. 1 55. (5) Ridout V. Broiigh, Cowp. 133. Lock v. Bennet, 2 Atk. 48. Sect. 2.] OF SET-OFF. 701 Section II. Construction of the Term " Mutual Credit,^* and herein of Cases of Trust and Deposit. The above enactment of the new statute, we perceive, As to con- (in accordance with that of the 5 G.2. c. 30. s. 28.) relates «tr"f''o" ^ ' ot the term not only to mutual debts, but to mutual credits. There are " mutual many cases, therefore, to which a set-off may be extended ^'■^'^*^' where an action would not lie, and where a court of equity even could not upon a bill decree an account. (1) The statute, also, is not to be construed as confined to dealings in trade only, or to cases where there are mutual running accounts ; for it is but natural justice and equity, that in all cases of mutual credit, only the balance shall be paid. (2) The term " mutual credit" has, indeed, always received from the courts a very liberal construction, and has likewise not been confined merely to pecuniary demands ; for, as Lord Hardwicke observed, it would be hard where a man has a debt due from the bankrupt — and has at the same time goods of a bankrupt in his hands, which cannot be got from him without the assistance of law or equity — that the assignees should take them from him without satisfying his whole debt. (3) This observation, however, must be con- Asapplic- fined to a case, where a party has (either by usage, custom, ^ble to a or contract) a lien for his general balance on goods of a x^^x^ lifn' bankrupt deposited with him — or, where the credit given o^" where by the delivery of the property must in its nature terminate must'ter-' in a debt. (4) The right oi set-off \s, indeed, aX cominon minatein law always incident to the right of lien ; but the amount ^ of the set-off will depend upon the nature and extent of the lien. Thus, a Factor, having by law a lien for his general Factor. (l) Ex parte Deeze, 1 Atk. 228. (2) Lanesborough v. JoneSy I P. French v. Fenn, C. B. L. 554. At- Wms. 325. hnson v. Elliott, 7 T. R. 578. (5) 1 Atk. 228. (4) Rose V. Harty 8 Taunt. 499. 702 OF SET-OFF. [Ch. 17. Mutual balance, will have a ri(>ht to set off the wJiole of his debt due ^ ' from the bankrupt; and (in his case) not only by virtue of such general lien, but also by reason that the goods de- livered to him were delivered for the purpose of sale, and therefore constituted such a credit as must terminate in a Fuller. debt. But a Fuller or a Miller, who have only a particular Miller. . ' - r lien, and to whom the cloths and the corn are delivered, not for the purposes of sale, but merely to be respectively dressed and ground — a delivery, consequently, which is not such a credit as must terminate in a debt — have neither of them a right of set-ofF, beyond the amount of their re- spective charges for their labour bestowed on the specijic goods remaining in their possession. They have, therefore, not a right of set-ofF under the present, or indeed under any of the former statutes relating to bankrupts ; for the term " mutual credit" cannot be extended (1) to a case of this description. The above observation, indeed, of Lord Hardwicke in Ex parte Deeze, has been commented upon in many de- cisions, as if it was applicable to every case of deposit or mutual trust, whatever may be the object or purpose of the deposit or trust. But Lord Chief Justice Gibbs has clearly shown in the above-mentioned case of Rose v. Hart, that though something more is meant by the term mutual credit than the words mutual debt import, — yet as the statute says that upon stating the account one debt may be set against another, this implies that the legislature meant such credits only as must in their nature terminate in debts. As when a debt is due from one party, and credit is given by him to the other for a sum of money payable at a future day, and which will the7i become a debt — or where there is a debt on one side, and a delivery of property with directions to turn it into money, on the other ; — in such cases, the credit given by the delivery of the property must in its nature terminate in a debt ; the balance will be taken on the two (1) Rose V. Hart, 8 Taunt. 499. Sect. 2. J OF SF/r-oFF. 70S debts, and the words of the statute will in all respects be Mutual complied with. But where there is a mere deposit of pro- perty, without any authority to turn it into money, no debt Case of can ever arise out of it ; and, therefore, it is not a credit ""^^'j^ ^~ within the meaning of the statute. This principle, his Lordship says, will support all the cases that have been determined on the subject; that is, all those cases in which there was no evidence of the right of a lien for the general balance. The general right of lic7i depends upon totally different Distinc- principles from the doctrine of set-off i7i Bankruptcy — t'^^enl' though in many of the reported cases it is not very clear, and set-off. whether the determination proceeded in respect of the set- off, or the lien. Where the creditor is entitled to a general lien, then he may, independently of any statute as to set-off or mutual credit, retain the goods in his possession until he has been satisfied his whole debt. As where a packer had Packer, goods of the bankrupt's in his hands, and there was evi- dence of a custom that packers had a general lien upon all goods in their possession, it was decided, that he might re- tain the goods for the whole of his demand. (1) But in the Miller, case of the miller before mentioned, who had corn and flour of the bankrupt's in his possession, and where there was no evidence of any custom in the trade entitling him to a ge?ieral lien, he was only allowed to retain for the price of grinding the specific corn. (2) These cases, therefore, seem to establish the position that, unless on the ground of usage or positive agreement, a depositary of goods for other (1) Ex parte Z)^ c^"- ' ./ ' ' not be set (1) Meglioruchi v. Royal Ex- (.3) Nelson v. London Assurance change Asstirance Company, 1 Eq. Company, 2 Sim. & S. 292. Ca. Ab. 9. (4) Ex parte Blagdcn, 2 Rose, (2) Gibson v. HudsoiCs Bay 249. 19 Ves. 465. Payidon v. Company, 1 Str. 645. IVat/ccr, B. N. P. 1 79. 714 OF SET-OFF. [Ch.17. Particular persons. oft' in an action by or against the hus- band. Legacy to the wife. Insurance broker. set off in an action brought by the husband alone — unless, indeed, he has promised to pay the debt after marriage, and thereby made it his own. (1) But where a legacy was given to the wife of a bankrupt, and she died without asserting any claim to it, — the Court held, that as at law a legacy to the wife is a legacy to the husband (though subject in equity to her right to a provision) — this legacy, being discharged of that equity in consequence of her death, would have become the absolute property of the husband if there had been no bankruptcy : that, as against the husband, the executor would have had a right to satisfy the legacy, by writing off so much of the debts due from the husband : and that he must have the same right against the assignees. (2) And, in a subsequent case of this de- scription, the executors were allowed to set off a debt due from the bankrupt to the testator, against a moiety of a legacy given to the wife — the other moiety being ordered to be settled on the wife for life, with remainder to the issue of the marriage. (3) The right of a broker, who effects a policy of insurance, to set off the money due for losses or returns of premium against the claim of the assignees of the underwriter, de- pends in a great measure upon the fact, whether or not the broker receives a del credere commission — and whether he effects the policy in his oiion name, or in that of his principal. If a broker acting under a del credere commission effects the policy in his ow)i name, the right of set-off is allowed ; for a commission del credere being an absolute engagement to the principal from the broker, and rendering him liable at all events, places the broker himself in the nature of a principal as to the underwriter, and clothes him with all the rights of the principal, unless the latter steps in between him and the underwriter. (4') And the same is also held (1) Wood V. Akers, 2 Esp. 594. (2) Ranking v. Barnard, 5 Mad. 2. (5) Ex parte O'Farrall, 1 G. & J. 34. ; but see Carr v. Taylor, lOVes. 578. (4) Grove v. Dubois, i T. R. 1 12. Bizc V. Dickason, ibid. 287. Sect. 4.] OF SET-OFF. 715 under the general statutes of set-off". (1) But where the Particular broker does not act under a del credere commission, lie is P ^^^°^^- then not entitled to such right of set-off; for, in this case, the losses or the returns of premium are a debt properly due to the assured ; and the broker, even with respect to the underwriter, can only be considered as an agent, whose authority (by the bankruptcy of the underwriter) is virtually countermanded and extinct. Therefore, where a broker (without such a commission) was indebted to an under- writer for premiums due upon policies subscribed by him before his bankruptcy, he was held to be not entitled to set off" afjainst the assignees of the underwriter returns of premium due upon the arrival of ships, whether the ships arrived before (2), or subsequent to the bankruptcy, (3) The Court of Common Pleas in these two cases (contrary to the opinion of the Court of King's Bench (4), which considered the broker, as to a return of premium, a sort of stakeholder between the underwriter and the assured) treated the return of premium as a contingent debt, due from the underwriter to the assured — and the broker, as merely the agent of the underwriter to receive the premium for him, and for nothing else — holding, therefore, that the broker could not, after the underwriter's bankruptcy, make himself the agent of the assignees, for the purpose of detaining money to be paid by the underwriter to the assured. (5) And even where the broker acts under a del credere commission, yet if he discloses the name of his principal to the underwriter, he will not then be entitled to this right of set-off". (6) A broker, however, may have the same right of set-off" by Broker's virtue of a lien (7), as that which he possesses by virtue of rL'^pt of (1) Weinholt v. Roberts, 2Csi\n^. (5) Per Mansfield C. J., 4 Taunt. 586. 544. (2) Minettv. Forrester, 'i'Taxmt. (6) Koster v. Eason, 2 M. & S. 541. 112. Morris \. Cleasby, I M.&, {5) Goldsckmidtv.Li/on,4Taunt. S. 576. 4 M. & S. 560. Peele v. 534. Nortkcote, "i Taunt. 478. {4) Shee v. Clarkson, 12 East, (7) And see ante, 701. 507. a lien. 716 OF SliT-Ol'F. LCh. 1 Particular 2)ersons. Under- writer. a commission del credere — as where, for instance, he ac- quires an interest by making advances to his principal on the credit of a particular consignment of goods. There- fore, where brokers (not acting under a commission del credere) effected policies on account of their principal, but in their own names, and accepted bills drawn on them on account of goods consigned to them, which were lost before their arrival, — it was held, that the brokers might set off the amount of such losses, against the claim of the assignees of the underwriter for the premiums due, in respect of his subscription to the policies of insurance on the goods. So, as we have already seen ( I ), a broker cntrjisled by his prin- cipal with a policy to receive an average loss under it, though he receive it after the bankruptcy of his principal, has a right, by reason of his lien on the policy, to set off money due to him from the bankrupt for premiums, against the money he received from the underwriters (2) ; and that the receipt of the average loss after the bankruptcy was no objection to his right of set-off; as the debt was due to the bankrupt before the bankruptcy, though not ascertained till afterwards. And, indeed, in all cases o^ mutual trust and- credit (as has been before observed) — where the trust or credit must terminate in a debt — any other person, as well as a broker, has a right of set-off under the statute, in respect of a balance due to him from the bankrupt. (3) With respect to the right of set-off by an under'writer against the assured — it is now settled by the unanimous decision of the twelve judges (though the point was shortly before decided differently in the Common Pleas (4 ) ) — that an underwriter may set off, against the assignees of the assured, the amount of premiums due to him before the bankruptcy, against a loss accruing after the bankruptcy. The case was argued as one of nmtual credit under the (1) Ante, 705. (2) Whitehead v, Vaughan, ante, 705. (.3) See ante, 706. (4) Glennie v. Edmniuls, 4 Taunt. i75. Sect. 4.] OF SF.T-OFF. 717 5 G. 2. c. 30. s. 28. ; but the decision of the Judges pro- Particular ceeded on the equitable construction of the 19 G. 2. c. 32. ^ ^'"^°"^' s. 2. (which is now incorporated in the 53d section of the new act) enabling the assured, under a comniission of bankrupt against an underwritei", to claim before the hap- pening of a loss, and after a loss to prove and receive a di- vidend. And the Judges were of opinion — that, as under this statute the set-ofFwas to be allowed to the assured, in the case of a bankrupt underwriter — so, by parity of reason- ing, there ought to be the same allowance to the under- writer, in the case of a bankrupt (1) assured. But an underwriter cannot set off a general balance due to himself from the broker, at the time of the adjustment of a loss, against the claim of the assured. Therefore, where a broker became bankrupt after the adjustment of a loss with the underwriter, though he had upon that occasion struck the underwriter's name out of the policy and the adjust- ment, in consideration of the balance which he himself owed the underwriter, — yet the latter was held to have no right of set-ofF, in an action brought against him by the assured, beyond that which was due to him for premiums on the particular policy. (2) For the same reason as applies to the case of a broker(3) — Factor. so, where a. factor acts under a del credere commission, and sells goods in his o'wn name, concealing the name of his principal, the person dealing with him has a right to con- sider him to all intents and purposes as the principal ; and though the real principal may afterwards appear, and bring an action upon that contract against the purchaser of the goods, yet the purchaser may set off any claim he may have against the factor, in answer to the demand of the principal (4) ; and may also plead these facts specially, in support of his right of set-ofF against the demand of the prin- (1) Grahamv. Russell, ^'^dx%\i. (4) Rabone \. Williams, 7T. R. 561. 5M. &. S. 498. 360. in note, George v, Clagett, (2) Todd V. Reed, 3 Star. \ 6. 7 T. R. 359. Escot v. Milward, (3) Ante, 714. ibid. C. B. L. 378. 718 OF SET-OFF. [Ch. 17. Particular cipal. (1) By the recent statute of the 6 G. 4. c. 94., which p ersotis. ennbles a factor to pledge goods deposited with him by his principal, the person (with whom any goods shall have been so pledged) has a right of set-off against the owner, to the amount of the money advanced upon the goods ; and the real owner redeeming the goods is entitled, in case of the bankruptcy of the factor, to set off (2) the amount paid by him for their redemption, against any debt due from him to the factor. Banker. If a banJcer receives and pays money on account of a bankrupt after notice of his bankruptcy, he cannot set off the payments against the receipts, in an action by the assignees. (3) Indorsee oi a bill. Section V. Of Set-off on Bills ajid Notes. With respect to the right of an indorsee to set off a bill of exchange, or promissory note, against the debt owing by him to the bankrupt, a distinction is taken between a bill indorsed i^re, and one indorsed after, the bankruptcy. A bill indorsed before the bankruptcy, we have seen (4), can be set off against a debt accruing from the indorsee to the bankrupt after the indorsement ; for, though the bankrupt might not know when the bill was indorsed to, or came to the possession of the party, yet the bankrupt by sending a bill into the world with his name upon it, gains a credit from every person who takes it afterwards. But a bill indorsed after the bankruptcy cannot be set off; for, notwithstanding the debt (as against the bankrupt) may have existed before the bankruptcy (5), it is not a debt due from him to the (1) Can- V. Hinchlif, 4 B. & C. (3) Ver7io7i v. Hankei/, 2 T. R. 547. 113. 3Bro. 513. (2) Section 6.; and see ante,462. (4) Ante, 708. 480. 15) Marsh v. Chwnbers, 2 Sir. 1234. Sect. 5.] OF SET-OFF. 719 same party as at the time of the bankruptcy ; and though it Sills and is allowed to be proved, yet the right of proof is very dif- " ferent from the right of set-ofF. By the former no new charge is brought upon the estate; but that is not the case in the latter instance ; and a creditor, it has been said, has no right thus to vary the relation in which he stood to the bank- rupt's estate at the time of the bankruptcy, by a transaction ex post /ado with a third party, and thereby put himself in a better situation than the rest of the bankrupt's cre- ditors. ( 1 ) And even where a party, who had indorsed the bill bcfo7-e the bankruptcy of the acceptor, was obliged to take it up afterwards in consequence of the acceptor's bankruptcy, Lord Loughborough held that he could not set of' the bill against a debt due to the bankrupt's estate — though he might j^rot;^ the amount under the commission. (2) It is incumbent, also, on the indorsee to show that the in- dorsement was made before the bankruptcy ; for a case of set-ofFis in the nature of a cross action, in which the party would be obliged to prove every thing necessary to sub- stantiate his demand ; and the time, when the bill was indorsed, would be a material fact in support of his case.(3) Thus, in an action brought by the assignees of a country banker, the defendant cannot set off cash notes payable to bearer and issued by the bankrupt before his bank- ruptcy, unless the defendant shows that such notes also came to his hands before the bankruptcy. (4) But proof, that notes to the amount of the set-ofF claimed came into the defendant's hands three or four weeks before the bank- ruptcy, is sufficient evidence for the jury to presume pos- session of them, without actually identifying them at the time of the bankruptcy. (5) In a case of cross-acceptances, — in order to enable the Cross-ac- holder of the bankrupt's acceptances to avail himself of '^^P^^"^^*- (1) CuUen's B. L. 205.; and see (4) Ibid. Evans v. Prosser, 3 T. R. 186. (5) Moore V. Wright, 2 Marsh. (2) Ex parte Hale, 3 Ves. 304. 209. (3) Lucas V. March, Barnes, 453. Dickson V. Evans, 6 T. R. 57. 720 OF SET-OFF. [Ch. 17. Bills and tliem (in an action by the assignees against himself on his notes^^ own acceptances) by way either of set-off or mutual credit, he must most distinctly prove, either that the obligation on himself to pay the bills so sought to be set off subsisted before the bankruptcy, or that there was a mutual credit created in the origin of the bills. (1) An acceptance, though not due until after the bankruptcy of the drawer, it has been already observed (2), may be set off against a debt due from the acceptor to the drawer. (3) Set-off" by "Where an agent of the bankrupt (being provided with aeamst°'^ funds for that purpose) accepted bills drawn by the bank- drawer, rupt, who paid them away to his creditors — and the holders ce^^or had °^ ^^^ ^^^^^' ^^^^^ ^^^^ became due and before the act of paid a bankruptcy, in order to relieve the acceptor from his composi- responsibility to them, took from him a composition of 10^. bills to the in the pound, and delivered up the bills to the acceptor; — holders. jj. ^^g J^gij^ that as the bankrupt's estate was discharged against any claim of the bill-holders by such composition, the acceptor had a right to set off the full amount of the bills against any claim of the assignees — the transaction being considered, in law, a payment of the whole amount of the bills by the acceptor, and a gift by the holders to the acceptor of the difference between what was actually paid, and the amount of the bills. (4) Section VI, Of an equitable Set-off. As the Lord Chancellor in Bankruptcy exercises an equitable^ as well as a /g-^a/ jurisdiction, he will extend that jurisdiction to cases of set-off, that are not within the imme- (1) Ouchterlony V. Easterly, (5) Ex parte Wagstaff, IsVes. 4 Taunt. 888. 65. (2) Ante, 706. (4) Stonchouse v. Read, 3 B. & C. GG9. Sect. 6.] OF SET-OFF. 721 diate operation of the statute, upon the same principle as Equitable. where there are mutual demands between parties, which cannot be made the subject of set-off at law, u court of equity will frequently interpose between die parties upon equitable principles, and determine what is justly due from one party to the other. (1) As where a contract was Onanusu- entered into, upon which one of the parties had taken usu- "^"^ ^'^"" ^ ^ tract. nous interest, — though a party to such a contract could not have enforced it, or set off the sum due upon it at law, Lord Hardwicke permitted the sum really advanced upon it to be set off in account in a suit of equity. (2) So where a lady directed her bankers to sell certain ex- Set off of chequer annuities, and to invest the produce in nav}^ annu- separate ities, and the bankers informed her that they had followed a<^ain9t a her directions, and an entry was made in her banking book, joint and in which credit was given to her regularly for the divi- ^^^ ^n jhe dends : — several years afterwards her brother, having a ground of r 1 separate account with the bankers, proposed to borrow of *^^" them 1000/., upon the security of the joint and several note of himself and his sister, which was agreed to, and the note given accordingly: — the bankers became bankrupt; and it then appeared that they had not purchased the navy annuities, and that the documents which they had exhibited to the petitioner were false : — the assignees of the bankers brought an action against the brother alo7ie upon the note, upon which the brother and sister petitioned to be at liberty to set ofF the debt due from the bankers to the sister against what was due to them upon the note ; — and Lord Eldon, upon the ground of the Jraud practised upon the sister, re- strained the assignees from proceeding at law, and ordered the set-off as prayed for. (3) When this' case, however, was subsequently cited as an authority. Lord Eldon ob- served, that there were certain difficulties in the decision (l) Diiiwiddie v. Bailey, 6Ves. (2) Ryall \. Rowles, 1 Ves. 37 5. 136, Toivnrow V. Benson, 5M.VLd. (3) Ex parte Stephens, 1 1 V^es. 203. Jmnes V. Ki/nnier, 5 Vcs. 108. 24, 3 A 722 OF SET-OFF. [Ch. 17. Equitable, of it : and that but for the fraud, he should have doubted much whether his decision was right. (1) The like gut although there can in general be no set-ofF(as we joint debt, ^'^ve already seen (2) ) between joint and separate debts, to prevent yet upon equitable principles, and independently of any " ^"'^' case of fraud, such a set-off, in order to prevent circuity, will be occasionally allowed. Thus, where A. (upon enter- ing into partnership with B.) applied to his bankers for a loan to constitute his capital, to which they consented, upon condition that B. should join in a security for the re- payment of the loan — and A. and B. accordingly gave the bankers their joint and several bond : — the partnership opened a joint account with the bankers, who also coii- tinued the private bankers of A. : — the bankers became bankrupt, when the balance on the joint account, arising from this loan, was against A. and B., but A.'s private account was in Ids favour ; — under these circumstances, A. and B. were allowed to set off this private balance due to A., against the joint debt due from them both to the bankers ; for though A. could not at law have pleaded a set-ofF of this private balance due to him alone, in an action brought against him and B. jointly on the bond, yet the moment the bankers obtained judgment, A. could have then brought his action against them for his separate debt ; and if B., the surety, had paid the joint debt, A. would, of course, have then repaid him by the money recovered in that action ; consequently, the joint debt due from A. and B. on the bond was nothing more, as Lord Eldon observed, than a security for the separate debt of A.; and upon equitable consideration, a creditor, who has a joint security for a separate debt, cannot resort to that security, without allowing what he has received on the separate account, in respect of which the joint security was given. (3) (l) Ex parte Blagden, 2 Rose, (.3) Ex parte Hanson, 12 Ves. 251. 19Ves.467. 346. 18 Ves. 2,52. 1 Rose, 156.; C2) See ante, section 3. and see Vulliamy v. Noble, 3 Mcviv. 618. Sect. 6.] OF SET-OFF. 728 Upon the same principle, where two partners gave a Equitable. joint and several bond to a creditor, who afterwards be- Creditor came indebted to A. (one of the partners) ; and B., the restrained other partner, becoming bankrupt, the creditor proved the c'^edin^ln bond under B.'s commission, and then brought a joint a. joint ac- action against A. and B., to which B. pleaded his certifi- ^""allow- cate, — an injunction was granted to restrain the creditor ing a set- from proceeding in the action, which being a joint one, A. ^^ ^^ would have been precluded at law fi'om setting off the se- debt. parate debt due to himself. (1) Where it was agreed between A. resident in London, Set-off of and B. who resided in the West Indies, that A. should refemil^. accept bills drawn upon him by B. to a specific amountj upon A.'s having bills of lading filled up to his order for colonial produce — and that after deducting A.'s advances, &c. the balance was to be paid to C, for whom B. acted as agent in the West Indies : — B. accordingly shipped goods with a bill of lading filled up to B.'s order, previous to the arrival of which C. became a bankrupt : — the captain re- fusing to deliver the goods to A., the latter was obliged to sue him in trover, and the cause was referred to arbitra- tion : — in an action by the assignees of C. against A. for the balance of the proceeds of the goods, it was held, that A. was entitled to set off against such balance the costs of the reference, as well as the costs of the cause ; for that being authorized by the bill of lading to act for the benefit of all concerned, and to do all that was necessary to obtain possession of the goods, there was nothing to show, that a reference was an improper step to effect that object. (2) Costs in equity, which before the new act could not be Costs in proved under a commission against a party, unless they ^ ^' were taxed (3) before the bankruptcy, could still less be the subject of set-off. (4') But as the 5Slh sectioji now enables (1) Bradley v. Millar, 1 Rose, (5) Ex parte Sneaps, C. B. L. 273. 192. Rex v. Davis, 9 East, 320. (2) Curtis \. Barclay y 5 B. & C. (4) Ex parte Thotms, 15 Ves. 141. 539. 3 A 2 724 OF SET-OFF. [Ch. 17. Accounts, a party, who has in any suit at law or in equity, or in any ~ proceeding in bankruptcy or lunacy, obtained a judgment, decree, or order, for any debt or demand proveable under the commission, to prove also for the costs, although not taxed at the time of the bankruptcy; — so, it is apprehended, he will now be permitted to set off such costs against any demand of the assignees. Whether an account can be dis- puted, after set- off allowed by the commis- Section VII. Of the Mode of balancing the Accounts. In cases of mutual credit between the bankrupt anc? persons who have dealt with him before his bankruptcy, there are two modes b}^ which the accounts may be ba- lanced, viz. either by the (1) commissioners, as directed by the statute, or upon the trial of an action at law. When a debt has once been liquidated before the commissioners, Lord Mansfield held, that it could only afterwards be liti- gated by an application to the Great Seal — the only way to question the proof of a debt being by petition to the Lord Chancellor. (2) But where assignees brought an action against a defendant, who pleaded a set-off that covered the whole demand claimed by the assignees, and tendered the proof of a debt before the commissioners, as evidence of the subject matter of the set-off, — Lord Ellenborough re- fused to receive it, saying that the commissioners could neither be considered as having done a binding judicial act, nor as having represented the assignees, and thus as- sented to the defendant's demand ; and that it would only be sufficient evidence against the assignees, if it could be (1) The 4 & 5 Ann. c. 17. en- included them again; but the new abled the assignees as well as the statute once more confines the commissioners, to balance the ac- power to the commissioners, counts. The 6 G. 1. c. 1 1. omitted (2) Brown v. Bullcn, Doug. 407. the assignee? ; the 5 G. 2. c. 30. Sect. 7.] OF SET-OFF. 725 shown that tkei/ acknowledged that the proof was just. (1) Accounts. In such a case, however, the Lord Chancellor, if he thinks the set-off ought to be allowed, will (as he did in this) upon petition grant an injunction tQ restrain the assignees from further proceedings at law. (2) In balancing the accounts, Lord Hardwicke held, that Computa- where debts carried interest, the commissioners ought to y°" ° *'*" ' ^ ° terest. stop interest on both sides of the account at the time of the bankruptcy : or to compute it on both sides till the final settling of the account. (3) This rule has been objected to by a learned writer ("i) on bankruptcy; but it does not ap- pear by any subsequent decision to have been departed from. (1) Pirie v. Mennett, 3 Camp. (4) See Christian's B. L. Vol.1. 279. 524. where it is contended, that (2) Ex parte Mennett, 1 Rose, Lord Hardwicke's rule ought only 395. to be adopted, when the balance (3) 1 Atk. 80. is in favour of the bankrupt's estate, and not where it is the other way. 3 A 3 726 CHAP. XVIII. Of SUITS AT LAW AND IN EQUITY BY AND AGAINST THE ASSIGNEES. Sect. 1. Of Suits in Equity. 2. Of Actions at Latio ,- and herein of Proceedings agai?ist the Sheriff". 3. Effect of the Bankruptcy upon Suits previously commenced by the Bankrupt. Section I. Of Suits in Equity. It is not the purpose of this chapter to consider every case, in which the assignees may have a right of action, or suit, against persons in possession of the bankrupt's property ; that inquiry, as it is conceived, more properly appertaining to the division of a former chapter (1), in which all the various species of property passing to the assignees by virtue of the assignment, and the different circumstances vmder which they can claim it, have been already fully considered. The object we have now in view is, therefore, to treat more particularly of the forms and proceeditigs which the assignees must adopt in the exercise of their right, in order to recover the different kinds of property which the bankrupt was previously entitled to; — or which he would have been entitled to, if he had not become bankrupt. The whole of the bankrupt's estate being vested in the as- signees by the assignment as fully as it was in the bankrupt himself, they have the same remedies to recover it either by (1) Chapter XI. Sect. I.] OF SUITS IN EQUITY. 727 suit or action (1) — with this exception, however, that they are by the S%th section restrained from commencing suits in equity without the consent of the major part in value of the creditors (who have proved under the commission) present at some meeting, of the purport whereof twenty-one days' notice shall have been given in the London Gazette ; or if one third in value of such creditors shall not attend at such meeting, then the assignees must procui'e the consent in writing of the commissioners. And the same previous consent, we have before seen (2), is necessary to enable them to compound any debt, or to submit any dispute to arbitration. Creditors cannot give the assignees a general power to prosecute suits, or submit matters to arbitration at their own discretion ; but there must be a meeting of creditors as directed by the statute, to consider of each particular suit, or case for arbitration. (3) But when the meeting is pro- perly advertised, the majority in value of the creditors pre- sent have a right to bind those who are absent. (4) If the assignees, without the consent of the creditors regularly obtained in the manner before mentioned, take upon themselves to file a bill against any person, the de- fendant may plead that the suit was not instituted with the consent of the creditors at a meeting pursuant to the requisitions of the statute. (5) Where the majority in value of the creditors refuse to permit the assignees, to institute a suit in equity, it has been held, that any creditor may in that case bring one, but at the peril of costs. (6) Thus, where the majority of creditors had dissented from bringing a suit to redeem a lease, and the other creditors filed a bill against the mort- gagee and the assignees for that purpose, — redemption was Cannot be commenc- ed without consent of creditors ; but they cannot give assig- nees a general power. Majority present binding. When as- signees sue without consent. When cre- ditors re- fuse to assent. (1) Bl. Com. 485. Hussey v. Fiddall, 6 Mod. 524. 3 Salk. 59. (2) Ante, 325. (3) Ex parte Whitchurch, I Atk. 90. 3 i (4) Cooper v. Pcpys, 1 Atk. 106. (5) Ocklestone v. Benson, 2 Sim. &S. 265. (6) Franklyn V. Fenn, Barnai'd. Rep. 30. 4 728 OF SUITS IN EQUITY. [Ch. 18. accordingly decreed (1); and it was said, that this was like the case of an executor, who being the proper party to get in the estate, the Court will not in general suffer the cre- ditors of the testator to file a bill in equity to get it in ; but that if collusion is charged, it is otherwise. (2) When If the interests, however, of the creditors are not affected consent — ^^ if the object of the suit by the assignees is to enforce not reqiu- -^ _ , •' . '^ site. a mere pej'sona I claim of indemnity, then the consent of the creditors will not be necessary to the institution of the suit. All the as- Nor need all the assignees be plaintiffs ; for if any refuse to signees j^jj^ jj^ ^y^^ gyjj-^ jj^gy ^^^y [3^ lyj^de defendants (3) ; and the sue. others would not be prevented from asserting their rights. Bankrupt It is not, now, necessary, that a bankrupt should be made need not ^ party to a bill against his assignees (4) ; though the con- party to trary was formerly held. (5) But, though it is not necessa7y the suit. that the bankrupt should be joined in the suit, it is not a ground of demurrer if he is made a party to it, more especially when he is charged as a confederate in a fraud. As where a bill was filed against a bankrupt and his assignees, stating a fraudulent bankruptcy concerted to defeat the plaintiff's execution, and praying a discovery and an injunction against an action threatened by the assignees — and the bankrupt demurred, alleging that he was not concerned in the suit, and that the discovery was matter of evidence between the plaintiff and the other defendants, to which he might be examined as a witness; — Lord Loughborough said, tiiere was no pretence for the demurrer, which was accordingly overruled. (6) And it seems to be generally understood, that if any discovery is sought of the bankrupt's conduct de/orc he became (1) Ibid. 311. note. Co/Z^t v. WoUaston, (2) See the cases on this subject 3 Bro. 228. Griffm v. Archer, cit. collected in t!ie notes to the case of 2 Vcs. jun. G45. Whitworth v. ElmsRe v. iWAulaj/, 3 Bro. C. C. Davis, 1 Ves. & B. 545. L/01/d v. 624. Eden's edition. Lander, 5 Mad. 282. (3) Wilkins v. Fry, 1 Meriv, 1. (5) Sharp v. Gamon, 2Vern.52. 2 Rose, 371. (6) King V.Martin, 2 Ves. jun. (4) Begolls V. Ward, 2 P. Wms. 641. Sect. 1.] OF SUITS IW EQUITY. 729 bankrupt, he must answer to that part of the bill for the sake of discovery, and to assist the plaintiff' in obtain- ing proof; though his answer cannot be read against his assignees. ( 1 ) Where a mortgagor becomes bankrupt, and a bill of Bill of foreclosure is filed against him and his assignees, the '"'"'^'^lo- Court will not, on the application of the assignees alo?ie, against a make an immediate decree under the 7 G. 2. c. 20.(2) bankrupt Where a bill was filed by a creditor (upon a debt jjii 5, ^ accruing qfic7- the bankruptcy) against the assignees, as by a crc- well as the executor of the bankrupt, for an account (on ,°^ "" * , ,,.,,. , \ 1 . , debt after the ground or there bemg a surplus), and to restrani the the bank- assignees from paying the surplus to the executor, and the ruptcy. assignees demurred to the bill ; — the demurrer in this case was allowed, as the executor only was liable to the cre- ditor, and the assignees to the executor. (3) Upon a bill filed by the assignees for the discovery of a When bankrupt's effects, the defendants will not be permitted to ^'^'ei^ants not per- look into their depositions taken before the commissioners, mitted to to assist them in putting in their answer. (4) refer to In case of the death, or removal, of the assignees, the sitions. new assignees were obliged before the recent statute, to Suits will file a supplemental bill to entitle them to the benefit of the b^\he^^^ proceedings in a suit begun by the former assignees ; for death, or in a case of this kind, where other assignees were by order ^^™°^^* °' . , f> I 1 assignees. of court put into the room or those who were dead or dis- charged, it was held, that there was no privity between the bankrupt and the new assignees; or, at least, but an artificial one, and therefore that they could file no bill of revivor. (5) But now by the 67tk section of the new statute, whenever an assignee dies, or a new assignee is chosen in the manner specified in the act, no action at law or s^iit in equity shall be thereby abated ; but the Court may, upon the sug- (1) Mitford on Pleading, 142. (s) Uttersonv.Mair,'\Bx 0.210. (2) Garth v. Thomas, 2 Sim. & 2Ves. jun.95. St. 188. (4) Bodcn v. Dellow, 1 Atk.288. (5) Anon. 1 Atk. «8. 730 OF SUITS IN EQUITY. [Ch. 18. gestion of such death, or removal, and new choice, allow tlie name of the surviving; or new assignee or assignees to o o O be substituted in the place of the former; and such action or suit shall be prosecuted in the name or names of the surviving or new assignee or assignees, in the same manner as if he or they had originally commenced the same. How as- And by section 89. in any commission against one or oneTart*- "^^re of the members of a partnership, the assignees may, ner may upon obtaining the order of the Lord Chancellor, prosecute *"^' any suit or action in the names of such assignees, and of the remaining partner or partners against any debtor of the partnership ; and may obtain such judgment, decree, or order, as if the action or suit had been instituted with the consent of the other partners. Section II. Of Actions at Larv, a?id herein of Proceedings agaiiist the Sheriff. Assif^nees The 6Sd section of the new statute, as we have already may sue in seen ( 1 ), has given the commissioners power to assign (among names • ^^^ bankrupt's other property) all debts due to him ; which are declared to vest in the assignees as fully, as if the as- surance whereby they may be secured had been made to the assignees themselves ; and it has also given them the like remedy to recover the debts in their own names, as the bankrupt himself might have had. This is a peculiar privilege possessed by the assignees of a hankriq^t; for every other assignee of a debt is obliged at law to sue for the recovery of it in the name of the assignor. (2) (1) Ante, 385. name for a chose in actioti, that sta- (2) In like manner a trustee tute conveying only a right of gro- under the Scotch bankrupt act perti/ to the trustee, and not a (the 54 G. 3. c. 157.) cannot in an right of suit. Jcffcry v. M'-Tag- English court of law sue in his own gart^ 6 M. iV S. 126. 8eCt. 2.] OF ACTIONS AT LAW. 7Sl Iff however, u bond is made to a trustee in trust for except the bankrupt, the assignees cannot then bring the action in ^ *^"' their own names, but must, in such a case, sue in the name of the trustee. ( 1 ) One of several assignees may hold the defendant to bail Affidavit on an affidavit of the debt, stating it to be due from the "^ ^^^^^' defendant, " as appears by the bankrupt's books, and as the defendant believes." But in every affidavit to hold to bail made by an assignee, a tender in bank notes must be negatived, as in ordinary cases. (2) In actions at law by the assignees, whenever the con- When tract is made by the bankrupt before his bankruptcy, they *^hcy muni must state themselves in the declaration to be assignees; assignees. but if the contract is made by the bankrupt after the com- mission, they need not then name themselves assignees in the declaration (3) ; for when the bankrupt sells or makes any contract respecting property after the commission, the assignees may in that case treat him as their agent — being, in this respect, in the situation of executors, who sell goods after the death of their testator. And in one case, where an action was brought by assignees to recover back money paid by the bankrupt before the commission was opened, but after the act ofbanhruiitcy^ Baron Wood thought that it was not necessary for them to declare as assignees, though he ac- knowledged that to be the usual way. (4) Assignees under a Joint commission against A« and B., in Assignees suing on a separate contract entered into with A., may de- ""'^^''i''^"^ coniniis- scribe themselves generally as the assigtiees of A., without sion suino- noticing the name of B. (5) o" a *^/^«- -r. • 1,7 , ■ . r^^^' con- But assignees under three separate commissio7is cannot tract. properly sue as joint assignees, but must state their re- Assignees spective interests in the declaration (6); though this would ""'^^'' ° three sepa- (1) Ex parte Cq?/5. P. 219. 599. Harvey V. Morgan, 2 Star. (3) Evans v. Mann, Cowp. 5QD. 17. (6) Hay V. Davis, 2Moort, 7. 732 OF ACTIONS AT LAW. [Ch. 18. rate com- missions. Variance. Non- joinder. Need not set forth commis- sion, &c. Where assignees may bring either trover or assumpsit. be good after verdict, if there was nothing to shew by the record, that they did not claim under a joint commission. (1) Where in an action by plaintiffs, as the assignees of C. and E., they were described in a notice to produce a document as assignees of C and D., this was held to be bad, although the plaintiffs were in fact the assignees of C. and D. (2) The non-joinder of a joint assignee is a ground of nonsuit upon the trial, under a plea of the general issue, and need not be pleaded. (3) The assiffnees need not set forth in the declaration the commission and proceedings at large, or how the party became a bankrupt, but may declare shortly. (4) And they may sue both in the debet and detinet^ as the whole property of the bankrupt is vested in them by law : and a proceeding by a scire facias is the same in this respect, as if they proceeded in a common form of action. (5) It seems to have been formerly held, that ii after an act of bankruptcy the bankrupt paid money, or delivered goods, to any person, the assignees could not declare in assumpsit, but were obliged to proceed in trespass or trover for the tort. (6) But it was afterwards finally settled, that whoever takes the bankrupt's goods and converts them into money is supposed, in justice, to receive the money for the use of the assignees (in whom the property of the goods by law is vested) — and to promise to pay it to their use; and that the law in this instance implies a privity of contract between the persons, whose money it lawfully is, and the person who actually received it. (7) The assignees may therefore, in such a case, either aflRrm the contract and bring indebi' tatus assumpsit for the money — or disaffirm it and bring trover for the goods. (8) Thus, if a trader become bank- (1) Streatfield v. HaUiday, 2 T. R. 779. (2) Harveyy. Morgan,2^taT. 17. (3) Snelgrnve v. Hunt, 2 Star. 424. (4) Tul/yv. Sparkcs, Ld.R. 1546. Winter v. Krclchman, 2 T. R, 45. (5) Ibid. (6) Per Lord Hardwicke, Bilton V. Hyde, 1 Ves. 329. (7) Kitchen v. Campbell y 3 Wils. 308. 2 Bl. 827. (8) Husscy V. Fiddall, 12 Mod. 324. 3 Salk. 59. Read v. Vuitghan, 7 Mod. 461. Kitchen v. Campbell, supra. Readv.Jameii, 1 Star. 154. Sect. 2.] OF ACTIONS AT LAW. 733 rupt by lying in prison after an arrest, and a broker (having Trover or notice that a commission would be issued against him) sell " ^^'" ^ the bankrupt's goods, and pay him the produce before the period of imprisonment is completed to constitute the act of bankruptcy, — the assignees may, in this case, maintain either trover or assumpsit against the broker. (I) So, where a defendant took the goods of the bankrupt in execution after an act of bankruptcy, and then got possession of them under a bill of sale from the sheriff^ — Lord Elienborough held, that the assignees were entitled to recover against the defendant in an action for money had and received^ though no money was actually paid to him, and though trover would have been the preferable remedy. (2) When the assignees seek to recover goods in disaffirm- Distinc- ance of the bankrupt's acts, they must shew not only that ''°" ^"^' . tvveen the property in the goods 07ice vested in the bankrupt, but these two must also give evidence to avoid the acts of the bankrupt, '°'™s °^ as to the disposal of the goods. If they bring trover^ they may recover the full value of the goods ; but if they bring assumpsit, they can then only recover what the goods actually sold for, or what the party actually received; and in the latter form of action, also, which operates as an affirmance of the contract by the assignee, the defendant will have the right of setting off any debt due to him from the bankrupt. (3) After the assignees, however, have once elected to bring when either trover or assmnvsit, if they proceed to judgment in the t^^y '^^^^ oncG action so brought, they cannot afterwards adopt the other elected. form of action; for a judgment in trover may be pleaded in bar to an action of assumjjsit for the same goods (4) ; since, though the actions are grounded on diffei'ent writs, the cause of action is the same in each. A judgment of nonsuit, however, in one action would not preclude them (1) King V. Leith, 2 T. R. 141. (s) King v. Leith, 2 T. R. 141. (2) Reed V. James, 1 Star. Rep. Smith v. Hodson, 4T. R. 211. 134.; but see Walter y. Drakeford, (4) Kitchen v. Campbell, supra, ibid. 482. and Nightingale v. De- Hussei/ v. Fiddell, supra. vis7ie, 5 Burr, 2589. 734 OF ACTIONS AT LAW, [Ch. 18; Trover. Cannot treat the same trans- action both as a contract, and a tort. Where trover will not lie. from bringing the other. ( 1 ) But they cannot affirm the same transaction in one part as a contract, and disaffirm it in another as a tart. Therefore, where a person after the bankruptcy received from the bankrupt's wife money of the bankrupt's, with which he bought South Sea bonds and delivered them to her, and the assignees seized some of the bonds as part of the bankrupt's estate ; it was held, that they could not maintain trover against such person for the money, with which he purchased the remainder of the bonds, as the seizing of part of the bonds was an affirm- ance of the defendant's act in laying out the money. (2) So, where assignees recovered money from a banker paid by him upon the bankrupt's drafts after notice of the bank- ruptcy, they could not also maintain an action against the creditor, to whom the money was paid by the banker, though the banker had no other way of recovering the money back (3), than procuring the assignees to sue the creditors. But although trover is in general, for the reasons above stated, the proper form of action when there is any fraud in the transaction which the assignees seek to impeach, yet there are many cases in which trover will not lie, and where the only remedy is an action of assumj)sit. Thus, where a bankrupt after his bankruptcy gave a creditor a check upon his bankers, who paid the amount of it to the creditor, — it was held, that the assignees could not recover the money by an action of trover against the creditor for the check, as the action proceeded on the ground that the check was worth nothing — and assignees cannot sue for a void authority given by the bankrupt. (4) So, where a creditor (with the knowledge of the bankrupt's insolvency) prevailed on the bankrupt to sign bills drawn upon the bankrupt's debtors, on stamped paper produced by the (1) Nightingale v. Devisne, 5 Burr. 2589. Walker v. Laing, I Moore, 286. note. (2) Wilson V. Poulter, 2 Str. 859. (o) Vernon v. Hanson, 2 T. R. 287. (4) Mathctu V. Slwrufell, 2 Taunt. 459. Sect. 2.] OF ACTIONS AT LAW. 735 creditor — and then induced the drawees (who were not Trover. aware of his circumstances) to accept them, — it was held, that trover would not lie by the assignees for the bills, there being no colour to say that either the bankrupt before his bankruptcy, or the assignees after the bankruptcy, had any property in them; but that their remedy was an action for money had and received against the defendant, when the bills were paid. (1) So the assignees cannot maintain trover against a Where vendor, for goods contracted to be bought of him by the not against bankrupt, unless the bankrupt had the right of j)osscssion, of .roods. as well as a right oi i)roi)crtij in the goods: and a vendee does not acquire a right of possession to goods bought — which are not delivered, and where nothing is said about any credit or time of payment — until he pays, or tenders, the price of the goods to the vendor. (2) And even where goods have been bought by the bankrupt at certain credit, and ipart of the price has been paid for them, but no notice was given to the persons (in whose warehouses they were deposited) to transfer them into the name of the bankrupt, — it was held, that the assignees could not maintain trover against the vendor for the goods, without tendering the remainder of the price — whatever right of action they might have had against the vendor for not returning the money, which had been paid in part of the price — or for selling the goods to other persons, when according to con- tract he might have no right to sell. (3) Where, however, the bankrupt had advanced money on where bills, and after an act of bankruptcy he sent the bills to the trover will defendants, it was held, that trover in this case would lie by the assignees to recover the bills from the defendants. (4) And where, also, a bankrupt had assigned a policy of assurance to the defendant, which was afterwards dis- covered to be invalid, and the insurance company paid (1) Walker v. Laing, 7 Taunt. (s) Bloxa7nv.2Iorlei/,\hid.951. 568. (4) Wall V. Barnard, 1 Carring. (2) Bloxain v. Sanders, 4 B. & N. P. 382 C.941. 736 OF ACTIONS AT LAW. [Ch. 18. Trover. When ne- cessary to prove a de- mand and refusal. As to ad- mission of proceeds in an account stated. to the defendant half the sum insured as a gratuity on his giving up the policy, it was decided that trover would lie, though the value of the parchment only, ana not the sum gratuitously paid, was recoverable. (1) An action, indeed, for money had and received could not have been brought in this case; for no action will lie to recover from another what is paid to him as a gratuity. (2) Where assignees bring trover for goods collusively sold by the bankrupt on the eve of bankruptcy, they must prove a demand and refusal in order to maintain the action (3) ; for the selling was not in itself unlawful, though the transaction might be liable to be impeached by the assignees. But where they bring trover for goods in the order and disposition of the bankrupt at the time of the bankruptcy, then no demand and refusal is necessary to support the action. (4) In trover also against a sheriff, or the party suing out the execution, after an act of bank- ruptcy (5), the assignees need not in this case prove an actual demand; because, the property being vested in them from the time of the bankruptcy, the execution is conse- quently tortious, and is in itself evidence of a conversion. (6) And although goods are purchased in the usual course of trade of a bankrupt after a secret act of bankruptcy. Lord Ellenborough held, that the very act of taking the goods from one, who had no right to dispose of them, was in itself a conversion. (7) In an action of trover by the assignees, proof of an account stated between the bankrupt and the defendant — from which it appears, that certain proceeds constituting part of the account had come into the hands of the defend- ant subsequently to the bankruptcy — is sufficient to throw upon the defendant the 07ius of proving his right to (1) Wills V. Wells, 8 Taunt. 254. 2 Moore, 247. (2) Boyler v, R. 681. (j) Nixon V. 135. Dodsworth, 6 T. JenkinSy 2 H. B. (4) Soame v. Watts, I Carr. N. P. Rep. 400. (5) But see section 81. (6) Bull. N. P. 41. (7) Hurst V. Gwenna]), 2 Star. Rep. ."507. Sect. 2.] OF ACTIONS AT LAW. 737 retain such proceeds, ailliough a large debt upon the ba- Trover. lance may be due to the defendant. ( 1 ) Where the assignees were sued with the bankrupts in As to joint trover for goods, and tlie plaintiff proved that the bank- ^^^ ? '^°"" " ' ^ * version. rupts before their bankruptcy received, and afterwards dis- posed of the goods by way of pledge, having no authority so to do — and that the assignees after the bankruptcy, took possession of the goods, and refused to deliver them to the plaintiff on demand, — it was held, that this evidence did not amount to a joint act of conversion against all the de- fendants — the acts of the bankrupts, and those of the assignees being not connected together, but wholly dis- tinct; and that as there was only one count in the declaration, the evidence did not, therefore, warrant a general verdict of guilty against all the defendants. (2) If a bankrupt shortly before his bankruptcy purchase When a*- goods on credit, and fraudulently resell them for ready ^"1^*^^ money considerably under their invoice price, — in this lie. case, neither an action for goods sold and delivered (3), nor for money had and received (4), can be maintained by the assignees against the purchaser, to recover the differ- ence between the sums paid to the bankrupt and the value of the goods ; for, by bringing an action for goods sold and delivered, the assignees would affirm the contract; and a party selling goods at a price below their value, cannot re- cover the difference in an action for money had and received. The assignees might, perhaps, on account of the gross fraud practised in such a case, treat the sup- posed sale of the goods to the defendant as a nullity, and then trover would be the proper remedy. (5) But assignees, in suing a defendant on a contract of jjssyJJ,^^;^ sale, are not to be taken absolutely to affirm that the affirms tlie (1) Carter v. Barclay, 3 Star. (.3) Burra v. Clarke, 4 Camp. Rep. 43. 555. (2) Nicoll V. Glcnnie, ] M. & S. (4) Hogg\. MitehcU, 1 Star. 241. 588. (5) 4 Camp. 355. 