given as security for any debt (so as to require registration as a bill of sale) is protected (In re Waugh, Ex pte Dickin, 4 Ch. D., 524; Ex pte Newitt, In re Garrud, 16 Ch. D., 522; Brown v. Bateman, L. R. 2, C. P., 272, cf. Ex pte Jay, In re Harrison, 14 Ch. D., 19). So, too, a license given to a guarantee society to seize the goods of the person guaranteed, in order to indemnify the society against any liability incurred by them under their guarantee, is protected (Krehl v. Great Central Gas Co., L. R. 5, Ex. 289). Taking possession, under a duly registered bill of sale, of goods, in the hands of the bankrupt at the commencement of the bankruptcy, without notice of it is a protected transaction (In re Wright, Ex pte Arnold, 3 Ch. D., 70; Graham v. Furber, 14 C. B., 134). But this section will not give protection to any assignment which, though not impeachable under this Act, may be so under the Bills of Sale Act (Ex pte Attwater, In re Turner, 5 Ch. D., 27; Ex pte Payne, In re Cross, 11 Ch. D., 539). Notice to the sheriff claiming the property in the goods of the bankrupt is not a dealing (Ex pte Dorman, In re Lake, L. R. 8, Ch. 51, cf. Brewin v. Short, 5 El. & Bl., 227, at p. 237). Giving a post-dated cheque for value to the bankrupt without notice of an act of bankruptcy is a "dealing" with him within this section, and the trustee cannot recover the amount of the cheque from the drawer (Ex pte Richdale, In re Palmer, 19 Ch. D., 409). No formal notice of any specific act of bankruptcy is necessary, it is sufficient, if the creditor or other person has such information as would, if true, show that an act of bankruptcy had been committed, and that may come to him in any way or from any quarter (Lucas v. Dicker, 6 Q. B. D., 84, affirming s. c., 5 C. P. D., 150; Udal v. Walton, 14 M. & W., 254; Turner v. Hardcastle, 11 C. B., N. s., 683), or, if he be proved to have known facts from which a jury would naturally and properly infer that an act of bankruptcy had been committed, and he cannot be allowed to escape from the effect of notice by saying that he did not draw the natural inference from the facts (Ex pte Snowball, In re Douglas, L. R. 7, Ch. 534, at p. 549; Hope v. Meck, 10, Ex. 829). A creditor was deemed to have had constructive notice of an act of bankruptcy, which consisted in a previous execution levied by seizure and sale of the debtor's goods, such execution having been issued on his behalf (Ex pte Dawes, In re Husband, L. R. 19, Eq. 438). It is not sufficient, if he be only told something which might on further inquiry show him that an act of bankruptcy did exist (Evans v. Hallam, L. R. 6, Q. B., 713; Conway v. Nall, 1 C. B., 643), neither is notice of an intention on the part of the debtor to commit an act of bankruptcy sufficient (In re Wright, Ex pte Arnold, 3 Ch. D., 70; Ex pte Hallifax, 2 Mont. D. & De G., 544); but if the creditor wilfully abstain from acquiring knowledge of the act, it is tantamount to notice (Bird v. Bass, 6 Man. & G., 143). Notice may be given by letter, it beɩng a question for the jury when the creditor actually received it (Bird v. Bass, suprà); and there seems no reason why it may not also be given by telegram (Ex pte Langley, In re Bishop, 13 Ch. D., 110). Notice to the creditors' solicitor, or to the solicitor's clerk if entrusted with s. 49. ss. 49, 50. the management of the particular matter (Pike v. Stephens, 12 Q. B., 465 ; Pennell v. Stephens, 7 C. B., 987), or to an agent acting in the particular business, binds the creditor (Brewin v. Briscoe, 2 El. & E., 116); and notice to one partner (Bignold v. Waterhouse, 1 M. & S., 255, at p. 259), or to one co-plaintiff (Edwards v. Cooper, 11 Q. B., 33), affects the other partners or co-plaintiffs. Possession of property by trustee. Knowledge, on the part of a creditor, of an act of bankruptcy committed by one partner invalidates the payment of a partnership debt to him (Craven v. Edmondson, 6 Bing., 734). The onus of proving that he had no notice lies on the person claiming the protection of this section (Pearson v. Graham, 6 A. & E., 899; Ex pte Schulte, In re Matanlè, L. R. 9, Ch. 409); this proposition was questioned by Bacon, C. J., (In re Waugh, Ex pte Dickin, 4 Ch. D., 524, at p. 531). 5 This means any act of bankruptcy available for a bankruptcy petition at the date of the presentation of the petition on which the receiving order is made (s. 168), that is, one committed within three months next preceding the presentation of the petition (ss. 6 (1) (c) and 43), and is in accordance with the decisions in Ex pte Crosbie, In re Bedell, 7 Ch. D., 123, and Ex pte Gilbey, In re Bedell, 8 Ch. D., 248. Realisation of Property. 50.-(1.) The trustee shall, as soon as may be, take possession of the deeds, books, and documents of the bankrupt, and all other parts of his property capable of manual delivery. Where the bankrupt has, prior to the bankruptcy, assigned all his book debts and books to a bona fide purchaser for value, the latter cannot be compelled to hand over to the trustee the books of account (In re West, Ex pte Good, 21 Ch. D., 868). The Court may on the application of the official receiver direct in what manner the debtor's books of account or any of them may be disposed of (r. 216). (2.) The trustee shall, in relation to and for the purpose of acquiring or retaining possession of the property of the bankrupt, be in the same position as if he were a receiver of the property appointed by the High Court, and the Court may on his application, enforce such acquisition or retention accordingly. (3.) Where any part of the property of the bankrupt consists of stock, shares in ships, shares, or any other property transferable in the books of any company, office, or person, the trustee may exercise the right to transfer the property to the same extent as the bankrupt might ss. 50, 51. have exercised it if he had not become bankrupt. (4) Where any part of the property of the bankrupt is of copyhold or customary tenure, or is any like property passing by surrender and admittance or in any similar manner, the trustee shall not be compellable to be admitted to the