CHAPTER V.

OFFENCES AGAINST PUBLIC TRADE.

SECT. 1. Offences against Bankruptcy Law, and Frauds on Creditors, p. 1135. 2. Counterfeiting Trade Marks, or using False Trade Descriptions, p. 1151.

3. Offences arising out of Relation between Employers and Workmen, p. 1158.

4. Offences as to the Sale of Food and Drugs, p. 1163.

SECT. 1.-OFFENCES AGAINST BANKRUPTCY LAW, AND FRAUDS
ON CREDITORS.

OFFENCES AGAINST BANKRUPTCY LAW.

Statutes.

32 & 33 Vict. c. 62 (Debtors Act, 1869), Part 2, s. 11-Punishment of fraudulent debtors. (a)]—Any person adjudged bankrupt [or in respect of whose estate a receiving order has been made] . . . shall, in each of the cases following, be deemed guilty of a misdemeanor, and on conviction thereof shall be liable to be imprisoned for any time not exceeding two years, with or without hard labour; that is to say :

(1) Non-discovery of estate to trustee.]-If he does not, to the best of his knowledge and belief, fully and truly discover to the trustee administering his estate for the benefit of his creditors all his property, real and personal, and how, and to whom, and for what consideration, and when he disposed of any part thereof, except such part as has been disposed of in the ordinary way of his trade (if any), or laid out in the ordinary expense of his family, unless the jury is satisfied that he had no intent to defraud : [For indictment under this sub-section, see post, p. 1140.]

(2) Non-delivery of estate to trustee.]-If he does not deliver up to such trustee, or as he directs, all such part of his real and personal property as is in his custody or under his control, and which he is required by law to deliver up, unless the jury is satisfied that he had no intent to defraud:

(3) Non-delivery of books, documents, etc.]—If he does not deliver up to such trustee, or as he directs, all books, documents, papers, and writings in his custody or under his control relating to his property or affairs, unless the jury is satisfied that he had no intent to defraud:

(a) This section and s. 12 are now printed s amended by s. 163 of 46 47 Vict. c. 52 (post, p. 1138), and s. 26 of 53 54 Vict. c. 71 (post, p. 1137). It originally included cases where the debtor liquidated his affairs by arrangement. That form of liquidation was abolished in 1883, and the portions of the section were repealed by the Statute Law Revision Act, 1893 (56 57 Vict. c. 54).

(4) Concealment of property. (a)]-If after the presentation of a bankruptcy petition by or against him. . . or within four months next before such presentation... [or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, (b)] before the date of the order, he conceals any part of his property to the value of ten pounds and upwards, or conceals any debt due to or from him, unless the jury is satisfied that he had no intent to defraud: [For indictment under this and the next subsection, see post, p. 1146: and cf. s. 13, sub-s. 3, post, p. 1150.]

(5) Fraudulent removal of property. (a)]—If after the presentation of a bankruptcy petition by or against him. . . or within four months next before such presentation [or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, (b)] he fraudulently removes any part of his property of the value of ten pounds or upwards (see post, p. 1140) : (6) Material omissions in statement of affairs.]—If he makes any material omission in any statement relating to his affairs, unless the jury is satisfied that he had no intent to defraud:

(7) Failure to inform trustee of false claims on estate.]—If, knowing or believing that a false debt has been proved by any person under the bankruptcy... he fail for the period of a month to inform such trustee as aforesaid thereof:

(8) Preventing production of books, etc. (a)]—If after the presentation of a bankruptcy petition by or against him... he prevents the production of any book, document, paper, or writing affecting or relating to his property or affairs, unless the jury is satisfied that he had no intent to conceal the state of his affairs or to defeat the law:

(9) Destruction or concealment of books, etc. (a)]—If after the presentation of a bankruptcy petition by or against him or within four months next before such presentation... [or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, (b)] before the date of the order, he conceals, destroys, mutilates, or falsifies, or is privy to the concealment, destruction, mutilation, or falsification of any book or document affecting or relating to his property or affairs, unless the jury is satisfied that he had no intent to conceal the state of his affairs or to defeat the law:

(10) Making, etc., false entries in books. (a)]—If after the presentation of a bankruptcy petition by or against him . . . or within four months next before such presentation . . . [or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, (b)] before the date of this order, he makes or is privy to the making of any false entry in any book or document affecting or relating to his property or affairs, unless the jury is satisfied that he had no intent to conceal the state of his affairs or to defeat the law: [As to the meaning of "affairs," cf. "conduct and affairs," see 53 & 54 Vict. c. 71 (Bankruptcy Act, 1890), s. 8, and In re Barker, 25 Q. B. D. 285 at p. 294. Instead of "to defeat the law," the corresponding provision in 24 & 25 Vict. c. 134, s. 221 (rep.), contained the words "to defeat the objects of the law of bankruptcy."]

(11) Fraudulently altering, etc., documents. (a)]—If after the presentation of a bankruptcy petition by or against him . . . or within four months next before such presentation . . or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order, he fraudulently, parts with, alters, or makes any omission, or is privy to the fraudulently parting with, altering, or making any omission in any document affecting or relating to his property or affairs:

(a) See note, ante, p. 1136.

