CREDITORS WANT CAR

Press, Volume CII, Issue 30057, 15 February 1963, Page 11

CREDITORS WANT CAR

Insurance Co., Dissents (N.Z. Press Association) PALMERSTON N„ Feb. 14. For more than one hour and a half of a creditors’ meeting which extended to two hours and a half, a bankrupt was under examination by the Official Assignee and creditors in Palmerston North yesterday. The bankrupt was Raymond John Noonan, a married man, aged 30. who described himself as “unemployed at the moment.” Many of the questions, and much of the subsequent discussion among creditors concerned a motor-car used by Noonan while employed as an insurance salesman for the National Mutual Life Association of Australia, Ltd. The company, it was explained by the Official Assignee (Mr H. G. Whyte) had advised that it would not surrender the car in dispute for the greater benefit of creditors.

Unless the car were handed over, the company would find it necessary to issue a writ in the Supreme Court for the amount of its security as represented by the car. The decision of the creditors represented was that the Official Assignee proceed with the sale of the car at a price acceptable to himself and the insurance company, and hold in trust the proceeds of the sale pending the outcome of Court proceedings. Mr Whyte said he felt that the Supreme Court judgment given in Christchurch against an insurance company’s claim that an employee should forfeit to the company his commissions and assets on his bankruptcy was properly decided, and applied in the present case.

If he handed over the vehicle, of which he had taken possession on behalf of the creditors, he could become personally liable, he said.