YESTERDAY'S PROCEEDINGS.

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

YESTERDAY'S PROCEEDINGS.

SQUABBLING AMONG CREDITORS. A PATIENT ASSIGNEE. The investigation of the affairs of E. J. Searl, caterer, was continued yesterday afternoon, when the proceedings were enlivened with numerous "passages" between various parties. ' ' Mr. H. D. Bell, K.C., attended on behalf of the Official ,Assignee. In opening tho proceedings the Official Assignee pointed out that a clause in the Bankruptcy Act provided that creditors in the partnership estate could prove and vote in any decision affecting either of the partners; He had consulted Mr. Bell with reference to the resolution tabled by Mr. Cook at the previous meeting. The position simply was as follows: — "1. This is either a composition or it is not n. composition. If it is a composition, then it could only take effect by a confirming resolution passed at a nicoting held not less than fourteen days hence, and confirmod by the Court, on a report from the Assignee; and I should be bound to report that, in my opinion, it is entirely fallacious. "2. If it is not a composition, but a recommendation, to tho Court, then tho resolution could only bo carried out on an order of tho Judge at an application for discharge after hearing the report of the Assignee and any objecting creditor. If granted, it could not be enforced unless tho Assignee could prove that Searl had available assets. "3. As to convoynnco to Mrs. Soarl, for a nominal sum, of Searl's interest-in the. business, that would only enuse confusion, as 1 have no power to force Searl on Lyons as a partner. "4. Meantime, the lease is in jeopardy, and delay may be fatal; as Mr. Lyons cannot be expected to carry on in a state of uncertainty. "5. In those circumstances, if the resolution is carried, I shall not carry it into effect till I obtain tho advice and assistance of the Court." ' Mr.. Dunn, for the bankrupt, intimated that they were prepared to consent to the right of action in re Atkinson and Bennett being struck out of the resolution,

In reply to a question. Mr. Cook said that lie appeared on Mialf of Messrs. Jupp and Kent. Mr. Potherick: I objoct to proxies which arc not in proper form." Mr. Cook: I have a right to bo here. Mr. Petherick: The previous proxy was in Jupp's name, not in yonrs. Mr. Lyons, at this juncture, offered to buyout Senrl's interest in the business for £s\if the leaso were assigned to him. lie would then be prepared to discharge all liabilities in the joint account. . Mr. Hurcoml) moved accordingly:—"That the interest of the bankrupt, in the partnership business of Searl and Lyons be sold to Mr. Lyons, at- the amount, of £5, offered by him, the Official Assignee, at the cost of Mr. Lyons, to obtain relief against the forfeiture of the lease <ind assign the lease to Mr. Lyons." This was seconded by Mr. Ahvard. It was some time before it could be formally put, a lengthy discussion intervening. Mr. Corrigan, manager for the D.1.C., said that, they were, benting the air. He sympathised with Lyons,, but he had the interests of his firm to consider." He urged creditors to accept .Searl's offer of 10s. in the pound, even although'it were not guaranteed. The Official Assignee, at this stage, read tho original motion tabled by Mr. Cook. Mr. Wright: This resolution to allow Searl to be discharged on his mere promise is a monstrous proposal. I cannot understand Mr. Corrigan's attitude in this' matter. He is a business man, and he insisted previously on such an offer from Searl being backed up by a guarantee. Why is bo now prepared to accept bankrupt's offer without a guarantee? Mr. Corrigan: There is a chance of getting something, that is all. The bankrupt is unablo to find a guarantor. There is nothing to be got by pursuing that object. Mr. Hannah: It's a case of nothing on top of nothing. The Official Assignee: Mr. Corrigan does jnot see that by accepting Searl's offer he is standing in Lyons's light. Mr. Cook: It strikes me that you are acting for Lyons, not for the creditors. Mr. Alward intimated that he would be glad to hoar of a suggestion from tho bankrupt. Mr. Cook endeavoured to get a hearing, but was ordered by the Assignee to resume his_ seat. "If you don't, I'll send for a policoman," added Mr. Ashcroft. Tho bankrupt stated, in support of his bona fides with regard to his offer, that ten years ago be had been in a similar position in Mflsterton. Ho had made a similar offer to his creditors,' and ho had fulfilled his promises. > Mr. Dunn said that most of his claim was in respect of cash advanced to Searl. Mr. Petherick suggested that if Mr. Dunn would accept a half-sharo in the business and carry on with Lyons tho creditors would agree. A Voice: Let's have a public examination. ihc Bankrupt: If I am publicly examined I will get a fair trial. I have not had a fair trial from tho Official Assignee. Ho (bankrupt) courted (,ho fullest inquiry. Mr. Atkinson considered that the only thing worthy of consideration at present was that of sentiment. As far as the ostato was concerned, they could expect nothing. . That was certain. Lyons had been hard'hit, and tho least they could do was to assist him in securing relief. He (Lyons) had lost hundreds over the business. The passing of such a resolution as proposed by Mr. Cook would reduce the bankruptcy laws to a farce Mr. Cook was then informed that he would be granted ' two minutes " in which to state Ins case. Ho said, " You threatened to send for a.policeman to turn mo out. I am not accustomed to remarks of this nature. I appear for. two clients, who arc prepared to accept any reasonable offer." Mr. Hannah endorsed Mr. Atkinson's remarks. If the original motion were carried, commercial morality would be at a very low ebb. Ho had never before come down on a.man who had sought the protection of the Court. The Bankrupt: J£r Hannah complains of i , ? 4 - Hc has received from me about £900 in rent. He (bankrupt) .had let behind m the Cuba Street rooms'improvements to the value of £200. Hannah Had sued him for certain fixtures which he had removed, and tho Court had awarded half tho claim only. ■n' J i r ;« Ct "'-, rig ' in ' defon(lil >G bis attitude, said that Mr. Lyons wont into tho business with' bis and ho ought to have realised Ins position. The D.l.fJ. had Held back simply because of Lyons. Had thoy chose they could have squeezed Searl before, and so tr P .r haV ° sucoeeded in gating _. Mr. Hannah: I was squeezing him all the time. At this stage tho original motion was amended to read:-" That, in consideration ot Mr. bearl, in an application for discharge, consenting to judgment against him for iOs in the £ on all proved privato debts, the amount of the judgment, together with interest at tho rato of 5 per cent, per annum, to bo paid by equal half-yearly instalments extending over two years, this meeting resolves to recommend that the debtor be granted an immediate discharge." Tho motion was then formally put, and carried on a division. . ■ Mr. Hurcomb's motion was then submitted to the meeting, and, carried, with one dissentient. 'i' h . c , proceedings then terminated. The Olhcial Assignoo turned away with" a sigh of relief, but ho was not allowed to escape "Mr. Ashcroft!" said Mr.. Petherick. Well,-, what now?" inquired tho. Assignee. " l'beg to inform you,"" said Mr. Pctherick, • that nine summonses against Mr. Lyoiiil and yourself, as partner in the estate,' will bo issued to-morrow." The creditors then dispersed.