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Court may

order payments to boná fule claimants. Bank. Rules, 1871, r. 23.

Orders for payment of fees to registrar to be

made by Judge.

Bank. Rules, 1871, r. 24.

Registrar acting as a trustee after close of

bankruptcy to forward twice

a year certifi

cate of payment into Bank of England.

Bank. Rules, 1871, r. 26.

On payment into Bank,

trustee to receive certificate from cashiers of Bank.

Bank. Rules, 1871, r. 27.

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Subject to the provisions of section 116 of The Bankruptcy Act, 1869,' and section 19 of The Bankruptcy Repeal "and Insolvent Court Act, 1869,' the Court, upon being satis"fied that any person who may claim to be entitled to any dividend or other payment from monies which shall have "been so paid into the Bank of England is entitled thereto, may order payment of the same according to the form in the "schedule" (h).-"The Bankruptcy Rules, 1871," r. 23.

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"Where payment is required to be made to a registrar of a County Court for the fees authorised to be taken by him for "the duties of realising the estate and of making a dividend, "the order directing such payment shall be signed by the Judge of the Court, and any order made by the London "Bankruptcy Court for the payment of such fees shall be made payable to such officer as may be authorised to receive fees on "behalf of Her Majesty's Exchequer."-"The Bankruptcy Rules, 1871," r. 24.

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"Every registrar acting as a trustee after the close of a "bankruptcy shall, within ten days after the 30th June and "31st December, forward to the comptroller, a certificate to "the effect that he has paid into the Bank of England all sums "of money received by him on account of closed estates.""The Bankruptcy Rules, 1871," r. 25.

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"Every registrar acting as a trustee after the close of a bankruptcy shall, within twenty days of the 30th June in every year, forward to the accountant in bankruptcy an account "showing the balance standing to the credit of each closed "estate in which he is trustee, which account, if correct, shall "be certified by the accountant and returned by him to the registrar."—"The Bankruptcy Rules, 1871," r. 26.

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"Where any money shall be paid into the Bank of England pursuant to these rules, the trustee shall receive a certificate "from one of the cashiers of such bank."-"The Bankruptcy Rules, 1871," r. 27.

It has been seen (k) that it is the duty of the trustee upon the close of the bankruptcy to deliver to the registrar a list of the bankrupt's outstanding property, who shall realize the property, if practicable, and declare a dividend from the proceeds thereof in the same manner as if he had been the trustee by reason of there being no trustee acting during the continuance of the bankruptcy (1).

(h) Appendix V. Form 5 ("Bankruptcy Rules, 1871.")
(k) Ante, p. 1398.

("The Bankruptcy, Rules, 1870." Rule 125, ante, p. 1398.

BOOK VI.

THE JURISDICTION AND PRACTICE IN BANKRUPTCY.

CHAPTER XIX.

ANNULLING ADJUDICATION.

It would seem, according to a recent case, that the Court has a general jurisdiction to annul an adjudication of bankruptcy in a proper case (a). But, independently of this general jurisdiction, the Court has express power conferred upon it to annul the adjudication in certain cases to which attention will now be called.

Court has general jurisal the adjudication.

diction to

Adjudication may be anunder s. 28 of "The Bankruptcy Act. 1869."

nulled in cases

If creditors fail to appoint

Under section 28 of "The Bankruptcy Act, 1869," the annulling of the order of adjudication, may, as we have seen (b), be made the condition of a scheme of arrangement or composition accepted by the trustee in bankruptcy on behalf of the creditors. The Court has no power, it seems, under this section, to annul the adjudication until after the first meeting (c). When the creditors fail to appoint a trustee, under section 84 of "The Bankruptcy Act, 1869," the Court also has power to annul the adjudication (d). The Court ought not, however, to annul the adjudication under this section if one creditor the adjudicawishes the bankruptcy to proceed, and his debt is so much tion may be greater than all the others that he is substantially the only annulled. creditor (e). And when the first meeting has been adjourned the application to annul should not be made until after the adjourned meeting has been held (f).

The Court has also power under rule 266 (g) of "The Bankruptcy Rules, 1870," to annul an adjudication made by it for the protection of the bankrupt, pending the passing of some special or extraordinary resolution determining on liquidation by arrangement or composition. Where a debtor filed a liqui

(a) Ex parte Ashworth; In re Hoare, L. R. 18 Eq. 705; and see Ex parte Upfill; In re Upfill, L. R. 1 Ch. 439.

