Not only is all the property to which the bankrupt himself has a right appli cable towards the payment of his creditors, but there are instances in which effects of other parties in his custody, which could not have been retained by the bankrupt had he not become bankrupt, will vest in his assignees under the fiat. The prin cipal enactment on this subject, 6 Geo. I V. c. 16, § 72, was intended to apply to cases where persons allowed the use of their property to a failing trader, who is thereby enabled to assume a deceitful appearance of wealth, and obtain credit with the world. Accordingly, if any bankrupt, by the permission and con sent of the owner, shall have in his pos session, order, or disposition any goods or chattels whereof he was reputed owner, or whereof he had taken on himself the sale or disposition as owner at the time of his bankruptcy, the Court may order the same to be sold for the benefit of the creditors. The provision applies only to goods and chattels, such as ships, furniture, utensils in trade, stock, bills of exchange, &c. But interests in property of a real nature are not affected by it, The main difficulty, which has occasioned much liti fration as to the cases within this clause, is in deciding whether the bankrupt was er was not the reputed owner of the pro perty at the time of his bankruptcy, which is a question of fact determinable by a jury, according to the circumstances of each particular case. [AGENT.] There are certain classes of creditors which the legislature has peculiarly pri vileged. The Court is authorized to order that the clerks and servants of the bank rupt (which includes travellers and ser vants working by the piece) shall receive their wages and salary, for not exceeding three months, and not exceeding 301. out of the estate of the bankrupt ; and they are at liberty to prove for the excess. The Court may also order wages, not ex ceeding forty shillings in amount, to be paid to any labourer or workman to whom the bankrupt is indebted, and they may also prove for the remainder. Under 6 Geo. I V. six months' wages could be paid.
In order to provide for the due dis tribution of the bankrupt's property among those who have proved his debts, the bankrupt's estate is vested in assignees, who are charged with the collection and distribution of it. They are either, first, chosen assignees, or, secondly, official as signees, who are permanent officers of the Court of Bankruptcy.
The chosen assignees are chosen by the major part, in value, of the creditors who have proved debts to the amount of 10/., subject to a power of rejection on the part of the Court if they are deemed unfit for the office. The first duty of the assignees is to ascertain the validity of the bank ruptcy, for which purpose the petitioning creditor is bound to furnish them with all the information in his power. If they ascertain it to be defective, they may apply to the Court to supersede it, which is the only mode in which they can dispute the validity of the fiat. The as signees are required to keep an account of all receipts and payments on account of the bankrupt, which every creditor may inspect. The Court may at all times
summon the assignees, and require them toproduce all books, papers, and docu ments relating to the nkruptcy ; and, on their defisult without excuse, may cause the assignees to be brought before them, and on their refitsing to produce such books, &c., may commit them to prison until they submit to the order of the Court. If an assignee himself be come bankrupt, being indebted to the estate of which he is assignee, and if he obtain his certificate, the certificate will only have the effect of freeing his person from imprisonment ; but his future pro perty and effects remain liable for his debts as assignee. The Court has a general jurisdiction over assignees in matters relating to the bankruptcy, and will compel the performance of their du ties if neglected. One of their duties is to sell the bankrupt's property, at which sale they cannot themselves in general become purchasers by reason of their fiduciary character. The assignees are entitled to be reimbursed all necessary expenses ; and if an accountant is indis pensable to assist them, they are entitled to employ one. They have the right of nominating the solicitor to the bank ruptcy, and of regulating his continuance or removal ; and they may, with the ap probation of the commissioners, appoint the bankrupt himself to manage the estate, or carry on the trade on behalf of the creditors, or to aid them in any other matter. The Vice Chancellor has power to remove an assignee, either on his own application or bn that of a creditor.
The official assignees are merchants, brokers, or accountants, or persons who are or have been engaged in trade, not ex ceeding thirty in number, who are ap pointed by the Lord Chancellor to act as official assignees in all bankruptcies. One of them acts with the chosen assignees in every such bankruptcy, giving security for his conduct. The personal estate of the bankrupt, and the rents and proceeds of his real estate, are received by the offi cial assignee, where not otherwise directed by the Court of Bankruptcy or the com missioners; and all stock, moneys. and securities of the bankrupt must be forth with transferred and paid by the official assignee into the Bank of England, to the credit of the Accountant in Bankruptcy, subject to such order for keeping an account, or payment, investment, or de livery thereof, as the Court of Bank ruptcy shall direct. Till the choice of the chosen assignees, the official assignee acts as sole assignee of the bankrupt. He is not to interfere with the chosen assignees as to the appointment or re moval of the solicitor, or as to directing the sale of the bankrupt's estate. The Bankruptcy Court may supply any va cancy in the before-mentioned number of official assignees ; and the Court before whom any trader is adjudged bankrupt may order a suitable remuneration to the official assignee out of the bankrupt's estate.