IN BANKRUPTCY.

Evening Post, Volume LXXIX, Issue 119, 23 May 1910, Page 2

IN BANKRUPTCY.

Mr. Justice Chapman delivered judgment last week in a bankruptcy matter affecting the relations of Henry William Trotman, of Wellington, confectioner, a bankrupt, and A. S. Paterson and Co., of Wellington, merchants. The matter was contained in an application to set aside as a fraudulent preference a transaction which in effect amounted to payment of a debt owing by the debtor, Trotman, to tho creditors, A. S. Paterson and Co., by giving them a set-off or establishing mutual credit to the amount' of £154 12s 6d against a debt of almost equal amount. "There is no dispute," said the Judge, "as to two facts— Trotman was not able to pay his debts as they came due, and A. S. Paterson and Co. bought to secure themselves." The question for determination was whether the debtor sold these goods with a. view of giving this creditor preference over tho other creditors. On this point, after quoting several cases in point, his Honur said lie had come to the conclusion that the transaction ought not to have been avoided. The motion was dismissed, with costs £10 10s. Mr. yon Haast appeared for the Official Assignee, in Bankruptcy of theestate of H. W. Trotman, and Mr. Dalziell for A. S. Paterson and Co.