(b) Ante, p. 1402; and see Ex parte Ashworth; In re Hoare, ubi supra. Re Lord, 50 L. T. 10.

See sect 84, ante, p. 1345.

Ex parte English Joint Stock Bank; In re Finney, L. R. 6 Ch. 79. f) Re Green, 14 Solicitors' Journal, p. 575.

See this Rule set out post, p. 1430.

a trustee in bankruptcy,

Adjudication made by Court pending proliquidation by arrangement

ceedings for

or composi

tion may be

annulled.

Semble.

The Court may

refuse to annul adjudication,

though all creditors

consent.

Semble that
adjudication
made on ap-
plication of a
bankrupt may
be annulled.
Application
for adjudica-
tion should be
made with due
diligence.
Consequences
of annulling
an adjudica-
tion.

Annulling of
adjudication
not to affect
validity of acts
of trustee, but
property is to
vest in person
appointed by
Court or revert
to bankrupt.
Order of Court
annulling ad-
judication to
be published
in London
Gazette and
advertised
locally.

Bank. Act, 1869, s. 81. Form of

notice of order annulling

bankruptcy.

dation petition and his creditors resolved on a liquidation by
arrangement, but before they did so an adjudication of bank-
ruptcy had been made against the debtor on a petition pre-
sented before the filing of the liquidation petition, it was held
that the Court could annul the adjudication either under this
rule or under its general jurisdiction (h).

It seems that the Court may, on sufficient grounds, refuse to
annul, though all the creditors who have proved assent to the
application (i). It seems also that an adjudication made on
the application of a bankrupt may, in a proper case, be annulled
without his consent (k).

The application for adjudication should be made with due diligence (1).

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The consequences of annulling adjudication are indicated by
the following section of "The Bankruptcy Act, 1869" :—
Whenever any adjudication in bankruptcy is annulled all
sales and dispositions of property and payments duly made,
"and all acts theretofore done, by the trustee or any person
acting under his authority, or by the Court, shall be valid,
but the property of the debtor who was adjudged a bankrupt
"shall in such case vest in such person as the Court may
appoint, or in default of any such appointment revert to the
"bankrupt for all his estate or interest therein upon such terms
"and subject to such conditions, if any, as the Court may
"declare by order. A copy of the order of the Court annulling
"the adjudication of a debtor as a bankrupt shall be forthwith
"published in the London Gazette and advertised locally in the
❝<
prescribed manner, and the production of a copy of the
"Gazette containing such order shall be conclusive evidence of
"the fact of the adjudication having been annulled, and of the
"terms of the order annulling the same."-32 & 33 Vict.
c. 71, s. 81.

In reference to this section Kelly, C. B., in Bailey v. John-
son (m) observed that it "was passed to provide for many
possible cases, where, notwithstanding the annulling of the
bankruptcy, various interests in the bankrupt's effects might
have arisen."

A form of notice in the Gazette and local paper of the order annulling the adjudication is provided (n).

(h) Ex parte Ashworth; In re Hoare, L. R. 18 Eq. 705.

(i) Ex parte Jones; In re Jones, L. R. 3 Ch. 144.

(k) Ex parte Davis & Denton; In re Davis & Denton, L. R. 2 Ch. 363.
(1) Ib., and see Ex parte Sampson; In re Cobham, L. R. 1 Ch. 476.
(m) 40 L. J. N. S. Exch. 189, 192.

(n) Appendix V. Form No. 59.

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BOOK VI.

THE JURISDICTION AND PRACTICE IN BANKRUPTCY.

CHAPTER XX.

APPEALS IN BANKRUPTCY.

Two kinds of appeal: (1.) &c., to local Court; (2.)

From trustee,

Court to Lon

Two kinds of appeals exist in bankruptcy matters. In the first place, as has been mentioned in the earlier chapters of this work, there exist appeals to the County Court from the trustee's decision in regard to proofs (a), or in respect of any act of the trustee which may be complained of (b). These have already From local been sufficiently noticed (c). A right of appeal also exists against the registration of or the refusal to register a resolution for liquidation or composition, under rule 295 of "The Bankruptcy Rules, 1870" (d). This will be a matter to be referred to in the next chapter, which deals with composition and liquidation by arrangement.

don Court.

