Lopez, 5 Ch. D., 65), or is brought with the object of disputing in another ss. 10, II. Where an action was brought against partners, the Court refused to stay it at the instance of a separate creditor of one of them whose affairs were in liquidation (Ex pte Isaac, In re De Vecchi, L. R. 6, Ch. 58), and an action brought against a liquidating debtor and another, the Court allowed to proceed, but restrained the plaintiff from enforcing judgment against the property or person of the liquidating debtor (Ex pte Mills, In re Manning, L. R. 6, Ch. 594). The application to stay should be made without delay (ibid). Proceedings taken in Ireland or the Colonies by creditors residing in England may be restrained (In re Tait, Ex pte Tait, L. R. 13, Eq. 311; Ex pte Rogers, In re Boustead, 16 Ch. D., 665; cf. Moor v. Anglo Italian Bank, 10 Ch. D., 681), but not by creditors residing abroad (In re Chapman, L. R. 15, Eq. 75). If an injunction is granted and an undertaking given to be answerable in damages, such undertaking should, if the injunction is dissolved, be enforced without delay, otherwise the Court may refuse to enforce it (Ex pte Hall, In re Wood, 23 Ch. D., 644). 2 After a bankruptcy had been annulled upon the acceptance of a composition, the Court restrained a creditor who had taken possession before the bankruptcy from proceeding with his execution (In re Chidley, In re Lennard, 1 Ch. D., 177). 3 "Legal process "-these words include a sequestration issued by the Chancery Division (Ex pte Hughes, In re Browne, L. R. 12, Eq. 137), and a distress, Ex pte Hill, In re Roberts, 6 Ch. D., 63), unless the distrainor is given the same rights as a landlord (Ex pte Birmingham and Staffordshire Gas Light Co., L. R. 11, Eq. 615). 4 When a receiving order is made in the High Court, the Judge making the order also has power to transfer to himself any action pending in any other division brought or continued by or against the bankrupt (s. 102 (4)). As to the mode of serving an order staying proceedings, see s. II. 11. Where the Court makes an order staying any Service of action or proceeding, or staying proceedings generally, proceedings. order staying the order may be served by sending a copy thereof, under the seal of the Court, by prepaid post letter1 to the address for service of the plaintiff or other party prosecuting such proceeding. 1 Such letter must be registered (r. 82). It is to be observed that this mode of service is permissive only, so that service of the order in the ordinary manner (r r. 79, 81 and 25), would not probably be invalid. Notice of the order might be given by telegram in such a way as to render the person receiving the notice liable as for a contempt of Court in disobeying it (Ex pte Langley, In re Bishop, Ch. D., 110). с ss. 12, 13. manager. 12.-(1.) The official receiver of a debtor's estate may, on the application of any creditor or creditors, and if Power to appoint special satisfied that the nature of the debtor's estate or business or the interests of the creditors generally require the appointment of a special manager of the estate or business other than the official receiver, appoint a manager thereof accordingly to act until a trustee is appointed, and with such powers (including any of the powers of a receiver) as may be entrusted to him by the official receiver. Advertisement of receiving order. The suggestion for the appointment of a special manager is to emanate from the creditors, but the appointment is to be made by the official receiver on his own responsibility, if satisfied that the nature of the debtor's estate or business or the interests of the creditor's generally require it. While, therefore, the official receiver is answerable to the Board of Trade, as one of its officers, as well as to the Court (s. 66 (1)) for an improper appointment, the special manager himself is bound to regard the interests of the creditors inasmuch as they have the control over his remuneration (sub-s. 3, infrà), and may, by a special resolution, require the official receiver to remove him (r. 244). Whenever the employment of the special manager seems unnecessary or unprofitable to the estate the official receiver may remove him (r. 244). Money required for the purposes of the estate may be raised or advanced by the special manager upon the authority of the official receiver (s. 70 (1) (b)), and interest at 5 per cent. will, as a rule, be allowed upon monies advanced by him, but if he make an advance without such previous authority he will be entitled to an indemnity only out of the assets and cannot obtain a personal order against the trustee for repayment (Ex pte Izard, In re Bushell, 23 Ch. D., 75). (2.) The special manager shall give security1 and account in such manner as the Board of Trade may direct. 1 r. 253. (3.) The special manager shall receive such remuneration as the creditors may, by resolution at an ordinary meeting, determine, or in default of any such resolution, as may be prescribed.1 1 r. 254. 13. Notice of every receiving order, stating the name, address, and description of the debtor, the date of the order, the Court by which the order is made, and the date of the petition, shall be gazetted and advertised in a ss. 13-15. local paper in the prescribed manner.1 1 When a receiving order is made the Registrar must forthwith give notice thereof both to the official receiver and the Board of Trade (r. 153 (1)). The Board of Trade shall cause it to be gazetted (r. 203), and the official receiver shall advertise it (r. 153 (2) and s. 70 (1) (ƒ)). A copy of the London Gazette containing a notice of the order is conclusive evidence in all legal proceedings of the order having been duly made, and of its date (s. 132 (2)). The advertisement ought to be made as soon as possible, for although it may be hard on a debtor who has a bona fide ground of appeal, yet great hardship may result to other persons by reason of its being delayed (Ex pte Rabbidge, In re Pooley, 8 Ch. D., 367, 372). Court to in certain cases. 14.