IMPORTANT CASE.

Hawera & Normanby Star, Volume XLII, Issue XLII, 13 April 1922, Page 5

IMPORTANT CASE.

BIG SUM INVOLVED.

(BX TELEGRAPH —PRESS ASSOCIATION.) GISBORNE, April 12. Mr Barton, S.M., as Registrar of the {Supreme Court, to-day dismissed the petition of Hatrick and Co., Wanganui, to declare A. W. Lewis and Sons, motor merchants, bankrupt. In the course of the proceedings it was stated that Lewis and Sons' liabilities were £47,000, and their assets £41,000, an alleged deficiency of £6000. Recently, Lewis and Sons assigned their estate, and the trustees arranged for the sale of the assets per medium of an expert salesman. It was submitted, in support of the petition, that a letter to the creditors contained notice of suspension of payment of debt as well as notice of assignment. The Registrar said a most important principle of bankruptcy law was involved, which did not seem to have been before the Courts previously. The question was: As the petition alleged an act of bankruptcy other than an assignment deed, could the Court weigh the relative advantages of winding up under the deed-in question, or in bankruptcy? He held, following the judgment of Mr Justice Reed, that it was better, having regard to the large stocks on hand, to have the estate wound up by an expert rather than through the medium of the Bankruptcy Courts. Ten guineas and expenses were given against the petitioner.