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In Re Bonacina Le Brasseur v Bonacina - Thomson Reuters

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(1876-77) L.R. 2 C.P.D. 1 Page 11876 WL 18594 (CPD), (1876) 25 W.R. 253(Cite as: (1876-77) LR 2 C.P.D. 1)*1 Heather & Son v. WebbDivisional CourtDCLord Coleridge, C.J., and Lindley, J.1876 Nov. 16Bankruptcy--Liquidation by Arrangement--Absence of Notice of Proceedings to Creditors--Subsequent Promise to pay Debt barred byBankruptcy--32 & 33 Vict. c. 71, ss. 49, 127.To a statement of defence, setting up that thedefendant was discharged from the claim by anorder of discharge obtained by him as the result ofproceedings for liquidation by arrangementsubsequent to the accrual of the claim, the plaintiffsreplied that they had had no notice of theliquidation proceedings until long after they hadbeen concluded, and that the defendant had notinserted the names of the plaintiffs as his creditors,or their debt in any list, statement, or document,forming any part of the proceedings, and thatsubsequently to the close of the proceedings thedefendant had promised to pay the claim:--Held, a bad reply.STATEMENT of claim incorporated theparticulars set forth in the special indorsement onthe writ, which were in respect of work done by theplaintiffs for the defendant, in the year 1873.The 2nd paragraph of the statement of defencestated that proceedings for liquidation byarrangement under the Bankruptcy Act, 1869, hadbeen taken by the defendant, that a trustee had beenappointed in whom the estate and effects of thedefendant became vested, and that the discharge ofthe defendant had been *2 duly granted by a specialresolution of the creditors, and thereupon thedefendant obtained from the Court of Bankruptcyan order and certificate of discharge from all debtsand liabilities in the prescribed form; and thedefendant further said that the plaintiffs' cause ofaction, if any, occurred before the defendant's saiddischarge.<strong>Re</strong>ply to the 2nd paragraph of the statement ofdefence, that the plaintiffs had no notice of theproceedings in bankruptcy or liquidation at anytime during the said proceedings, nor did theplaintiffs become aware of the same until long afterthe said proceedings were concluded, and that thedefendant did not insert the names of the plaintiffs,or either of them, as among his creditors, or thedebt, or any part thereof, sought to be recovered inthis action, in any list, statement, document, orpapers, forming part of the said proceedings, norgive, or cause to be given, any notice of anymeetings, as required by the said Bankruptcy Act,1869, and that since the close of the saidproceedings the defendant promised and agreed topay the full amount of the plaintiffs' claim.Demurrer to the reply and joinder.Ridley, for the defendant. The 127th section of theBankruptcy Act, 1869, makes the registration bythe registrar of the resolution of creditorsdischarging the debtor conclusive evidence that allthe requisitions of the Act in respect of suchresolution have been complied with. Consequentlythe fact that the plaintiffs had no notice of theliquidation proceedings, and that the debt was notinserted in the list, affords no ground of reply to thedefence. With regard to the subsequent promise topay the debt, the effect of the 49th section of theBankruptcy Act, 1869, is different from that of thesections of previous Acts in pari materiâ. The effectis not only to bar the remedy, but to destroy thedebt. Such debt cannot, therefore, afford a goodconsideration for the subsequent promise to pay.The ratio decidendi of the cases, in which it washeld that a debt barred by bankruptcy could berevived by a subsequent express promise, was thatthe remedy only was gone, but the debt continuedto exist, and so there was such a moral obligation topay it as would afford a sufficient consideration tosupport the express promise. [He cited 6 Geo. 4, c.16, s. 131; 5 & 6 Vict. c. 122, ss. 37, 43 *3 ; 12 &13 Vict. c. 106, ss. 200, 204; 24 & 25 Vict. c. 134,ss. 161, 164; Kirkpatrick v. Tattersall [FN1]; Jonesv. Phelps. [FN2]]FN1 13 M. & W. 766.FN2 20 W. R. 92.Willis, for the plaintiffs. It is submitted that thefailure to take any of the proper steps to give noticeof the liquidation proceedings to the plaintiffsprevents the discharge from affecting them. The127th section was not meant to cover such a defectas this. It was meant to cover irregularities ofprocedure, but not to cause creditors to be boundby proceedings to which they could not possibly beCopr. © West 2004 No Claim to Orig. Govt. Works

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