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NOTES OF THE MONTH.

OUR set of Test Questions on the new Bankruptcy Act appears this month, just in time to enable November Final Candidates to check themselves in their knowledge of the subject. Students must not, however, be content with a bare knowledge of the Act, but should at present be prepared with a fair knowledge of the law and practice under the Act of 1869-at least, this is our idea.

WITH regard to the application of sec. 10 of the Judicature Act, 1875, we would specially remind students of the 46 & 47 Vict., c. 28. There is a curious inconsistency in this Act, (sec. 4), when one compares it with sec. 40 of the Bankruptcy Act, 1883, which arises from the provision in 46 & 47 Vict. c. 28, having been copied from the Bankruptcy Act, 1869. Practically, it does not much matter, but it should be noted.

A QUESTION On the Bankruptcy Act, 1869, that may fairly come into an Equity paper presently, is one on sec. 125, with regard to administration in bankruptcy of estates of persons dying insolvent.

SINCE the Bills of Sale Act, 1882, practically a bill of sale given by a trader is a useless security,

are of

but on and after 1st January next, we opinion that a bill of sale, though by a trader, on goods and effects not being used in his trade, can with safety be taken, e.g., a bill of sale upon his private furniture. Our reason for this opinion is the wording of sec. 44 of the Bankruptcy Act, 1883, which only speaks of goods in the order and disposition of a bankrupt, "in his trade and business," an enactment different in this respect to the wording in sec. 15 of the Bankruptcy Act, 1869.

WE Commend to our readers' attention the very useful essay appearing in another column on the subject of Patents. This essay, and the epitome of the new Patent, &c., Act, published in last month's number, should be carefully studied by students for next year's examinations. The Act does not come into force till 1st January next, so can hardly be asked before then.

WE are asked to again draw attention to "The Student's Legal Correspondence Society," some particulars of which appear in our advertising columns. Originally it was formed a month or so ago for the mutual help of articled clerks between their Preliminary and Intermediate Examinations, but its design has now been extended to the whole period of a student's articles.

PRACTITIONERS and officials at Chambers seem puzzled as to what is the course to be taken with regard to delivery of statements of claim in actions in which appearances were entered before 24th October, and particularly those cases in which, in applications under Order XIV., liberty to defend has been given, and in which, following the old form, the order runs, "defendant to deliver statement of defence within eight days from delivery of statement of claim." It appears to us to be clearly proper in such actions to deliver statement of claim, or notice in lieu of statement of claim, as a matter of course.

IN the delivery of pleadings now, practitioners must be careful to remember the provisions of Order XIX., rule 4, as to signature of pleadings.

MEMBERS of the Incorporated Law Society appear to have been having a high time of it at the annual provincial meeting, held at Bath last month. We give no report of the proceedings, as reports have appeared in all the weekly legal papers, and the matter is hardly generally interesting to our readers-at any rate we cannot put other matter aside for it. Though a great deal of nonsense is read and talked at these meetings, yet they serve useful purposes in some respects.

THERE are at the present time somewhat over 4000 solicitors' articled clerks in England.

THE new clock outside the Royal Courts of Justice is now about in working order, and probably, by the time these lines are in print, will be actually going, and striking out the hours. A good deal of twaddle is talked about its being an unsightly and useless projection, but at the risk of being considered a Goth, we don't see much the matter with it, and it would appear to be about as useful as any other clock.

MR. C. H. MASON, a some time prominent athlete, has been appointed solicitor to the London and North Western Railway. He is 32 years of age, and is an ex-champion at one and four miles respectively.

THE Michaelmas Sittings promise to commence with plenty of work. Let us hope that we shall soon see satisfactory arrangements for the working off of the disgraceful arrears in Chancery, and for a better order of things in future. The bad name Chancery has always had, has been mainly on account of its delays, and we read in Hallam the funny statement that in Cromwell's time, the Commons "voted the abolition of the Court of Chancery, a measure provoked by its insufferable delay." We can't well adopt this summary course, but joking apart, its delays are abominable, and improvement of this kind would do more good than many batches of new rules.

PARTICULARS of lectures and classes at the Incorporated Law Society appear in our advertising columns. The Equity lecturer says he "will specially direct the attention of his class to the Statute of Frauds." What does he mean?

THE Lord Chancellor will receive the Judges, Queen's Counsel, Benchers of the Inns of Court, and also the Registrars and Masters of the several divisions of the Supreme Court of Judicature, at his lordship's residence, 30, Portland Place, on the 2nd inst., (the first day of Michaelmas sittings), at twelve o'clock.

