Page images

any further advances that might be made. Further advances amounting to £70 were made, but these had been more than recouped by the sale of hay off the farm prior to any bankruptcy proceedings : Held that the bill of sale was void against the farmer's trustee in bankruptcy.-Ex parte

Thorpe, Re Parker, 43 L.T. 704. (xli.) Ch. Div. V. C. H.-Agreement for Sale or Hire-Distress, Reputed

Ownership-Fraud on Bankruptcy Laws.-An agreement for the hire of wagons at a yearly rent for a fixed period, with an option of purchase for a nominal price at the end of that period, is not, hy reason of a stipu. lation that lenders may distrain as ordinary landlords for arrears of rent upon the personal chattels of the hirer in the event of his bank. ruptcy, inoperative as against his general creditors.-Leman v. Yorkshire

Wagon Co., 50 L.J. Ch. 293 ; 29 W.R. 466. (xlii.) C. A.-Appeal - Stay of Proceedings.Held, that an appeal from an

adjndication in bankruptcy ought to stand over pending the trial of an action, the result of which, it was alleged, would be to render a fand available to satisfy the debt claimed by the petitioning creditor.—Ev parte Yeatman, Re Yeatman, L.R. 16 Ch. D. 283; 44 L.T. 260; 29 W.R.

457. (xliii.) C. A.-Appeal by Trustee-Costs.-A trustee in bankruptcy presented

an appeal against the admission of a proof, and before the hearing he was removed and a new trustee appointed who declined to proceed with the appeal. The appeal was ordered to stand over for a fortnight, and was then dismissed, none of the creditors having adopted it, and the respondent's costs were ordered to be paid out of the deposit so far as it would extend.-Ex parte Sheard, Re Pooley (2), L.R. 16 Ch. D. 110;

44 L.T. 260. (xliv.) C.A.- Appeal from County Court-Time-Bankruptcy Rules, 1870, r. 143.

- Sundays are excluded in computing the time to appeal from a County Court to the Chief Judge.--Ex parte Hall, Re Alven, L.R. 16 Ch. D. 501 ;

44 L.T. 8; 29 W.R. 298. (xlv.) C. A.-Composition-Authority to carry on Business-Assignment of

Book Debts.-Creditors of a liquidating debtor passed resolutions accepting a composition by instalments, and providing that the trustee should enterinto possession of the debtor's stock-in-trade and effects on his failure to pay any instalment. The debtor continued to carry on his trade and assigned his book debts to secure advances which he applied in carrying on his business and paying instalments. He made default in payment of an instalment: Held that the assignment was good as against the trustee.-Ex parte Allard, Re Simons, L.R. 16 Ch. D. 505 ; 44 L.T. 35;

29 W.R. 406. (xlvi.) C. A.-Composition-Debtor's Statement-Non-assenting Creditor.

When a debtor, who makes a composition with his creditors, omits from his statement one debt due to a non-assenting creditor, but states another debt due to the same creditor, the creditor is not bound in

respect of either debt.—Macdonald v. Chesney, 50 L.J. C.P. 87. (xlvii.) C. J. B.-Composition-Reduction of Proof-Application by Bankrupt

-Locus Standi.An undischarged bankrupt who has undertaken to pay a composition has a locus standi to apply to the Court to reduce a proof.

-Ex parte Bond, Re Bond, 43 L.T. 798; 29 W.R. 292. (xlviii.) C. J. B.-. Composition-Adjouriement of Second Meeting-Bankruptcy

Act, 1869, s. 126.—The creditors at a second meeting duly convened under sec. 126 of the Bankruptcy Act, 1869, have power to adjourn the meeting beyond the fourteen days specified in that section.-Ex parte Knowles, Re Jones, 44 L.T. 160.

(xlix.) C. A.-Composition ResolutionsJudgment Creditor-Seizure-Bank

ruptcy Act, 1869, s. 126.--A resolution accepting a composition at the first meeting of creditors under sec. 126 of the Bankruptcy Act, does not become an extraordinary resolution until confirmed at the second meeting, and is of no validity until duly registered; therefore a creditor of a compoanding debtor who signs judgment and levies execution for his debt before such registration, obtains a valid security on the debtors property, and the fact of his having attended the first meeting of creditors without voting or proving, raises no countervailing equity against him.-Ex parte Maclaren, Re Maccolla, L.R. 16 Ch. D. 534 ; 50 L.J. Ch.