3 B 738 OF ACTIONS AT LAW. [Ch. 18. Assumpsit. contract, it does not admit no fraud in the other party. Assignees may bring assumpsit on a con- tract of bankrupt made after the bank- ruptcy. When no money ac- tually re- ceived, as- sumpsit for money had and transaction \& fair throughout — but merely that nothing on the fiart oj" the hmikruipt was fraudulent; they do not therefore admit, that there was no fraud in the parties against whom they are undertaking to enforce it. Thus, where third persons holding the acceptance of a bankrupt, who was known then to be in bad circumstances, agreed with the defendants, in order to get value for this bill, (which had been before refused to be taken by the bankrupt in payment for goods from such third persons) that it should be indorsed to defendants, who should buy goods of the banki'upt in their own names, but for the account of such third persons, and then set-off the bill in payment for the goods, — it was held, that though this was a fraudulent contrivance between the defendants and the original holders of the bill to get payment of the whole debt of the latter out of an insolvent estate, yet that the assignees might maintain an action for goods sold and delivered against the defend- ants ; and that the defendants could not set off the bill. (1) The assignees also, as has been before stated (2), may adopt any contract of the bankrupt, though made by him after an act of bankruptcy, and may therefore sue the con- tracting party in assumpsit. Thus, where the bankrupt after the act of bankruptcy, contracted with a factor (to whom he had delivered goods for sale, and who had ac- cepted a bill upon the strength of the goods) to return the bill to the factor, if he would return the goods to the bankrupt, and the bankrupt did accordingly return the bill, — the assignees were considered entitled to recover against the factor for the non-delivery of the goods. (3) But in a case, where East India stock was transferred by a bankrupt after his bankruptcy, it was held, that the as- signees could not, in order to recover the value of it, maintain an action for money had and received against the person to whom it was transferred ; for such an action, it (1) Fair loO, V. M'lver, 16 East, (2) Ante, 730. (3) Butler V. Carver, 1 Star. 433. Sect. 2.] OF ACTIONS AT LAW. 739 was held, would not lie, where no money has actually been AssumpsU. received. (1) The pra|ier form of action, in tliis instance, received seems to have been a special action on the case. will not Where counts for money lent and for money paid by the '^* plaintiff as assig?iee, were joined with counts for money counts for had and received to plaintiff's use, and upon an account money letu stated v/ith him as assignee, it was held that these counts „*^^j might well be joined, upon the special ground of the 5 G. 2. c. 30. s. 32. (3), which provided that the creditors might direct, where the money arising out of the bank- rupt's estate might be paid in and remain — under which section the Court was of opinion that it would be lawful for an assignee to lend ; but that if no case could be put, where it would be lawful for him to do so, the declaration would have been bad. (3) In an action of assumpsit, unless there has been an ex- Mode of press promise to the assignees, the right way of declaring ^^ ^"ng' ■is, to lay the promise to have been made to the bank- rupt. (4) But if there has been any promise to the iissignees, or any cause of action accruing since the bank- ruptcy, care must be taken to insert some count in the declaration adapted to such demand. (5) Where in an action by assignees against a defendant for Plea of goods sold by the bankrupt, the declaration contained ^^"^'"P ^ •' . ^ pending by counts on promises made to the bankrupt before his bank- bankrupt, ruptcy, and also on an account stated v/ith the plaintiffs as ^ assignees — to which the defendant pleaded a former action brought by the bankrupt upon the same promises before his bankruptcy, and still pending, — it was held, on demurrei-, that the plea was bad — first, because the former action could not have been brought upon the account stated with the plaintiffs as assignees — secondly, because the assignees {i)NightingaIe\.Devisne,5'Q\\n. (3) Richardion v. Griffin, 5 M. 2589.; but see Reed v. James, &S. 294, 1 Star. 154. (4) Rig v. WUmer, 2 Str. 697- (2) And see section\02. of the Anon. 6 Mod. 151. Fashien v. «ew act. Dormet, 7 Vin. 159. (5) Cliitty on Pleading, vol. i. 3 B 2 740 OF ACTIONS AT LAW. [Ch.18. In cove- nant for rent, as- signees not obliged to set forth their title. Debt against an executor. Plea of retainer. Profcrt. Ejectment bad on a demise could not continue the former suit, even if they wished it. (1) In assumpsit by the provisional assignee, where the defendant pleaded the general issue, — it was held, that the fact of the bankrupt's estate having been assigned by the provisional assignee to the general assignees, between the time of the issuing of the latitat and the delivery of the declaration, was no ground of nonsuit upon a plea of non assimipsit. Whether it would have been an answer to the action, if specially pleaded, was left undecided. (2) In an action o^ covcyiant for rent accrued since the bank- ruptcy, brought by the assignees against the bankrupt's lessee, the defendant is estopped from pleading that the bankrupt nil habiiit in tenementis, nor can he force the as- siirnees to set forth in the declaration their title to the land. (3) An action of d£ht on a simple contract cannot be main- tained by assignees against an executor. (4) And in an action of deht by the assignees, on a bond given to the bankrupt to secure an annuity, for payments accruing after the bank- ruptcy, where it appeared that, before any payment of the annuity became due, the grantor lent the bankrupt a sum of money, on which it was agreed, that the grantor should retain the payments of the annuity as they became due until that sum was discharged ; — it was held, that this agree- ment and retainer might be properly pleaded, being consi- dered equivalent to a plea of solvit ad diem. (5) In debt on a specialty, assignees need not make profert of the deed ; be- cause they are in by act of law, and may not have the means of obtaining the deed to set it forth or produce it. (6) Where an action of ejectment was brought by assignees to recover the bankrupt's freehold property, and the demise (1) Biggs V. Cox, 4 B. & C. 920. (2) Page V. Bauer, 4 B. & A. 345. S. C. nom. Page v. Vaughan, 2 Star. Evid. 167. note (r). (5) Parker v. Maiming, 7 T. R. 507, (4) Morgan v. Green, Cro. Car. 209. (5) Sturdy v. Arnaud, 3 T, R. 599. (C) Gray v. Fielder, Cro. Car. 209. Sect. 2.] OF ACTIONS AT LAW. 741 was laid before the bargain and sale of the lands in question before the to the assignees, though after the date of the commission, "^'"g^i" , , . and sale. it was held that they were not entitled to recover ; for the doctrine of relation back to the act of bankruptcy is ap- plicable only to the assignment of the personal property of the bankrupt, and does not extend to the conveyance of hisfreehold property, which remains in the bankrupt, though not beneficially, until taken out of him by the bargain and sale.(l) In a case where trespass was brought against assignees In trespass for seizing goods, which they contended were assigned g^^^,ggs ^^' fraudulently by the bankrupt to the plaintiif ; — it was held fraudulent by Gibbs C. J., that the fraudulent conveyance was not of ^°"^^y" , "^ . , _ "^ . ance not itself a sufficient defence, without proving an act of bank- alone a ruptcy committed by the bankrupt. (2) sufficient Where an action was brought against assignees to re~ proceeds cover the proceeds of a bill which had been specifically of bill appropriated, it was held necessary to prove, that the pro- ^^^^^ ^ - ^ duce of the bill came into the hands of the assignees, with ated. a knotvledge on their part of the purposes for which the bill was destined. (3) No action can be maintained by the assignees for a mere Assignees personal tort to the bankrupt, as for assaidt, or slander. ^^^"°*^^"^^ But a late learned writer (4) seems to think, that in the sonal tort case of a tort to the property of the bankrupt, which may f^ *^® have deteriorated its value, (such, for instance, as running down a ship, or cutting timber) whereby the assignees are deprived of the benefit which they would otherwise have enjoyed, the assignees might then sustain the action. It has been doubted, however, whether the assignees can sue for a tort committed against the estate of the provisional assignee ; but in one case they were permitted, even after (1) Doe V. Mitchell, 2 M. & S. an act of bankruptcy. See ante, 446. page63. et. seq. (2) Young V. Wright, 2 Marsh, (3) Kieran v. Johnson, 1 Star. 253. But qujere, whether the con- 109. Quaere tamen; and see Ex veyance being 'proved to be frau- parte Scn/ers, sVes. 169, duient, ought not of itself in this (4) Evans'sStatutcs, 329. 2d edi- case to have been considered as tion. 3 B 3 742 OF ACTIONS AT LAW. [Ch. 18. As to im- munity of a garni- shee. Where debt under 40s. Assignees barred by statute of limita- tions. Need not allege in pleading, that the defendant had notice of the act of bank- ruptcy. two terms had elapsed, to ameiul the declaration, which stated the wrong to be done to the provisional assignee. ( 1 ) Where a debtor to the bankrupt has paid money to a third person under due process of local law, he is not liable to an action by the assignees ; therefore, though a creditor of the bankrupt attaching the effects abroad is, as we have seen (2), liable to refund to the assignees, yet the garnishee himself, of whom the debt has been so recovered, is not compellable to pay it over again. (3) Where debts are under 40^., the assignees must, like other persons, sue for them (4-) in the court of requests. If the statute of limitations is pleadable by a debtor in respect of his own debt again&t the bankrupt, the as- signees may be barred by it likewise ; and the time is to be computed from the date of the original cause of action, and not from the date of the commissioners' assignment. (5) But where a verdict is found for the assignees as plaintiffs in an action, it is no ground for setting aside the verdict, that it did not appear that the petitioning creditor's debt was contracted within six years before the suing out of the commission. (6) Where the defendant, in an action by as- signees, pleads that the bankrupt released the debt before he became bankrupt, and issue is joined on this plea which is found for the assignees — and it appeared also at the trial, that the release was executed more than two months before the issuing of the commission, though after the defendant knew of the act of bankruptcy ; — it was held, under these circumstances, that the assignees were not obliged to allege in their replication to the defendant's plea, that the de- fendant hie'iSi that the bankrupt had committed an act of bankruptcy before the execution of the release — but that it was sufficient to prove that fact (7) at the trial. (1) Freen v. Cooper, G Taunt. 358. (2) Ante, 400. (5) La Chevalier \ . Lynch,T)oug. 1 70. ; and see Mawdesleij v. Parke, sjit. 1 II. B. 680. (4) Kecti/\. liigg, iBos. &F.11. (5) Grai/ v. Mendcz, 1 Str. 555. South Sen Company v. WyvwndseU, 3 P. Wins. 143. Ashbrooke v. Manhy, Comb. 70. (6) Mavor v. Pync, 3 Bing. '2S5. (7) Ibid. Sect. 2.] OF ACTIONS AT LAW. 743 When an assignee dies, or is removedj we have seen ( 1 ), Action not diat no action then pending is thereby abated, but that it i\f.ax\i of may be prosecuted in the name of the surviving or new as- assignee. siffnees. But, if an order be made by the Lord Chancellor When a . Ill- removed to remove one of several assignees, and such order is not assi"nee followed up by an actual re-assignment, or release of such must join assignee to the remaining assignees, nor by any new assign- action. ment of the commissioners, — the removed assignee ouglit, in that case, to join in the action ; though, in an action of trover, the non-joinder can only be pleaded in abatement ; and the other assignees who sue may recover the propor- tional parts or shares of the property sought to be re- covered. (2) A new assignee may sue in debt upon a judg- New assig- ment recovered by a former assignee removed by the Lord "^^ ^"^ Chancellor, and may declare in a general form as having judgment been duh/ constituted and appointed assignee, &c. (3) And ^^^^^ere it seems, that when one of several assignees is removed, former and assigns his interest to the other assignees, they may a^^gnee. maintain an action for money had and received against hjm, j^ ^^^^^ for money which came to his hands whilst he continued assignee, assignee. (4) When an assignee is not a creditor, and the bankrupt When an brings an action against him to dispute the bankruptcy, ^qJ^^I^ if the assignee is so much identified in interest with the mitted to bankrupt, that the action would not be properly tried if he a^Jf^JJ^ jj'" defended it, the Lord Chancellor will order, that the pe- bankrupt, titioning creditor shall have the conduct of defending the action. (5) If the bankrupt, prior to his bankruptcy, has duly as- Assignees signed his interest in a chose in action to a third person, ^^^ ^ ^j^^^^ the action must not be in the name of the assignees, but in in action the name of the bankrupt (6) ; for property, in which the ^ ^^ (1) See ante, 728. (4) Smith v. Jameson, Pcake, (2) Bhxamv. Hubbard, 5 East, 213. S. C. 5 T.R. 601. Wrayv. 407. Barms, Peake, 69. (3) De Cosson v. Vaughan, (5) Ex parte Stewart, 2 Rose, 6. 10 East, 61. (6) Carpenter v. Mantel/, 3 Bos. & P. 40. 3 B 4 74,^ OF ACTIONS AT LAW. [Ch. 18. Provision for pay- ment of money into court. Assumpsit, bankrupt has only a trust estate, does not pass in any way to the assignees under the commission. By section 98. of the new statute, if the assignees com- mence any action or suit for any money due to the bank- rupt before the time allowed for him to dispute the com- mission shall have elapsed, the defendant may, after notice to the assignees, pay the same or any })art thereof into Court ; and all proceedings with respect to the money so paid shall thereupon be stayed, and after the time given to the bankrupt to dispute the commission shall have elapsed, the assignees may have the same paid to them out of Court. Assignees are not restrained, any more than other per-^ sons, from bringing a fresh action after a nonsuit. (1) Actions by assignees of one of several partners. When goods (le- liveretl by solvent partner bonajide. When one of several partners becomes bankrupt, it is provided by section 89. of the new statute, that the assignees may, upon obtaining the order of the Lord Chancellor, prosecute any action in the joint names of such assignees, and of the remaining partner or partners. (2) In such a case, indeed, if any action ex contractu is brought in the names of all the partners, the bankruptcy may be pleaded in bar. (3) And even where money is paid by solvent partners cifter the hanlcruptcy of the others, on account of the dealings of the general partnership, they cannot sue for it without joining the assignees of the bankrupt part- ners as plaintiffs. (4') Where goods are bo7id Jide deli- vered for a valuable consideration to a third person by the solvent partner, after the act of bankruptcy of the other partner, the assignees of the bankrupt partner can- not maintain trover against the consignee of the goods; for the assignees are in such case tenants in common with the consignee, by relation from the time of committing (1) Ex parte i/iV/tH, 1 Jac, & W. (3) Eckhardt v. Wilson, sT.R. 467. 140. (-') And see Tliomason v. Frerc, (4) Graham v. Robertson, 2 T. 10 East, 61. R. i;82. Sect. 2.3 OF ACTIONS AT LAW. 74-5 the act of bankruptcy, and one tenant in common cannot Partners. maintain ( 1 ) trover against another. And still less could the assignees maintain such action, when the consignee of the goods happened, also, to be the executor (2) of the solvent partner. The assignees of two partners under separate com- Joint debt missions cannot recover in the same action a joint debt due """ '^fP*' '' . rate debt from the defendant, and also separate debts due from him not reco- to each partner. (3) But, where the plaintiffs sued as ^o^'il^le in the stiuie assignees of A. and B., and also as assignees of C. for a action. joint debt due to all three ]mit?iers (for which they could Irregula- formerly, in strictness of law, only sue as assignees, either f'^^ cure under three separate commissions, or under one joint com- mission against the three partners (4-) ), the declaration was held good, on motion in arrest of judgment after verdict ; for it did not appear by the record, under hoxv many com- missions the assignees actually claimed. (5) In an action by assignees under a joint commission Mode of against A. and B., the declaration was for money had and declaring received by the defendant to the use of A. and B. before assignees they became bankrupts, and for money had and received where to the use of the plaintiffs as assignees of A. and B. after crned'be- their bankruptcy : — the evidence was, that A. committed tween the an act of bankruptcy a few days before B. committed one, ^^^^ and that a clerk of the bankrupts between these acts of ruptcy of bankruptcy paid to defendant 558/., and after both acts of ^^^ ^^^' bankruptcy 51. more; — it was held, that under this declar- partners, ation the assignees were only entitled to recover the 5l. paid after the bankruptcy of both partners, and not the 558/. paid before the bankruptcy of B. ; though it seems, that if they had declared for money had and received to (1) Smith V. Oriel, 1 East, 367. (4) A commission, however, may Fox V. Hanbury, 2Cowp.445. ; and now by section 16. of the new act, see Ramsbottom v. Lewis, 1 Camp, be issued against one or more mem- 279. bers of a firm. (2) Smith V. Stokes, 1 East, 363. (5) Strcatjield v. Halliday, 5 T. (3) Hancock v. Hayiuood, 3 T. 11.779. R. 435. 746 OF ACTIONS AT LAW. [Ch. 18. Against (he their use as assig?iecs of A., they might then have recovered "^'^•^- one moiety of the 558/. paid between the two acts of bank- ruptcy. (1) When as- signees may main- tain trover against the sheriff. Cannot have tres- j)ass before assign- ment. May have trover against the plain- tiff suing out the execution, or the vendee of the goods. The property of a bankrupt being vested in his assignees by relation from the act of bankruptcy, — if a sheriff, there- fore, takes the bankrupt's goods in execution after an act of bankruptcy, and afterwards sells them, the assignees may maintain trover against him. But they cannot have trespass — not even where the sheriff levies, or pays over the money, after an act of bankruptcy, of which he has notice (2); for trespass cannot be maintained, miless the plaintiff had {d the time when the trespass is alleged to be committed, either an actual or a constructive possession of the thing which is the object of the trespass; and the assignees (though they have by the assignment a right given them which relates back to the act of bankruptcy, so as to avoid all mesne incumbrances) have not such a possession as to bring trespass for an act done before such right was given them ; for no defendant can be made a trespasser by relation. (3) The assignees, however, may also have trover, or assumpsit, either against the vendee of the sheriff — or the plaintiff in the original action, if he has received the money of the sheriff. (4) Thus, where a bankrupt after the act of bankruptcy was arrested ujx)n a ca. sa.y and placed goods in the hands of the sheriff's officer to raise money upon them, who accordingly pledged them, and five weeks after- wards paid over the amount to the defendant, — it was held, that the assignees might recover the amount of money paid to the defendant in an action for money had and received, although the defendant was not privy to the taking of the goods by the sheriff's officer, and although the money paid to the defendant was not the identical (1) Smith V. Goddard, SB.&P. 465. (2) Cooj)er v. Chittij, 1 Burr. 20. Smith v. Milles, 1 T. R, 475. Lech- mere v. Thorowgood, Comb. 125. 3 Show. 12. 1 Mont. 474, (3) Per Ashurst J. 1 T. R. 480. (4) Kitchi^i V. Camjibcll, 3 Wils. 504, Cole v. Davics, 1 Ld. R. 724. Sect. 2.3 OF ACTIONS AT LAW. 747 money raised by the pletlge.(l) The assignees may like- Against the wise bring trover against the plaintiff in the action, if he * '"^' intermeddle with the sheriff in any way — such as by being in company with the officer at the time of the execution, or by giving a bond to the sheriff (2); and, in trover against the plaintiff, the sheriff need not be joined in the action. Where after an act of bankruptcy the sheriff' seized What and removed the goods to a broker's, and the assignees "'""""^^ " . . . ° to a cow- afterwards served a notice upon him not to sell, in conse- version by quence of which the goods were never sold, but remained ^'^® sheriff, at the broker's, — it was held, that the removal of the goods was a sufficient conversion, and that the notice did not amount to any admission that they had not been con- verted. (3) So, in a case where the sheriff legally took goods under one execution, the proprietor of which after- wards became bankrupt — and then sold enough to satisfy both that execution and also another execution, which being delivered to him offer the act of bankruptcy was void, — it was held, that the sale of goods of greater value than was sufficient to satisfy the j^rs^ execution was a tortious conversion, the sheriff having no right to sell more than was necessary ; and that trover was the proper form of action by the bankrupt's assignees, to recover the value of such of the goods, as were sold after the sheriff had raised money enough to satisfy thej'f;'^^ execution. (4) The sheriff, however, will be safe from any claim by the When the assignees, if he levies before the act of bankruptcy, and after- f'l^"^ will wards pays the money over to the plaintiff' without any notice from the of the act of bankruptcy ; for, as he has a right to \&s'^.i he '^|^i"'s of is bound to pay over the money to the person at whose sit^nees. suit the execution is issued, the whole being considered in law as one act ; and it would be inconsistent to say that (1) Allansony. Atkin&on,\M..&i [o) Wyatt v. Blades, 3 Camp, S. 583. 395. (2) Rush V. Baker, 2 Str. 996. (4) Stead \. Gascoignc, s'Tavmi. Rull. N. P. 41. Menham v. Ed- 527. monson, 1 Bos. & P. 569. 74-8 OF ACTIONS AT LAW. [Ch. 18. Against the sheriff. When the Court will assist him. Fraction of a day. he liad levied legally, but had j-jazW it illegally. {\) And when the money has been paid over by the sheriflp before the commission, the Court will not assist the assignees upon motion, in'giving effect to the relation of the bankruptcy, — so as to make the sheriff pay over to them money levied after an act of bankruptcy (by lying in prison), but before the time to complete the act of bankruptcy expired. (2) The Court, too, will in some cases even notice the fraction of a day in favor of the sheriff; as in a case where, after the sheriff took possession under a fi. fa., the defendant at a later hour of the same day surrendered in discharge of his bail, and afterwards lay in prison the period of time sufficient to constitute an act of bankruptcy, — it was held, that the sheriff having entered in fact before the time from which the bankruptcy was to be computed, the assignees were not entitled to recover. (3) And, in all cases, if the sheriff acts fairly, and is under difficulties how to con- duct himself, the Court will endeavour to help him, as far as it is possible. Thus, if he is reasonably doubtful about the property, the Court will give him time to make his return, or compel the parties to file a bill of inter- pleader, or oblige the assignees to prove the act of bankruptcy and the assignment. (4) And in one case, where the sheriff was made a defendant, and neither the execution creditor, nor the assignees, would in- demnify him, the Court directed the declaration to be amended, by inserting the name of the execution creditor, instead of that of the sheriff, as the defendant; directing (l) Vernon v. Hanker/, 2 T. R. 121. per Duller J.; and see Stead V. Gascoigne, 8 Taunt. 527. It has been said, that the court of Ex- chequer, in a case which is not reported, have held the sheriff liable in trover, though he seized., sold, and paid over the money before the commission issued, and before any notice of it; saying, that this necessarily followed from the case of Cooper v. Chitty, for that it was an unlawful interference with another's goods. Potter v. Starkie, cited in argument, 4 M. & S. 260. The seizure, however, in this case, must be understood to have been after the act of bankruptcy. (2) Clarke V. Ryall, B1.642. (3) Thomas v. Desanges, 2 B. & A. 586. (4) 1 Burr. 57. Sect. 2.] OF ACTIONS AT LAW. 749 also that the defendant should plead mstajiter, and admit Against tke upon the trial the taking oF die goods ; and that the ^ ^^'''^' sheriff should be discharged from all responsibility, upon selling the goods, and bringing the money into court, having apprized the parties of the time and place of sale ; his right of poundage of course depending on the question whether the execution was warranted. (1) The proper Where course for the sheriff to iiursue (where both parties refuse R^ties re- to indemnify him) appears to be, to apply to the Court for demnify a rule to enlarge his return of thej'?. /«. from time to time — sheriff. or, if an action has been commenced against him, then for a rule to stay proceedings — until he is indemnified, or upon such other terms as the Court may think the equity of the case requires. This rule, however, can only be a rule nisi in the first instance. (2) The Court will likewise, in favor of the sheriff, take his return of a writ as made at the time when it is made in fact, and not as at the return day speci- fied in the writ. Thus, nulla bona will be a good return by the sheriff to a Ji. fa. sued out against the bankrupt's goods, though it is returnable within twenty-one days from his lying in prison — if it be not actually returned until he has laid in prison the whole of the twenty-one days, and thereby become bankrupt. (3) But if the sheriff voluntarily take a part, and elect (either when the before or after the goods are sold) to which party he will Court will , 1-1 • T 1 not inter- pay the money — and receive also an express, or an implied, fg^e. indemnity (for either is sufficient) from the party to whom he so elects to pay it over, — he must then resort to that party for security in case he is wrong; and the Court will, in such case, not interfere in his behalf. (4) And where the sheriff had kept the proceeds of the goods in his possession for a length of time upon frivolous pretences, the Court would not assist him by taking notice in a col- ( 1 ) M' George v. Birch, 4 Taunt. (3) Coppendale v. Bridgen, 2 Burr. 585. 814. (.2) King V. Bridges, 7 Taunt. (4) Aldridge v. Ireland, cited 494. 1 Moore, 45. Ledburi/ v. 1 Taunt. 273. Smith, 1 Chit. Rep. 294. 750 OF ACTIONS AT LAW. [Ch. 18. Agaimtthe lateral way of a commission of bankrupt which afterwards issued, so as to stay proceedings against him in an action As to right for a false return, pending which he paid the money to the to pound- . , , K age. assignees. (1) It is stated in one case that where the sheriff levied after the harikrujptcy^ and the assignees had commenced an action against him, the Court of King's Bench made the rule for staying proceedings and indemnifying him, upon the terms of his paying over the money levied, and the costs of the action up to the time of the application, he being paid his poundage and the costs of the cxeciition.{'2) But this last condition seems rather an extraordinary one to impose on the assignees, if the fact was that the sheriff (as is stated) levied after the hanhruptcy ,- for, if that was the case, the execution was altogether illegal, and he could then have no right to poundage. (3) When not Where a plaintiff withdrew his execution against the '^'hl t ' bankrupt's goods, under a consent from him that there turn writ should be a fresh levy, if the debt were not paid within a without given time — and the goods were afterwards seized under an execution at the suit of another plaintiff — upon which the first plaintiff placed his warrant in the hands of the second plaintiff's officer, who (the defendant having then become bankrupt) left in the possession of the assignees all the effects remaining, after satisfying the second plaintiff's execution to the exclusion of the first ; — the Court held, that though the effects were sufficient to satisfy both executions, the sheriff could not be compelled to return the first plaintiff's writ, until he should have been in- demnified, and the prothonotary should have decided which of the parties should indemnify him. (-i) (1) TmbrcU\.Mil/s,lB\.205. (3) See M'George v. Mrch, (2) Probiniu v. Roberts, ibid, ante, 749. 577- (4) Burr V. Freethi/, \ Bing. 71. indemnity. Sect. 3.] EFFECT OF PREVIOUS SUITS. 751 Section III. Effect of the Bankruptcy on Suits and Actions jprevionsli/ commenced Jj/, or brought against, the Bankrupt. If the plaintiff or defendant in a suit in equity becomes Suits in bankrupt, it seems that the suit ( 1 ) does not thereby Xte'd'bv absohitely abate, but tiie assignees may proceed in it in bank- the name of the bankrupt. This point, however, has ruptcy of been differently ruled by Lord Thurlow, who was of tiff. opinion, that the bankruptcy of a sole plaintiff so far put an end to the suit, that the assignees could not add to it by a mere supplemental bill, but that they must file another original bill in the nature of a supplemental bill. (2) But subsequent cases appear to have established But as- the former decision of Lord Hardwicke, namely, that the s'g"^<^* •" must file suit does not abate by the bankruptcy of the party (3); a supple- in one of which, indeed, it is holden, that where a de- ™.f"'^^ fendant becomes bankrupt, the plaintiff cannot even move to dismiss his own bill without paying costs. (4?) This, however, seems a great hardship upon the plaintiff; as the defendant may move to dismiss the bill '■mth costs for want of prosecution, and thus compel the plaintiff to go on with the suit, although he may really wish to abandon it and come in under the commission. (5) A plaintiff in equity is differently situated from a Difference plaintiff at law — the judgment against the latter being J^j^tvveen only for the costs, whilst the decree against the former ment may be for ati account likewise, and also to vay a balance. ''^^3"^'^ * „/ . 1 £• r 1 • -/r • • , 1 plaintiff at 1 he assignees thererore or a plamtin in equity, who has law and in equity. (1) Anon. 1 Atk. 263. Carrick, Bramhall v. Cross, cit. (2) Bellas V. Daiuson, 2 Anstr. ibid. Williams v. Kinder, 4Ves. 458. in note, and cit. C. B. L. 545. 587. Lingard v. Webb, 3 Bro. 435. ; and (4) Rutherfordw Miller, 2 Anstr. see Harrison v. Ridley, 2 Com. 458. Rep. 589. Mitf. 62. (5) Monteitk v, Taylor, 9 Ves, (3) Davidson v. Butler, 1 C. B. 615.' L. 545. 2 Anst. 460. n. Tail v. 752 EFFECT OP PREVIOUS SUITS, [Ch.l8. Present practice when the defendant moves to dismiss the bill. When money or- dered to be paid to assignees, without a supple- mental bill. As to bills previously filed by a bankrupt for an in- junction. become bankrupt, are only |>ermittcd to take advantage of the proceedings by making themselves parties to the suit, and filing a supplemental bill ; for a court of equity requires a substantive plaintiff, who may abide such decree as may be made. (1) Thus, though the suit is not (strictly speak- ing) abated, it becomes by the bankruptcy of the plaintiff as defective as if it were. Upon a motion, however, to dismiss the bill for want of prosecution, the Court has in some instances, given the assignees a month to adopt the suit by filing a supplemental bill, previous to a final application that the bill should be dismissed. (2) The practice, as collected from the modern decisions, seems to be, to order a supplemental bill to be filed by the assignees within a fortnight, or that the bill be dismissed without costs (3); and the proper mode of making the ap- plication is by special motion, of which notice should be given to the assignees. (4) The practice in the Exchequer is the same, in this respect, as that of the Court of Chan- cery. (5) But in one case, where money was ordered by a decree to be paid to the plaintiff!, who afterwards be- came a bankrupt, and he and his assignees applied by pe- tition, that the money might be paid to the assignees — the sum being too small to bear the expense of a supplemental bill, — Lord Thurlow ordered it to be paid to the assignees, without such a bill being filed. (6) An order ?iisi obtained by a defendant for dissolving an injunction will be made absolute, notwithstanding the plaintiff becomes a bankrupt, unless the plaintiff shows cause. (7) And where a bill was filed by the plaintiff in the Exchequer for an injunction, and he afterwards became a bankrupt, the bill was upon motion ordered to be dis- (1) 4Ves. 588. (2) Mumford v. Randall, 1 Rose, 196.; and see Monteith v. Taylor, 9 Ves. 616. Sellers v. Daivson, Dick. 758. Ex parte Barry, 1 Dick. 81 Hall V. Chajmtan, ibid. 348. 18 Ves. 424. 4 Madd. 171. (3) French v. Barton, 18 Ves. 423. Wheeler \. Malin, 4 Madd. 171. Porter v. Cox, Duck. 469. 5 Madd. SO. (4) Buck. 469. (5) Fowler's Exchequer, vol. i. 286. (6) Setcole v. Hcaly, 2 Bro. 322. (7) 1 Atk. 263. Sect. 3.] EFFECT OF PREVIOUS SUITS. 753 missed with costs for want of prosecution, the Lord Chief Baron saying, that it was the course of practice in that Court to charge the bankrupt with costs according to the circumstances of the case. (1) After the usual decree for an account against executors. As to filing one of the defendants became bankrupt. The assignees ^'|,,^t^i by petition prayed, that they might be at liberty to go bill. before the Master upon taking the accounts, and be ad- mitted on behalf of the bankrupt's creditors to support his discharge. The registrar declined drawing up the order, objecting that the suit being abated by the bankruptcy, the plaintiffs could not proceed in the accounts, until they had filed a supplemental bill in the nature of a bill of revivor, — and the Lord Chancellor upon this refused to make the order. (2) Where assignees of a defendant have been brought And costs before the Court by supplemental bill, they will be liable to ^^'■^*'"- the costs of the whole cause if they improperly resist the plaintiff's demand : but in a case where the plaintiff had made no application to them before filing the supplemental bill, the Court did not give costs against them. (3) In actions at La'w, also, though the bankruptcy of the In actions, plaintiff after action brought is strictly no absolute abate- "6'«^'"';^"t * . . "i''^y plead ment of the suit (4), and the action has been occasionally the bank- permitted to^ be continued by the assignees in the name J"'^'P'^'^>' '" of the bankrupt, — yet this must now be taken, subject to the right of the defendant to plead the bankruptcy m bar; for where a defendant has a day in court to plead, and the means likewise of pleading the plaintiff's bankruptcy, the Court cannot refuse to give effect to a legal defence of this nature. (5) And such a plea may be pleaded even (1) Davison v. Butler, 1 C. B. (3) Whitcombv. Minchin, oMs-d. L. 546. 91. (2) Russell V, Sharp, 1 Ves. & (4) Bibbins v. Maiitell, sWils. B. 500. The reason assigned by 358. Hewitt v. Mantcll, ibid. 572. the registrar in this case is bad, Kretchman v. Beyer, 1 T. R. 465. though the rule of practice was Waugh v. Austin, 3 T. R. 437. correct; for it has been sufficiently (5) Kinnear v. Tarrant, 15 East, shown that the bankruptcy of a 622. Barnes v. Maton, cit. ibid, party is in ex^niy no abatement of 651. Biggs \. Cox, 4 B, &C. 920. the suit. 3 c 754 EFFECT or PREVIOUS ACTIONS. [Ch. 18. Where the proceed- ing before the bank- ruptcy was by sci.fa. Where the parties were at issue. Assignees should bring a fresh action . Afterjudg- ment as- signees may pro- after the last continuance. Where the defendant, however, has no day in Court to plead the bankruptcy in bar, there it will not operate in abatement of the suit ; as where the plaintiff obtained interlocutory judgment before his bank- ruptcy, the action was held properly to proceed in his name during the execution of the writ of inquiry, and until final judgment — on the ground, that after the award of the writ of inquiry, the defendant could not afterwards plead any thing to the action. ( 1 ) In an early case in the books on this subject, where the plaintiff became bankrupt after he had recovered by scire facias, the Court ordered the special matter to be entered, to entitle his assignees to the benefit of the judgment on the sci. fa., without bringing a new sci. fa. (2) And in one case, where the parties were at issue, and notice of trial had been given, and tiie plaintiff before trial became a bankrupt, the Court upon motion permitted the trial to go on in the name of the bankrupt, upon the assignees undertaking to pay the costs of suit, in case a verdict should be given for the defendant. (3) But the safest course appears to be — when the action is commenced by the bankrupt previous to his bankruptcy, and is in such a stage of proceeding as will enable the de- fendant to plead the bankruptcy in bar — that the assignees should not continue the proceedings in the name of the bankrupt, but bring a fresh action (4) in their own names ; for, if the defendant pleads the bankruptcy, the plea will be good, notwithstanding the plaintiff replies, that the pro- ceedings are continued by the assignees in the name of the plaintiff for the use and benefit of the plaintiff's creditors, and not for the use of the plaintiff. (5) Afttr judgment, however, whether interlocutory (6) or final, the assignees may make themselves parties to the record, by suing out a (1) Bibbins v. Mantell. Hewitt V. same, supra; but see Monk v. Morris, Ventr. 193. (2) Plummer v. Lee, 5 Mod. 88. (3) Priddle v. Thomas, cited, 2 Wils. 373. (4) Barnes v. Maton, cit. IsEast, 631. (5) Kinnear V.Tarrant, 15 East, 624. (6) Per Wihiiot C. J. 2 Wils. 375. Kretchman v. Better, 1 T. R. 463. Sect. 3.] EFFECT OF PREVIOUS ACTIONS. 755 scire facias ad inquirendum, or quare execuiioncm non, as the ceed by case may be; but they cannot do this in any intermediate ^'^'J"'' stage of the proceedings. ( 1 ) Nor where a plaintiff even ^^^^P^ " '^ o \ ' I where de- recovers judgment — yet if the defendant brings a writ of fendant error which is duly issued, allowed, and served before the ^rmgs a 1 . . „. , . . writ of plaintiff's bankruptcy — can the assignees sue out a scire error. facias on the judgment; for it would be bad, either as a scire facias quare executionem non^ or as a sci.fa» to compel an assignment of errors; as, in the first case, it would appear (from the recital in the sci. fa.) that a writ of error was depending, — and in the last, (independently of such recital,) there would have been a proceeding since the judg- ment. (2) But the assignees may sue out a sci. fa. on the recognizance against the bail ; in which they should state, that an assignment was duly made to them of the bank- rupt's estate and effects ; though this omission can only be taken advantage of on special demurrer. (3) And where a ^^^^^ plaintiff after judgment became a bankrupt, and afterwards levies the sued out execution, and the money was levied by the sheriff money and brought into Court, — the Court in this case refused, execution upon motion of the assignees, to order the money to be after the paid to them — but consented to detain it, that the as- Ynutcv signees might take out a scire facias against the defendant to try the bankruptcy. (4) In another case, however, (as we have already seen) where the plaintiff had judgment on a. scire facias, the Court, upon motion, dispensed with a fresh sci. fa. (5) Where a defendant became bankrupt after the issuing Where a and execution o^B.fi.fa., but before the sale of the goods ||"^"'^^°t taken under it, and there was a variance between the^. fa. bankrupt and the judgment, — the Court of King's Bench refused after the issuinf? a to allow the plaintiff to amend the f. fa., to make it con- fi, fa, formable to the judgment. (6) (1) Per Buller J. 1 T.R. 463. (5) Plumer v. Lea, 5 Mod. 88 j (2) Ibid. ante, 754. (3) Fletcher \. Pogson, SB.&C. (6) Hunt v. Pasman, 4 M. &S. 192. 329.; and see Paris v. Wilkinson, (4) Monk V. Morris, Ventr. 1 93. 8 T. R. 155. ] Mod. 93. VCL, J. * 3 c 2 756 CHAP. XIX. OF THE EVIDENCE REQUIRED TO SUPPORT THE COMMISSION IN ACTIONS BY, OR AGAINST, ASSIGNEES. Section 1. Where Notice is given to dispute the Com- mission. 2. Where a Party is not entitled to give such Notice. 3. Where 7io Notice is given. 4. Where no Proof of the Title of the Assignees is necessary. 5. As to the Admissibility of the Depositions and Proceedings under the Commission. 6. Of the Competency of the Bankrupt and his Wife as Witnesses. 7. Of the Competency of Creditors. Former |t was formerly necessary in all actions, where the as- t'o^proof '^^ signees either as plaintiffs or defendants claimed property upon the under the bankrupt, to prove strictly the three requisites to support the commission, viz. the trading, the act of bankruptcy, and the petitioning creditor's debt — as well as that the commission was regularly issued, and the as- signment duly executed. Upon failure in proving any one of these matters, (the proof of which adds considerably to the costs of an action, and is often difficult to be esta- blished by strict rules of evidence) the assignees were non- suited, and thus frequently prevented from recovering a just debt due to the bankrupt's estate. To provide in some measure for this evil, the 49 G. 3. c. 121. s.lO, 11. enacted, that the commission and proceedings should be evidence trial. Ch. 19.] OF EVIDENCE, &c. 757 of the petitioning creditor's debt, the tradkig, and act of bankruptcy, unless the other party gave notice of hi^ intention to dispute them. But this, it seems, did not afford an effectual check to the vexatious defence so fre- quently set up to actions brought by assignees, notwith- standing the defendant was liable to pay the costs of forcing them to prove these several matters on the trial. The legislature has, therefore, now thought it expedient to enact, that in certain cases no such proof shall be required from the assignees ; and in others, that the depositions of these matters before the commissioners shall be conclusive evidence; confining, in reality, the former general obligation of proof under the old system, to what may now be consi- dered as excepted cases under the new. Thus by section 90. of the new act, it is declared, that in Enactment any action by or against an assignee — or any commissioner ^.^ *^ "?' .,, PI .. ticeofm- or person actmg under the warrant of the commissioners, tention to for any thing done as such commissioner, or under such dispute the warrant — no proof shall be required at the trial of the sion in petitioning creditor's debt, the trading, or act of bankruptcy, actions, unless the other party in such action shall (if defendant, at or before pleading — and, if plaintiff, before the issue joined) give notice in writing to such assignee, com- missioner, or other person, that he intends to dispute some and which of such matters. And the party giving notice renders himself liable to the costs occasioned by it, if the disputed matter is proved by the other party upon the trial. By section 91., also, a similar provision is made as to In suits m suits in equity by or against the assignees, unless the ^'l^'^^y* party in the suit shall, within ten days after rejoinder, give notice in writing to the assignees of his intention to dispute ; in which case, if the assignees shall prove the matter so disputed, the costs occasioned by the notice are, in the discretion of the Court, to be paid by the party giving it. 3 c 3 75fi OF EVIDENCE [Ch. 19. Difference between former and present enact- ments. When de- positions made con- clusive evidence. These two clauses, it will be perceived, are not (like those in the former statute ( 1 ) ) confined to actions and suits by or against the assignees — but extend to those against the commissioners^ or any 'person acting under tliem. There is, also, a material difference in the enactments ; the former statute providing, that in case of no notice being given, " the commission, and the ■proceedi7igs of the commissioners under the same, shall he evidence to he received" of the peti- tioning creditor's debt, the trading, and act of bankruptcy — while the present statute declares, that " 7io proof shall be required at the trial" of those matters. But when the assignees sue for a debt or demand for which the bankrupt might himself have sued, the present statute takes away from the defendant all power whatever of contesting those proceedings after a certain period al- lowed the bankrupt to dispute the validity of the commis- sion ; for by section 92. it is declared, that if the bankrupt shall not (if he be within the United Kingdom at the issuing of the commission) within two calendar months after the adjudication — or (if out of the kingdom) then within twelve calendar months — give notice of his intent to dispute the commission, and proceed therein with due diligence, the depositions taken before the commissioners of the petitioning creditor's debt, the trading, and act of bankruptcy, shall be conclusive evidence of the matters therein respectively contained in all actions or suits brought by the assignees for any debt or demand, for which the bankrupt might have sustained any action or suit. In treating of these several enactments, it is proposed to consider, jfrs/, the evidence necessary to be adduced by the assignees where the defendant is entitled to give, and does give, due notice to dispute the petitioning creditor's debt, or any of the other requisites to support the com- mission. Secondly, Where the defendant is not entitled to give such notice. Cl) 49G.3. C. 121.S. 10, 11. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 759 Thirdly^ Where no notice has been given by him. And lastly, to consider tliose cases, wiiere the defendant is, by his own acts, wholly estopped iVoni tlispiitiiig the title of the assi 1 titionmg chapter (4) ) — it must be proved, in the first place, to have creditor's been contracted pn'or to some act of bankruptcy commit- ^'^^*'- ted by the bankrupt (5) ; and it requires also to be substan- tiated by the same kind of evidence, as would be required in an action by the creditor against the bankrupt himself. Therefore, where the debt arose upon a bond, an acknow- Where on ledgment of the bankrupt to a witness, that he owed the ^ "^o""- debt upon which the commission was sued out, will not su- persede the necessity of calling the subscribing witness. (6) So, if the debt of the petitioning creditor is on a bill of ex- gin of change, drawn by the bankrupt and indorsed by him to exchange. the petitioning creditor — besides adducing evidence that it was indorsed before the commission — it will be necessary, in order to prove the debt, to go regularly through the several proofs required in an action by an indorsee against (1) Howard v. Ramsbottom, (4) Sec ante, Ch. IV. "Taunt. 526. (5) See Scclion 19. Ex parte (2) Scclion 91. Wainman, C. B. L, 23. (5) Decharmc v. Lane, 2 Camp. (6) Abbott v. Pluinbc, 1 Doug. 324. 216. 762 OF EVIDENCE [Cb. 19. Petitioning creditoi-'s debt. Promis- sory note. Banker's check. Accept- ance of bill, where notice to prove the consider- ation. the drawer. For instance, it must be shown that the drawer had sufficient notice of the dishonour of the bill, or that the notice of the dishonour was, under the circum- stances of the case, dispensed with. And, for this purpose, an acknowledgment by the bankrupt (the drawer) in a con- versation between him and the petitioning creditor (the in- dorsee or payee) — that the bill would not be paid, but would come back to him — has been deemed sufficient evidence, although the acknowledgment was made after the act(l) of bankruptcy. So, the date of a promissory note, which was relied on as the petitioning creditor's debt, (where the note was made by the bankrupt prior to the act of bank- ruptcy) has been considered as presumptive evidence that the note existed before the act (2) — though in this case it was held, that no declaration of the bankrupt stihseqimit to his bankruptcy would be admissible in evidence to prove it. But where the petitioning creditor had, upon an appli- cation for a loan from a bankrupt, delivered to him a check on his bankers for 100/., which check had got back again to the hands of the petitioning creditor, as if satis- fied, but he was unable to give positive proof that the check was actually paid, — the check of itself was in this case held not sufficient evidence of a petitioning creditor's debt. (3) So, where the proof of the debt rests merely upon the prima facie evidence of the acceptance of a bill of exchange by the bankrupt, and the defendant gives the assignees notice to prove the consideration, it will be advisable for them to do so ; for, though a plaintiff generally is not bound to prove the consideration for the defendant's acceptance, yet if there are circumstances of suspicion as to the consideration, and the plaintiff has notice that he will be required to prove it, the jury may pronounce the debt collusive, though no direct evidence is given to impeach the acceptance ; for they have a right to ( 1 ) Brett V. Lcoett, 1 5 East, 2 1 5. (2) Taylor v. Kinlock, 1 Star. 176. (.>) Bleasby v. Crossley, 2 Car- riug. & P. 215. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 763 require, from the aspect of the whole transaction, something Where no- to corroborate the prima facie proof of hand-writing. (1) ^^ g^""^" - And where the petitioning creditor is the indorsee of a bill or note, the date of the instrument then affords no presumption as to the commencement of the debt ; but the actual time of the indorsement in this case is material, and ought to be satisfactorily proved. (2) An acknowledgment by the bankrupt, that he owed the As to ac- petitioning creditor lOOl. before the act of bankruptcy — meruofthe though such acknowledgment might be made on the very debt by the day the act of bankruptcy was committed, or indeed at ^" '^"'^ ' any time before the suing out of the commission — was held by Lord Kenyon sufficient evidence of the existence of the debt. (3) But this position, as well indeed as the case of Brett V. Levetf, appears to be considerably shaken by subsequent decisions ; in which the rule seems to be laid down, that declarations or admissions made by the bank- rupt after the act of bankruptcy, are not admissible evi- dence on the part of the assignees in support of the com- mission. (4) And where, on an indictment against a bank- rupt, the petitioning creditor's debt was alleged to be due to A., B., and C, surviving executors of D., — it was ruled to be necessary (besides proving them to be executors) to show, that they all assented to act in discharge of the trust — and that a general admission by the bankrupt, of a debt due to the executors of D., would not supply the defect. (5) But, as the bankrupt's declarations before the act of bankruptcy are admissible evidence in support of the petitioning creditor's debt, so they are likewise evi- dence to disprove it. Thus, in an action by the assignees against the sheriff*, the bankrupt's declarations before the bankruptcy — showing that the commission had been founded (1) Abraham V.George, 11 Price, Watts v. Thorp, 1 Camp. 376. 423. Taylor v. Kinlock, 1 Star. 176. (2) Rose V. Rowcrqft, 2 Camp. Smallcombe w. Bruges, IsPri. 156 245. Sanderson v. Laforest, 1 Carring. (3) Dowton V. Cross, 1 Esp, 168. 46. (4) Rohson V. Kemp, 4 Esp. 233. (5) Rose v. Barnes, 1 Star. 243. J6i' OF EVIDENCE [Ch. 19. Petitioning creditor's debt. Entries in books, &c. Deed of reference between partners. in a collusion between himself and the petitioning creditor to create an apparent petitioning creditor's debt — are re- ceivable in evidence against the assignees, though the petitioning creditor vi^as not one of the assignees under the commission, fl) An entry in the bankrupt's books (2), or an account signed by the bankrupt — in either of which he charges him- self with a balance brought over on a day before the bank- ruptcy — will be admissible evidence of the debt, provided it is shown, that the entry was made, or the account alloxoed, by the bankrupt before the bajikruptcy ; but this must be proved by extrinsic evidence, and independent of the writing. (3) It will not, however, in any case be absolutely necessary to prove, that the debt continued from the pe- riod when it was so admitted, down to the time of the bankruptcy ; for when it is shown to have once existed prior to the act, its continuance will be presumed. (4') But where it was necessary to prove a good petitioning cre- ditor's debt on the 20th May, — it was held not sufficient to show, that on the 20th January preceding a sum of 700/. was due from the bankrupt — there being stibseqjieni receipts and payments and other continuing transactions between the petitioning creditor and the bankrupt ; for after a period of three months it was considered impossible to say, under these circumstances, whether 1000/. or 5/. was really due. (5) Where a petitioning creditor's debt was to be proved, by a deed of reference between himself and other persons (with whom he had been in partnership, and one of whom was the bankrupt) of all accounts between them, or any two of them, and also by an award of a separate debt of above 100/. due from the bankrupt to the petitioning cre- ditor; — it was held, that it was not sufficient to prove the ( 1 ) Thompson v. Bridges, 8 Taunt. 336. B Moore, .376. (2) Eiucr V. Prcslon, Rep. temp. Hard. 378. Watts v. Thorpe, supra. (3) Home V. Coryton, 4 Taunt. 560. (4) Jackson v. /?-(t;j«, 2 Camp. 50. (5) Grcsln/ v. Price, sCarring. & P. 48. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 7G5 execution of the deed b}' the petitioning creditor and the Where no- Imnkrupt, with.out proving also the execution of it by the "^ g^^e^ '- other partners, by whom it appeared on the face of it to have been executed : for that the consideration of each to execute his own submission was the submission of all the others ; and without proof of that, the arbitrators had no authority to make their award between any of the parties. (1) Where the action is between third jmrties, but the Declara- assignees are virtually parties to the suit — as in an action pptitioning by a third person against a sheriff for a false return of creditor. nulla bona, which the assignees give instructions to defend, on the ground that at the time of the levy die party was a bankrupt — a declaration by the petitioning creditor (who was also in this case one of the assignees) made even subse- quent to the suing out of the commission, that the bankrupt did not in fact owe him 100/., has been held admissible evidence of there being no petitioning creditor's debt to support the commission ; on the ground that, though the petitioning creditor once swore to the existence of a debt of 100/., he might, upon a further investigation of the accounts, have found that he was mistaken. (2) And in a similar case, where the petitioning creditor was not one of the assignees, Sir J. Mansfield said, " he had no doubt that the admission of a petitioning creditor, as to any fact respecting his debt, was good evidence against the debt." (3) These decisions are, however, con- trary to the principle laid down by Lord Eldon in several cases, viz. that the petitioning creditor is pledged to the validity of the commission, and ought not to be permitted to controvert a proceeding which originates from him- self (4) ; and they are also inconsistent with another case in the Common Pleas, where it was held that the petitioning creditor was estopped, by his affidavit of debt on suing out (1) Antram v. Chace, 15 East, Harmer v. Davis, 1 Moore, 500. 209. contra. (2) Doivdcn V. Fowle, 4 Camp. (4) Ex parte Glossop, 2 Rose, 38. 386. Ex parte Jackson, ibid. 188. (3) Young V. Smith, 6Esp. 121. Ex parte Graves, 1 G. &J. 86. 766 OF EVIDENCE [Ch. 19. Trading, the Commission, from contending afterwards that the debt was insufficient to support it. (1) And though some of these cases appear to have been decided on the principle of estoppel, and others on that of the competency of a witness, it does really seem impossible to reconcile the decisions. As to proof With respect to the different trades and calhngs, which oUradmg. ^^ nomine render a man liable to be made a bankrupt, and the different acts which constitute in law a trading, the reader is referred to a former chapter. (2) It may suffice here to observe, that where particular employments or callings are not specified in the statute, the general description in it of persons liable to become bankrupt cannot be satisfied, unless there be proved acts both of buying and selling {S), or of buying and letting for hire — except, indeed, where the trading sought to be established is by any of the new general modes of trading specified in the statute — such as the using the trade of merchandize by way of commission {^)i or by the worhnatiship of goods or comrnodities — in which case, both the acts of buying and selling, or of buying and letting for hire, may be held unnecessary to be proved. And whether a person of a particular description has used the trade of merchandize, in the sense which the legislature has affixed to the term — or whether a person once in trade has actually ceased his trading — are both questions for the determination of the judge upon the several facts found by the jury. By a Where the person belongs to a class which is excluded farmer. ^y ^^le statute, as if he is a farmer, (who may notwith- standing, as we have formerly seen, be a bankrupt, though (1) Hamier v. Davis, 1 Taunt, chant for the orders he procured 577. for goods, and not being debited (2) Chap. II. with the goods himself, the goods (3) See Section 2. and Lord El- being supplied by the merchant to lenborough's judgment in Stdtonv. the customer, was held not to be Weeley, 7 East, 448. a trader. Per Abbott C. J. Doe v. (4) Before the new act, a person Lawrence, 2 Carring. & P. 1^5. receivinff a conwiission from a mer- Sect. 1.1 IN ACTIONS BY AND AGAINST ASSIGNEES. 