Report on an Ordinance
intituled An Ordinance to amend the Alien Enemies (Winding up) Ordinance, 1914, and to give power to stay actions against alien enemies.
This Ordinance deals with certain miscellaneous points connect with the liquidatione under the Principal Ordinance, and gives power stay actions against enemy subjects under certain circumstances.
Section 11s formal,
Sub-section (1) of section 2 makes the permission of the Govern necessary for the commencement of any legal proceeding by or against liquidator, or against an alien enemy whose trade or personal affair: a liquidator has been appointed to wind up. The reasons for this requirement are the same as those which underlie somewhat similar pr visions in the law relating to bankruptcy. It is not intended to
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refuse permission for/commencement of any legal proceeding against a liquidator in any case where there is a genuine question between the parties which calls for decision by the Courts, unless the matter on. more conveniently dealt with by an application by the liquidator to t Court for directions.
Sub-section (2) of seation 2 enables a limited permission to be given in order to prevent the statutes of limitation from running.
Sub-section (3) of section 2 deals with legal proceedings begun before the commencement of the Ordinance,
Sub-section (4) of section 2 deals with legal proceedings again: alien enemy begun before the appointment of a liquidator.
Bub-section (5) of section 2 prevents time running where permais. to take further steps in any legal proceeding is refused by the Govern under the Ordinance,
Sub-section (6) of section 2 requires the express permission of tậ Governor for the issuing of any execution in any legal proceeding referred to in this section.
Sub-section (7) of section 2 is aimed at preventing creditors of alien enemies whose affairs are being wound up from obtaining priorit;! means of any form of attachment made in the course of any action or of legal proceeding.
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Section 3 provides that actions by or against liquidators shall bind the persone for whom they are acting and whom they represent.
Bection 4 gives the Court express power to stay proceedings against liquidators who are unable to obtain instructions owing to the
existence of a state of war.
Section 5 gives a similar power in the case of proceedings against alien enemies. It may be mentioned that the difficulties dealt with
in the Legal Proceedings against Enemies Act, 1915, do not seem to have been felt here up to the present.
Section 6 enables a liquidator, with the permission of the Govern-
or, to apply to the Court for directions on any matter arising out of the winding up.
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Section 7 enables the Governor to authorise a liquidator to dis- charge liabilities which would not ordinarily have been discharged in
the Colony, but it is not intended that the power shall be exercised
to the prejudice of the liabilities incurred by the alien enemy in the
course of his trading in this Colony. This section relates back to
Beotion (12) of the Principal Ordinance, as enacted by Section 7 of
Ordinance No.30 of 1914. The winding up contemplated is a winding up of local affaire, including of course any liabilities incurred to per- sons outside the Colony in respect of those local affairs, and it does
not seem desirable, for instance, that the local assets of an involvent
German firm should be applied to the discharge of liabilities incurred by branches of the firm elsewhere, especially as in many cases such -- branches are still carrying on business and as dealings with some of
these branches are not illegal, It must also be borne in mind that
the winding up under the Principal Ordinance, unlike a winding up in
bankruptcy, will not result in a discharge of the debtors in respect of
any unsatisfied liabilities.
Section 8 deals with a question which has arisen as to the
remuneration of liquidators. As a rule no labour is involved in taking
over the balances referred to, but in others trouble may be experienced
and some remuneration would be only fair. In other cases the liquida-
tors may have few other assets to get in but may have a considerable