MEETING OF CREDITORS.

Dominion, Volume 1, Issue 56, 29 November 1907, Page 3

MEETING OF CREDITORS.

E. J. SKARL'S BANKRUPTCY. ,The adjourned meeting of creditors in the bankrupt estate of Edward John Send, caterer, was held before the Official Assignee (Mr. James Ashcroft) on Wednesday afternoon, and further adjourned until yesterday. At the previous meeting, held on Friday, November 22, it was decided that tho bankrupt should be given three clear days (exclusive of Sunday) wherewith to fiud satisfactory guarantees for a payment of 10s. in, the pound, payable by instalments spread over a certain time. This offer, if satisfactory, was to release the bankrupt and give him an opportunity of carrying on business with a view to clearing himself. Mr. Hordman appeared for Messrs. Atkinson and Bennett, Mr. Petberick for Mr. Lyons, Mr. Cook for Mr. Jupp, one of tho creditors; and Mr. 4- Dunn for bankrupt. In opening the proceedings on Wednesday, the Official Assigneo announced that, in conformity with a resolution passed at a private meeting of the joint creditors in the estate, he Had called for tenders, and he had received the following:—" I hereby offer the sum of £1 for the share of Edward .1. SeJirl-in the lease and catering business of Messrs. Searl and Lyons, carried on in Willis Street, such tonder to be for the assets and interest, subject to all existing bailments and biUs of sale created by Searl and Lyons over the partnership property, and subject to mortgage in favour of Alexander Dunn with tho said E. J. Searl's half-share of interest therein." " Very artistic," commented Mr. Pctherick. The bankrupt thon intimated that he had boon unable to arrange for a guaranteed offer of 10s. in the pound. ■ "Is it a fact," asked the Official Assignee, " that last Saturday you induced tho girls at the restaurant to strike?" The bankrupt denied tho allegation. Mr. Lyons (bankrupt's partner) contradicted bankrupt's statement. He contended that Searl had forced tho girls to leave the shop. At this stage the proceedings degonorated into an interchange of compliments between Mr. Lyons and Mr. Jupp. Order having been restored, Mr. Dunn oxplained that, tho first transaction he had with Searl was when bankrupt came to him when ho had-opened the place and borrowed the first month's rent, £36. He had lent him tho money and took a bill of sale over the free chattels as security for it, lending the money at 7 per cent, interest. The bill of sale was registered. Mr. Lyons naid that bankrupt had informed him that his total liability at that timo was. outside of the business itself a mm of £200 to the D.I.C. The; next transaction, continued Mr. Dunn, was tho deed of partnership with Lyons.- Mr. Lyons entered into tho partnership for £2oO", payinp £150 in cash, and giving two bills for '£. r >o each for the residue. The bills had come into the speaker's possession: Subsequently Senrl began to make draws ngninst them, and ho had advanced money against tho bills. Tho first bill became duo 'about two months ago, and wns presented and dishonoured. The other was now due. So for as his memory served him the cash he had advanced to bankrupt against the bills enme to about £130. For the past half year ho had boon conducting litigation for Searl involving heavy disbursements. Tho bankrupt had mortgaged his share to pay the costs. Regarding the legality of tho mortgage,, tho security offered was not very good as the mortgage only affected what came to hear! when ho became insolvent. Hero a.sharp skirmish took place between the bankrupt and Lyons. Tho Official Assignee intervened,'arid, after tho-storm had settled, referred to Searl's interest in tho lease of the Willis Street, premises. Ho wir.hed to find 'a purchaser. Mr. Potherick pointed out that an action wns pending to recover possession of tho premises, and if tho offer wore accepted if, became necessary, for the Assignee to applv for rolief against forfeiture of tho lease, and Ik. suggasted that authority should be given t<l him to apply for. that on the Assignee's behalf, and, having obtained it, tho" lease tn , be vested in Mr. Lyons. The Asnigneo said that, seeing the position of Mr. Lyons in the matter, the best thin," to do would bo to give'him what they could without impoverishing themselves. It was quite clear that thoy could not get anything fo<- the half-share outsido tho single paltry offer of £1, and that from the bankrupt's wife. -He was in favour of transferring the lease to Mr. Lyons fora small consideration, and would like to have the creditors with him.. ■ : . , After some discussion, a motion by Mr. Taylor, seconded by Mr. Robert Hannah, to havo tho bankrupt publicly examined, was earned unanimously. A dispute subsequently arosc_ as to tho motion, it, boing contended that it was not formally put t<l the mooting. On again being ,put, the Official Assignee declared it to havo been lost on thft value of tho votes cast, but ho declared, nevertheless, that'ho would ask for a public examination. (Applause) Mr. Cook, after an altercation ' with tho Assignee, tabled tho following motion: — "That in consideration of Mr. Searl consenting to judgment being entered against him on his application for discharge from bankruptcy for 10s. in tho £ on all proved private debts, the amount of the judgment, together with interest at the rato of" 5 per cont. per annum, to bo paid by equal half-j yearly instalments extending over, two years,' this mooting resolves to recommend that debtor bo granted an immediate order of discharge, and in order to enable the debtor to make tho above-mentioned payments, directs the Official Assignee to transfer to Mrs. Searl all the bankrupt's assets and interest in tho partnership and his othor assets, including his right of action against Bennett and another." The Assignee was , of opinion that the motion was one upon which the joint creditors in the estate were entitled to vote; he would take counsel's opinion on the matter, and tho meeting would thon stand adjourned until the following afternoon.