SUPREME COURT.—In Bankruptcy.

New Zealand Herald, Volume XI, Issue 4021, 1 October 1874, Page 3

SUPREME COURT.—In Bankruptcy.

\ Wednesday, 30tu September. 1 [Before His Honor Sir G. A. Arney, Kniglit, Chief ; Justice.] 1 A srscrAL sitting of the Court was held this morning. Re George Thorne, jux. —Mr. Whitaker appeared for the bankrupt; Mr. MacCormick for the opposing creditor (the Bank of K"c-,v South Wales). An order was made at the last special sitting to require the bankrupt to furnish an accurate account of his estate (assets and liabilities) on the Ist of September, 1573 ; also on the 3rd of January, 1574, with an account of receipts and payments between these dates. —Mr. Whitaker said the bankrupt had been employed since the last sitting in the endeavour to comply with the order of the Court, but he found it quite impracticable to do so without some assistance. The Court would recollect that in the first instance accounts were made up and supplied by the bankrupt; that amended accounts were asked for and furnished, and the trustee appeared to be th* -21 satisfied. But now it turned out that »n those accounts were not satisfactory i 0 the opposing crcditoio, "wlio jolted for further accounts. The fell into the- view that such were desirable in. order thin; the exact state of the bankrupt's affairs should be shewn from time to time. It was impossible that the bankrupt could do this the assistance of an accountant. ■" Court should allow him this -assistance the question was who should be employed, as being thoroughly competent. Mr. Wayxnouth, sen., was usually employed in these cases. The bankrupt could not explain the whole of fiipqrt accounts. It reouired an accountant to do that. "Would the learned counsel make any objection to the r,pplication that an accountant should be employed.—Mr. MacCormick protested against the application being entertained for one moment. He must ask the Court to regard the whole progress of these proceedings. When the bankrupt was served on the 13th of January Avith an order which fixed the day for his coming up for his examination, he was also served | with notice that he would have to file his I statement of accounts ten days before that time. Instead of paying the slightest attention to the order of the Court the bankrupt went for a trip round the coast of New Zealand. It was now eight months from that date t» the present time, and there had been a complete wasto of time. [Mr. "Wliitaker : Yes.] The truth really was that it was impossible for any one to know what was the position of the bankrupt's affairs from the statement sent in by him. It was false. He (Mr. MacCormick) did not hesitate to say that it was not merely incorrect. I. he bankrupt could not be permitted to say that it was "incorrect." If any person should be employed to make up these accounts the bankrupt might not hold himself bound by them. He would say, " That is the accountant's account," and would not pledge himself to their accuracy. But the bankrupt mint know the state of his affairs : either that or give some satisfactory explanation. Why not ? Mr. Thorne was continuing his business in Auckland fiV a period extending ov.:r four months, up to the day of his adjudication as a bankrupt, and the whole of that time continued to deal with his estate. The Court would see from the way those boo?;s were kept whether it did not warrant the inference that up to the time they came into the li-mds of the trustee they were wilfully snd deliberately made up in such a shapp as to conceal the actual state of his affairs »tnd the manner of his dealing with tb* estate during the months immediate).; preceding Ilia bankruptcy and at that date. Now an application was made at the expense of the opposing creditors to supply defaults which did not occur through their laches, but through the wilful and deliberate conduct pursued by the bankrupt himself. After having put them to enormous expense, was he to endeavour at still further expense to endeavour to get information v,ii,' c h h e liimself must have kept hack wilfuiw? B«t there was another objection. He (Mr. -MacCormick) believed that the bankrupt was in possession of funds himself out of this estate. —Mr. Whitaker : I say it is utterly untrue. —Mr! MacCormick : It was not proved to be untrue. The position of the case was that the trustee bid not been able to ascertain what property had been handed over to him. The only statement by which he could be guided was that of the 3rd of May, but that statement was utterly valueless for any such purpose. It was simply a list of balances of accounts. It was in no respect such as could be regarded ly the Court as a compliance with the order. Instead of complying with the order the bankrupt went off on a holiday excursion.—Eis Honor : The impression left on my mini was that the gentleman was ill at the time.—Mr. MacCormick : I made the application for the adjournment and said so. I knew of no other reason. His Honor: There was 110 feeling mixed up the proceedings at that time. "W ltli regard to the application itself, is not the position this : That the trustee's duty is to make his report upon the bankrupt's affairs that ho may come to the Court and ask for assistance if he requires it ( trustee is in the position of an cOiccr of the Court. —Mr. Whitaker could 6,ee plainly that the object of the other side was to spin the whole thing out as long as possible. Enough time had already been wasted. "What he desired was that the Court, knowing the facts, would give facility for doing what it required of the bankrupt. In this case the Bank of New South Wales was the opposing creditor ; the trustee was o paid officer of the bank ; lie had the custody of the books at the office of the bank. They had the inspector there in Court from day to day. Mr. Joy was present regulating, managing, directing. All that he asked was, that the assistance of a competent accountant, say Mr. Waymouth, sen., should be allowed to the bankrupt. He mentioned Mr. Waymouth's name because he was regarded as a thoroughly competent person and had some acquaintance with these matters. The books might be away from the bank, the accounts could be taken in the Supreme Court Building.-—Mr. MacCormick : This was entirely new matter. He objected to it. Was the bankrupt to be allowed to insinuate charges against the opposing creditors at this stage of the proceedings, when the fault was that of the bankrupt himself ? Were they to be put to this additional expense?— Mr. Whitaker : You objeot that the estate shall be put co the expense of the assistance which the bankrupt asks ? There is so much personal feeling about the matter that I will undertake to have an accountant employed, if I have to pay him out of my own pocket. But' you have the books, : and the books must ' be available for the purpose of making up the accounts. I will have the wliolo thing completed, whether for good or for evil,

