His Honor said: At the time Mitchell con tracted this debt of f35 14s to Lightband, Allan, and Co., on 13th October last, the firm of Mitchell and Morrison was as a fact hopelessly insolvent. Their liabilities, including theliability on that day contracted with Lightband, Allan, and Co., amounted to £747. Their assets con sisted of stock which, including the £35 worth they bought from Lightbaud, Allan, and Co., has realised some £70. They also had book debts to the nominal value of £150. Tbeeo, however, the assignee reports will nob realise their nominal value or anything like it; in fact the total amount he states as likely to be realised is under £100. Under these circumstances, when Mit chell contracted this debt on behalf of his firm it cannot be said that he could have bad any reasonable or probable ground of expectation of being able to pay the same. He therefore comes within the terms of sub-section 2 of sec tion 171 of " The Bankruptcy Act 1883." And to bring him .within the terms of that section, it does not appear to be necessary that he should have known the state of his affairs. The section makes it an offence if a debt has been contracted when at the time the debtor could not have had any reisonablo or probable ground of expectation of being able to pay the same. In order, therefore, to ascertain whether there was a reasonable or probable ground we havo to look at the facts as they were. I think, however, in this case that itmust be taken that Mitchell knew the state of the firm's affairs, it seems to me to be childish to suppose that he did not know that the firm was on this day hopelessly involved. That being so, I am satisfied that he has brought himself within this sub-section, and that the court should deal with him accordingly. With respect to the other partner the case seems to me to be differ ent. No doubt Mitchell was agent for Morrison as one partner is always for another. But I think it does not follow that because one partner is agent for another he 13 agent for him in order to bring him within the clutches of what is prac tically the criminal law. 