LOSS ON HOUSE DEAL

Dominion, Volume 25, Issue 266, 5 August 1932, Page 9

LOSS ON HOUSE DEAL

No Quorum of Creditors TRAMWAYMAN’S PROBLEMS For the want of a quorum a meeting of creditors called for yesterday morning in the bankrupt estate of Dominic Smith, • tramway employee, lapsed. The Official Assignee, Mr. 8. 1 Tansley, presided. Bankrupt’s statement of accounts showed debts amounting to £275. The surplus from securities in the hands of secured creditors whs set down at £450, leaving a surplus of £175. In his sworn statement bankrupt said that in September, 1929, he purchased from Mrs. E. K. Megann a house property at Berhampore. The purchase price was £l2OO. He paid a cash deposit of £lOO, raised a first mortgage of £BOO which was paid to Mrs. Megann, and gave her a second mortgage for £3OO at £7 per centum per annum. In January, 1930, he resold the property to Henry Spencer Marshall for £ll5O. On the whole transaction he lost £142/12/-. In March, 1930, Marshall resold the property to one David John Murray. Both these sales were made subject to the mortgages already mentioned. Default was made by Marshall and Murray in payment of the interest due under the second mortgage to Mrs. Megann. He was given notice by Mrs. Megann of her intention to exercise her remedies under her mortgage and to issue execution under any judgment she might obtain against him. On Aply 5 last judgment was given against him for £377/19/-. He made application to the Supreme Court for relief against his personal liability under the mortgage, but this application was dismissed on the technical ground that judgment had been given against him two days before he filed his application on May 6 last. Mrs. Megann issued a writ of sale under the judgment. He applied to the court for an injunction to restrain the execution Of this writ on the ground that . no proper notice had been given under the Mortgagors Relief Act. This application was also unsuccessful and he had now filed to prevent a forced sale of his house property at Mornington by the sheriff.