INDIAN CLERK'S FAILURE

Auckland Star, Volume LXII, Issue 214, 10 September 1931, Page 5

INDIAN CLERK'S FAILURE

DEALINGS IN PROPERTY.

HIT BY THE SLUMP.

CREDITORS FAVOUR DISCHARGE.

The. bankruptcy of Sada Nanda Mahraj, clerk, of Auckland, was investigated to-day at a meeting of creditors, presided over by tlie Official Assignee, Mr. A, W, Watters. A judgment summons issued by the petitioning creditor was stated to have been the cause of the bankruptcy. After lengthy examination it was resolved, without a dissentient, that debtors' discharge be facilitated. Bankrupt's financial schedule showed claims of unsecured creditors totalling £1607, and a deficiency of £1367, the only item on the assets sidfc being book debts of £481, estimated to produce £240. Mahraj, for whom Mr.. R. A. Singer appeared, said he commenced dealing in properties in 1925, with a total oapital of £570. Until 1928 he did fairly well, and made some profit, but, owing to the slump, he found he could not depose of some properties, atid, after being on his hands, they were taken over by the mortgagees. His wife's illness had also cost him about £400. The pause of his bankruptcy was due to the issue of a writ for. £800 in his wife's estate by the petitioning, creditor. t Answering the Assignee, Mahraj sjiid he had made, a profit of £700 on two properties, and had lost on the others, the total loss being £3525. After deducting his capital (£570) and the profit £700), this left a net loss of £2255. The Assignee remarked that the difference between this figure and the deficiency shown in his statement was too large, and must be explained. If the figures were correct, he must have been insolvent in 1928, when his last property was taken out of his hands. Mahraj said his bankruptcy had been precipitated by a judgment obtained against him in respect of the building Gf a house undertaken by bis late wife. After bankrupt had been further examined, Mr. C. A. Snedden, representing one of the principal creditors, eaid it was clearly evident that Mahraj, like a lot of other people, had been hit by the slump. Mr. Snedden moved that bankrupt's discharge be facilitated. This was seconded by another creditor's representative, and carried without discussion. The examination was closed, and the | case was left in the h&nds of the Assignee.