BANKRUPTCY. See EXECUTION. PLEADING, (1), I. (1). When Cause of Action vests in Official Assignee. To a declaration alleging that the plaintiff was induced, by the false and fraudulent representations of the defendant, to make large payments on account of a certain manufacture, and "by reason of the said false and fraudulent representation the plaintiff sustained great loss and was adjudicated bankrupt, and suffered great personal annoyance, and was put to great trouble and inconvenience, and was greatly injured in character and credit," the defendant pleaded, except as to the claim in respect of the plaintiff being adjudicated bankrupt and the personal annoyance, trouble, inconvenience and injury to his character and credit, that the loss was a pecuniary loss, and that the cause of action pleaded to vested in the plaintiff's official assignee.-Held, a good plea, inasmuch as the only damage recoverable was in respect of the pecuniary loss. Hodgson v. Sidney, 492 (2). Composition Deed under Bankruptcy Act, 1861. Deed containing Provision that, as soon as Trustees certified that requisite majority of Creditors have assented to Deed, Creditor is to pay Composition. I. A composition deed under the Bankruptcy Act, 1861, which provides that, as soon as the trustees shall certify in writing that the requisite majority in number and value of creditors have assented to the deed, the debtor shall pay the composition, is unreasonable and II. A deed, under the Bankruptcy Act, 1861, by which the statutory majority of creditors agreed to accept a composition of 10s. in the pound, payable by instalments at the end of two, four and six months, contained a clause empowering a trustee, in his discretion, to pay in one sum, and at such time or times as he should think fit, any creditor whose composition did not exceed 107.Held, that this provision created an inequality in the rights of the creditors, and consequently the deed was void. Thompson and Another v. Knight, 629 Composition Deed, containing Release on Consideration of Covenant by Debtor to pay Composition. III. A composition deed under the Bankruptcy Act, 1861, made between the debtor of the one part, and all his creditors of the other part, after reciting that the debtor had agreed to pay his said creditors a composition by instalments in satisfaction and discharge of their debts contained a covenant by the debtor with the several creditors, and with each of them respectively, to pay the composition, in consideration of which the creditors released the debtor from all actions, debts, contracts, &c.-Held, that the deed was valid and pleadable in bar to an action by a non-assenting creditor. Gresty v. Gibson, 28 IV. To a declaration in an action commenced on the 24th April, 1866, the defendant pleaded that, on the 7th May, 1866, a deed was made under the Bankruptcy Act, 1861, between the defendant of the first part, a surety of the second part, and the several persons creditors of the defendant (not only those whose names and seals were thereunto subscribed and set, but also all other the creditors of the defendant) of the third part: whereby, after reciting that the defendant was indebted to the said several creditors in the several sums of money set opposite to their respective names in the schedule thereunto, and that it had been agreed, by the statutory majority of creditors, to accept the composition and security therein expressed in satisfaction of such respective debts: in consideration of the promissory notes of the defendant and the surety for payment to the said respective creditors of the composition of 5s. in the pound on the respective sums of money aforesaid, the creditors of the defendant, parties thereto of the third part, released the defendant, and accepted the composition in satisfaction of the debts owing to them by the defendant specified in the schedule. And the defendant and his surety covenanted with each and every of the creditors parties thereto of the third part to pay to them the composition and deliver the promissory notes. Held.-First: That the release was absolute, and that it was not necessary to aver or prove a tender of the composition or promissory notes. Secondly That the deed was not bad on the ground of inequality in the rights of the creditors; for according to the true construction of the deed, not only the creditors named in the schedule, but the whole body of creditors were entitled to the benefit of it. Thirdly that the plea ought to have been pleaded in bar of the further maintenance of the action, and that in such form it would operate, by virtue of the release, as a bar, not only to the debt, but also to damages and costs. So held in the Exchequer Chamber, affirming the judgment of the Court of Exchequer. Tetley and Wandless, Others v. 613 Composition Deed, containing no Provision making it Obligatory on Trustee to tender Promissory Notes, or give Notice of Deed to Non-assenting Creditors. V. A composition deed under the 192nd section of the Bankruptcy Act, 1861, made between the debtor of the first part, a trustee of the second part, and the creditors named in the schedule of the third part: after reciting that the debtor proposed to pay all his creditors a composition by giving them promissory notes; and that such promissory notes had been deposited with the trustee to deliver to the nonexecuting and non-assenting creditors, witnessed, that, in consideration of the premises each of the creditors who executed, or assented to, or were bound by, the deed, released the debtor.