(b) In the note to s. 11 in the Statutes Revised (vol. 11, p. 544) it is assumed that the effect of 53 & 54 Vict. c. 71, s. 26, is to add the words in square brackets to sub-ss. 13, 14, and 15 only of s. 11. Sed quære.

or in

(12) Fictitious accounts of losses, etc. (a)]—If after the presentation of a bankruptcy petition by or against him. . . or at any meeting of his creditors within four months next before such presentation. case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order he attempts to account for any part of his property by fictitious losses or expenses:

(13) Obtaining property on credit by fraud. (a)]—If within four months next before the presentation of a bankruptcy petition by or against him or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order, he, by any false representation or other fraud, has obtained any property on credit and has not paid for the same: [See post, p. 1147; and as to cases within s. 13 (1) and 46 & 47 Vict. c. 52, s. 31, see post, pp. 1147, 1148.]

(14) Traders obtaining goods by fraud. (a)]—If within four months next before the presentation of a bankruptcy petition by or against him. . . or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order, he, being a trader, obtains, under the false pretence of carrying on business and dealing in the ordinary way of his trade, any property on credit and has not paid for the same, unless the jury is satisfied that he had no intent to defraud :

(15) Disposing of goods otherwise than in course of trade. (a)]—If within four months next before the presentation of a bankruptcy petition by or against him. .. or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order, he, being a trader, pawns, pledges, or disposes of, otherwise than in the ordinary way of his trade, any property which he has obtained on credit, and has not paid for, unless the jury is satisfied that he had no intent to defraud: [The words "otherwise than," etc., govern all the preceding verbs. R. v. Justin, 61 J. P. 605, Wright, J.; and see post, p. 1142.]

(16) False representation or fraud to obtain consent of creditors.]—If he is guilty of any false representation or other fraud for the purpose of obtaining the consent of his creditors or any of them to any agreement with reference to his affairs or his bankruptcy or liquidation.

53 & 54 Vict. c. 71 (Bankruptcy Act, 1890), s. 26-Amendment of s. 11 of Debtors Act, 1869.]—Sect. 11 of the Debtors Act, 1869, shall have effect as if there were substituted therein for the words "if within four months next before the presentation of a bankruptcy petition against him," the words "if within four months next before the presentation of a bankruptcy petition by or against him, or in case of a receiving order made under s. 103 of the Bankruptcy Act, 1883, before the date of the order." [This enactment is not retrospective. R. v. Griffiths [1891] 2 Q. B. 145; 60 L. J. (M. C.) 93. It adopts the law as laid down in R. v. Beck, 16 Cox, 710; 61 L. T. (N. S.) 596, decided on s. 11, sub-s. 9, of the Debtors Act, 1869; and overrides In re Burden, Ex parte Wood, 21 Q. B. D. 24; 57 L. J. (Q. B.) 570, in which it had been held that where a bankrupt presented his own petition under the Bankruptcy Act, 1883 (46 & 47 Vict. c. 72), he could not be prosecuted for any of the statutory misdemeanors created by s. 11, sub-ss. 13, 14, and 15 of the Debtors Act, 1869 (32 & 33 Vict. c. 62).]

32 & 33 Vict. c. 62, s. 12-Absconding with property. (a)]—If any person who is adjudged a bankrupt, . . . or in respect of whose estate a receiving order has been made after the presentation of a bankruptcy petition by or against him or the commencement of the liquidation, or within four months before such presentation or commencement, quits England and takes with

A.C.P.

(a) See note, ante, p. 1135.

72

him, or attempts or makes preparation for quitting England and for taking with him, any part of his property to the amount of twenty pounds or upwards, which ought by law to be divided amongst his creditors, he shall (unless the jury is satisfied that he had no intent to defraud) be guilty of felony, punishable with imprisonment for a time not exceeding two years, with or without hard labour.

46 & 47 Vict. c. 52 (Bankruptcy Act, 1883), s. 163-Extension of penal provisions of Debtors Act, 1869, to debtors petitioning, etc.]—(1) Sects. 11 and 12 of the Debtors Act, 1869 (ante, pp. 1135-1137), relating to the punishment of fraudulent debtors, and imposing a penalty for absconding with property, shall have effect as if there were substituted therein for the words "if after the presentation of a bankruptcy petition against him," the words "if after the presentation of a bankruptcy petition by or against him."

(2) The provisions of the Debtors Act, 1869, as to offences by bankrupts, shall apply to any person whether a trader or not in respect to whose estate a receiving order has been made as if the term "bankrupt" in that Act included a person in respect of whose estate, a receiving order had been made.

32 & 33 Vict. c. 62, s. 13-Fraudulently obtaining credit, etc.]-Post, pp. 1148, 1150.

Sect. 14-False claims by creditors.]—If any creditor in any bankruptcy wilfully and with intent to defraud, makes any false claim, or any proof, declaration, or statement of account which is untrue in any material particular, he shall be guilty of a misdemeanor, punishable with imprisonment not exceeding one year, with or without hard labour. [See ante, pp. 237-240.]

