SUPREME COURT Farmer Adjudicated Bankrupt

Press, Volume CIX, Issue 32054, 31 July 1969, Page 9

SUPREME COURT Farmer Adjudicated Bankrupt

A North Canterbury farm-; er, Ransom Bruce, the prin-i cipal shareholder in a private; farming company, Hiljview | Station, Ltd, Waiau, was ad-; judicated bankrupt by Mr! Justice Macarthur in the Supreme Court yesterday, after a debt of $19,203 had been proved against him, and his application for an adjournment of the case had been contested.

The petitioning creditor, Arthur Laurence Borrell, a shepherd, of Cust (Mr A. D. Holland), had given evidence of making an unsecured loan of $16,000 to Mr Bruce in March, 1967, for a term of nine months, and of obtaining a judgment debt for $19,203 representing the original loan plus interest and costs—earlier this year, after nothing had been paid to him. Counsel for Mrfßruce, Mr J. E. Butler, sought a fortnight’s adjournment of the petition, on the ground that this would enable hoped-for

arrangements for repayment —but the adjournment was opposed by Mr Holland, who said nothing Mr Bruce could do was likely to result in repayment

In fact said Mr Holland, the petitioner feared he might be worse off under the proposed moves. These, as outlined by Mr Butler, were that Mr Bruce hoped to buy out his codirector, a Mr Flintoft, in the company Hillview Station, Ltd, to enable the sale of the property, and thus the repayment of the debt But said Mr Butler, Mr Bruce had as yet been unable to raise the finance necessary for this. The Hillview Station company had a paid-up capital of $48,000, said Mr Butler. Mr Bruce's shareholding being $24,000. Mr Flintoft’s $13,000, and _the latter’s wife. $6OOO.

IA recent valuation of the station land was $BO,OOO, on i which mortgages were held for $43,000. Stock and plant were valued at $40,000, unen* i cumbered. As a last resort, said Mr Butler, Mr Bruce had recently offered Mr Borrell a charge over the stock and plant or, alternatively, a mortgage over the land. His Honour: How can he do that? This is a farming company.

Mr Butler said that Mr Bruce also hoped that his codirector, Mr Flintoft, might be able to buy him out, which might be possible if Mr Bruce were to leave a balance of money owing to him—but this had also not eventuated. His Honour said it was difficult to see any justification for an adjournment, but stood the case down for 15 minutes

to enable counsel to discuss further Mr Bruce’s proposals. On resumption, Mr Butler said that the proposals had been rejected—and called on by his Honour, said that no evidence would be given. Mr Holland then said that the petitioner did not accept facts as outlined, and felt they should be proved in evidence. His Honour said: “I have no doubt that it would be wrong to accede to the request for an adjournment The petitioning creditor has had a judgment in his favour for a substantial sum, he has complied with all procedural matters—and not a cent has been paid of the debt “It is quite clear, having heard the petitioner's evidence, that an order for adjudication in bankruptcy must be made, and I make that order.”

The petitioner was awarded $5O costs and disbursements.

Discharge From Bankruptcy An unconditional discharge from bankruptcy was granted Margaret Livingston Chaney, a clerk (Mr R. F. B. Perry), by Mr Justice Macarthur in the Supreme Court yesterday. A further application, byWalter William Hancox. an upholsterer (Mr P. G. Hill), for discharge from bankruptcy, was adjourned to August 20. Petition Withdrawn A creditor’s petition for the winding-up of the Canterbury Stone Company, Ltd, brought by Sea Freightways, Ltd (Mr G. R. Lascelles), was withdrawn by leave of the court, after Mr Lascelles had said that the debt -had been paid in full.