ASSIGNMENT TO WIFE

Northern Advocate, 7 November 1934, Page 5

ASSIGNMENT TO WIFE

ACTION OF BANKRUPT. LEGALITY QUESTION. [Special to “Northern Advocate”] GISBORNE, This Day.

The legality or otherwise of an assignment made by a bankrupt, Percy Walter Taylor, to his wife, was the subject of legal argument before Mr Justice Gstler in the Supreme Court' yesterday, the case being one in which the official assignee moved to have the assignment declared void. The property tarnsferred was one-third interest in the residuary estate of bankrupt’s mother, the value of which is not definitely known, but which is believed to be approximately £6OO. Mr F. W. Nolan, for the assignee, submitted that under an Elizabethan Statute, the assignment, which was made in March of last year, was void, as it was taken by .Mrs Taylor only because she knew that the Public Trustee had asked for the estate to be put in as an additional security for less interest owing to her husband. Mr L. T. Burnard, for the defence, stated that Mrs Taylor was a bona fide creditor, as some years ago she had lent bankrupt money for a specific purpose on the specific undertaking that she was to be protected out of his share of his mother’s estate. Giving evidence, Mrs Taylor stated that advances had been made in 1927 under the definite promise of protection, and after the death of bankrupt’s mother in 1932 she had asked him to make an assignment in accordance with his promise and this was subsequently done. After hearing legal arguments His Honour reserved his decision. I