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A decision of some importance to debtors in bankrupt estates was given by Mr Justice Richmond in Chambers to-day. Soipe time ago Mr E. C. Goodinge obtained from the Official Assignee the book debts in the bankrupt estate of William M‘Alpine, a painter. He sued some debtors for the amount owed by them to the estate and the Magistrate held that under the Property Law Consolidation Act it was necessary that notice be given to the debtors before he issued a summons, which had not been done in these cases, and plaintiff could not succeed. Mr Morrison, who appealed for plaintiff, contended that the Bankruptcy Act enabled the Official Assignee and any person to whom ho might assign the debts, to re. cover without notice. He obtained leave to appeal, and afterwards moved in the Supreme Court for a writ of mandamus. Mr Justice Richmond gave the following judgment:—“ In this case the writ must go. I see no reason to doubt that the assignment by the Official Assignee is good in equity, independent of the bankruptcy, and enables the transferee to sue in his own name without reference to the Property Law Consolidation Act. I think that the debtor has no defence. The effect of the Property Law Consolidation Act is only to give a right to sue at law for that which already exists, the right to sue for in equity. Let the writ issue.” Subsequently Mr Morrison applied to Mr Robinson, R.M., that plaintiff should receive judgment, and His Worship accordingly entered up judgment for the plaintiff.

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Bibliographic details

BOOK DEBTS IN BANKRUPTCY CASES., Issue 7982, 10 August 1889

Word Count

BOOK DEBTS IN BANKRUPTCY CASES. Issue 7982, 10 August 1889

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