MR. RICHARD HENN COLLINS and Mr. John C. Bigham, both of the Middle Temple and the Northern Circuit, have been appointed by the Lord Chancellor to be Queen's Counsel.

Examinations.

This month's Intermediate Examination takes place on the 8th inst., the Final on the 6th and 7th inst., and the Honours Examination on the 9th inst. The questions and answers at the examinations will appear as usual in our next month's number.

For full particulars as to next year's examinations see our number for September last. The dates are as follows: Intermediate: 17th January, 24th April, 19th June,and 6th November. Final: 15th and 16th January, 22nd and 23rd April, 17th and 18th June, and 4th and 5th November. The Honours Examination, according to present arrangements, takes place on the Friday in each examination week.

Students' Casqs.

Ex parte Englehardt, In re Englehardt, 23 Ch. D., 706. (C. A.)

A liquidating debtor, by mistake, inserted in his statement of affairs that the debt due to a creditor was £17, instead of £17 15s.

The creditors accepted a composition.

DECIDED that the creditor whose debt had been wrongly stated was not bound by the resolution for composition, and could enforce the whole debt.

NOTE.-The Bankruptcy Act, 1869, and rules, provide that a mistake inadvertently made by the debtor in his statement of affairs, may be corrected with the assent of a majority in value of the creditors at a general meeting; but the court, in the above case, decided that as the debtor had for four months known of the error and had taken no steps to remedy it, that it would not, after so long a time had elapsed, allow him to call a general meeting to remedy the defect.

Note in Robson on Bankruptcy, 4th edition, p. 767; in Baldwin, 3rd edition, p. 343; Ringwood, 2nd edition, p. 113.

Phillips v. Homfray, 49 L. T. (N. S.), 5. (C. A.)

The plaintiff brought an action, claiming (amongst other things) a declaration that the defendants were liable to pay the plaintiff a royalty for minerals carried through galleries made under the plaintiff's land without his license. In such action a decree had been made, directing, amongst other enquiries, an enquiry as to what quantities of minerals had been conveyed by such underground roads, and what amount ought to be paid to the plaintiff as a royalty for the use of such roads. One of the defendants died before the enquires were answered. The question to be decided was whether the user of the road was such a mere personal tort on the part of the defendant, as that all cause of action against him ceased on his death, or whether the action could be maintained against his executors. The majority of the court, Cotton and Bowen, L. J. J., decided, reversing the decision of Pearson, J., that the action could not (so far as regarded these enquiries), be maintained against the executor. Baggallay, L. J., dissented from the order.

NOTE. The case is a most important one, illustrating the maxim actio personalis morita cum persona. In this case it must be remembered that a decree had been made declaring that the defendants were liable to pay to the plaintiff compensation for the user of the underground roads, and an enquiry was directed as to how much was to be paid by the defendants. One of the defendants died before the amount of the compensation to be paid was ascertained, and the court of appeal has decided that as the plaintiff's claim was for an unliquidated demand for a wrong done, the right of action was only against the wrongdoer, and not against his executors.

The rule to be derived from this case is that an action can only be maintained against executors for those torts of their testator by which he has appropriated property belonging to another, and added it to his own assets, and that it is not sufficient to maintain an action against the executors, to show that the deceased has received a benefit by the tort.

Note in Indermaur's Principles of Common Law, 3rd edition, p. 374; Williams' Personal Property, chapter on "actions ex delicto;" Smith's Manual of Common Law, 8th edition, sec. 1051.

In re W. A. Freston, 11 Q. B. D., 545. (C. A.) Where an order is made against a solicitor, as an officer of the court, disobedience to it is a contempt of a criminal nature. An attachment issued to enforce it is of a punative nature, and no privilege from arrest exists in respect of it.

NOTE. A solicitor is privileged from arrest on civil process whilst attending court to discharge his professional duties, and it was decided in the above case that this right extends to attendance as an advocate at a police court, although the proceedings at the police court he was attending was a preliminary inquiry into a charge of felony. Note in Stephen's Commentaries, Vol. III., under "Solicitors."

Munster v. Lamb, 11 Q. B. D., 584. (C. A.) Words spoken by an advocate in good faith, and relevant to the matter in hand, are not actionable however defamatory they may be.

NOTE in Indermaur's Common Law, 3rd edition, p. 350; Smith's Manual Common Law, 8th edition, secs. 117, 119.

Webb v. Beavan, 11 Q. B. D., 609.

