RARE PROCEDURE.

Hawera Star, Volume XLVI, 16 April 1926, Page 7

RARE PROCEDURE.

A BANKRUPTCY ANNULLED. SOUTH TARANAKI ESTATE. - A he bankruptcy of Edwin Reuben Has tie, or jA_uupuhoiiui, farmer, was yesterday annulled, in tne supreme Court at. New A'iyrnoutii, wiien tne reserved. decision oil l\ir. Justice Keen was delivered. T!wo motions were Uieu appealing lor the annuliimeut, on the ground of irregular adjudication, one by ’bankrupt and the other by William UamlDies, of Wanganui, a secured creditor. At the hearing, Mr. F. G. Spratt appeared lor bankrupt and Wambles, and Mr. <J. H, Weston on behalf ot the Cincial Assignee.

Uiastie was adjudged bankrupt ■ oil December 1, on tbe petition of one creditor, H. J. Ea.ves. On December il a creditors meeting was held and a deficiency of £10,069 was revealed. After covering the history of the bankruptcy, the decision referred to the two motions for the annulment. It was obvious that both were made in the interest of the creditor Gambles, who wais ia secured creditor, under a bill of .sale for £4487 over farm stock. This stock was now estimated to be valued at £2841. The bill of sale gave Gambles the right to collect the milk cheques, and a number of these, representing about £801), were collected by him at dates subsequent -to the act of bankruptcy, upon. Which the creditor’s petition was based. In view of a previous court decision it was thought that Gambles might be liable to refund, the £BOO to the Official Assignee. The motions for the annulments were therefore brought forward in order chat the creditor might be secured in bis possession of the £BOO,

“The application, on the face of it, might be considered a bold one, but there is this to be said, that the- adjudication was irregular, inasmutoh as the petition was based on an act of bankruptcy alleged to have been committed oil a date which wa.s more than three months before the petition was filed. It is clear law that a creditor is not entitled to file ■ a bankruptcy petition againsb a debtor unleste__the debtor has committed an act of bankruptcy within, three rnnoths before the filing of the petition.’< ’ An order was made that the adjudication be annulled, His Honour holding that Gambles was entitled to the order. The Official Assignee was fully protected by the statute for any acts lawfully done by him, but if anythng furthere was required application could be made to the court.

The question of costs was reserved, to be dealt with if the parties fail to agree.