one -way or tie other. All that I want now is that the-accounts shall he placed in. the hands of Mr. Wayinouth.- There is no use wasting further time. I ask that for this purpose another place should "Be appointed than the Bank of Kew South Wales. I desire that the fullest information should be given to the C'-ourt. 1 believe the result will ,'shew that these accounts are satisfactory. The Bank of South Wales occupy a hostile position towards the bankrupt : tliey or their officer, the trustee, has the bookj at the bank premises. I tlxiuk the books might be taken to another place : I suggest the Supreme Court. —His Honor : The trustee is the custodian of the books ; they are the property of the Dankrupt in his possession for the benefit of creditors. lam sure the trustee would not object to give the bankrupt access to these books at all reasonabletimes.—Mr. MacCormick: lam astounded at the statements made by my learned friend. I can state that access has never been refused to Mr. Thorne; that Mr. Thorne, the trustee, and his accountant have occupied two rooms day after day—the accountant and Mr. Thorne one room, and the trustee the other ; that there is a separate entrance to these rooms, and neither Mr. 'i.ill, the inspector, nor Mr. Joy have gone into these rooms. I am instructed that the bankrupt is in possession of the only book which represents a stock book, taken away from the trustee's office without intimation. —Mr. Whitaker: I object to statements being made that are not true. I had only one thing in view, and that was to facilitate this enquiry and prevent more time being wasted. I do not further object, seeing fcfcit :tio obstruction shall be thrown ir. tW MacCormick : I protest ag;v?i.st its being implied that the bank ever did, or any officer of the bank ever did, put obstruction in the way of those accounts being taken.—Mr. Whitaker: I merely suggested that the books might be placed in the Supreme Court, as a more suitable place for their examination to be made, and where auy interruption would be less probable.—After some further discussion it was agreed that the accounts should be made up in terms of the order made on the last Court-day, dating from the Ist October, 1573, to the 3rd of January, 1874.