1890_BANKRUPTCY_AND_INSOLVENCY_ORDINANCE — Page 42

ORDINANCE No. 5 or 1864.

Bankruptcy and Insolvency.

134. Upon every debt or sum certain payable at a certain time or otherwise, whereupon interest is not reserved or agreed for, and which shall be overdue at the time of the filing of the petition for adjudication, and provable thereunder the creditor shall be entitled to prove for interest, to be calculated at a rate not exceeding twelve per centum per annum, up to the date of the filing of such petition, from the time when such debt or sum certain was payable, if such debt or sum be payable by virtue of some written instrument at a certain time, or if payable otherwise, then from the time when demand of payment shall have been made in writing, so as such demand shall give notice to the debtor that interest will be claimed from the date of such demand until the time of payment.

621

Interest upon

debts, when

provable,

though not

reserved or

agreed for

to be an elec- tion not to proceed

bankrupt by action.

135. No creditor who has brought any action or instituted any suit Proving debt against any bankrupt in respect of a demand prior to the adjudication, or which might have been proved as a debt under the bankruptcy, shall prove against the

upon the pro- a debt under such bankruptcy or have any claim entered ceedings without relinquishing such action or suit, and the proving or claiming a debt under a petition for adjudication by any creditor shall be deemed an election by such creditor to take the benefit of such petition with respect to the debt so proved or claimed; provided that such creditor shall not be liable to the payment to such bankrupt or his assignees, of the costs of such action or suit, so relinquished by him, and that where any such creditor shall have brought an action or suit against such bank- rupt jointly with any other person, his relinquishing such action or suit against the bankrupt, shall not affect such action or suit against such other person: provided also that any creditor who shall have so proved or claimed, if the petition for adjudication be afterwards dismissed may proceed in the action as if he had not so proved or claimed.

Creditors having secur...

136. No creditor having security for his debt, shall receive upon. any such security more than a rateable part of such debt, except in respect ity not to

any

execution or extent served and levied by seizure and sale upon, or any mortgage of or lien upon any part of the property of such bankrupt before the filing of the petition for adjudication.

of

137. The Court may at any time expunge or reduce a proof of debt on such application and such evidence as it shall think fit, and for the purpose may summon and examine upon oath or otherwise any person who shall have proved together with any person whose evidence may appear to the Court to be material either in support of, or in opposition

receive more than other creditors.

How proof may be ex- punged.