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Banking Dis

bankrupt, liabilities, court, discharge, bankruptcy, amount, assets and pound

BANKING [DIS operation of the order for a specified time, or grant an order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt, or with respect to his after-acquired property : Provided that the court shall refuse the discharge in all cases where the bankrupt has committed any mis demeanour under the Debtors Act, 1869, or the principal Act, or any other misdemeanour connected with his bankruptcy, or any felony con nected with his bankruptcy, unless for special reasons the court other wise determines, and shall. on proof of any of the facts hereinafter men tioned, either " (i) refuse the discharge ; or (ii) suspend the discharge for a period of not less than two years ; or " (iii) suspend the discharge until a dividend of not less than ten shillings in the pound has been paid to the creditors ; or (iv) require the bankrupt as a condition of his discharge to consent to judgment being entered against him by the official receiver or trustee for any balance or part of any balance of the debts provable under the bank ruptcy which is not satisfied at the date of the discharge, such balance or part of any balance of the debts to be paid out of the future earn ings or after acquired pro perty of the bankrupt in such manner and subject to such conditions as the court may direct ; but execution shall not be issued on the judg ment without leave of the court, which leave may be given on proof that the bankrupt has since his dis charge acquired property or income available towards payment of his debts.

" Provided, that if at any time after the expiration of two years from the date of any order made under this Section the bankrupt shall satisfy the court that there is no reasonable probability of his being in a position to comply with the terms of such order, the court may modify the terms of the order, or of any substituted order, in such man ner and upon such conditions as it may think fit.

" (3) The facts hereinbefore referred to are :— ' (a) That the bankrupt's assets are not of a value equal to ten shillings in the pound on the amount of his unsecured liabilities, unless he satisfies the court that the fact that the assets are not of a value equal to ten shillings in the pound on the amount of his unsecured liabilities has arisen from circumstances for which he cannot justly be held responsible : " (b) That the bankrupt has omit ted to keep such books of account as are usual and proper in the business car ried on by him and as suffi ciently disclose his business transactions and financial position within the three years immediately preceding his bankruptcy : (c) That the bankrupt has con tinued to trade after know ing himself to be insolvent : (d) That the bankrupt has con tracted any debt provable in the bankruptcy without having at the time of con tracting it any reasonable or probable ground of expec tation (proof whereof shall lie on him) of being able to pay it : • (a) That the bankrupt has failed to account satisfactorily for any loss of assets or for any deficiency of assets to meet his liabilities : " (/) That the bankrupt has brought on, or contributed to, his bankruptcy by rash and hazardous speculations, or by unjustifiable extrava gance in living, or by gam bling, or by culpable neglect of his business affairs : " (g) That the bankrupt has put any of his creditors to un necessary expense by a frivo lous or vexatious defence to any action properly brought against him : " (h) That the bankrupt has within three months pre ceding the date of the receiving order incurred un justifiable expense by bring ing a frivolous or vexatious action : " (i) That the bankrupt has within three months preceding the date of the receiving order, when unable to pay his debts as they become due, given an undue preference to any of his creditors : " (j) That the bankrupt has within three months preceding the date of the receiving order incurred liabilities with a view of making his assets equal to ten shillings in the pound on the amount of his unsecured liabilities : (k) That the bankrupt has on any previous occasion been adjudged bankrupt, or made a composition or arrange ment with his creditors : ' (1) That the bankrupt has been guilty of any fraud or frau dulent breach of trust.

(4) For the purposes of this Section a bankrupt's assets shall be deemed of a value equal to ten shillings in the pound on the amount of his un secured liabilities when the court is satisfied that the property of the bankrupt has reali ed, or is likely to realise, or with due care in realisa tion might have realised, an amount equal to ten shillings in the pound on his unsecured liabilities, and a report by the official receiver or the trustee shall be prima facie evidence of the amount of such liabilities." (See BANKRUPTCY.)