ADJUDICATED BANKRUPT
DEBTOR OPPOSES ORDER JUDGE DECIDES CIRCUMSTANCES CALL FOR INVESTIGATION A summons for adjudication as a bankrupt came before His Honour Mr Justice Kennedy in the Supreme Court this morning in the matter of Robert Schofield Haworth, storekeeper, Hunedin, debtox*—ex pai’te J. Rattray and Son Ltd., merchants, .Dunedin. Counsel for the petitioning creditor called John T. Dawson, accountant, who said that no part of the amount claimed in the petition had been paid. Counsel for the debtor asked and was granted leave to file an affidavit sworn yesterday by the debtor. He said that an order for adjudication was opposed under section 40 of the Bankruptcy Act oil the grounds that there was sufficient cause that no order should be made, that the debtor had no assets whatever, and that there was no reasonable possibility of his acquiring assets in the future. It was admitted that such grounds would be of no avail on the uncorroborated evidence of the debtor. Counsel went on to quote cases to show that it had been held that an order should not be made where proceedings would be useless and adjudication altogether a vain thing. The debtor stated clearly in his affidavit that he bad no assets, and that in this particular case he had consented to judgment to save proceedings being taken against his daughter, who was the storekeeper involved in the action. It was submitted that the petitioning creditor could meet the case by proceeding tor imprisonment for debt in the lower court. Counsel also submitted an affidavit. by the debtor’s son. _ Counsel for the petitioning creditor said that what was required was a complete investigation of the judgment debtor’s affairs, as his conduct had been far from satisfactory. It was also submitted that the affidavits did not amount to proof of the matters sworn to therein. The alleged corroboration w'as by the son, and the relationship between the father and son in business was one of the matters which it was desired to investigate. Furthermore, the debtor said there were £3OO worth of debts, and, as he had had very little employment since 1930, there might be the question, if there wore no assets, whether ho had any right to contract those liabilities. Such questions could be thoroughly investigated by the'Official Assignee on a bankruptcy. If the position was as the debtor said, then adjudication would not be a hardship on him. If he had no assets and nothing to fear, bankruptcy would be a benefit to him, for he would then, at no distant date, obtain his clearance and be able to start afresh. His Honour said that in this case there must be an Order adjudicating the debtor a bankrupt. He could not, from the material before him, say that a bankruptcy would have no result, or, to use the words of cases quoted, that it would be “a'vain thing” If the debtor were made bankrupt there would bo a public examination, and it might then bo ascertained if there were any assets. His Honour referred to other statements in the affidavit of the debtor, and said ho thought that the circumstances called for an investigation, which might properly take place in bankruptcy. No sufficient ease had been made by the debtor for the exorcise of the court’s discretion to refuse the bankruptcy. On the contrary, there was sufficient evidence to raise a case for inquiry in bankruptcy. The debtor was accordingly adjudged a bankrupt.
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Bibliographic details
Evening Star, Issue 21147, 6 July 1932, Page 7
Word Count
577ADJUDICATED BANKRUPT Evening Star, Issue 21147, 6 July 1932, Page 7
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