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Deuxièmement, «les modalités de la cession au bénéfice de créanciers étaient exactement les mêmes, que le cédant ait été insolvable ou non… La validité de la cession et son effet ne tiendraient aucunement à l’insolvabilité du cédant et, d’après leurs Seigneuries, il est clair que l’art. 9 s’appliquait, que le cédant fût ou non insolvable» (à la p. 199).
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The explanation for this result is found in two passages of the Privy Council’s reasons. First, “it is to be observed that an assignment for the general benefit of creditors has long been known to the jurisprudence of this country and also of Canada, and has its force and effect at common law quite independently of any system of bankruptcy or insolvency, or any legislation relating thereto” (at p. 198). Second, “the operation of an assignment for the benefit of creditors was precisely the same, whether the assignor was or was not insolvent… The validity of the assignment and its effect would in no way depend on the insolvency of the assignor, and their Lordships think it clear that the 9th section would equally apply whether the assignor was or was not insolvent” (at p. 199). What is evident, therefore, from that case is that, unlike the situation here, the operation of the provincial enactment did not depend on insolvency and the Privy Council was willing to treat s. 9 as having an object that was independent of it. This may even be a supportable view today, albeit there is a range of existing federal legislation dealing with bankruptcy and insolvency. I should note, however, that in the majority judgment of this Court in Reference re the Validity of the Orderly Payment of Debts Act, 1959 (Alta.)[11], at pp. 576-577, Kerwin C.J.C. referring to the Voluntary Assignments reference, said “it is doubtful whether in view of later pronouncements of the Judicial Committee it
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