Power to
discharge liabilities incurred
outside the Colony.
Cash balan-
ccs, and the
remunera-
170
(2.) Any such application shall he heard and determined in such manner as the Court may direct, and it shall be lawful for the Court to hear such parties and persons as
may think fit.
it
(3.) The costs of any such application shall be in the discretion of the Court.
(4.) No claim for any costs awarded against such liquidator on any such application shall have any priority over any other claim against such liquidator in respect of the winding up.
7. Any liquidator appointed under the Principal Ordi- nance shall with the permission of the Governor be entitled to discharge out of the assets in his hand any liability of the alien enemy whose trade or personal affairs such liquidator was appointed to wind up, although such liability may have arisen out of a transaction entered into by such alien enemy on behalf of a branch of his trade outside the Colony and may not be a liability which would ordinarily have been discharged by such alien enemy within the Colony.
8.-(1.) In sub-sections (11), (12) and (13) of section 5 of the Alien Enemies (Winding up) Ordinance, 1914, as enacted tion thereon, by section 7 of the Alien Enemies (Winding up) Amend- ment Ordinance, 1914, the total assets realised or brought to credit by the liquidator shall be deemed to include all credit balances in any bank in any account formerly operated no. by the alien enemy whose trade or personal affairs such liquidator was appointed to wind up, and all sums of money due and payable to any such alien enemy by his compra- dore immediately before the appointment of such liquidator, but no liquidator shall be entitled to any remuneration on any such balance or sum of money without the express permission of the Governor.
Goodwill
and trade marks.
(2.) It shall be within the absolute discretion of the Governor to determine whether any remuneration on any such balance or sum of money shall be drawn.
(3.) Any remuneration on any such balance or sum of money drawn by any liquidator before the commencement of this Ordinance shall, unless the Governor otherwise direct, forthwith be repaid or placed to the credit of the alien enemy whose trade or personal affairs such liquidator was appointed to wind up.
9. No liquidator shall without the express permission of the Governor assign away the goodwill of the trade or of any part of the trade which he was appointed to wind up, or any trade mark used in connection therewith.
Objects and Reasons.
One object of this Bill is to prevent actions being brought against liquidators appointed under the Principal Ordinance in respect of claims which are not disputed. It is obviously undesirable that the estate should be saddled with the costs of such unnecessary actions, and it would be unfair to the other creditors, and against the spirit of the Principal Ordinance, if not against its express provi- sions, if the plaintiff in any such action were to obtain any priority thereby.
A somewhat similar provision exists in bankruptcy law, where no action can be commenced or continued except with the leave of the Court and on such terms as the Court may impose. The authority proposed in the Bill is the Governor and not the Court because the general scheme of the Principal Ordinance is a winding up under the control of the Governor while in bankruptcy the winding up is under the supervision of the Court.
It should be remembered that the winding up under the Principal Ordinance differs from the winding up in bankruptcy in one very important point, for the winding up in bankruptcy results eventually in the discharge of the debtor from all claims provable in the bankruptcy, while