34. Parliament. ceases, and the refusal to grant such certificate may be appealed $8 32, 33, from. The same rule will apply to members of Parliament, justices of the peace, mayors, aldermen, councillors, guardians, &c. By the provisions of the Act of 1869, a member of Parlia- Members of ment was, upon becoming bankrupt, incapable during one year from the date of the order of adjudication, of sitting or of voting in the House unless the order was within that time annulled, or the creditors who proved their debts were fully paid or satisfied. Now it will be seen (b) a period of six months from the date of the order of adjudication has been fixed during which time the disqualification exists; and if not removed (viz., either by annulment of the bankruptcy, or by the grant to him of a discharge with a certificate to the effect that his bankruptcy was caused by misfortune, without any misconduct on the member's part) within such six months, upon the fact being certified to the Speaker immediately upon the expiration of the said six months, the seat of the bankrupt member then becomes vacant. now essential. Under the Act of 1869 the disqualification in the case of Bankruptcy members of Parliament did not apply where the affairs of such member were liquidated by arrangement (c). So it seems, under the present Act, there must be in all cases, both of peers, members of Parliament, and other persons subjected to disqualification, "adjudication;" in other words, bankruptcy must take place; so that where, under Sect. 18, there has only been a "receiving order," followed by a composition or scheme of arrangement, and no adjudication, the section will not apply in any case. The disqualification from office has now been extended to "guardians of the poor, members of sanitary authorities, members of school boards, highway boards, burial boards, or select vestries," and upon such bankruptcy taking place, the offices of all such persons at once become vacant (d). But, it seems, as in the cases of peers and members of Parliament, and now also justices of the peace and mayors, there is nothing to (b) See section 33. (c) Ex parte Pooley re Rustell, L. R. 7 Ch. 519; 41 L. J. Bank. 41. It was otherwise as to peers, see Act of 1871; and justices of the peace were incapable of acting as such until newly assigned to act, in cases of bankruptcy, arrangement, or com position under the 22nd section of (d) S. 34. P 88 32, 33, prevent such of the above-enumerated persons from effecting a 34. composition with their creditors, or a scheme of arrangement under Sect. 18 (but quære as to 23), without incurring any disqualification whatever. Mayors, justices, &c. Debtors Act, 1869, s. 21. Municipal As to mayors and justices of the peace, Sect. 169 of this Act repeals Sects. 21 and 22 of the Debtors Act, 1869, and the effect is of such importance that these sections are given in extenso. Sect. 21 was as follows: "The provisions of the Act of the session of the fifth and sixth years of William the Fourth, chapter seventy-six, for the regulation of municipal corporations, sections fifty-two and fiftythree, as to the disqualification of mayors, aldermen, and town councillors having been declared bankrupt or having compounded by deed with their creditors, shall extend to every arrangement or composition by a mayor, alderman, or town councillor with his creditors under the Bankruptcy Act, 1869, whether the same is made by deed or otherwise." 66 By Sect. 52 of the Municipal Corporations Act (e), it is enacted that, as to mayors, aldermen, and councillors, if they are declared bankrupt," or "shall apply to take the benefit of any Act for the relief of insolvent debtors," or "shall compound with their creditors by deed," they shall "thereupon immediately become disqualified, and shall cease to hold the office of such mayor, alderman, or councillor . . . . and the council thereupon shall forthwith declare the said office to be void, and shall signify the same by notice in writing under the hands of three or more of them, countersigned by the town clerk, to be affixed in some public place within the borough, and the said office shall thereupon become void (ee); but every person so becoming disqualified, and ceasing to hold such office on account of his being declared a bankrupt, or of his applying to take the benefit of any Act for the relief of insolvent debtors, or having compounded with his creditors as aforesaid, shall, on obtaining his certificate, or on payment of his debts in full, be capable (if otherwise qualified) of being re-elected to such office" (f). Under this enactment, where a town councillor effected a composition with his creditors under Sect. 126 of the Bankruptcy Act, (e) 5 & 6 Wm. IV. c. 76. (ee) And see Reg. v. Mayor of Leeds, 7 Ad. & E. 963; Reg. v. Mayor of Oxford, 6 Ad. & E. 349, as to carrying out the section. (f) By s. 53 of the same Act, the person so disqualified and holding the office was rendered liable to a penalty of £50 for every offence. 34. 