657022-1890-Bill-Bankruptey-Ordinance — Page 7

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THE HONGKONG GOVERNMENT GAZETTE, 29TH NOVEMBER, 1890.

Adjudication.

(3.) The subsequent meeting shall be summoned by the Official Receiver by not less than fourteen days' notice and shall not be held until after the public examination of the debtor is concluded. The notice shall state generally the terms of the proposal and shall be given by posting a letter in the Form No. 17 of the Schedule or by circular to each creditor who has proved and by advertising the subsequent meeting in the Gazette and local newspaper.

(4.) The debtor or the Official Receiver may after the composition or scheme is accepted by the creditors apply to the Court to approve it.

(5.) If the Court is of opinion that the terms of the composition or scheme are not reasonable or are not calculated to benefit the general body of creditors or if the Court is dissatisfied with the conduct of the debtor the Court may in its discretion refuse to approve the composition or scheme.

(6.) If the Court approves of the composition or scheme the terms thereof shall be embodied in an order of the Court in Form No. 14 of Schedule A and a composition or scheme accepted and approved as aforesaid shall be binding on all the creditors so far as relates to any debts due to them from the debtor and provable in bankruptcy. Provided that if any such debt were incurred by fraud or forbearance of the payment thereof before the date of the arrangement were obtained by fraud the debtor shall remain liable for the unpaid balance unless the defrauded creditor were an assenting party to the arrangement. As regards any debt not provable in bankruptcy it shall be binding on the creditor if be 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 ann the composition or scheme but without prejudice to the validity of any such disposition or payment duly made or thing duly done under or in pursuance of the composition or scheme.

(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.

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(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 or 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 a local paper and the date of the order shall for the purposes of this Ordinance be the date of the adjudication.

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