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any person who, at the date of the receiving order was a partner or co-trustee with the bankrupt, or was jointly bound or had made any joint contract with him; nor a bankrupt's surety (sect. 30).

Notwithstanding his discharge, also, a discharged bankrupt is bound to give such assistance as the trustee may require in the realization and distribution of the property, and if he neglects to do so his discharge may be revoked by the Court (sect. 28, sub-s. 7).

Undischarged Bankrupt obtaining Credit. Under the present Act, a great and much needed alteration has been made in the position of a bankrupt who has not obtained his discharge. The discharge is now, in fact, a serious formality, of substantial value to the bankrupt. Previously, indeed, it appeared to be almost a matter of indifference to insolvents whether they got their discharge or not. By sect. 31, it is now provided, however, that: "Where an undischarged bankrupt under this Act obtains credit to the extent of 207. or upwards from any person, without informing such person that he is an undischarged bankrupt, he shall be guilty of a misdemeanour, and may be dealt with and punished as if he had been guilty of a misdemeanour under the Debtors Act, 1869, and the provisions of that Act shall apply to proceedings under this section.” This salutary provision will, it is hoped, go far towards putting an end to a system of fraud which has been especially prevalent.

SECTION VIII.

OF THE POWER OF THE COURT TO ANNUL ADJUDICATION IN CERTAIN CASES.

Even after an adjudication has taken place, power is given to the Court to annul such adjudication in certain

cases.

Where, in the opinion of the Court, a debtor ought not to have been adjudged bankrupt, or where it is proved to its satisfaction 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, and notice of the order annulling the adjudication shall be forthwith gazetted and published in a local paper (sect. 35).

The meaning of "payment of debts in full" is further defined by the Act as follows: "For the purpose of this part of the Act, any debt disputed by a debtor shall be considered as paid in full, if the debtor enters into a bond, in such sum and with such 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 to be paid in full, if paid into Court" (sect. 36).

In cases where an adjudication is annulled, the validity of acts previously done by authorized persons in respect of the property of the bankrupt is especially reserved. All sales and dispositions of property, and payments duly made, and all acts done by the official receiver, or the 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 such appointment, revert to the debtor for all his estate or interest therein, subject to any conditions which the Court may declare by order.

It may sometimes happen, also, that after a debtor has been adjudged bankrupt the creditors may resolve to entertain a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankrupt's affairs, and the bankruptcy may be thereupon annulled. As to the proceedings in such a case, see post, p. 111.

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Debts not Provable in Bankruptcy. Under the Act there are three classes of debts or liabilities which are not provable in bankruptcy.

(1) Demands in the nature of unliquidated damages arising otherwise than by reason of a contract, promise, or breach of trust.

(2) Debts or liabilities contracted by the bankrupt with any person after that person has had notice of any act of bankruptcy available against the debtor.

(3) Contingent debts or liabilities, the value of which cannot in the opinion of the Court be fairly estimated (sect. 37).

Debts Provable. With the above exceptions all debts and liabilities, present or future, certain or contingent, to which the debtor is subject at the date of the receiving order, or to which he may become subject.

before his discharge by reason of any obligation incurred before the date of the receiving order, may be proved.

Contingent Debts, &c. Where any debt or liability thus provable by reason of its being subject to any contingency, or for any other cause, does not bear a certain value, an estimate of the value is to be made by the trustee.

But any person aggrieved by such estimate may appeal to the Court, in which case, (1) as has been shown, if the Court is of opinion that the value of the debt or liability cannot be fairly estimated, it shall not be provable; (2) if the Court is of opinion that "the value of the debt or liability is capable of being fairly estimated, the Court may direct the value to be assessed before the Court itself without the intervention of a jury, and may give all necessary directions for this purpose, and the amount of the value when assessed shall be deemed to be a debt provable in bankruptcy" (sect. 37, sub-ss. 4-7).

Further, "liability" shall for the purposes of the Act include "any compensation for work or labour done, any obligation or possibility of an obligation to pay money or money's worth on the breach of any express or implied covenant, contract, agreement, or undertaking, whether the breach does or does not occur, or is or is not likely to occur, or capable of occurring before the discharge of the debtor; and generally it shall include any express or implied engagement, agreement, or undertaking to pay, or capable of resulting in the payment of, money or money's worth, whether the payment is, as respects amount, fixed or unliquidated ; as respects time, present or future, certain or dependent

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