BANKRUPT'S AFFAIRS.

New Zealand Herald, Volume LXIX, Issue 21170, 30 April 1932, Page 15

BANKRUPT'S AFFAIRS.

CASE OF A SALESMAN.

APPLICATION FOR DISCHARGE.

JUDGE adjourns proceedings

The motion of Robert Archer Cleland, of Onehunga, salesman, for discharge .from bankruptcy was opposed yesterday by Trucks. Ltd., in liquidation. The case was heard bv Mr. Justice Herdman jn the Supreme Court. 0„ looking over the papers. His Honor remarked that the position did not appear very satisfactory. Counsel for the bankrupt said Cleland had been employed by Trucks, Ltd., and in the last year of his employment lie was induced by /(lie directors to take up 500 shares in the company, like most of the other employees, 'llie company must {hen have been in an involved position and within a year went into liquidation. Asked by His Honor how much Cle land had paid for a motor-car he purchased from 1 rucks, Ltd., counsel said the company appropriated about £l4O

that Cleland had to his credit. Cleland / eaid he never consented to the appropria tion. Hie bankrupt had been running an amusement company through NewZealand, a troupe mostly of children from Australia called the Sunbeams. He lost about £IOOO oyer this and his father, who had guaranteed his bank account, had to suffer the. loss. All the creditors were sympathetic except Trucks, Ltd. The official assignee said Cleland had not disclosed as an asset a motor-car he had, but bankrupt said the car was owned by a lady who purchased il with her own money. His Honor said the Crown solicitor and others did not agree with that. Cleland did not seem to have been very straightforward: He thought the case would have to go a little further before he could grant a discharge. Counsel opposing discharge said the facts were distinctly unsatisfactory so far as the liquidator was concerned. When Cleland bought the first car from the company he was £279 in debt to it. He did not pay cash for it and counsel's instructions were that he disposed of it and received money or assets for it. Another car was purchased by Cleland from the company in May, 1929, and payment was made by cheque duiwn on an Auckland solicitor. Cleland then purported to sell the car to the Automobile Finance Company and they hired it to a woman. She gave promissory notes, which were all endorsed by Cleland. Thirteen days before the last payment- of the promissory notes was due, Cleland v signed what purported to be a customary hire-purchase agreement between himself as owner and this woman as conditional purchaser. Then he resigned his interest in Uiat car to the Automobile Finance Company and got an advance of £250. The car was destroyed by fire eailv in December and thev did not know where

they v.ere. His Honor: Was it insured? Counsel: Yes, it was insured, but the insurance company will not pay. His Honor: Why not ? Counsel: Because of the doubt as to

the. true owner. His Honor said it was obvious that it- would be undesirable to grant the application at present. He adjourned the application for three months.