BANKRUPT CONTRACTOR

New Zealand Herald, Volume LXI, Issue 18891, 13 December 1924, Page 14

BANKRUPT CONTRACTOR

SUIT OVER STEAM " NAVVY."

CREDITORS AND PENDING CASE.

j j ADJUDICATION ORDERED.

A summons for adjudication in bankruptcy, in which a steam "navvy." purchased for £3200 figured, was dealt with by Mr. Justice Stringer, sitting in bankruptcy in the Supremo Court yesterday, frho Waotu Timber Company, Ltd. (Mr. Anderson) sought nn order of adjudication against Henry Hopper Adams, junr., ©f Hillsborough, contractor. Mr. M. H. Hampton, on behalf of debtor and a number of creditors, opposed the application. Mr. Holmdcn appeared for John Burns and Co,, Ltcif from whom trie debtor had bought the steam "navvy," and Mr. Towlo repre.-entcd G. N. Christian, another creditor.

Mr. Holmdcn said John Burns and Company were creditors to tho extent of £2000, and they did not oppose tho adjudication. Mr. Hampson, who admitted all the formal facts, said that debtor contended there was £2400 owing to him by John Burns ar.d Company. Debtor contracted with the Matamata Town Board in regard to drainage work for a considerable sum. He bought the "navvy" for tho contract, but ho claimed it would not do tho work required and in consequence his contract was rescinded. Ho had instituted an action claiming £2400 damages from John Burns and Company. The creditors' counsel represented desirod an adjournment until tho action was heard in February. His Honor: Who now has the "navvy" ?

Mr. Hampson.: John Burns and Company seized it under their bill of sale, sold it for a nominal sum, and are claimiug as creditors for the balance. His Honor: "What are the assets of the estate ?

Mr. Hampson said that, apart from his claim against John Burns and Company, the only asset debtor had was an equity in- a house, assumed to be worth £200, and a small quantity of timber still at Matamata. "Highly Speculative" Action.

Mr. .Anderson said there were some assets amounting to £300 or £400. Debtor's action against John Burns and Company was a highly speculative one. He understood that it was represented thai the "navvy" would dig to a depth of 16 feet, -.vhereas under Adams' direction it only got down to 12 feet. He was claiming diimages because he could not do the additional four feet. Counsel understood there was a counter-claim for about £1800 againiit Adams. The petitioning creditor saw no reason why an estate that already existed should be spent in that way. If an orde<- for adjudication was made the official assignee would.undoubtedly go into tho merits of debtor's claim, and if he considersd there was good cause of action against John Burns and Company he •would curry it on. His Honor said the' creditors would be required to indemnify if the action was carried on for their benefit. Whatever assets there were would probably bo dissipated in the law suit, if debtor was unsuccessful.

Mr Hampson thought he could safely say there would be no assets unless tho achon was successful; because creditors appreciated that fact they were anxious to give Adams every assistance in furthering the action. The equity was hardly worth considering. Counsel expressed the view that the petitioning creditor was cutting off his nose to spite his face." If Adams succeeded that creditor would get something. Adams had arranged to get outside assistance to carry on the action but he could not K et outside assistance to givo to his creditors.

The Judge's Decision. His Honor: How would it be if I appointed a receiver in the meantime to preserve, the assets? .Mr. Towle: If Adams succeeds it is highly improbable that ho will recover all ther ° " th ° C°Unter--1»1 « A t epos]fc of £200 was paid on the "navvy," and debtor gave John fhJZu nd C Tl" pany a bill * sale fir the balance The notes v.-ere not met and SfflffS M seized the ™*- be necessary in the case of adjournment tota evidence in England on comS fU l ther t f : guraent Uis Honor said »s■*« Ktaffls.fi; 01 mat right. Had John Bums and r« m pany been the petitioning would have afforded good gTound or ' posmg that they intended to prevent he action being proceeded with. That how sua && ■£*■* # -> creditors )££jf**£?% *££«" ,r„ ' unaer the official assignee K;i Honor made an order for adjudication S