J. G. WARD AND THE COLONIAL BANK.

Press, Volume LIV, Issue 9736, 26 May 1897, Page 6

J. G. WARD AND THE COLONIAL BANK.

(PRESS ASSOCIATION TELEGRAM.)

DUNEDIN, May 25. Mr Justice Williams, to day, refused ; the application for the sale of Mr J. G. Ward's liabilities to the Colonial Bank to Mr TJatger. • In the course of his judgment he said—"lf the evidence brought forward discloses the prima facie existence of grave commercial irregularities to which the debtor, whose debt is proposed to be compromised, was a party, and if the'effect of a compromise would probably be to assist the debtor to escape bankruptcy, and so prevent his conduct being further enquired into and adjudicated upon by the proper tribunal, I do not think a compromise should be sanctioned by the Court. To sanction a compromise in such circumstances would be for the Court to allow itself to. be. made an instrument to protect persons guilty of commercial irregularities from legal consequences. If there is evidence of theexisfence ofgravecommercial irregularities then the better the terms of the compromise offered the more probable it is that the offer is made wit— a view to hushing up such irregularities. The above contains what I conceive to be a .cort rect statementof the principles applicable' to cases of this kind. In accordance with th» intention I indicated on the last occasion I consulted the other Judges on the subject, and also furnished them with reports of the proceedings in connexion with the present application, and of other evidence of which the Court was in possession in connexion with Mr Ward's business transactions. The majority of the Judges concur with mc in the above statement of the principles which are applicable, and also consider that, looking at the material before the Court and applying the above principles, a compromise ought not to be sanctioned. I regret, therefore, that I cannot accede to the application."