Appeals to

The present chapter will be exclusively devoted to the consideration of appeals from the decision of the County Court the London Judge to the Chief Judge, and thence to the Court of Appeal

and House of Lords.
As regards right of appeal, it is by "The Bankruptcy Act,
1869," provided, in a section already set out (e), that no Court
having jurisdiction in bankruptcy is subject to be restrained
in the execution of its powers under the Act by the order of
any other Court," nor shall any appeal lie from its decisions,
except in manner directed by this Act" (f).
The general right of appeal to the London Court of Bank-
ruptcy is conferred by the following section of "The Bankruptcy
Act, 1869":-

"Every Court having jurisdiction in bankruptcy under this

(a) Rule 74 of the General Rules, ante, p. 1358.

(b) 32 & 33 Vict. c. 71, s. 20, and Rules 50 and 74 of the General Rules. Ante, pp. 1309, 1358, 1380.

Rule 295 of the General Rules, post, pp. 1440, 1441.

Sect. 72, ante, p. 1257.

32 & 33 Vict. c. 71, s. 72, ante, p. 1257.

Court alone

Bankruptcy

considered in

the present chapter. Appeal only lies where given by the Bankruptcy Act.

General right of appeal given

by "The

Bankruptcy

Act, 1869."

Every Court possessing bankruptcy

jurisdiction

may review,

rescind or vary its own order, and

such order

may likewise be appealed from.

The Bankruptcy Act, 1869, s. 71.

Section 71 also gives local Court a power of re-hearing.

Re-hearing should not be given merely to give opportunity of appeal.

Effect of

above section as regards

appeals.

In whom right of

appeal is vested.

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Act may review, rescind, or vary any order made by it in "pursuance of this Act. Any person aggrieved by any order "of a local bankruptcy Court in respect of a matter of fact, or "of law made in pursuance of this Act, may appeal to the Chief Judge in bankruptcy, and it shall be lawful for such "Judge to alter, reverse, or confirm such order as he thinks just. Any order made by the Chief Judge in bankruptey, "whether in respect of a matter brought before him on appeal " or not, shall be subject to an appeal to the Court of Appeal "in Chancery (which Court, for the purposes of this Act, shall "be and form a Court of Record, and shall have all the juris"diction, powers, and authorities of the Court of Bankruptcy, "to be exerciseable either originally or on appeal, and shall "have all the powers and authorities of the Court of Chancery "relative to the trial of questions of fact, by jury, issue, or otherwise), and also, with the leave of the Court of Appeal, to "the House of Lords, but no appeal shall be entertained under "this Act except in conformity to such rules of Court as may "for the time being be in force in relation to such appeal.”— 32 & 33 Vict. c. 71, s. 71.

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Section 71 of "The Bankruptcy Act, 1869," it will be noticed, really deals with two rights resembling one another, and yet perfectly distinct, that is to say, the right of any bankruptcy Court to reconsider, and, if it think fit, vary or rescind altogether its own order; and, in the second place, the right of any person aggrieved by an order of a bankruptcy Court to appeal therefrom with a view to obtaining its reversal, in whole or in part, by the Chief Judge or Court of Appeal, as the case may be.

When an order has been once made, a local Court ought not to allow a re-hearing for the mere purpose of enabling an appeal to be brought which would otherwise be too late (g).

The effect of the above enactment is, briefly stated, to confer an appeal from a County Court acting as a local Court of Bankruptcy whenever any person is aggrieved by any order of such Court in respect of a matter either of fact or of law, and made under the Act (h). Moreover, an appeal lies from an order made by a local Court of Bankruptcy while acting under section 74 as auxiliary to the London Court (i).

The right of appeal from any local Court of Bankruptcy, under the above section, is vested in "any person aggrieved. Accordingly, where an adjudication of bankruptcy was made, founded upon the execution by the debtor of a bill of sale which was held to be an act of bankruptcy, it was held by the

(g) Ex parte Simmons; In re Lister, L. R. 2 Ch. Div. 749.
(h) See Ex parte Fletcher; Re Vaughan, L. R. 6 Ch. Div. 350.
See this section set out ante, pp. 1255, 1256.

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