182783-1931-Supplementary-Draft-Bill--Bankruptcy — Page 32

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a transfer of a business made bond fide and for value,

or in any assignment of assets for the benefit of creditors generally.

(2) For the purposes of this section, "assignment'' 4 & 5 Geo. 5, includes assignment by way of security and other e. 59,

s. 43 (2). charges on book debts.

in certain

49.-(1) Every conveyance or transfer of property, Avoidance or charge thereon made, every payment made, every of preference obligation incurred, and every judical proceeding cases. taken or suffered by any person unable to pay his 4 & 5 Geo. 5, debts as they become due from his own money in c. 59, favour of any creditor, or of any person in trust for s. 44 (1). any creditor, with a view of giving such creditor, or any surety or guarantor for the debt due to such creditor, a preference over the other creditors, shall, if the person making, taking, paying or suffering the same is adjudged bankrupt on a bankruptcy petition presented within three months after the date of making, taking, paying or suffering the same, be deemed fraudulent and void as against the trustee in the bankruptcy.

(2) This section shall not affect the rights of any 4 & 5 Geo. 5, person making title in good faith and for valuable c. 59, consideration through or under a creditor of the bank- s. 44 (2). rupt.

transactions

50.-(1) Subject to the provisions of this Protection Ordinance with respect to the effect of bankruptcy of bond fide on an execution or attachment, and with respect to without the avoidance of certain settlements, assignments and notice. preferences, nothing in this Ordinance shall invali- 4 & 5 Geo. 5, date, in the case of a bankruptcy :-

c. 59, s. 45.

(a) any payment by the bankrupt to any of his

creditors;

(b) any payment or delivery to the bankrupt; (c) any conveyance or assignment by the bank-

rupt for valuable consideration;

(d) any contract, dealing, or transaction by or

with the bankrupt for valuable consideration :

Provided that both the following conditions are complied with, namely:-

(i) that the payment, delivery, conveyance, assignment, contract, dealing, or transaction, as the case may be, takes place before the date of the receiving order; and

(ii) that the person (other than the debtor) to, by, or with whom the payment, delivery, conveyance, assignment, contract, dealing, or transaction was made, executed, or entered into, has not at the time of the payment. delivery, conveyance, assignment, contract, dealing, or transaction, notice of any available act of bankruptcy committed by the bankrupt before that time.

(2) Where any money or property of a bankrupt Recovery of has, on or after the date of the receiving order but property

transferred before notice thereof has been gazetted in the pre- without scribed manner, been paid or transferred by a person knowledge having possession of it to some other person, and the of receiving payment or transfer is under the provisions of this order. Ordinance void as against the trustee in the bank-16 & 17 Geo.

5, c. 7, s. 4. ruptcy, then, if the person by whom the payment or transfer was made proves that when it was made he had not had notice of the receiving order, any right of recovery which the trustee may have against him in respect of the money or property shall not be enforced by any legal proceedings except where and in so far as the court is satisfied that it is not reasonably prac-