If the answers are unsatisfactory, or there is reason to believe that the debtor is endeavouring to evade discovery of his property, the Court may, at any time after the receiving order has been made, cause further investigation to be made. For this purpose it may summon the debtor, or his wife, or any person known or suspected to have in his possession any of the estate or effects belonging to the debtor, or supposed to be indebted to the debtor, or any person whom the Court may deem capable of giving information respect ing the debtor, his dealings, or property. Any such person may be required to produce any document in his custody or power relating to the debtor, his dealings, or property. He will be examined upon oath, and if when ex amined he admits that he is indebted to the debtor, or admits that he has in his possession any property belonging to the debtor, the Court may order him to pay the amount admitted, or deliver up the property belonging to the debtor, to the official receiver, or trustee. Any person so summoned, who refuses to appear before the Court, may be arrested ; but if too ill to attend, he may be examined at his own residence.
Proof of in the nature of unliquidated damages arising otherwise than by contract, promise, or breach of trust, are not provable in bankruptcy ; nor are debts incurred after an act of bankruptcy with a creditor having notice of such act of bankruptcy. But with these exceptions, all debts and liabilities, present or future, certain or cevitingent, to which the debtor is subject at the date of the receiving order ; s2r to which he may become subject before his discharge by reason of any obligation incurred before the date of the receiving order, are debts provable in bankruptcy. Where the debt does not bear a certain value, because of its being subject to any contingency or for any other reason, its value is to be estimated by the trustee ; from whose estimate there is an appeal to the Court. If, however, the Court should decide that the value of the debt is incapable of being fairly estimated, the debt will be one not provable in the bankruptcy. A liability may be proved in bankruptcy is distinguished from a debt. It includes any compensation for work or labour done, any obligation or possibility of an obligation to pay money or money's worth on the breach of any express or implied covenant, contract, agreement, or undertaking, whether the breach does or does not occur, or is or is not likely to occur, or capable of occurr,;ng before the discharge of the debtor. Generally, it includes any express or implied engagement, agreement, or undertaking, to pay, or capable of resulting in the payment of money or money's worth, whether the payment is as respects amount fixed or unliquidated ; as respects time, present or future, certain or dependent upon any one or more contingencies ; as to mode of valuation, capable of being ascertained by fixed rules, or as matter of opinion.
Mutual credit and .set-e.—An account will be taken in cases where there have been mutual credits, mutual debts, or other mutual dealings between a debtor against whom a receiving order has been made and any other person proving or claiming to prove a debt under such receiving order. The account will have in view the ultimate amount due from one party to the other in respect of such mutual dealings ; the sum due from one party being set off against any sum due from the other party, the balance of the account, and no more, to be claimed or paid on either side respectively. But a person will not be entitled to claim the benefit of any set-off against the property of a debtor in any case where he had, at the time of giving credit to the debtor, notice of an act of bankruptcy committed by the and available against him.
Debts having priority.—The following debts are payable in full, and forthwith, unless the property of the debtor is insufficient to satisfy them all, in which case they will abate equally amongst themselves. (a) All parochial or other local rates due from the debtor at the date of the receiving order, and having become due and payable within twelve months next before that time ; and all assessed taxes, land-tax, property- or income-tax assessed on the debtor up to the 5th April next before the date of the receiving order, and not exceeding in the whole one year's assessments. (b) All the wages or salary of any clerk or servant in respect of services rendered to the debtor during four months before the date of the receiving order, but not exceeding 1°50. (c) All the wages of any labourer or workman not exceeding £25, whether payable for time or for piece-work, in respect of services rendered to the debtor dining two months before the date of the receiving order ; and (d) Compensation payable to an injured workman under sect. 5 of the Workmen's Compensation Act, 1906. If any money has been paid by an apprentice or articled clerk to a bankrupt as a premium, the trustee may pay such sum as he may think reasonable, out of the bankrupt's property, to or for the use of the apprentice or clerk; but regard should be had to the amount of the premium, to the length of time actually served, and to the other circumstances of the case.