MONEY FOR CREDITORS

Auckland Star, Volume LXI, Issue 229, 27 September 1930, Page 11

MONEY FOR CREDITORS

WEST COAST NATIVE LANDS. ESTATE WHICH HAD NO ASSETS CHEQUE HELD BY SOLICITOR. (By Telegraph.—Own Correspondent.) NEW PLYMOUTH, Friday. A reserved judgment which Mr. Justice Ostler delivered to-day, following a motion under the Bankruptcy Act, will have the effect of placing £300 at the disposal of creditors in the bankrupt estate of Neroa Ngarewa, of Hawera, whereas no assets were scheduled at the ! statutory meeting. The decision will have far-reaching importance in connection with native lands under the West Coast Settlement Reserves Act. The motion was for an order on behalf of the District Official Assignee declaring a cheque for £300 lienl b} bankrupt's solicitor to be the propeitv of bankrupt, which passes to the assignee under section (31 as an asset in bankrupted". A cheque was given to bankrupt d. the Crown in part payment of a sinae in land owned by bankrupt and sotd Iby him to the Crown. Ngarewa was ! adjudged bankrupt on October 3, 1925. when "his proved debts amounted to £253 14,/ l). There were no assets. Bankrupt was owner of 37; acres of native reserve. On May 22, 1930. the Crown acquired bankrupt's share in the i land in pursuance of powers under the | Native Land Amendment Act, 1913. The j Crown paid for the land in two cheques,; one for £3.5 19/4, and the other for! £300, which was made payable to bank-j rupt's order, and the cheque is now in •• the hands of his solicitors. • ! The application by bankrupt for his discharge, which was made on April 30J 1930, was adjourned to enable the Dis-1 trict Official Assignee to niakj thw application; The" question.- was whether j the £-')00 passed to the assignee as u;i i asset in the bankrupt's estate. It was contended by counsel for bank-; rupt that wast coast settlement tend* were in. a different category from native lands, and that the proceeds of the sale of such land could never be assets in bankruptcy.

After reviewing the legislation relating to native lands, his Honor said that in 1913 an enactment was passed, the effect of which was to abolish restriction against the sale of these reserves. His Honor found that there must be an order declaring moneys assets in tlii» estate, and gave judgment accordingly, with costs £10 10/ and disbursements. At-the-hearing Mr. L. A. Taylor appeared'for the District Official Assignee and* Mr.' L.' IT. Moss for the bankrupt.