1869, and then placed his resignation in the hands of the town 88 32, 33, clerk, and announced his resignation by advertisement, and at the same time offered himself for re-election, and was afterwards (there having been no declaration by the council that the office was void, as required by the statute) re-elected a councillor, it was held that, having ceased to hold the office, he was incapable of resigning it, and that, the council not having pursued the course pointed out by the Act, the election was void, and that, the councillor not having "paid his debts in full," he was not qualified for re-election (g). And it was further held that to disqualify a person within Sect. 52 of the Municipal Corporations Act, the composition must have been by deed. So, where an alderman had, without taking the benefit of the Bankruptcy Act, 1869, effected an arrangement without a deed, although by deed he secured a person who was guarantee for the payment, it was held the office was not void even under the Debtors Act (h). Sect. 22 of the Debtors Act is. as follows: "If any person, Debtors Act, being assigned by Her Majesty's commission to act as a justice 1869, s. 22. of the peace, is adjudged bankrupt, or makes any arrangement or composition with his creditors under the Bankruptcy Act, 1869, he shall be and remain incapable of acting as a justice of the peace until he has been newly assigned by Her Majesty in that behalf." The question will now arise as to the effect of this repeal: (1.) As to mayors, aldermen, and town councillors. (2.) As to justices of the peace. By the repeal of the 21st section of the Debtors Act, 1869, the law stands as enacted by the Municipal Corporations Act of William the Fourth, and if there be no corresponding enactment in the present Act, the Bankruptcy Act, 1869, having also been repealed, the interpretation must be looked for in the Municipal Corporations Act as governed by this Act; and, it is submitted, if there is found to be any inconsistency between them, the earlier enactment must give way to the later, according to the maxim leges posteriores priores contrarias abrogant (i). The (g) Hardwick v. Brown, L. R. 8 685, and Lord Langdale, M. R.: "If C. P. 406. (h) Aslatt v. Mayor of Southampton, 16 Ch. D. 143. (i) See upon this maxim, Wilberforce on Statute Law, citing 2 Inst. two inconsistent Acts be passed at §§ 32, 33, 34, 35. Power for court to important words of the former Act are, "be declared bankrupt, or shall apply to take the benefit of any Act for the relief of insolvent debtors, or shall compound with their creditors by deed." Sect. 34 of this Act is as follows: "If a person is adjudged bankrupt whilst holding the office of mayor, alderman, councillor, guardian, overseer, or member of a sanitary authority, school board, highway board, burial board, or select vestry, his office shall thereupon become vacant." Inasmuch, therefore, as a "receiving order," a "composition" under Sect. 18 (but quære under Sect. 23), or a scheme of arrangement, even though carried out by a deed, are not any of them a being "declared bankrupt" under the Municipal Corporations Act, or "adjudged bankrupt" under this Act, and being inconsistent with the words "apply to take the benefit of any Act for the relief of insolvent debtors," as well as the words "shall compound with his creditors by deed," the words of this Act will prevail. The consequence, therefore, seems to be that the making of a "receiving order," or the effecting of a composition or scheme of arrangement under this Act, will not be such an act as will, either under the Act of William the Fourth or this Act, render the office of the individual void (k). As to justices of the peace, their status is entirely regulated by each successive Bankruptcy Act, and Sect. 22 of the Debtors Act having been repealed, as well as the Bankruptcy Act, 1869, the same conclusion seems to be deducible in their case, although under the Acts of 1869 such justices became disqualified upon making an arrangement or composition with creditors. 35. (1.) Where in the opinion of the Court a debtor annul adjudi ought not to have been adjudged bankrupt, or where it is proved to the satisfaction of the Court that the debts of the bankrupt are paid in full, the Court may, on the application of any person interested, by order, annul the adjudication. tain cases. (2.) Where an adjudication is annulled under this way; every Act of Parliament must Ely v. Bliss, 5 Beav. p. 582. (k) Probably upon payment of debts in full, both under the Act of Wm. IV. and this Act, a person otherwise disqualified may again become qualified, see ss. 35 & 36. section all sales and dispositions of property and payments duly made, and all acts theretofore done, by the official receiver, trustee, or other person acting under their authority, or by the Court, shall be valid, but the property of the debtor who was adjudged bankrupt shall vest in such person as the Court may appoint, or in default of any such appointment revert to the debtor for all his estate or interest therein on such terms and subject to such conditions, if any, as the Court may declare by order. (3.) Notice of the order annulling an adjudication shall be forthwith gazetted and published in a local paper. Compare Sect. 14 as to annulling "a receiving order." §§ 35, 36. payment of s. 121. 36. For the purposes of this Part of this Act, any debt Meaning of disputed by a debtor shall be considered as paid in full, debts in full. if the debtor enters into a bond, in such sum and with such Bankruptcy Act, 1869, sureties as the Court approves, to pay the amount to be recovered in any proceeding for the recovery of or concerning the debt, with costs, and any debt due to a creditor who cannot be found or cannot be identified shall be considered as paid in full if paid into Court. There was no provision similar to Sect. 35 in the Act of 1869, except under Sect. 28, upon the acceptance of a composition, or under Sect. 84, upon failure to appoint a trustee. But the Court had an equitable jurisdiction to annul. In Ex parte Ashworth re Hoare (1), the Chief Judge held that, apart from the power vested in the Court by the 266th rule to annul in certain special events, and without any special enactment, the Court of Bankruptcy had power at any time, for good reasons, to annul any bankruptcy in which an adjudication had been made. So it seems that under this section in all cases where, upon equitable grounds, or where even it is established that for any reason the bankrupt ought not to have been adjudged bankrupt, the adjudication can be annulled. (2) L. R. 18 Eq. 705; 43 L. J. Bank. 143; and see Ex parte Tynte re Tynte, 15 Ch. D. 125; 42 L. T. |