property, but may deal with it in the same manner as if it had been capable of being and had been duly surrendered or otherwise conveyed to such uses as the trustee may appoint; and any appointee of the trustee shall be admitted to or otherwise invested with the property accordingly. (5.) Where any part of the property of the bankrupt consists of things in action, such things shall be deemed to have been duly assigned to the trustee. In the case of an equitable chose in action, the trustee in bankruptcy must also perfect his title by giving notice of the bankruptcy to the trustee of the fund, otherwise an assignee for value from the bankrupt without notice of the bankruptcy by giving notice of his assignment to the trustee of the fund will gain priority over him (Palmer v. Locke, 18 Ch. D., 381, following, In re Barr's Trusts, 4 K. & J., 219, and In re Atkinson, 2 De G. M. & G., 140; cf. In re Bright's Settlement, 13 Ch. D., 413). (6.) Any treasurer or other officer, or any banker, attorney, or agent of a bankrupt, shall pay and deliver to the trustee all money and securities in his possession or power, as such officer, banker, attorney, or agent, which he is not by law entitled to retain as against the bankrupt or the trustee. If he does not he shall be guilty of a contempt of Court, and may be punished accordingly on the application of the trustee.1 1 r. 77, Forms Nos. 108 and 110 in the Appendix. 51. Any person acting under warrant of the Court Seizure of may seize any part of the property of a bankrupt in the property of bankrupt. custody or possession of the bankrupt, or of any other person, and with a view to such seizure may break open any house, building, or room of the bankrupt where the bankrupt is supposed to be, or any building or receptacle of the bankrupt where any of his property is supposed ss. 51, 52. to be: and where the Court is satisfied that there is reason to believe that property of the bankrupt is concealed in a house or place not belonging to him, the Court may, if it thinks ft, grant a search warrant to any constable or officer of the Court, who may execute it according to its tenor. Sequestration of ecclesiastical Jenefice. As to the executie of these warrants, see s. 119 (2) 1. 75, and Forms Nos. 101 and 102 in the Appendix. 52-1. Where a bankrupt is a beneficed clergyman, the trustee may apply for a sequestration of the profits of the benefice, and the certificate of the appointment of the trustee shall be sufficient authority for the granting of sequestration without any writ or other proceeding, and the same shall accordingly be issued as on a writ of levari facias founded on a judgment against the bankrupt, and shall have priority over any other sequestration issued after the commencement of the bankruptcy in respect of a debt provable in the bankruptcy, except a sequestration issued before the date of the receiving order by or on behalf of a person who at the time of the issue thereof had not notice of an act of bankruptcy committed by the bankrupt, and available for grounding a receiving order against him. 1 The writ of levari facias is abolished in civil proceedings (s. 146 (2)). A beneficed clergyman became bankrupt twice; a sequestration at the instance of the trustee in his first bankruptcy was not issued until after his second bankruptcy, but before one issued by the trustee in the second bankruptcy: Held, that the first of such sequestrations had priority over the second (Ex ple Chick, In re Meredith, 11 Ch. D., 731). The fact that the bankrupt has obtained his discharge does not prevent the trustee from obtaining sequestration of the profits of a benefice which the bankrupt held at the time of his bankruptcy (ibidem). (2.) The bishop of the diocese in which the benefice is situate may, if he thinks fit, appoint to the bankrupt such or the like stipend as he might by law have appointed to a curate duly licensed to serve the benefice in case the bankrupt had been non-resident, and the sequestrator shall pay the sum so appointed out of the profits of the benefice to the bankrupt, by quarterly in- ss. 52, 53. stalments while he performs the duties of the benefice. (3.) The sequestrator shall also pay out of the profits of the benefice the salary payable to any duly licensed curate of the church of the benefice in respect of duties performed by him as such during four months before the date of the receiving order not exceeding fifty pounds. 34 & 35 Vict., c. 43. (4). Nothing in this section shall prejudice the operation of the Ecclesiastical Dilapidations Act, 1871, or the Sequestration Act, 1871, or any mortgage or charge duly c. 45. created under any Act of Parliament before the commencement of the bankruptcy on the profits of the benefice. creditors. 53.—(1.) Where a bankrupt is an officer of the army Appropriation of poror navy, or an officer or clerk or otherwise employed tion of pay or engaged in the civil service of the Crown, the trustee or salary to shall receive for distribution amongst the creditors so much of the bankrupt's pay or salary as the Court, on the application of the trustee, with the consent of the chief officer of the department under which the pay or salary is enjoyed, may direct. Before making any order under this sub-section the Court shall communicate with the chief officer of the department as to the amount, time, and manner of the payment to the trustee, and shall obtain the written consent of the chief officer to the terms of such payment. The Registrar must send a copy of the proposed order to the chief officer of the department under which the pay or salary is enjoyed, and until his written consent be obtained the application must stand adjourned (r. 72). For the form of the order, see Form No. 89 in the Appendix. (2.) Where a bankrupt is in the receipt of a salary or income other than as aforesaid, or is entitled to any half-pay, or pension, or to any compensation granted by the Treasury, the Court, on the application of the trustee, shall from time to time make such order as it thinks just for the payment of the salary, income, halfpay, pension, or compensation, or of any part thereof, to |