LAW AND POLICE.

New Zealand Herald, Volume XXV, Issue 9036, 24 April 1888, Page 3

LAW AND POLICE.

SUPREME COURT.— Bankruptcy. Monday. [Before His Honor Mr. Justice Gillies.] Okdeks of Discharge.—Mr. Hesketh made application for an order of discharge to be granted to Edward Lewis, a bankrupt. He explained that by consent it was arranged to allow this matter to stand over till next sitting of the Court, and asked if that would be on next Monday. His Honor replied that he could not sib next Monday, as he was going away on Tuesday. Mr. Hesketh moved for an order of discharge to be granted to Robert Neal. There was no opposition, and the order was granted. Mr. A. E. Whitaker made application for a similar order for Htury Corning Richmond. The report of the Official Assignee stated that wages amounting to £7 2s 6d were due. The bankrupt, in his affidavit, alleged that this had been paid, that the wages had been paid in goods, but His Honor held this insufficient, and Mr. Whitaker undertaking to give his own cheque for the amount, the order of discharge was granted. Composition.—ln 'he estate of Henry Jackson, a bankrupt, Mr. Buckland moved for an order of the Cjurt, approving of the special resolution passed at a meeting of creditors on the KJtTji of April, agreeing to accept a compositicn. The Court approved of the resolution, and directed the deed to be filed in the Conrt. Adjudication on Petition.—Mr. Dufaur moved for a summons calling on Stephen Brunskill Blar.d to show cause why he should not be adjudicated a bankrupt. The grounds of the application were that Mr. Bland had committed an act of bankruptcy. An execution had been taken out by Mr. W. S. Whitley, on a judgment obtained in the District Court for a sum of £72, and it was returned nulla bona. There was no appearance for Mr. Bland, and the order of adjudication was granted. Public Examination. —Mr, Cave moved "That the public examination of Charles Pye, a bankrupt, be proceeded with." Mr. Buddie appeared for one of the creditors, Mr. Keetley for the bankrupt, and Mr. Cave for the Official Assignee. The debtor was a farmer residing at Pakuranga. Mr. Buddie read the sworn statement made by the bankrupt before the Official Assignee, also his examination at a meeting of creditors, and the debtor acknowledged their correctness. He was then examined by Mr. Buddie as to his alleged losses. Hβ had a large quantity of stacks burnt before he went to England, expecting to get money from his father, He kept no books of account. His debts amounted to £400 odd, and he could not eay how long they had been running. He wenfe to England in February, prior to which he gave a lease of his property to his sons, and gave a bill to. Mr. Buckland for £89, and he fully expected to have sufficient money to pay Mr. Buckland and everyone else, but his father refused to assist him. The debtor was also questioned regarding his other accounts with Mr. Seccombe for beer. In explanation of this item the debtor said that he had entered into contracts, and had to provide beer for the men. Mr. Buddie applied to the Court to exercise Its summary jurisdiction. His Honor asked whether notice had been given to the debtor of the charges to be brought against him? Mr Buddie replied in the negative, and His Honor said he certainly should not exercise the summary jurisdiction of the Court unless the debtor had full notice, and an opportunity of being heard on his own behalf. Mr. Buddie then asked that examination be adjourned. His Honor granted the adjournment until the next sitting of the Court, to be held after his return from the Court of Appeal. Close of Bankruptcy.—Mr. Cave moved on behalf of the Official Assignee that the bankruptcy of G. S. Jakins be declared closed. Tne order was granted. A similar order re George William Owen "was also granted. SAMUKii Jaokson, June. — Mr. Cave moved for an order declaring that the Official Assignee is entitled to the sum of £83 19s, received on the 16th January, 1888, ufter the plaint of the creditor's petitioner, on which the order of adjudication was made by Mr. Henry Hall, of Wellington, solicitor, from the Public Trustee, being taxed costs in the matter of Ingram ex parte King. Mr. Hesketh appeared for Mr. Henry Hall. Mr. Cave opened the case. It appeared that the money was paid to Mr. Hall before Jackson was adjudicated, but subsequent to the filing of the creditors' petition. It was not set up that the respondent had notice of an act of bankruptcy, although an act of bankruptcy had taken place as early as November, and therefore when Mr. Hall seized this money it was not Jackson's money, but that of his creditora. Mr. Heaketh said that at the first blush the matter seemed a simple one, but it was not so, and he should by arguments and authorities show that it must bo dealt with under another section of the Act. There was no dispute as to the facts that Mr. Hall had the authority of Mr. Jackson to act as his agent, that there was no revocation of the authority, and that he had no notice of any act of bankruptcy; and, further, that at the time Mr. Hall obtained this money Jackson owed him £40 over and above that amount. He contended then, on the authority of English oasea, that Mr- Hall was entitled to set off moneys due to him against the claim of the Official Assignee. Mr. Cave said they admitted that Jackson was indebted to Mr. Hall, but what they set up was that at the time Mr. Hall received this money it was the creditors' money, not Jackson's, and he contended that it was not a protected transaction. His Honor said he did not think the cases quoted by Mr. Hesketh were in point, on the grounds that transactions between a solicitor and his agent was not in the nature of mutual credits and debts. What the section of the English Act applied to was business mercantile transactions. He thought the expression of the Privy Council as to the grounds on winch they gave their decision was very strong. It was not on the ground that there was a debt, but that a revocation of the authority had not been made at the time of the bankruptcy. The Supreme Court of Jamaica treated it as being revoked by the act of bankruptcy, but the Lords Justices held that sometimes an aofc of bankruptcy did revoke an authority, and sometimes it did not, and that each case must be dealt with separately on its own merits. The provisions of the Now Zealand Act are, however, very much stronger than the English Act. The absolute vesting in the Assignee of all the debtor's estate from the time an act of bankruptcy is committed made the distinction. The English Act did not vest the estate in the trustee until after adjudication, and it seemed to him that he must hold that by virtue of the act itself the Assignee became entitled to the estate, and the bankrupt was denuded of all right in the property from the date of the act of bankruptcy, therefore the public trustee was indebted not to Jackson, but to the assignee in Jackson's estate, and the right of this third party to claim was revoked by the act of bankruptcy, and that, therefore, the Official Assignee was entitled to this money, £70 19s 3d; costs, £7 7s, were allowed out of the estate. Salk of Book Debts.—Mr. Cave, on behalf of the Official Assignee, applied for permission to sell the book debts in the estate of S. Jackson, jun., by private contract. The order was refused for the present, and the Assignee was left to collect the debts. Mr. Cave also made an application re the book debts in the estate of Thomas Treewheellar, that they be sold by public tender. The debtor was a baker in Hamilton, and the creditors desired to sell the estate as a going concern. The order was granted.