BANKRUPTCY PETITION.

New Zealand Herald, Volume LIII, Issue 16205, 15 April 1916, Page 9

BANKRUPTCY PETITION.

OBJECTIONS BY THE DEBTOR,

INTERPRETATION OF THE ACT.

An adjourned hearing of an application for the adjudication as a bankrupt of Benjamin E. Williams (Mr. R. L. Ziman), merchant, of Dargaville, was taken before His Honor Mr. Justice Chapman, at the Supreme Court yesterday. The petitioning creditors were Messrs. Pattisou, and Brooks, builders, of Auckland, for whom Mr. H. P. Richmond appeared. The judgment debt, in respect of which the petition was brought, was for a sum of £311, representing the original claim for work done on the debtor's skating rink, and costs of legal proceedings. Eight mouths prior to the issue of a writ of execution by petitioners the debtor assigned the whole of his assets to trustees for the benefit of creditors, any surplus thereafter to be returned to debtor. The petitioners refused to join in the assignment and instituted proceedings leading to the present petition.

In opposition to the petition, counsel for the debtor urged that the petitioners had not complied with section 35 of the Bankruptcy Act, which required them to give up their securities or have them valued. Again, it was argued that no act of bankruptcy had been committed on the admitted facts. The act of bankruptcy alleged was that a writ of sale had been issued against laud owned by debtor, and the writ had been advertised for five days. As a matter of fact, said counsel, this land was not at the time, and was not now, the property of the debtor. Counsel said the third objection to the petition was that it had been used for oppression, and also to secure an undue advantage by petitioners. . Counsel held that the petition should be dismissed on that account.

Argument was then heard on the first two. objections to the petition. In regard to the first, Mr. Richmond said that a lien under the Wages Protection Act did not come within the strict meaning of tho interpretation clauses of tho Bankruptcy Act. If it did, ho urged that the petitioners should be allowed to amend the petition by estimating the value of their security. His Honor said he would take time to consider his decision in regard to the first two objections. In respect to the third point, that could stand until a decision regarding the first two had been given.