The vice-chancellor is empowered, under 12 & 13 Vice c. 106, § 201-236, if he think fit,any time withinsix months, on the application of a creditor or assig nee, to recall and cancel the certificate; but so harsh a measure requires to be very strongly grounded.
The effect of the certificate is to exempt the bankrupt from the payment of all debts which might have been proved under the fiat, and of course from arrest. A debt provable under the fiat, and a debt barred by the certificate, are con vertible terms. A written promise to pay a debt is not barred by the certificate but any contract or security to induce a creditor to forbear opposition is void, and any creditor of a bankrupt who obtains money, goods, &c. to forbear opposition or to consent to the allowance of the cer tificate, is liable to a penalty of treble the amount. If any bankrupt is taken in execution for a debt barred by the cer tificate, any judge, on his producing his certificate, may order him o be discharged without fee. The bankrupt has, after ob taining his certificate, in certain cases a claim to an allowance out of his estate. If his estate has paid 10s. in the pound to his creditors, he is entitled to five per cent. out of such estate, provided the allowance does not exceed 4001. If the estate pays 128.6d. in the pound, he is to be paid 71. 10s. per cent., provided such allowance does not exceed 5001. ; and if his estate pays 158. in the pound, he is to be allowed ten per cent., provided such allowance does not exceed 600/. If, at the expira tion of twelve months, the estate does not pay 10s. in the pound, he is only entitled to such allowance as the assignees think fit, not exceeding 3 per cent. and 300/. The above allowances are dependent on the al lowance of the certificate, and cannot be claimed previously, and they cannot be paid till the requisite amount of dividend is paid. The bankrupt's right to it, how ever, is a vested interest even before the dividend, and passes to his representatives in the event of his death. One partner may receive an allowance if a sufficient dividend shall have been paid on his sepa rate estate and on the joint estate, while another partner may not be entitled.
The effect of the certificate on a second bankruptcy is very materially curtailed ; for if a bankrupt, after having once ob tained a certificate, or having compounded with his creditors, or having been dis charged under an Insolvent Act, again becomes bankrupt and obtains a certifi cate, unless his estate pays 15s. in the pound, such second certificate shall only protect his person from arrest ; but his future estate and effects shall vest in the assignees under the second commission, who may seize the same.
If any surplus of the bankrupt's estate remains after the creditors are paid in full, it of course belongs to the bankrupt, and the assignees are bound, on his request, to declare to the bankrupt in what manner they have disposed of his real and per sonal estate, and to pay the surplus, if an to him.
The statute 1 & 2 Wm. IV. c. 56, em powered the king, by letters patent under the Great Seal, to establish a court of judicature, to be called the Court of Banktuptcy, consisting of a ' chief judge,' being a sergeant or barrister-at-law of ten years' standing, and three other judges, persons of the same description, and six barristers of seven years' standing, to be called commissioners of the court. The court was constituted a Court of Law and Equity, and, together with every judge and commissioner thereof was to exer cise all the rights and privileges of a Court of Record, as fully as the same are exercised by any of the courts or judges at Westminster. Before this court flats in bankruptcy were to be prosecuted in London, and commissioners under the great seal were no longer to be appointed as formerly in each bankruptcy. The four judges of the court sat as a Court of Review. By 5 & 6 Wm. IV. c. 29, the number of the judges was reduced from four to three.
By 5 & 6 Vict. C. 122, several import ant alterations were made in the Court of Bankruptcy. The Court of Review is formed of one judge instead of three; and district courts of bankruptcy are esta blished. Under 12 & 13 Vict. c. 106, the six commissioners and registrars are to be reduced to four, as vacancies occur.