IN BANCO.

Dominion, Volume 2, Issue 605, 7 September 1909, Page 9

IN BANCO.

DISTRICT COUET JUDGMENT -REVERSED KEEN BUSINESS: NOTiPRAUD AT iIL. by.' his ~ Hon6Ur' : .MrV Justice•'caso - of Jam6s.', ; ivvthe -' ' : -AtaigiiM-iir. Banfciuptbyv'bf t the r :'{iropDHy of >' ■ Robert' Buckmani: flaimiUcr, a-bankrupt, an •*" •fifeg'l oa:questions of -laiv 'from this Judgment ot itho. District 'Court, at .HaWera. ■>" When the .caw was rfrpiicl^before : the: iigher>C6ui't ' on ' ' Att&nst.'»(''-'Mr.:'Skerrett, ,K.C.,- and Mr:-; Ostler appeared for tlia,fippellaiit, ;aiid Mr. AV: H. 1), •.Bell/for.,the respondent! ;"•>,« Vtvc-s; '•• ■> that ■; ; tiucfeman was. adjudicated' binki-upt- on Janu- ■ i ffy creditors' 'petition. ; On ! •: : Uatcb-28, ~1507,-_.Mr.- A:; Burgess, implement manufacturer, of Palmerston- North,' hired to .-.fW^-ft'flbnble-flyliiidcr.Marshall Britannia . '■■■ i to .Sjno of tho ndm'ittal value of :sm. . Backr.man,agreedito,pay,to BurgeSs for hire.of the ; ..mme tWep sums, >£150, .£140,. and iSIOS, with: - Jitfrcst; About £110 Sv'as still unpaid when ; • Suckman told, Burgess .that lie /wanted to sell 7' .•ae - «»nB8, •. of Buckman's creditors 1 :: , held,at.llnnaia on November 6 Inst, "and i-ampbfell (appellant) moved, that the five credioffer Burgess "jCISO■ for tho Mni p P m< ' to Burgess was . en-. ■ ?, m P he , U 3 money- On November 7, 1307, , Campbell took-.possession of the engine, and . cold, ; itsubsequently for :■ £300:. .'There 1 4as -a. ' -V tlu> .'.transaction:. 5 of ■about' JGIOO' yWW;','."® appellant retained, 1 claiming it as 1 ' „. Bn fkman's'total liabilities ■ ■ : #mmteff to'XM2.Ss. -Id., owmg to thirtyrfivo. • T- e i Dsputy-0fficial-Assignee applied tSllf ft . D,str . lc^ . Court- for 'an order' declaring ??p"v was the property of tho bank-. . - tlm6 ;of the. bankruptcy. The ■ ; . Uuicial ■ Assignee;claimed,.-. that ! 0 b / 'A® "nppe'lan't .from Burgess ■??« S? f° r tho ; w V lo Wt ot creditors, • •"■' « n < r hp. asked for ..an order requiring the nn-' pell.Mt to -pay ov f r to Wm ■ tfi e : prLeds re- ■ ' fM 0 * li 1 District Judge held Jmin had committed a fraud ' ' • ' f W 'creditors, 'and '.that • :• acc °P nt to '.tha Assignee i b J him ' with a dedui>: ■■ ■ fo I costs and "expenses of deliver- »-; -ongine-to tho ultimate purchaser • The .taken before . the district : Judz» '' '.dearly, in bis; Honour's opinion, that . ' -iHw 5 was not sold to Campbell on behall , of tho general f body.of creditors, but Was bouelit ; ~by: ' him;for;himself, and the fon? other S "'-tbe .meating. :>; It was'clear' , . that, if.-the ttansactiou had turned out a loss '...-tte.-mneral body of creditors would have renu' . diated-.it;,' They would .have, said : "Vou had no ; authority to buy tho engine for us.- It was . - y ?it/- O,Tn ; You,stood to. • Pf a made a: loss,■ we ~ aw. under .no obligation to indemnify yon." Tlil , appollint wa3 evidently a''kocn . man of biisiness. He had made a largo profit biiKliii • Honour could t not see thatllhad infringed . W .legal nght of tho general body of creditor , ; Th«. engine, was not it whs not - sold- to the general body of predltorfa The Dis- . tnet-Judge had characterised the transaction i ; -?wlo^V/ ros l, Vv- bis-Hoiioiur ,jvas not nble..to. come _to the same conclusion. appeal .would .ibe allowed, with fifteen' guineas Sfjfj' %° 110 - n District Court would b« dismissed, with ten guineas costs i fcos-rn that Court to bo paid'by, the appet