It is not necessary to prove special damage in an action of slander where the slander consists in imputing that the plaintiff has been guilty of a criminal offence. It is not necessary that the words used should impute an indictable offence.

NOTE in Indermaur's Common Law, 3rd edition, p. 356; Smith's Manual of Common Law, 8th edition, sec. 106.

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Re Jones-Jones v. Searle, 49 L. T. (N. S.), 91. (V. C. Bacon.)

In this case the Defendants, who were executors and trustees under a will, kept the balance of their testator's personal estate at their bankers. The court made them pay £5 per cent. from the time of payment of the debts, on the balance in their hands, but allowed them their costs.

Re Watson, Kipling & Co., 49 L. T. (N. S.), 115. (Kay, J.)

This was a claim, in a winding up, for poor rate accrued due on the property of the company, since the commencement of the winding up. The property on which it had become due, consisted of blast furnaces, which had been kept going by the liquidator merely to keep the property in a saleable state, but not to make a profit by it.

The court, under the circumstances, declined to exercise its discretion to make the liquidator pay the poor rate.

NOTE in Smith's Summary of Companies, 2nd edition,

p. 75.

Upmann v. Forreter, 49 L. T. (N. S.), 123. (Chitty, J.) The defendant had imported cigars which were in boxes which bore an imitation of the plaintiff's brand. It was alleged by the defendant, and not disproved, that he imported the cigars only for private consumption, and not for sale, and that he was unaware of the infringement of the plaintiff's trademark. The defendant consented to an injunction to restrain his selling or parting with the cigars, and for their destruction. No notice had been served on the defendant before action brought. The only question was, whether the defendant was to pay the costs of the action and injunction. The court directed that he must pay the costs of the action.

NOTE in Indermaur's Common Law, 3rd edition, p. 179; Smith's Manual of Common Law, 8th edition, sec. 329; and Williams' Personal Property, in the chapter on Patents and Copyrights.

Gibbs v. Sidney, 49 L. T. (N. S.), 132. (North, J.)

The registration of a deed in the Middlesex Registry cannot be vacated by the order of a judge of the High Court.

NOTE.-North, J., in his decision in this case, expressed the opinion that it would be within the jurisdiction of the Master of the Rolls to make such an order.

Note in Prideaux, Vol. II., under "Memorials."

In re Mackenzie's Trusts, 23 Ch. D., 750. (Chitty, J.) In this case, Chitty, J., decided that trustees to whom money was given to be laid out in the purchase of land to be settled in strict settlement, might, under the provisions of sec. 21 of the Settled Land Act, 1882, invest it in debenture stock of a railway com. pany.

NOTE under sec. 21 of the Settled Land Act, 1882.

Charles v. Finchley Local Board, 23 Ch. D., 767. (Pearson, J.)

This was an action for an injunction against the defendants to restrain them from allowing sewage to flow into a brook, so as to become a nuisance to the plaintiff,

It appeared from the evidence that the nuisance was really caused by a third party, not a party to the action, who had a right by agreement with the defendants to pass rain water into the brook, but who wrongfully passed sewage with it.

DECIDED that as the third party was acting in violation of the agreement, the plaintiff was entitled to an injunction against the defendants, on the ground that they could lawfully prevent the nuisance by stopping up the pipe.

NOTE. It must be remembered, as is clearly pointed out by Mr. Justice Pearson in his judgment, that the injunction was only granted against the defendants on the ground that they had a clear right against the third party to abate the nuisance, which they could not enforce other than by an action, and that the injunction would not have been granted if the defendant's only means of obeying the order had been by bringing an action against the third party. Howe v. The Prudential Assurance Company, 49 L. T. (N. S.), 133. (Lopes, J.)

A policy of life assurance cannot be assigned verbally, but must be assigned in writing.

NOTE in Williams' on Personal Property, chapter on Insurance.

A SET OF TEST QUESTIONS ON THE
BANKRUPTCY ACT, 1883.
By the EDITOR.

1. Enumerate the various Acts of Bankruptcy, and state what course has been substituted for the former procedure by debtors' summons. Is there any distinction now in these Acts of Bankruptcy between traders and non-traders?

2. What are the essentials to constitute a good petitioning creditor's debt, and in what position does a creditor, holding security, stand with regard to petitioning?

3. What affidavit must accompany a creditor's petition in bankruptcy, and what proof must be given on the hearing of the petition? Is a creditor, who has presented a petition, at liberty to afterwards withdraw it ?

