653980-1891-Ordinances-19-and-20-of-1891-assented-to — Page 9

1982

THE HONGKONG GOVERNMENT GAZETTE, 7TH NOVEMBER, 1891..

Adjudication.

Trustee.

Committee of Inspection.

assenting party to the arrangement. As regards any debt not provable in bankruptcy it shall be binding on the creditor if he assents to the composition or scheme but not otherwise. (7.) The provisions of a composition or scheme under this section may be enforced by the Court on application by any person interested and any disobedience of an order of the Court made on the application shall be deemed a contempt of Court.

(8.) If default is made in payment of any instalment due in pursuance of the composition or scheme or if it appears to the Court that the composition or scheme cannot in consequence of legal difficulties or for any sufficient cause proceed without injustice or undue delay to the creditors or to the debtor or that the approval of the Court was obtained by fraud the Court may if it thinks fit on application by any creditor adjudge the debtor bankrupt and annul the composition or scheme but without prejudice to the validity of any sale disposition or payment duly made or thing duly done under or in pursuance of the composition or scheme. Where a debtor is adjudged bank- rupt under this sub-section any debt provable in other respects which has been contracted before the date of the adjudication shall be provable in the Bankruptcy.

(9.) If under or in pursuance of a composition or scheme a Trustee is appointed by the creditors to administer the debtor's property or manage his business Part IV of this Ordinance shall apply to the Trustee and to the composition or scheme as if the Trustee were a Trustee in a bankruptcy and as if the terms "bankruptcy" "bankrupt” and “order of adjudication" included respectively a composition or scheme of arrangement a compounding or arranging debtor and an order approving the composition or scheme.

(10.) Part III of this Ordinance shall so far as the nature of the case and the terms of the composition or scheme admit apply thereto the same interpretation being given to the words "Trustee " .

bankruptcy ""bankrupt” and "order of adjudication" as in the last preceding sub-section. (11.) No composition or scheme shall be approved by the Court which does not provide for the payment in priority to other debts of all debts directed to be so paid in the dis- tribution of the property of a bankrupt.

Adjudication of Bankruptcy.

19. (1.) Where a receiving order is made against a debtor then if the creditors at the first meeting or any adjourn ment thereof by resolution resolve that the debtor be adjudged bankrupt or pass no resolution or if the creditors do not meet or if a composition pr scheme is not accepted or approved within fourteen days after the conclusion of the examination of the debtor or such further time as the Court may allow the Court shall adjudge the debtor bank- rupt and thereupon the property of the bankrupt shall be- come divisible among his creditors and shall vest in a Trustee.

(2.) Notice of every order adjudging a debtor bankrupt stating the name address and description of the bankrupt the date of the adjudication and the name of the Trustee shall be gazetted and advertised in at least one local paper and the date of the order shall for the purposes of this Ordinance be the date of the adjudication.

20. (1.) At any time prior to adjudication the creditors may by ordinary resolution nominate some fit person to be Trustee in the bankruptcy and upon making the adjudication the Court shall appoint the creditors' nominee or if dissatis- fied with the nomination or there be no nomination some other person to be Trustee. The Official Receiver may be appointed Trustee if the Court thinks fit.

(2.) A Trustee other than the Official Receiver shall give such security as the Court may direct.

21. (1.) At the first or any subsequent meeting the creditors may by ordinary resolution appoint from among the creditors qualified to vote or the holders of general proxies or general powers of attorney a Committee of Inspection consisting of three persons for the purpose of superintending the administration of the bankrupt's property by the Trustee.

(2.) Any two members of the committee may act.

(3.) On a vacancy occurring by death resignation incapa- city or otherwise the Trustee shall summon a meeting of creditors for the purpose of. filling the vacancy but the continuing members may act notwithstanding the vacancy,