SEQUEL TO BANKRUPTCY.

New Zealand Herald, Volume LXVI, Issue 20365, 20 September 1929, Page 9

SEQUEL TO BANKRUPTCY.

CREDITOR'S CLAIM DISPUTED*

LODGING OF PROOF OF DEBT,

[BS TELEGRAPH.—OWN COREESPOS'DEOT. ]

HAMILTON, -Thursday.

The action of the official ; assignee in rejecting, a., proof of debt submitted by Dominion Securities, Limited (Mr. P. B. Cooke), in the,bankrupt estate 'of William Duncan, • farmer,- Hamilton, was- questioned in the Hamilton Supreme Court to-day, before Mr. "Justice- Blair.'-T .. Air. .Cooke said when Duncan was adjudicated bankrupt Dominion Securities, Limited, lodged a proof of debt claiming the balance due under an .agreement ,to pay sails for shares in the company to the value of £IOO9 ..When thfi proof was lodged no mention was made 'that, the company claimed a lien on the ■ shares under the company's articles of association, which operated as security. At the first meeting of creditors on May 2, 1929, it was claimed that the shares held by Duncan in Dominion Securities, Limited, must be treated as fully paid up. Immediately after the meeting the assignee was informed that the company claimed a lien. . . . .., . Lengthy negotiations took place regarding the realisation of the assets, and whether or not the shares were, fully paid up. Eventually the company lodged an amended proof claiming security, and the assignee rejected this proof in order to bring' the matter before the Court to determine whether the amendment was. in order and' whether the shares were fully paid up or not. - i •; -. _ The company now asked tho Coutt to reverse the action of. the assignee in rejecting the .proof of debt and to declare that the shares were only paid up to the value of 13s 4d each, ■ V ■ * . Mr. -P. :H, Watts, -•'•for. the -official assignee,' contended that the official assignee rightly rejected the'proof, of debt as that of an unsecured creditor, that the amendment to the claim was made too late, and that the shares should; be regarded as being fully paid up; .• After , hearing lengthy legal, argument on the points raised His Honor reserved his decision. '. ' ..' '1