4. What mode of procedure is substituted for the former course of the debtor's petition for liquidation by arrangement with his creditors ?

5. What is a receiving order; and when made, what is its effect? What publicity has to be given to it? When may it be annulled?

6. What power is conferred with regard to staying proceedings against a bankrupt? Where an order is made, restraining proceedings, how may service thereof be effected?

7. What power has an official receiver to appoint a special manager, and what security does the latter have to give, and what remuneration is he to receive?

8. Within what time, after a receiving order, is a first meeting of creditors to be called? How is it summoned, and by whom?

9. A creditor proves in respect of, (1) a contingent liability; (2) on a bill on which, besides the bankrupt, three other persons are liable. Is he entitled to vote at a meeting of creditors?

10. What are the rules relating to a secured creditor proving his debt?

11. Enumerate the special provisions now made with regard to voting at a meeting of creditors by proxy?

12. At a first meeting of creditors two creditors only are present and constitute the meeting. State their position and powers and the course that should be taken.

13. State shortly the powers and duties of the chairman of a meeting of creditors.

14. Within what time must a debtor furnish his statement of affairs to the official receiver, and how must it be verified? What is the consequence of his not furnishing it?

15. State shortly what provisions are made by the Act as to the public examination of the debtor, and mention the prominent alterations in this respect made in the previous bankruptcy system.

16. Sketch shortly the procedure on behalf of a debtor for the carrying out of an arrangement with his creditors in the nature of a composition or otherwise (see sec. 18).

17. Compare the procedure asked in the last question with the previous procedure under the Bankruptcy Act, 1869.

18. What is the effect of a composition scheme on debts which a discharge in bankruptcy would not operate to exonerate the debtor from ?

19. When is a debtor adjudged a bankrupt, and what publicity is given to the adjudication ?

20. How is a trustee in bankruptcy appointed, and what security is such trustee required to give? What controlling power over the appointment of trustee is vested in the Board of Trade?

21. Who may be on the committee of inspection ? How may such committee act ? How may any member be removed by the creditors, and how may a member of the committee free himself from the position?

22. What power is there of accepting a composition scheme after an adjudication in bankruptcy has been made?

23. What are the duties of a debtor during his bankruptcy proceedings, and what liability is he under if he fails in any of these duties?

24. What power of arrest has the court over the person of the debtor?

25. What power has the court over post letters addressed to the bankrupt?

26. What general powers are vested in the court for obtaining discovery or information relative to the debtor's property ?

27. When may a bankrupt apply to the court for his order of discharge? When may the court refuse to grant it, or defer the operation of the discharge?

28. What information or evidence has the court before it on the hearing of an application for discharge? What notice of the application for discharge is given to the creditors?

29. A makes a settlement, on his marriage, with his wife, he being at the time in difficulties. Shortly after the marriage he becomes bankrupt. Can the court in any way consider or deal with this ante-nuptial settlement ?

30. What provision does the Act contain with regard to voluntary settlements made by persons who afterwards become bankrupt? and compare this provision with the enactment on the subject in the Bankruptcy Act, 1869.

31. From what debts does an order of discharge not operate to discharge a debtor ?

32. A being an undischarged bankrupt buys goods of B who knows nothing of A's bankruptcy. Does A incur any and what criminal liability?

33. Enumerate the disqualifications ensuing to a debtor from his adjudication in bankruptcy, and state how such disqualifications may be removed.

34. State the position with regard to the seat in Parliament of a Member who is adjudicated bankrupt. 35. When has the court power to annul an adjudication in bankruptcy?

36. What debts or claims are and are not provable in a bankruptcy? How is the value of any contingent debt or claim arrived at ?

37. How does a creditor prove his debt, and to whom does he send the proof?

38. State shortly the rules to be observed as regards proof by secured creditors, and the position of any such secured creditor as regards his security.

39. What provision is made with regard to proof of a debt owing but not payable until a future time? 40. What is the rule as to set-off in bankruptcy? Does this rule hold good in the winding up of a company?

41. To what debts is priority given in the administration of the bankrupt's estate? and with regard to such preferred creditors, how do they rank between themselves? How does this rule as to priorities apply in the case of a composition scheme being come to ?

42. What are the points to be observed in the bankruptcy of partners with regard to the joint and separate estates respectively?

43. What is the position of an apprentice or articled clerk on the bankruptcy of his principal, (a) with regard to the apprenticeship deed or the articles, and (b) with regard to a premium he has paid?

44. In what way does bankruptcy affect a landlord's power to distrain for rent?

45. At what date is a bankruptcy said to commence? Point out the differences in this respect between the new law and the enactment of the Act of 1869.

