A PROMISSORY NOTE.

Auckland Star, Volume XLVI, Issue 229, 25 September 1915, Page 9

A PROMISSORY NOTE.

WALTER mi HASAN. LIMITED, V. —■—"""""Si. oioxnor.

Mr. .TuUiee Cooper <zavr> judgment at the Supreme I imrt }cnterday uftern'>on in the ca«e of Walter Rurhanin. Ltd. (Mr. H. H. Ostler) v. Maurice (Vl'onnor (Mr. K. I. Prendergaetl. The claim w»« io recover balance alleged to he due upon a promissory nute for £I37*> signed by defendant und certain oth"r persons, in favour of plaintilT. It wim claimed that CXX) 17/2 waa still'owing. topetlier with interest.

Hi* Honor reviewed the evidence, documente and correspondence at consider able lenjjth. He pointed out that on March. 1012, the plaintiff company, then being the proprietor of a confectionery. fancy goo.i«. faterinsT an,l rrfrr*hment roomj business in Kiirangahape Koad, entered into an agreement with the rlefemlnnt and eleven other person*, under which the syndicate agreed tv l.u\ the above ment.oned ina-uifT-". including the lease of the premium, nflfi.'k in tra le. and sny other a«*ets for £llllkl. Mr Walter Buchanan'" share «a> ti\«?<l at jLiiiik). and wa* paid by «n ajrec:nent to transfer to the nntlCate IDOO shareh in tlie plaintiff company fully paid up. The balance ol tin- pmvha»e money n» to he paid ats follow*:— i.Jt4."i on the dale o-f execution >>f t'n ai/repnnnt, £137.-> within »i\ lllontl;*. an I £117.'» witllin 12 month* thereafter I' •■ JC244.". wns duly paid. Ilin 'Honor h»M that b\ idniMe .1 nf til" a.'ii-i'inei,: enti»re<l int.) ' Walter Buclinimn "as exempted from •my liability In it. and the plaint IT i":npnny ftrrepteil from the sVlidicnte llie joint nnd scw-ral promi»«or\ ni>ti<« euili f.,r l:i7-->. neither of which «ns -iune.l by Wnlter Hinliniiiin. The plaintilTenm p'any was not entitled to claim th.it the syndicate vvae » partnerohip, ns it »a« brought into nxietence for the purp»«e <if forming a eompflny to be call.'d tin\V.ilt<i Buchanan Cake C'uinpany, I.M. to carry on such btwinea*. The company wa« duly forme,! and regi«terrd on -lune 22nd. 1012. His Honor mid the iiirnibern of the r.yndfcate. other than Walter Riiehannii. rexa;ne,| jointly nu.i severally liable, l<iit h< , . "as not i-ti.-.l they were partners thin tliri moaning nf the Partnership Act. HXW. By rlnuiw 7 'if tlie agreement, upon tlie exeintioli nf a proper awignment to; a nmninei* or nominees of the dyndieate. "who tOinll first Iμ , . approved of in writing by the vendor, each individual member of tlie syndicate «hall be discharged from all it -> liability, provided that if such nominee shall li.' a company conslnting <>f tlie members of the syndicate, then in such ! rase the balance remaining unpuid of j the purclißßC money shall become and be payable immediately upon the execution by the syndicate of such uwignment."

The plaintiff company no» sued defendant for tlifi balance remaining unpaid for principal. nml interest upon the ftecnml proniiesorv note Ilin Honor lirlil thiit the approval of thi- plaintiff i-oinpany to the assignment of the Cuke ( nmpaiiv was i|*o facto tn operate iw ,i ilircharge of the liability of thi; mflkrri> of the promissory note, alul an a trant-fer of such liability to tho fake Company, lie considered there was nnt sullitient evidence upon which the Court ronlil ' hold that O'Connor »a* e«tnppe,l from denying liit* liability on the prornimon note. Tli-e intilT company hi"l. in ! his opinion, faile.l to mtAlilii-li tin- lin bility of t!ii' defendant, Mini lip umil.l j therefore enter n jiidpnii'iit .if non-uit jan against O'Connor, »itli eo«tK mi lh» i middle scale. k