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THE APPEAL COURT.

WELLINGTON, October 19. The case of in re M'Grath ex parte the Official Assignee occupied the Court of Appeal during yesterday and to-day. This is an appeal from a decision of Mr Justice Denniston dismissing a motion by the Official Assignee to set aside a deed of conveyance and assignment dated the 25th April, 1896, executed byabankrupt, Danis M'Grath, in favor of his wife, Annie M'Grath. Bankrupt wa3 a contractor engaged in considerable contracts in different parts of the colony, and whilst so engaged he made payments to his wife from time to time of moneys received by him from such contracts. His wife from time to time also made payments to him which he utilised in his business, which he treated I as loans to himself. Shortly before his bankruptcy, when his alleged indebtedness to his wife amounted to £BOO, she pressed him to convey and assign to her his house in Wellington and the furniture therein, worth £4OO, in part discharge of the alleged debt to her, and he did so by. the abovenamed deed. The deed was executed more than three months before the bankruptcy, and was not therefore attacked as fradulent preference, but the Assignee relied on the Statute of Elizabeth against fradulent conveyances and seetion 77 of the Bankruptcy Act, 1892, in regard to settlements executed within one year, of a bankruptcy. Mr Justice Denniston found on the evidence that the payments made by the bankrupt to his wife were gifts and those made by her to him were loans, and that the conveyance and assignment was for valuable consideration ana in good faith, and could not be imThe Official Assignee appeals from thiß decision. Mr Cresswell is appearing for the appellant, and Mr Martin for the respondent (bankrupts wife). Argument is not yet concluded.

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https://paperspast.natlib.govt.nz/newspapers/ESD18971019.2.38

Bibliographic details

THE APPEAL COURT., Issue 10448, 19 October 1897

Word Count
303

THE APPEAL COURT. Issue 10448, 19 October 1897

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