46. What property of the bankrupt does not, on bankruptcy, pass to his creditors?

47. What do you understand by the reputed ownership clause? Show the main differences on this subject between the new law and the Act of 1869.

48. What is the position of an execution creditor, or a creditor who has obtained a garnishee order, in the event of the bankruptcy of the debtor?

49. Having reference to bankruptcy, what are the duties of a sheriff who has seized goods on an execution ?

50. What is a fraudulent preference? How is the law on this subject altered by the Act of 1883 ?

51. In what position does a person stand who makes any payment to, or enters into any contract with one who has committed an act of bankruptcy?

52. What is the position of a trustee with regard to the following proverties of the debtor:-(a) shares standing in bankrupt's name; (b) copyhold property to which bankrupt has been admitted; (c) choses in action ?

53. A bankrupt, being a beneficed clergyman, in what way is the benefit of his living obtained for his creditors ?

54. How do the creditors of a bankrupt obtain any benefit from the pay, salary, pension, or other like income he may be entitled to, either as an officer, civil servant, or otherwise?

55. State shortly the powers of a trustee to disclaim onerous property, and the effect of such disclaimer.

56. State generally the duties and powers of a trustee in bankruptcy with regard to the bankrupt's property, and specially enumerate those things which he can only do with the consent of the committee of inspection.

57. What are the chief provisions of the Act with regard to declaration and distribution of dividends? What is the position of a creditor who omits to prove until after declaration of one dividend?

58. How is payment of a dividend enforced against a trustee?

59. Explain the position and duties of an official receiver, particularly referring to his duties as regards both the debtor's conduct and the debtor's estate.

60. How is a trustee in bankruptcy remunerated under the Act of 1883 ?

61. What provisions are made for payment of moneys received by a trustee into a bank?

62. What provision is made with regard to the audit of the accounts of trustees in bankruptcy?

63. What record of the proceedings in a bankruptcy should be kept by a trustee, and what statements thereof must he furnish to the Board of Trade?

64. When and how may a trustee in bankruptcy obtain his release ?

65. What is the effect of a receiving order being made against a person who happens to be a trustee in bankruptcy?

66. How may a trustee in bankruptcy be removed? 67. How may a new trustee be appointed on any vacancy occurring in the office?

68. What limitation is placed by the Act on the voting powers of a trustee and certain other and what persons connected with him?

69. What control over the trustee is possessed by the committee of inspection, the creditors, and the Board of Trade, respectively?

70. What courts are to have jurisdiction in bankruptcy? How is the old Bankruptcy Court dealt with? How are bankruptcy proceedings to be entitled ?

71. What are the provisions as to the court to which a bankruptcy petition is to be presented?

72. What special provision is made for the consideration and determination by the high court, of any question of law arising in a bankruptcy proceeding in a county court?

73. State generally the powers of registrars in bankruptcy, both in the high court and the county

court.

74. What general power has the court of deciding questions in any case of bankruptcy, and how, in this respect, are the powers of the county court less than those of the high court?

75. What power is there of directing a trial by jury of any question of fact arising in a bankruptcy

76. In what way does this Act extend the jurisdiction of the county court as regards imprisonment for debt? On the hearing of any judgment summons, what course may be adopted by the judge instead of committing?

77. What rights of appeal are there in bankruptcy matters ?

78. Where a creditor, having presented a bankruptcy petition, does not diligently proceed with it, what course may any other creditor take who desires the debtor's adjudication?

79. A, a member of a partnership concern, becomes bankrupt. Can the remaining partners alone release a debt owing to the firm? How should A's trustee proceed if he desires to sue in respect of debts owing to the firm ?

80. In what way may a bankruptcy order made here be enforced in Scotland or Ireland?

81. What provision is made for the summary administration of a debtor's estate, where the official receiver reports that it is not likely to exceed in value £300.

82. What power is given to the county court of making an administration order, instead of directing payment of the amount of a judgment by instalments ? Detail the proceedings generally under such an order, and state what publicity is given to it, and what is to be the maximum amount of the costs of the administration ?

83. What provision is made by the Act for obtaining the administration of the estate of a deceased person "In Bankruptcy"? How soon after the death may an order for this purpose be made?

84. Under such an administration order as mentioned in the last question, in whom does the deceased debtor's property vest? What is the first claim in respect of the estate to which regard is to be had?

85. What is the effect of notice being given to the legal personal representative of the presentation of a

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