767 not in the capacity or character of a. Janner) — the question Where no- for the jury will be, whether the acts of buyinpr and selling ^' ^^ g^^en . were incident to the enjoyment of the farm, or were done collaterally, and with a view to profit. (1) To resolve this question, the important consideration will be, what was the nature of the acts themselves, and the use to which the bought articles were applied. The acts of buying and selling may be so frequent and so extensive, as evidently to have no reference to the business of farming ; and may also be transacted so publicly, and with such a manner and sem- blance of trafficking, as to show a manifest intention in the part}' to hold himself forth as a general dealer in the articles bought and sold. On the other hand, they may be only occasional acts, or incidental to the occupation of the farm ; in which case, the supposition of his being a general dealer in those articles, or of seeking his livelihood by buying and selling them, will be wholly negatived. Buying, also, for the express purpose of selling again is not decisive of the question, (though in one case great stress was laid upon such evidence (2) ); for it may be incidental to the occu- pation of the farm, and to the farming business. The true question, indeed, will always be, whether the farmer bought with a view to make a profit as a trader, independently of tlie occupation of his farm. (3) Under the words " Dealer and Chajwian^^ commonly used Proof in a commission, and the general statement that the bankrupt ""''^>" got his living by buying and selling, evidence may be given « dealer of any species of trading. (4-) Thus, where such general ^^^ <;','^P- words were used in a commission, evidence of •' dealing in Jiaps" was held admissible, though the commission described the bankrupt as *' a dealer in cattle" (5) And an acknow- Acknow- ledgment by the bankrupt, that he was in partnership "joith '^"g^^ent ship. (1) Stewart v. JBaU, 2 N. R. 79. (3) Patten V. Browne, 7 Taunt. (2) Bartkohmeiu v. Sherwood, 409. 1 T. R. 573. in note ; but see Stew- (4) Ex parte Herbert, 2 Rose, art V. Ball, 2 N. R. 8 1 . per Cham- 248. 2 V. & B. 299. Hale v. Small, breJ. 2B. &B. 25. (5) 2B.&B. 25. 7CS or EVlt)ENCE [Ch< 19. Jet of bank- ruptcy. another as a trader, coupled with proof of his having given directions in the concern, has been held sufficient evidence to constitute a trading, though no express act of buying and selling during the partnership, as to him^ could be established in evidence. (1) In a late case, however, at Nisi Prills^ Lord Chief Justice Best entertained some doubt as to the correctness of this decision, though he received the proof, giving the defendant leave to move to enter a nonsuit. (2) Proof of act of bank- ruptcy. The next fact to be proved is, that the bankrupt has committed an act of hanlcru-ptcy. The several acts of bankruptcy, some one of which it will be necessary to establish in evidence, have been already enumerated in a former part of this work. (3) The greater portion of them, and indeed all those specified in the Zd section, must be ** nsoith intent to defeat or delay creditors ,-" therefore the iyiteiition of the party in doing the act, and not the conse- quence of it, is the criterion to determine whether it amounts to an act of bankruptcy or not. Thus, though no creditor be in fact delayed, still the conduct of the party plainly manifesting an intention to delay his creditors, will con- stitute a positive act of bankruptcy (4), which does not require the intent to be productive of the effect. The intention will be, of course, more or less apparent, accord- ing to the varying circumstances of each particular case. In general, the previous conduct of the bankrupt, and his declarations at the time of the state of his affairs, are the strongest indications of what his motive is, in doing or suffering the act insisted upon as an act of bankruptcy. And though the delay of creditors was not the immediate or principal object of the party, yet (as has been before remarked (5) ) if that proves to be the necessary co7iscqiience of his proceeding, it will be evidence of his intent, upon (1) Parker v. Barker, 1 B. & B. 9. 5 Moore, 226. (2) Bromley v. King, 1 Ryan & M. 228. (5) Chap. III. (4) Ante, page 48. (5) See ante, page 45. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 7G9 the principle that every man must be presumed to foresee Where no- and intend what is the inevitable consequence of his own ' ^^ g't'g" ' act. (1) The act of bankruptcy by beginning to keep house, we Keeping have before seen (2), is usually proved by denial to a "O^'^- creditor when the party is at home, such denial being authorized by the bankrupt. But this, it will be recol- lected, is merely as a medium of proof, and is not the ojily evidence of the fact ; for if a trader has no clerk or servant, the act cannot in that case be evinced through such a medium. Therefore, where a trader shuts himself up in his house, or secludes himself in any private apartment for the purpose of avoiding the fair importunity of his cre- ditors, who are thus deprived of all means of communi- cating with him, he begi?is to keep house within the meaning of the statute, and commits an act bf bankruptcy. (3) For the denial to the creditor, as it is the cause of delay to him, is merely (like every other act which necessarily produces such a consequence) presumptive evidence of the bank- rupt's intention to effect that delay, and not (abstracted from all intention and design) a specific act of bankruptcy in itself. A denial to several persons whom the bank- I'upt's servant did not know, but whom from their frequent calling she believed to be creditors of the bankrupt, is evidence to go to the jury, to say whether they were so or not (4) ; as well as a denial to only o?ie person calling to make inquries about a dishonoured bill of exchange, and whom the bankrupt believed to be a creditor. (5) So, it is for a jury to say, whether the bankrupt denied himself for the real purpose of delaying his creditor, or because he called at an unseasonable hour. (6) (1) Per Lawrence J. Foivler v. per Bayley J. 388.; and see ante, Fadget, 7 T. R. 516. Per Lord 59. E[\enborough,Iia7nsbottotnv. Lewis, (4) Jameson v. Eamcs, 1 Esp. 1 Camp. 279. Per Gibbs C. J. Hoi- 38 1 . j^-oyd V. Whitehead, 3 Camp. 530. (5) Bleasbt/ v. Crosslei/, 2 Car- (2) See ante, 53. ring. & P. 213. (3) Dudley V. Vaitghan, 1 Camp. (6) Hughes \. Gillman, ibid. 32.; -211. Castell's Bankruptcy, cit. and see ante, 58. 3 D 770 OF EVIDENCE [Ch. 1.9. Act of It may be proper, under this act of bankruptcy, to ^^"'^" consider in what cases the hankrupfs declarations are ■ receivable in evidence ; which are admitted only upon ^? ^^J^y' the principle, that what a party says at the time of doing of the an act is evidence for the purpose of showing its true bankrupt's nature and character. Thus the declarations of a bank- (leclar- . /• • • i • i ii- i ations. rupt at the time of quitting his awelhng-house, or im- mediately subsequent, are admissible in evidence, in order to show the motive of his departure ; for it is the i7itent with which he departed that constitutes the act of bank- ruptcy. ( 1 ) So his order to a servant to deny him to a creditor is (as we have before seen), for the same reason, evidence of the intent of his being denied. The de- clarations, also, of the bankrupt the day after his return home, have been held admissible in evidence of the motive of his absence (2) ; for, as the whole absence from his dwelling-house is but one act of bankruptcy, there seems to be no reason why declarations made so soon after his return should not be considered as much a part of the transaction, as declarations made just previous to his de- parture. And it has been well observed by the late Sir William Evans, in his edition of Pothicr (3), that the con- versation of a person on his return home naturally connects itself with the occasion of his absence, and is an indication of the existing state of his mind ; and that wherever the expressions can be so connected with the actions, as to be regarded as the mere result and consequence of the co- existing motives, they form a proper criterion for judging of the person's intention and conduct. But Mr. Phillipps, in his treatise (4) on Evidence, very properly adds to this remark, that it would be too much to infer generally from the above decision, that the declarations of a bankrupt, made at any time afterisoards, can be admitted as evidence {\) Ambrose v. Clendon, Rep. (.3) Vol. ii. 2S5. teinp. Hard. 267. (-1) Vol.i. 278. (2) Botemnn v, Bailey, 5T.\i. 5J2. Sect. I.] IN ACTIONS BY AND AGAINST ASSIGNEES. 771 to explain an antecedent absence, or any other past trans- Where no- miction which is completely finished. Such statements, fi^c given, indeed, concerning past transactions are in general wholly inadmissible, as they form no part of the res gest(S. And if there is any ivncertainty of the time when a declaration of this kind is made, it cannot then be received in evidence ; as where a deposition stated, that the bankrupt had ab- sented himself, and had admitted that he had done so for the purpose of avoiding his creditors — but specified no time when such admission was made, — it was held not evenj^rimd Jacie evidence of the act of bankruptcy. (1) In a recent case, also, where the declaration was made a fcxs) days after the alleged act of bankruptcy, Lord C J. Abbott held that it was inadmissible. (2) Where the act of bankruptcy insisted upon by the as- Fraudu signees is a fraudulait grant or conveyance^ and the deed is produced in evidence, the execution must be proved in the veyance ordinary course by a subscribing witness. An admission by the defendant of the execution of the deed will not dis- pense with this evidence, not even if the defendant is a party to the deed (3) ; for though a party may acknowledge a deed, yet he may not know every circumstance attending the execution ; and the subscribing witness may be cognizant of a fact, not within the knowledge or recollection of a party to the deed, but of which he is nevertheless entitled to avail himself. (4) And, notwithstanding the defendant at the trial should himself produce the deed in compliance with a notice, this also is held to be not a sufficient ground for dispensing with the ordinary proof (5) — though such was at one time considered to be the rule (6) : — for the mere pos- session of an instrument by one party does not, in general, absolve the other from calling the subscribing witness. But if the defendant (in pursuance of a notice) produces a lent grant or con- (1) Marsh V. Meager, 1 Star. (4) Per Le Blanc J. 4 East, 55. 553. (5) Gordon v. Secrctan, 8 East, (2) Schoelingv. Lee, 5 Star. 149. 548. (3) Abbot V. Phnnbc, 1 Doug. (6) Rc.vv. Middlezoy,2T.R.4o. 2 1 C. Bon'/es v. Lans,tvor(Jn/, 5 T. R. 3GG. 3 D 2 772 OF EVIDENCE [Ch. 19. Act of bank- ruptcy. Fraudu- lent trans- fer. Lying in prison. deed to which lie is not only a party, but under tsohich he holds property, or claims any beneficial estate, it will then not be necessary that the plaintiff should call an attesting wit- ness to prove the execution. (1) And upon this principle, it seems, that where a fraudulent bill of sale is given by the bankrupt to the defendant, the admission by the defendant of the execution of the deed, in his examination before the commissioners, would (in an action of trover brought by the assignees to recover the property claimed by the de- fendant under the deed) supersede the necessity of calling the subscribing witness. (2) A fraudulent conveyance can- not be read to prove an act of bankruptcy, if it has not the proper stamp affixed to it. (3) In order to shew that a grant or transfer to a creditor is really fraudulent, the assignees must prove, first, that it was made on the eve of bankruptcy ; secondly, that it was made in contemplation of bankruptcy ; and, thirdly, that it was made voluntarily, and for the purpose of favouring the creditor. (4) Whether a transfer of goods is made in coji- templation of bankruptcy is collected from various circum- stances, such as the secrecy of the transaction, the unrea- sonable hour at which the goods are removed from the bankrupt's premises, the proximity of the transfer to the time of the bankruptcy, and many other matters which may shew what was the i7itent of the bankrupt in making the transfer, and what was his knowledge of his own in- solvency. (5) To prove the act of bankruptcy by lying in prison {d), the detention, and the cause of the detention, must be shewn. The former may be proved by producing the prison books, containing entries of the dates of the several commitments and discharges to and from the prison (7) ; (1) Pearce v. Hooper, 3 Taunt. 62. Orr v. Morice, 5 B. & B. 139. (2) Botvles V. Langivorthi/, 5 T. R. 366. (3) Whitwell V . Dimsdale, Peake, 168. (4) See ante, 63. et seq. 71. et seq. (5) See ante, Chap. XI. Part 2. Sect. 6. (6) See ante, 76. et seq. C7) Hex V. Aickles, 1 Leach, 436. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 773. but they are not evidence of the cause of the commitment, Where no- for the committitur itself is higher proof, and if in existence ^' ^^ gwen . ought to be produced. (1) The assignees will not upon the trial be tied down to Assignees proof of the specific act of bankruptcy, upon which the "°*' ''^'* • • r 1 1 I • iM T 1 clown to commission was tounded, bemg at hberty to repudiate that, proof of and rely upon any other. (2) Some act of bankruptcy, ^"y ^P^- however, must be proved to have been committed before the issuing of the commission, and aftei- the contracting of the petitioning creditor's debt (3); and if that is proved, it is immaterial how recently it was committed before the commission issued (4-) — or how many acts of bankruptcy may have been committed by the bankrupt. (5) But Practice where the Lord Chancellor directs an issue, or an action at ^"^''^ Lord law, — though he will generally permit other acts of bank- Chan- ruptcy to be given in evidence, yet as this is considered an ^^"o'' ^i- rects an indulgence to the party seeking to support the commission, issue. such party will be required to state by affidavit upon xsohat particular acts of bankruptcy he relies (6); and to give notice to the other party, by what evidence he intends to prove his case. (7) Upon one occasion, indeed, where the commission was proved (on the trial of an issue) to have been founded on a concerted act of bankruptcy. Lord Eldon refused to direct another issue with liberty to prove other acts. (8) If the issuing of the commission and the act of bank- Where act ruptcy happen on the same day, evidence is then ad- bank- . ., 1 • 1 • 111 • • ruptcy and missible against the assignees to shew that the commission commis- was issued (that is, sealed) prior to the act of bank- sion on ruptcy. (9) A verdict upon an issue directed out of Chan- (1) Saltev. Thomas, 5 Bos. & P. (5) Section 19.; and see BrTjant 188. V. Withers, 2M. &S. 151. Do- (2) Reed v. James, 1 Star. 134. noi'onv. Duff, 9 East, 21. Rex w. Buck. 79. Bullock, 1 Taunt. 94. (3) Ex parte Wainman, C. B. L. (0) Ex parte Burgess, Buck. 2.5. 235, (4) Hojyper v. Richmond, 1 Star. (7) Ex parte Bogen, ibid. 157. ,507. (8) Ex parte Prosaer, Buck. 77. (9) Wi/doivns case, 14Vcs. 80. 3 D 3 774 OF EVIDENCE [Ch. 19. Act of bank- ruptcy. Where commis- sion against several partners. eery, to which only one of the defendants was a party, may be received against all the defendants to prove the time of the act of bankruptcy. ( 1 ) If the commission is against several partyierSi each most be proved to have committed an act of bankruptcy ; for the act of one, in this respect, will not bind the rest — 'though he is the only one transacting the business, and residing at the place where it is carried on. (2) It is to be remembered, we may observe once more, that all the preceding observations as to the proof of the petitioning creditor's debt, the t7'ading, and t^e act of bank- ruptcy, will only apply where the party in the action is entitled to give, and has duly given, notice of his intention to dispute the validity of the commission. Proof of issuing of the com- mission. The next link to be considered in the chain of evidence (though it is in practice offered as the first in order of proof at the trial) is the due issuing of the commission ; and this it will be incumbent on the assignees to prove, whether the defendant gives notice or not, of his intention to dispute the three preceding matters of proof. To establish this, it v/ill be necessary to pi-oduce the original commission under the Great Seal. (3) But now, by section 96. of the new statute, no commission, or adjudication of bankruptcy, or assignmejit of the personal estate of the bankrupt, or certificate of conformity, is receivable in evi- dence in any court of law or equity, unless the same re- spectively shall have been first entered of record at the Bankrupt Office. The Great Seal therefore of the king- dom, which has been hitherto considered the most solemn mode of authenticating any instrument, appears to be no longer sufficient evidence to verify a commission of bank- (1) Lowfield v. Bencroft, Bull. N. P. 40. (2) Mills V. Bennett, 2M.&S. 556'. (>) In Bullcr's Nisi Prius, as well 21 as most of the other books, it is added, " And the petition to the Ciiancellor on which the com- mission was granted ;" but this does not seem to be necessarv. Sect. 1.] IN ACTIONS BY AND AGAINST ASSIGNEES. 775 rupt; but the commission must now have a certificate in- Where no- dorsed thereon, purporting to be signed, either by the ^^ given . person appointed by the Lord Chancellor to enter of re- cord matters relating to commissions of bankruptcy, or by his deputy ; which certificate is, without any proof of the signature (1), declared to be receivable as evidence of the commission having been so entered of record. When, however, a commission is superseded, the writ of supersedeas (reciting that a commission issued on a day certain) is evidence to shew that such a commission issued on that day, even against a party who is both a stranger to the writ and to the commission ; for a commission of bank- ruptcy is considered, in law, as a proceeding to which all the world are parties. (2) If it be alleged in pleading, that Variance. the commission issued " under the Great Seal of Great Britain" it is no variance that it is, in fact, issued under the Great Seal of the United Kingdom. (3) But it is a fatal variance to allege, that the party sued the commission out of the High Court of Chancery. {4;) The bankrupt being not divested in law of any of his Proof of assign- ment. property, until an assignment is executed (5) by the com ^'''''-" missioners of his estate and effects, (which, when once made, Vests the personal property in the assignees from the time of the bankruptcy (6) ) ; — the assignment, therefore, becomes an important document to be proved, in order to complete the proof of the title of the assignees ; though, by the courtesy of practice in the Court of King's Bench, it is generally admitted on the trial, unless there are substantial reasons to the contrary. (7) When proof of it is insisted upon, it must be proved in the regular manner, by pro- ducing the deed, and calling the attesting witness to prove the execution of it. But where the assignees produce the (1) Section 96. 58. I Rose, 222.; and sec ante, (2) Gcrvisv.Wcstern Canal Com- 137. pavijt 5 M. & S. 76. (5) And see ante, ."20. (3) Rex- V. Bullock, 1 Taunt. 71. (6) 2 Rep. 26. a. {4) Poi/nton V. Forstcr, 3 Camp. (7) Read v. Cooper, 5 Taunt. 89. 3 D 4' 776 OF EVIDENCE [Cb. 19. Act oj assignment under a notice from the other party, it is then bank- admissible in evidence for that party, without proof of the , execution by the subscribmg witness, it the assignees claim any benefit (1) under the assignment. The assignment must (as well as the commission) have the proper certificate indorsed of having been entered of record at the Bankrupt Office, before it can be read in evidence. Proof of With respect to actions relating to the bankrupt'syr^eAoM ancf sale properti/i (which, as we have already seen, does not pass by the general assignment of the commissioners) — the title of the assignees is to be substantiated by producing the bargain and sale to them from the commissioners, and proving its exe- cution in the ordinary way. But, unless the commissioners execute the power with which they are invested in the pre- cise manner prescribed by the statute, it will have no effect in passing the estate. (2) The deed must, therefore, appear to have been enrolled in some court of record (3) ; and this must be done within six months after the date of the deed> according to the express provision of the statute of the 27 H. 8. c. 16. relating to the enrolment of bargains and sales. (4) The enrolment may be proved by a certificate on the bargain and sale signed by the proper officer, which will be evidence also of the time when it was enrolled (5) ; for the indorsement is considered as part of the enrolment, which being a I'ecord, is therefore conclusive as to the time. (6) And, as the enrolment of the deed thus becomes a record, the deed may likewise be proved by an examined copy of the enrolment, signed by the proper officer; and the time of the enrolment may, in like manner, be proved by an examined copy of the officer's indorsement on the enrolled deed. (7) (1) Pearce v. Hooper, 3 Taunt:. (5) Kinnerslcy v. Orpe, 1 Doug. 62. Orr V. Morice, 5 B. & B. 159. 56. 58. (2) Perri/\. Bowes, SirT. Jones, (6) Rex in aid of Rccd v. i/b;> 1 96. Bcnnet v. Ganih), Carth. 17s. per, 3 Pri. 495. BllxM V. Bnnhj, 12 Mod. 3, , (7) See 1 Phill. 588. 499. 2Phill. (3) Sect ion 64. 288. (4) 2 Phill. 288. ' Sect. 2.] IN ACTIONS BY AND AGAINST ASSIGNEES. 777 No stamj) is any longer necessary to give validity to the Where no. commission, or the assignment, or indeed to any other ''t"^gi»^'«- document or conveyance relating solely to the estate or No stamp cJJects of the bankrupt. necessary. Section II. Where the Defendant is not etititled to give Notice to dispute the Commission. In all actions brought by the assignees for any debt or Where demand, for which the bankrupt himself could have sued, tpedepow- ' "^ ' tions are if his bankruptcy had not intervened — unless the bankrupt conclusive has given the notice before mentioned ( 1 ) of his intention ^^'"^'^ce. to dispute the commission — the depositiojis taken before the commissioners at the time of or previous to the adjudica- tion, will be conclusive (2) evidence of the petitioning cre- ditor's debt, the trading, and the act of bankruptcy — that is, provided the facts stated in the depositions amount to such proof of those several matters as is required by law. For, when the time given by the statute to the bankrupt to dis- pute the commission is elapsed, the defendant in the action will then have no right to force the assignees to give formal proof of these several matters. But an action brought by the assignees, to recover back the payment of a debt made by the bankrupt to a creditor after his knowledge of an act of bankruptcy, or after the issuing of the commission — for which the hanl'rupt himself could, of course, have no right to sue — would not be such an action as would deprive the defendant of his right at any time to dispute these matters, upon giving the requisite notice of his intention to Ao so. The term (3) conclusive must be understood to apply to How tar the several facts contained in the depositions, and not to .^ '^^^o- ^ ' sitions are (1) See ante, 758. witnesses to contradict the facts (2) Section 92. stated in the depositions. Ellis v. (3) Before the new statute, it Slurlci/, .1 Camp. 424. Brown v. was held, that a party could call Foncsiall, 1 Holt, 1 90. evidence. 778 OF EVIDENCE [Ch. 19. JDeposi- the conclusio7is of law drawn by the witnesses, or by the '""^' commissioners, from those facts. For though no witness conclusive Can be called upon the trial to contradict the Jhcts deposed to (1), yet if the depositions, upon the face of them, are not legal proof of a petitioning creditor's debt, trading, and act of bankruptcy, they cannot be received in evidence, notwithstanding those matters have been found by the commissioners. (2) Thus, though the deposition (of the witness to prove the act of bankruptcy) will be conclusive evidence of the time when the bankrupt did a certain act, and of the fact itself, it will not be evidence of its amount- ing to an act of bankruptcy. So the deposition of the petitioning creditor will be evidence of a certain sum due to him, and also of the character in which he claimed it, whether as executor, or assignee — nor will it be necessary in either of these cases to produce the probate, or the assign- ment (3) ; but, whether the sum due was a debt to support a commission, — that is an inference of law, which the Court upon the trial will not be estopped from determining, by the adjudication of the commissioners. So, if a deposition state, that the deponent witnessed the execution of a deed by the bankrupt, by which he assigned his property to A. B., — though this is evidence of such a deed as stated in the deposition (4), yet it is not evidence that the deed it- self was an act of bankruptcy. The whole effect, indeed, of the provision of the sta- tute is, only to make the depositions evidence — not to admit the fact of the bankruptcy to be proved ; for this must be as strictly made out by the depositions, as it would be required to be done by witnesses. (5) If the facts, therefore, stated in the depositions, are sufficient of themselves to sustain the bankruptcy, no farther proof is necessary (6) ; but they may be always objected to (1) See Humphries v. Coggan, (4) Ka^ v. Stead, 2 Star. 200. 1 Rose, 226. (5) Rawson v. Haigh, 1 Carriiig. (2) Clurkc V. Askeiu, 1 Star. 458. 80. (3) Skaife v. Hmvard, 2 B. & C. (6) Per Abbott C. J. 2 B. & C. S60. 560. Sect. 2.] IN ACTIONS DY AND AGAINST ASSIGNEES. 779 for not proving the subject-matter to which they apply. Where nut Thus, if the deposition of the petitioning creditor state <^ntiiledio UIVC TlotlCCm only, that the debt was due to him at and before the time of mill g forth the commission — not showing that it existed at the time of the act of the bankruptcy — this would be defective proof of the petitioning creditor's debt. ( 1 ) So, upon a commission sued out against the drawer of a bill of exchange, if the deposition does not state presentment and notice, there will not be sufficient evidence of the debt. (2) And again, where the deposi- tion of the witness to prove the act of bankruptcy stated, that the party absented himself on a certain day, and that he had declared to the deponent that his motive was to avoid his creditors — but not stating the time when this declaration of the bankrupt was made, — this was ruled not to be sufficient proof of an act of bankruptcy. (3) In every case, however, where the depositions turn out Defective to be insufficient proof of any of the requisites to support ^.^P'^^*" the commission, the assignees will not be prevented from be sup- callina; witnesses to establish these facts by other f4) pl'^^'^y. ^ J \ ' other evi- evidence. dence. The deposition of the petitioning creditor, being ex- Deposition pressly made evidence by the statute (5) of the several pfp^'^'^'o^ " . ... .. .. in« '"""J- determined that a witness, though he had been twice bank- rupt and had not obtained his certificate, was competent to prove (on the part of the defendant) that the goods had been delivered on the account of the bankrupt, and not on that of the defendant — the direct tendency of such evidence being, to diminish the fund divisible amongst (2) the bank- rupt's creditors. There may, however, be cases (as has been justly observed by a learned writer on the law of Scotland (3) ), where it may happen to be the bankrupt's interest, with a view to his certificate, to diminish the general divisible fund, by introducing some creditors who will carry him through all his difficulties. But, as this proceeding would be a downright fraud, and one which must be concocted in perjury, there seems to be no reason why the bankrupt should not be as much deterred from giving false evidence by the penalties attached to that offence, as any other witness who has a peculiar interest to serve. And when it appears, moreover, that the bankrupt is attempting to favour any one creditor at the expense of the others, his evidence in such a case (4) will, of course, be received with great suspicion. A certificated bankrupt has accordingly been held to be a competent witness for any was contended that the bankrupt (l) Langdcn v. Walker, cit. was inadmissible, on the ground, Cowp. 70. that though the principal debt was (2) Butler v. Cooke, Cowp. 70. barred by the certificate, yet the (3) See Bell's Com. vol.i. 493. costs consequential to it were not sect. 11 26. barred ; but the Court determined (4) And sec 1 Phill. on Evid. 65. that the costs followed the debt. 796 OF EVJDENCE [Ch. 19. Compc- lency of bankrupt. Bankrupt cannot by j)Ieading his cer- tificate, be examined for a co- tlcfendant. Unless plaintiff enters a 7iolle j)rO' sequi. creditor, whose claim against the bankrupt is barred by the certificate. ( 1 ) Where a bankrupt is one of several defendants in an action, he cannot, by pleading his bankruptcy, be admitted to give evidence for the other defendants, notwithstanding he has obtained his certificate ; for in the event of a verdict for the plaintiff, he would be liable for costs. Therefore, in an action against a bankrupt and his partner, the bank- rupt was held not competent to prove that the goods were sold to such partner onl3\ (2) Neither will a bankrupt, on proof of his certificate in the progress of the trial, be permitted to take a verdict, for the purpose of qualifying him as a witness for his co-defendants. (3) As where he was sued with his other partners on a promissory note, he could not thus be called as a witness to prove an alteration in the note, (•i) But where, upon a plea of bankruptcy by one of several defendants, the plaintiff enters a nolle prose- qui as to him, the bankrupt is thereby rendered a compe- tent witness for the other defendants. (5) Bank- rupt's wife not com- petent to support commis- sion. The wiyb of the bankrupt is no more competent to sup- port the commission than the bankrupt himself, on the well known principle of law, that a perfect unity of interest subsists between husband and wife. And the power, which is given to the commissioneis by the 37th section of the new act, to examine the wife as to the discovery of the bank- rupt's property, is limited to that express purpose, and to the commissioners alone, and does not extend to render her a competent witness for any other purposes, or before any other tribunal. (6) But in an action of trover by assignees against bankers to recover a promissory note, alleged to have been paid by (1) Moody V. King, 2 B. & C. (4) CwmV v. CAi/rf, 3 Camp. 283. 558. (.5) Moody \. King, supra; and (2) Raven \, Dunning, sEsp. 25. see 1 Phill. on Evid. G5. 77. (•>) Emmet v. Butler, 1 Taunt. (6) And sec 2 Phill. Ev. 284. 599. 1 Moore, 322. Sect. 6.] IN ACTIONS HY AND AGAINST ASSIGNEES. 797 the bankrupt in contemplation of bankruptcy, and on which Compc- they claimed a lien, — Lord Kenyon admitted the evidence f'^"i^ '^, , "^ . •' bankrupt. of" the bankrupt's wife, who was called to prove, that it was paid to the bankers in contemplation of bankruptcy — thinking that she was an indifferent witness between the parties ; inasmuch as if the assignees recovered, the de- fendants would be then creditors against the bankrupt's estate to the amount of the note. ( 1 ) But it seems doubtful whether tliis decision could, upon strict principle, be sup- ported ; for if the assignees succeeded in the action, the general fund would be augmented by the amount of the note ; and though the bankers might prove it under the commission, yet, if the bankrupt's estate did not pay 205. in the pound, the divisible fund would be finally increased by the difference between the amount of the note, and the amount of the dividends which the bankers would receive upon their proof. The declarations of the bankrupt made before his hank- Astobank- ruplcij. as to the existence of the petitioning creditor's debt, ^\^^ \. "^ . . . . . clarations we have seen (2), are receivable in evidence as an admis- and letters sion of the debt ; for the bankrupt then had no interest to ^^^°^^ ***^ make such admission ; therefore the same objections do ruptcy. not apply to this evidence, as to that given qfte?- his hank- imptcy in support of the commission. Accordingly the bankrupt may allow his attorney (employed by him before his hanknqHcy) to give in evidence privileged communica- tions then made, though offered in proof of the act of bank- ruptcy. ('>) But, in an action brought hy the bankrupt against an assignee to try the validity of the commission, any admission of the bankrupt, though made after the bankruptcy, would be evidence against the bankrupt him- self. So the bankrupt's declarations at the time of his departing from his dwelling-house, or absenting himself, (1) Jourdaine v. Lefevre, I Esp. (3) Merle v. More, 1 Ry. & M. 66. 390. (2) Ante, 763. 798 ^^ EVIDF.NCF. [Ch. 19. bankrupt. Compe- are (as we have seen (1) ) properly received in evidence, as ^bnnK-Hif. shewing the nature of his absence ; though, in strictness, the declaration should accompany the act — or, at least, if not precisely contemporaneous, it should be so connected with it, that the declaration may be properly considered as the result and consequence of the co-existing motives. (2) Thus any letter of the bankrupt written previous to his bankruptcy, and nearly contemporaneous with the act done by him, is admissible in evidence to explain the motives of the act. And in a very recent case at Nisi Prius (which was an action brought by assignees to recover back money paid to a defendant on the ground of a fraudulent preference), — Lord Chief Justice Best acted up to the full extent of this principle, by admitting a letter of the bankrupt in evidence (though writ- ten five months before the commission issued) explaining the embarrassed state of his affairs — in order to shew that, when the bankrupt made the particular payment in question to the defendant, he had his bankruptcy then in contemplation. (3) The general rule, however, and the most correct one, ap- pears to be, that the declarations of a bankrupt ought not to be admitted to explain any past transaction, which at the time of making the declaration was completely finished. (4) For to admit such declarations would be, in effect, to re- ceive (as Mr. Phillipps justly observes (5) ) an admission by the bankrupt, that he had committed an act of bank- ruptcy — a fact, which the bankrupt himself would not be allowed to prove ; and yet it would be much less dangerous to hear the bankrupt's own account upon his oath, than his bare relation to third persons at second hand. (1) Ante, 770. C. J. Sittings Guildhall after Trin. (2) 2 Phill. Ev. 287. T. 1826. (3) Bacon v. Maine, cor. Best (4) Robson v. Kemp, 4 Esp. 233. (5) Vol.ii. 287. Sect. 7.] IN ACTIONS BY AND AGAINST ASSTGNKES. 799 Section VII. Of the Competency of Creditors. A creditor of the bankrupt is not a competent witness Not com- to increase the fund, out of which he may receive a divi- P'^'^'^"'^ ^° . . support dend. He cannot, therefore, give any evidence to deprive the com- the bankrupt of his allowance. (1) It was, indeed, held in ™ssion, or . incrctisc one case, that a creditor (who had not proved his debt) v/as the fund. competent to support the commission, though not to in- crease the estate — on the ground, that he had no immediate or certain benefit, and that it might be as advantageous for the creditor to be allowed to sue his debtor, as to receive a dividend under the commission. (2) But, as a commission of bankruptcy passes the whole of the bankrupt's estate to the assignees, and appropriates immediately to the satis- faction of his debts what could only be reached remotely and partially by the process of common law, it is, in this respect, a proceeding evidently favourable to the creditors ; and therefore in a later case, a creditor (though he had not proved) was not allowed to give evidence in support of the commission, under which he might afterwards prove and receive a dividend. (3) For it is not enough, that the cre- ditor has not availed himself of the commission — it ought to be certain that he never will — in order to render him competent. (4) And Lord Ellenborough, who had formerly been of a different opinion (5), held afterwards, that a credi- tor, though he had not proved, was yet incompetent to prove an act of bankruptcy (6) ; for that the commission (1) Shuflkwartkv. Bravo, I Sir. (3) Adams v. Malkin, 3 Camp. 507. Eggleshamv. Haines, 2Wm. 543. 11. (4) Per Lord Eldon, 1 Rose, 392. (2) Williams v. Stevens, 2 Camp, (note); 2V. & B. 177. 301.; and see Rex v. Bullock, (5) 2 Camp. 301. 1 Taunt. 71., where the Court con- (6) Crooke v. Edtuards, 2 Star, sidered, that the comraissionei's 502. might receive evidence from a cre- ditor who had not proved. 800 Compe- it-net/ of creditors. Compe- tent to defeat the commis- sion. But a cre- ditor wiio has sold his debt is com- petent. Compe- tent to a certain extent in commis- sion against members of parlia- ment. OF EVIDENCE [Ch. 19. I brought a divisible fund within his reach, and by sup- porting the commission, the creditor was enlarging his means of satisfaction. But a creditor, it has been ruled, is a competent witness to overthrow the petitioning creditor's debt. ( I ) And a ci-editor who has sold his debt, or agreed to sell it, is competent to give evidence either in support of the commission, or to increase the fund. For, in this case, the interest which he once had in enlarging the funds no longer exists ; and though a debt cannoi strictly be assigned at law, yet the assignment will be valid in a court of equity ; and after such assignment the creditor is considered merely a trustee for the purchaser, and as ceasing to have any interest in the debt. (2) In one species of bankruptcy, namely, that committed by members of parliament (3), the act of bankruptcy must necessarily be proved to a certain extent by a creditor ; for the party is adjudged by the statute to be a bankrupt, unless within one month after personal service of the summons he shall pay, secure, or compound for his debt to the satisfaction of his creditor, or enter into a bond pre- scribed by the statute; and the creditor is in ordinary cases, of course, the onh/ person who can prove, that the debt has not been paid, secured, or compounded for to his satisfaction. With reference to these negative circum- stances, the evidence of a creditor must (as to this particular act of bankruptcy) be admitted to that extent. But the necessity which exacts this admission, also limits the extent of it ; for although he must be admitted to prove what he alone can prove, yet he is not to be allowed to prove what can be established by the evidence of others. The circum- stance, therefore, of a bankrupt being a member of parlia- ment, and a banker, may be derived from other sources, (1) In re Codd, 2 Sch. & Lef. 116. This, however, must be taken with some qualification, for it may be the interest of an execution or a mortgage creditor to upset the commission, in order to confirm his own security. (2) Grattger v. Furlong, 2 Bl. 1 27.'5. Heath v. Hall, 4 Taunt. 326. (3) See ante, 85. Sect. 7.] IN ACTIONS BY AND AGAINST ASSIGNEES. 801 and ouffht not to be left to depend upon the statement of ^ompe- the creditor. (1) creditors. The petitioninir creditor is not a competent witness at tlie trial to prove the commission regularly sued out, be- j„„ cre- cause he enters into a bond to the Lord Chancellor con- ditoi" "ot ditioned to establish the several facts, upon which the x.osupvort validity of the commission depends (2) ; but his deposition taken before the commissioners, we have seen, is ad- missible in certain cases as proof of his debt, though he himself cannot be called to support it. It has, however, alitcr to been held at Nisi Prius, that he may be called to defeat the ' ^ '^^ .^'^ ' '' "^ coin mis- commission (3), or even to cut down his own debt. (4)) sion.. And it has been seen (5), that the declarations and ad- missions of the petitioning creditor have been received in evidence, for the purpose of showing the insufficiency of the debt — although, in one instance (6), the admission was made by him after the issuing of the commission. But, in all cases, the incompetence of the petitioning creditor may be removed, by releasing his debt to the assignees — though the action is brought by the bankrupt to dispute the com- mission (7); and a release to the assignees alone is sufficient for this purpose, without a release to the bankrupt. A party ordered to attend as a witness, though he allege A party that he is a creditor, and therefore incompetent, ought himfgif ^ nevertheless not to absent himself on this oroiind ; for the creditor 111 result of his examination may establish that he is not a yprtl/i"*^' creditor. (8) aticnd. A commissioner has been permitted to be examined as Commis- a witness in support of the commission, on the ground, that ^'°"'^^' ^ '^ . compe- he could not be compelled to refund the fees which he had tent. received. (9) He has still, however, an interest in the (1) Per Lord Eldon, Ex parte 58.; but see Hai'mer v. Davis, Harcourt, 2 Rose, 20,". 1 Moore, 300. (2) Grecnw Junes, 2 0^1^1^.411. (7) Kooiies v. Chapmeai, Peake, (3) Ibid. 19. (4) Lionel V. Streiton, 1 Star. 40. (s) In re Goohlie, 2 Rose, 33a (5) Ante, 765. (9) Croolse v. Edwards, 2 Star. (G) Dowdcn V. Fowle, 4 Camp. 302. 3 P 802 OF EVIDENCE, &c. [Ch. 19. Compe- future fees which he might get, if the commission were *creditfrs. supported, Vttleat quanhm. An assignee, who has released his individual claims on So an as- ^^ estate, is an admissible witness to prove the petitioning signee re- ^ ' i . i leasing his creditor's debt ; for he is then a mere trustee, whose trust ^^^^' is coupled with no personal interest. (1) (1) Tomlinsonv. WUkes, 2 Brod.&B.59i7. 5 Moore, 175. 803 CHAP. XX. OF SUPERSEDING A COMMISSION. Sect. 1 . Of Applications for a Supersedeas hj/ the Banhmpt. 2. Of the like by other Persons. 3. Of the Practice upon Petitions for a Supersedeas. 4. Of the Effect of the Supersedeas. 5. Of the Writ of Procedendo. For the Costs relating to the Supersedeas, see post, Chapter on " Costs:' And see also, " Joint Commissions,^' ante, 128. Section I. Of Applications for a Supersedeas hy the BanJcrupt. When a commission of bankrupt is improperly issued, or Wlien a fraudulently obtained, or ought no longer to be proceeded ^P"''"'?" •^ ' _ o o _ ^^ sion will in, the Lord Chancellor will, on the petition of the bank- be super- rupt or any other party concerned, accompanied by a ^®*^^''- proper statement of the facts on affidavit, order the com- mission to be superseded. But a bankrupt will not be permitted to try the validity of his commission, by actions against his debtors. (1) The writ of supersedeas issues under the Great Seal by the order of the Lord Chancellor; and the usual course pursued when the bankruptcy is disputed is, to order a feigned issue to try the bankruptcy at law (2) — unless, indeed, the commission appears plainly to have been taken out fraudulently and vexatiously, in which case it will at once be superseded. (3) (l) Lowndes v.Cornford, iRose, (2) Ex parte Wilson. Ex parte 180. 18 Ves. 299. Harlow v. Crotu- Bradshaw, 1 Atk. 217. ley in Exchequer, Buck, 273. (5) Ex parte aS'tozVA, 1 Rose, 147. contra. Ex parte Emery, 2 Rose, 234.; and see ante, 134. 3 F 2 804 OF SUPERSEDING A COMMISSION. [Cll. 20, Applica- tions by banlcrupt. Power of supersed- ing dis- cretionary in the Chancel- lor. Commis- sion may be super- seded, though strictly unim- peachable. Grounds for the ap- plication. Delay in prosecut- ing com- mission. The power of superseding a commission appears to be entirely discretionary in the Lord Chancellor, except in one instance provided for by the new statute (1) — namely, where nine tenths in number and value of the creditors agree to accept a composition from the bankrupt in satis- faction of their debts — in which case the Lord Chancellor is expressly directed to supersede the commission. (2) But, in all other cases, the same authority which enables him to issue a commission, gives him a discretionary power to recall it — possessing in this instance the same control over a com- mission of bankrupt, as other courts are used to exercise over their own writs and process ; and, indeed, he generally does act in analogy to the proceedings of the other courts in this respect. (3) In some cases, where the justice of the case requires it, the Lord Chancellor will supersede a commission, though it may be unimpeachable on strictly legal grounds. (4<) And, altliough the requisites to sustain a commission may appear on the proceedings to be established, yet if the Court be satisfied on affidavit of their insufficiency, it will super- sede the commission without an issue. (5) There are various causes for superseding a commission, for which the party against whom it is issued, or indeed any other party concerned, may ex dehito justitice apply by petition to the Chancellor. It is proposed, however, in the first place to consider those cases where the bankrupt is entitled to apply for a supersedeas. In the first place, if the commission is not opened until a long period after it issues, — that has been always held a (1) Sections loo, 154. (2) There was also only one case specified in the former sta- tutes, in which the Lord Chan- cellor was j)ositive/j/ directed to supersede a commission — and that was, where the petitioning creditor had privately compounded with the bankrupt, (5 G. 2. c. 30. s. 24.; and see Ex parte Paxton, 15Ves. 46 1. Ex parte Freeman, 1 Rose, 380.) but the new statute (sections.) omits the word " ^jnt)a/c(^-," and gives the ClianccUor a discretionary power in this respect. (3) Ex parte Freeman, 1 Rose, 380. (4) Ex parte Diifrcne, 1 Rose, 335. 1 Ves. &B. 51, (5) Ex parte Gallimore, 2 Ro&e, 254. Sect. 1.] OF SUPERSEDING A COMMISSION. 805 good ground for superseding it. (1) And by a general Grounds order of Lord Loughborough (2), if a town commission is liication,' not prosecuted by the expiration of fourteen days after its date, or a country commission at the end of twenty-eight days, each is hable to be superseded; but one day further must elapse in both cases, before the order for the super- sedeas can issue. A commission, supersedable under this order for want of prosecution, cannot be superseded by the hankntpt without a petition. (S) If the bankrupt is an infant {^) when the commission Bankrupt issues, or if all the trading took place during infancy (5), ij^f^nt; he may apply to have it superseded. So, if it be taken out a/e?He against a feme covert, it is supersedable, though upon a covert; trading prior to her marriage. (6) But when it appeared, that the bankrupt had held himself forth to the world as an adult and sui Juris, and had traded in that character for two years, contracting debts to a considerable amount, — Lord Eldon dismissed his petition to supersede the com- mission, and left him to his action at law (7) ; and the same rule will apply to a Je?7ie covert living apart from her hus- band, and holding herself out to the world as a feme sole. (8) A commission will also be superseded, if the bankrupt is not a not a trader when the commission issues. And he is not ^^ ^^' precluded from applying to supersede the commission on estopped this ground, though he has even obtained his certificate from ap- under it — if, upon the trial of an action by the assignees ["up^gr^ede. against a creditor, their title is thus successfully resisted, and the commission becomes inoperative. (9) Neither will he be precluded from such an application, by having stated in a petition to enlarge the time for his surrender, that he has been duly declared a bankrupt. (10) But when an appli- (1) Ex parte PzU[n\\. Cohen Ex parte Morton, Buck, -12. v. Ciinninghmn, S T. It. 12,7. VOL. 1. * 3 F 4 808 OF SUPERSEDING A COMMISSION. [Ch. 20. Applica- tions by bankrupt. Commis- sion frau- dulently or vexati- ously is- sued. for goods sold and delivered, when (at the time of making it) he had previously entered up judgment in an action brought for the goods ; for it is sufficient, if the creditor swears to the truth and reality of the debt. (1) And when- ever the petitioning creditor's debt is found insufficient to support the commission, the Lord Chancellor is now em- powered by the \^tJi section of the new statute, upon the application of any other creditor who has proved a debt sufficient to support a commission, (provided the same has been incurred not anterior to the petitioning creditor's debt), to order the commission to be proceeded in, notwithstand- ing the insufficiency of the petitioning creditor's debt. When a commission is fraudulently or 'vexatioudy is- sued (2), it will in every such case be superseded ; and the Court will in addition punish the parties concerned, by com- mitting them to prison, and ordering them to pay the costs. (3) And where there is nothing done under a commission, and the petitioning creditor is not to be found, — this is held to be such a case of fraud, as will render the commission (4) super- sedable. So also, though the commission be legally valid, yet if it has been taken out against good faith, or with a view to enforce a compliance with an arrangement then pending between the parties, — the Lord Chancellor will supersede it, upon the general principle which all courts adopt to con- trol the abuse of their own process. (5) In a recent case it was held by the late Vice- Chancellor, that if the fraudulent purpose could be defeated without superseding the commis- sion, and there was no objection to it on any other ground, the Court would not then interfere by granting (6) a super- sedeas ; but Lord Eldon, upon appeal, in a luminous judg- ment, reversed this order, saying, that when a commission is so taken out, the Court will determine at once that it shall not stand. (7) (1) In re Bryant, 1 Rose. 288. 1 V.&B.211. (2) Ex parte Wilson, 1 Atk. 218. Ex parte Conway, 1 3 Ves. 62, Ex parte Hayivood, ibid. 67 . Ex parte Arroivsvdth, 14 Ves. 209. (.">) Ex parte Thorpe, 1 Ves. ,794. (4) Ex parte Hartop, 9 Ves. 109. 12 Ves. 349. (5) Ex parte Harcourt, 2 Rose, 203. (6) Ex parte Bourne, 1 Ci.&J. oil. ^7) 2G&J. 1.57. Sect. 1.] OF SUPERSEDING A COMMISSION. 809 If a commission is taken out for an express purpose, Grounds foreign from its proper object — such as to determine a li^caiim.' lease (1) — or to work a dissolution of partnership (2) — 7- or to put an end to an action at law commenced by the gio"\™u'ej bankrupt (3) — it will be superseded at the costs of those for a dif- who take it out. And the same, where the object of ^^^^^^^ issuing it is even meritorious — as when it is taken out its proper for the purpose of facilitating a composition with the ere- <'''J^^'^- ditors ; for, though in many instances the result might be beneficial, yet as such a practice (Lord Eldon said) might lead to much mischief, the Court would always discounte- nance it. (4) It is no ground, however, for superseding a commission, that it was sued out with intent to defeat a previous execution, if no collusion appear on the part of the bankrupt. (5) And though the petitioning creditor may have really other objects in view than the mere distribution of the estate — as thinking it a prudent thing to get rid of a bad partner, — the Court has refused on that account alone to supersede the commission, where it plainly appeared that he was not influenced by any fraudulent motives. (6) A country commission will also be superseded, which does Country not include the names of two barristers, according to the gj^,-, ^^^ terms of Lord Loughborough's order (7) — or when the having order is evaded, by carrying the commission to be executed at "^^^ ^^^_ a distant town, when it might with as much propriety be ex- risters in- ecuted at another town, near which two barristers reside. (8) ^^'^^^^' But when a barrister does not reside so near, as to be able to attend without his travelling expences being paid, that is an excuse for dispensing with the order. (9) And in one instance a country commission was refused to be superseded, where (1) Ex parte Gallimore, 2 Rose, &P.569. Ex parte Boiues, llVes. 424. 541. Ex parte ^/roit/sHii^A, 14 Ves. (2) Ex parte Browne, 1 Rose, 209. Ex parte Gardner, 1 Rose, 151. 377. iVes.&B. 45. (3) In re Bourne, cor. Lord (6) Exparte fF?7ica?j, Buck,459. Chancellor, Sittings after Trinity 5 Mad. 1 . Term, 1826. (7) 12th August 1800. (4) Ex parte Bourne, 16 Ves. (8) Ex parte ^flri/w, I Rose, 58. 150. (9) Ibid. (5) Menham v. Edmonton, I Bos. 810 OF SUPERSEDING A COMMISSION. [Ch. 20. Applica- tions by bankrupt. Any com- missioner being a creditor. Want of prosecu- tion. Two com- missions pending. the ground of the application was, that it was issued to a place where there were only two creditors, and which was distant 200 miles from the great body of the creditors ; — though the Court, in this case, thought it was but just to enlarge the time for the choice of assignees. (1) A country commission will likewise be superseded at the costs of the petitioning creditor, when the name of any commissioner is inserted, who is a cr-editor of the bankrupt, — and this even on an (?.rj9ar/s. in the pound under the second, it would seem now, that the Lord Chancellor would super- sede the third commission, on the ground that (by the \21th section of the new act) all his future property is declared to vest in the assignees under the second commis- sion. (3) A separate Another cause for superseding a commission is, as we commis- have before seen, when separate and joint commissions sion pend- are issued against the different members of a partner- "^* ship; — in which case the Lord Chancellor will, for the convenience of administering the joi7it effect s^ in general, supersede the separate commission, and establish the joint one. (4) Offer to The Lord Chancellor has refused to stay the progress dito^rl^'^' °^^ commission, upon a mere offer to pay into the name of the Accountant-General a fund alleged to be sufficient for the payment of the creditors. (5) And where the bankrupt proposed, that a freehold estate (of which he was pos- sessed, and which he alleged was more than adequate to the payment of his debts) should be sold, and the proceeds (1) Ex pa:rte Lees, 16 Ves. 474. Ex parte Hodgkinson, 2 Rose, 175. (2) Ex parte Cridland, 2 Rose, Ex parte j5?/£>A-/e, iG. &J.32. 164. 5 V. & B. 94. (4) And sec ante, 129. (3) Ex parte J?rt/rer, 1 Rose, 452. (5) Ex parte Kemp, 2 Rose, 5. note {n). Sect. 1.] OF SUPERSEDING A COJMMISSION. 813 applied to that purpose, — Lord Eldon thouj^lit he could Grounds not interfere, without being perfectly satisfied that the pro- I'lication^' posal would be fully and speedily effectuated. (1) But if all the creditors (who have proved debts under the Consent of commission) agree to have it superseded, the bankrupt may, c''^''"^"''^' in this case, petition for a supersedeas (2) ; the consent, however, of the creditors must be certified by the commis- sioners ; and this proceeding will not be dispensed with, thouffh all the creditors have even received 20s. in the pound — and though some of them reside abroad. (3) When, however, two creditors (who had been, as well as all the others, paid their debts in full) could not be found, but their securities had been delivered up with receipts upon them, and their signatures satisfactorily proved, — the Lord Chancellor thousjlit this was fji'ound sufficient for superseding the commission. (4) Any secret preference of a creditor, by the bankrupt giving him money or security to induce him to give his consent, will be considered frau- dulent as against the other creditors ; therefore, when the bankrupt confessed a judgment to a creditor, in consider- ation of his not opposing the bankrupt's petition for a supersedeas, — the Court of Common Pleas set it aside, even on the application of the bankrupt. (5) By a general order of Lord Eldon (6), no commission can now be superseded on the ground of the consent of all the creditors, until after the second meeting (7) ; and the commissioners are directed at that meeting to adjourn the choice of assignees, if they are satisfied that such a petition will be presented. Under this head of consent of creditors may be classed the Composi- provision in the new statute, as to what is termed the compo- tract '^'^"* sition contract, which is taken from the Scotch sequestration act, — and which, having been frequently acted upon with (1) Ex parte 5;3/aHf, 2 Rose, 5. (6) 21st August 1818, Buck, (2) Ex parte Jones, 8 Ves. 328. 