WHOSE PROPERTY?

Dominion, Volume 22, Issue 183, 1 May 1929, Page 14

WHOSE PROPERTY?

CLAIM AGAINST BANKRUPT OFFICIAL ASSIGNEE SUCCEEDS An order under section 76 of the Bankruptcy Act was sought against Alexander Hoss, boot manuiacturer, of Wellington, in the Supreme Court yesterday, before Mr. Justice MacGregor. Mr. O. C. Mazengarb appeared for the Official Assignee in support of the motion. Mr." M. J. Crombie acted for the bankrupt’s wife, Mrs. Jauet 8. Ross. Mr. Mazengarb said that application was being made to have two house properties at Ngaio, which at present stood in the name of Mrs. Ross, vested in the Official Assignee, or alternately, to have an order made requiring Mrs. Ross to pay to the Official Assignee the value of the improvements made to the property by the bankrupt shortly before his bankruptcy in June, 1928. The case was a typical one of a person being insolvent, and resolving to convert bis business assets into other "assets in his wife’s name shortly before his bankruptcy. It was alleged that all the arrangements in connection with building the. houses had been carried out by Ross, and that the money taken out of the Wellington business had been going into the Ngaio property. Ross mentioned that he was holding the property in trust for his wife, but had refused to arrange for Mrs. Ross to transfer the two sections to the Official Assignee. Counsel contended that Ross, when he saw that the creditors were determined to obtain the property, went round to the persons who supplied material for the houses, and asked them to alter their accounts from A. Ross to Mrs. J. S. Ross. Dlr. Crombie: That is why this action is being defended. It is the creditors of Mrs. Ross who should get any equity there is in the houses. His Honour: Is she bankrupt, too? Mr. Crombie: No, Sir; but she may be if this action goes against the bankrupt. Evidence was given by the bankrupt, and two witnesses, J. J. Fiel and P. Keesing. Addressing the Court, Mr. Crombie said that the application was made under section 76 of the Bankruptcy Act. To succeed the applicant must bring his case within the words of that section. He must prove one or more of four things: (1) The erection of buildings by the husband upon the land of the wife’s; or (2) the improvement by the husband of the wife's land; or (3) the purchase of land by the husband in th wife’s name; or (4) the provision of money by the bus. band to purchase land in the wife’s name. Counsel submitted that none of the circumstances in the case came within section 76, and that the application could not succeed. “I am satisfied,” said His Honour, “that the Official Assignee is entitled to succeed; in other words, I am satisfied it has been proved to my satisfaction that the bankrupt within two years before his adjudication purchased the land in his wife’s name, and thereafter erected certain buildings 'thereon and otherwise improved the land. I am not quite satisfied at present as to the precise form of the order I should make, and I propose to reserve further consideration in order to give the parties an opportunity to look into the circumstances and satisfy themselves as to what further order is required from the Court.” His Honour added that there should not be any difficulty in agreeing upon the mode of carrying out the order. Costs, £lO 10s., were awarded against Mrs. Ross, disbursements and witnesses’ expenses to be fixed by the Registrar.