BANKRUPTCY.
No. 7 of 1891.
617
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such debt was incurred by fraud or if 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.
(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 other 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 bankrupt 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 III 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 II 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 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 distribution of the property of a bankrupt.
BANKRUPTCY.
No. 7 of 1891.
617
ourt, inted iina-
urn- Josal
the
jor's
the
rity tors
d is
cial
ntil
Jee
by
has
tte
ion
jve
ion
efit
he
to
tal
to
ne
n-
be
in
12
such debt was incurred by fraud or if 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.
(7) The provisions of a composition or scheme under this section may be enforced by the Court on application by any person inter- ested, 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 legai difficulties or for any other 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 bankrupt 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 pro- perty or manage his business, Part III 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 II shall, so far as the nature of the case and the terms of the composition or scheme admit, apply thereto, the same inter- pretation being given to the words "trustee," "bankruptcy,' "bankrupt," and "order of adjudication as in the last sub-sec- tion.
(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 distribution of the property of a bankrupt.
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