281. (.3) Ex parte JacA-i-o«, 8 Ves. 533. (7) The practice before was to Ex parte Milner, 1 9 Ves. 204. ; supersede it at any time after the and see 1 Atk. 155. 244. first meeting. Ex parte Duck- (4) Ex parte King, 2 Ves. 40. worfk, 16 Ves. 416. Ex parte Laiv, (5) Thomas v. Rhodes, 5 Taunt. 4 Mad. 273. 478. 814 OF SUPERSEDING A COMMISSION. [Ch. 20. Applica- advantage in that country, it has been thought advisable to bmikrupt. engraft on the English bankrupt law. By section 133. it is provided, that if at any meeting of creditors after the bank- rupt shall have passed his last examination (whereof and of the purport whereof twenty-one days notice shall have been given in the Gazette) the bankrupt or his friends shall make an offer of composition, or security for such composition, which nine-tenths in number and value of the creditors assembled at such meeting shall agree to accept, another meeting for the purpose of deciding upon such offer shall thereupon be appointed, whereof a similar notice shall be given ; and if at such second meeting nine-tenths in number and value of the creditors then present shall also agree to accept such offer, the Lord Chancellor shall and may, upon such acceptance being testified by them in writing, super- sede the commission. 'By section IS-t., any creditor, whose debt is below 20/., is not to be reckoned in number, but the debt is only to be computed in value. Any creditor (to the amount of 50/.) residing out of England must be per- sonally served with a copy of the notice of the meeting so long before, as that he may have time to come and vote at it ; and he is entitled to vote by letter of attorney, executed and attested in the manner required for creditors voting in the choice of assignees. If any creditor agrees to accept any gratuity, or higher composition, for assenting to such offer on the part of the bankrupt, he is liable to forfeit the debt due to him, together with such gratuity or composition. And the bankrupt must (if required) make oath before the commissioners, that there has been no such transaction between him (or any other person with his privity) and any of the creditors — and that he has not used any undue means or influence with any of them, to obtain their assent to the offer of composition. General As no provision is made in the act with respect to the order as to manner of holding these two meetings, or in which evidence the m^t- ^^ ^° ^^ given of the performance of the several particulars ings, &c. contained in the above sections, the following directions have been established, by a general order of Lord Eldon Sect. 1.] OF SUPEUSEDING A COMMISSION. 815 very recently made. (1) At the first meetin!. (4) ] Mont. Dig,' 154. (5) Ibid. (6) Ex parte Anderson, Buck, 58. Ex parte Peyton, ibid. 200. (7) Ex parte Watts, 1 Rose, 456. (8) Ex parte Scho/cy, Buck, 476. (9) Ex parte Glandjicid, 1 G.& J. 387. \,\0) Ex parte ilfzV/s, Buck, 230.; and see Ex parte L'cddam, 1 Rose, 310. Ex parte lieiv, 1 Mad. 509. Ex parte Byron, 2 Rose, 368. Ch. 2I.J PRACnCE ON PETITION. 8^7 a party, the whole will be dismissed with costs. (1) But when a petition contained only two points, Lord Eidon did not think that he was prevented from making an order as to one, because he could not make an order as to the other. (2) Where the prayer of a petition was to expunge a charge of collusion made in another petition, and to be heard before that petition came on, — the last petition was dismissed with costs ; for the Lord Chancellor said, that he could not possibly decide whether there was any foundation for the charge or not (3), without previously hearing the matter complained of in the first petition. A petition, also, to expunge the proofs that had been made by various creditors upon certain bills of exchange, was dismissed, on the ground of being multifarious. But the Vice-Chancellor refused to give costs to the creditors who opposed this petition : as that, he said, would be to make those creditors, whose debts were beyond dispute, contribute to the defence of doubtful debts. (4) A creditor cannot present a petition to prove, until the Petition to commissioners have rejected his proof; and the petition P^'o^^- must, also, state the grounds of their rejection of it. (5) Therefore, where a creditor, after attempting to prove 5,000/. before the commissioners, petitioned to prove 10,000/., — the petition was dismissed. (6) By a general order of Lord Eldon's (7), all petitions in General Bankruptcy presented for hearing must, before they are "'""^''^sto petition. signature, presented, be respectively signed by the petitioners, except and attest in case of partnership, or absence from the kingdom ; in ^^'°" the former of which cases, the signature of one pf the parties will be deemed sufficient; and in the latter case, the petition must be signed by the person presenting it on behalf of the person abroad. The signature, also, of each (1) Ex parte Vernon, 15 Ves. Ex parte Wright, sVes. jun. 41. 270. Ex parte De Tastet, 1 V. & B. 280. (2) Ex parte Ross, 1 Rose, .37. Ex parte Curtis, 1 Rose, 274. Ex (.3) Ex parte Leigh, Buck, 132. parte Schmaling, Buck. 93. (4) Ex parte Coles, Buck, 256. (6) Ex parte Fry, 5 Mad. 1 j2. (5) Ex parte Wilso7i, 1 Cox, 308. (?) 12th August, 1.S09. 3 H 3 838 PRACTICE ON PETITION. [Ch.2i. When party per- mitted to sign by his agent. Assignees must all sign. Aliter partners. Attest- ation. person signing as a petitioner, must be attested by the soli- citor actually presenting the petition — or by some person who must state himself in liis attestation to be attorney, solicitor, or agent of the party signing, in the matter of the petition. This order will not be dispensed with, except under very special circumstances verified by affidavit. (1) But in one case, where the petitioners lived at York, and their signa- tures could not be obtained before the petition day, the Lord Chancellor permitted the agents in town to sign it for them, the agents undertaking to be answerable for costs. (2) When a petition is presented by assignees, it must be signed by all who present it, and not by one only as in the case of partners; and a partner signing in the partner- ship name, instead of individually for himself and partners, has been held insufficient. (3) With respect to the attestation of the signatures of pe- titions, a subsequent general order (4<) has directed, that the attestation shall be strictly according to the directions of the order above mentioned. It has been held, however, that if it appear in any part of the petition, or by the in- dorsement on it, that the solicitor attesting it was the solicitor actually presenting it, such attestation is suffi- cient ; and that the solicitor need not state himself in his attestation to be solicitor in the matter of the petition. (5) But, if the person attesting the signatui'e of the petitioner is 7iot the solicitor actually presenting the petition, he must then, pursuant to the directions of the above order, state himself in his attestation to be the attorney, solicitor, or agent of the party signing in the matter of the petition. (6) And where there were two petitioners, and the attestation (1) Anon. 1 Rose, 99. (5) Ex parte Champncys, 1 G. & (2) In re Boldero, 1 Rose, 231. J. 354. (note). Ex parte .S^one, Buck, 255. (6) Ex parte Wilkinson, 1 G. & (3) Ex parte Morgan, Buck, J. o5o. Ex parte Cox. Ex parte 109. Thomason. Ex parte 'iV/owrw, ibid. (4) 6th February, 1816. 355. note («). Ch.21.] PRACTICE ON PETITION. 839 was, " Witness to the signature, J. Mortlock, Solicitor," who ^''/c.j^ was not the solicitor presenting the petition, — the Vice- '^J^^^2_ Chancellor held the attestation in every way insufficient ; as it did not even state him to be solicitor for the pe- titioners, nor specify whether he was witness to the signa- ture of both, or of which of the two petitioners. ( 1 ) An attestation by the agent to the petitioner's solicitor is Attest- not in conformity with the terms of the order, which re- ^",?" ^^, '' , . . solicitors quu'es the attestation to be by the petitioner''^ solicitor or agent in- agent(2) — though, in one case, where the petition was at- sufficient, tested b}' the agent of the solicitor, and, afterwards, au- thenticated by the solicitor, it seems that such attestation was held sufficient. (3) And where the solicitor had not Qusere, actually witnessed the signature of the petitioner, which whether purported to be " cmthcnticatc(r\ not " attested", by the t'wn suffi- solicitor — who put his name to it from a knowledge of the cient. petitioner's hand-writing — the Lord Chancellor thought, in this case, that the spirit of the order had been complied with ; as its object was to have the pledge and responsibility of a solicitor of the court to the propriety of the appli- cation. (4) But in a similar case before the Vice-Chan- cellor, he thought that authentication was not equivalent to attestation ,- and that the intention of Lord Eldon, in the last case, was to relieve against the mistake in that par- ticular instance, and not to establish a general rule by his decision. (5) Where the solicitor attesting the petition was at the Soh'citor time in prison, it was held not an objection to the validity '" P'j'son f ' _ '' , ''no objec- of the petition within the 12 Geo. 2. c. 13. s. 2., which makes tion to at- void any process (sued out by a solicitor in prison) in any ^'^station. court of law or equity ; for so highly penal a clause, it was considered, should be construed strictly; and a petition in bankruptcy is not, strictly speaking, a proceeding either in (1) 1 G.& J. 555. note (a). (4) Ex parte Titlej/, 2 Rose, 85. (2) Ex parte Hirst, I G. & J. 76. (5) Ex parte Biiri/, Buck, 393, (3) Ex [YdneBe/tott, 2 Mild. 250. 3 H 4 840 PRACTICE ON PETITION. [Ch. 21. Attest- law or equity, (1) A mere omission as to the description of "^'""' the solicitor in the attestation of the petition, may (as well When at- as a mistake in the title) be amended upon an application mf ^be" ^° ^^^^ indulgence of the Court for that purpose, the petitioner amended, undertaking to pay the costs of the day; but if the mistake is incapable of being rectified, the petition will be dis- Whenat- missed with costs. (2) When a solicitor presents a petition testation j^^ j^jg ^^^^ behalf, attestation is in that case dispensed dispensed with. with. (3) Applica- When an application is made that a petition may stand tion for over, the strict mode of proceeding is by petition presented petition to ^ ' , - X 1 T^i 1 -11 standover. for that purpose, — though Lord JLldon said, he never knew the application by motion objected to. (-i) But no application to hear a petition out of its turn can be enter- tained, unless notice of the intention to make such ap- plication has been given to the other side. (5) And a petition will not be permitted to stand over, for the purpose of replying to affidavits, unless the application be made at least two days before the petition appears in the paper. (6) Service of Petitions in matters of bankruptcy should be, in ge- petition. neral, personally served upon the other party interested in the matter of the petition, by delivering a copy of it to him at least two days before the day of petitions. (7) But when the party is abroad, or wilfully keeps out of the way, a special order as to the service may be obtained by an application to the Court for that purpose, v»'hich, it seems, may either be by petition or on motion. (8) Thus, a peti- tion to expunge a debt may, when the creditor is abroad, be served (with leave of the Court) upon the attorney, who is appointed to receive the dividends upon the proof. (9) And, under certain circumstances, where a party to be affected by a petition is out of the kingdom, the Court will (1) Ex parte Thompson, 1 G. & (5) In re Bell, 1 G. & J. 182. J. 308, (6) Ex parte Wiltshire, Buck, (2) Ex parte RawUnson, 1 G.& 252. J. 19. Ex parte Biiry,su\)n\. (7) 1 Mad. 74.595. 15 Ves. 542. (3) Ex parte Kiiigdon, 1 Mad. (8) Buck. 38. ibid. 200. 446. (9) Ex parte Peyton, Buck, 200. (4) Ex parte Git ton. Buck, 549. Ch. 21.] PRACTICE ON PETITION. ^MS order, that service at his last place of abode in England shall be good service. ( 1 ) If a party (after presenting a petition) becomes a bank- Where a rupt before the petition is heard, his assignee must present P^*^*'^'°"^'' a supplemental petition, in order to have the benefit of that bankrupt, already presented ; — otherwise it v^^ill be dismissed. (2) A party may be permitted to petition in forma pauperis^ Petition in upon the usual certificate of counsel, that he had iust formapau- . pcris. cause to be relieved, and on making affidavit that he is not worth 5/. (3) By a general order (4), no petition struck out of the As to re- Vice Chancellor's paper (on account of non-attendance) ^'^°"?g can be restored to that paper, without an order being struck out made by the Vice Chancellor: nor can it be placed in the ^'^ ^^ •^ ^ paper. Lord Chancellor's paper, except by order made upon petition. Before the hearing of any petition in bankruptcy, an Affidavits; affidavit of the service of it, and of the truth of its contents, must be filed with the secretary of bankrupts (5) before it can be read ; and an office copy of each affidavit must be produced when the petition comes on to be heard; for that is the only evidence which the Court will admit of the affidavit having been filed. (6) ^yjiling an affidavit (as has been before observed) is meant, the swearing and carrying it into the office. (7) But it is a general rule in Bankruptcy, that an affidavit in support of a petition, which is s-joo7-n bc" fore the petition is answered, cannot be read ; as there is no proceeding in court to which it can attach. (8) The only ex- ception to this practice is, as we have seen (9), in petitions to stay certificates. But filing an affidavit, in answer to the affidavit in support of the petition, has been held to be a (1) Ex parte Bonbomus, 3 Mad. (4} June 11th 1817. 23. ; and see Ex parte Anderson, (5) Ex parte North, 1 Mad. 395. Buck, 28. (6) Ex parte North, Buck, 396. (2) Ex parte Birdwood, Buck, (7) ExparteiV(?it>/o?i, 2 Mad. 19. 99. (8) Ex parte Northwood, 2R0&C, (3) Ex parte Northnm, 2 V. & B. 246, 124. 2Rose, 140. (9) Ante, 591. 842 PRACTICE ON PETITION. [Ch.21. Affidavits. before whom should be sworn ; should be pertinent to matter of petition. Amend- ment. Affidavits in reply. waiver of the objection that the first was prematurely sworn (1) — that is, provided the respondent had notice of the irregularity (2) ; though a party is not precluded, by filing affidavits as to the merits, from objecting to the jurisdiction. (3) Affidavits in support of petitions may be likewise objected to, if filed subsequently to the petition day (4) ; though in one case they were specially permitted to be filed after the petition day, the petition standing over to give time for answering them, and the petitioner paying the costs of the day. (5) But an affidavit in support of a motion may be filed at any time. (6) No affidavit should be sworn before a master extra- ordinary who is solicitor to the commission (7)) or who is the clerk to such solicitor (8) ; for, if it be, it cannot be read. But if the agent in town is the solicitor to the com- mission, it would be then no objection to the affidavit, that it was sworn before the party's own solicitor in the country. (9) An affidavit, as well as the petition (10), should be pertinent to the matter of the petition ; for if it contains irrelevant or scandalous allegations, it will be ordered to be taken off the file — with costs against the party making it, as between attorney and client. (11) A defect in any affidavit in support of a petition may be, in general, amended, by applying to the Court for liberty to reswear it, and to permit the petition in the mean time to stand over. (12) Affidavits in rc})]!/ cannot be filed, except as to new matter contained in those filed, in answer to the petition ; (1) Ex parte Gilpin, iG. &J. 18.5. (2) Ex parte Bury, Buck, 393. Ex parte Peel, ibid. 394. Ex parte Smith, ibid. 395. (3) Ex parte Allison, 1 G. & J. 210. (4) 2Rose, 161. Buck, 549. (5) Ex |)arte Sparrow, '2 Mad. 184. (6) Ex parte Giiton, Buck, 549. (7 j Ex parte Brockhurst, 1 Rose, 145. (8) Ex parte Green, 1 G. & J. 16. (9) Read v. Cooper, 5 Taunt. 89. (10) Ante, 837. (11) Ex parte Simpson, 15Ves. 47G. Anon. 3 V. & B. 93. (12) 1 Rose, 145. iG.&J. 16. Ch. 21.] PRACTICE ON PETITION. 843 and, in that case, the Court will permit a petition to stand Affidavits. over, to enable the party to reply to such new matter (I) — provided the application is made two days before the petition appears in the paper. (2) And, where the re- spondents were too late in filing their affidavits in answer to the petition, the Vice-Chancellor, upon the application of the petitioner, allowed the petition to stand over, to give the petitioner an opportunity of considering the affi- davits, and of replying to them if necessary; and as the delay was occasioned by the conduct of the respondents, he ordered them to pay the costs of the day. (3) When a matter in bankruptcy is referred to a Master, When re- and he finds it necessary to examine witnesses, a certificate ft'^^'jyf ,° should be procured from him of the necessity of such ex- ter, afRda- amination, upon which the Court will make the usual ^its maybe • 1 • 1 • t 1 received, order. (4) But any affidavits, which might have been read at the hearing of the petition in court, may be received in evidence by the Master. (5) Upon a petition for leave to except to the Master's report of costs, the petitioner must pay the taxed costs into court. (6) At the hearing of every petition, the proceedings under the commission should be in court ; as it is often necessary that they should be inspected l:)y the Lord Chancellor, before he makes an order upon the matter of the petition. But the examination of the bankrupt before the com- missioners cannot be read upon the hearing, unless notice has been given of an intention to make use of it. (7) The practice of the Court in directing an issue, or an action at laic, upon the hearing of a general petition in bankruptcy, is the same as upon a petition for a super- sedeas, — for which the reader is referred to the preceding chapter. (8) (1 ) Ex parte Shayle, Buck, 244, (5) Ex parte JacJcson. Ex parte (2) Ex parte Wiltshire, \h\A. 232. Heywood, 1 Rose, 45. (5) Ex parte Doncastcr, Buck, (6) Ex parte Leigh, 4 Mad. 594. 40.3. Ex parte Trewiz-aw, ibid. 464. (7j Ex parte 67/-«c"st not apply to correct an order (once signed and passed in costs only, respect of costs) by a separate petition as to the costs alone ; but when the question is, not as to the personal payment of costs, but whether they shall be payable out of a par- ticular fund, a petition for rehearing may then be presented for determining that question. (5) Where several persons are directed to pay costs, the Court will Court will not in bankruptcy determine the proportions, in contribu- which they ought to contribute amongst themselves. P'or tion. the question of contribution is altogether collateral to the bankruptcy, and is the proper subject of an action at law, or a bill in equity for an apportionment. (6) In general (as has been already stated (7 j ) costs cannot be Bankrupt given against an uncertificated bankrupt (8), notwithstand- . *? ing he presents a petition which is dismissed even on the guilty of ground of its being multifarious (9), or unnecessary. (10) "■^"''j&c. But in a case of fraud, misconduct, or vexation, the Court will subject him to costs — as, where he presented a third petition for the same purpose as two former, which (1) Ex parte Simpson, 15 Ves. (6) Ex parte Wilmhurst, 1 G. & 476. Anon. 3 V. & B. 93. J. 4. 244. (2) Ex parte Watts, 1 Rose, 4.36. (7) Ante, 850. (3) Ex parte I/eig//., 4 Mad. 394. (8) 1 C. B. L. 2. Ex parte (4) Ex parte Slack, 1 C. B. L. 2. Wright, 2 Ves. 11, Ex parte Bil- (5) Ex parte Baines, iG. &J. liald, Buck. 220. 259. (9) Ex parte Coles, Back. 256. (10) Ex parte Parker, ibid. 313. 3 I 4 856 OF COSTS. [Ch. 22. 071 peti' tions in general. Petition for leave to surren- der. Petition to remove assignee. By joint creditors. Equitable mortgagee. had been dismissed, the Court made an order that he should pay the costs, and if he were unable to pay them, that he must be committed; — observing, that it was like the case of a pauper dispaupered for misconduct — and that if a bankrupt behaved ill, so he ought, in like manner, to lose his privilege. (1) So, likewise, in a case of fraud, costs will be given on a bill filed against an uncertificated bank- rupt. (2) And though the Court has refused, upon dis- missing a bankrupt's petition, to give the respondent costs out of the estate, the solicitor of the bankrupt was in one case ordered to pay 4-Os. costs to the respondent for pre- senting a petition, which was deemed by the Court to be wholly unnecessary. (3) When a bankrupt petitions for leave to surrender after the time for the surrender is ex- pired, he in that case pays the costs of the application. (4) Upon a petition to remove an assignee for the conveni- ence of the estate, the assignee does not in such case pay the costs. (5) Nor is a removed assignee liable to the pe- titioning creditor for the payment of his bill of costs as taxed by the commissioners, unless there is collusion proved between the removed and the new assignee. (6) Upon a petition by joint creditors to prove against the separate estate, no costs are given, where there are no joint effects nor solvent partner. (7) When an equitable mortgagee petitions for a sale of the mortgaged premises, he is entitled to costs, if there is a written instrument specifying the agreement upon which his claim arises (8) ; notwithstanding parol evidence may be necessary to explain it. (9) But where there is a mere (1) Ex parte Shatv, 2Ves. jun. 40. ; and see Ex parte Green, 1 G. &J. 188. (2) Lock V. Bromley, 5 Ves.jim. 40. (s) Buck. 51.5.; and see post, " Solicitor." (4) Ex parte Carter, 4 Mad.. 5 94. (5) Anon. 5 Mad. 76. (6) Ex parte Gibson, 1 G. & J. 303. (7) Ex parte Bradshaw, 1 G. & J. 99. (8) Ex parte Brightwen, 1 G. & J. 1 4S. Ex jjartc Sikes, ibid. 349.; but see Ex parte Home, 1 Mad. 622. 2 Mad. 281. (9) Ex parte Vauxhall Bridge Company, iG. &J. 101.; and see Ex parte Trew, 3 Mad. 372. Sect. 4.] OF COSTS. 857 deposit of the title deeds, without any written instrument to Onpeti- explain the purpose of the deposit, he in this case pays the ^l^^j-al costs of his petition. (1) In one case, where costs were awarded upon a petition in Whether bankruptcy, Lord Redesdale would not permit them to be J-^j. ^^^^^ made the subject of an action at law. (2) Upon a petition against commissioners^ they will not be Petition ordered to pay costs, unless in respect of conduct out of ^^^^"^^js- the course of their duty as commissioners (3) ; and when sioners. they are made parties to a petition without sufficient grounds, they will then be entitled to costs. (4) entitled to costs out Section IV. Of Costs in Actions and Suits by and against Assignees, and other Parties concerned in the Commission. Where an assignee is made a party to an action, or Assignee suit, for the purpose of sustaining a litigated commission, he is entitled to his costs out of the bankrupt's estate, as of bank between attorney and client. For, as a bankrupt when- ^"fV ever he thinks fit can bi*ing an action against his assignee, and it is the assignee's duty upon every occasion of this kind to sustain the interest of all the creditors as well as his own, it is highly reasonable, that he should be in all such cases completely indemnified ; otherwise few persons would be prevailed on to accept the office of assignee. (5) When notice has been given in an action by or against When no- assignees to dispute the petitioning creditor's debt, the f'^j-^'^^J* trading, or the act of bankruptcy, — if the assignees prove the bank- the matter so disputed, or the other party admit the same ^"P^^y- on the trial, the judge is empowered by the new statute (6), if (1) Ex parte Warry, 19 Ves. (3) Exparte lS'c•a?•//^, 14Ves. 104. 472. Ex parte Garhutt, 2 Rose, 15 Ves. 293. 78. ; and see ante, 202. (4) Ex parte Steele, 16 Ves. 161. (2) In re Dillon, 1 Sch. & Lef. (5) Ex parte Bryant, 2 Rose, 1. HO. Dub. tam Lord EUenborough. (6) Section 90. Hartop V. Jiickes, 2 M. & S. 459. 858 OF COSTS. [Ch. 22. Jn actions. Assignees must pay costs of an action, though no assets. Bound by court of conscience act. When pro- ceedings refused to be staid till pay- ment of costs of former action. he thinks fit, to grant a certificate of such proof or ad- mission, which will entitle the assignees to the costs occa- sioned by the notice, to be taxed by the proper officer, and added or deducted according as the verdict may be. But this provision of the statute will not entitle the as- signees to costs, where they have been nonsuited. (1) A similar provision is also made as to suits in equity (2), when, if the assignees prove the matter so disputed, the Court (if ;t see fit) may order the party giving the notice to pay the taxed costs occasioned by it ; and the service of the notice may be proved upon the hearing of the cause. Assignees, though suing in a representative capacity, are not within the exemption from costs given by the 2.3 Hen. 8. c. 15. to executors and administrators; nor will the Court, when the assignees are nonsuited upon the trial, suspend the payment of costs until they receive sufficient assets to pay them, notwithstanding they make an affidavit that they have no assets in hand. (3) The 39. and 40. Geo. 3. c. 104., which deprives a plain- tiff of costs where the sum recovered is less than 5/., has been held to extend to assignees ; but where the defendant in such case had disputed the petitioning creditoi''s debt, the Court ordered the suggestion to be so entered, that the plaintiff might not be deprived of the costs thereby occa- sioned, but only of those costs which would have been in- curred had no notice been given. (4) Where an action was commenced by assignees under a former commission, which was superseded, and the assignees under a subsequent commission brought a fresh action — the Court, of King's Bench refused to stay pro- ceedings until the costs of the former action were paid, though the cause of action was the same. (5) (1) Atkins V. Seivard, iB.&B. (4) Ward v Abrahams, 1 B. & 275. A. 5G7 (2) Section 91. (5) Dawson V . Sampson, 2 ChitU (5) Andretvs v. Sealii/, 8 Pri„212< Rep. 146. Sect. 4.] OF COSTS. 859 When an action is brought against an assignee (or In actions. indeed against any other party) by the direction of the wq^^^^^ Lord Chancellor, it is a constant rule in the Court of assignee Chancery, to make the defendant pay all costs, if he de- ^^^'^ *u ^^ feats the action by a formal objection, (1) a formal If assignees improperly resist a plaintiff's demand, and objection. are brought before the Court by supplemental bill, they g^^j j^ may be made liable to the costs of the whole suit; but supple- where no application is made to them by the plaintiff be- j^-j^" '^ fore the filing of the bill, such costs will not in that case be given against them. (2) By section 44. of the new statute it is provided, that if Wliere upon the trial of an action brought against any person for ^'o^ble any thing done in pursuance of that statute, there shall be a given, verdict for the defendant — or, if the plaintiff shall be non- suited, or discontinue his action or suit after appearance thereto — or if, upon demurrer, judgment shall be given against the plaintiff, — the defendant shall in either of these cases recover double costs. This right, however, to double costs will not entitle the party to receive twice the actual amount of single costs, but only the common costs, and one half oi the common costs. (3) In like manner treble costs, where given by any statute, are composed of, first, the common costs ; secondly, halfoi those costs ; and lastly, 7/tt^'of the latter half. When the commissioners have incurred any costs, in Commis- defending an action brought against them by any person sjoners en- for an act done by them, in the strict discharge of their comnens- duty, they have a right to be compensated by the assignees, ation. notwithstanding the assignees have in fact not received suf- ficient to pay the expenses of the commission. (4) A bankrupt is personally liable for the costs of an action Bankrupt commenced by him, and proceeded in by the assignees in P6f^o"^lly his name, notwithstanding he has obtained his certificate ; costs. (.1) Per Lord Kenyon, Wrayv. (.") HuUock, 484. i^arwis. Peak e, 69. (4) Ex parte /^wii/iiwi/e, IbVes. (2) Whilcomhy.MmcUntSMiA. 234. 9]. 860 OF COSTS. [Ch. 22, In actions. When pro- ceedings stayed in action by bankrupt, till costs of a former action paid. Bankrupt not en- titled to costs as against executors. though when he acts fairly he will be protected from such costs. (1) Whenever a bankrupt brings a second action for the same cause as a former one, in which the merits were fully tried, and the second action appears to be evidently vex- atious, the proceedings therein will be stayed until the costs of the former action are paid. Thus where a bank- rupt petitioned that the commission might be superseded, or that an issue might be ordered to try the validity of the petitioning creditor's debt, and the petition was dismissed — upon which he brought an action of trover against his as- signees, and a verdict was found against him, which for a long period was acquiesced in — and then, after the division of the effects by the assignees, another action was brought for money had and received ; — it was held, under these circumstances, that the proceedings in the second action should be stayed until the costs of the former one were paid. (2) And where an uncertificated bankrupt (after being nonsuited in an action of trespass for false imprisonment in the Court of King's Bench, on the ground of not being prepared with evidence to prove the validity of a former commission) brought a fresh action in the Common Pleas, — the last mentioned Court ordered the proceedings to be stayed until he paid the costs of the former action, con- sidering that he ought to have been prepared with such evidence upon the first trial. (3) Where an action was brought against a bankrupt by executors after he had obtained his certificate, he was held not entitled to costs though he recovered a verdict ; — for the bankrupt statutes, the Court said, were to be construed in the same manner as the 23. H.8. c. 15., and the 4. Jac. 1. c. 3., which first gave a defendant costs upon obtaining a verdict ; and those statutes are held not to apply to execu- (1) Ex parte Seaman, 1 J. & G. 260. (2) Gravenor v. C'a^jc, Say. Costs, 245, 3d edit. "Wils. 150, 2 Bl. 741. (5) Crawley v. Impeyy 8 Taunt, 407. 2 Moore, 460. Sect. 5.] OF COSTS. 861 tors. ( 1 ) And where a bankrupt who was sued as executor, In actions. pleaded a false plea and a verdict was found against him — Where and the plaintiff obtained judgment for his costs de bonis bankrupt as proprits, — it was held, that though the bankrupt afterwards ^^^ obtained his certificate, he was still liable to be taken in pleads a execution for the costs. (2) *^^^^ P^^^* When a man brings an action ex contractu against a Costs fol- bankrupt, whether before or after a commission has issued, low the he takes the chance of losing his costs, in case the debt acjJQjj ^^ should be barred by the certificate ; for the costs cannot in contractu. such a case be distinguished from the debt ; and if the party be discharged from the one, he cannot remain liable to the other. Therefore, if a debt arise before, but a verdict is obtained and the costs taxed after, the bankruptcy of the defendant, (though previous to the allowance of the cer- tificate) — the costs relate to and are considered as a part of the original debt, and the certificate extends to both. (3) Section V. When Security for Costs will be required. Where an uncertificated bankrupt sues as trustee for Ofabank- his assignees, and for their benefit, and not for the fruits fof benefit of his own personal labour, he has been required to give ofhisas- security for costs (4) ; for, though it cannot be laid down '^^Snees. as a general rule, that an uncertificated bankrupt must in all cases give such security where an action is brought by him, yet it is held to be but fair, if the action is really brought for (1) Martin v. Norfolk, 1 H. B. (126) of the new statute, there is, 528. This case was decided with however, nothing said about costs. reference to the 5 G. 2. c. 30. s. 7. (2) Howard v. Jcrnviet, 3 Burr, which enacted, that the bankrupt, 1368. 1 Bl. 400. when he succeeded in an action (3) Ex parte Poucher, 1 G. & J. brought against him after obtaining 385. Ex parte Parkinson, ibid, his certificate, should " recover his 386. note (a), and see ante, 276. full costs." In the parallel section 596. (4) Webb V. Ward, 7 T. R. 296. 8C2 OF COSTS. [Ch. 22. Upon other pro- ceedings. Where such secu- rity re- fused. Prelimi- nary pro- ceedings where de- fendant entitled to security. the benefit of the assignees, that tliei/ should be responsible for the costs. Accordingly, in one case of this kind, where the defendant obtained a verdict against the bankrupt, the Court of Common Pleas refused to grant the plaintiff a new trial, unless the assignees consented to be bound by the event of the action, and to be responsible for the costs. ( 1 ) But where a joint action was brought by a bankrupt and another person (who was a prisoner in Newgate), the Court of Common Pleas refused in this case to require such se- curity ; though the judgment of the Court here seemed to proceed, upon the consideration of the circumstance of the imprisonment of one of the plaintiffs (2), rather than in respect of the bankruptcy of the other. And, indeed, a rule for security for costs will not in general be granted, merely on account of the poverty or insolvency/ of a plain- tiff (3); for, where an uncertificated bankrupt brings an action for his own benefit — as to recover the produce of his earnings since the bankruptcy — such security will not be required. (4) So, where in a joint action it appeared, that one of the plaintiffs was a foreigner residing abroad, and the other a bankrupt in execution for debt, — the Court re- fused to require them to find security for the costs, one of the plaintiffs being within the jurisdiction of the Court, and within reach of its process, and not coming under any of the rules requiring such security to be given. (5) Where a defendant is entitled to require security for costs, he should in the first instance, and before any motion is made to the Court upon the subject, apply for it to the plaintiff's attorney ; for until the latter has refused to give it — although the Court may grant a rule to shew cause why the plaintiff should not find such security — they will not, at (1) Noble V. Adavis, 7 Taunt. 59, (2) Anon. 2 Taunt. 61. (3) Goodright dem. Jones v. Thrustout, Cas. Pr. C. P. 15. Wil- lock, 443. Field q. t. v. Carron, 2H. B.27. Cowp. 24. 2Diek.Ch. Cas. 7fi5. (4) Cohen V. Bell, B. R. T. 44 G. o. 1 Tidd Pr. 468. (5) M'Connelly. Jolmson, lEast, 451. Sect. 5.] OF COSTS. 863 any rate, make it a part of the rule, that the proceedings Uj)on shall be in the mean time stayed ; for the rule might other- '^ccedinss.' wise be often obtained merely for the purpose of delay. (1) The defendant, also, must put in bail previous to his ap- plication for the rule. But where a foreigner resident abroad sued two defendants, and only one of them put in bail, that one was permitted to require the plaintiff to give security for costs, without putting in bail for the other defendant. (2) The general rule is, that the application for security Applica- should be made, as soon as the defendant can reasonably do *'^°" 9}' ' , '' security it after his knowledge of the fact, on which he founds his ap- should be plication. Therefore, where the defendant might have ap- ^^^^ plied earlier, the motion was holden too late, after issue had been joined and notice of trial given. And a similar motion was also refused, where the defendant had obtained time to plead, and agreed to take short notice of trial, — the Court being of opinion, that he had thereby waived his oppor- tunity of making the application, which must at that period necessarily delay the plaintiff. (3) Where after action brought, and before plea pleaded. Defendant the plaintiff became bankrupt, and the defendant obtained cannot re- an order for security for costs, and subsequently pleaded curity if the plaintiff's bankruptcy in bar, — the Court held, that ^^ v^caA^ though they could not deprive the defendant of the benefit tifF's bank- of that plea, yet as the order for security for costs would not ruptcy. have been made, if the defendant had said that he meant to defeat the action by pleading the plaintiff's bankruptcy, the order was discharged, with costs to be paid by the defend- ant. (4) In Equity, an application for security for costs will be too late after answer, or obtaining an order for time to answer; at least, if the plaintiff's residence abroad, or any other cause (1) Cheap V. Popham, 2 Smith's (3) Michel v. Pareski, 2 H. B. Rep. 661. iTidd. 470. 593. (2) De la Preuve v. Due de Bi- (4) Minchin v. Hart, 1 Chitt. ron, 4T. R. 697. Carr v. Shaw, 215. 6 T. R. 496. 864 OF COSTS. [Ch. 22. Upon for the application appear on the face of the bill, or were "^ccdin7' known to the defendant at the time of filing the bill. (1) The usual security for costs required of a plaintiff in equity amounts to 40/. ; and the Court will not, even under special circumstances, depart from the general rule in this respect. (2) (1) 2 Ves. 24. 557. 1 Dick. Ch. jun. 396. 5Ves.261. loVes.287.; Cas. 147. 2 Brown, 609.; and see and see Hullock, 448. J4 Ves. 518. 5 Bro. 370. 1 Ves. (2) Ogilvie v. Hearnc, 11 Ves. 598.; and see 2 Ves. 557. S65 CHAP. XXIII. OF THE SOLICITOR TO THE COMMISSION. Sect. 1 . Of his General Rights and Duties, 2. Of his Lien for Costs. 3. Of the Taxation of his Bill, and his Remedy for Payment of it. 4. Of Actions and. other Proceedings hy and against him. 5. Of his Liability for Misconduct^ and herein of his General Liability. Section I. Of the General Rights and Duties of the Solicitor. 1 HE solicitor to the commission is nominated by the ma- How no- jority of the assignees, and when so nominated is entitled """''ted. to the custody of the proceedings under the commission. (1) He may also be removed by such majority, and in that case must deliver up the proceedings under the commis- sion to any other solicitor who may be appointed in his room ; for he has no lien upon them (as he has upon other papers) for his costs. (2) The solicitor is a minister of the Court (3), and is bound so far to watch over the interests of the bankrupt's estate, as to protect it even against his own demands — that is, where other parties have preferable claims upon it. Thus, in the case of a separate commission, it his duty to attend to the interest of (1) Ex parte Watson, iC. B. L. (2) Anon. 2 Rose, 207. Ex parte 105. Ex parte Scarth, 15 Ves, 295. Scruby, ibid, note («). Ex parte Tomlinson, 2 Rose, 66. (.3) 6 Ves. 1. 3 K 866 OF THE SOLICITOR. [Ch.23. Rights and du- ties. Disqualifi- cation. Cannot take a bond or gift from his client during pendenci/ of a 3uit. the separate creditors, and not to permit the joint debt of himself and his partners to be proved to the prejudice of those creditors. ( 1 ) It is inconsistent with the duties, also, of the solicitor to the commission, to act as solicitor for the bank- rupt (2); though it has been held to be no cause for super- seding the commission, that he is also assignee. (S) He cannot, however, act as banker to the estate (4) ; nor can he be a commissio7ier under the same commission to which he acts as solicitor. (5) He is disqualified, also, from be- coming a purchaser of any part of the bankrupt's property, even though the purchase is perfectly fair on his part, and he bids openly in the presence of different persons in- terested in the property. (6) So — in order to prevent any abuse of the great power and influence which an attorney must generally possess over his client, and which might (if uncontrolled) enable a dishonourable practitioner to commit the grossest impo- sitions — the Courts will never give effect to any bond or security, which is given or entered into by a client to his attorney during the pendency of the cause or proceeding in which the attorney is retained. In such a case the se- curity will be either set aside entirely — or, at any rate, be restricted in its operation to the amount of such fees, as may be found due to the attorney upon a regular taxation of his bill. The principle of these decisions is the policy of the law founded upon the safety and convenience of man- kind, and is quite independent of all fraud in the particular transaction, according to the ordinary understanding of the term. An attorney, therefore, is not permitted to take a (l) Ex parte Story, Buck. 74. (2)Exparte^os«, lR,ose,263. Ex parte Vavglian, 14Ves. 513.; and see 6 Ves.631. note, where Lord Eldon observed, that he always thought what Lord Thurlow said was verj' wise, that there is no case in which it is useful upon general principles, that the same solicitor should be employed on all sides ; for that, though it may be a saving of expense, yet where property is to be brought to sale, to pay creditors, &c. great mischief is occasioned by it. (3) leVcs. 166.; butsee6Ves.4. (4) 6G. 4. c. 16. s. 102. (5) Ex parte Ward, Sel. Ca. Ch. 46. (6) Owen V. Foidkes, 6 Ves. 630. (note). Ex parte James, 8 Ves. 337. Ex parte Limvood. Ex parte Churchill, cited ibid. 545. Ex parte Bemictt, 10 Ves. 381. Sect, 1.] OF THE SOLICITOR. 8G7 gift from his client while the relation subsists, though the lights transaction may be, not only free from fraud, but the most ^"^ "" moral in its nature. (1) But after a suit is eiitirehj at an end^ a client may then give his attorney a reward for ser- vices over and above his legal fees. (2) In suing out a commission against a bankrupt, the soli- citor must be careful to observe the rules and regulations which have been at different times laid down by the Court for his conduct in this respect (3) ; otherwise, the commis- sion will not only be superseded, but he himself will be made to pay the costs. By a general order of Lord Rules to Loughborough (4), it is provided, (as we have before ^? pbserv- . 6cl in issii- seen (5) ) that after the expiration of fourteen days from the ing acom- date of a town commission, and twenty-eight days in the "fission. case of a country commission, the commission is super- sedable for want of prosecution ; and that the application for a new commission, which shall (in the course of the following day) be first made by any other attorney or soli- citor than the one at whose instance the supersedable com- mission was issued, shall be preferred to an application for the same purpose by the attorney, who sued out such su- persedable commission. But by a subsequent order (6), any solicitor, who acts merely as agejit for the attorney in suing out the first commission, is not prevented from applying for a new commission as age7it for a different attorney, provided he indorses upon the affidavit his own name, and the name and place of residence of the person for whom he acts as agent in suing out such second com- mission. And by the same order, whenever any attorney sues out a commission as agent for another, he is required to make a similar indorsement. An attorney or solicitor cannot, as has been formerly Cannot be observed (7), be made a bankrupt himself in his profes- u'"'l^ (1 ) 2 Atk. 298. Cas. temp. Tal- (3) See ante, Ch. V. Sect. 1. J^"" ''^""'■" bot, il5. 2 Ves. .549. 4Bro. 350. (4) 26th June, 1795. ^^^' 2 Ves.jun. 199.; and see 7 Ves. 584. (5) Ante, p. 120. 3 Anstr. 769. (6) 5th November, 1 793. (2) 2 Ves. 260. 2 At. 30. (7) Ante, p. 23. 3 K 2 868 OF THE SOLICITOR. [Ch. 23. Rights sional capacity ; though he is liable (like any other person) and du- ^ . . ^ . i .,.1 • 1 1 flgg to a commission ot bankruptcy, ir lie acts in the character of a scrivener, or follows any other calling which the bank- rupt law has denominated a trading. As to the The solicitor to the commission is, in general, the de- tion of positary of the commission and the proceedings ; and he is the pro- bound to keep them in safe custody, until required by the *= ■ assignees, or an order of the Lord Chancellor, to de- liver them up to any other person ; for (we have already seen(l)) he has no lien upon them, and if he refuses to produce them when legally required, costs will always be given against him. (2) But it seems, that he has a lien upon the proceedings under a commission which has been superseded, and cannot be compelled to deliver them up until his costs are paid. (3) If he is served with a sub- jpcena duces tecum to produce the [proceedings in a collateral action, the better opinion seems to be that he is bound to do so (4), and that this is an obligation incumbent upon him as a public duty (5); though Lord Kenyon in one case held the contrary, saying that the proceedings be- longed not to the solicitor but to the assignees. (6) Conflicting opinions have, also, been expressed by dif- ferent judges upon his liability to produce them when the production might tend to the detrimerd of his clients the assignees — Lord Chief Justice Abbott holding, that he was not compelled to do so (7) — whilst Lord GifFord, on the contrary, decided on one occasion that he was bound to produce certain books of the bankrupt, in order that entries relating to the matters in issue, but to them alone, might be read upon the trial — notwithstanding there was in this case a possibility of the assignees being prejudiced by the (1) Ante, p. 865. (4) Cohen v. Templar, 2 Star. (2) Ex parte Bullcn, 1 Rose, 134. 260. per Holroyd J. Ex parte Hardy, ibid. 395. Ex (5) Pearson v. Fletcher, 5Esp. parte Tillcij, 2 Rose, 83. ; and see 90. per Lord EUenborough. Ex parte Sandisnn, 1 Rose, 275. (6) Bateson v. HartsM, 4 Esp. (5) Ex parte Shaw, 1 G. & J. 45. 124. (7) Laing v. Barclay. 3 Star.38. Sect. 1.] OF THE SOLICITOR. 869 result of the verdict. ( 1 ) The soHcitor, however, ought at all Rights events (when served with a suhpcena duces tecum) to be ready ^^^^^ to produce the proceedings, if ordered to do so by the Court — though it seems a question for the judge, whether he ought to be compelled ; — for in case of disobedience without special cause, he will be liable to an attachment, or an action for damages. (2) With respect to other papers and documents deposited As to pro- by a bankrupt with his solicitor, and which do not form ^^^^^^ ^ any part of the proceedings under the commission — it has pers depo- been held, that a solicitor is bound to produce such papers f^^^? ^ (for the purposes for which he received them) on behalf of the assignees, though he is not employed by them in the cause; but he is not bound to deliver them up, or even to produce them in uht/ other business, without payment of his bill. (3) And where a solicitor has no lien on such papeis deposited with him by a bankrupt, the Lord Chan- cellor will, on petition, order them to be delivered up to the assignees (if necessary) for the administration of the estate ; though such an application was refused, v^here the assignees wanted them for the purpose of instituting criminal proceedings against the bankrupt. (4) A solicitor, also, who is not the bankrupt's solicitor, but who has in his custody a deed executed by the bankrupt, is bound to pro- duce it if required by the commissioners, like any other witness upon a suhpcena duces tecum — without prejudice, liowever, to any legal objection he may have to disclose circumstances relating to the deed, on the ground of con- fidenlial communication. (5) An attorney is, in general, privileged from arrest by process issuing out of his own Court; — and if arrested, may move to be discharged on common bail. (6) But if (1) Hawkins v. Howard, 1 R3'an (4) Ex parte Lines, Buck, 337. & M. 64. ; and see Corsen v. JDu- (5) Ex parte Treacher, Buck, bois, 1 Holt, 239. ; and ante, p. 790. 17. ; and see 1 Holt's Rep. 239. (2) 1 Holt, 239. iPhill. 471. (6) 1 Mod. 10. 2 Salk, 544. (3) Ross V. Laughton, 1 Ves. & 1 Wils. 298. B. 349. 3 K 3 870 OF THE SOLICITOR. [Ch. 23. Rights and du- ties. When privileged irom ar- rest. When ex- pected to explain his con- duct. Cannot execute the bond to the Chancel- lor for an infant. Must pay commis- sioners' fees. When liable to the mes- senger. he is arrested by process out of a different Court, he must then find special bail, and plead his privilege in abate- ment. (1) And where a solicitor was arrested by a clerk hi Court, and applied to the Lord Chancellor for an in- junction to stay the proceedings, and for an order that the bail-bond should be cancelled, — Lord Eldon said, that by granting such a motion, he should take away the autho- rity and privileges of the ancient officers of the Court. (2) But a solicitor, as well in bankruptcy as in the course of other judicial proceedings, is privileged from arrest in going to or returning from the Courj, to which his duty to his client calls him; therefore, where a solicitor was ar- rested on his way to Lincoln's Inn Hall to attend the hearing of a petition in the Lord Chancellor's paper, he was ordered to be (3) discharged on motion — Loi'd Eldon upon this occasion examining the party himself, and the oath being administered by the registrar. When a commission is suspicious in the circumstances of the issuing of it, the Lord Chancellor will expect the solicitor to give an account of his conduct, and to explain those circumstances. (4) As no person but the petitioning creditor himself can enter into the bond to the Lord Chancellor upon issuing the commission, a solicitor was therefore refused per- mission to give the bond for a petitioning creditor who was an irifant. (5) The solicitor is bound to pay the fees of the commis- sioners if they are summoned to attend, whether there be assets sufficient for that ])urpose or not ; and if he refuse, the commissioners may petition against him. (6) So, he is liable to the messenger for his costs, and for any damages sustained by him when the commission is superseded for (1) 2 Salk. 544. 2 Str. 864. 2 Ld. R. 1567. 1 Wiis. 506. (2) Smith V. Wainiuright, Sitting after Michaelmas term, 1826. (.") Castles case, 16 Ves. 412. The application in such a case must be entitled in the banhriiplcy. (4) Ex parte Stevens, 6 Ves. 2. 19 Vcs. 5.39. (5) Ex parte Barrow, 3 Ves. 554. (6) Ex parte Griffith, 2 Rose, ."42. 1 Mad. 36. Sect. 2.] OF THE SOLICITOR. 871 fi'aud, and the petitioning creditor has absconded. ( 1 ) In like Rights manner, where the solicitor was employed by the petition- ?" "' ing creditor to work the commission for a sum certain, and had received a great part of that sum, he was held liable to the payment of the messenger's bill. (2) But, in general, the solicitor is not to be regarded as a principal, though he is the medium through which it is convenient that the messenger should receive his fees (3) ; for the petitioning creditor, and not the solicitor, is liable to the messenger in the first instance, unless t^ie solicitor has made himself re- sponsible by special agreement. (4<) The solicitor, employed to present a petition to stay the bankrupt's certificate, ought not to withdraw it withou leave of the Court. (5) Neither of the parties in an action at law can change his Attorney attorney without leave of the Court, or the order of a c^n^ot be^ Judge for that purpose ; and such leave will not be granted changed until the party applying for it has actually paid, or under- ^^'^^out taken to pay, the attorney's bill as taxed by the proper the Court, officer. (6) But a party may change his solicitor in the Court of Chancery without a previous order of Court. The solicitor will, however, in such case have a lien for his costs upon the papers in his possession, though he cannot (except by retaining such papers) prevent the pro- gress of the cause till he be satisfied. (7) Section II. Of his Lien for Costs. Though an attorney or solicitor has not, as we have On what already seen(.s), any lien upon the commission or the pro- his lien QttHcncs* (1) Ex partelZarfo^, 9Ves. 109, 2 Bl. 152.5. Doug. 217.; and see 12 Ves. 549, 2 Ves, 162, Langley v. Stapleton, (2) Hartop V. Juc/ces, 2 M, & S, 1 Barnes, 35. 15 Ves. 1 96, 438. (7) Merryweather v. Mcllisli, (3) 2M. &S.438. 13 Ves. 161, Tivort V, Bayrell^ (4) Hart V. White, 1 Holt, 376. ibid. 195.; and see 1 Sch, & Lef. Hart V. Biggs, ibid, 245. 315. 2 Ves,112. 3Atk,727, 14Ves. (5) Ex parte Gihson, 6 Ves. 5. 272. (6) 7 Mod, 50. Say, Rep, 218, (8) Ante, 8fi5, 86S, 3 K 4 872 OF THE SOLICITOR. [Ch.23. Lien. Goes to personal repre- sentative. How far lien on proceed- ings in a suit ex- tends. Lien of an agent up- on papers. ceedings under it (whilst the commission is in existence) for his costs, yet he has a general lien upon all ofhej' deeds and papers of the bankrupt, which came into his hands before the bankruptcy — but not for those received offer the bankruptcy ; — and he has the same lien, also, against the assignees as against the bankrupt. (1) This lien is held to attach, pot only in respect of his bill for business done before his bankruptcy, but for the costs of an action brought by him against the bankrupt (even subsequently to the issuing of the commission) in order to recover the amount of his bill. (2) And if the attorney dies, his lien is not extinguished, but goes to his personal representa- tive; for the Court will not order his executor to deliver up the deeds or papers, until security has been given that his lien will be discharged. (3) But the lien of an attorney (on papers and proceedings in an action or suit in which his client is concerned) only extends to the amount of his costs and charges in that particular action or suit, and not to any demand he may have against his client in respect of ot/ier actions or suits. (4) And if papers are deposited with an attorney for a par- ticular purpose, then they are exonerated from his general lien ; but the purpose of the deposit must appear by special agreement. (5) So, the agent of a country attorney (who becomes bank- rupt) has a lien upon papers in his hands for the amount of his agency fees, — which lien, it seems, is not defeated by his proving his debt under the commission. (6) He has not, however, a ge7ieral Wen upon the papers in a cause, but only a special lien for the amount of money actually due to him (1) Mitchell V. Oldfield, 4 T. R. 123. Ex parte Bubh, vVin. Ah. 74. Ex parte Bell, 1. C. B. L. 429. Ex parte Femhertan, IsVes. 282. Stevenson v. Blakelock, 1 M. & S. 535. Ex parte Lee, 2Ves. jun. 285. Park v. Carter, I C. B. L. 285. (2) Lambert v. Buclnnaster, 2 B. &C. 616. (5) Redfearn v. Soiverh^,\^viimst. 84. 1 Wils. 96. (4) Laim V. Church, 4 Mad. 591. Bray v. Hinc, 6 Pri. 203. (5) Ex parte Stirling, 1 6 Ves. 258. (6) Ex parte Steele, 16 Ves. 164. 873 Sect. 2.] OF THE SOLICITOR. from the country attorney for business done in that par- j^^^^^^ ticular cause, and — as against the client or party in the cause — not beyond the extent also of the balance due from the client to the country attorney. (1) If the attorney take any security for payment of his bill, wj^^t a such as a bond or promissory note — or enter into any spe- waiver of cial contract or agreement for the payment of it, — his lien, ^^"" in either of these cases, is held to be abandoned (2) ; for it is a maxim adopted from the civil law, that a party entitled to a lien, by taking security for his demand, waives that right — the special contract in this instance superseding the implied one. And where a solicitor had obtained an order to have his bill taxed, and to prove for the amount, he was held by the Vice-Chancellor to have waived his lien upon papers belonging to the bankrupt. (3) But where an attorney had taken acceptances for the amount of his balance before a lease came to his hands, and some of which acceptances had also befoi'e then been dishonoured, and one taken up by himself, — the Court of King's Bench dis- tinguished this case from that of Co'well v. Simpsoji, and held that his lien was not extinguished. (4) The lien of an attorney, on deeds and papers in his tj^ . ^ c possession, is confined to the deeds strictly belonging to the lien on his client — except, indeed, those which he has himself pre- ^^^^s and pared. (5) Therefore, if a tenant for life put the deeds of the life estate into his attorney's hands, and dies, — the attorney has no lien upon them as against the remainder- man. (6) So, where deeds not prepared by an attorney come by iy ,• accident into his hands (even through the medium of his against own client), the attorney has not a lien upon them, as third per- . deeds not (1) Brat/ V, Hine, 6 Pn. 205. but see Ex parte Steele, leVes. prepared Anon. 2 Dick. 802. 