203; 44 L.T. 36; 29 W.R. 389. (1.) C. A.-Composition Resolutions-Refusal to Register— Bankruptcy Act,

1869, s. 28.—Under sec. 28 of the Bankruptcy Act an absolute discretion is given to the Court to refuse to register resolutions for composition. Decision of C. J. B. (Ex parte Murray, Re Durham, 43 L.T.799) reversed.

Ex parte Merchant Banking Co., Re Durham, 29 W.R. 363. (li.) C. A.-Debtor's Statement-Omission.—A debtor in his statement

described himself as formerly in partnership with certain persons. There were no joint assets or liabilities. The debtor did not mention this in his statement, but stated so subsequently at a general meeting of creditors : Held that the statement was insufficient and ought not to be registered.-Ex parte Buckley, Re Buckley, L.R. 16 Ch. D. 513; 44

L.T. 39. (lii.) C. J. B.-Income of Bankrupt-Voluntary Allowance-Bankruptcy Act,

1869, s. 90.--A voluntary allowance of which the debtor is in receipt is an income within sec. 90 of the Bankruptcy Act, 1869, and the trustee is entitled to an order setting aside part of it.-Ex parte Chatterley, Re

Wicks, 44 L.T. 159; 29 W.R. 400. (liii.) C. A.–Jurisdiction of Court-County Court.-Where a matter pro

perly within the jurisdiction of the Bankruptcy Court involves also the character and reputation of persons, it should not be tried before the County Court in which the bankruptcy is proceeding, but in an action in the High Court.-Ex parte Armitage, Re Learoyd, Wilson & Co., 44

L.T. 262. (liv.) C. J. B.-Leaseholds Disclaimer-Enlarging Time for.The fact that

the lessor has availed himself of provisions in the debtor's lease to compel the trustee in liquidation to pay half a year's rent in advance, is not a ground for enlarging the time for giving notice by the trustee whether he disclaims or not, after the expiration of the 23 days fixed by sec. 24 of the Bankruptcy Act.-Ex parte Harris, Re Richardson, L.R. 16

Ch. D. 613; 44 L.T. 282. (lv.) C. A.-Liquidation-Building Agreement-Bills of Sale Act, 1854, s. 7

(1).—A building agreement contained a clause that, upon default in per. formance on the bailder's part, the landlord might re-enter, and thereupon all materials on the land should be forfeited to him : Held that the proviso for forfeiture was not void under sec. 7, sub-sec. 1, of Bills of Sale Act, 1851, against the trustee in liquidation of the builder.---Ex parte

Newitt, Re Garrud, L.R. 16 Ch. D. 522; 44 L.T. 5; 29 W.R. 344. (lvi.) C. J. B.-Liquidation-Contractor's Lien for unpaid Purchase-money.

W. contracted with the debtor to put a set of machinery into a barge belonging to the debtor for £1,050, the money to be paid in two instal. ments, the first payable when the machinery was put in, the second after the trial trip. Part of the first instalment had been paid, and the barge was ready for the trial trip, when the debtor filed a liquidation petition, and a receiver having been appointed, he took possession of the barge,

which was then lying in dock, entered in the books in W.'s name: Held that W. had a lien on the barge and machinery for the money due under his contract. -Ex parte Willoughby, Re Westlake, L.R. 16 Ch. D. 604 ;

44 L.T. 111. (lvii.) C. A.-Liquidation-Discharge of Debtor--Small Assets-Registration of

Resolutions.-Creditors of a liquidating debtor resolved on a liquidation by arrangement, and gave the debtor an immediate discharge. The assets were very small, and the registration of the resolutions was opposed by a creditor on the ground that the liquidation was an abuse of the process of the Court: Held that the resolutions must be registered.

Ev parte Matthews, Re Sharpe, 50 L.J. Ch. 284; 44 L.T. 117. (lviii.) C. A.-Liquidation Payment of Receiver's Charges. - A receiver of a

liquidating debtor's estate, who has handed over the property to the trustees in liquidation, is only entitled to the payment of his charges ont of the net assets of the estate, and cannot call for an inquiry into the trastee's accounts.-Ex parte Brown, Re Maltby, L.R. 16 Ch. D. 497;

43 LT. 682. (lix.) C. A.-Liquidation Petition before Adjudication. When once there is

adjudication in bankruptcy there is no longer power to go on with an arrangement of the debtor's affairs already commenced, either by way of composition or in liquidation.-Ex parte Bennett, Re Ward, L.R. 16

Ch. D. 541 ; 44 L.T. 38; 29 W.R. 343. (x.) C. J. B.-Petitioning Creditor's Debt--Equitable Mortgage-Interest.—A

debtor deposited title deeds with a creditor to secure principal and interest up to a certain date, and agreed to execute, when called upon, a legal mortgage to secure the principal and interest at the rate aforesaid. Neither principal nor interest had been paid : Held that the contract was to pay interest at the same rate till repayment of the principal, and that such interest constituted a good petitioning creditor's debt.

