A BANKRUPT AND A BILL OF SALE

Evening Star, Issue 12307, 23 September 1904, Page 4

A BANKRUPT AND A BILL OF SALE

~ .pi. In Chambers litis morning Mr Justice Williams was occupied a while with an application in re James Smith, of Palmerston, storekeeper—an application on behalf of the Official .Assignee to set aside a bill of sale given by (Smith to John Thomas GWynne on tho oOrh November last, and under which Gwynne had taken possession of Smith s property alleged to be affected by the bill of sale on the 25th July. The application was founded on a notice of date Ibtli July sent by Smith to I). Benjamin and Co., who were his main creditors. The notice contained these words: “Through the ‘Times’ having withdrawn their agency at a less of £6O to me, 1 find it is no use for me to try to carry on any longer. I am quite willing lo‘ assign the estate over to you for the benefit of my creditors!. Should you agree to this step I will feel obliged if you will take the necessary steps at once or advise me what to do. It is no use me declaring mvs.elf bankrupt, as that would only heap expense on (o the estate.” In consequence ot this letter Messis D. Benjamin and Co. called a meeting of creditors on the 25th July, and on that day OWynne enforced the security and took possession. Mr Fraser appeared tor the Assignee and Mr Bailey fur (IWynne. it was contended on behalf of the Assignee Unit the letter of tho 18th July was an act. of h.uikmptcy within tho meaning of section 29 oi the Bankruptcy Act. aud that in consequence, (lie seizure having been made later and under an unregistered bill of sale, was therefore void as against the Assignee; further, that tho bill of sale purported to assign after-acquired chattels, and was void on that ground also as against tlie latter. Tho main' wises relied on were Crunk v, Morley (24 Q.8.D.. o2o] and in re Lamb id Mnr roil, 25). After hearing lengthy argument His Honor set aside the bill of sale on the ground that the letter constituted an act of bankruptcy, allowing 5 guineas costs end disbursements.