pplication
must be given, grant the bankrupt a discharge either absolutely or under
conditions, but subject to the following qualifications, viz.:--(1) If the
bankrupt has committed a criminal offence connected with the bankruptcy,
the application must be refused unless for special reasons the court
determines otherwise. (2) If the assets are not equal in value to ten
shillings in the pound of the unsecured liabilities (unless the bankrupt
can show that he is not responsible); or if proper books have not been
kept; or if the bankrupt has traded after knowledge of insolvency; or has
contracted debts without reasonable probability of payment; or failed to
account for his deficiency; or contributed to the bankruptcy by rash
speculation, gambling, culpable neglect or by unjustifiable expenses; or
has taken or defended legal proceedings on frivolous grounds; or has within
three months preceding the receiving order given an undue preference; or
has increased his liabilities with the view of making his assets equal to
ten shillings in the pound; or has previously been bankrupt or made an
arrangement with creditors; or has been guilty of any fraud or fraudulent
breach of trust; then the court shall, on proof of any of these facts,
either (a) refuse the discharge, or (b) suspend it for a period of not less
than two years, or until a dividend of not less than ten shillings in the
pound has been paid; or (c) qualify the order by the condition that
judgment is entered up against the bankrupt for payment of any unpaid
balance of his debts, or of part of such balance out of his future earnings
or property. The bankrupt may, however, after two years apply to the court
to modify the conditions if he is unable to comply with them. An order of
discharge releases the debtor from all his obligations except debts due to
the crown, and other obligations of a public character which can only be
discharged with the consent of the Treasury, debts incurred by fraud, and
judgment debts in an action for seduction or as a co-respondent in a
matrimonial suit or under an affiliation order, which are only released to
such extent and subject to such conditions as the court may expressly
order. The release of the bankrupt does not operate as a release [v.03
p.0327] of any partner or co-obligant with him. Neither does it release the
bankrupt from liability to criminal prosecution.

_Composition or Scheme of Arrangement._

After a receiving order has been