BANKRUPTCY CASE

Evening Post, Volume LXXXVIII, Issue 150, 22 December 1914, Page 2

BANKRUPTCY CASE

ALLEGED FRAUDULENT TRANSFER PROCEEDINGS HEARD BY CHIEF JUSTICE. An action involving a charge of fraud waft heard at the Supreme Court yesterday boforo his Honour the Chief Justice (Sir Robert Stout). The proceedings, brought under the Bankruptcy Act, 1908, were a motion by Mr. C. W. Nielsen, counsel for the Official Assignee ih Bankruptcy, for an order setting aside as void A sale and transfer from a bankrupt. Alexander Thbtnoa M'Williatn, livory stable kofeper, to Frank Boffa, hairdresser, dated 9th February, 101-1, aud a bailment from Boffd, to tho bankrupt of 10th February, 1914, of certain plant and chattels. These latter included tbree landaus, four sets of double harness, Bingle set of harness, sceveu horses, and other equipment. Tho motion also askod that tha chattels and assets be declared assess iii the 'bankrupt's estate. The grounds of tho application were that the was not a transfer of property made "in good faith for valuation, but was & fraudulent transfor by the bankrupt of his property for tho purpose of defeating creditors \ that the sale was a transfer of property 'made by tho- bankrupt tinsible to pay his debts as they became due from his own money in favour of Boffa (a creditor), with a vitnv to preferring him,; that the bailment purported to be made b^ Boffa in favour of the bankrupt wa* void, tho same having boon given in respect of chat» tels of which Boffa- was not the true owner at the_ timo of execution, which c'uait'elß were in the possession of the bankrupt at the commencement of the bankruptcy. In support of tho applic?,fcion two af-fida-vits were filed. Ono of the&e Wn-8 by James Mastort/on Ferguson, who stated that on tho 17th February, 1914, tho Court gave judgment in his favour against M'William fof the eu*;i of £129 15s and costs. On tho 9th February, 3914 (it was allaged), M'Williara purported to sell all his plant and chattels as a livorVstable koet>er t6 Boffa., and on 10th Feb^ ruary Boifa executed an agreement for bailment of the plant and chattels in favour of M'William, Who continued to carry on hie business as before. On 28th April M' William was adjudged Ivinkrupt, and ho (Forgueon) had beoa advised that the transactions between tho bankrupt and Boffa wore fraudulent and vo'd under the Bankruptcy Act. Counsel, in his affidavit, stated that a sale noto dated 9t'n February, signed by A. T. M'William, purporting to dispose of his plant and chattels to Boffa was produced at a meeting of creditors in the estate held in the Official Assignee's Oflice aftor the adjudication. ' Ho (Mr. Nielsen) had boen authorised by the Official Assignee to proceed m his name for an order setting asido the transactions between the bankrupt and Boffa. After evidence had been heard in support of the motion, Mr. H. L. Macheil (who appeared for the bankrupt) opened the defence, submitting that the transact tion was a perfectly genuine ono. Mr. Williams (the bankrupt) stated that ho expeoted to get tho bupineas back — that j Mr. Boffa was going to bail it back to him. ,Ho owed Boffaa considerable sum of monfey on a promissory note, and ho had not heard the result of the action brought by Ferguson when ho f*xed up I the transaction with Boffa. ■ He did not expect -that judgment would go against him. He hod a police contraot and £72 on the books and goodwill and three years' lease. There was no intention on his part to defraud Townsend, but his object was to carry on business. Bofta had threatened to put him through ifye Court. The transaction with Boffa was A bona-fid© transaction, and after witness had handed him possession ho remained at the stable and carried on the business. Every. <Mle of liis creditors had consented to his discharge except Ferguson Mr. Nielsen : Was not this transaction between you and Boffa just a trifle "fishy?"— lt should not be— it was bohofido and absolutely cleat and above board. Why ,was it done between the hearing of tho cate atid th* date of the judgment? — It is for Mj, Boffa to say. I wae compelled to do it. After further cross-examination his Honour suggested that Boffa should bo given bnok his £50, hand over the property, and give proof of hie debt. It was agreed that counsel should confer and see if any agreement could be come to, and report to his Honour tomorrow.