SAL
2-
3. Every order and judgment duly made or given in any Action A Aor other legal proceeding Aby or action A brought A against any liquidator appointed midler against
the Principal Ordinance in respect of the trade A which such liquidator to
bind [all A or personal offeira
liquidator was appointed to wind up sball for all purposes persons and in all respects be as binding on A all the persons entitled entitled to to the profits of such trade as if the action [had been the profits brought, and the order or judgment had been made or which is given, against such persons as well as against the liquida- being
wound up.] tor].
▷ the alien enemy whose trade or personal affairs such liquidator was appointed to wind up and on
or other legal proceeding had been brought by or against, and the order or judgment had been made or given for or against, such alien enemy and persons as well as by. against, or for such liquidator A or other legal proceeding A or personal affairs
alien enemy whose trade or personal affairs such liquidator was oppine- ed to wind up
A, of its own motion or at the application of any party or on the representation of the Crown,
of the trade
action
4. The Supreme Court shall have power to stay any Court to action A brought against any liquidutor appointed under the have power Principal Ordinance in respect of the trade A which such to stay liquidator was appointed to wind up in any case in which
against it shall seem to the Court to be desirable to do so in the liquidator. interests of justies on account of the liquidintor being unable to obtain proper instructions from the [persous entitled to the profits of such trade].
5. The Supreme Court shall have power A to stay any Court to action brought against any alien onemy in any case in have power which it may seem to the Court to be desirable to do so in to stay the interests of justice on account of the impossibility of ins
against obtaining proper instructions from such alien enemy owing slien enemy, to the state of war which exists between His Majesty al the State to which such alien enemy belongs.
6.—(1.) Any liquidator appointed under the Principal Liquidator Ordinance shall with the permission of the Governor be to be entitled entitled to apply to the Court for directions on any matter to apply for arising out of the winding up.
(2.) Any such application shall be heard and determined in such manner as the Court muy direct, and it shall be lawful for the Court to hear such parties and persons as it may think fit.
(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 ruch liquidator in respect of the winding up.
directions.
7. Any liquidator appointed under the Principal Ordi- Power to nance shall with the permission of the Governor be entitled discharge to discharge out of the assets in his hand any liability liabilities in-
curred out- of the alien enemy whose trade or personal affairs such aide the liquidator was appointed to wind up, although such Colony. liability may have arisen out of a transaction entered inta 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,
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 sailed 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 scheine 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.
A by or
alien
nomy, sto,
3
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 the winding up under the Principal Ordinance will not result in any such discharge. Accordingly, refusal under the proposed Ordinance to allow an action to be brought would not determine the remedies of the creditor against the alien enemy.
Another object of the Bill is to provide expressly that actions against liquidators shall bind the alien enemies whose affairs are being womul up.
The Bill also gives the Court power to stay actions against liquidators or against alien enemies where the interests of justice seem to require that such should be done on account of the impossibility of obtaining proper instructions owing to the existence of a state of war.
This print of the Bill shows certain suggested additions in italics, and certain suggested omissions within square brackets.
Some of the alterations are merely technical, but there are five changes of substance.
One is the requirement that liquidators must obtain the permission of the Governor before beginning any legal pro- ceeding in respect of the winding up, so that the permission of the Governor will be required for actions by liquidators as well as for actions against liquidators.
I is also proposed that the requirement of the Gover nor's permission shall apply to actions brought diretely against alien enemies whose affairs are being wound up, or whose affairs it is experient should be wound up, as well as to actions brought against their liquidators,
With regard to clause 5 it is proposed to provide that the Court shall have power to stay such actions as are there referred to either of its own motion, or at the applica- tion of a party, or on the representation of the Crown.
It is also proposed that liquidators should be given the right, with the permission of the Governor, to apply to the Count for directions on any matter arising out of the winding up.
It is also proposed to give power to the Governor to allow liquidators to discharge liabilities incurred outside the Colony. It is not intended that this power if given should be exercised to the prejudice of the discharge of liabilities incurred in the Calmy-
J. II. KEMP,
Attorney General,
347A
1,
I