AD 1891.]
BANKRUPTCY.
Composition or Scheme of Arrangement.
[No. 7.
or scheme of
233
18.(1.) The creditors may, at the first meeting or any adjournment thereof, by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to them from the debtor or a proposal for a scheme of arrangement of the debtor's affairs.
53 & 54 Vict. c. 71 a. 3.
(2) The composition or scheme shall not be binding on the creditors unless it is confirmed by a resolution passed (by a majority in numbers representing three-fourths in value of all the creditors who have proved) at a subsequent meeting of the creditors and is approved by the Court.
(3.) The subsequent meeting shall be summoned by the Official Receiver by not less than seven 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 or by a notice in writing to each creditor who has first proved and by advertising the subsequent meeting in The Gazette and Form No. 17; at least in one 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.
Schedule:
(6) If the Court approves the composition or scheme, the approval thereof may be testified by the Seal of the Court being attached to the instrument containing the terms of the composition or scheme or by the terms being embodied in an order of the Court. 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 was incurred by fraud or forbearance of the payment thereof before the date of the arrangement was obtained by fraud, the debtor shall remain liable for the unpaid balance, unless the defrauded creditor was an 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.
*
The provisions of a composition or scheme under this section may be enforced by the Court on application by any person interested, and disobedience of an order of the Court made on the application shall be deemed a contempt of Court.
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
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Page 11
AD 1891.]
BANKRUPTCY.
Composition or Scheme of Arrangement.
[No. 7.
or scheme of
233
18.(1.) The creditors may, at the first meeting or any adjournment Composition thereof, by special resolution, resolve to entertain a proposal for a arrangement. composition in satisfaction of the debts due to them from the debtor or 53 & 54 Pict. aproposal for a scheme of arrangement of the debtor's affairs.
c. 71 a. 3.
(2) The composition or scheme shall not be binding on the creditors unless it is confirmed by a resolution passed (by a majority in numbers representing three-fourths in value of all the creditors who have proved) at a subsequent meeting of the creditors and is approved by the Court. (3.) The subsequent meeting shall be summoned by the Official Receiver by not less than seven days' notice, and shall not be held until after the public examination of the debtor is concluded. The notice chall state generally the terms of the proposal and shall be given by posting a letter or by a notice in writing to each creditor who has First proved and by advertising the subsequent meeting in The Gazette and Form No. 17; at least in one 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 com- position or scheme.
Schedule:
(6) If the Court approves the composition or scheme, the approval thereof may be testified by the Seal of the Court being attached to the instrument containing the terms of the composition or scheme or by the terms being embodied in an order of the Court. A composition Form No. 14. 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 was nourred by fraud or forbearance of the payment thereof before the date of the arrangement was obtained by fraud, the debtor shall remain ble for the unpaid balance, unless the defrauded creditor was an senting party to the arrangement. As regards any debt not provable bankruptcy, it shall be binding on the creditor if he assents to the omposition or scheme, but not otherwise.
*
The provisions of a composition or schéme under this section may enforced by the Court on application by any person interested, and disobedience of an order of the Court made on the application shall deemed a contempt of Court.
If default is made in payment of any instalment due in pursuance he composition or scheme, or if it appears to the Court that the
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