Breaches of the Bankruptcy Act

Manawatu Times, Volume LIV, Issue 6658, 19 September 1931, Page 6

Breaches of the Bankruptcy Act

CASE HEARD AT COURT.

Before Messrs A. J. Graham and 0. H. Whitehead, J.’sP-, in tho Palmerston North Magistrate’s Court yesterday Alfred Hardingham Rushbrook, a builder, formerly of Palmerston North and now of Napier, was convicted and sentenced to six months’ imprisonment, concurrent, on several charges breaches of the Bankruptcy Act. Accused was charged that, between August 30, 1930, and November -7, 1930, he did obtain credit to tho extern of £55 11s 8d from Messrs Pitcher and Baker, while still an undischarged bankrupt without disclosing that circumstance. Five further charges involved amounts as under£23l • 13s from Beattie and Procter, £412 13s 2d from Tiratu Sawmilling Co., £330 from J. A. Anderson, £2l 19s lOd from Alexander Clark, Ltd., and £213 15s 6d from W. Proctor and Son. Mr. Gordon appeared for accused and Mr. Cooke for tho prosecution. A plea of guilty was entered in each instance, accused electing to be dealt with summarily. . Mr. Cooke explained that accused had gone bankrupt in Danncvirke in 1925, but none of tho listed creditors liad been aware that he had been an undischarged bankrupt. In all six charges the sum of £1520 in liabilities had been involved. Mr. Gordon said that when accused had gone bankrupt in Danncvirke it had not been viewed by the creditors as a serious matter. Mr. Cooke: There were proofs of debts to the extent of £472 'with assets amounting to £29 and the dividend in the estate was cightpence. Continuing, Air. Gordon stated that on his arrival in Palmerston North accused had entered into building contracts, but although at first fairly successful, his activities had later proved otherwise. Prior to accuseu becoming bankrupt in Palmerston North two friends had been prepared to pay sufficient into the estate to permit of 4s 6d in the £1 being paid, but owing to want of unanimity on the part of the creditors —two holding out —it had not been possible to meet tne wishes of the majority of the creditors. Accused was a married man with five of a family, while his wife had been an invalid for some time past. Accused had “worked hard with his hands, if not with his head,” and had he paid the few pounds to permit of him securing ms discharge from bankruptcy in Danncvirke he would not have "been in the position he was in to-day. Air. Cooke: What chance would ho havo had of securing it after paying cightpence in tho £l. Air. Gordon said he considered that a conviction would, meet the position for accused had no knowledge of the Bankruptcy Act. The Bench: We find ourselves in a difficult position. However, wo feel that the offence must bo punished, although we regret having to impose the penalty . The law is there and accused should have informed his creditors that he was an undischarged bankrupt. The offence is one against commercial interests and this case will servo as an object lesson to others. He will be convicted and sentenced to six months’ imprisonment on each charge, the sentences to bo concurrent.