Cap. 9 Art. 192Circumstances which give rise to simple bankruptcy.

A bankrupt trader shall be declared guilty of simple bankruptcy and shall be punishable with imprisonment for a term from seven months to one year, in each of the cases following:

(a) if his personal expenses or those of his family have been excessive, having regard to his means;

(b) if he has spent a considerable part of his estate in purely hazardous or obviously rash transactions;

(c) if, with the object of delaying his bankruptcy, he has purchased goods with the intention of re-selling them below the market value and has actually so re-sold them, or if he has had recourse to loans, to indorsement of mercantile documents or to other ruinous means for the purpose of obtaining funds;

(d) if, after having stopped payments, he has continued to carry on business;

(e) if, after having stopped payments, he has paid or given any undue preference to any creditor to the prejudice of the general body of creditors: Provided that the court may, according to circumstances, decrease the punishment laid down in this article, from one to three degrees.