Ex parte Furber, Re King, 44 L.T. 319; 29 W.R. 524. (lxi.) C. A.-Proof-Bill of Enchange.-A holder of an accommodation bill is

entitled to prove for the full amount of the bill against the estate of the acceptor in bankruptcy, irrespective of value received, but he may not receive dividends for more than the amount due to him.-Ex parte Griffin, Ev parte Newton, Re Bunyard, L.R. 16 Ch. D. 330; 44 L.T. 232 ;

29 W.R 407. (lxii.) C. J.B.-Proof-Part Payment by Surety-Reluction of Proof.--After a

bank had proved its debt, bat before the receipt of any dividend, a third person paid to the bank the amount for which he was liable as the debtor's surety: Held that such amount must be deducted from the amount of the proof, though, by the boud of suretyship, the surety gave up to the bank all his right to dividends under the bankruptcy of the debtor in part satisfaction of his liability under the bond.—Ex parte

National Provincial Bank, Re Rees, 44 L.T. 159. (lxiii.) C. J. B.-Proof-Partnership-Share of Deceased Partner.-One of

three partners having died, the survivors retained in the business, with. ont any authority to do so, the deceased partner's share of the capital, and divided the profits between themselves equally. They afterwards filed a liquidation petition. There were still some joint debts of the old firin unpaid : Held that the administratrix of the deceased partner could not prove, in the liquidation, in competition with his creditors in respect of his share of the capital.— Ex parte Blythe, Re Blythe, L.R. 16 Ch.

D. 620. (lxiv.) C. A.-Receiver in Action-Receiver in Bankruptcy-Bankruptcy Act,

1869, s. 95.-A receiver appointed on behalf of an execution creditor

cannot lawfully seize when a receiver in bankruptcy has been appointed, though the creditor may not have had any notice of an act of bankruptcy

by the debtor.-Salt v. Cooper, L.R. 16 Ch. D. 544; 43 L.T. 682. (lxv.) C. J. B.-Secured Creditor-Garnishee Order--Bankruptcy Act, 1869,

ss. 16 (5), 95 (3).-A judgment creditor who, prior to the presentation of a bankruptcy petition against, but after the commission of an act of bankruptcy by the debtor of which he has no notice, has obtained a garnishee order nisi attaching moneys due to the debtor, is a secured creditor within sec. 16, sub-sec. 5, of the Bankruptcy Act, and such garnishee order is an attachment against the goods of the bankrupt

within sec. 95, sub-sec. 3--Ex parte Pillers, Re Curtoys, 44 L.T. 224. (lxvi.) C. A. — TrusteeRemoval of - Bankruptcy Act, 1869, s. 83 (4).

Though the registrar can only remove a trustee on good cause shown, yet where in removing a trustee he has exercised his judicial discretion according to law, the Court of Appeal will not disturb his order.-Ew

parte Sheard, Re Pooley (1), L.R. 16 Ch. D. 107; 44 L.T. 259. Bill of Exchange :(ii.) H. L.-Forged Acceptance-Adoption of Signature.—Where a person's

signature to a bill of exchange has been forged, his mere silence for a fortnight after he first knew of the forgery, during which time the position of the bank which discounted the bill is not altered, will not be held to be an admission or adoption of liability, nor will it work an estoppel.

McKenzie v. British Linen Co., L.R. 6 App. 82; 29 W.R. 477. (iii.) C. A.-Indorsement-Right to sue subsequent Indorser Circuity of

Action.—Plaintiffs drew bills on U., in respect of goods supplied to him which he accepted, and which plaintiffs indorsed to defendant, and defendant indorsed back to plaintiffs. The bills were dishonoured on presentation. In an action by plaintiffs against defendant, the jury found that defendant had indorsed and become surety as indorser to plaintiffs, so as to secure payment for the goods : Held that, as there was no consideration for the indorsement from the plaintiffs to defendant, the

plaintiffs were entitled to judgment.-Wilkinson v. Unwin, 29 W.R. 458. (iv.) C. A.Remittances to cover Acceptance-Appropriation.—A bank was in

the habit of drawing bills on a company which the latter accepted, and the bank remitted bills to the company to provide for meeting the acceptances. The company stopped payment having accepted bills for the bank which had not yet fallen due. At the time of the stoppage, the bank had remitted bills to the company some of which had been dis. counted. The acceptances were not met, and the bank had to take up the bills drawn by it: Held that the bank was not entitled to follow the proceeds of the bills which had been discounted before the stoppage, but was entitled to the proceeds of those which had remained in specie.

