DEBT TO FATHER

New Zealand Herald, Volume LXXIII, Issue 22539, 2 October 1936, Page 12

DEBT TO FATHER

BANKRUPTCY CLAIM SON DEFENDS PETITION CREDITOR'S ACTION FAILS [IIY TKLKCmArn —OWN cohkkspondent] PALMKRSTON NORTH, Thursday A judgment of interest was delivered on behalf of Mr. Justice Blair in the Palmcrston North Supreme Court today, in which His Honor declined to declare bankrupt a debtor against whom an order for payment of a debt had been obtained by bis father. The action originated when David Proiise, farmer, of Longburn, obtained judgment for £l3B 18s in the Magistrate's Court at Palmerston North against his son, Oliver Prouse, farmer, of Longburn. Tlio matter had been twice before the Courts, once before the Magistrate's Court, when the magistrate gave judgment in favour of tho debtor, ahd again before the Supreme Court on appeal, when Mr. Justice Ostler said that though lie regretted it, tlio law was such that judgment would bo given against tho debtor. Tho case was returned to the Magistrate's Court to have judgment accordingly entered. David Prouso then petitioned to have Oliver Prouso mado bankrupt and the matter came boforo the registrar in tho absence of the Judge at Palmerston North on July 3, when the debtor, for whom Mr. M. Onglev appeared, opposed tho petition. The registrar adjourned the matter to the next sitting of the Supremo Court. Tho petition eanio beforo Mr. Justice Blair at tho last sitting at Palmerston North. After hearing legal argument His Honor reserved his decision, which was delivered to-day. "1 ain by 110 means satisfied that tho judgment creditor, in seeking an order for adjudication against his son, is acting bona fide," tlio judgment said. "I am quite unable to appreciate what benefit the petitioning creditor hopes to obtain. I can see none.

"1 have verified tho fact that the judgment given by Mr. Justice Ostler on the appeal from tho magistrate's judgment in favour of the debtor was based 011 a technicality, and the merits of the petitioning creditor's claim are all with tho debtor," His Honor added. "The authorities quoted to me by INIr. Onglev show that in a case circumstanced as this is, tho Court may look behind tho debt. Tho petition is dismissed."