A MANAGER'S APPEAL

New Zealand Herald, Volume LXIX, Issue 21318, 20 October 1932, Page 14

A MANAGER'S APPEAL

OIL COMPANY'S AFFAIRS CHARGING ORDER SET ASIDE A judgment setting aside a charging order nisi obtained in August agajnjst Harry Clinton McEhvain, company manager (Mr. Northcroft), was issued by Mr, Justice Smith .yesterday. The setting aside of the charging order had been opposed by Mr. A. H. Johnstone and Mr. Gould on behalf of shareholders in Hlie Speedwell Oil Company, "This is a motion to set aside a charging order.nisi obtained ex parte against the defendant McEhvain on August 11, last," said His Honor. "The ground upon which the charging order was obtained was that the defendant was absent from New Zealand with intent to defeat his creditors. It was also suggested that lie was making away with his property. The argument before me has been confined in substance to the allegation that McEhvain was absent from New Zealand with intent to defeat his creditors. "The affidavits filed for the plaintiffs raise grounds for suspicion, but 1 am satisfied that the proof must be carried beyond that stage. .Absence, from New Zealand with intent to defeat creditors is not only a ground for obtaining a charging oi'der before judgment, but it is also equivalent to an act of bankruptcy.' 1 think that 1 cannot arrive at a conclusion of that kind upon the present evidence. "Furthermore, having regard more particularly to Dr. E.'- Moore's affidavit as to McElwain's state of health, and t-p Mr W. D. Holgate's affidavit as to the payment of six months' rent in advance by the defendant to secure the retention of .his flat, I do not think that u sufficient case litis been made for the trial of an issue as to the intention of 1 lie defendant when absent from New Zealand. An order is made setting aside the charging order nisi, with £7 7s costs and disbursements, to be paid by the plaintiffs to the defendant."