quences will ensue, as in the case of a composition or scheme accepted before adjudication.

If the Court approves the composition or scheme, it may make an order annulling the bankruptcy, and vesting the property of the bankrupt in him, or in such other person as the Court may appoint, on such terms, and subject to such conditions, as the Court may declare (sect. 23, sub-s. 2).

And if default is made in the payment of any instalment, or if it appears that such composition or scheme cannot proceed without injustice or undue delay, power is given to the Court, on application by any person interested, to adjudge the debtor bankrupt, and to annul the composition or scheme, as in the case of a composition or scheme accepted and approved before adjudication (see ante, p. 110).

It may also be stated that by sect. 105, sub-s. 6, of the Act, for the purpose of approving a composition or scheme by joint debtors, the discretionary power is given to the Court, if it thinks fit, and on the report of the official receiver that it is expedient so to do, to dispense with the public examination of one of such joint debtors if he is unavoidably prevented from attending the examination by illness or absence abroad (see post, p. 124).

Lastly, it will be remembered, by section 170, after the passing of this Act no composition or liquidation under sects. 125 and 126 of the Bankruptcy Act, 1869, shall be allowed without the sanction of the Court or registrar; which sanction will only be granted if the proposed arrangement appears calculated to benefit all the creditors. See In re A. W. Craven, "The Times,' August 29th, 1883.

Creditor's Petition. Any creditor of a deceased debtor, whose debt would have been sufficient to support a bankruptcy petition against such debtor had he been alive, may, under the Act, present to the Court a petition in the proper form, praying for an order for the administration of the estate of such deceased debtor, according to the Law of Bankruptcy (sect. 125, sub-s. 1).

When this course is adopted notice of such petition must be given to the legal personal representative of the deceased debtor; and the Court, unless it is satisfied that there is reasonable probability that the estate will be sufficient for the payment of the debts of the deceased, may thereupon, upon proof of the petitioner's debt, make an order for the administration in bankruptcy of such estate; or it may, upon cause shown, dismiss the petition with or without costs (sect. 125, sub-s. 2).

Order for Administration. Upon an order being made for the administration of a deceased debtor's estate, the property of such debtor shall vest in the official receiver of the Court as trustee, who will

114 ADMINISTRATION TO PERSON DYING INSOLVENT.

forthwith proceed to realize and distribute the same (sect. 125, sub-s. 5).

But no such order of administration shall be made until the expiration of two months from the date of the grant of Probate or Letters of Administration, unless with the concurrence of the legal personal representative of the deceased debtor, or, unless the petitioner proves to the satisfaction of the Court that the debtor committed an act of bankruptcy within three months prior to his decease.

And, further, a petition for administration shall not be presented to the Court after proceedings have been commenced in any court of justice for the administration of the deceased debtor's estate; but that Court may, on the application of any creditor and upon proof that the estate is insufficient to pay its debts, transfer the proceeding to the Court exercising jurisdiction in bankruptcy, in which case an order for administration may be made by it entailing the like consequences as when the order is made on the petition of a creditor (sect. 125, sub-ss. 3, 4).

Administration of Property. In the administration of the property of the deceased debtor under an order of administration, the official receiver shall have regard to any claim by the legal personal representative of such debtor to payment of the proper funeral and testamentary expenses incurred by him, and such claims will be considered a preferential debt under the order, and payable in full out of the estate in priority to all others. And if after payment in full of all the debts due from the debtor and interest at 4 per cent., together with the costs of the administration, any surplus remains in the hands of the official receiver, such surplus shall

be paid over to the legal personal representative of the deceased debtor, or otherwise dealt with as may be prescribed (sect. 125, sub-ss. 7, 8).

But, subject to what has been said, all the provisions of Part III. of the Act (see post, p. 153) relating to the administration of the property of a bankrupt (see ante, pp. 55-85) shall, so far as the same are applicable, apply to the case of administration in bankruptcy of the estate of a person dying insolvent.

It is further provided that "notice to the legal personal representative of a deceased debtor of the presentation by a creditor of a petition under this section shall, in the event of an order for administration being made, be deemed to be equivalent to notice of an act of bankruptcy, and after such notice no payment or transfer of property made by the legal personal representative shall operate as a discharge to him as between himself and the official receiver (sect. 125, sub-ss. 5, 9).

Meaning of Terms. The term "Court," when used in sect. 125, dealing with this administration of a deceased debtor's estate, means the Court within the jurisdiction of which the debtor resided or carried on business for the greater part of the six months immediately prior to his decease, unless the context otherwise requires; and "creditor" means one or more creditors qualified to present a bankruptcy petition under the Act. Rules of Court may be made for carrying into effect the provisions of the section.

As to Appointment of Receiver and Stay of Proceedings. 123

As to Costs

As to Adjournment, &c.

As to Evidence

Jurisdiction. The Courts having jurisdiction in bankruptcy under the Act are the High Court and the local County Courts, except such as the Lord Chancellor by order may specially exclude from bankruptcy jurisdiction. From and after the commencement of the Act