15 Ves. 297. 16-!. Ex ])ane Hunter, Buc^, 5 56. by him ; Chapman v. Clarice, ibid. Farewell (4) Stevenson v. Blakelock, 1 M. V. Coker, 2 P. Wnis. 460. & S. 555. (2) Cowell V. Simpson, 16 Ves. {5)]Hollis v. Claridge,4Ta\mt. 807. 275.; and see 1 Turn. 91. per Lord (6) Ex parte Nesbitt, 2Sch. & Kldon. Let'. 279.; and see Hoare v. Parker, (3) Exparteift/-«%,Buckj551.; 2T. R. 376. Bishojj v. Huggins, -2 Barnes, 58. 874? OF THE SOLICITOR. [Ch. 23. Lien. nor on a will, nor as stew- ard of a manor; on money recovered in an action ; on an es- tate re- covered. Money in hands of the sheriff. Money awarded by an ar- bitrator. against the other party to the deeds, for the amount of his demand against his client. (1) Neither has an attorney any lien upon the mil of his client (2), nor upon documents, which he obtained possession of, not in his character of attorney, but in that of steward of a manor. (3) The lien of an attorney attaches upon money in his hands belonging to his client, as well as to deeds and papers. Therefore, if money be recovered in an action, he may stop it in transitu, or apply to the Court to prevent its being paid over until his own demand is satisfied (4) — upon the principle (as Lord Kenyon formerly observed) that the party should not run away with the fruits of the cause, without satisfying the legal demands of his attorney, by whose industry, and in many instances at whose ex- pense, those fruits are obtained. (5) Therefore, if a de- fendant's attorney pay to the plaintiff the debt and costs recovered, after notice from the plaintiff's attorney not to do so till his bill has been first satisfied, the former is liable to pay over again to the latter the amount of his lien on such debt and costs. (6) So, if a solicitor pro- secute to a decree, he has a lien on an estate recovered, as against the person recovering, for his bill ; but not as against the estate in the hands of the heir, unless it should be ne- cessary to have the suit revived : and, in that case, the lien will revive too. (7) An attorney has also a lien for his bill upon money levied under an execution upon a judg- ment recovered against his client ; and, on motion, the Court will grant a rule upon the sheriff to pay it over to him, notwithstanding a docquet has been struck against the plaintiff on an act of bankruptcy since the judgment. (8) So, an attorney has a lien upon a sum awarded in favour of his client (9), as well as if it was recovered by judgment. ( 1 ) Esdaile v. Oxenham, 5 B. & C. 225. (2) Georges V. Georges, IsVes. 294. Belch v. Symes, 1 Turn. 87. (.") Cha,mpcrnoun\. Scott, 6 Mad. 95. (4) Tidd's Prac. 329 M5. (5) Bead v. Duj)ppr, 6T.R.501. 1 Taunt. 341. (6) 6T.R.561. (7) Ambl. 102. (8) Griffin v. Eyics, 1 H.B. 122 (9) Ormcrodv. Talc, lEast,464.; Barnes, and sec Gijf'vrd v. Gijjhrd, Forest's Rep. 109. " Sect. 2.] OF THE SOLICITOR. 875 Where costs were ordered to be paid by a petitioning "' creditor to a bankrupt upoil the commission being super- Costs or- seded, the bankrupt's solicitor was held to have a lien upon ^^red to 1 r I f T 1 . . , be paid. the costs tor the expense or supersedmg tlie commission (1) ; and, indeed, where any costs are ordered to be paid to a party to a petition, the solicitor of the party has a lien upon those costs for his own charges, although there be no fund in Court to pay them ; neither can the client, in such a case, release the benefit of the order to the prejudice of the solicitor. (2) But it has been determined, that his lien on Si fund decreed to his client is (like his lien upon papers in a cause) not a general lien ; and that he can only claim to be reimbursed out of such fund the costs in that particular suit, and not his demand for costs incurred in other suits. (3) So an agent in London for a country attorney has only a Agent's lien on the damages and costs recovered in an action, to , " "" 1 p 1 • 1 I • -1 -1 damages the amount or what is due to him as agent in tiie particular and costs. cause, and not to the extent of what would have been the amount of the country attorney's costs. (4) Where a solicitor, however, declines to act any further When for a client, on the ground of the refusal of the latter to tiecHn"^ follow his advice, he has, in this case, no lien for his costs to act. upon a fund in Court ; for whatever may be his reasons for declining to proceed, a solicitor can only claim a lien on a fund of this description, when he carries the business through to a hearing. (5) In deducting or setting off the costs, or the damages and Lien in costs, in one action against those in another, there is some ^'^"'"S on . • r \ • costs Ul difference in the practice of the courts as to the recognition different of the lien of the attorney. In the Common Pleas it is actions, holden, that the lien of the attorney is subject to, and (1) Ex parte Castle, 15 Yes. 539. (4) White v. Rot/al E.vchange (2) Exparte iiAorfe*, 15Ves.542. Assurance, 1 Bing. 20. Ward v. Ex parte Bryant, 2 Rose, 237. Kepple, 15 Ves. 297. Moody v. 2 Ves. 25. Spencer, 2 Dow. & R. 6. (3) Laun V. Churcti, 4 Mad. 391. (5) Cress lucll v. Byron, 14 Ves. 271. 876 O' THE SOLICITOR. [Ch. 23. Lien. therefore ought not to be permitted to interfere'with, any equitable arrangement that may be directed between the parties in the suit. ( 1 ) Lord Eldon, it seems, when Chief Justice of the Common Pleas, did not approve of this practice, — saying, that in the Court of Chancery he never knev/ the idea entertained of arranging the funds, till the respective attornies were paid their costs (2) ; though after- wards, it appears, he must have altered his opinion in this respect, since it has been subsequently decided by him in equity, that costs are arranged according to the equities of the parties, and that the solicitor's lien is only upon the balance under that arrangement. (3) The practice, how- ever, of the Common Pleas in this particular, has been since supported by subsequent cases in the same Court, by which the right of set-off between the parties is pre- ferred to the lien of the attorney. (4) In the King's Bench this right of set-off is not permitted until the bill of the attorney has been discharged ; that Court considering, that an attorney has a lien for his fees in the cause upon the costs and damages recovered — and that such a set-off, therefore, cannot be enforced adversely to his lien. (5) And this practice appears to accord also with that in the Ex- chequer (6) ; where it has been holden that a plaintiff, by settling the action without the knowledge of his attorney, does not deprive the attorney of his lien for costs, but that he may nevertheless go on to judgment and take out execution for nominal damages and costs. (7) But where the defendant, not having had notice to the contrary, com- promised the debt and costs with the plaintiff before his attorney had been paid, the Court of King s Bench would (1) Schoole V. Noble, i H.B. 2-5. (5) Middleton v. Hill, 1 M.&S. Nunez v. Modigliam, ibid. 217.; 240. Mitchell \. Oldfield, 4 T. R. and see Hullock, 472. and the 125. Randall v. Fuller, 6 T. R. cases there cited. 456. Morland v. Rashleigh, 2 H. (2) i7<2//v. Oflfj/, 2B.&P. 28. B. 441. note. Glaister v. Hewer, (3) 15Ves. 75. 79. Ex parte 8 T. R. 69. Rhodes, 15 Ves. 541,542. (6) Sinifh v. Brocklesby, 1 Anst. (4) Emden v. Darley, 1 New. 61. Gahhool\. Chaiitor,\\i\A.21^. Rep, 22. Rroivn v., Sayer, 4 Taunt. (7) Cole v. Bennett, 6 Pri. 15. •320. : and see 2 N. R. 102. Sect. 3.] OF THE SOLICITOR. 877 not oblige the defendant to pay the plaintiff's attorney the -^^^"' amount of his costs. (1) With respect to interlocutory costs, even in the King's Interlocu- Bench, the attorney's lien is there held only to attach upon ^^^^ *^°®'^* the balance of the costs accruing in the same cause, which are ultimatelrj to be paid over to the one or the other party in the cause ; and that the cause is not to be split, so as to give the attorney of either party a lien upon such interlocutory costs, when his client might finally be bound to pay costs to a greater amount to the adverse party. (2) And the lien of the attorney for his costs is held in no No lien on case to interfere with the personal liberty of the other '^"f'^"- party to the suit, nor to extend to a lien on the defendant's body; body (3) ; as, where a plaintiff after judgment settled the action with the defendant, and employed a new attor- ney to enter up satisfaction on the record, the defendant was considered entitled to be discharged out of custody, though the lien of the plaintiff's attorney for his costs had not been satisfied. (4) Whenever an attorney calls on the Court to interfere nor with- summarily aijainst a party, who has deprived him of his ^"j" ^ ''^' J r> r J ' r ^ gular au- costs by entering satisfaction on record, he must make it thority. distinctly appear, that every thing on his part has been rightly done. If he has not, therefore, a regular authority from the plaintiff for the commencement of an action, the Court will not interfere in his behalf, by ordering the entry of satisfaction to be vacated. (5) Section III. Of the Taxation of the Solicitor's Bill of Costs, a7id his remedy for the Payment of it. It has been before observed, that the costs of pro- How costs secuting the commission up to the choice of assignees are ^^^ *» be td.X6Cla (1) Doug. 238. (4) ilfarr V. 5'w?VA, 4B.&-A.466. (2) Howell V. Harding, 8 East, Martin v. Francis, 2 B. & A. 402. 362. (5) Abbott V. Rice, 3 Bing. 154. (3) Pyne v. Erie, 8 T. R. 407. 878 OF THE SOLICITOR. [Ch. 23. Taxation of bill. Where no commis- sion siib- sistin;;. Where, of course, to order tax- ation. to be taxed and ascertained by the commissioners at the meeting for that purpose ; and that if any party is dissatis- fied with their taxation, the bill may, upon application to the Chancellor, and reasonable objection shewn, be re- ferred to a Master to be taxed (1) — and this even though the amount of the bill has been allowed in die accounts of the assignees. (2) The new enactment (3) has been also noticed, by which all subsequent costs are now made tax- able by the commissioners in the first instance, with the same reservation of the right of any party to refer the tax- ation afterwards to a Master. (4) Some doubts were formerly entertained, whether the Lord Chancellor can order the taxation of a bill in bank- ruptcy, where there is no commission subsisting — as in a case, where the application is made to tax a bill after the com- mission is superseded. (5) But it seems, that the general jurisdiction of the Lord Chancellor over solicitors, as offi- cers of the Court, will give him sufficient authority to make any order that he thinks fit respecting the taxation of a solicitor's bill. (6) And where a docket has been struck, though no commission is sealed, the Lord Chancellor has, upon petition, referred the bill to be taxed. (7) Where charges in a solicitor's bill up to the choice of assignees are prima facie exorbitant, it is of course to refer it to a Master to tax, — notwithstanding it may have been paid, and the assignee may be dead who paid it. (8) The order for taxing such a bill may be drawn up, even upon an ex •parte application, and if the solicitor wishes to modify or discharge the order, he must apply to the Court for that purpose. (9) Any creditor, also, may apply for the order, if there has been neglect on the part of the assignees, but not otherwise. (10) 49. (1) Ante, p. 845. (2) Ex parte Gregson, 3 Matl. (3) Section 14. (4) Ante, p. 847, (5) Ex parte Parker, 1 C. B. L. 12. Ex parte J/rfr/'f/gf, ibid. (6) Ex parte Karl of Uxbndgc, 6 Ves. 425. Ex parte Arroivsmith, 15 Ves. 124. (7) Ex parte Smith, 5 Ves. 706. (8) Ex parte Neale, Buck, 111. Ex parte Emerij, ibid. 422. (9) Ex parte Hewitt, Buck, 588. (10) Ex parte Walker, l(f.&J. 95, Sect. 3.] OF THE SOLICITOR. 879 In case of a deficiency of assets, the petitioning ere- ^«^«*«om ditor (we have seen) and not the assignees, is personally liable to the solicitor for his bill up to the choice of as- Who signees(l); though his remedy to enforce the payment solictor of it seems rather to be by an action at law than by petition when no lo the Chancellor. (2) ^''^^'• Where the solicitor (employed by the petitioning creditor How to sue out the commission) is continued by the assignees, t'ound to and, having delivered his bill including all charges both ateatrene- before and after the choice, receives a certain sum on r^,! pay- account of his bill generally from the assignees, he is bound to appropriate it (in his account with the peti- tioning creditor) in reduction of his claims upon him for his costs before the choice of assignees. (3) Where the amount of such costs, therefore, is covered by the sum so received, it cannot be set off by the solicitor against a debt due from him to the petitioning creditor on his own account. A solicitor having persuaded a petitioning creditor to When or- strike a docket, upon the solicitor undertaking to prove der refused , PIT. 1 1 ... to tax bill, the act oi bankruptcy, and guarantee the petitioning ci'editor from the expenses of issuing the commission, an order was refused for taxing the solicitor's bill ; for both he and the petitioning creditor were, in this case, considered to be guilty of a contempt of the Great Seal. (4) Where a solicitor carries on suits in equity for an as- When the signee, without the authority of the majority in value of ""■, the bankrupt's creditors present at a meeting summoned estate not for that purpose, he has no claim against the estate of the y^^ *° bankrupt for his bill in respect of such suits, though he has a personal remedy against the assignee who employed (1) Ex parte Haynes, 1 G. & J. (3) Philips v. Dicas, 15 East, 35. 248. (2) See ante, p. 846. (4) Ex parte Wilson, Buck, 506. 880 OF THE SOLICITOR. [Ch. 23. Taxation him. (1) And the Court will not countenance the employ- '^•^J^f__ ment of more than one solicitor under the commission, so as to increase the charge to the bankrupt's estate. There- fore, where a soHcitor (who was not the solicitor to the com- mission) was employed by joint creditors under a separate commission, to conduct examinations, &c. before the com- missioners, the Lord Chancellor refused to make any order for the payment of his charge out of the joint effects. (2) Where Where a solicitor takes out a commission against a solicitor bankrupt upon a debt due to himself for costs, any creditor sues out a ^ ^ j commis- in this case may have the bill of costs taxed, if the bank- sion on his ^.^pj. himself at the time of his bankruptcy was not con- eluded. (3) As to costs A solicitor, who has been engaged in carrying on legal inciured proceedings for the bankrupt, cannot charge his estate subsequent ^.,, . ,, ,.. -, to the with the costs nicurred subsequent to the commission ot bank- the act of bankruptcy. A debt, therefore, composed of such costs is not a good petitioning creditor's debt. (4f Bill cannot With respect to other matters, not occurring in bank- be taxed ruptcy, it is a matter of course to order the bill of an attor- upon the ^ "^ ,. . trial, or ney or solicitor to be taxed (under the provisions of the after a 2 G. 2. c. 23.) before a judgment is obtained against the judgment , ' , • , • , - , , 7 recovered pai'ty to be charged with it; which order must be person- on it; ally served upon the solicitor, unless a special order is ob- tained to dispense with such service. But it is a settled point, that the bill cannot be taxed at the trial of an action brought upon it, or after verdict ,• for the officer of the Court is considered to be the best judge of the reason- ableness of the charges, the Court itself) during the pro- gress of a trial) being quite incompetent to determine sa- tisfactorily upon the different items. Therefore, if a party, who may have the bill previously taxed, waive that ad- (1) Ex parte Whitchurch, 1 Atk. (3) Ex parte Prideaux, 1 G. & 210. J. 28. (2) Ex parte Longman, 1 Rose, (4) Ex parte Miller, Buck, 286. 303. Sect. 3.] OF THE SOLICITOR. 881 vantage, and let the cause go to a jury, eitlier by pleading, Taxation or on a judgment by default, he cannot afterwards resort to the taxation by the officer of the Court. Where, also, an account has been settled between an at- "o^' ^^^^'^ 1 , . T X r^ -n • IP an account torney and his chent, the Court will not, in general, reier j^ settled. a bill for taxation, unless error, fraud, or other circumstances be disclosed by affidavit (1); in which case, neither pay- ment, nor a release, nor a judgment for the money due, will preclude the Court from having the bill taxed. (2) But W/here a bond was given lor the amount of an attorney's bill five years before, and all the vouchers were delivered up (3) — or where a bill has been settled and paid several years, and a receipt in full given (4<), — the Court, in each of these cases (there being no evidence of fraud) refused to refer the bill to be taxed. Where, however, the circum- stances are suspicious, and the client has inadvertently given a bond or mortgage to secure the payment of what was charged to be due to him on account of fees, &c., courts of equity have in some cases relieved the client, and ordered the bill to be taxed (5) ; and this even after the lapse of a considerable number of years. (6) So the settlement of a solicitor's bill pending a cause is not, as be- tween other persons, conclusive; for while the suit is pend- ing, the client is in a degree under the control of the solicitor; and such a settlement does not therefore bar a taxation. (7) If the whole of an attorney's bill be for conveyancing What business, it cannot be taxed (8) ; but if the bill be in part itam tax- for business done in court, and the rest for business of an- (1) Hooper v. Till, Doug. 198. (4) Pistor v. Dunbar, 1 Anstr. Clarke v. Taylor, Cas, Pr. C. P. 186. 118. Prac.Reg. 58. Barnes, 124. (5) Per Lord Hardwicke, 2 Atk. Longstajfe V. Taylor, 14Ves. 262. 29,30. Per Lord Camden, 1 Dick. Bennet v. Hart, Say. 325. Dra- 405. 14Ves. 265.; and see ante, par's Company \. Davis, 2 Atk. 295. 727. Hullock, 501. et seq. (6) Lewes v. Morgan, 5 Pri. 42. (2) Say, 323. Doug. 199.; and (7) Crossley v. Parker, 1 Jac. & see 2 Atk. 295. W. 460. ; and see ante, 866. (3) March V. Carter, Cas. Prac. (8) Hillier v. James. Barnes, 41. C.P.109. Prac. Reg. 57. B.N. P. 145. 3 L 882 OF THE SOLICITOR. [Cll. 23. Taxation other nature, {heiiohole bill then is liable to taxation (1), ^{^^_ even though the smallest item be for business done in court. (2) Charges, also, for holding the courts of a manor by an attorney, as the steward of the Court, are charges for business connected with his professional character, (like those for conveyancing,) and are, therefore, taxable when found in a bill containing other taxable items. (3) And whenever an action is commenced in any court upon an attorney's bill, that court (being thereby possessed of the cause) has a power to refer such bill for taxation, al- though no one item in it is for business transacted in that particular court. (4) So, from what the Court of King's Bench has intimated in a recent decision (5), it seems, that any court has a paramount jurisdiction, independent of the 2 G. 2. c. 23., to refer the bill of any attorney or solicitor of that particular court to be taxed. If an attorney deliver two separate bills together, one of which is for fees and disbursements in causes, and the other for conveyancing, the Court in such a case has ordered both bills to be taxed. (6) A bill, also, for business done entirely at the quarter sessions (7), or in a criminal suit in the Court of Great Sessions in Wales (8), will, upon application, be referred to be taxed. And the charge for preparing an affidavit of debt and getting it sworn (9) — the preparing a warrant of attorney (10), even though it is never (11) executed — and the suing out a dcdimus potes- (1) 11 East, 28G. Anon. Doug. (6) Green v. Hassel, Say. Rep. 199. note. Margerum v. Saudi- 233. ford, 3 Bro. 233. (7) Ex parte Williams, 4T. R. (2) Wintcr\.Pmjne,(iT.R.45. 496. Clarke y. Donovan, 5T.R. Ex parte PrichcU, 1 N, R. 266. 694. 1 Esp. 137. 2 B. & P. 343. per Lord Eldon. (8) Lloyd v. Maund, 1 Tidd, (3) Luxmore \. Lethbndge, 5 B. 315. note. &A. 898. (9) 6T.R.645. (4) Evans v. Bevis, 2 Barnard, (lo) Wilson v. Gutheridgc, San- 182. Gregg's case, Salk. 89. {lom v. Bourne, 5 B. & C. 157. contra. 4 Camp. 68. (5) Wilson V. Gut/uridge, 5B. & (11) Wild v. Crauford, 2 Star. C. 157. 538. Sect. 3.] OF THE SOLICITOR. 888 tatem ( 1 ), are each of them sufficient items to enable the Taxation Court to refer the whole bill for taxation. An attorney's _____ bill may likewise be taxed after his death, notwithstanding the amount is then due to his executor. (2) But a solicitor's bill of fees 'wholly made up of charges What not for prosecuting an appeal from the Court of Chancery in ' " ' Ireland to the House of Lords, was held by the Court of Ex- chequer not capable of taxation — there being no criterion by which their own officer could tax the bill, or any means to which he could resort for assistance. (3) So, a charge for preparing an affidavit of the petitioning creditor's debt and bond to the Lord Chancellor, in order to obtain a com- mission of bankruptcy, is not a taxable item in an at- torney's bill within the 2 G. 2. c. 23. s. 23., as being a charge either at law or in equity, where the affidavit has not been sworn, nor a commission issued. (4-) For the same reason, a solicitor's bill in respect of business transacted in the affairs of a charitable foundation, though the office of visitor is exercised by the Lord Chancellor, is not liable to taxation ; for this also is considered not a proceeding either in law or equity ; as it is not in the Court of Chancery, that the visitatorial power is to be exercised. (5) An attorney's bill, which is not signed by him, cannot be taxed under the statute. (6) So, where a party agrees to pay a solicitor's bill on a third person, he cannot apply to have it taxed ; for the statute applies only to cases between solicitor and client. (7) So, also, where the attorney makes a special agreeme7it with his client to be paid a certain sion, or at a certain rate, for his time and trouble, — it seems doubtful whether, under these circumstances, the bill can be referred to be taxed; in one case (8) of this kind the Court said they could do nothing in it; while in another (9) (1) 1 N. R. 266. (.<;) Ex parte Daim, 9 Ves. 547. (2) Penson v. Johnson, 4 Taunt. (6) Cas. Prec. C. P. 60. 724. (7) Langford v. Nott, 1 Jac. & (3) Williams v. Odell, 4 Pri. 279. W. 29 1 . (4) Burton V. Chntlerton, 3 B. & (8) Anon. 2 Barnard, 164, A. 486. (9) Anon. 2 Say. ,-'21. 3 L 2 8vS4. OF THE SOLICITOR. [Ch. 23. Taxation it was holden, that the client should not be concluded by ^fj^ any agreement of this description. Bill of an The bill of an ageiit to a country attorney may be re- jigent. ferred to be taxed, upon the country attorney bringing the amount of the whole demand into court. (1) But the application to tax it must be made by the country attorney, and not by the client. (2) Mode of If an attoi-ney refuse to deliver a bill signed to his compel- client, the latter may compel him, by taking out a sum- ling an at- ' . , "^ i -p i / torneyto mons before a judge; and it ttie attorney (on service deliver his ^^hereof) do not attend, an order will be made to deliver ' it within a reasonable time. If he still neglect to deliver it, the order should be made a rule of court ; after duly serving which, and making affidavit of the sei'vice, the Court will, on and have motion, grant an attachment. When the bill is delivered, it taxed, ^j^g client may then apply for a judge's order to show cause, why it should not be referred to the proper officer ; upon which an order will be made, on the client's under- taking to pay the attorney what shall appear to be due to him upon such taxation. (3) But a client cannot have a summons for the delivery of the bill, and for taxing it, at the same time. (4) If the attorney do not attend the first appointment on the summons, an order will be made of course. (5) After bill After an attorney's bill has been once taxed by the proper once taxed officer of the court in which the business was done, it cannot able- " ' ^^ taxed a second time by the officer of any other court. (6) nor the Nor will a court of equity entertain cognizance of a bill for amount ^j^ account filed by the attorney, suggesting that improper able in a deductions were made by the officer upon the taxation, and suit in praying; that the defendants mio;ht come to a fair account equity. y j o ^ ^ o with the plaintiff for the monies due to him. (7) After (1) Dixon V. Plant, Doug. 199. {'i) Cowpcr\. MUburn,\]i&xnes, n. Ex \i-Mtc Bcarcroft, ibid. 200. 102. note. Grooviev. Syvionds,\lL\&i\. (5)4T. R. 580. 281. Contra, Anon. 2 Wils. 266.; (6) AslUon v. Moli/netix, and see 1 Dick. 112. 285. 1 Barnes, 95. (2) Wil(ldorey.Br}/an, sPri.6':9. (7) Osba/desion v. Cross, 2 Com. (3) 1 Tidd.olR. 612. Sect. 3.] OF THE SOLICITOR. 885 the taxation of the bill, also, the client cannot have an Taxation antecedent demand on the solicitor deducted out of what \ was taxed due to the solicitor upon such bill ; for, by ap- plying to have the bill taxed, the party submits to pay what shall be actually found due thereon. ( I ) The delivery of a former bill by an attorney is conclu- Attorney . , . . p , . , bound by sive evidence agamst an nicrease oi charge m a subsequent deiiverv of bill, on any of the items contained in it, and also strong a former presumptive evidence against any additional items — unless any errors, or real omissions, can be shown in the former bill (2) Where, after verdict and an injunction to stay execution. After a the parties finally settled the cause without the concurrence settlement of the attorney, it was held, that he might nevertheless parties, proceed to tax his costs, with a view of commencing an ™ay take . , . PI /^\ his costs. action in his own name tor the amount. (3) In taxing costs between solicitor and client, it is now No charge settled, that the solicitor can maintain no charge for draw- jn,r his bill. ing his bill of fees and disbursements, for he is obliged by the statute to deliver a bill to his client without any fee — nor is he allowed the charge for the attendance of a clerk in court upon the taxation, the latter being considered to attend on tlie private retainer of the solicitor. (4) With respect to the costs of taxation, the 2 G. 2. c. 23. Costs of s. 23. in express terms subjects the attorney to the pay- ment of them, if a sixth part of the amount of the bill is deducted by the officer on taxation ; but in case less than one sixth part is taken off, the statute gives the Court a discretionary power (5) of directing those costs to be paid either by the attorney or client, according to the reason- ableness or unreasonableness of the bill. In the exercise of this discretion, however, the courts are generally o-overned by the distinction pointed out by the statute, and make the client pay the costs of taxation, whenever less (1) Anon. 2 Ves. 452. (3) Brooks v. Bourne, 1 Pri. 72. (2) Loveridge v. Boihmn, 1 B.& (4) 1 Turner's Prac.400. P. 49. (5) 2Anstr. 491. 3 L 3 taxation. 886 OF THE SOLICITOR. [Ch. 23. Taxation of bill. It) biiiik- iLiptcy. Where the attorney accepts a less sum. Where items charged to a party not liable. than a sixth part is taken off the bill. (1) And the same even where the client advances money to the attorney to pay certain disbursements included in the bill, and the sum deducted is more than a sixth part of the amount of the bill, exclusive of those disbursements, but less than a sixth part of the gross amount. (2) The course in Bankruptcy, also, as to the taxation of a solicitor's bill, proceeds by analogy to the statute 2 G, 2. c. 23. If, therefore, upon relaxation by the Master, the bill be reduced above a sixth, the solicitor must pay the costs of taxation. (3) If an attorney, in satisfaction of a bill delivered, accept a less sum than what appears to be there charged, and the bill is afterwards taxed, the attorney is not liable to pay the costs of taxation, notwithstanding a sixth part is de- ducted from the bill delivered — unless the sum, at which the bill is taxed, is less than the sum received by the at- torney in satisfaction of the bill, by one sixth of such last mentioned sum. (4) Nor is the attorney liable to the costs, where the sixth part taken off the bill arose, not by the tax- ation of the particular items, but by the voJiole of certain eX' fenses being disallowed — on the ground that the client was not the 'person liable to those charges — and not because they were objectionable in their nature or amount. (5) But in a case before the Vice-Chancellor it was determined, that where items were charged in a solicitor's bill to his client, in respect of the defence of a third person at the alleged retainer of the client — and, in consequence of the solicitor failing to prove such retainer, those iteins were struck out on tax- ation, such items were to be computed among the de- ductions, for the purpose of determining upon whom the costs of taxation were to fall; and that, generallj"^, when- (1) Yea V. Frerc, 14Ves, 154. Webb V. Stone, 1 Anstr. 260. Hurst V. Dixon, 1 Barnes, 89. Cogan v. Cave, 1 Dick. 96, Barker V. Bishop of London, 2 Barnes, 147. ('-') Hindlc V. Shacklelon, 1 Taunt. J36. (.5) Ex parte Westall, 3V.&B. 141. Ex parte /whom, Buck. 129. Ex parte Hathaway, 2 Mad. 529. (4) EcoUier v Dutour, 2 Bai'nes, 98. (5) White V. Milncr, 2 H. B. 357. Sect. 4<.] OF THE SOLICITOR. 887 ever items would be properly taxable if the facts alleged Taxation by the attorney were true, and are deducted because he "- ^ ' ' does not establish those facts, the amount is to be reckoned as a deduction in the question of costs of taxation. (1) But the executor or administrator of an attorney is not Executor liable to the costs of taxation, although a sixth part of the "°' ''^^^*^" bill for business done by the testator or intestate be de- ducted; for the statute imposes such costs upon the attor- neif or solicitor only ; and an executor is held not to blame if he makes out the bill from the attorney's books. (2) Where, on the taxation of a solicitor's bill, so large a Where sum was disallowed as to make it a matter of reprobation ^'^^o'^^y 1 ^ f -n 1 ordered to by the Court, the Court of Exchequer not only ordered pay inte- the costs of taxation to be paid by the solicitor, but also ^.^^*'» ^^" Sides costs ordered him to pay interest upon a surplus balance re- of tax- maining in his hands, though it was not shewn that he ^tion. had made any interest of it. Thejurisdictionof the Court to make such an order was declared to be independent of the 2 G. 2. c. 23. and to be founded on the necessary and inherent control of every Court over the conduct of its own officers. (3) Where the attorney is entitled to the costs of taxation, Costs he should demand them at the time; for if he settles a demanded subsequent account with his client without applying for at the them, the Court will refuse a rule to have them after- ™^* wards allowed. (4) Section IV. Of Actions and other Proceedings by and against the Solicitor. By the 2 G. 2. c. 23. s. 23. it is enacted, that no at- Bill must i**Yii ** * D6 (lelivf^ro torney or solicitor shall commence or maintain any action cd a month or suit for the recovery of any fees, &c. at law or in equity, before action (1) Rigby V. Edivards, 5 Mad. (5) Rex v. Rack, 9 Pri. 349. brought. '20. (4) Whitjk'ld V. James, 1 Bing. (2) Weston V. Poole, 2 Str. 1056. 207. Dutlon V. Agate, Say. Costs, 327. 3l 4^ 888 OF THE SOLICITOR. [Ch. 23. Actions by and anainsf. Must be left with the party. Delivery at count- ing-house insuffi- cient. Service upon one ot" several assignees sufficient. Bill for ob- taining the certificate. Business in Insolvent Court. until the expiration of one month or more after such at- torney or solicitor respectively shall have delivered unto the party to be charged therewith, or left for him at his dwelling-house, or last place of abode, a bill of such fees, &c. written in a common legible hand, and in the English tongue, and subscribed with the proper hand of such attorney. Before any attorney can support an action for his fees, he must not only sign and deliver, but he must also leave his bill with the party to be charged (1 ) ; for the mere delivery of it to him (if the attorney take it back again) will not be sufficient, although the party should even acknowledge the debt and promise to pay it — the intention of the statute being, that the client should have due time to examine the charges made by the attorney, and take advice upon them if necessary. (2) The bill of a solicitor to a commission of bankrupt has been decided to be within the provisions of the above men- tioned statute (3) ; and the delivery of the bill at the counting- house of the client has been held to be not a good delivery - — the statute requiring that it shall either be delivered to the party perso7ial!^, or left at his d'H'eUing-Jwuse or last place of abode. (4) But where there are several assignees, it seems that the solicitor is not bound to serve each of them with a copy of his bill previous to the action ; but that service upon any one will be sufficient (5), if he has acted under the commission. An attorney's bill for obtaining a bankrupt's certificate must, as in other cases, be signed and delivered a month before he can sue upon it ; for the obtaining the Lord Chancellor's signature is considered as business done in a court. {Q) So an attorney cannot maintain an action for (1) Clarke v. Donovan, sT. R. 694. (2) Brookes v. Mason, I II. B. 290. (3) 2 Bos 544. (4) mil V. Humphreys, 2 B. & P. 543. (5) Croivder v. Slice, 1 Camp. 457. Finchctt v. How, 2 Camp. 279. Oxenham \. Lemon, 2 Dow. &R. 461. (6) Collins v. Nicholson, 2'Vs.\itiU 521. 1 Rose, 119. Sect. 4.] OF THE SOLICITOR. 889 business done in the Insolvent Court, without a previous Actions delivery of his bill pursuant to the statute. (I) ^^ "P^ But a solicitor may maintain an action against an as- ^ signee for business done under a commission of bankrupt, ^^^^"^ although the bill has not been taxedhy a Master in Chancery niay be under the fourteenth section of the new bankrupt act; for brought the provision contained in that section does not affect the not taxed, right of an attorney against his employer, but only applies to the protection of the estate. (2) And ^an attorney need not be admitted a solicitor in Chancery, in order to main- tain such action. (3) The assignees, however, are not liable Assignees to be joined as defendants in an action by the solicitor for gugj"/ the costs of issuing the commission, even though the peti- costs of tionins; creditor is one of the assignees. (4) issmng^ p ... commis- It is no defence to an action by a solicitor against an sion. assignee, that the commission was sued out under a repre- Commis- sentation by the plaintiff, that the commission would be fruitless"^ operative in the Isle of Man, and that it has been wholly does not fruitless; for the commission itself, whilst in existence, ^oiiTof cannot be considered as a mere nullity. (5) action. Where the solicitor to the commission received from the Where a bankrupt a promissory note for his bill of costs in procur- solicitor , rcstrmie,2Star.59. 279. (6) Ex parte Harding, Buck, 24. (s) Wilkinson v. Diggell, 1 B. & 57. 890 OF THE SOLICITOR. [Ch. 23. Actions by and against. may sup- port a commis- sion, upon his bill, though not previously delivered, and though pending an order for taxation of it. A solicitor, in general, not liable to the bankrupt in an ac- tion for suing out a commis- sion. When a petition will lie against him. referred to a Master for taxation, and after the bill was taxed, and more than a sixth taken off, the solicitor brought an action for the taxed costs, without deducting the costs of taxation, — the action was stayed on petition, and a re- ference was made to the Master to tax the costs of the tax- ation of costs, which were ordered to be deducted from the amount of the taxed costs, and the balance only to be paid to the solicitor. ( 1 ) Though an attorney has not delivered his bill pursuant to the statute of the 2 G.2. c.23. s.22., and cannot there- fore bring an action upon it, yet we have seen (2), that he may support a commission upon the amount that is owing to him ; though, in such a case, the bill will be afterwards referred to the Master to be taxed, either upon the appli- cation of the bankrupt, or of any of the creditors. (3) And where a solicitor, even pending an order for the taxation of his bill, and for staying all proceedings at laiso in the mean- time, sued out a commission upon it, — he was held not to be guilty of a contempt, nor was the commission supersed- able ; for the order was construed to extend only to bringitig actions, and the common and ordinary proceedings. (4) A solicitor, who sues out a commission of bankrupt for his client, is not in general answerable to the bankrupt in an action for damages for suing it out without sufficient cause, notwithstanding he sends in the messenger to take possession of the property of the bankrupt. In a case of this nature before Macdonald C. B., he said there was no satisfac- tory ground for a verdict against the solicitor, who was professionally bound to act as he had done. (5) If the solicitor do not pay the commissioners' fees to them, when they are summoned to attend, they may pe- tition against him. (6) And a petition will also lie against (1) Ex parte ifeZ/o«,4Mad.379. (2) Ante, p. 91. (5) Ex parte Sutton, 1 1 Ves. \63. Ex parte Steele, 16 Ves. 166. Ex parte Howell, 1 Rose, 31 'J. Ex parte Prideaux, 1 G. & J. 28. (4) Moseley's Rep. 27. l C. B. L. 17. (5) Smith V. Gain-sford, 1 Rose, 148. (n). (6) Ex parte Griffith, 2 Rose, 342. 1 Mad. 56. Sect. 4.3 OF THE SOLICITOR. 891 a solicitor to account for property received under the com- Actions ' • / , \ by and mission. (1) J^^.^^^ When a solicitor presents a petition in his own behalf in any matter of bankruptcy, the attestation required in v^^ to peti- other cases (2) is in this instance dispensed with. (3) licitor- The Court of Common Pleas has refused to stay proceed- When inffs, or to discharge a defendant on common bail (in an f^^'^", ^ °. ° ^ brought action brought bj' an attorney for the recovery of a bill of by attor- costs), though the ground of the application was, that such ".^^ before . . the expir- action was begun before the expiration of a month after the ation of a delivering of the bill ; — because, as that circumstance '"o"''^- might have been taken advantage of, either in pleading or at the trial of the cause, the Court held it unnecessary to interfere upon motion. (4) In the case of an action brought by the executor or ad- Where mi7iistrator of an attorney, the Common Pleas have held it ^^^^\ unnecessary, that the bill should be delivered before the executor commencement of the action. (5) But both that Court and *^^^" ^^' ^ torncv* the Court of King's Bench will now make a rule for refer- ring the bill in such a case to taxation, upon the defend- ant entering into the usual undertaking to pay what shall be found due. (6) Where the previous delivery of an attorney's bill is Evidence necessary to be proved at the trial to support the action, P^^^ssary rn . ... 1 } ^n support it is sufficient to give in evidence a copy of the bill which of an ac- has been delivered to the defendant, without proof of ^^^"^ ^y ^" notice to produce the original. (7) But the plaintiff can- not give parol evidence of the contents of the bill de- livered, unless he has given notice to produce it. (8) A mistake in the date of items in the bill, which does not (1) Saxton \. Davis, IsVes. 72. C. P. 58.; and see HuUock, 499. 1 Rose, 79. Andr. 276. (2) See ante, p. 840. (6) Penson v. Johiison, 4 Taunt. (3) Ex parte Kingdon, 1 Mad. 724. 446. (7) Anderson v. May, 2 B. & P. (4) Harper v. Leech, 1 Barnes, 237. 96. Tomlinsonv. Clarke, 'iMoore,^. (8) Pkilipson \, Chase, 2 Camp. (5) Spink V. Hare, 1 Barnes, 110. 1433 Griffi.lk V. Squire, Cas. Pr. 892 OF THE SOLICITOR. [Ch. 23. Actions by and against. Of the trans- action of the busi- ness, and the re- tainer. mislead, has been held not to vitiate the delivery of it, if regular in other respects. ( 1 ) And though the production of the writ is the usual mode of proving, that the action was not commenced till the expiration of a month from the time of such delivery, yet the Nisi Prius record has been also holden to be good iirimd facie evidence, that the action was properly commenced, and sufficient to satisfy (if un- contradicted) the 2 G. 2. c. 23. The defendant, however, may (if he can) contradict such evidence, by showing by a copy of the writ, that the action was really commenced be- fore the time. (2) After proving the delivery of his bill, the plaintiff must, also, give some general evidence that the husiness was done, as well as of his own retainei^ by the defendant. (3) The performance of the business may be established by the evidence of persons, who were in the plaintiff's office at the time it was done; and the plaintiff's engagement by or on the behalf of the defendant may be made out, either by direct evidence of the fact — or, as it should seem, by shewing that the defendant from time to time, or occasionally, gave directions concerning, or appeared as a party in, the proceeding. And it is a general rule, as has been before observed (4), that the reasonableness of the items in the bill cannot be discussed or entered upon at the trial, nor upon the execution of a writ of en- quiry after a judgment by default ; for, as the client has a summary method of trying the propriety of the charges by a reference to the Master, the waiver of that course is held to amount to an admission of the fairness or reasonableness of the charges, if the business were in fact done. (5) So, the negligence of the attorney cannot be set up as a defence upon the trial, however his conduct might furnish the ground of an action for negligence — (1) Williams v. Barber, 4 Taunt. 806. (2) Webb V. Pritchett, 1 B. & P. 265. (3) But see 2 Barnard, 253. (4) Ante, p. 880. (5) Williams v. Frith, Doug. 1 98. Anderson v. May, 2 B. & P. 257. ; and SCO 1 Esp. 159. HuUock, 500. Sect. 4f.] OF THE SOLICITOR. 893 at least, not unless it were sucli a species and degree of Actions negligence, as to depi-ive the defendant of all possible ad- H^amst vantage from the proceedings constituting the charges in the bill. (1) But if the bill be not liable to taxation under the 2. Geo. 2. — as, if it should be entirel}' for conveyancings the items in it will then be open to discussion and examin- ation at 'Nisi Prius; and, consequently, the plaintiff in such a case must (besides proving the performance of the busi- ness and the retainer) shew at the trial that the charges are reasonable. (2) Where some evidence is necessary of the plaintiff beifig Proof of an attorney — as in an action for words, for instance, \^^ spoken of the plaintiff in his profession — he need not attorney, prove this by producing his admission, or by a copy of the roll of attornies ; but proof that he acted as an attorney has been held to be sufficient. (3) But although an aitorney cannot supjjort an action upon Astoat- his bill before the expiration of a month after the delivery ?J."^^ * of it, yet the omission to deliver it a month beforehand set of the will not prevent his rio'ht of sett i??o:-o/F the amount in an ?"'^V"'- ^^ , , ■ 1 • TT 1 h^^ "^i^^- action brought against him. tie must not, however, pro- duce it at the trial by surprise ; though it is sufficient, in such a case, to deliver it time enough for the plaintiff to have it taxed before the trial. But it cannot be set off, if it has not been delivered at all. (4') It was decided by Lord Kenyon at Nisi Prius, that an Whether attorney cannot maintain an action even for the amount of ''^"'^^"^7 '' . . can reco- money actually expended by him in respect of the com- ver for mon law business of his client, without a previous de- ™""^y ^c- I tually ex- livery of his bill, notwithstanding he may have agreed to pended take the amount only of the money expended in satisfaction ^^'t'\o"t ,.. . 1 -11 / x T. • 1 • I 1 -1 1 previous oi his bill. (5) But It has since been determined, where an delivery. attorney at the defendant's recjuest put in bail for him in (1) Teinplerv. 3I'Lacklan,2N. (4) Martin v. Winder, Doug. R. 136. 199. (n) 1 Esp. 449. Murpliy v. (2) HuUock, 501. Cunningham, 1 Anstr. 198. (3) Berryman v. Wise, 4 T. R. (5) Miller v. Towers, Peake, 566. 102. 894 OF THE SOLICITOR. [Cll. 23. Actions by and against. Where one tax- able item in a bill delivered, attorney cannot re- cover any part with- out prov- ing a regu- lar deli- very; even for items not connected with the profession of an attorney. Where no bill deli- vered. an action, and afterwards paid the debt and costs, and then sued the defendant for the amount so paid, without making any charge whatever for his own trouble, — that, in such a case, the attorney need not deliver a bill to entitle him to a verdict — Lord C. J. Gibbs saying, that the statute only ap- plied to cases, where an attorney sues to recover a com- pensation for his labour and skill. (1) If, however, the bill be actually delivered, containing some charges liable to taxation, and others not — and it appear that the delivery was not strictly conformable to the statute, the plaintiff must in that case be nonsuited ; for if one single taxable item be found in a bill delivered, it brings the whole bill within the operation of the statute (2) ; and this more especially when the other items in it are for business done in the character and in the exercise of the duties of an attorney — such as for conveyancing business, for example, in which case the plaintiff cannot split his demand, but the statute at- taches upon the whole. (3) And, from what Lord Eldon says in his judgment in this case, it would seem, that if items even 7iot connected with the profession of an attorney are in- serted in the bill, the plaintiff will be equally precluded from recovering upon them — on the ground, that an attorney who inserts his whole demand upon his client in a bill con- taining taxable items^ will be taken to agree th^t he will not bring an action upon any -part of such demand until the bill has been delivered a month. In one case, also, though 710 hill was delivered before the action brought, but the txiliolc demand was connected with the plaintiff's character of an attorney, it was holden that the attorney's demand could not be severed (4) ; though in another case, where no hill had been delivered, Lord Kenyon admitted proof of charges for conveyancinghnsmess (5) ; and in one instance, where «o hill\\a.di been previously delivered — notwithstand- (1) Frotheroy. Thomas, 6 Taunt. 196, (2) Winters. Payne, 6 T.R.615. (.5) Hill V. Humphreys, 2 B. il' P. 345.; see 1 Ciiliip. 457. (4) Bentonv. Garcia, oUsp. 149. (5) Miller v. Towers, supra; and see 2 B. & P 345. per Lord Eldon. Sect. 4.] OF THE SOLICITOR. 895 ing the plaintiff delivered a bill of the particulars of his Actions demand under a Judge's order subsequent to the com- -^ , mencement of the suit, in which were contained items liable to taxation — the plaintiff was held entitled to recover the amount of other items charged in respect of payments for the client's use, such payments not being referable to the jilaintiffs business of an attorney. {\) From a revision of the preceding cases, it follows, that General wherever a bill is liable to be taxed under the 2 G. 2. c. 23., 'esult. it must be previously delivered conformably to the provisions of that statute, in order to entitle the attorney to a right of action either for the whole, or for any part, of the amount. There is one exception, however, to this rule — and that An agent is, in the case of the bill of an age7it to a country attorney, "'^J:^ ""'. which, although liable to taxation (2), need not be pre- bill. viously delivered to found a right of action on it ; for the statute of the 2 G. 2. only applies to a delivery to the proper client, and not to a delivery by an agent to an attorney. (3) Neither is such a bill within the provisions of the former statute of 3 Jac. 1. c. 7.} which enacts that all attornies and solicitors shall give a true bill unto their masters, or clients, before they shall charge their clients with any fees or charges. (4-) And, in general, it will be suffi- cient (to enable one attorney to maintain an action against another attorney for fees without a previous delivery of his bill signed, pursuant to the exceptions contained in the 12 G. 2. c. 13. s. 6.,) that the defendant is an attorney 2X the time of bringing the action, although he might not have been so at the time the business was done. (5) Where an attorney, after an order of the Court of King's Where an Bench for taxation of his bill and before it was taxed, j^^torney brought an action upon it in the Common Pleas, the last- action ' mentioned Court refused to stay proceedings in the action, pending {V) Mowbray v.Fleming,\\V.v&t, 2. note («). Nelson v. Garforth, 285. lEsp. 221. (2) Ante, p. 884. (5) Ford v. Maxwell, 2 H. B. (3) Bridges v. Francis, Peake, 1. 589. 1 Esp. 420. (4) Ibid. Jones v. Price, Pe.nke, 896 OF THE SOLICITOR. [Ch. 23. Actions hy and against. order for taxation. Attorney cannot sue for busi- ness done entirely by his clerk. When an attorney recovers a verdict, Court will not stay poslea to have the bill taxed. saying that they could not prevent a party from pursuing a remedy to which he was entitled by law, unless in so doing he incurred a contempt of that particular court ; and that it was for the Court of Ki?2g's Bench to enforce their own order. (1) In such a case, however, the attorney runs the risk of being committed for a contempt by the Court which makes the order for taxation. But after the actual taxation of the bill, there is then no objection to the attorney main- taining an action for the sum awarded by the Master, though pending an application to the Court for the costs of the taxation. (2) Where an attorney carried on business (at a town re- mote from his own residence) by a clerk, whom he paid by a proportion of the profits, — it was held that he could not recover in an action for business done by such clerk for a client, who never saw or [knew the attorney, nor ever had the benefit of his judgment. (3) After an attorney had brought an action and recovered a verdict for the amount of his bill, the Court refused to stay the postca in the hands of the associate, for the purpose of having the bill referred for taxation and the postea indorsed according to the allocatur — notwithstanding the jury ex- pressly found " a verdict for the plaintiff for the amount of the bill, subject to taxation ;" and the Court even discharged a rule nisi which had been obtained for this purpose, with costs ; the practice being inflexible, that the bill cannot be taxed ajiet^ verdict. (4) Solicitor With respect to suits in cguitj/ by a solicitor for his eqiiitv if costs, it has been decided that such a suit may be en- tertained, if for. business done in the court where it is brought ; and where the business is done in another court, that a bill in equity will also lie, if the business relate to another demand, which the plaintiff makes in the court of (1) Stcvcntonv. Watson, 1 B. & (3) Hoj)kinson v. Smit/i, 1 Bing. P. 565. 15. (2) Hewitt V. Bcllott, 2B.&A. (4) Hewitt v. Ferneley, 7 Pri. 745. 254,; and see ante, 880. business was done in the same court. Sect. 5.] OP THE SOLICITOR. 897 equity. (1) In a judgment also delivered by Lord Eldon, Actions on a bill filed by a clerk in court against a solicitor, he -^ "'■^^^\ observed, that it did not follow because an officer of the ^ court had a legal right, he might not also sue in his own court; and that the question depended in some degree upon the usage and inherent jurisdiction of the Court to compel its officers to do justice to each other, particularly in the matter of fees. (2) But where a bill was filed by an Alith his executrix of an attorney, to be paid the amount of the executor. testator's demand for business done both as an attorney and solicitor for the defendant, and the bill was demurred to, — Lord Hardwicke, in this case, allowed the de- murrer. (3) Section V. Of his Liability for Misconduct^ and herein of his general Liability. An attorney or solicitor is liable to be punished for Solicitor any misconduct in a summary way by the Court, of which ^"ipj'.opei'ly , . !./•'*', . . 1 , lending his he is an attorney or solicitor ; — on the principle, that name, how every Court is entitled to claim a necessary control over Py"'sh- . '' able. the conduct of its own officers. (4) If a solicitor, there- fore, lends his name to a person forbid by the Lord Chan- cellor to take out a commission, he will be struck off the roll for that reason alone. And Lord Eldon, upon one occasion, said he would in such a case go further ; and that when- ever a case of that nature should be brought forward, he would direct the Attorney- General to prosecute for a con- spiracy. (5) So, in a case where two solicitors were guilty Suina out a fraudu- {\) Lord Ranelaghv. Thornhill, A. 257. Ex parte Fisher, 1 Chitt. 1 Vern. 205. 694. Re^r v. £ac/i, 9 Pri. 349. (2) Barker v. Dacie, 6 Ves. 68 1 . ; {5) 6 Ves. 2. ; and see In re Jack- and see the cases cited in argument, son and Wood, 1 B. & C. 270. But ibid., and ante, 870. an agreement by an attorney to (.5) Parry v. Owen, Ambl. 109. pay a share of the profits oi" his 3 Atk. 740. business to another person who is (4) Ex parte Prankerd, 3 B. & not an attornej', is not illegal, Can- dler V. Candler, 1 Jacob, 270. a M 898 OF THE SOLICITOR. [Ch. 23. Liability, lent com- mission. Applica- tion to remove must be addressed to the ge- neral juris- diction of the Court. Solicitor not ame- nable for attesting a petition whilst in prison. Where charged with costs in bank- ruptcy. False de- scription of commis- sioners. of gross misconduct in suing out a fraudulent commission, Lord Thurlow ordered the solicitors to be committed, and deprived one of them of his office of a Master Extra- ordinary in Chancery ; — and further ordered, that they and other parties concerned should pay the costs, as between attorney and client. (1) And where the solicitor under a commission took upon himself likewise the several incon- sistent characters of banker, commissioner, and assignee, Lord Eldon ordered that he should never be permitted to take out another commission. (2) An application to remove a solicitor from being or act- ing as a Master Extraordinary of the Court of Chancery, and to strike him off the roll of such court, (though it may be properly made by reason of his conduct in a matter of bankruptcy,) should not be made in the hanh~uptcy, but should be addressed to the general jurisdiction of the Court. (3) Where a solicitor attested a petition in bankruptcy whilst in prison, and it was contended that the petition was void luider the statute of the 12 G. 2. c. 13. s.9., (which makes void any process sued out in any court of law or equity by an attorney or solicitor in prison, and renders him also liable to be struck off the rolls, and incapacitated from acting as an attorney in future;) — it was held, that so highly penal an enactment must be construed strictly ; and that in this case the statute did not apply; for that a petition in bankruptcy is not, strictly speaking, a proceed- ing either in law or equitij. (4) In many cases the solicitor, when guilty of misconduct, will be ordered to pay the costs of the proceeding in which he has misconducted himself, or of the application made to the Court complaining of his conduct; — as where he ob- tains the docket (contrary to the general order) by ajalse de- (1) Ex parte Thorp, 1 Ves, jun. (5) Ex parte Lowe, 1 G.& J. 78. ."94. ; and see Ex paite Conway, (4) Ex parte Thompson, 1 G. & l.~Vcs. 62. J, 508. (2) Ex parte Edwards, 6 Ves. 4. Sect. 5.] OF THE SOLICITOR. 