JUDGMENT

Wilson, J. - The insolvents in this case, Messrs. David Cowie and John Cowie, with Bazette Colvin, were the partners in the firm of Colvin, Cowie, and Co. This case was heard on the 8th, 9th, and 10th instants; and the question for decision is, whether the insolvents are entitled to their personal discharge.

2. The firm is one of old standing. From the year 1869, the partners have been the three gentlemen I have named.

3. Down to the year 1874, the firm carried on business as merchants, business in goods on commission, and business as bankers and agents.

4. Between 1871 and 1874 they sustained heavy losses, in consequence of unsuccessful consignments of goods to Europe. At this time, Mr. David Cowie, the senior partner, was in Europe. In August 1874, he returned to Calcutta. The losses sustained during the period I have mentioned are stated by Mr. David Cowie to have amounted to Rs. 5,00,000. This amount afterwards resolved itself into three heads:-(i) a sum of about Rs. 2,00,000, which sum, in the annual balance sheets prepared by the partners for their own use, is entered to the debit of their shipping account simply "lost;" (ii) a debt, fluctuating somewhat, but always over Rs. 1,00,000, to Messrs. Crawford, Colvin & Co., a London firm, with whom the insolvents had business connections; (iii) a large sum, the exact amount of which was not stated, which Mr. D. Cowie said was properly a debt to the same firm, but which the latter remitted.

5. It was the practice of the firm to make up their accounts to the 30th April of each year, but naturally the actual adjustment took place later. The books for the year ending 30th April 1875 were made up on the 19th October 1875. The result of the balance sheet then struck (being the balance of assets and liabilities up to the 30th April 1875) was as follows: --Liabilities, Rs. 13,58,940, as against the assets, showed a deficit of rather over Rs. 2,00,000. The balance sheet to April 1876 showed a deficit of Rs. 2,71,240 ; that to April 1877, Rs. 2,76,267 ; that to April 1878, Rs. 3,21,236 ; that to April 1879, Rs. 4,37,185. It is right to add that the large increase in this year is due, not to any real change in the state of affairs, but to the fact that debts hitherto treated as hopeful were now written off' as bad. Stating the matter in another way, the firm could, in April 1875, have paid twelve or thirteen annas in the rupee. After a steady decline, the assets now have about half that proportion to the liabilities.

6. The profits of the year ending April 1875 were Rs. 16,950; those to April 1876 Rs. 52,400; those to April 1877, Rs, 23,025, after writing off in this last year Rs. 722 of bad debts of earlier years.

7. From the year 1874, the firm almost entirely abandoned their business as merchants, and from about the middle of 1877, a further change took place. Their business as merchants came entirely to an end, and their dealings in goods on commission also ceased, and has never been resumed. There remained nothing but the banking and agency business. That business consisted almost entirely in dealing with the money of their constituents. The only other element shown to have existed in the business, was that of shipping agents--the consignment of ships to the insolvents--for which they were remunerated by a small percentage on the freight receivable here. The extent of this latter business Mr. David Cowie was not able to state, because the accounts of it were not kept separate from the general agency business. But having regard to the total profits from year to year, its results can hardly have been very important financially. About the same time occurred the circumstances which I notice, because they are favourable to the insolvents. Mr. John Cowie had, in the course of fifteen or sixteen years, overdrawn somewhat largely as between himself and the firm. In the year 1876, he borrowed from a relative Rs. 30,000, which he paid into the firm in reduction of his overdraft. Mr. David