-Held, that the deed. was not bad on the ground of inequality among the creditors, by reason of its containing no provision making it obligatory on the trustee to tender the promissory notes, or give notice of the deed to non-assenting creditors. Blumberg averring a tender of the composition and Others v. Rose and Another, 311 money. Johnson v. Barratt, Assignment in Composition Deed of Debtor's Estate to Trustee, with Proviso that until Default in Payment of Composition enjoy, use and deal with the Estate.-Provision in Deed for giving up Estate-Deed containing no Reservation of Rights against Sureties-Release in Consideration of Covenant to pay Composition, not in Consideration of its Payment-When Deed may be Pleaded without Averring Tender of Composition. 16 (3). Trust Deed under Bankruptcy Act, 1861, containing Clause authorising Trustees to require Creditors to verify their debts by solemn declaration, or lose all Benefit of Dividends. A trust deed, under the Bankruptcy Act, 1861, contained the following clause: -"It shall be lawful for the said trustees, at the expense of the estate, to require the amount of any debt of any of the creditors to be verified by solemn declaration; and in the event of any such crediVI. A deed of composition under tors, if in Great Britain or Ireland, the Bankruptcy Act, 1861, is not failing so to verify such debt for two invalid because it contains an assign calendar months after such requisiment of all the debtor's estate and tion, such creditor or creditors shall effects to a trustee absolutely, with lose all benefit, dividends and ada proviso that until default in pay-vantage to be derived from these ment of the composition the debtor may hold and enjoy the estate and effects, and use and deal with the same. The 7th condition of the 192nd section of the Bankruptcy Act, 1861, does not mean that the debtor's property must be given up to the trustee, but that if the deed provides for its being given up, in order to bind nonassenting creditors, the property must be given up in accordance with the terms of the deed. A deed under the Bankruptcy Act, 1861, is not invalid because it contains no reservation of rights against sureties, where it does not appear that there are any sureties. Nor is such a deed invalid because it releases the debtor in consideration of his covenant to pay the composition, not in consideration of its payment. Where the release is absolute, the deed may be pleaded without mentioned dividends shall fall into presents, and thereupon such last the general estate for the benefit of defaults."-Held unreasonable, and the creditors not making similar the deed void: Per Pollock, C. B., Bramwell, B., and Channell, B.Martin, B., dubitante. Giddings and Another v. Penning, 498 (5). Registration of Deed under 192nd Section of Bankruptcy Act, 1861. A deed registered under the 194th section of the Bankruptcy Act, 1861, in order to operate under the 197th section must be registered with all the formalities required by the 192nd section. Pearson v. Pearson, 316 (6). Composition Deed not Admissible in Evidence without Registration under the 194th Section of the Bankruptcy Act, 1861, although it might not be a valid Deed under the 192nd Section. A debtor, by deed, assigned all his estate and effects to trustees to pay rateably and in proportion hist creditors who should execute the deed within twenty-one days from the date thereof, the several debts or sums set opposite their names in the schedule: provided that such creditors as did not assent in writing within such further time as the trustees should declare should be excluded from all benefit under the deed.-Held, that as the deed, on the face of it, professed to be a deed of arrangement between the debtor and the whole body of his creditors, it was not admissible in evidence without registration under the 194th section of the Bankruptcy Act, 1861, although it might not be a valid deed under the 192nd section. Prichard v. Timothy and Roberts, 393 (7). Set-off of Rent due from Debtor after Execution of Composition Deed but before its Registration. In an action by trustees of a deed made by a debtor under the Bankruptcy Act, 1861, the defendant may set off a debt for rent payable to him by the debtor under a demise, and which became due after the execu (8). Execution by Judgment Debtor of Composition Deed under 192nd Section of Bankruptcy Act, 1861, after Levy under Fi. Fa., but before Sale. A debtor, whose goods had been taken in execution under a writ of fi. fa., before their sale, executed a composition deed under the 192nd section of the Bankruptcy Act, 1861, which was duly registered. - Held, that by the 198th section the execution was no longer available, and the Court ordered the sheriff to withdraw from possession. Rogers v. Roberts, 609 (9). Execution delayed by Inter pleader Order and Bankruptcy of Debtor before its completion by Sale. Where an execution is levied by seizure of the goods of the debtor, and afterwards an interpleader order is made by which the execution is delayed, and before its completion by sale of the goods the debtor is adjudged a bankrupt, the execution creditor is, by the 184th section of the Bankrupt Law Consolidation Act, 1819, entitled to no more than a rateable part of his debt. O'Brien v. Brodie, 544 (10). Liability of Inspectors under Deed of Inspectorship for Goods Supplied. A debtor and his creditors entered into a deed of inspectorship, under the Bankruptey Act, 1861. Before the deed was executed by the debtor he had ordered of the plaintiff certain goods, and after the plaintiff had informed the debtor that they |