899 scription of the commissioners in a country commission. (1) So where a solicitor struck a second docket afjainst a bank- rupt, merely on the ground of a variation in the spelling of the bankrupt's name, though knowing it to be the same person, — Lord Eldon ordered the second commission to be superseded at the costs of die solicitor, (2) And where he is implicated in suing out a concerted commission, he will be jointly liable with the petitioning creditor and the bank- rupt for the costs of superseding it. (3) In like manner, where a solicitor was employed by a bankrupt to procure his certificate, and he nenlected to obtain the signatures of the commissioners, though it had long before been signed by the proper number of creditors, — he was ordered to deliver up the certificate and affidavits to the bankrupt, and to pay the costs of the application. (4) So, where the solicitor of a bankrupt presented an unnecessary petition, he was ordered to pay 405. costs to the respondent (5); and whenever a petition is wholly unfounded, he will in that case be liable to pay the whole costs of the application. (6) Where, also, in an affidavit of service of a petition, the whole petition was recited verbatim, with a view to enhance the expense, Lord Hardwicke ordered the solicitor who drew it to pay the costs out of his own pocket. (7) So when he makes an affidavit in support of a petition, which contains irrelevant and scandalous matter, the Court will order it to be taken off the file, and will direct the solicitor to pay all costs as between solicitor and client. (8) If a solicitor, also, refuses to deliver up the proceedings to the assignees, and drives them to an application to the Lord Chancellor to obtain them, costs will always in such a case be given against him. (9) Liability, (1) Ex parte Conwaij, 15Ves.62. Ex parte Arrowsvntli, 14 Ves. 209. (2) Ex parte Ward, 1 Rose, 514. (o) Ex parte Green, iG.&J.88. Ex parte Prosser, Buck, 77. (4) Ex parte Hougliton, 1 G. & J. 14. (5") Buck, 315. 3 (6) Ex parte CuUibert, 1 Mad. 78. 80. (7) Ex parte Smith, 1 Atk. 159. (8) Ex parte Simpson, 1 5 Vcs. 476. (9) Ex parte Hardy, 1 Rose, 595. Ex parte Titlcy, 2 Rose, S3. iM 2 Striking improperly a second docket. Concerted commis- sion. Neglect to obtain commis- sioners' signatures to certifi- cate. Presenting an unne- cessary petition. Reciting petition verbatim m affidavit of service. Making a scandalous aOiilavit. Refusing to deliver up the proceed- in lis. tngs. 900 OP THE SOLICITOR. [Ch. 23 Liabilihj, In general, however, a solicitor is not chargeable with ^^- costs unless he be guilty of such an abuse as amounts to a When not contempt ( 1 ) ; and though, upon superseding a fraudulent chargeable commission of bankrupt, the solicitor was charged with costs as well as the other parties, yet he was held not chargeable with the costs of a criminal prosecution which was not under a direction in bankruptcy, and in which he was not a defendant. (2) When With respect to the general liability of an attorney or \vith\-osts solicitor to pay costs in other proceedings at law and in mother equity, — it has been determined in many cases (3), that ^inss^'^' vvhere any party to an action or suit has been obliged to jiay costs, or has inciu'red the liability to pay them through the gross negligence, ignorance, or misbehaviour of his attorney, the Court will (upon motion) order the attorney, in the one case, to pay the costs instead of his client — and in the other case, to reimburse the client the costs which he has paid. But besides this summary liability as to costs, an attorney is also liable to iiis client in an action for damages, for any loss or injury sustained for his misconduct. Thus, where a party is nonsuited in an action, from the cause being called on without the attorney ascertaining whether or not a material witness for the plaintiff had arrived, he is an- swerable to the party in an action upon tiie case for da- mages. (4) So, if he pays into his own bankers the money (1) Ex parte /Ze^wooc/, IsVes. Say. ."11. 2 Bl. 954. Valentine v. G7. Hawkins, 2 Barnes, 5.56. Blcwitt (2) ^\\)M-te Arrowftmith, 14Ves. v. Marsden, 10 East, 237.; and sec 209. Hullock, 485. et seq. vvhere most (31 1 P. Wms. 593. Fow/ce v. of the autliorities are collected. Horahin, 2 Barnes, 3. White v. Wright v. Castle, 5 Meriv. 12. Washington, lBan\es, 302. Arden Robinson \. Elsom, 5B. &A. 661. V. Lamleij, 1 Barnes, 177. Lamb Eutfe v. Rogers, 4 Taunt. 191. De V. Goodenough, 2 Biivnc^,2Q0. Mac- Ronjlgny v. Peak, 3 Taunt. 484. donald v. Giinter, 1 Barnes, 242. Clarke v. Gorman, 3 Tannt. 492. Cave V. Aaron, 5 Wils. 33. 1 Bl. Gruggen y. White, ATavmt. SSI. 376. Ferguson \. Mackrelh, 4T. (4) Recce v. Rigbij, 4 B. & A. R. 37 1 . n. (A). Atkinson v. Burton, 20.2. Sect. 5.] OF THE SOLICITOR, 901 of his client, mixing it with his own, and the bankers be- Liability , come bankrupt, the attorney is in this case liable to make ' good the loss to his client. (1) In like manner, where an When attorney lends his clients money upon security, which even- '^^j^j^ a,j. tually fails through his negligence, he is liable to make good damages. the loss ; — and this in one case, where there was even an acquiescence in the loss for twenty-five years, and a settle- ment and discharge of his account, the attorney having concealed from the client the real state of the transaction, and having omitted to communicate the insolvent state of the parties with whom he had dealt on his client's be- half. (2) So, also, where an attorney (who was em- ployed by a vendee to inspect the title to an estate) omitted to lay before counsel for his opinion a supple- mentary abstract of the vendor's title, (which was delivered to him by the vendor's solicitor after the principal ab- stract — and which second abstract would have induced the counsel to give an opinion against the title, instead of in favor of it) — by which neglect the vendee was obliged to pay a sum of money to a devisee in remainder of the estate, in order to confirm his own title to it, after the execution of the conveyance from the vendor; — the attorney, under these circumstances, was held liable to an action by the vendee for damages occasioned by his negligence. (3) But When not there must be either crassa Jiegligentia, or lata culpa, in the ^'^'^'s. conduct of an attorney, to render him liable to an action for damages. Therefore a mere mistake in a point of prac- tice will not subject him to such an action, and more espe- cially where the point is doubtful, and the meaning of the rule of Court, on which it is founded, is obscure. (4) Where a penal action was brought against a defendant. Fatal vari- on the 2 G. 2. c. 23., for acting as a solicitor m the Court of ^"ce in a \ penal (1) Uobinson v. Wariy 1 Ryan & (4) Laidler v. Elliott, 3 B.& C. M. 274. 738.; and see Pitt v. Yalden, 4 Burr. (2) Macdonald v. Macdonald, 2060. Baikie v. Chajidiess, 3 Camp. iBligh, 315. 17. Russell v. Palmer, 2 Wils. (^5) Ireson v. Pearman, 5 B,&C. 395. 799. 3 m 3 902 OF THE SOLICITOR. [Ch. Liabiliti/, action against an attorney. Attorney may make himself personally liable. Ckanceiy, viz. in the matter of T. S., a bankrupt, the de- fendant not being a solicitor of the said court — and the proof adduced was, that the defendant had been consulted, and was instrumental in the matter of a petition in Bank- ruptcij to the Lord Chancellor by the creditors of T. S. ; — the plaintiff was nonsuited, on the ground that proceedings in Bankruptcy are not proceedings in Chancery. (1) An attorney may also make himself personally liable from his own undertaking — or from dealing with a party in the nature of a principal, so as to induce such party to give him credit instead of his employer, though the bu- siness (at the time of its being transacted) is known to be for the benefit of his employer ; and the question in such a case, to whom the credit is given, is a proper question for the jury to determine. (2) So, where the solicitors of the assignees of a bankrupt, whose lands were distrained for rent, gave the following written undertaking: " We, as so- " licitors to the assignees, undertake to pay to the landlord " his rent, provided it do not exceed the value of the " effects distrained," — it was held, that the solicitors rendered themselves personally liable for the rent. (3) Where also the attornies for the plaintiff and defendant (in a cause which was ready for trial) entered into an agreement, whereby they personally undertook that the record should be withdrawn, that certain things should be done by the plaintiff and defendant, and that costs should be taxed for the defendant in a particular manner, — it was held in this case, that the attorney for the plaintiff was personally bound to pay the costs when taxed in the mode specified (4), and was liable to an action for them. An attorney is bound, also, by the declaration or admission made by his clerk, in the course of any business which the latter is authorized to transact, in the same way as (1) Ford V. Webb, 3 B.&B. 241. (2) Scrnce V. WhUtiiigton, sB. & C. 11.; and see Foster v. Blake- lock, 5 B. & C. 528. (3j Burrell v. Jones, 5 B. & A. 47. (4) Iveson V. Conington, l B, & C. 160. ' Sect. 5.] OF THE SOLICITOR. 90S every principal is bound for the acts of an accredited and Liability, authorized agent. Therefore, where the clerk, in attending _____ the taxation of costs in an action for his employer (the at- torney in the cause), declared, that his master had con- ducted the suit from motives of charity, and would not charge extra costs, — it was held, that the attorney in this case was bound by such declaration, in an action subse- quently brought against him to recover the amount of da- mages, which had been received by him in the former action. (1) (l) Askbourn v. Price, 1 Dow. &R. 48. 3 M 4 INDEX. Abatement ; and see « Death." " Demise of Crown." a commission does not abate suits pending, 124. ABROAD, REMAINING, 47.; and see "Act of Bankruptcy " 2. , PROPERTY; and see " Assigftment," 4. ABSENTING HIMSELF, 51.; and see " Act of Bankruptcy" 4. ACCEPTANCE ; and see " Bills of Exchange." exchange of, before due, not a good petitioning creditor's debt, 97. ACCEPTOR. See « Bills of Exchange." ACCOMMODATION BILL, 97.; and see " Bills of Exchange." proof on, 253. ACCOUNTS, mode of balancing, 723. order for taking distinct accounts under a joint commission, 132. 647. 652. audit of assignees', 326. 498. bankrupt destroying or falsifying renders certificate void, 594. merely being in a slovenly state, no ground for staying it, 584. ACT OF BANKRUPTCY. Nature and Effect of, 40. must not be of long standing, ib. must be committed during or subsequent to trading, ib. during the existence of a debt, ib. in England, 41. before commission is sealed, ib. by every partner, when the commission is a joint one, ib. cannot be by inference or implication, ib. cannot be purged, ib. must not be concerted, 42. but parties and privies estopped, ib. what concerted act not invalid, ib. Enumeration of the several Acts of Bankruptcy, 45. those made up of action and intent, ib. where the intent is immaterial, 44. 1. Departing the Realm, 45. slight evidence of intention sufficient when actual delay, ib, when intention to delay inferred, ib. when motive collected from letters, 46. leaving England for Ireland, a sufficient departure, ib. 906 INDEX. ACT OF BANKRUPTCY — ro?2/;inMef/. DejMrting the Realm. not an act of bankruptcy, where a bond fide intention to return, 46. or going for a laudable purpose, ih. or previously advertising an intention to go abroad, 'ib. alith, when fear of arrest co-operates with the laudable motive, 47. 2. Being out of the Realm, and remaining abroad, ib. how intention to be collected, ib. staying an unreasonable time, ib. leaving no funds for payment of debts, ib. 5. Departing from Dwelling-house, 48. departure must be voluntary, ih. when intention to delay inferred, 48. if intention clear, no actual delay necessary, ib. distance of the departure, or time of absence, immaterial, ib. departure under a groundless fear of being arrested, ib. where the departure not an act of bankruptcy, 50. leaving home to recover a debt, ib. to arrange with a creditor, ib. for any lawful purpose, leaving word where he is gone, ib. or ivhen he shall return, 51. notwithstanding a creditor may be delayed, ib. to avoid harsh language, ib. where the object to avoid a duty, ib. 4, Otherwise absenting himself, 51. withdrawing from the usual place where he is to be found, sufficient, 52. from a temporary abode at a public-house, ib. any place where he usually transacts his business, ib. a merchant from the Royal Exchange, ib. a proprietor from his theatre, ib. concealing himself in a friend's house, ib. not an act of bankruptcy where absence concerted, i6. nor a mere breach of engagement, without an intent to delay, 53. alith, directing servant to make an excuse to creditors, ib. 5. Beginning to keep House, 55. as to necessity of denial to a creditor, ib. must be by previous directions, 54. to a creditor whose debt is due, ib. need not be to the creditor himself, 55. to a tax-gatherer sufficient, ib. to collector of church-rates, ib. ' _ _ immaterial whether creditor calls for payment or satisfaction, ib. insufficient, if creditor calls on other business, ib. to a bailiff^ to avoid the execution of a bail bond, 56. to persons whom the servant believed creditors, ib. where creditor does not ask to see the bankrupt, ib. as to bankrupt being seen when denied, ib. need not be at the party's oivn dwelling-house, ib. when once a creditor denied, j)eriod of delay immaterial, 57. where intention was to be dcniicd to a different creditor, 58. capable of being explained by circumstances, ib. as being engaged with company or business, &c., ib. creditor calling on a Sunday, ib. but not after giving general orders to be denied, ib. where denial by wife, as to proving the fact, ih. INDEX. 907 ACT OF BANKRUPTCY — coniinwerf. Beginning to keep House. denial not the only evidence of keeping house, 59. keeping bed-chamber, with directions to deny, ib. retiring to ii secluded parlour, ib, debarring all access to the house, ib. otherwise secluding himself, 60. as to a banker stopping payn)ent, ib. as to evidence of intention, ib. 6. Suffering himself to be arrested for a Debt not due, G 1 . 7. Yielding himself to Prison, ib. surrender in discharge of bail, not an act of bankruptcy, ib. 8. Suffering himself to be outlaived, ib. outlawry in Ireland not sufficient, ib. must be with intent to defeat or delay creditors, i6 as to eifect of reversal of outlawry before commission, 62. 9. Procuring himself to be arrested, ib. 10. Procuring his Goods, Sfc. to be attached, sequestered, or taken in exe- cution, ib. attachment for mere default or laches not within the act, 63. nor a sequestration of tithes for not repairing a chancel, ib. nor clandestinely conveying his goods away to avoid an execution ib. 11. JSIaking ant^ fraudulent Grant or Conveyance, 63. must be by deed, ib. two species of conveyances within the statute, ib. 1st, those void at common law; 2dly, those void under the bankrupt law, 64. as to conveyances void at law, ib. as to those void under the bankrupt law, ib. former doctrine as to such conveyances, 65. distinction between present and former enactment, id. 1st, where the conveyance is of all the effects, 66. immaterial whether to secure a present debt, or to indemnify a surety, 67. as to exclusion of one creditor, or of part of the effects, 68. where for the benefit of all the creditors, not an act of bank- ruptcy unless commission issues within six months, ib. not, if all the creditors assent, 69. as to a conditional assignment, 70. where one partner omits to execute assignment, ib. when drawn up contrary to instructions, ib. where made in India, ib. 2d, where assignment of only^ja?-^ of the effects, 71. only fraudulent when in contemplation of baokruptcy, ib, cases where such a deed held fraudulent, ib. as to marriage settlement, 73. cases where assignment held not fraudulent, ib. grant or conveyance must be by a bankrupt, not to him, 74. as to parol evidence of it, 75. 12. Making any fraudulent Surrender of his Copyhold Lands, ib. 13. Making any fraudtdent Gift, Delivery, or Transfer of any of his Goods or Chattels, ib. 14. Lying in Prison for twenty-one Days, 76- arrest must be lawful in its inception, 77. 908 INDEX. ACT OF BANKRUPTCY — co^itinued. Lying in Prison for tiventy-one Days. must be for a present debt, 77. not on an equitable contract, 78. for a penalty clue to the Crown, sufficient, ib. relation of imprisonment when surrender in discharge of bail, ib. period of imprisonment must expire before commission, 79. but need not before docket, ib. where a party detained by another creditor, ib. imprisonment need not be in a public prison, 80. must be continuous, ih. after being committed on a criminal charge, ib. how to be computed, ib. 15. Escaping out of prison or custody, Src, 81. immaterial for what amount the arrest was made, ib, escape must not be by implication, ib. 16. Filing a Declaration of Insolvency, 82. I'equisites of this act of bankruptcy, ib. * when commission must be sued out upon it, 83. when docket must be struck, ib. not invalid for being concerted, ib. 17. Fraudulent Composition with Petitioning Creditor, ib. difference between the present and the former law, ib. penalty on the petitioning creditor, 84. 18. Filing a Petition to take the Benefit of the Insolvent Act, ib. requisites of this act of bankruptcy, ib. 19. As to Traders having j)rivilege of Parliament, 85. proceeding by summons, ib. as to evidence admissible to prove this act of bankruptcy, ib. creditors competent to a certain extent, 86. proceeding under a decree or order, ib. ACTION, against commissioners, 164.; and see " Commissioners" 5. by and against bankrupt, 552.; and see " BarJcrupt" VI. " Commission" 6. when it will be directed, 828.; and see " Supersedeas." ACTION, Right of. passes to assignees by conveyance of bankrupt's freehold property, 350. so a right to recover back money lost at play, by the assignment, 386. but does not pass unless assignees interfere, ib. not for a maTe personal tort to bankrufit, ib. 741. qucere, whether for a tort to bankrupt's property, 586. ACTIONS AND SUITS, by and against Assignees, 726. I. Of Suits in Equity, ib. cannot be commenced without consent of creditors, 727. creditors cannot give assignees a general power, 727. must be a special consent for each particular suit, ib. majority in value of creditors present binding, ib. what defendant may plead when assignees sue without consent, ib. when creditors refuse to assent, who may sue, ib. when consent not requisite, 728. ALL the assignees need not be made plaintiffs, ib. bankrupt need not be made a party to the suit, ib. but not a ground of demurrer if he is, ib. if a discovery is prayed, bankrupt must answer, ih. INDEX. 909 ACTIONS AND SUITS — continued. Of Suits in Equity. where a bill of foreclosure filed against a bankrupt and his assignees, 729. bill not sustainable by a creditor after the bankruptcy, ib. where defendants not permitted to refer to their depositions, to put in their answer, ib. death or removal of assignees does not abate the suit, ib. how assignees of one of several partners may sue, 730. 2. Of Actions at Laiv, and herein of Proceedings against the Sheriff, ib. assignees may sue for debts in their own names, ib. except where a bond made to a trustee in trust for l)ankrupt, 731. one of the assignees may make an affidavit to hold to bail, ib. when they must declare as assignees, ib. how assignees may declare on a separate contract of one bankrupt, ib. how assignees under three separate commissions must be described, ib. what is a variance in their description, 752. nonjoinder of an assignee ground of nonsuit, ib. need not set forth commission in declaration, ib. may sue in the debet and detinet, ib. where they may bring either trover or assumpsit, ib. distinction between these two forms of action, 73". when they have once elected, cannot bring the other action, ib, cannot treat the same transaction as a contract and a tort, 734. where trover will not lie, ib. where not against vendor of goods for non-delivery, 735. where trover will lie, ib. when necessary to prove a demand and refusal, 736. as to admission of proceeds of goods in an account stated, ib. as to evidence against assignees of a joint act of conversion, 737. when assumpsit will not lie by assignees, ib. assumpsit, though affirming the contract, does not admit fraud, ib. lies by assignees on contract of bankrupt after bankruptcy, 738. does not lie when no money actually received, ib. as to counts for money lent by plaintiif «« assignee, 739. mode of declaring in actions by assignees, ib. plea of an action by bankrupt pending, bad, 739. in covenant for rent, assignees not obliged to set forth their title, 740. debt on simple contract will not lie by assignees against an executor, ib. when a retainer may be pleaded to debt on bond, ib. profert need not be made by assignees in debt on a specialty, ib. ejectment bad on a demise before the bargain and sale, ib. in trespass against assignees, what is not a sufficient defence, 741. what must be proved in an action against them for the proceeds of a bill specifically appropriated, ib. assignees cannot sue for a jjersonal tort to the bankrupt, 586. 741. garnishee not liable to action by assignees when money duly attached, 742. where debts under 40*. how assignees must sue, ib. assignees barred by statute of limitations, ib. need not allege that defendant had notice of act of bankruptcy, ib. action not abated by the death of an assignee, 743. when a removed assignee must join in an action, ib. but nonjoinder in trover can only be pleaded in abatement, ib. 910 INDEX. ACTIONS AND SUITS — continued. Of Actions at Lavj, Sfc. new assignee may sue on a judgment recovered by former assignee, 743. removed assignee liable to others for money had and received, ib. when an assignee not permitted to defend an action, ib. when assignees cannot sue for a chose in action, ib. as to payment of money into Court in actions by assignees, 744. assignees not restrained from bringing fresh action after nonsuit, ib. where one of several partners bankrupt, who must be joined as plain- tiffs, ib. trover not maintainable by assignees, where goods delivered bona. fide by solvent partner, (b. where assignees cannot sue for a joint debt and separate debt in the same action, 745. but this irregularity cured by verdict, ib. mode of declaring by assignees where debt accrued between the acts of bankruptcy of the different partners, ib. when assignees may maintain trover o gainst the sheriff , 746. cannot have trespass before assignment, ib. may have trover either against the plaintiff suing out the execution, or the vendee of the goods, ib. what amounts to a conversion by the sheriff, 747. when sheriff safe from claims of assignees, ib. ; and see " Sheriff ^ 3. Effect of the Bankruptcy on previous Suits and Actions, 751. suits in equity not absolutely abated by plaintiff's bankruptcy, ib. when assignees must file a supplemental bill, ib. present practice when defendant moves to dismiss the bill, 752, 755. when money ordered to be paid to assignees without a supplemental bill, ib. as to bills previously filed by bankrupt for an injunction, 752. when assignees liable to costs as defendants on a supplemental bill, 753. in actions at law defendant may plead the bankruptcy in bar, ib. when bankruptcy no abatement of the action, 754. where the parties were at issue before the bankruptcy, ib. safest course for assignees to bring a fresh action, ib. after judgment, assignees may proceed by scire facias, ib. except where defendant brings a writ of error, 755. where assignees may take out a sci. fa. for money levied after the bankruptcy, ib. where the previous proceedings by sci. fa., a fresh sci. fa. need not be taken out by assignees, ib. fi. fa. not amendable where defendant becomes bankrupt after the execution of it, ib. ADJUDICATION, 114. ISS.; and see " Opening Commission." a matter of right in regard to petitioning creditor, 114. as to the proceedings when time for enlarged, 122. ADJOURNMENT, of the choice of assignees, 315. of the bankrupt's last examination, 515. ADMINISTRATOR. See " Executor." ADVERTISEMENT; and see " Commission," 7. of the party being adjudged a bankrupt, 121. 141. when it will be suspended, ib. 806. INDEX. 911 ADVOWSON, passes to assignees, 360. AFFIDAVIT; and see " Commission," 1. of petitioning creditor cannot be resworn, 108. irregularity in, no ground at law for invalidating commission, 109. as to statement of the debt, ib. not evidence of debt in any subsequent proceeding, 110. should not be made with precipitancy as to act of bankruptcy, ib. should agree with the petition, ib. supplemental affidavit when permitted. 111. when commissioners may make, in answer to a petition, 168. when proof may be made by, 104. of bankrupt upon applying for his certificate, 575. of service of petition when must be filed, 590. 841. of the truth of facts alleged in a petition, 590. general order as to filing, ib. in answer, when must be filed, 591. to hold to bail may be made by 07ie assignee, 731. of service of petition for a sujiersedeas, 824. office copies of must be taken, 841. as to filing, ib. when should be sworn, ib. before whom, 842. should not be filed after the petition day, ib. except when in support of a motion, ib. should be pertinent to matter of petition, ib. when may be amended, ib. when affidavit in reply may be filed, ib. when receivable before the Master, 843. when scandalous, petition dismissed with costs, 855. AGENT; and see " Factor," " Broker," " Banker." when liable to bankruptcy, 26. of attorney may prove and retain papers upon which he has a lien, 211. nature and extent of his lien, 872. his bill may be referred to be taxed, 884. need not deliver his bill to support a right of action upon it, 895. when sale of goods by valid to bind the principal, 465. when may sign a petition for his principal, 838. ALIEN ENEMY, where he may claim a debt, 308. trading under a licence may stop goods in transitu, 461. ALLOWANCE, to bankrupt under the commission, 544, ; and see " Bankrupt" V. 3. of certificate by Lord Chancellor, 575.; and see " Certificate" 3. ALUM, making of, whether a trading or not, 31. 36. AMENDMENT, when commission may be amended, 119. when an affidavit, 843. AMENDS, when commissioner may tender, 165. ANNUITIES, former practice as to proof of, 227. provision of the new statute, 228. 912 INDEX. ANNUITIES — continued. creditor may prove for the value of the annuity, 228. mode of ascertaining the value, ib. where annuity void, as to proof of consideration, 229. deposit of deeds for securing annuity not within the annuity act, 230. when annuities granted by bankrupt for inadequate consideration, ib. annuity creditors upon the same footing as other creditors, ib. cannot sue a surety without previously proving, ib. nor the bankrupt after he has got his certificate, ib. ;node of proceeding when annuity charged on lands, 231. engagement to pay annual interest cannot be proved as an annuity, ib. whether arrears subsequent to the commission may be proved, ib. how a surety may discharge himself, ib. when he may stand in the place of the annuitant, 232. entitled to credit for dividends received by the annuitant, ib. when surety obliged to pay any deficiency after bankrupt has got his certificate, whether bankrupt discharged, ib. whether annuity limited to i^ersonal enjoyment vests in assignees, 391. consideration for discharged by certificate, 608. APPEAL, lies from commissioners to great seal, 147. 182. 196. petition of from Vice-Chancellor must be signed by counsel, 844. APPRENTICES, former practice when master became bankrupt, 213. discharged from indentures now by master's bankruptcy, ib. proportionate part of premium to be returned, ib. ARBITRATION, submission to not revoked by a commission, 124. ARMY AGENT, not liable to bankruptcy as a banker, 22. assignees of bound to render account of unclaimed balances, 496. ARMY, pav of officer not assignable, 359. ARREST, suffering for a debt not due an act of bankruptcy, 61.; and see " Act of Bankruptcy "^6. so procuring himself to be arrested, 62.; and see " Act of Banhruptcy" 9. of witness attending commissioners amounts to a contempt, 160. bankrupt's privilege from, 535. ; and see " Bankrupt," V. 1. mode of proceeding to be discharged from before certificate, 542. after certificate, 621.; and see " Certificate" 8. privilege of solicitor from, 870. ASSESSOR. See " Taxes." ASSESSED TAXES, Hen of the crown for, 495. ASSIGNEES, 1. Of a 2}rovisional Assignee, 312. when may be appointed, ib. object of the appointment, 142. 312. if no necessity for, costs of the assignment will not be allowed, 313. copyholds should be excepted in provisional assignment^ ib. 2. Of the Choice of Assignees, 315. must be chosen at second meeting, 314. by what creditors, ib. 7NDEX. 913 ASSIGNEES — con^mMed Of the Choice of Assignees. power of rejection by commissioners, 514. three commissioners must be present at the choice, ib. election not to be postponed without substantial reason, ib, when to be adjourned under the general order, 315. requisite qualifications of assignee, ib. not necessary that he should be a creditor, ib. as to creditor electing himself assignee, 316. bankrupt cannot be an assignee, ib. when creditors may prove in order to vote, ib, how a corporation vote, 517. receiver has no right to vote, ib. joint creditors may prove under a separate commission to vote, 319. grounds of application for a new choice, ib. where one of several assignees rejected, choice set aside altogether, 318. whether bankrupt may canvass for particular assignees, ib. assignment should be entered of record, ib. 5. Of the Interest which Assignees take under the Assignment, 520. no mterestbefo)'e assignment, ib. not bound to take property of doubtful value, ib. trust property does not pass to them, ib. bound by the same equities as the bankrupt, 321. can only take what bankrupt conscientiously entitled to, ib. where interest in goods delivered vests, though bankrupt's intention fraudulent, ib. where an assignee dies leaving an infant heir, 553. 4, Of the Nature of their Trust, 522. 1 . Of their general Authority/, Duty, and Liability, ib. bound to satisfy themselves of the validity of commission, 322. if they act, must consider it valid, 323. powers vested in bankrupt may be executed by assignees, ib. authority limited to the purposes of their trust, ib. power to compound debts, and refer to arbitration, 324. caution to be observed in this respect, ib. to commence suits in equity, ib. to call meetings of creditors, ib. operation of release by one assignee, ib. whether receipt of one assignee binds the other, ib. one of several assignees may be a petitioning creditor, 88.; and execute the bond, 111. no right to charge for business done by themselves as account- ants, 325. or for travelling expences, ib. engaging in new adventures with a solvent partner, ib, entitled to custody of the proceedings, ib. and nomination of the solicitor, ib. when liable for the acts of an agent, 326. only answerable for their own acts, ib. bound to keep correct and distinct accounts, ib. to produce books, &c. when required by the commissioners, 327. compelled to account by petition, ib. dying before accounting, commissioners considered as specialty cre- ditors, ib. when bound by a contract of the bankrupt, 328. when liable for goods ordered by bankrupt, ib, 5 N 914 INDEX. ASSIGNEES — continued. Of their general Authority, Duty, and Liability. for costs and witnesses' expences, o28. to the solicitor and messenger, 329. 175. bound to contribute for expences of joint acts, ib. bound to submit to examination of commissioners, 159. creditor chosen merely an assignee no estoppel of his suit, 189. when competent as a witness, 802, 2. Of their Duty and Liability in collecting and disposing of the BanJc- rupt's Property, 5.30. personally liable for wrongful seizure of property, ib. when assignees under separate commission reimbursed out of joint estate, ib. bound to make a speedy sale, 351. not restricted to any particular mode, ib. as to sale before commissioners, 552. when biddings may be opened, ih. sales free from auction duty, ib. bound to make a good title, 333. must give copies of title deeds, 554. bankrupt may be ordered to join in conveyance, ib. restricted from purchasing bankrupt's property, ib. when this restriction will be relaxed, 336. but held to the bargain, when contract beneficial, 355. from taking a lease, 355. or purchasing dividends of a creditor, 536. how money should be lodged until a dividend, 557. may be invested in the purchase of exchequer bills, 558. penalty on assignee retaining money in his hands, ib. where one assignee absconds, order as to checks on the Bank, 540. 5. When an assignee becomes banki-iqjt, 540. what may be proved under his commission, ib. solvent co-assignee the proper person to prove, ib. bankrupt assignee's estate not entitled to dividend, until when, ib. where two of three assignees bankrupt, what the solvent one may prove, 341. when certificate of bankrupt assignee does not protect his future effects, ib. bankrupt assignee must be removed, ib. 6. Of the Removal of Assignees, 542. Lord Chancellor may vacate any conve)'ance or assignment, ib. and order commissioners to execute new one, ib. grounds for the removal of an assignee, 343. bankrupt cannot alone petition for such removal, 344. may be removed before assignment, ib. who to execute assignment to new assignee, ib. where one of several assignees refuses to act, ib. liability of removed assignee to action by remaining assignee, ib. mere order for removal does not divest the legal estate, 345. where assignee applies to be removed, ib. what he must state in his affidavit, ib. must pay the costs of his removal, except when, ib. Actions and Suits against. See " Actions." ASSIGNMENT. Part I. as to freehold property generally, and the mode of con- veyance, 348. how to be conveyed to assignees, ib. as to property in the colonies, ib. INDEX. 915 ASSIGNMENT — cow^irtM^rf. AS TO FREEHOLD PROPERTY, &C. commissioners have only a power, not an estate, 548. bargain and sale must be enrolled without delay, 349. does not relate back to act of bankruptcy, 350. operates upon estates only of which bankrupt actually possessed, ih. not upon future property, ib, but passes a vested contingent interest, ib. and a right of action, ib. lands not liable to a statute or judgment, unless execution taken out when, 351. as to lands of which bankrupt was seised in joint-tenancy, ib. as to conveyance of estates tail, 352. where remainder-man in tail bankrupt, assignees take only a base fee, ib. devise of lands not revoked by bankruptcy, ib. where an assignee dies leaving an infant heir, 555. conveyances more than two months before the commission valid, ib. Lord Chancellor may order bankrupt to join in any conveyance, ib. 2. Of Copyholds, 354. 3. Of Mortgages, 556. 4. Of Offices, 559. 5. Of Advoivsons, 560. 6. Of Reversions, 561. 7- Of Powers, ib. 8. Of a Possibility, or contingent Interest, 565. 9. Of a voluntary Conveyance, 565. 10. Of 071 executory or beneficial Contract, 567. 11. Of the Estate of the Wife, and Property settled by the Bankrupt upon his Wife and Children, 370. N.B. For the particulars under these different heads, see the re- spective Titles in the Index. Part II. as it affects the personal property, 382. 1. Of the personal Property in general, ib. all present and future property before certificate passes to assignees, 585. lottery ticket turning up a prize, ib. property possessed by other persons in trust for bankrupt, ib. assignment exempt from stamp duty, ib. must be entered of record, ib. stock may be transferred to assignees by order of the commissioners, ib. where claimed by other parties, how ordered to be transferred, 584. assignees not entitled to any part of the wearing apparel, ib. penalty on persons concealing bankrupt's effects, ib. reward for discovering them, ib. 2. Of Debts and Choses in Action, 585. all debts vest in the assignees, ib. a bond to a trustee for the bankrupt, ib. a heriot or relief, ib. a legacy given to bankrupt before certificate, ib. except where bankrupt owes testator a larger sum, ib. a bill deposited by bankrupt for a specific purpose, 386. a right of action to recover back money lost at pla}', ib. or money paid on a corrupt agreement, ib. but right of action does not pass unless assignees interfere, ib. nor for a mere personal tort to the bankrupt, ib. queers, whether for a tort to the bankrupt's property, ib. 3 N 2 916 INDEX. ASSIGNMENT — continued. Of Debts and Glioses in Action. money in the hands of sheriff under an execution in tort, 587. mode of proceeding to recover it, ib. remaining instalments of premium payable by bankrupt's partner, 388. compensation under the West India Dock Act, ib. assignees have no power to assign the good-will of bankrupt's business, so as to bind him, ib. copyright of a newspaper passes to assignees, ib. ' quccre right to a newswalk, 389. patent right for an invention passes, ib. so a policy of insurance on bankrupt's life, ib. 3. Of Leases and Annuities, and of Forfeiture upon Alienation, 390. N. B. — For particulars under this head, see titles, " Lease." " An- nuities." 4. Of Property abroad, 399. passes to assignees, ib. property in Ireland, Scotland, and the Colonies, ib. where a creditor attaching money abroad liable to refund, ib. when not so liable, ib. where the attachment complete before the act of bankruptcy, 401. where property duly recovered by process of local law, ib. as to bank shares in the French funds on which a creditor had a lien, ib. courts here will favour the claim of foreign assignees, 402. 5. Of Property in the Possession, Order, or Disposition of the Bankrupt as reputed Owner, 402. See " Eeputed Owner." 6. Of Property fraudulently delivered in Contemplation of Bankruptcy, 439., and see " Fraudulent and voluntary Conveyance.^' voluntary delivery of property in preference of a creditor void, ib. so a transfer, when insolvent, to any person without consideration, 440. except transactions more than two months before commission, ib. or a gift o? money to a child for its maintenance, ib. stock within the description "goods and chattels," 441. money advanced to a lessee to procure the renewal of a lease, 441. what acts amount to a fraudulent preference, 442. delivery of goods under a pretended sale, ib. or an absolute sale with an intention to prefer, ib. where delivery not in the usual course of trade, ib. or the accustomed mode of dealing between the parties, 443. assignment of effects to a creditor, when deemed voluntary, ib. when a payment, ib. when not considered voluntary, 444. where the creditor gives up a lien, ib. payment of rent by the bankrupt to his landlord, ib. payment in the regular course of trade or dealing, ib, in pursuance of a previous agreement, 445. transfer of property on the eve of bankruptcy, void, ib. though appropriation of it previously contemplated, ib. aliter, property restored by bankrupt, which he had obtained under false pretences, 446. or property delivered under a threat, or an apprehension, of legal process, ib, unless the delivery does not redeem bankrupt from any present difficulty, 447. when a voluntary transfer good, ib. INDEX. 917 ASSIGNMENT — continued. Of Projjerty fraudulently delivered. bankrupt contemplating that his trade will cease, without contemplat- ing bankruptcy, 448. contemplating merely an intended deed of composition, ib, where the property is given up at a meeting of creditors, ib. 7. Of the Effect of the Assignment upon Goods in transitu, 449.; and see " Stoppage in transitu." 8. Of Goods sent, but not accepted; and of Goods ordered, but not delivered, 470. goods once delivered by a bankrupt on a precedent consideration do not pass by the assignment, ib. nor goods consigned to a bankrupt who declines to accept them, ib. as where contract of sale is rescinded before goods arrive, 471. though the countermand not received by the vendor until after the actual delivery, ib. provided it is made by the bankrupt before, ib. but return of goods must be made instanter, 472. for after once accepted the vendor cannot afterwards take them back, 475. nor when the sale is once recognized by the vendor, ib. bankrupt must have right oi possession as well as of property for goods to pass, ib. though part of the price is paid, 474. or he has advanced money on account equal to the value, ib. so goods not forwarded or paid for pass to assignees of the manufac- turer, though purchaser has accepted generally for a larger amount, 475. if acceptance not appropriated to the payment of the price, ib. but where it is, the property passes to purchaser after any act of transfer, ib. 9. Of Goods subject to a Lien, 476. ; and see " Lien." 10. Of the Effect of the Assignment upon the Claims and Process of the Crown, 490. ; and see " Crown Extent." " Excise." ASSIGNMENT OF THE BOND TO THE CHANCELLOR, 134.; and see " Commission" 6. of a debt to a creditor, operation of, 185. ASSIGNMENT FRAUDULENT. an act of bankruptcy, 63.; and see " Act of Bankruptcy," 11. ASSUMPSIT; and see " Actions," 2. when assignees may bring trover or assumpsit, 132. when assumpsit will not lie, 737. when it will, 738. ATTACHMENT FRAUDULENT, an act of bankruptcy, 62. ; and see " Act of Bankruptcy" 10. ATTACHMENT, against bankrupt for not paying money into Court, where it does not determine the creditor's election, 191. by joint creditor in Mayor's Court, effect of under a separate commis- sion, 633. the like of an attachment in the West Indies, 634. ATTAINDER, does not prevent a commission of bankruptcy, 22. but prevents a bankrupt from petitioning, 817. 5 N 3 918 INDEX. ATTESTATION, of commissioners' signatures to certificate, 573. of petitioner's signature to a petition, 588. 837. 838. et seq.; and see " Petition." ATTORNEY. See " Solicitor" AUCTION DUTY, does not attach on sales of a bankrupt's property, 201. #««•. J3^. AUDITING ACCOUNTS, 526. 498. AUDITA QUERELA, when bankrupt entitled to relief under, 622. AUTHENTICATION, of petition whether equivalent to attestation, 839. AUXILIARY COMMISSION, 135.j and see " Commission," 5 AWARD. debt on will support a commission, 91. may be proved, 235. but not if made after the bankruptcy, ib. AWARDING COMMISSION. distinction between awarding and issuing commission, 114. B BAIL, discharged by proof against the principal, 189. debt may now be proved against, though not fixed till after their bank- ruptcy, 287. may prove debt against principal, though they do not pay the debt till after the commission, 292. or may stand in the place of the creditor, if he has proved, 291. bankrupt not protected from arrest by, 541. as to enlarging time for his surrender in discharge of, ib. when not discharged by the certificate of their principal, 601. aliter, if certificate allowed before they are fixed, ib may in that case apply for an exoneretur, 602. when an issue will be granted, ib. in error not entitled to relief, ib. when not discharged by bankrupt's certificate under a second cc«n- mission, ib. how affected by bankrupt's omission to plead his certificate, 620. BAILEE. of goods for a special and limited purpose not a case of mutual credit, 707. BAKER. may be a bankrupt, 27. BALANCING ACCOUNTS, 724.; and see « Set-off," 7. BANK-STOCK. buying and selling not a trading, 57. BANKER. liable to bankruptcy, 22. stopping payment does not alone amount to an act of bankruptcy, 60. commission against should be executed speedily, 122. proof on a special agreement between two banking-houses as to exchange of their respective notes, 26 1 . short hills do not pass to his assignees, 429. when indorsed by the customer, and disposed of by the banker con- trary to good faith, ib. INDEX. 919 BANKER — contimied. order for delivery of against provisional assignee, 435. bills discounted with pass to his assignees, ib. so bills taken on exchange of acceptances, 430. except when consideration fails, ib. when bills paid in generally, must be given up by assignees, ib. as to his authority to discount, 431. when bills entered short, must be given up, ib. aliter, when paid in as cash, ib. but whatever way paid in, if entered as bills, do not pass, ib. notwithstanding they are indorsed by the customer, 432. indorsement prima facie evidence of discount, ib. as to right to retain bills arising from a general, or a limited, authority to discount, ib. holders of outstanding acceptances have no strict claim to the short bills, 453. but Lord Chancellor will render their claim available, 434. except when, ib. as to balance of stock appropriated to answer a particular claim, 435. has a general lien 482. payments by, when not protected, 677. where entitled to rehef on a bill of interpleader, 684. solicitor cannot act as banker, 866. BANKER'S NOTES, a good petitioning creditor's debt, though bought in for less than their amount, 90. may he proved under commission, 262. how proveable when bought up after the bankruptcy of the bankers, 251. BANKER'S CHECK, not q/" i/se^ evidence of a petitioning creditor's debt, though paid, and in hands of drawer, 90. BANKRUPT. derivation of the word, 1. how considered by the old law, 2. how treated by the existing law, lb. number of statutes respecting, 4. as to power of commissioners over, 148.; and see " Commissioners" 2, I. Duties of, and of his Surrender, 507. penalty incurred by not surrendering, ib. when in prison, may be brought before commissioners, 508. Lord Chancellor may enlarge the time for surrender, ib. may surrender before the forty-second day, 509. consequences of omission to surrender, ib. must be wilful to render it a felony, ib. when a fresh meeting will be ordered to take surrender, ib. or commission superseded to prevent a prosecution, 510. when Lord Chancellor will not interfere, ib. how order for fresh meeting to be construed, 511. petition to enlarge time must be supported by affidavit, ib. disability of bankrupt before surrender, ib. must deliver up his books and papers, 512. and attend assignees to make out his accounts, ib. allowance for such attendance, 513. in case of default may be committed by commissioners, ib. 3 N 4 920 INDEX. BANKRUPT — cordimed. Duties of, and of his Surrender. duty to attend the commissioners when required, 515. II. Of the Banh-upfs Examination, 513. required to discover all his estate and eiFects, ib. penalty in case of concealment or embezzlement, 514. as to his refusal to answer questions, ib. may be examined on oath by commissioners, ib. and imprisoned if he does not fully answer, 515. commissioners may adjourn the examination, ib. bankrupt may inspect his books, &c. ib. must deliver in a written statement of his estate and effects, 516. as to power of Lord Chancellor to limit the examination, 517. as to compelling an answer from bankrupt which would criminate or prejudice himself, 150. 517. assignees have no power to stop the examination as to certain points, 518. III. Of the Bankrupt's Answers, when general answers will not be sufficient, 519. Perrot's case, ib. when bankrupt may answer " to the best of his remembrance and belief," 520. a positive answer not necessarily a satisfactory answer, 522. general rule as to sufficiency of answer, 523. as to answering a question embodying a fact, 524. commissioners cannot delegate their authority to take bankrupt's answer, ib. IV. Of committing the Bankrupt, and of the Remedies for his Discharge, 525. both the question and answer must be specified in the warrant, ib. the Court may look at the whole of the examination, 526. 532. whether commissioners should be influenced by extrinsic evidence, ib. what is a cause for commitment, ib. what not, ib. where there should be a supplemental warrant, 528. where bankrupt refuses to be sworn, ib. warrant should pursue the words of the statute, ib. what is a bad conclusion of it, ib. what the proper one, 529. whether a commitment bad in part is bad in toto, ib. as to time of making the commitment, 530. when answer of bankrupt would only tend to criminate himself, com- mittal good, ib. when bankrupt absolutely refuses to answer, ib. bankrupt may apply for mandamus to commissioners to be further examined, ib. remedy for his discharge by habeas corpus, ib. when notice should be given of the application, 531. after issuing habeas corpus, commissioners may make a fresh war- rant, ib. when bankrupt will be discharged, 151. 532. affidavits in explanation of his conduct not receivable, ib. when warrant insufficient inform merely. Court will recommit, ib. except when, ib. what are mere matters oi form, 555. when commissioners not liable for committing bankrupt, ib. INDEX. 921 BANKRUPT —eo7itim(ed. Of covimitling the Bankrupt, ^-c. what bankrupt should do when desirous to complete his examin- ation, 534. penalty on gaoler for suffering bankrupt to escape, ib. V. Of his Rights and Privileges, 535. 1. Of his Privilege from Arrest, ib. for what period so privileged, ib. when he does not lose it by refusing to surrender, 536. if in prison not protected from subsequent detainers, ib. but where arrest illegal, all detainers bad, 540. until actual surrender, privilege confined to going to surrender ib. if examination enlarged, for what period privilege continues 537, where bankrupt attends without a summons, 558. where commissioners adjourn sine die, ib. where time for surrender expired, but order obtained, ib. how protected after surrender, if summoned by commissioners, 559. on attending a petition for leave to surrender, ib. privileged, whether the debt is proveable or not, ib. whether upon an attachment under an award or a decree ib. how privileged when an action directed to try the bankruptcy, ib. surrender no protection from being retaken after an escape, 540. when privileged from arrest at suit of the Crown, ib. not protected from being taken by his bail, 541. as to enlarging time for surrender in discharge of his baU, ib. mode of proceeding to be discharged from arrest, 542. entitled to immediate discharge, when in custody at suit of a cre- ditor proving, 184. 542. or when creditor petitions to prove, 545. 2. Of his Right to Maintenance, 543. only entitled to it until he passes his examination, ib. not justified in appropriating, of his own authority, any part of his effects for that purpose, 544. 3. Of the Bankrujji's Allowance under the Commission, 544. when he pays 10s. in the pound, 5 per cent., ib. when 12s. 6d., 1l. \0s. per cent., ii, when 15*., 10 per cent., ib. when he does not pay 10s., discretionary, ib. whether bankrupt entitled to allowance before a final dividend 545. qiuBre, if estate only just sufficient to pay 10s. in the pound, ib. as to refunding allowance, when once received, ib. must obtain his certificate before the dividend to claim allowance 546. when the right to the allowance vests, 546. allowance free from creditor's right to interest, ib. under second commission, ih. to partners under a joint commission, ib. one partner now entitled to, though the other has not ob- tained his certificate, 547. where bankrupt deprived of all right to, 548. 4. Of his Right to the Surplus, 548. assignees required to account for the surplus, ib. but creditors first entitled to interest, ib. bankrupt may inspect and impeach the accounts of assignees 549, when surplus of real estate goes to the heir, ib. 922 INDEX. BANKRUPT — continued. Of his Right to the Surplus. of personal estate when to the next of kin, 549, when real estate, part sold, and part contracted to be sold at bankrupt's death, whether heir or executor entitled, 550. when bankrupt a partner in two bankrupt firms, how surpkis to be apphed, ib. where the solvent partner entitled to an account of the surplus, 551. 5. As to Right of uncertificated Bankrupt to acquire and retain Property, ib. may claim all property not claimed by assignees, ib. as to property acquired by his personal skill and labour, ib. creditors, not being assignees, have no right to take after-acquired property, 552. when may apply for certificate under second commission, 584. VI. Of Actions by and against an uncertificated Bankrupt, 552. when he may bring trespass or trover against his assignees, ib. when estopped from bringing an action, 553. what is not an estoppel, 554. 615. not permitted to sue his debtors, to try the validity of the commission, 555. may sue for after-acquired property if assignees do not interfere, ib. but cannot sue any one acting by their authority, ib. or one who obtains a surrender of their interest, 556. or who is required by them to pay the debt to them, ib. cannot be discharged under- Insolvent Act until three years in cus- tody, 612. when he may sue his assignees for work and labour, ib. or a creditor for receiving after a composition the full amount of a bill, ib. may sue as a trustee for a debt assigned before his bankruptcy, 557. when liable to costs of an action, ib. when required to give security for costs, 557. when proceedings by will be stayed till costs of a former action paid, ib. mode of relief when action brought against bankrupt for a debt proved, 558. where venue may be laid in an indictment against, ib. what is material evidence, ib. what is not a variance, ib. VII. Of Suits in Equity by and against an uncertificated Bankrupt, 559. where bankrupt may sue in name of his assignees, ib. where demurrer allowed for want of necessary allegations, 560. where on the ground of the proper proceedmg being by petition, iA. where a bill retained until proper parties are added, ib. where suit entertained, notwithstanding a plea of bankruptcy, ib. when a bankrupt may petition in forma 2)au2:)eris, 561. cannot in general be sued in equity, ib. except where bill prays a discovery, ib. N. B. — As tt) the competency of the bankrupt and his wife as wit- nesses, see " Evidence," 6. BANKIIUPTCY. what persons liable to as traders, 20. peers, ib. members of the House of Commons, ib. clergymen, qucsre, ib. public officers, ib. INDEX. 923 BANKRUPTCY — continued. who not liable, infant, 20. married woman, 21. unless a separate trader according to the custom of London, 21. as to a lunatic, 22. a person attainted, ib. proceedings in distinguished from proceedings in the Court of Chan- cery, 9. act of. See " Act of Banhruptcy" BARGAIN AND SALE, of bankrupt's real estate by commissioners to assignees, 348. should be enrolled without delay, 549. enrolment has no relation back to the date in bankruptcy, ib. therefore extent binding before enrolment, though issued after the date, 695. one case where bargain and sale before bankruptcy held good, though not enrolled till afterwards, ib. does not relate back to the act of bankruptcy, 550. only operates on estates of which bankrupt possessed at the date, ih. but passes a vested contingent interest, ib. and a right of action, ib. BARON AND FEME. See « Wife." BARTER, of goods a good payment, 676. BASE FEE, in what case assignees take, 352. BASTARDY BOND, bankrupt's liability on not discharged by certificate, 601. BIDDINGS, at sale, when they may be opened, 552. BILLS OF EXCHANGE AND PROMISSORY NOTES, drawing and re-drawing when a trading, 29. when not, 38. taking a bill on acceptor who has no effects, does not prevent creditor from suing out commission on original debt, 90. note made before, though indorsed after, bankruptcy, a good petitioning creditor's debt, 96. so a bill not due, without deducting discount, ib. aliter, on an exchange of acceptances, 97. so a bill, though paid by acceptor after the drawer's bankruptcy, 97. aliter, if it is an accommodation bill, ib. when necessary to prove presentation and notice of dishonour, ib. drawer not estopped by proof of the holder from suing acceptor, 187. As to Proof of under the Commission. holder may prove full amount against all parties, 259. except against the party from whom he took the bill, ib. can then only prove the actual balance, ib. after receiving part can only prove for the balance, 240. or after a declaration of dividend under another commission, ib. but if part received after proof, entitled to a dividend on the whole, 241. where in one case permitted to prove the whole after payment of part, ib. 924; INDEX. BILLS OF EXCHANGE AND PROMISSORY NOTES — continued. As to Proof of under the Commissio7i. bills, though not due, may be proved, 241. though discounted may be proved in full, 262. so bankers' notes bought in for less than their amount, ib. when charges of protest proveable, ib. consequential damages, ib. re-exchange, 26.3. interest, ib. Objections to Prouf 242. illegal consideration, ib. statute of limitations, ib. ■when another bill given in payment, ib. compounding with acceptor, 243, 510. unless a surety, 243. want of notice of dishonour, ib. bill payable to a fictitious payee in what case, 244. on a contingency, 245. want of proper stamp, ib. when not indorsed, as against whom, ib. when an unindorsed bill considered a purchase, and when a pledge, 247. when a jmrchase, neither bill, nor original debt, can be proved against the person transferring it, ib. when a 2}ledge, original debt proveable, if bill turns out bad, ib. but if of any value, bill should be sold, and creditor prove for balance, 248. when bill only fo7'gotte7i to be indorsed, may be indorsed afterwards, ib. when not accepted by writing on the bill, 246. except in case of afu7-eigti bill, ib. when bill lost, proveable on giving an indemnity, ib. when object of transfer merely deposit, holder can only prove for the real debt due, 249. when holder in proving excepts a bill as a security, estopped from after- wards saying it was not a security, ib. indorsement 2}ri'nd facie evidence of absolute transfer, 250. as to bills indorsed by agent for the purpose of being discounted, ib. indorser may prove against acceptor, though bill taken up by him after the comviissio7i, ib. but not a party who was not liable on the bill before the com- mission, ib. but i7idorsee may prove a bill indorsed after the commission, 251. so bankers' notes, though bought up after his bankruptcy, may be proved by the holder, ib. difference as to rights of holder, whether bill negotiated before or after it is due, ib. after proof of several bills, if one paid in full, must be deducted from proof, 252. when bill taken up for the honor of the drawer can be proved against acceptor, 253. Accovunodation Bills, when proveable, ib. not between the original parties, ib. but bona, fide holder not affected by original want of consideration, ib. fl/ito-, if holder, when he took it, kneiu'xi was a mere accommodation bill, ib. INDEX. 