(h) Exparte Shaw, 1 Glyn & J. 127; Ex parte Watson, 2 Ves. & B. 414; Ex parte Marsh, 1 Atk. 158; s. c. Cooke, 408; Ex parte Richardson, 3 Madd 138, Buck, 202. But it has been also held, that, when such debts are proved by the bankrupt, and the dividend paid, the amount shall not go into the hands of the bankrupt himself, but be deposited to the account of the estate, or paid into court. Ex parte Brookes, Cooke, 137; Ex parte Leeke, 2 Bro. Ch. 596. In this case, and on this point, the Lord Chancellor said: "I apprehend, in strictness, the bankrupt ought to be admitted a creditor for that which he has as executor, against his own estate; but it would be evidently improper to suffer the money to come into the hands of the bankrupt. In the present case, there is nothing but money in the hands of the assignees, and the creditor has such an interest in it as to entitle him to have it retained in court." And see Ex parte Llewellyn, Cooke, B. L, 135; Ex parte Ellis, 1 Atk. 101; Ex parte Shakeshaft, 3 Bro. Ch. 198; Ex parte Moody, 2 Rose, 413.

* These difficulties are very much increased and complicated when two or more bankrupt firms are connected in business, and still more when one or more persons belong to all the firms, in each of which, however, there are other persons.2 And not unfrequently, in such cases, the connection in business leads to a mode of keeping the accounts, or of making charges and entering credits, in one or all of the firms, which makes the difficulty still greater. It would, however, be difficult in any work, and impossible in a single chapter like this, to present any rules of law which would help to disentangle all such cases. And indeed the rules and principles applicable to them do not belong peculiarly to bankruptcy, but to partnership, sale, agency, or other branches of the law of contracts.

The dividends are declared at meetings called for that purpose. And it is the duty of the assignee to settle questions, arrange his accounts, collect the assets, and do what else is necessary, without any unnecessary delay; so that the funds of the bankrupt may pass into the hands of the creditors, to whom they belong, as soon as may be. And delay for which no good cause exists, would be a strong reason for removal of the assignee. (k)

(hh) Sections 36 and 37 provide for this.

(i) See vol. i. of this work, p. et seq.

(k) The decisions of the courts in relation to declaration of dividends, Ac , are found to be based so exclusively on statute provisions, that it is deemed inexpedient

1 The representatives of a partner cannot prove, under a joint commission against his firm, in competition with the creditors of the firm, although the partner had died before the bankruptcy, and his share was taken by the other partners and was not paid for at the time of the bankruptcy. Nanson v' Gordon, I App. Cas. 195. See also Amsinck v. Bean, 22 Wall. 395 - K.

2 When a bankrupt firm composed of A. and B. was indebted to a firm composed of B and C, it was held that C, as the remaining member of the latter firm, in settling it* affairs, could prove the debt against the assets of A. and B. Re Buckhause, 2 Lowell, 331. - K.

A debt may be proved at any meeting. The reason is, that it would be unjust wholly to exclude an actual and honest creditor, merely for not presenting his claim at an earlier period. (l) But it is also provided in our statute, that the former dividends are not to be disturbed. That is, no one coming in after a dividend has been declared and become payable, can take from creditors what they have received, or from the funds what is necessary to pay the dividends due to others; but the new-comer may receive not only the further dividends, but the past dividends, if the assignee has new and unappropriated funds which can pay them. (ll)