—If in any case where a receiving order has been Power to made on a bankruptcy petition it shall appear to the annul reCourt by which such order was made, upon an appli- ceiving order cation by the official receiver, or any creditor or other person interested, that a majority of the creditors in number and value are resident in Scotland or in Ireland, and that from the situation of the property of the debtor, or other causes, his estate and effects ought to be distributed among the creditors under the Bankrupt or Insolvent Laws of Scotland or Ireland, the said Court, after such inquiry as to it shall seem fit, may rescind the receiving order and stay all proceedings on, or dismiss the petition upon such terms, if any, as the Court may think fit. See In re O'Reardon, L. R. 9, Ch. 74. Proceedings consequent on Order. 15. (1.) As soon as may be after the making of a First and receiving order against a debtor a general meeting of his other meetings of creditors (in this Act referred to as the first meeting of creditors. creditors) shall be held for the purpose of considering whether a proposal for a composition or scheme of arrangement shall be entertained, or whether it is expedient that the debtor shall be adjudged bankrupt,3 ss. 15, 16. and generally as to the mode of dealing with the debtor's Debtor's statement of affairs. property. 1 Not later than fourteen lays after the date of the receiving order, unless the Count ofherwise fler L, & IL * It is the duty of the official receiver to report to the creditors any propoal which may have been made by the debtor s. 70 17 A second or subsequent meeting to accept a composition or scheme of arrangement cannot be hell until after the pulic examination of the debtor is concluded s. 18 2 3 at ought to be held within fourteen days of that period, for unless the time be extended the debtor runs the risk of being adjudged bankrupt (s. 20 (1.). * At the first meeting, or any adjournment thereof, the creditors may, by ordinary resolution, resolve that the debtor be adjudged bankrupt, whereupon the Court shall adjudge him bankrupt and his property will thereupon vest in a trustee (s. 20 (1)). (2.) With respect to the summoning of and proceedings at the first and other meetings of creditors, the rules in the First Schedule shall be observed. A general meeting may be summoned by the official receiver or the trustee at any time. It is their duty to summon one when so directed by the Court or on a request in writing from one-fourth in value of the creditors (Sch. I., s. 5), and also in the case of the trustee when required to do so by a resolution of the creditors (s. 89 (2) ). A meeting to consider the propriety of removing a trustee, if one-fourth in value of the creditors desire it, may be summoned by a member of the committee of inspection, or by the official receiver (r. 227.) 16. (1.) Where a receiving order is made against a debtor, he shall make out and submit to the official receiver a statement of and in relation to his affairs in the prescribed form, verified by affidavit, and showing the particulars of the debtor's assets, debts, and liabilities, the names, residences, and occupations of his creditors, the securities held by them respectively, the dates when the securities were respectively given, and such further or other information as may be prescribed or as the official receiver may require. 1 r. 168, Form No. 35 in the Appendix. The debtor is to be furnished by the official receiver with instructions for the preparation of his statement of affairs (r r. 168, 237). When the debtor cannot himself prepare a proper statement of affairs the official receiver may at the expense of the estate employ some person to assist in its preparation (s. 70 (2)). The official receiver or some person deputed by him must also hold a personal interview with the debtor for the purpose of investigating his affairs and determining whether the estate should be administered under section 121 (r. 237 (2)). The debtor is bound to attend at the time and place appointed by the official receiver (r. 237 (3) ). If the debtor is liable as a member of a partnership, he should in his statement of affairs distinguish between his joint and separate liabilities and between his joint and separate assets (Ex pte Cockayne, In re Cockayne, L. R. 16, Eq. 218; Ex pte Gibbs, In re Webb, L. R. 10, Ch. 382). In the case of a receiving order against a firm, the debtors shall submit a statement of their partnership affairs, and each debtor a statement of his separate affairs (r. 196). (2.) The statement shall be so submitted within the following times, namely: (i.) If the order is made on the petition of the debtor, within three days from the date of the order. (ii.) If the order is made on the petition of a creditor, within seven days from the date of the order. But the Court may, in either case, for special reasons, extend the time. (3.) If the debtor fails without reasonable excuse to comply with the requirements of this section, the Court may, on the application of the official receiver, or of any creditor, adjudge him bankrupt. Under the Bankruptcy Act, 1869, it was laid down that if for any reason it was impossible for a debtor to make out a proper statement of affairs, he could not avail himself of the liquidation and composition clauses of that Act, but must submit to be made a bankrupt (Ex pte Solomon, In re Tilley, 20 Ch. D., 281; Ex pte Amor, In re Amor, 21 Ch. D., 594). (4) Any person stating himself in writing to be a creditor of the bankrupt may, personally or by agent, inspect this statement at all reasonable times, and take any copy thereof or extract therefrom, but any person untruthfully so stating himself to be a creditor shall be guilty of a contempt of court, and shall be punishable accordingly on the application of the trustee or official receiver. The statement of affairs verified by the debtor will be found on the file of proceedings, it being the duty of the official receiver to file it (r. 168). s. 16. |