Sect. 16-Prosecution by order of court on report of trustee.]—Where a trustee in any bankruptcy [or the official receiver of a bankrupt's estate, see post, 46 & 47 Vict. c. 52, s. 164] reports to any court exercising jurisdiction in bankruptcy, that in his opinion a bankrupt (including a person in respect of whose estate a receiving order has been made, see 46 & 47 Vict c. 52, s. 163, sub-s. 2, supra) has been guilty of any offence under this Act [or under the Bankruptcy Act, 1883 (46 & 47 Vict. c. 52, s. 164), post, p. 1139], or where the court is satisfied upon the representation of any creditor or member of the committee of inspection that there is ground to believe that the bankrupt has been guilty of any offence under this Act [or under the Bankruptcy Act, 1883 (46 & 47 Vict. c. 52, s. 164, post, p. 1139)], the court shall, if it appears to the court that there is a reasonable probability that the bankrupt may be convicted, order the trustee [or the official receiver of a bankrupt's estate, 46 & 47 Vict. c. 52, s. 164, post, p. 1139] to prosecute the bankrupt for such offence. [See Ex parte Marsden, 2 Ch. D. 786. The costs of a prosecution by the trustee without first getting an order of the court will not, as a general rule, be allowed out of the estate even where the sanction of the committee of inspection has been given. In re Howe [1902] 2 K. B. 290.]

Sect. 17-Costs of prosecutions.]—Where the prosecution of the bankrupt under this Act is ordered by any court, then, on the production of the order of the court, the expenses of the prosecution shall be allowed, paid, and borne as expenses of prosecutions for felony are allowed, paid, and borne. [See ante, p. 246, et seq.]

Sect. 18-Vexatious Indictments Act to apply.]—Every misdemeanor

under the second part of this Act shall be deemed to be an offence within and subject to the provisions of the Vexatious Indictments Act, 1859 (22 & 23 Vict. c. 17, extended by 30 & 31 Vict. c. 35, s. 1, see ante, pp. 7, 8, 9); and when any person is charged with any such offence before any justice or justices, such justice or justices shall take into consideration any evidence adduced before him or them tending to show that the Act charged was not committed with a guilty intent.

Sect. 19-Form of indictment.]—In an indictment for an offence under this Act it shall be sufficient to set forth the substance of the offence charged, in the words of this Act specifying the offence or as near thereto as circumstances admit, without alleging or setting forth any debt, act of bankruptcy, trading, adjudication, or any proceedings in, or order, warrant, or document of any court acting under the Bankruptcy Act, 1869 [or the Bankruptcy Act, 1883 (46 & 47 Vict. c. 52, s. 149, sub-s. 2, infra); and see ante, p. 69, and R. v. Pierce, 16 Cox, 213, post, p. 1149.]

Sect. 20-Jurisdiction of quarter sessions.] So much of the Quarter Sessions Act, 1842 (5 & 6 Vict. c. 38, ante, p. 126), as excludes from the jurisdiction of justices and recorders at sessions of the peace or adjournments thereof the trial of persons for offences against any provision of the laws relating to bankrupts, is hereby repealed as from the passing of this Act; and any offence under this Act shall be deemed to be within the jurisdiction of such justices and recorders. [See ante, p. 126.]

Sect. 23-Punishments under this Act cumulative.]-Where any person is liable under any other Act of Parliament or at common law to any punishment or penalty for any offence made punishable by this Act, such person may be proceeded against under such other Act of Parliament or at common law or under this Act, so that he be not punished twice for the same offence. (a) [Cf. 52 & 53 Vict. c. 63, s. 33, ante p. 170.]

46 & 47 Vict. c. 52, s. 31-Undischarged bankrupt obtaining credit to extent of 201. without disclosing his position.]-Post, p. 1147.

Sect. 92-Jurisdiction in bankruptcy.]-(1) The courts having jurisdiction in bankruptcy shall be the High Court and the county courts. [Sub-ss. 2-5 deal with the exclusion of certain county courts from bankruptcy jurisdiction, and the regulation of the exercise of bankruptcy jurisdiction by those county courts which have it. Bankruptcy business in the High Court was assigned to the King's Bench Division by order of 1st January, 1884, under 46 & 47 Vict. c. 52, s. 94. See Stat. Rules and Orders Revised (ed. 1904), vol. 1, tit. " Bankruptcy."]

Sect. 149, sub-s. 2-Construction of Acts referring to Bankruptcy Act, 1869.]-Where by any Act or instrument reference is made to the Bankruptcy Act, 1869, the Act or instrument shall be construed and have effect as if reference were made therein to the corresponding provisions to this Act.

Sect. 164-Power for court to order prosecution on report of official receiver.]-Sect. 16 of the Debtors Act, 1869, shall be construed and have effect as if the term "a trustee in any bankruptcy " included the official receiver of a bankrupt's estate, and shall apply to offences under this Act, as well as to offences under the Debtors Act, 1869.

(a) For certain statutory regulations as to proof of proceedings in bankruptcy, see ante, pp. 367, 368.