BANKRUPT SOLICITOR.

New Zealand Herald, Volume LXVIII, Issue 20969, 4 September 1931, Page 11

BANKRUPT SOLICITOR.

NEW PLYMOUTH FAILURE. DEFICIENCY OF £SOOO. A DISSOLVED PARTNERSHIP. CREDITORS REQUIRE ACCOUNTS. [BY TELEGRAPH. —OWN CORRESPONDENT. 1 NEW PLYMOUTH, Thursday. An estimated deficiency of £5005 wa's the position disclosed in the schedule of George Grey, solicitor, New Plymouth, at the iidjourned meeting of his creditors. In view of the fact, however, that no statement was submitted regarding the accounts of Grey and Grey, in which firm bankrupt was till recently a partner, nor regarding the terms of the recent dissolution of the partnex-ship, the meeting was again adjourned in order to give bankrupt an opportunity of submitting the details required. Bankrupt's statement showed the amount owing to unsecured creditors at £B4BI, and to secured creditors at £9761. Tho estimated value of securities in the hands of secured creditors was £12,600, leaving a surplus of £2839. Included in the assets was this sum of £2839, also mortgages and securities held by bankrupt amounting to £552, and book debts amounting to £BS, a total of £3476. There were eight real estate securities valued at £7OOO, and subject to mortgages of £5640.

A creditor asked whether there was any statement regarding the assets in tho Grey and Grey partnership. Mr. H. R. Billing, who appeared for bankrupt, said he understood the partnership was not an asset, but a liability in the estate. If the matter were gone into it would be found that bankrupt was overdrawn on the partnership. In reply to a question about a mortgage on a Devon Street property, Mr. Billing said it was executed as a second mortgage, but was not registered, and he supposed it became a third mortgage when a finance company's mortgage was registered a3 a second mortgage. Mr. C. McCormich, representing the mortgagee, Mr. 0. H. Knofflock, said the latter's mortgage did not show that it was subject to the finance company's mortgage. He wanted to know whether they were both executed as second mortgages. If that were so, why was it done and why was Mr. Knofflock's mortgage not registered ? Bankrupt: That seems to be a matter for the Law Society to go into. Mr. McCormich: Yes. It seems to be a matter for the society.

Bankrupt: Frankly, I shall be pleased if it is.

Mr. J. C. Nicholson, who appeared for another creditor, brought up the question whether a number of the transactions enumerated in the schedule were not partnership transactions in which Grey and Grey were involved rather than bankrupt himself. For that reason he suggested that the position as indicated by the figures in bankrupt's statement was not necessarily correct.

A motion was passed asking bankrupt to supply a statement showing the assets and liabilities of Grey and Grey prior to the dissolution of the partnership. Finally the official assignee was asked to call the creditors together again when bankrupt's information about the partnership is available for them.