925 BILLS OF EXCHANGE AND PROMISSORY NOTES — continued. Accommodation Bills, luhen proveable. except where drawn by a third person who has effects in the hands oi one of the parties, 255. party lending his name on a bill substantially a surety, ib. when entitled to benefit of holder's proof, 254. former disability attached to him, ib. but may now prove, though he pays the bill after the commission, ib. when acceptor treated as a surety, 255. when entitled to prove against drawer, though not paying bill till after drawer's bankruptcy, ib. surety paying off a note after holder has received a dividend, holder bound to account, 256. Cross Bills, when proveable, ib. former practice as to proof, ib. rule now, that party applying to prove must first take up his own bills, 257. in an exchange of acceptances for the same sum, no proof allowed of any payment on the creditor's own acceptance, ib. what is evidence of one bill being given in consideration of the other, ib. one party paying his own acceptance may prove the counter one, 258. when both parties bankrupt, and bills proved under both commissions, dividend paid by one estate not proveable against the other, ib. whether proof to be made by the creditor estate on the debtor estate of the bills, or of the cask balance, ib. where cash balance alone proveable, 259. where cash balance not proveable, 260. giving an acceptance proveable against the acceptor, a good consideration for a bill, 261. proof on a special agreement between two banking houses as to exchange of their respective notes, ib. As to reputed ownership in, bill deposited bt/ bankrupt with a third person for a particular purpose passes to the assignees, 386. so a bill deposited with a bankrupt for the like purpose does not pass, 741. in an action against them for the proceeds, whether necessary to prove that they knew of the specific appropriation, ib. within the enactment as to reputed ownership, 405. accommodation acceptance in hands of drawer at his bankruptcy does not pass to his assignees, 423. nor short bills in a bankers' hands, 429. ; and see " Banker." when indorsement and delivery of a bill a good payment, 676. when the acceptance of a bill, ib. where a subsequent indorsement of a bill relates back to the delivery, 689. As to the Right of Set-off on Bills and Notes, 718. acceptance in the hands of a third person, a case of mutual credit between such person and the acceptor, 708. so an acceptance not payable till after the act of bankruptcy of the drawer or payee, 706. distinction, as to right of set-off against a bankrupt, between an indorse- ment before and after his bankruptcy, 718. bill indorsed before can be set off against a debt, though accruing after the indorsement, ib. 926 INDEX. BILLS OF EXCHANGE AND PROMISSORY NOTES — continued. As to the Right of Set-off on Bills and Notes. but not if indorsed after the bankruptcy, 718. so an indorser taking up a bill after the bankruptcy of the acceptor cannot set it off' against the assignees, 719. oiitis lies on indorsee to shew indorsement made before the bank- ruptcy, ib. what is presumptive evidence of this fact, ib. in the case of cross-acceptances, holder must shew that the obligation to pay subsisted before the bankruptcy, ib. or that there was a mutual credit in the origin of the bills, 720. acceptor paying a composition on a bill may set off the full amount against the drawer, ib. BILLS OF LADING ; and see " Stoppage in transitu." alteration of the law as to possession and transfer of, 462. holder of now to be deemed the true owner of the goods, unless the person dealing with him has notice to the contrary, ib. how an assignment of by consignee formerly affected the rights of con- signor, 465. held to be negotiable by indorsement, 464. indorsement in blank may be filled up by the holder, ib. when indorsed with notice to indorsee that goods have not been paid for, indorsee has only the rights of original consignee, 465. this notice extended to notice of such circumstances as prevent the bill of lading from being fairly and honestly assignable, ib. how indorsement operates in law, 468. when it has relation back to a previous assignment of the goods, 690. where engagement to indorse equivalent to actual indorsement, ib. but where unindorsed, or nothing equivalent to indorsement, holder can- not transfer the bill of lading, ib. notwithstanding indorsement, vendor may stop goods where vendee has transferred the bill of lading to his factor merely to sell the goods, 469. but qiicere, whether this point would not now be differently decided, 470. BILL OF SALE. See « Ship." BLEACHER, may be a bankrupt, 26. BOND, may be proved against all parties to it, 235. when assigned should be delivered up to assignee, 423. assignor must join in proof, 2.36. payable on demand, when proveable without demand, ib. to replace stock, how proveable, ib. to retransfer within three years, assignees not entitled to have three years to do so, 237. voluntary bond how proveable, ib. 306. when bond given for arrears of a voluntary bond, 237. 567. bail bonds proveable if forfeited before bankruptcy, 237. qucBre, if forfeited after bankruptcy, 238. bond to indemnify lessee from covena-nts in a lease not proveable, ib. payment of interest on after certificate implies a new contract, 625. BOND TO LORD CHANCELLOR, HO.; and see " Commission,"!. as to amount, ib. as to execution of it, ib. INDEX. 927 BOND TO LORD CUAl^CELLOR — continued. as to assignment of it when commission maliciously sued out, 134.; and see " Commission" 6. BOOKS, destroyed or falsified by bankrupt render certificate void, 594. BOTTOMRY BOND, obligee may claim under before contingency happens, 507. BREAKING PRISON, an act of bankruptcy, 81. ; and see " Aci of Bankruptcy" 15. BREWER, may be bankrupt, 27. BRICKMAKER, when a trader, 30. ; and see " Trading" BROKER; and see " Factor." liable to bankruptcy, 22. not prohibited by law (though bound in a penalty) from dealing on his own account^ 306. but if, in the same transaction, he acts both as broker and principal, then the debt is void, ib. embezzling a draft and buying other securities with the proceeds, such securities do not pass to his assignees, 428. BUILDER, may be a bankrupt, 25. BUTCHER, the like, 27. BUTLER, to the king, or an inn of court, not liable to bankruptcy,,';'?. BUYING AND SELLING. See " Trader." C CALENDERER, may be a bankrupt, 26. CALICO PRINTER, has a general lien, 484. CAPIAS UTLAGATUM, whether bankrupt after certificate can be discharged from arrest on, 623. CARPENTER, may be made bankrupt, 25. CARRIERS ; and see " Stoppage in Transitu" possession of not a case of reputed ownership, 423. any usage of does not prevent vendor's right to stop in transitu, 461. not entitled to a general lien, except upon a special agreement, 484. where money remitted by, passes to the remitter's assignees, 677. CATTLE SALESMAN, may be a bankrupt, 26. CERTIFICATE. 1, Of the Signature of the Creditors, 563. requisite proportion in number and value, ib. when a creditor may sign by power of attorney, 564. creditors required to add the date of their signatures, ib. bankrupt may inspect proceedings, to ascertain the debts proved, 565. should not be signed before last examination, ib. creditors not compellable to sign, ib. cannot sign when not entitled to a dividend, 566. 928 INDEX. CERTIFICATE — continued. Of the Signature of the Creditors, one partner may sign for himself and his copartners, 566. but not one trustee, ib. a receiver cannot sign, ib. an executor of a creditor may, ib. but cannot sign twice, though he proves a debt in his own right, ib. should not sign without consent oi cestui que trusts, 561. when bankrupt is executor of a ci'editor, cannot sign without an * order, ib. petitioning creditor cannot sign without proving at a public meeting, ib. money given to a creditor to sign renders certificate void, ib. although it is given without the knowledge of the bankrupt, 568. so money given to withdraw a petition against certificate, 569. not illegal creditors signing merely to render bankrupt a competent witness, 569. creditor may be sued to recover back money paid for signing, 570. when signed by fictitious creditors, what ' proof necessary to impeach it, ib. contract or security to induce a creditor to sign, void, ib. privity of the bankrupt immaterial, ib. note given to a creditor (though he had not proved) for a pre-exist- ing debt, void, 571. this principle extended to the case of an insolvent, or a deed of com- position, ib. 2. Of the signatiu'e of the Commissioners, 572. how they must certify bankrupt's conformity, ib. must have previous proof of creditors' signatures, ib. required to certify whether any certificate under former commission, ib. how their signatures must be attested, 573. their discretion as to signing subject to no control, ib. as to supplemental certificate, 574. commissioners confined to consideration of bankrupt's conduct since the bankruptcy, ib. where proceedings under the commission are lost, ib. 5. Of the Allowance by the Chancellor, and of opposing and recalling the Allowance, 515, previous affidavit of bankrupt, ib. and notice in the Gazette, ib. allowance stayed when a petition lodged against certificate, 576. when allowed, must be registered, ib. exempted from stamp duty, ib. secretary of bankrupts required to search if any former certificate, ib. discretionary power of the Chancellor as to allowance, ib. may be allowed after the death of bankrupt, 577. who may oppose the allowance, ib. any creditor who has proved, though under 20/., ib. a mortgagee, when, 578. when a receiver, ib. when a partner of the bankrupt, ib. when a creditor who has not proved, ib. or who has taken the bankrupt in execution, 579. what a preliminary objection to hearing petition, ib. no objection that opposing creditor has signed certificate, ib. distinction between suspending, and altogether refusing, certificate, ib. causes for suspension, 580. INDEX. 929 CERTIFICATE — continued. Of the Allowance by the Chancellor, Sfc. when creditors sign too precipitately, 580. when commission taken out under a wrong description, ih. when no dividend has been made, 581. what not a good cause, ih. question of sequestration depending in the Scotch courts, ih. objection merely to the time of proving a debt, ib, opposition of creditors who only claim a balance due, ih. petition pending to supersede the commission, ib. new creditors proving after signature by commissioners, ih. creditor waiting the result of a trial, 582. omission of commissioners to certify a former bankruptcy, ih^ bankrupt uncertificated under a former commission, ih. 584. accounts of bankrupt being merely in a slovenly state, ib. except when, ih. bankrupt retaining money as assignee under a different commis- sion, ib. issuing of a joint commission, 583. as to disallowance, where declared by law to be void,ih. mere suspicion not a good ground, ib. when an issue directed to try the controverted fact upon which the validity of certificate depends, 584. when Lord Chancellor will order commissioners to review it, ih. when influenced by their signatures, 58 5. suffering fictitious debts to be proved, substantial cause for dis- allowance, ib. keeping a lottery office, or obtaining goods under false pretences,, before the banhruptcy, no grounds for absolute disailowancej, ib. when certificate will be recalled, 586. when any fraud is practised by the bankrupt in obtaining it, ih. or in any of the proceedings under the commission, ib. or any previous conduct of bankrupt brought to light, that would render the certificate void, ib. but not recallable in every case where it might have been stayed, ih. 4. Practice on Petitions to stay the Certificate, 587. petition must be signed by all the petitioners, 588. except in case of a partnership, or absence from the kingdom, ii. how each signature to be attested, ib. attestation by agent to the solicitor insufficient, ib. when petition must be presented, ib. petition before last examination bad, 589. petition must be 'personally served on bankrupt, ib. mode for bankrupt to pursue when not duly served, ih. when a special order as to service will be made, ib. when affidavit of service must be filed, 590. affidavit of the truth of facts alleged in petition, ib. general order as to filing affidavits, ib. meaning of the term " filing an affidavit," 591. when affidavits in answer should be filed, ib. where the strictness of the rule as to filing was departed from, ih. petition cannot be withdrawn without leave, 592. when dismissed, generally with costs, ib. 5 O 930 INDEX. CERTIFICATE —coM^mKed Practice on Petitions to stay the Certificate. when petition may be heard, 592. practice when petition presented in vacation, ib. 5. When the Certificate is void, 593. loss by gaining or wagering in one day 20/., or within one year 200/., ib. party opposing must elect tuhich loss he will substantiate, ib. loss of 200/. within one year by stock-jobbing, 593. destroying or falsifying books or accounts, 594. concealing property, ib. bankrupt being privy to proof of false debt, ib. 6. Effect of the Certificate, 595. discharges all claims proveable under commission, ib. but not partners or co-sureties of the bankrupt, ib. privilege of proof, and discharge of bankrupt, co-extensive, 596. except costs on a verdict after bankruptcy in an action ejc con- tractu, ib. discharges claim of surety though arising after bankruptcy, ib. only debts actually oioing by bankrupt at his bankruptcy, 597. joint debts as well as separate, 608. consideration for an annuity, ib. does not bar the crown, ib. nor discharge a collateral covenant of indemnity, ib. as a covenant, or bond of indemnity against covenants, in a lease, 598. nor lessee's liability on a lease, unless assignees accept the term, ib. or bankrupt deliver the lease up to the lessor, ib.; and see « Lease." whether a discharge of liability for payments made on cross-acceptances, 600. no discharge of a promise to pay a weekly sum for an illegitimate child, ib. or of a bastardy bond, 601. no operation until actual allowance, ib. does not therefore invalidate an execution previously levied, 607. no relation back, 601. not a discharge of bail if fixed before allowance, ib. ; and see " Bail." enables bankrupt to justify as bail, 605. discharges a debt contracted abroad, ib. if proveable, and the creditor had an opportunity of proving, ib. debt contracted in Scotland, ib, whether a discharge of debt contracted in the colonies, 604. operation of a foreign certificate, 605. semble, no discharge of an English debt, 606. effect of not decided upon a summary application, 607. in what country a debt held to be contracted, 605. operation of a discharge under the Scotch bankrupt act, 607. operation of certificate where bankrupt discharged under a former com- mission, 608. where the former commission has been superseded, 610. no discharge of cognovit signed before the bankruptcy, where judgment not entered up till after certificate, ib. INDEX. 931 CERTIFICATE — continued. Effect of the Certificate. under third commission (where 15.?. in the pound not paid under second) not void, but only voidable, 611. after compounding with creditors, ib. where money has been fraudulently misapplied, 612. does not estop bankrupt from disputing the commission against a stranger, 615. where bankrupt is assignee of another bankrupt estate, ib. of no effect unless registered, ib. 7. Of pleading the Certificate, and of the Evidence to support or defeat it, 614. when bankruptcy and certificate may be pleaded, ib. form given by the statute must be followed, ib. may be pleaded puis darrein continuance, 615. as to counsel's signature to plea, ib. averment of conformity, ib. as to pleading it in equity, 616. as to pleading it when sued by a surety, ib. general plea of bankruptcy puts the whole merits in issue, 617. a foreign certificate should be specially pleaded, 618. what certificate affords presumptive proof of, ib. plaintiff cannot impeach the commission, id. what should be proved when commission issued against bankrupt by a different name, 617. what proof necessary where certificate pleaded under second commis- sion, 619. what plaintiff bound to prove to defeat it, ib. what secondary evidence admissible of a former certificate, ib. where bankrupt neglects to plead his certificate, 620. where, after pleading it, he neglects to produce 'it,ib. consequences of omission to plead it as to bail, ib. how registry of certificate proved, 621. allowance of by Lord Chancellor needs no proof, ib. as to costs when bankrupt sued by an executor, 618. 8. Of discharging a certificated Bankrupt, 621. when arrested, may be discharged on common bail, ib. but officer cannot discharge without a judge's order, 622. when an order for discharge will be refused, ib. when an issue directed to try the commission, id. as to relief on an audita querela, ib. when imprisonment is in rhe nature of a contempt, 623. when in custody on a capias utlagatum, ib. when bankrupt jointly sued with others, ib. 9. Of the Bankrupt's Liability on a new Promise, 624. promise must be in writing, and signed by bankrupt, ib. plaintiff need only declare on the original consideration, ib. security given by bankrupt after bankruptcy for part of a debt not proved, valid, ib. so for a debt proved, if after certificate, 625. payment of interest on a bond proveable implies a new contract, ib. promise good, though made before certificate, ib. what is a conditional, and what an absolute promise, 626, general declarations not sufficient, ib. 5 O 3 932 INDEX. CERTIFICATE— contimied. Of the Bnnkrupfs Liability on a new Promise. as to liability to aiTest on subsequent promise, 626. what act of the creditor a waiver of the promise, 627 as to solicitor's bill for obtaining certificate, 888. CESTUI QUE TRUST, should join with the trustee in proof, 224, CHANCELLOR LORD, nature and origin of his jurisdiction in bankruptcy', 5. 1. Over Parties to the Commission, 7. enforced by the general jurisdiction of the court of Chancery, 7. confined to transactions relating to the bankruptcy, ib. no power to order contribution as to costs, 8. or to determine a question where the bankrupt's estate has no in- terest, ib. but any thing necessary to the question of proof gives him jurisdiction, ib. power to send a case for the opinion of a court of law, ib. or to direct an issue, or a bill to be filed, 9. to order payment of the solicitor's and messenger's bills, 12. or the transfer of stock standing in bankrupt's name as trustee, ii. jurisdiction both legal and equitable, 9. by what rules guided, ib. over commissioners, 10. to suspend execution of assignment, i5. to remove assignees, ib. cannot, sitting in bankruptcy, discharge a bankrupt on a summary ap- plication, but only under a writ oi habeas corpus, ib. power to issue that writ in vacation, ib. cannot compel commissioners to declare a party bankrupt, ib. but only to proceed in their judgment, ib. cannot in a proceeding by bill reverse the order of the commis- sioners, ib. nor grant an injunction to restrain bankrupt from proceed- ing at law against the assignees, 1 1 . cannot interfere in a proceeding bel'ore a judge of oyer and ter- miner, ib. order of not subject to the review of any other court, ib. writ of prohibition will not lie to him, ib. qucere, whether action at law may be brought for costs awarded by Chan- cellor in bankruptcy, ib. no power to appoint a receiver in bankruptcy, 12. nor (sitting in bankruptcy) to order an infant heir to convey, ib. may order commission to be proceeded in, though petitioning creditor's debt prove insufficient, 93. jurisdiction extends over all persons coming in under the commission by way o( proof, joet if ion, or otherwise, 15. jurisdiction not determined by a supersedeas, ib., 832. 2. Over Strangers to the Commission. no jurisdiction over a person claiming nothing under the commis- sion, 15. unless he comes in of his own accord, ib. as by ap[)lying for and obtaining an order in bankruptcy, ib. or by petitioning for relief, ib. no jurisdiction to order restitution to a 7nere claimant of property, 16. unless a clear case of ownership, ib. INDEX. d39 CHANCELLOR, LORD — contimied. Over Strangers to the Commission. as in the case of short bills, 16. after a claim established may order compensation, as well as restitution of property, ib. cannot order a bill to be indorsed to a stranger, qiuere tamen, 16. cannot restrain the assignees from suing a stranger, 17. no jurisdiction over a second mortgagee not claiming under commission, 18. as to jurisdiction where a creditor has proved, 17. where commissioners have found a sum due to a creditor on balancing accounts, ib. over a purchaser under the commission, ib. in the case of waste, ib. in cases between the lessor and the assignees of a lessee, 19. in the case of a solvent partner, ib. over strangers guilty of a contempt, ib. or practising a fraud upon the great seal, ib. CHILDREN, when a child admitted a creditor under his father's commission, 234. not unless there is some contract for wages, ib. debts from a bankrupt to his children watched with jealousy, ii. CHOICE OF ASSIGNEES. See " Assignees." CHOSE IN ACTION, of bankrupt passes to assignees, 385. within the enactment as to reputed ownership, 405. if when assigned the security is not delivered up, 422. when duly assigned before the bankruptcy, action to recover it must be in the name of the bankrupt, 743. CHURCH RATES, assessment for, a good petitioning creditor's debt, 95. CLAIM, where allowed by a creditor, 307. when to be struck out, 308. where an alien enemy may claim, ib. how claim operates as notice of dissent from an illegal contract, i6. does not entitle a creditor to oppose certificate, 581. CLERGYMAN, how far liable to bankruptcy, 20. when debt contracted by will not support a commission, 100. when bankrupt, his living is liable to a sequestration, 360. CLERKS, right to six months' wages when master bankrupt, 234. CLOTHIER, may be a bankrupt, 27. COFFEE-HOUSE KEEPER, a trader, 25. COGNOVIT, not discharged, where judgment not signed till after certificate, 610.; and see Addenda. COLLECTOR. See " Taxes." COLLIERY, OWNER OF, when considered a trader, 50. COLONEL, of a fencible regiment not liable to bankruptcy, 55. 9 o 934- INDEX. COLONIES, as to conveyance of property in to assignees, 348. operation of certificate on a debt contracted in, 604. COMMISSION. 1. Of issuing the Commission, 106. who may petition for one, ib. practical directions as to striking a docket, ib. when two parties apply together, they must draw lots, 107. but if one only prepared, he is entitled to the commission, ib. when commission superseded,any creditor may strike fresh docket, 1 08. when variance in name, practice at bankrupt office, ib. affidavit cannot be resworn, ib. docket used for an improper purpose, a contempt, 109. as to statement in the affidavit for the docket, ib. irregularity in issuing no ground at law for invalidating commission, ib. commission not invalid because act of bankruptcy committed after swear- ing affidavit, 110. petition must agree with the affidavit, ib. amount of bond required to be given, ib. supplemental affidavit when permitted, 111. as to execution of bond, ib. an infant cannot execute it, ib. where husband and wife are petitioning creditors, ib. where partners or assignees, ib. as to sealing commission, ib. should be sealed at the Jie:ct immediate public seal, 112. omission of clerk at bankrupt office will not prejudice the right of priority, 113. when a shorter time will be limited for sealing, ib. when first creditor entitled to have commission sealed, notwith- standing a previous countermand, ib. must be sealed after act of bankruptcy, ii. where sealed by the Chancellor in the middle of the night, 1 14. when sealed, commission then said to be awarded,ib. the issuing of the commission and the adjudication a matter of right, ib. proceedings will not be stayed before commission opened, i6. except in the case of fraud, 1 1 5. when publication in the Gazette restrained, ib. to whom commission directed, ih. as to the issuing of a country commission, ib, to whom it may be directed, ib. when may be directed to attornies, ib. when commissioners are falsely described, 116. ivhere it should be executed, ib. no commissioner must be a creditor, ib. practice where there is a competition for a country, and for a town commission, 117. any person may sue out a commission, ib. as to the description of the bankrupt, ib. variance when material, 118. how the trading should be described, ib. when commission may be amended, 119. when there must be a new docket, ib. s when opened, cannot be amended, ib. quaere, as to the inflexibility of this rule, ib. INDEX. 9SS. COMMISSION — continued. Of issuing the Commission. relaxed when error arose from the act of the officer, 119. when commission should be executed, 120. when country commission supersedable for want of execution, ih. necessity for speedy execution of commission against bankers, 121. what deemed a sufficient proceeding, ib. not necessary that adjudication should have appeared in Gazette, ib. when strictness of order as to execution of commission relaxed, 121. when time will be enlarged for adjudication, 122. after neglect to prosecute commission, same petitioning creditor cannot sue out another without special leave, ib. where the delay is caused by the bankrupt, 123, who may supersede for want of execution, ib. 2. Of the Effect of the Commission, 123. distinction between a commission and an execution, ib. commission unopened considered as an execution, 124. commission does not abate suits pending, ib. nor revoke a suljmission to arbitration, ib. nor a decree for a receiver, ib. does not work a forfeiture in a lease, ib. nor a comj)lete revocation of a devise, ib. when it invalidates payments, 125. of no effect when not in legal operation, ib. when it abates by the death of the party, ib. does not abate by a demise of the crown, ib. 3. Of a second Commission, 126. strictly void, and supersedable, ib. when permitted to stand, ib. as to a third commission, 127. when a Scotch sequestration has a preference over a commission, ib. 4. Of a joint Commission, 128. former practice as to commissions against partners, ib. joint creditors may sue out commission against one or more partners, 129. may be superseded as to one, and stand against the rest, ib. sustained, though debt contracted after a noiiiinal dissolution of part- nership, 129. when a joint commission preferred to a prior separate commission, ib. not supersedable on the ground of a prior separate commission in Ireland, 130. when prior separate commission superseded, petitioning creditor al- lowed the costs and restored to his right of election, ib. when separate commission impounded to give effect to a joint one, 151. when separate commission will be preferred, ib. where joint creditors guilty oi laches, ib. separate commission will not be superseded, when bankrupt has committed a felony by not surrendering to it, 132. where a separate commission issues (after a joint commission) against the other partners, ib. as to the order for distinct accounts under a joint commission, ih. joint commission no ground for staying a bankrupt's certificate under a separate one, 583. .5 4 '936 INDEX. COMMISSION — continued. 3. Of renewed and auxiliary/ Commissions, 133. when a commission may be renewed, ib. when it cannot, ib. , when auxiliary commissions may be issued, ib. 6. Remedy whei'e Commission is maliciously sued out, 134, when bond will be assigned, ib. assignment conclusive proof of malice, 135. when Chancellor will direct a previous inquiry, ib. when bond will be ordered to stand as a security, ib. in action on bond, fraud or malice need not be averred, ib. what plea held bad, ib. not within the 8 & 9 W. 3. c. 11. s. 8., 156. as to proof of allegation that commission was superseded, ib. what is a fatal variance in the description of the commission, ib. when action on the case the preferable remedy, ib. but that is a waiver of the action on the bond, U). when Chancellor will impound the proceedings in bankrupt office, 137. as to authority of Judge to order copies, ib. how conspiracy to issue a fraudulent commission may be prosecuted, ib. COMMISSION TO EXAMINE WITNESSES, when it will be granted, 827. COMMISSIONERS. N. B. As to the duty of the commissioners in adjudicating the bankruptcy, see " 0]ieni7ig Commission." 1. Of their general Jurisdiction, 143. nature of their jurisdiction, U). number of the commissioners, ib, power of imprisonment, 144. no power to commit for a contempt, ib. or for punishment, ib. not considered a court of justice, ib. protection of witnesses attending them, H5.; and see " Witness." their discretionary power sutijcct to no control, 10. 145. power to c\punge a proof, 146. what fees entitled to, ib. when bound to attend and act under the commission, ib. when their authority assisted by that of the great seal, 147. incapable of purchasing bankrupt's property, ib. 336. except under an order, ii. solicitor to commission, or a creditor, cannot be a commissioner, 116. 147. appeal lies from their decision to the Lord Chancellor, ib. but their order cannot be reversed by bill, 10. when considered y"««c^i o^cK), H8. auth(jrity not determined by the death of the king, or of the bankrupt, ib. when competent as a witness, 801. 2. Of their Poiver over the Bankrupt, 148. authority to compel surrender, ib. power to examine the bankrupt, 14<). power of commitment, ib. liability for illegal commitment, ib. as to warrant of commitment, 150. no power to conniiiL for not answering a question which would cri- minate the bankrupt, ib. INDEX. 937 COMMISSIONERS — continued. Of their Power over the Bankrtijit. when bound to commit, 150. when bankrupt ma}' be discharged, 151. without commissioners being liable, ib, commissioners cannot delegate their authority, ib. whether they may be influenced by extrinsic evidence, ib. 3. Of their Power over the Ban/crupt^.'i Pi-oj^erti/, 152. extends to all the real and personal property, ib. as to issuing the warrant of seizure, ib. as to seizing property in Ireland or Scotland, 153. have only a power, not an estate in it, 548. 4. Of their Potver over other Persons, 153. authority to compel attendance of witnesses, ib, witness bound to attend, though alleging himself incompetent, 154. or though he has already attended for the same purpose, ib. trustees bound to produce the trust deed, ib. power to summon persons suspected of having bankrupt's property, ib, or supposed to be indebted to bankrupt, iO. to call for books, &c. 155. to issue warrant to compel attendance, ib. to examine any persons concerning the bankrupt or his estate, ib. and to commit in case of refusal to answer, ib. as to their incidental right of examination, 156. such right not in general restrained by the Lord Chancellor, 157. party bound to answer, though he may expose his own defective title, ib. but not compelled to criminate himself, 158. or destroy his own proceedings, ib. to what bankrupt's wife may be examined, ib: power to examine creditors the same as other persons, 159. power to summon assignees before them, ib. cannot issue siibpcenas, ib. when not empowered to issue summons, must proceed by affidavit, 160. 5. Of Actions and other Proceedings against them, 1 64. Court upon the trial may look at tiie whole of the examination, ib. no action sustainable without one month's previous notice, 165. nor evidence admissible of any other cause of action than that in notice, ib. commissioner may tender amends, and plead the same in bar, ib. if plaintiff nonsuit, &c. commissioner entitled to the like costs as under the general issue, ib. may pay money into Court, ib. action must be brought within three months after the act committed, 166. may plead general issue, and give special matter in evidence, ib. defendant entitled to double costs, ib. when conmiissioners liable to an action, ib. not if the act done be within the scope of their authority, ib. though done through an erroneous judgment, ib. not for a mere formal defect in the warrant, 167. where onus of proof lies on the plaintiff, ib. w'hen commissioners have a right to indemnity from assignees, 167. 859. 938 INDEX* COMMISSIONERS — continued. Of Actions, Sfc. against them. how far commissioners' warrant evidence of the imprisonmentj 167. proceedings stayed until costs of a former action paid, ib. when they may make affidavits in answer to a petition reflecting on them, 168. COMMITMENT; mAsee " Comrtmsioners." of commissioners cannot be for a contempt, or by way of punish- ment, 144. general power of in case of refusal to answer, 155. of bankrupt, 149; and see "Bankrupt" 4. when it disqualifies him from petitioning to supersede, 817. COMPANIES. See " Public Companies." COMPENSATION, under an act of parliament, passes by assignment, 388. COMPOSITION, party to bill discharged by, 24.7. operation of certificate after, 611. COMPOSITION CONTRACT, first meeting of creditors to receive the offer, 81.5. nine-tenths in number and value of creditors binding, ib. second meeting, ib. when Lord Chancellor may supersede the commission, 814. as to creditors below 20/. ib. creditors residing abroad, ib. penalty on a creditor accepting a higher composition, ib. general order of Lord Eldon as to holding the meetings, and for re- gulating the conduct of the commissioners, ib. decisions of the Scotch Courts, 815. COMPOSITION DEED, where wholly invalid, does not destroy the petitioning creditor's debt, 89. where creditor not bound by, 297. whore he may prove for remainder of his debt, ib. if instalments not previously received, must prove for his whole debt, 298. wiiere deed contains an actual release, can then only prove for out- standing instalments, ib. where a party bound by his own misrepresentation in inducing a creditor to compound, 299. COMPOSITION FRAUDULENT; and see "Act of Bankruptcy," 17. an act of bankruptcy, 83. COMPOUNDING WITH PETITIONING CREDITOR, 102. CONCEALMENT OF BANKRUPT'S EFFECTS, penalty on persons guilty of, 384. reward to persons discovering them, ib. where bankrupt guilty of, renders the certificate void, 594. CONCERTED ACT OF BANKRUPTCY, 42. a good cause for applying to supersede commission, 822. CONSIDERATION, inadecjuacy of, an objection to the proof of a debt, 306. boml given for arrears of a voluntary bond, deemed a bond for valuable consideration, 307. CONSIGNEE AND CONSIGNOR. See « BUI of Lading," " Stoppage in Transitu." r INDEX. 939 CONSPIRACY, to issue a fraudulent commission, how offenders prosecuted, 157. CONSTRUCTION, of statute declared to be favourable for creditors, 182. CONSTRUCTIVE NOTICE, 696. CONSTRUCTIVE DELIVERY, of goods, 707. CONTEMPT, commissioners cannot commit for, 144. Lord Chancellor has jurisdiction to punish all persons guilty of, 19. obstruction of the messenger a contempt, ib. 172. or giving a bond of indemnity against the consequences, ii. corrupt bargain with solicitor as to issuing the commission, 10.5. where arrest Of witnesses attending commissioners amounts to one, 160. where not, 161. CONTINGENT DEBT, not a good petitioning creditor's debt, 90. formerly not proveable unless contingency had happened, 212. proveable now either before or after the contingency, 215. qucBre, whether a guarantee for payment of goods proveable, where the credit has not expired, 214. CONTINGENT INTEREST; and see " PossibilUy." CONTRACTOR, not liable to bankruptcy, 35. CONTRIBUTION ; and see « Jssig?iees:'' when creditors hable to contribute to expenses of assignees, 181. Court will not order as to payment of costs, 855. CONVERSION, what acts amount to in trover against the sheriff, 747. what is a joint act of, 757. CONVEYANCE; and see "Assignment." when fraudulent, an act of bankruptcy, 63,; and see " Act of Bank- ruptcy" 1 1 . COPYHOLD, fraudulent surrender of an act of bankruptcj^ 75; and see " Act of Bank- rwptcif" 12. how to be conveyed by the commissioners, 354. purchaser to compound with lord for fine, and then to be admitted, 355. when he may enter without admittance, ib. vests in purchaser when admitted, by relation to bargain and sale, ib. when a bankrupt dies before admittance and before bargain and sale, ib. commissioners may nevertheless execute a valid conveyance, 556. though mortgaged by bankrupt without surrender, assignees not entitled, 357. COPYRIGHT, passes to assignees, 389. CORPORATION may prove by agent, 194. COSTS, Proof for, when judgment recovered before bankruptcy, proveable though not taxed, 197. 274. not proveable if incurred after bankruptcy, ib. \{ judgment signed after bankruptcy, though verdict before, 275. except in an action ex contractu, 276. 940 INDEX. COSTS —continued. Proof for, when proveable if judgment signed before commission, 277. in no case proveable where verdict after act of bankruptcy, ib. nor in tort, though verdict be before, if judgment after the comnois- sion, ib. costs of a nonsuit proveable, if judgment entered up before commis- sion, 278c in some cases not proveable, though barred by the certificate, 278. as in an action ex contractu, ib. 596. so wpon 2L scire facias aker the bankruptcy to revive a judgment, 278. qucerc, where defendant brings a writ of error after the bankruptcy, 927. costs in chancery proveable where decree before bankruptcy, though not taxed till afterwards, 280. 1. Of issidng the Commission, 845. petitioning creditor personally answerable for, 102. 173. 845. of the messenger, from whom recoverable, 173. when reference io the Master to tax, 845. as to petitioning creditor's right to reimbursement, 846. petitioning creditor liable for, though no assets, ib. 2. Of Costs subsequent to the Choice of Assignees, 847. may be now taxed by commissioners, ib. when by a Master, ib. assignees liable for, \h. must keep an account of, 848. of a person summoned before commissioners, ib. of a witness, ib. distinction between the two cases, 849. when ordered, may be recovered in assumpsit, ib. of application to be discharged from an arrest, ib. of a joint creditor in conducting examinations, 850. 3. On Petition. when commissioners liable for costs, 148. costs on petition to stay certificate, 592. 850. on petition for a supersedeas, 102. 130. 850. as to bankrupt's exemption from, 850. when not allowed costs, 851. when ordered to pay costs, ib. remedy for, when commission superseded, ib. when petitioning creditor allowed costs of opposing the superse- deas, 852. where under separate commission allowed costs out of the joint estate, ib. when commission taken out against good faith, as to right of apply- ing for a supersedeas, with a view to the costs, 853. whore fraud alleged and not proved, petition dismissed with costs, ib. where a feme sole marries after order for costs against her, as to liability of husband, ib. where costs not prayed, cannot be awarded, ib. but may be given under the word crpenses, ib. where Court has no jurisdiction, respondent entitled to costs, ib. not given on a petition against the deliberate judgment of the commis- sioners, ib. but the costs of an issue, if directed, are allowed, 8^4. INDEX. 94 1 COSTS — continued. On Petition. when costs of the day will be allowed, 854. can only be obtained by a special order, ib. costs of an interlocutory order, ib. for default of appearance, how obtained, ib. petition dismissed with costs for defective attestation, ib. for containing groundless imputations, ib. when accompanied by a scamialous affitlavit, 855. when relief provided by a general order, ib. must be paid into Court upon exception to Master's taxation, ib. no appeal against an order for costs only, ib. aliter, when order for payment out of a particular fund, ib. when several persons ordered to pa\-, Court will not order contribu- tion, ib. bankrupt liable to when guilty of fraud or vexation, ib. when he petitions to surrender after time is expired, 856. on a petition to remove an assignee, ib. liability of the removed assignee, ib. by joint creditors to prove, ib. by an equitable mortgagee for a sale, ib. against commissioners, 857. whether costs awarded in bankruptcy can be sued for at law, ib. 4. Costs in Actions and Suits by and against Assignees and othei- Parties, ib, assignees entitled to costs out of the estate, ib. when notice given to dispute the bankruptcy, ib. • not entitled when nonsuited, 858. must pay costs of an action, though no assets, ib. bound by C^ourt of Conscience act, ib. as to staying proceedings by until payment of costs of former action, ib. liability of when sued by supplemental bill, 859. party liable to when he defeats (by a formal objection) an action brought by order of the Lord Chancellor, ib. when double costs are given, ib. commissioners' right to compensation for costs, ib. when bankrupt personally liable for, ib. when proceedings by will be stayed till costs of former action paid, 860. not entitled to costs as against executors, ib. when sued as executor, and pleading a false plea, may be taken in execution for costs, notwithstanding certificate, '861. costs in an action ex contractu follow the debt, ib. when petitioning creditor liable for, 105. 5. When Scciiritt/ for Costs toil/ be required, 861. when an uncertificated bankrupt sues as trustee for his assignees, ib. refused on the ground merely of the plaintiff" being in prison, 862. or of his poverty, or insolvency, ib. where a bankrupt brings an action for his own benefit, ib. where one only of two joint plaintiffs is abroad, ib. preliminary proceedings, where defendant entitled to security, ib. application for security should be made early, 863. defendant cannot require security if he pleads the plaintiflTs bank- ruptcy, ib. application for in equity too late after answer, ib. 942 INDEX. COUNSEL, as to right of a party to, when examined before commissioners, 162. signature of to plea of certificate, 615. COUNTER PETITION. when no necessity for, 827. COUNTER SECURITY, 289.; and see " Sureties," 2. COUNTRY COMMISSION, 115.; and see '' Commission," \ . '' Supersedeas," I. for what cause superseded, 120, 809. COURT OF REQUESTS, 742. COURT, PAYMENT OF MONEY INTO, 165, 744. COVENANT, in action of for rent, assignees not bound to set forth their title, 740. not to assign a lease, &c., 124. 590, et seq. COW-KEEPER, not a trader, 34. CREDITOR ; and see " Proof." as to right of proof of, and his general rights and duties, 1 76. may be examined by the commissioners, 159. bound to answer their inquiries, 181. when attending to prove, privileged from arrest, 160. when not competent as a witness, 799.; and see " Evidence" 1. cannot be a commissioner, 147. CREDITOR ABROAD, proof by, 194. how he may vote in the choice of assignees, 314. or on the composition contract, 815. CREDITOR'S ELECTIOx\ ; and see " Election." CROSS BILLS, 256.; and see " Bills of Exchange." CROWN ; and see " Extents." may issue process for recovery of its debt before assignment, 490. operation of an extent, ib. as to necessity of provisional assignment, ib. as to process for different claims of, 494. not barred by bankrupt's certificate, 597. D DAMAGES, where contingent, cannot be proved, 280. but proveable if judgment obtained before the commission, 281. qucere, whether proveable, if verdict only before bankruptcy, ib. proveable, where creditor may waive the tort, and bring money had and received, 282. where claims founded on a contract, though sounding in damages, proveable, 283. accountable receipt for navy bills proveable, ib. where damages, though arising on a contract, not proveable, 284. DEATH, of bankrupt, when it abates the commission, 125. 140. operation of before admittance to copyholds, and before bargain and sale, 335. certificate may be allowed after, 577. of one partner, how it affects the right of set off, 709. of assignee does not abate an action or suit, 729, 743. INDEX. 94(3 DEALER AND CHAPMAN, what evidence may be given under these words, 767. DEBT OF PETITIONING CREDITOR; and see " Petitioning Creditor." DEBTS, proof of, 175 ; and see " Proof." owing to bankrupt vest in assignees, 383 ; and see" Assignment," p. II. s.2. when assigned to a purchaser, notice should be given to the debtor 493 DECLARATION OF INSOLVENCY, filing it an act of bankruptcy, 82 ; and see " Act of Bankruptcy" 16. DECLARATIONS OF BAN liRUPT, when evidence, 763, 770, 797. DECREE, for a receiver not superseded by a commission, 124. DEL CREDERE COMMISSION, difference it makes as to the right of set-ofF, 714, 715; and see "In- surance Broker." " Factor." DELIVERY OF GOODS. See " Reputed Owner," " Stoppage in transitu," " Assignment," 6. fraudulent, an act of bankruptcy, 75, 439.; and see "Act of Bank- ruptcy" 13. DEMAND AND REFUSAL, of warrant, 171. in trover, when necessarj' to be proved, 736. DEMISE OF THE CROWN, does not abate commission, 125. DENIAL, as to necessity of to establish an act of bankruptcy by keeping house, S3. ; and see " Act of Bankruptcy" 5. cases of, 54, et seq. DEPARTING DWELLING HOUSE, 46.; and see « Act of Bankruptcy" 3 DEPARTING THE REALM, 45.; and see " Act of Bankruptcy," 1. DEPOSIT. See " Equitable Mortgage." DEPOSITIONS ; and see " Proceedings." party not entitled to a copy of his deposition, 1 63. but Lord Chancellor may permit him to have a copy, ib. assignees entitled to the custody of, 163. what considered as proceedings under the commission, 164. no lien upon them for any costs or fees, ib. as to their admissibility in evidence, 784. et seq.; and see " Evidence," S. DESCRIPTION ; and sec " Commission," " Misdescriptio7i." of bankrupt, 117. of trading, 118. DETAINER; and see " Arrest," " Lying in Prison." where several detainers, what steps necessary before party is discharged, 161. DEVISE, commission does not operate as a complete revocation of, 124, 352. DISCHARGE, remedy for under a commitment of the commissioners, 530. ; and see " Bankrupt," IV. under an arrest during protection before surrender, 542. ; and see " Bankrujit," V., 1. a court of law has no power to discharge a defendant, against whom the plaintiff sues out a commission, 100. as to discharge from an arrest after certificate, 621.; and see " Certifi' eaie" 8. g^i INDEX. DISCONTINUANCE, proof a discontinuance of action pending, 188. no rule for necessar}^, ib. of action before petition for a siqiersedcas, 820. DISCOVERY, when bill for does not lie against a creditor, 687. lies against bankrupt as to his conduct before bankruptcy, 561. 728, upon bill for, defendants not permitted to refer to their depositions, 729. when bill for cannot be filed without leave, 827. DISCOUxXT ; and see " Bills of Exchange," " Interest." where not proveable under a commission against the vendee of goods, when it was agreed to be allowed for prompt payment, 271. DISPUTING COMMISSION ; and see " Evidence." notice as to, 759. by bankrupt, 758.; and see " Sitjjersedeas." DISSOLUTION OF PARTNERSHIP, 638. ; and see " Partners," 2. DISTRESS. See " Rent." DIVIDEND, 1. Of the first Dividend, 497. when should be declared, ib. how order for to be drawn up, ib. receipts for, 498. assignees' accounts to be first audited, ib. when assignees compellable to make it, ib. how to compel them, ib. may be postponed by Lord Chancellor, 499. penalty on assignees keeping money in their hands, ib. when a dividend must be reserved upon a claim, 500. only to be paid on amount of a creditor's real debt, ib. when may be retained, ib. when must be refunded by creditor, .310. 500. solicitor's charge for computing, 500. whether assignee can set oil" against a dividend a debt due to himself, 501. restriction as to when the banker to the estate is bankrupt, ib. as to the purchase of, ib. how an order i'or should be reversed, ib. 2. Of the second and final Dividend, 502. when meeting to be appointed to declare a second dividend, ib. second dividend to be final, except when, ib. when creditors proving at meeting for, may receive the first, ib. 3. Of unclaimed Dividends, 503. assignees must file an account of them at the Bankrupt Office, ib. or liable to a penalty, ib. how to be invested, 504. when may be divided amongst the other creditors, ib. 4. How a Dividend is to be recovered, 504. now only recoverable by j)elition, 505. the order for the dividend sufficient to establish petitioner's case, ib. when assignees not justified in delaying the payment, ib. when a creditor entitled to interest on dividend, 506. 273. effect of payment of dividend under a separate commission as to the solvent partner, 656. INDEX. 945 DOCKET, STRIKING, lOC; and see " Commissmt," 1. practical directions for, 106. used for an improper purpose, a contempt, 109. should not be struck inconsiderately, 110. DOCK WARRANTS, 415.; and see " 'Reputed Ownership." DORMANT PARTNER, 645. 710.; and see « Partners," 3. " Reputed Ownership." DOUBLE COSTS, when party entitled to, 166. 172. 859. DOWER; and see « Wife." when bankrupt's wife entitled to, 370. DRAWER. See « Bills of Exchange." DROVER, whether liable to bankruptcy, 26. 34. DUBLIN, port of considered a, foreign port, 420. DYER, may be a bankrupt, 26. has only a special lien, luiless extended from local custom, 483. or by a public notice, 484. E ECCLESIASTICAL BENEFICE, 362. ; and see « Power," " Advowson." EJECTMENT, by assignees bad, on a demise before the bargain and sale, 740. ELECTION OF CREDITOR, 1 . To sue Bankrupt or prove under Commission : petitioning creditor has no election of this kind, 101. 190. former practice as to putting a creditor to his election, 183. creditor must now relinquish an action before he proves, ib. proof deemed an election, 184. except in a joint action, as to the other defendant, ib. or when commission superseded, ib. distinction where action brought before, and where after proof, ib. where before, proof is a relinquishment of every action, 185. so a petition to prove, ib. or obtaining an order for an inquiry, ib. or accepting an assignment of a debt proved by another creditor, ib. where creditor issued execution for costs after proving his debt, 186. where a joint and separate creditor not concluded, ib. where execution levied before bankruptcy, proof may be for re- sidue, ib. when action brought after proof for a distinct debt, creditor not concluded by previous proof, 187. how proof under second commission operates, ib. proof does not affect the rights of third persons to sue bankrupt, ib. as in the case of a surety, or another party on a bill of exchange, ib. does not affect remedy against other persons jointly liable, 188. no rule to discontinue action necessary before proof, ib. when bankrupt is in actual custody at suit of the creditor, 189. proof of creditor may be entered of record in the action, ib. but cannot be pleaded, ib. being chosen assignee merely will not prevent creditor from suing, ib. proof operates in discharge of the bail, ib. 346 INDEX. ELECTION OF CREDITOR — continued. To sue Ba7iJcriipt or prove under Comviission. creditor after commission taking the body in execution, a conclusive election, 190. but not where defendant surrenders in discharge of his bail, 191. not concluded where bankrupt taken in execution before commission, ib. nor upon an attachment under a previous order of Court, ib. landlord after proving cannot distrain, 192. 2. Of Proof by Creditor against joint or separate Estate: when petitioning creditor not deprived of his election, 101. 130. G65. where a joint creditor has an election, 652. ct seq. ; and see " Part- ners^'' 4. joint and several creditor must elect against one estate, 657. where a creditor has no notice of a dormant partner, he may elect, G58. so an obligee of a bond by mistake made only joint, instead of joint and several, ib. when the election must be made, ib. when creditor concluded by proof already made, 659. exceptions to the rule of compelling the party to elect, 660. 1st. where parties on a bill are separate firms, ib. 2d. where not distinct firms, but only individual partners, ib. distinction whether holder knew this fact or not, 661. where right to prove against both estates forfeited, 6G2. by laches, ib. by a deliberate election, ib. where joint creditors on a dissolution of partnership have no election against separate estate of continuing partner, ib. where proof allowed against separate estates of .joint makers of a note, 665. where the holder of a bill jointly indorsed by one partner for his separate debt has no election against his separate estate, ib. EMBLEMENTS, 558. 398. ; and see " Mortgage." ENEMY'S COUNTRY ; and see " Alien Enemy." creditor residing in not a good petitioning creditor, 92. unless trading under a licence, ib. or the residence is involuntary, ib. contract to convey goods to, illegal, 306. ENROLMENT. See " Bargain and Sale." EQUITABLE MORTGAGE, 201. 357. See " Mortgage." EQUITABLE SET-OFF, 720. See " Set-of," 6. EQUITY OF REDEMPTION ; and see « Mortgage." passes to assignees, 356. ESCAPE, out of prison or custody an act of l)ankrnptcy, 81.; and see " Act of Bankruptcy" ] 5. » ESTATE TAIL, how to be conveyed by commissioners to assignees, 352, where remainder-man in tail bankrupt, assignees take only a base fee, ib. where bankrupt tenant in tail mortgages without suffering a recovery, and then dies, assignees entitled free of the mortgage, 357. ESTOPPEL, when creditor not estopped by proof, 181. when a party estopped by his own admissions, 782. EVIDENCE, in actions against commissioners where onus of proof lies on plaintifT, 167. INDEX. 9^7 EVIDENCE — continued. how far their warrant is evidence of the imprisonment, 167. to support or defeat the bankrupt's certificate, 618. et seq.; and see " Certificate" 7. What required to supjiort the commission in actions hy or against assignees, 756. former practice as to proof upon the trial, 756. no proof now of requisites to support the commission, unless previous notice given to dispute them, 757. provision as to notice in suits in equity, ib. difference between the former and present enactments, id. after what period the depositions are conclusive evidence, 758. 1. Where Notice is given to dispute the Commission, 759. difference as to period limited for giving notice, ib. no notice can be given in an action between third persons, ib. but statute not confined to a case where the assignees are the only defendants, 760. iiian," 767. iiow the act of bankruptcy should be proved, 768. ; and see " Act of Bankruptcy^ of the beginning to keep house, and denial to a creditor, 769.; and see " Act of Bankruptcy" 5. admissibility of the bankrupt's declarations, 770. proof of a fraudulent grant or conveyance, 771. ; and see " Act of BaiiJa-ujylcy" 1 1 • of n fraudulent transfer, 772. ; and see " Act of Bankruptcy" 1 .i, oi lying in prison, ib. ; and see " Act of BankrujHcy," 14. assignees not tied down to the proof of any specific act, 77.~. except when an issue directed, ib. where act of bankruptcy and commission are on same day, ib. where commission against several partners, 7 74. how the commission is to be proved, ib. .■5 p 2 948 INDEX. EVIDENCE — continued. Where Notice is given to dispute the Commission : how the assignment, 775. how the bargain and sale, 776. 2. Where Defendant is not entitled to give Notice to dispute, 777. in what actions, and after what period, ib. how far the depositions are conclusive evidence, ib. deposition of petitioning creditor, 779. 