Re Gothenburg Commercial Co., 44 L.T. 166; 29 W.R. 358. (v.) H. L.-Right to Securities held by Creditor.-R., a member of a firm of

R. and Co., deposited title deeds with the W. bank as security for the floating balance due from his firm. Afterwards D. sold a cargo to R. and Co. who paid for it by a bill of exchange which D. indorsed and paid into the W. bank. R. and Co. stopped payment before the bill became due: Held that D. was entitled to have the security held by the bank handed over to him on payment of the balance due from R. and Co. to the bank.-Duncan, Fow & Co. v. North and South Wales Bank, L.R.

6 App. 1; 43 L.T. 706. (vi.) Q. B. Div.-Undertaking to Renew.- Defendants accepted a bill pay.

able at four months, apon a written undertaking that, if at the maturity of the bill they had not been paid monies due to them on the return of a

[ocr errors]

ship, the drawer would renew the bill. More than four months elapsed after maturity of the bill, and the money had never been paid to defendants, and the bill had not been renewed : Held that defendants

were liable in an action on the bill.-Heiron v. Morgan, 44 L.T. 182. Bill of Sale :(xviii.) C. A.-Consideration–41 $ 42 Vict., c. 31, s. 8.-A bill of sale recited

that the grantee had agreed to lend the grantor £7,350 on the security of a bill of sale, and that the bill was executed in pursuance of the agreement and in consideration of £7,350 then paid. In fact the £7,350 was the balance due to the grantee in respect of advances previously made to the grantor: Held that the consideration was sufficiently set forth and that the bill was valid.-Credit Co. v. Pott, L.R. 6 Q.B.D. 295 ;

50 L.J. Ex. 106; 29 W.R. 326. (xix.) Q. B. Div.-Consideration–418-42 Vict., c.31, s. 8.—The consideration

of a bill of exchange was stated to be £700. That som was paid by the grantee to the grantor by two cheques, but, on the second cheque being presented, £7 103. was dedacted from the amount of it and retained by the grantee for commission, the borrower at the same time giving a promissory note for £10: Held that the consideration was not duly

stated.Hamilton v. Chaine, 29 W.R. 488. (xx.) Q. B. Div.-No Covenant not to SellSale by Debtor.-G. assigned to

plaintiff, by a bill of sale, which contained no covenant not to sell, all the goods and farming stock then or thereafter on his farm, to secure the payment of £26 on demand. Before any demand for payment had been made, G. sold some of the goods to defendant, who removed them: Held that plaintiff was entitled to recover in an action for conversion.— Payne

v. Fern, 29 W.R. 441. British Honduras, Law of:(i) P. C.-Crown Grant Sovereignty of Crown — Will - Construction

Effects.-Grants of land in a colony by the Crown afford ample evidence that the Crown has assumed 'territorial dominion in such colony. A testator had, ander a treaty, the right of occupying a parcel of land for the purpose of cutting timber: Held that this right was included under a devise of his effects.- Attorney-General of British Honduras v. Bristowe,

L.R. 6 App. 143; 50 L.J. P.C. 15; 44 L.T. 1. Burial Ground :(i.) Ex. Div.-Exclusive Right of Burial --Grant to one and his heirsCon.

version-Election—15 & 16 Vict., c. 85, s. 33.-án exclusive right of burial in certain grave spaces was granted by a burial board to E. and her heirs, to hold to the said E., her heirs and assigns, for ever, the purchase-money being found by her out of her late husband's estate, of which she was executrix, and which he had left to her for life with remainder to his children equally: Held that the right descended upon E.'s death intestate to her heir-at-law, and that, as the other children had not elected to take the testator's property in its converted state, one of them could not claim to exercise the right as forming part of the testator's property.--Matthews v. Jeffery, L.R. 6 Q.B.D. 290; 50 L.J. Ex. 164; 43

L.T. 796 ; 29 W.R. 282. Ceylon, Law of:(i.) P. C.-Adverse Possession-Proof-Ordinance No. 22, 1871.-The adverse

possession required to be proved by the Ordinance of Ceylon, No. 22, 1871, to entitle a defendant to a decree, must be by actual physical possession proved by overt acts done on the land in dispute.-Clark v. Elphinstone, L.R. 6 App. 164; 50 L.J. P.C. 22.

« PreviousContinue »