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Official Receiver, Ex parte, In re Wells & Croft (B.)

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Smith & Logan, In re, Ex parte Fletcher & Brandon (B.)
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REPORTS OF CASES

DECIDED IN

BANKRUPTCY

AND

COMPANIES' WINDING-UP.

CHAPLIN . DALY (ONION CLAIMANT).

1894, October 26. MATHEW AND CHARLES, JJ.

Deed of Arrangement-Affidavit of Debtor-Names and Addresses of CreditorsSecured Creditors-Deeds of Arrangement Act, 1887 (50 & 51 Vict. c. 57), 88. 4, 5, 6, 19.

The creditors whose names, addresses and claims require to be given in the schedule to a debtor's affidavit, under section 6, subsection 1, of the Deeds of Arrangement Act, 1887, are the creditors who are to take the benefit of the deed of arrangement, and not the secured creditors.

APPEAL from the Lambeth County Court.

Chaplin having obtained judgment against Daly, issued execution on 30 May. It appeared that Daly had on 25 May executed a deed of assignment for the benefit of his creditors in favour of the claimant Onion, which was registered on 31 May. With the deed of assignment was registered an affidavit as required by section 6, subsection 1 of the Deeds of Arrangement Act, 1887, and the rules made thereunder, setting out the estimated amount of property and liabilities, and the names and addresses of his creditors. This affidavit showed the total estimated amount of the debtor's property to be 1,450l., and the net amount, after deducting 1,300l.,-the value of securities held by creditors and required to cover their debts,-150l. The total estimated liabilities were 1,581l., and the net amount, after deducting the said sum of 1,300l., was 2811. In the schedule to the debtor's affidavit liabilities were shown to M.-VOL. II.

B

the said amount of. 2817, and the names and addresses of creditors to that amount were given, but the names and addresses of the secured creditors were not set out, nor was any reference made to them in the schedule.

At the trial of an interpleader issue the execution creditor contended that the deed of assignment was void on the ground that the schedule to the affidavit required to be registered with same did not give the names and addresses of the secured creditors, but the county court judge, being of opinion that the affidavit and schedule were sufficient, gave judgment in favour of the claimant Onion. The execution creditor appealed.

F. H. Mellor, for the execution creditor :

This affidavit does not comply with the requirements of section 6, sub-section 1, of the Deeds of Arrangement Act, 1887 (1), as it does not set out the names of all the creditors. A form of affidavit is provided by the rules made under the Act, paragraph 5 of which is as follows: "The names of my creditors, with their addresses, and the amount of debt due to or claimed by each of such creditors, are contained in and shown by the schedule (signed by me) to this my affidavit," and the schedule referred to is headed "Names of Creditors," "Addresses," " Amount of debt due or claimed by each creditor after deduction of value of securities held by the creditor." There is nothing there dispensing with the necessity of setting out the names and addresses of all creditors.

[MATHEW, J.: Reference is made to the secured creditors in the affidavit.]

That is not enough; their names and addresses must be given. The execution of such a deed is an act of bankruptcy, and could be so relied on by any creditor with a debt over 50l.; it would then be important to know who the secured creditors were, whether their

(1) Section 6, sub-section 1, of the Deeds of Arrangement Act, 1887, provides for the mode of registration of deeds of arrangement which, by section 5, to be valid have to be registered within seven clear days from their

first execution. With the deed has to be registered "an affidavit by the debtor stating the total estimated amount of property and liabilities included under the deed . . . and the names and addresses of his creditors."

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