5. Where no Notice has been given to dispute. proof o? commission and assignment in this case sufficient, 780. without further evidence of title of assignees, ib. but infant defendants not bound by omission to give notice, ib. as to undertakinii' on retaining the venue, ib. strict proof (whether notice or not) required against the bankrupt, ib. 4. Where no Proof of the Title of the Assignees is necessary, 781. upon any personal contract, where entitled to sue suo jure, ib. upon any contract made with bankrupt after his bankruptcy, 782. when a defendant is estopped by his own admissions, ib. proof of a debt does not admit the validity of the commission, 783. difference in this respect between a creditor and an assignee, 784. what amounts to an admission by bankrupt of the validity of the commission, ib. plea of payment admits the title of assignees, ib. 5. Admissibility/ of the Depositions and Proceedings, 784. formerly not receivable in evidence, 785. may be recorded by order of the Lord Chancellor, ib. when office copies admissible, 786. depositions conclusive where commissioners had authority to inquire, ib. as, to prove the precise time of the act of bankruptcy, ib. the character in which the petitioning creditor claims his debt, ib. the amount of a debt proved, 787. whether admissible against a stranger to the commission, ib. not conclusive against the bankrupt, ib. but examination of the bankrupt evidence against himself, 788. so that of any other party, ib. but not the examination of a third person against a party to the suit, 789. nor the examination of liankrupt taken in a different bankruptcy against a creditor under his own commission, ib. nor any examination against a creditor no party to the inquiry, ib. deposition of a party not evidence/or himself, ib. where an old witness allowed to refer to his deposition, 790. as to right of opposite party to use the depositions on the trial, ib. no general right of inspection, ib. must come out of the proper custody before admissible, ib. whether the solicitor is bound to produce them, ib. Lord Chancellor may always order the production of them, 791. 6. Of the Comjictency of the Bankrupt and his Wife as Witnesses,'^. bankrupt not competent to increase the fund, ih. or support the commission, 793. even on cross-examination, i,b. incompetency under a second commission, 794. INDEX. 949 EVIDENCE —continued. Of the Competency of the Bankrupt and his Wife as Witnesses, incompetency confined to the affirming or disaffirming the bank- ruptcy, 794. how rendered competent, 792. must previously liave obtained liis certificate, ib. though uncertificated, may be called to diminish the fund, 795. when certificated, competent for any creditor barred by the certificate, ib. cannot, by pleading his certificate, be examined for a co-defendant, 796. unless plaintiff' enters a nolle prosequi, ib. bankrupt's ivife not competent to support the commission, ib. when she has been admitted to prove a fraudulent preference, 797. declarations of bankrupt before bankruptcy when admissible, ib. when his letters admissible, 798. 7. Of the Competency of Creditors, Sfc. 799. not competent to support the commission, or increase the fund, ib. but competent to defeat the commission, 800. creditor competent when he has sold his debt, ib. to a certain e.xtent in a commission against a member of parlia- ment, ib. petitioning creditor not competent to support commission, 801. alitbr, to defeat the commission, ib. a party alleging himself to be a creditor should nevertheless attend, ib. commissioner competent to support the commission, ib. so an assignee releasing his interest, 802. Evidence necessary in support of an action by an attorney on his bill, 891. EXAMINATION BEFORE COMMISSIONERS, of bankrupt. See " Bankriqit," 2, 3. power of commissioners to examine other persons, 155. incidental right of commissioners in examining a witness, 1 56, when their examination will be restrained, 157. party bound to answer, though it expose his own defective title, 157. but not compelled to criminate himself, 158. of creditors, 159. of assignees, ib. as to right of party examined to have counsel, 162. when examination admissible in evidence, 788.; and see " Evidence," 5. EXCHANGE, trafficking in, a trading, 29. EXCISE DUTIES, lien of the crown for, 494. only on those goods to which the duty attaches, 495. therefore a general warrant to levy on all goods illegal, ib. EXECUTION, against the person prevents plaintiff" from suing out commission, 100. distinction between a commission and an execution, 12,3. cannot be sued out after proof of debt, 186. but previous execution, where goods seized, not affected by proof, ib. against the body after the commission a conclusive election not to prove, 190. aliier, before the commission, 191. when money levied by bankrupt under a previous execution passes to assignees, 387. levied more than two months before the commission, good, 692. merely tested or delivered to sheriff' before bankruptcy, bad, 69J. 3 p 5 950 INDEX. EXECUTION — coutmutd. so II delivery of the warrant to a shopnum of bankriii)t, 693. relation of levy when the act of bankruptcy is by lying in prison^ ib. where the levy and the act of bankruptcy on the same day, ib. EXECUTION CUEDITOH, not preferred when judgment by default or confession, 196. 693.; and see " Addenda.'^ when he may oppose the certificate, 579. when put on the same footing as other creditors, 692. EXECUTOR ; and see " Trustee" " Truat Property." when liable to bankruptcy, 31. when not, 38. of a bankrupt, when he may sue out a commission, 92. before probate a good petitioning creditor, 99. mode of proof by, 195. when bankrujjt, cannot prove against his own estate without an order, 222. cannot prove if he has conunitted a devastavit, 223. what may be proved where he exceeds his authority in the employ- ment of the assets, 225. no proof allowed when he does not go beyond his authority, ib. where beneficially entitled to part of testator's property, how as- signees may sue, 226. and thougii he lias conmiitted a devastavit, his assignees nofe liable to refund, ib. where the husbanil of executrix admits assets, the amount may be proved, ib. where he pleads a false plea, costs not proveable, ib. 861. trust property does not pass to his assignees, 437. nor where his wife is an executrix, 438. where executor as well as residuary legatee, ib. where bankrupt entitled to administration, and neglecting to obtain it, remains in possession several years, this a case of reputed ownership, 439. as to proof by an executor of a creditor, 226. executor cannot sign a bankrupt's certificate twice, though he lias [)roved a debt in his own right, .')66. should not sign without consent oi' cestui que trusts, 567. where i)ankrupt executor of a creditor, cannot sign without an order, ib. not liable to costs in an action against a bankrupt, 618. 860. as to his right of set-otl^ 711; and see '' Set-off," 4. debt on simp/c contract will not lie against him by assignees, 740. of an attorney not liable for costs of the taxation of his bill, 887. need not deliver a bill a month previous to an action, 896. EXECUTORY CONTRACT, whether a covenant to renew or grant a lease passes to the assignees, 367.- not when lease for tiie personal acconunodation of bankrupt, 368. when bankru[)t has agreed to jnirchasc lands, assignees may elect to fulfil agreement, or not, 369. when he has contracted to sell lauds, assignees entitled to the benefit of the contract, ib. assignees may adopt any contract of bankrupt, though made after the act of bankruptcy, 370. EXHIBIT, when securities must be exhibited, 196. INDEX. 951 EXONERETUR, when ordered to be entered in discharge of bail, 602. EXPUNGING PROOF, power of commissioners as to, 146. 509. but does not prevent ah application to the Lord Cliaiicellor, 510. creditor ordered to refnnd dividend after, ib, when a proof may be expunged, ib. where indorsee discharges acceptor without consent of assignees of indorser, ib. but proof against the principal not to be expunged by discharge of the surety, 511. as to service of petition to expunge where creditor abroad, ih. EXTENT, binds from the teste of the writ, 490. 694. the debts, as well as the goods of bankrupt, 694. operation of against one partner, 491. when different property seized under. Crown has a right to elect out of which it will be satisfied, ib. goods seized under, and sold under a venditioni exponas^ assignees not concluded, 491. restrictions as to extents in aid, ib. to what debts their operation confined, 492. when an immediate debtor to the Crown may sue one, 494. bankrupt act not to affect the provisions of 57 G. 3. c. 54., 493. limiting clause of 57 G. 5. c. 54. intended to be repealed, ib. where an extent issues the same day on which the assignment is exe- cuted, the Crown preferred, 694., qucere tamen. preferred to the bargain and sale if issued before the latter isinroUed, 695. FACTOR, liable to bankruptcy, 26. when a good petitioning creditor, 92. possession of, not a case of reputed ownership, 426. though goods sold and reduced into money, if money be in different bags, 427. so if notes or bills received instead of money, ib. so buying stock for his principal, though in his own name, ib. where property substituted for the property of the principal, ib. though acting under a del credere commission, rights of principal not altered, 428. when principal should give notice to purchaser not to pay, ib. may now pledge goods or bill of lading to what extent, 467. 480. et seq. where bill of lading indorsed to him by a vendee merely to sell the goods, whether the vendor may stop in transitu, before the goods come to the hands of the factor, 469. assignees of, cannot perform the duties entrusted to him by his principal, 470. 480. has s. general lien for the balance due to him, 479. so upon the jon'c-c of goods sold by him, ib. but not to affect property delivered to him for a particular pur- pose, 480. no lien for a debt due before he became a factor, ib. 5 p 4 952 INDEX. FACTOR— continued. where goods consigned to him after an act of bankruptcy of his principal, answerable to the assignees, 691. when a purchaser may set off against the principal a debt due from the factor, 717.; and see " Set-off" 4, FALSE DEBTS, bankrupt privy to proof of, renders certificate void, 594. FALSE ENTRIES, in books or accounts by bankrupt render certificate void, 594. FALSE PRETENCES, when obtaining goods under, no ground for refusing the certificate, 585. FARMER, not a trader, 52. except when, 35. FEES, of commissioners, 146. FELONY ; and see " Bankrupt:'' " Attamde)" when bankrupt guilty of, for not surrendering, 507. omission must be wilfid, 509. when for removing, concealing, or embezzling his efiects, 514. bankrupt attainted of cannot be heard upon petition, 817. FEME COVERT; and see " Wifer when liable to bankruptcy, 21. commission issued against ground for a supersedeas^ 805. FIAT ; see " Commission." " Petition." FICTITIOUS DEBT ; see " False Debts." FICTITIOUS PAYEE, as to proof OH bill payable to, 244. FILING AFFIDAVITS, general order as to, 590. meaniui: of the term, 591. 841. FILING DECLARATION OF INSOLVENCY, an act of bankruptcy, 82.; and see " Act of JBun/aiijJtci/," 16. petition lo take benefit of insolvent act, an act of bankruptcy, 84. > and sec " Act of Bankruptcy" 18. FISHEllMAN, when a trader, 29. when not, 37. FIXTURES, what not within the enactment as to reputed ownership, 405. what are within it, 404. FOREIGN CERTIFICATE ; and see " Certificate," 6.] operation of, 605. el seq. should be specially pleaded, 618. FOREIGN COUNTRY ; see " yf5«gram-«<," 4. "Colonies." FOREIGN DEBT ; sec " Certificate" 6. " Colonics." FORFEITURE ON ALIENATION; sec " Assignment." "Lease." commission does not work, 124. FRACTION OF A DAY, where it will be noticed, 748. 773. FRAUD, upon the great seal, how dealt with, 19. l)uying for the purposes of, not a trading, 58. FRAUDULENT ARREST, an act of l)ankruptcy, 61, 62. ; and see " Act of Bankruptcy" 6. INDEX. 953 FRAUDULENT ATTACHMENT, the like, 62. ; and see " Act of Bankruptcy" 10. COMMISSION ; and see " Commission," 6. when a ground for a supersedeas, 808. COMPOSITION, an act of bankruptcy, 83.; and see " Act of Bankruptcy^ 17. CONVEYANCE, the like, 63.; and see " Act of Bankruptcy" 11. GIFT, DELIVERY, OR TRANSFER, the like, 75.; and see " Act of Baiikruptcy" 1,5. " Assignment," 61. IMPRISONMENT, the like, 61. ; and see " Act of Bankruptcy," 7. OUTLAWRY, the like, 61.; and see " Act of Bankruptcy " 8. SEQUESTRATION, the like, 62.; and see " Act of Bankruptcy" 10. SURRENDER, the like, 75. ; and see " Act of Bankruptcy" 12. FREIGHT, lien for, 486. ; and see " Ship-owner" FRIENDLY SOCIETY ACT, operation of how confined, 500. FULLER, inay be a bankrupt, 26. has only a special lien, 483. except by custom of the trade at Exeter, ib.' has no right of set-off" beyond his lien, 702. FURNITURE BROKER, may be a bankrupt, 27. FUTURE DEBTS, in what manner proveable, 212. immaterial whether a written security or not, ib. FUTURE EARNINGS, 551. See " Bankrupt," 5. FUTURE ESTATE, 610. See " Certificate;' 6. G GAMING ; and see " Certificate," 5. what loss by renders certificate void, 593. GAOLER, penalty on for escape, 534. GARNISHEE, when not liable to refund to assignees, 742. GAZETTE, 121. 141.; and see " Advertisement." " Notice." not sufficient evidence of notice, unless it can be inferred that the party has seen it, 423. GENERAL ISSUE, when it may be pleaded in action against commissioners, 166. GENTLEMAN PENSIONER, office of, assignable, 359. GIFT FRAUDULENT, an act of bankruptcy, 75. 439.; and see " Act of Bankruptcy," 13. GOOD WILL of bankrupt's business not assignable so as to bind him, 388. GRAZIER, exempted from bankruptcy, 54. gSi INDEX. GREAT SEAL. See " Chancellor." GUARANTEE, whether provcable where credit for goods has not expired, l;14. GUARDIAN, proof by, 195. H HABEAS CORPUS, the proper mode of proceeding when bankrupt desirous to be discharged from commitment of commissioners, 10. Lord Chancellor may issue writ in vacation, ib. as to remedy for bankupt's discharge by, 350. ; and see " Bunkrwpl" 4. HACKNEYMAN, may be bankrupt, 27. HALF-PAY of officer not assignable, 359. HEARING of petition to stay certificate, 592. HEIR, when bankrupt, lands subject to a specialty creditor, 181. 438. of assignee, when an infant, how ordered to convey, 12. 353. HERIOT passes to assignees, 385. HIGHWAY-RATES, assessment for a good petitioning creditor's debt, 95. HIRING, buying and letting to hire, a trading, 26. HORSE-DEALER may be bankrupt, 28. HOTEL-KEEPER HUSBAND AND WIFE ; and see " Wife," where a fe7ne sole marries after order for costs against her, as to the liability of the husband, 855. I ILLEGAL CONTRACT, claim to prove for money paid upon, how it operates, 308. ILLEGAL DEBTS, cannot be proved, 302. what debts not illegal, ib. debts tainted with usury cannot be proved, ib. what contracts are considered usurious, 303, 31)4. ; and see " Usury." debt arising from sale of goods for the purpose of illegal exportation not proveable, ib. so money advanced for the furtherance of any illegal contract, 305. if part of consideration good, and part bad, a security may be proved for amount of what is good, ib. whether an act of parliament infringed, a question of law, ib. where a broker acts in the same transaction both as broker and principal, the debt accruing to him is void, 306. contract to convey goods to an enemy's country illegal, 306. ILLEGAL TRADE, 304. IMPERTINENCE, affidavit taken off the file for, 842. INDEX. 955 IMPOUNDING A COMMISSION, i.3o. INDENTURE OF APPRENTICESHIP, disdiarged by bankruptcy of the master, 255. INDORSEMENT, ot" bills ofexcliaiigc. Sec " Jii//.s of Exchange.^' when Lord Chancellor cannot order bankrupt to indorse bills, 16. of bill of lading. See " BUI of Lading" INFANT, cannot be made a bankrupt, 20. 805. cannot be petitioning creditor, 111. 807. creditor mode of proof by, 195. heir of assignee, how ordered to convey, 12. .353. property of, not aftcctcil by reputed ownership, 417. not bound by omission to give notice to dispute the commission, 780. INJUNCTION; and see " Banlcrupl," VII. will not be "ranted arainst a bankrupt upon an application by bill, i j INNKEEPER liable to bankruptcy, 25. INSANE CREDITOR, mode of proof by, 195. INSOLVENCY, filing declaration of j an act of bankruptcy, 82. ; and see " Ad of Bank- ruptc7/" 16. INSOLVENT ACT, filing petition to take the benefit of, an act of bankruptcy, 84. ; and see " Act of Bankruptcy" 18. debt from person discharged under, will support a conunission, 92. uncertificated bankrupt cannot be discharged under, till when, 612, INSOLVENT COURT, bill for business done in, must be delivered a month before action, 899. INSPECTOR, when appointed, 51G. INSURANCE ; see " Policy." produce of insurance as to separate interest in joint property, 642. INSURANCE BROKER, has a general lien on all policies in his hands, 482. except when knowing his principal to be merely an agent, ib. m that case only a lien for the charges of the particular policy, ib. as to right of set-oft' against the underwriter, 714. no right where he does not act under a del credere commission, 715, nor if he does so act, where he discloses the name of his principal, iA. right of set-off in respect of his lien, ib. INTEREST, debt composed partly of, not sufficient to support a commission, 90. when proveable on bills and notes, 26.5. 269. only proveable when arising by contract, 269. how contract to pay it evidenced, ib. not allowed beyoncl the penalty of the security, ib. a mere depositary not chargeable with, 270. compound not allowed, ib. except on a contract to pay it, ib. only proveable up to date of commission, ib. though surety compelled to pay interest subsequent, 271. 295. where creditor agrees to allow discount on prompt i)ayment, 271. subsequent interest allowed when a surplus, subject to certain priorities, ib. 956 INDEX. I NTEREST — continued. as to the rights of the several classes of creditors, 212. not to diminish the bankrupt's allowance, ib. separate creditors not entitled till joint creditors paid 20*. in the pound, 272. creditor's claim to preferred to claims of joint or separate estates on each other, 275. personal estate to be applied towards payment of, before real estate, ib. allowable by commissioners withont an order, ib. when creditor not barred of claim to, ib. when creditor entitled to interest on his dividend, ib. INTERLOCUTORY COSTS, solicitor has no lien on, 876. INTERPLEADER, when bill of will lie against the bankrupt, 555. INVENTORY, when should be taken of bankrupt's effects, 170. IRELAND, prior separate commission there no ground for superseding joint com- mission here, 130. when part of bankrupt's property in, 170. property in passes to assignees, 399. ISSUE, when directed, 584. 602. 622. 821. 826. J JEW BROKER, place of not assignable, 360. JOB-MASTER liable to bankruptcy, 27. JOINT CERTIFICATE, when advertised as separate, 577. JOINT COMMISSION, 128. 812.; and see " Commission," 4. effect of, 630. ct seq. ; and see " Partners" 1. JOINT AND SEPARATE DEBTS, 643. 708.; and see "Partners," S. " Set-off" 3. 6. JOINT CREDITORS; and see " Partners," 4. proof by, 646. JOINT STOCK COMPANY. See « PiMic Company." JOINT TENANCY, how bankruptcy operates upon interest of in lands, 551. JUDGE'S ORDER, does not prevent a petition for a suj)ersedeas, 818. JUDGMENT CREDITORS, not preferred to others as to proof, 196. except when, ib. JUDGMENTS, not proveable if not signed before commission, 197. although verdict before bankruptcy, ib. proveable if signed before commission, ib. where, even after commission, by relation, ib. do not operate on bankrupt's lands unless execution taken out, 551. JURISDICTION of Lord Chancellor, 5. ; and see " Chancellor^* INDEX. 957 JURISDICTION — continued. of Vice-Chancellor. See " Vice-Chancellor." of Commissioners, 143.; and see " Commissioners" K KEEPING HOUSE, 5.5. ; and see « Act of Bankruptcy:' KING; and see " Crowns " Extent" not bound by bankrupt law, 490. L LABOURER, exempt from bankruptcy, 34. LAND, buying and selling not a trading, 31. LANDLORD. See " Rent." LAND TAX, 494. LEASE, whether a covenant to grant or renew passes to assignees, 367. not when the lease is for the j)crsonal accommodation of bankrupt, 368. passes to assignees, though containing a proviso not to assign, 390. this condition not forfeited by bankruptcy, 124. alith; if proviso be to re-enter if lessee '\s found a bankrupt, 390. or where the term depends upon his actual occupatio7i, 391. does not vest in assignees, unless they assent to take the term, 393. an express act of the assignees necessary to show their assent, 599. what acts amount to an acceptance, 393. et seq. what acts do not amount to an acceptance, 395. assignees may get rid of their liability by assigning, 395. compellable to elect whether they will take the lease or not, 396". but allowed a reasonable time, 397. when assignees neglect to determine, qucere whether bankrupt lessee can apply for an order on them to elect, ib. extent of the Lord Chancellor's jurisdiction in this respect, 395,396. where order made on assignees to deliver up lease, though in hands of third person, ih. assignees bound by the covenant of lessee as to leaving hay, straw, &c., 397. when entitled to ofF-going crops, 398. parol agreement for a lease not within the statute, ib. certificate not a protection against bankrupt's liability, unless assignees accept the term, ib. or the bankrupt deliver the lease up to the lessor, ib. this exception only extends to cases between lessor and lessee, 599. and not to cases between lessee and assignee of the lease, z'i. bankrupt's liability as lessee not renewed, though he comes in afterwards as assignee of the term, 600. LEGACY, given to bankrupt before certificate passes to the assignees, 385. except where bankrupt owes testator a larger sum than the amount of the legacy, ib. LEGATEE, when permitted to prove, 223. 958 INDEX. LEGATEE — continued. may prove for a vested legacy if he has attained twenty-one, 225. if not of age, may prove by guardian, ? meaning of this contract, ib. when goods sold once actually delivered, the property changed, 415. delivery cannot be qualified by secret stipulation, ib. a control over the goods equal to a delivery, ib. quc£re, as to property removed by real owner from bankrupt's possession on the eve of bankruptcy, 416. interest in a newspaper assigned, without an affidavit of the change of interest, within the statute, ib. so assignment of share in a public company, share remaining in name of the bankrupt, ib. so of a patent, where patentee continues to use the invention, 417. possession of bankrupt must be with consent of true owner, ii). property of infants not affected by reputed ownership, ib. where a secret j)artner, all the property passes to assignees of ostensible partner, 418. where property cannot be delivered, not within the statute, ib. as ships at sea and their cargoes, ih. ; and see " Ship." so where best delivery made that circumstances admit, 422. when a chose in action assigned, the security must be delivered up, ib. money in hands of a third person already drawn for by bankrupt, not a case of reputed ownership, 425. nor accommodation acceptance in hands of drawer, ib. nor the possession of a carrier, ib. INDEX. 9Y7 REPUTED OWNER — continued. What Possession is within the Statute. nor where bankrupt permitted to occupy his house and furniture as the agent of assignees, 425. nor goods coming to bankrupt's possession after his bankruptcy, 425. nor possession of goods for a specific jmrposc, ib. or of money, if kept apart from his general property, ib, or of a banker's cheque, 426. qucBre, where a bankrupt uncertificated bought his own stock, and con- tinued in possession four years, 424. 3. Possession as Factor, Banker, or Broker, 426. For the particulars under these different heads, see the respective titles in the Index. 4. Possessio7i as Trustee, Executor, or Administrator, 435. For particulars see titles in Index. RESPONDENTIA BOND, obligee allowed to claim under before contingency happens, 307 RETAINER, when it may be pleaded to debt on bond, 740. RETURN. See " Habeas Corpus." REVERSIONS, pass to assignees, 361. REVOCATION; and see " Devise." of cl6visG 124, RIGHT OF ACTION. See " Action." S SALE, of mortgaged property, 1 98. et seq. of the bankrupt's property by the assignees, 331, SALE OR RETURN ; and see " Reputed Owner." as to goods consigned on, 414. meaning of the contract, ib. SALESMAN, of cattle or sheep, a trader, 26. SCANDAL, in petitions, how dealt with, 836. SCHOOLMASTER, not liable to bankruptcy, 35. SCIRE FACIAS; and see "Actions," 3. when it lies by assignees on a judgment and execution obtained by bank- rupt, 387. 754. not when defendant brings a writ of error, 755. when judgment on recovered by bankrupt, assignees need not bring a new scire facias, 754. when it lies by assignees to try the bankruptcy after a levy by the bankrupt subsequent to the bankruptcy, 755. SCOTLAND ; and see " Certificate," 6. « Assignment," 4. where part of bankrupt's property in, 1 70. property in passes to assignees, 399. effect of discharge under sequestration obtained in, 607. decisions of courts in, as to composition contract, 815. SCRIVENER, liable to bankruptcy, 23. when an attorney considered a scrivener, 23. when not, 24. 3 R 978 INDEX. SEALING COMMISSION, ill.; and see " Commissioji:' SEARCH WARRANT; and see " Messenger." when granted, 170. SECOND COMMISSION, 126.; and see ^' Commission;' 5. same petitioning creditor cannot sue out without leave, 122. proof under, how it operates, 187. operation of certificate under, where first commission superseded, 610. where certificate pleaded under, what bankrupt bound to prove, 619. what plaintiff must prove to defeat it, ib. when superseded, 810. SECRET PARTNER, 7 1 0. Sec « Dormant Partner." SECRETARY OF BANKRUPTS, duty to search for any former certificate, 576. SECURITY, proof by creditor holding, 118. ct seq. ; and sec " Proof" 1 . must be produced, 1 96. may be sold upon application of the assignees, 179. 199. where creditor has two demands, when it may be applied to reduce the one not proveablc, 210, for costs, when required, 861.; and see " Costs" 5. SEIZURE. See « Messenger." SEPARATE COMMISSION, 129. et seq. 812. ; and sec " Covimission," 4. effect of, 630. et seq. ; and see " Partners" 1 . SEPARATE CREDITORS, proof by, 654. ; and see " Partners" 5. SEPARATE DEBTS, 643. ; and sec " Partners," 5. SEQUESTRATION, fraudulent, an act of bankruptcy, 62. when a Scotcli sequestration preferred to an English commission, 127. 400. question of depending in the Scotch courts, no ground for staying certificate, 581. effect of discharge under one obtained in Scotland, 607. of a living, when a clergyman bankrupt, 360. SERJEANT AT fvIACE, office of not assignable, 359. SERVANTS, wheti master bankrupt, entitled to six months' wages, 234. must prove for the residue, ib. SERVICE; and see « Petitions." of petition to stay certificate, 589.; and see " Certificate" 4. of petition f -r a supersedeas, 820. 82'1. ; and see " Siqwrsedeas" 3. of petitions in general, 311. 840. of an order on a petition, 844. SET-OFF, 1. Of the Right of Set-off generally in Banhrtiptcy, 698, provision of the new statute as to mutual credit, and mutual debts, ib. every proveablc debt may be set off with one restriction, ib. alterations in the former law, 699. origin of right of set-off in bankruptcy, Ht. more extensive in bankruptcy than under the general statutes, 700. 2, Construction of the Term " Mutual Credit" and herein of Cases of Trust and Deposit, 701. nmtual credit confined to a case where the party has a lien for his general balance, ib. or where tiic credit given must termuiate in a debt, ib. not extended to a mere deposit of property, with no authority to turn it into money, 705. INDEX. 979 SET-OFF — continued. Construction of the Term " Mutual Credit," ^c. distinction between lien and set-off, 703. where a trust between two parties, the object of the trust being the sa/e of goods, this a case of mutual credit, 704. as in a joint adventure to buy and sell pearls, il>. so a bill of exchange deposited to pay for goods, ib. or insurance broker, entrusted with a policy, to receive a loss, 705. acceptance of a bill, though not due till after bankruptcy, within the meaning mutual credit, 106. so an acceptance in the hands of a third person, 708! so a constructive delivery of goods, 707. not a bailee for a special and limited purpose, ib. 3. As to joint and separate Debts, 708. no set-ofF allowed between them for what reason, ib. where a joint debt may be set oft' as a separate debt, 709. joint and several bond may be set off against a separate debt, 710. so a separate debt from one partner against a joint debt, ih. when a debt due from the principal firm against a demand on a note by a minor firm, ib. where some partners only of a firm become bankrupt, the enactment as to mutual credit does not apply, ili. 4. Of Set-off between particular Persons, 711. executor cannot set off a debt due to him as executor against a debt due from him on his private account, ib. I)ut when he admits assets, a debt to iiim on his private account may be set off against a legacy payable by him as executor, i^. so he may set off a debt due to his testator against a legacy be- queathed to the debtor, ib. a trustee cannot set off a debt due to him on account of his trust against a debt due from him in his own right, 712. but in an action by a trustee, defendant may set oft" a debt due from the cestui que trust, ib. when directors of a piiblic company cannot set off" a debt, due in respect of a loan, against a demand for the amount of the stock, ib. when they are entitled to such set-off, 713. debt due to or from the wife, dum sola, cannot be set off in an action by or against the husband, ib. but a legacy given to her during her coverture may, 714. when insurance broker may set off' against the underwriter, ib. when not, 715. not where he discloses the name of his principal, ib. may have the same set-off in respect of a lien, ib. undcnuriter may set off premiums due before the bankruptcy against a loss accruing afterwards, 716. where a purchaser may set off a debt due from 2l factor against the claim of the principal, 717. where a pawnee of goods for the money advanced to the factor, 718. owner redeeming goods may set off against assignees of the factor, 718. 5. Of Set-off on Bills and Notes, ib. ; and see " Bills and Notes." 6. Of an Equitable Set-off, 720. upon an usurious contract, though void at law, 721. where a separate debt may be set off against a joint and several one, ib, or against a joint debt to prevent circuity, 722, 723. 3 R 2 980 INDEX. SET-OFF — continued. Of an Equitable Set-off. when an agent allowed to set off costs of a reference against the pro- ceeds of goods, 722. 723, costs in equity may be set ofFthough not taxed before bankruptcy, 724. 7. Of the Mode of balancing the Accounts, ih. may be done either by commissioners, or on the trial of an action, ib. whether an account can be disputed after being liquidated before the commissioners, ib, how interest to be calculated, ib. SETTLEMENT. See " Marriage Settlement:' SHEEP SALESMAN, a trader, 26. SHERIFF ; and see " Actions," 2. when action lies against, for not paying over money levied to assignees, 588. when liable to action of trover by assignees, 746. not liable in trespass before assignment, ib. what amounts to a conversion by him, 747. when he will be safe from the claims of the assignees, ib. when the Court will assist him, 74 8. proper course to be pursued when parties refuse to indemnify him, 749. if he voluntarily take a part, Court will not interfere, ib, as to his right to jwundage where he levies after the bankruptcy, 750. when not compellable to return writ without indemnity, ib. SHIP, where captain of refuses to deliver up goods on board to messenger, 173. at sea, what necessary to constitute a legal sale of, 418. bill of sale to be delivered to purchaser, ib. requisitions of the registry act to be complied with, 419. have relation back to the bill of sale, 691. bill of sale passes absolute property in, ib. power of attorney to sign an indorsement on register not revoked by bankruptcy, ib. where purchaser can take possession, he must do so, 419. sufficient when before the bankruptcy of vendor, ib. if ship in foreign port, actual possession need not be taken, 420. port of Dublin considered a foreign port, ib. when a share of only sold, delivery of bill of sale sufficient, ib. contracted to be built by bankrupt, and actually registered in name of pur- chaser, not within the statute as to reputed ownership, though not completed by bankrui)t, ib. alitcr, a barge built but not delivered, 420. when a purchaser, though not entitled to ship, entitled to a policy of in- surance, 421. wnen, though registered in name of one partner, it forms part of joint estate, ib. where held to belong to the separate estate, 641. executory contract for sale of, within the registry act, 841. mortgage of, not a case of reputed ownership, ib. lien on for repairs, &c. ceases, when possession parted with, 484. unless repairs, &c. take place abroad, 485. but master has no lien on for money expended for repairs, ib. though he can hypothecate for them, ib. nor any lien for his wages, 486. nor on the freight, ib. INDEX. 981 SHIP — continued. but a consignee of a ship, to whom the register is delivered, has a lien for repairs, &c., 486. produce of insurance as to separate interest of joint owner, 642. SHIP-OWNER, when liable to bankruptcy, 27. has a lien on the cargo for the freight, 486. but not for a claim for dead freight, ib. nor any lien on the freight where he parts with the actual possession of the ship, ib. but the mere occujiation of ship by the freighter, without any demise of it to him, will not prevent the owner's lien, if). part-owners have no lien on the share of another part-owner, 487. SHIPWRIGHT, a trader, 25. where he gives a certain credit, has no lien except by special agree- ment, 484. SHOEMAKER, may be a bankrupt, 27. SHORT BILLS; and see " Banker." in hands of a banker, must be given up by his assignees, 16. 429. SIGNATURE, of certificate, 562. 572.; and see " Certificate" 1, 2. of petition, 588, 837. SIX CLERKS OFFICE, place of a sworn clerk in, not assignable, 359. SMITH, a trader, 27. SMUGGLER, may be bankrupt, 28. SOLICITOR, when liable to bankruptcy, 23. when a debt on his bill will support a commission, 91. when a country commission may be directed to attornies, 115. 1. Of his general Rights and Duties, 865. how the solicitor to the commission nominated, ib. bound to protect the bankrupt's estate, ib. ought not to act as solicitor for the bankrupt, 866. or as a commissioner, 147. 866. or as banker to the estate, 866. or to purchase any part of bankrupt's property, ib. rules to be observed by in siling out commission, ib.; and see 106. ct seq. bound to produce the proceedings when legally required, ib. whether so bound on a sid)j}cena duces tecum, 790. 868. or when the production may prejudice the assignees, 868. should be ready to produce them, if ordered by the Court, 869. no lien on them, except when commission superseded, ib. as to the production of other papers, ib. must give up bankrupt's papers to assignees, when no lien on them, ib. when privileged from, arrest, 870. when called upon to explain his conduct, ib. cannot execute the bond to the Chancellor for an infant, ib. must pay the commissioners their fees, ib. when liable to the messenger, 174. 870. ought not to withdraw a petition without leave, 871. 982 INDEX. SOLICITOR — continued. Of his general Rights and Duties. cannot take a bond, &c. from his client during pendency of a suit, 866. but may when suit terminated, 867. attorney in a cause cannot be changed witliout leave of the Court, ib. but the solicitor in a cause may be, ih. 2. Of his Lien for Costs, 871. has a lien upon all deeds of bankrupt deposited before the bankruptcy, ib. but not for those deposited after, ib. though lien attaches for business done after as well as before, 872. lien goes to his personal representative, ib. how far lien on papers in a suit extends, ib. as to the lien of an agent to a country attorney, ib. what is a waiver of lien, 873. taking security for his bill, ib. entering into a sj)ecial contract for payment of it, ib. obtaining an order to prove, ib. extent of lien on deeds, &c., ib. no lien on papers deposited for a particular jiurpose, 872. nor on those which come to his possession by accident, as against the other party, 87.5. nor on his client's tuill, ib. nor upon documents in his possession as steward of a manor, ib. lien extends to money in his hands, 874. and to an estate recovered in a suit, ib. so to money in the hands of the sheriff^ ib. or to a sum awarded by an arbitrator, ib. or to costs ordered to be paid, ib. but on a fund decreed only a particular, and not a general lien, 875. and the same with respect to an agent, ib. no lien on a fund in Court, when he declines to act any further, ib. as to lien in setting ofi" costs in diiferent actions, ib. uiilerencc in the practice of the Courts in this respect, 876. when no claim on a defendant compromising plaintiff" 's demand, ib. contra m exchequer, 877. no lien on interlocutory costs, 876. or on a defendant's I'ody, 877. must have a regular authority before he can claim a lien, ib. 3. Of the Taxation of his Bill, and his Eemedy for Payment of it, ib. how costs of a conuuission are to be taxed, ih. where no conunission subsisting, 878. where of course to refer a bill for taxation, ib. who liable to solicitor where no assets, 879. how bound to appropriate a general payment, ib. when guilty of a contempt, order refused to tax his bill, ib. no claim for costs of suit carried on without due authority, 880. only one solicitor recognised under a commission as to any claim for costs, ib. bill may be taxed after commission sued out u[)OU it, ib. bankrupt's solicitor cannot charge estate with costs incurred after the bankrsptcy, ih. bill cannot l)e taxed upon the trial of an action, or after a judgment recovered on it, ib. nor after an account settled, 881. except in a case of fraud, ib. INDEX. 983 SOLICITOR — conthmed. Of the Taxation of his BUI, and his Remedy for Payment of it. or when settled daring pendency of a cause, if taxation applied for by other persons, 881. when a bill is taxable, ib. though part for conveyancing, if other part for business in Court, 882. so when part is for holding courts of a manor, ib. when action brought on bill in any Court, that Court may refer it to be taxed, ib. when two separate bills are delivered together, ib. bill for business at the quarter sessions, ib. or in the court of great sessions in Wales, ib. charge for preparing affidavit of debt renders the whole lull tax- able, ib. or for |)reparing a warrant of attorney, il. or suing out a dedimus j)otestatum, ib. bill taxable after the attorney's death, ib. when not taxable, 88.3. if the ivhole is for conveyancing, 881. or for prosecuting an appeal to the House of Lords, «S3. or for preparing an affidavit (not sworn) of a petitioning creditor's debt, where no commission issued, ib. or for business transacted for a charitable foundation, where the bill not signed by the attorney, ib. where a third person applies who has agreed to pay the bill for the client, ib. where the party agrees to pay the attorney a sum certain, quare, ib. bdl of an agent taxable on application of the country attorney, 881. mode of compelling an attorney to deliver his bill, ib. after once taxed, a bill not retaxable, ib. nor can the amount be questioned in a suit in equity, 885. bound by delivery of a former bill, ib. when he may proceed to tax his bill after cause settled without his con- currence, ib. as to the costs of taxation, ib. client liable for, when less than a sixth deducted, ib. course in bankruptcy the same, 886. where the attorney previously agreed to accept a less sum than the amount of the bill, ib. when the disallowance is of certain expenses not objectionable in their nature or amount, ib. when items are charged in respect of a retainer not proved, ib. when deducted because facts alleged are not established, ib. executor of attorney not liable for costs of taxation, 887. where an attorney ordered to pay interest besides costs of tax- ation, ib. when entitled to costs of taxation, he should demand them at the time, ib. 4. Of Actions and other Proceedings by and against the Solicitor, 887. bill must be signed, delivered, and left with the party a month before action brought, 888. delivery at party's counting-house insufficient, ib. but to one of several assignees sufficient, ib. bill for obtaining a bankrupt's certificate must he delivered, ib, ■5 R 4 984 INDEX. SOLICITOR — continued. Of Actions and other Proceedings by and agaiiist tJie Solicitor. so for business done in the insolvent court, 899. action may be brought for business done under a commission, though bill not taxed, 889. or though the attorney is not a solicitor in chancery, ib. but assignees not liable as defendants for costs of issuing commis- sion, ib. commission being fruitless does not prevent the right of action, ib. when a solicitor restrained by injunction from negotiating a note, ib. where a sixth taken off bill, solicitor cannot sue without deducting costs of taxation, 890. an attorney may support a commission on his bill, though not previously delivered, 91. 890. or though pending an order for the taxation of it, ib. so he may in like manner set off" the amount of it, 893. solicitor not liable in general to bankrupt for suing out commission against him, 890. but liable to be petitioned against for the commissioners' fees, ib. or to account for property received under the commission, 891. attestation to petition by solicitor in his own behalf dispensed with, i6. when action brought before a month, how to be taken advantage of, ib. bill need not be delivered a month previously by the executor of an attorney, ib. but the Court will refer it to be taxed, ib. evidence necessary in support of an action on the bill, ib. in an action for ivords, proof that plaintiff acted as an attorney is suffi- cient, 893. whether an attorney can recover for money actually cx])endcd without the previous delivery of his bill, ib. if one single taxable item in a bill delivered, the delivery must be strictly within the statute, 894. though the other items are even tiot connected with the business of an attorney, ib. where no bill delivered, qucere, whether an attorney can recover for any part of his demand, connected with his character of an attorney, ib. may recover for payments not referable to that character, 895. an agent need not deliver his bill to support his right of action upon it, ib. where an attorney brings an action pending an order for taxation, 896. attorney cannot sue for business done entirely by his clerk, ib. after verdict Court will not stay the 2^ostca to have the bill taxed, ib. solicitor may sue in equity for the amount of his bill, if business done in the same court, ib. aider his executor, 897. 5. Of his Liability for Misconduct, and herein of his general Liability, ib. how punishable when he improperly lends his name, ib. for suing out a fraudulent commission, 103. 897. taking upon himself inconsistent characters under a commission, 898. how an ap|)lication for his removal must be made, ih. not amenable for attesting a petition whilst in prison, ib. when chargeable with costs, ib. falsely describing the commissioners, ib. improperly striking a second docket, 899. suing out a concerted commission, ib. neglect to obtain commissioners' signatures to certificate, ib. presenting an unnecessary petition, ib. INDEX. 985 SOLICITOR — continued. Of his Liability for Misconduct, and herein of his general Liability. reciting petition verbatim in aflicUivit of service, 899. making a scandalous affidavit, ib. refusing to deliver up the proceedings, ib. when not chargeable, 900. when chargeable in other proceedings, ib. when liable to an action for damages, ib, when not liable, 901. fatal variance in action against, 902. may make himself personally liable, ib. SOLVENT PARTNER. See " Partners." SPECIALTY CREDITOR, right of against the heir of his debtor, 181. STAMP ; and see " Probate." objection to a bill of exchange for want of, 245. STAMP DUTY, taken off proceedings in bankruptcy, 383. 777. STATUTE, does not operate upon bankrupt's lands, unless execution taken out, 351. STATUTE OF LIMITATIONS. See " Limitations." STAYING OF PROCEEDINGS, under a commission, when granted, 1 14. in an action against commissioners, 161. STEWARD, to the King, or an inn of court, not liable to bankruptcy, 35. STOCK, buying and selling, not a trading, 37. when Lord Chancellor may order transfer of, 12., when bond to transfer upon request, how amount of proof regulated, 221. when proof regulated by the price at date of the commission, ib. 236. mode of calculation when stock to be replaced by instalments, ib, when trustee bankrupt, may be transferred to new trustee, 222. how stock of bankrupt may be transferred to assignees, 385. when it will be ordered to be transferred into name of accountant- general, 384. within the enactment as to reputed ownership, 405. when it does not pass to a factor's assignees, 427. comes within the description " goods and chattels," 441. STOCK-BROKER, whether liable to bankruptc}', 22. 38. STOCK-JOBBING, when it renders void the certificate, 593. STONE-QUARRY, working and selling from, when a trading, 30. when not, 36. STOPPAGE IN TRANSITU, 449. assignment does not pass goods liable to, ib. origin and nature of the right of stoppage, ib. can only be exercised when vendee proves insolvent, 450. 1. As to Questions between Consignor and Consignee, 451. when goods delivered to a common carrier, or on board a general ship, may be stopped, ib. though such delivery is by the appointment of the consignee, ib. so where delivery to a packer or ivharjinger to be forwarded, 452. so plate delivered to an engraver, ib. 986 INDEX. STOPPAGE IN TRANSITU — cow^mwed. As to Questions between Consignor and Consignee, alittr, where buyer uses the warehouse of the carrier, &c.j as Ms own, 452. or where there is a symbolical delivery, ib. as of the key of a warehouse, or of clock warrants, 455. or where consignee on arrival of goods, puts his mark upon them, «6. a mere/>nor claim by consignee does not prevent the right, ib. or the mere payment of freight, ib. but right defeated by delivery to vendee's agent, ib. or where vendor gives a delivery note on the wharfinger, and nothing remains to be done to complete the sale, 454. contra where something remains to be done, ib. where goods remain in vendor's warehouse at a rent, cannot be stopped, except in what case, 455. transitiis determined where a j)art delivery, except when, ib. where a delivery on board a ship in possession of vendee, ih. but this subject to the laws of a foreign state, 456. and of no effect where vendee has no actual control over the ship, ib. by delivery to vendee at a wharf, and goods then shipped, 455. no right where cargo pledged,and bill of lading indorsed and delivered, 456. right continues till the performance of quarantine, 457. qucere, whether vendee may meet goods upon the road, and determine the transitus, ib. right not defeated by vendor handing over shipping note and delivery order to the wharfinger before arrival of the goods, 458. may be exercised without taking actual possession, ib. delivery by mistake, after notice to the carrier not to deliver, does not change the property, ib. an injunction not granted to stop in transitu, ib. consignor may reserve to himself the right of determining when he will part with all control over the goods, 459. goods in the king's warehouse, or their proceeds, may be stopped, i6. right not barred by payment of part only of the price, ib. nor by an acceptance of a bill jn-oved to be dishonored, ib. where the transaction is in effect a sale, consignor mtiy stop, 4 GO. but a mere agent, who is neither vendor nor consignor, cannot, ib. a lic7i on goods does not give the right of stoppage, ib. money remitted for a particular purpose may be stopped, 461. but not a general remittance from a debtor to his creditor, ib. consignor may stop goods, though consignee jointly interested, ib. so an alien enemy trading under a licence, ib. vendor when paid cannot stop against a subsequent vendee, ib. right not defeated by any usage among carriers, ib. 2. As to Questions between Consignor and Third Persons, after Resale or Alienation by the Vendee. how such right till lately depended, 4G2. alteration of the law in this respect, ih. holder of the bill of lading now deemed the true owner, except when, jA. sale by an agent valid, except in what case, 463. as to right of consignor, when consignee assigns the bill of lading, ib. ; and see " B'dl of Lading." right of stoi)page not to defeat the rights of third persons, 466. as where a delivery order is partly acted on, and goods sold to a second purchaser, ib. or where the second sale is with the assent of the original vendor, 467. INDEX. 987 STOPPAGE IN TR\NSITU — continued. As to Questions betiueen Consignor and Third Persons, SfC. but a resale by vendee, never in possession of the bill of lading, does not destroy the vendor's right, 467. right of stoppage now defeated by factor pledging the goods, or the bill of lading, ib. aliter, where the consignor has not indorsed it, 468. quccre, where vendee has transferred the bill of lading indorsed to his factor, merely to sell the coods without any specific pledge, 469. STRANGERS TO THE COMMISSION, Lord Chancellor's jurisdiction over, 14. whether depositions admissible in evidence against, 787. STRIKING DOCKET, 106. SUBMISSION TO ARBITRATION, not revoked by a commission, 124. SUBPCENA DUCES TECUM, 790. 868. SUITS BY AND AGAINST ASSIGNEES, 726. See " Actions: SUMMONS, power of commissioners as to issuing, 1 53. SUNDAY, denial on, not an act of bankruptcj', 58. SUPERSEDEAS, when commission superseded at the Bankrupt Office as of course, 123. when superseded, creditor restored to his right of election, 184. petition pending for, not a good ground for staying certificate, 581. when first commission superseded, how certificate operates under a second commission, 610. 1 . Of Applications for a Siqyersedeas by the Bankrupt, 803. when a commission will be superseded, ib. power of superseding discretionary in the Lord Chancellor, 804. commission may be superseded, though strictly unimpeachable, ib. grounds for the application, ib. delay in prosecuting commission, ib. bankrupt being an infant, 805. or a feme covert, ib. not a trader, ib. where not estopped from applying on this ground, tb. insufficient act of bankruptcy, 806. when this a cause only for suspending the advertisement, ib. preference of petitioning creditor, ib. petitioning creditor being an infant, 807. iiisufficiency of his debt, ib. where it accrues subsequent to act of bankruptcy, ib. where barred by statute of limitations, ib. petitioning creditor having bankrupt in execution, ib. commission fraudidently or vexatiously issued, 808. issued tor a different object, 809. country commission not having names of two barristers, \h. commissioner being a creditor, 810. want of prosecution, ib. two commissions pending, ib. third commission, 812. separate and joint commission pending, ib. consent of creditors, 81.3. but not a mere offer to satisfy creditors, 812. composition contract, 813. 988 INDEX. SUPERSEDEAS — continued. Of Ajjjilications for a Supersedeas by the Bankrupt. general order as to the holding of the meetings, and the conduct of the commissioners, 814. decisions of the Scotch courts respecting it, 815. bankrupt cannot apply for supersedeas before surrender, 816". except when, ib. bankrupt attainted cannot petition, 817. but a commitment by commissioners does not wholly incapacitate him, ib. not precluded by a Judge's order, 818. what are no grounds for applying for a supersedeas, ib. misnomer, when he hatl used the wrong name, ib. where the name is idem sonans, ib. misdescrijjtion, where well known, ib. what a valid objection for this cause, ib. mere ^j?oAai«727t/ that bankrupt is not a subject for a commission, 819. 2. Of Applications for a Supersedeas by other Persons, ib. by 2}etitioning creditor, ib. misnomer of bankrupt a good ground, when an existing commission by his right name, 820. petition must be served upon bankrupt, ib. any other creditor may petition, ib. but must first discontinue an action at law, ib, in case of tampering with bankrupt, petition dismissed, 821. after certificate cannot, in general, petition, ib. but this rule not applicable to any case o^ fraud, 822. preference of petitioning creditor a good cause for application, ib. so where the act of bankruptcy is concerted, ib. or where there is unreasonable delay of the petitioning creditor, 823. as to applications by assignees, ib. 3, Practice iqion Petitions to siq^ersede, 824. when notice to creditors necessary, ib. service of petition on bankrupt, ib. affidavit of service, ib. when party applying to supersede will be left to his action, ib. when commission will not be superseded on petition, ib. when matter referred back to commissioners, 825. proceedings must be produced, ib. bankrupt not permitted to inspect them, ib. when an issue will be directed, 826. when petition ordered to stand over, ib. affidavit accounting for delay of trial, ib. when a particular required of the act of bankruptcy relied on, ib. when an action directed, 827. bill of discovery cannot be filed without leave, ib. when a commission granted to examine a witness abroad, ib. proceedings ordered to be suspended when action brought, ib. when petition dismissed without any counter-petition, ib. when supersedeas will not be delayed, ib. new trial refused after concert found, 828. when the parties will be ordered to be examined, ib. mode of applying for a new trial, ib. when petitioning creditor will be ordered to defend, 82y. commission cannot be superseded before sealing, ib. bankrupt may petition in forma pauperis, ib. INDEX. 989 SUPERSEDEAS — continued. Practice upon Petitions to supersede. Vice-Chancellor's authority as to the supersedeas, 829. what required when sales have taken place, ib. 4. Effect of the Supersedeas, 830. mere order for supersedeas ineffectual, ib. supersedeas inoperative before delivery to messenger, ib. general effect of supersedeas under former law, ib. title of purchasers now not impeachable, except in what case, 851. indemnity of persons when commission superseded, ib. creditor may afterwards proceed with a previous action, 832. Lord Chancellor's jurisdiction not determined by the supersedeas, 12.832. contract of sale under a superseded commission cannot be enforced under a second, 833. 5. Of the Writ of Procedendo, 833. ; and see " Procedendo." SUPPLEMENTAL PROCEEDINGS, certificate, 574. petition, when necessary, 841. affidavit, when permitted. 111. warrant, 528. SURETY ; and see " Annuities." « Bills of Exchange." creditor may take out commission against, 9 i . not estopped by proof of the creditor from suing bankrupt, 187. 1. Rights of a Creditor against the Bankrupt Surety, 285. how right to prove against the surety depends, ib. where engagement absolute, creditor may prove as of course, ib. deducting what he has already received, ib. when the engagement contingent, cannot be proved before contingency, ib, but proof may be against bail, though not fixed till after bankruptcy, ib, where surety discharged by creditor taking a collateral security, &c. 288.310. but discharging surety no discharge of principal or co-surety, ib. and though creditor compound with principal, he may stipulate to re- serve his remedy against the surety, ib. surety still liable on bond for performance of covenants in a lease, though principal discharged by bankruptcy, ib. surety not bound unless agreement contain the consideration for the pro- mise, 289. 2. Rights of the solvent Surety against the Bankrupt Debtor or Co-surety, disabilities of the surety under the former law, 289., et seq, removed by new statute, 291. may now stand in place of the creditor, or may prove himself, ib, bail have the same privilege, 292. but surety not comjielled to prove, nor bound by proof of creditor, ib. except in what case, ib. but barred by certificate if he does not prove, 293, 294. entitled to creditor's proof to the extent of a balance unsatisfied by a counter-security, 293. on a bond to the king for stamp duties may prove against principal, 294. entitled to the rights of the creditor, in respect of the certificate, as well as of the dividends, ib. surety for rent not due at the bankruptcy cannot prove against the tenant 294. ' surety paying only part of debt cannot prove unless paid in discharge of the whole, 295. cannot prove for interest accruing since bankruptcy, ib. 990 INDEX. SURETY — continued. Rights of the solvent Surety against the Bankrupt Debtor or Co-surety. nor on a fresh bond substituted for a former one after bankrupt's certificate, 295. nor does this give him a claim against a co-surety, 296. when a retiring partner is in the nature of a surety, as to the continuing partner, 297. a co-surety of bankrupt not discharged as against the creditor by bank- rupt's certificate, 595. though barred as against the bankrupt, 596. as to plea of bankruptcy and certificate in action by surety, 616. SURPLUS, of the bankrupt's right to, 548.; and see " Bankrupt" V. 4. as to right of solvent partner to, 636. SURRENDER: of bankrupt, 142. 148. 507. 816.; and see " Bankrupt"!. " Superse- deas" 1. of copyhold when fraudulent, an act of bankruptcy, 75. ; and see " Copy- hold." " Act of Bankruptcy" 12. in discharge of bail does not determine the creditoi*'s election, 191 = when Court will enlarsre the time for, 541. SUTLER, not liable to bankruptcy, 55. T TACKING. See " Mortgn