DEBTORS' RELEASE

New Zealand Herald, Volume LXXV, Issue 23103, 30 July 1938, Page 20

DEBTORS' RELEASE

CONTESTED CASES APPLICATIONS ADJOURNED ACCIDENT DAMAGES SEQUEL FURTHER EXPLANATION WANTED A number of bankruptcy matters were dealt with by Mr. Justice Fair in the Supreme Court yesterday, most of the cases being contested. The application of Thomas .Tames Collinson, of Auckland. insurance agent (Mr. Horrocks), for his discharge -was opposed on behalf of two creditors by Mr. Wheaton. Mr. Wheaton said that in the 12 months prior to adjudication Collinson had spent over £IOOO and be could not account for what he had done with it. ( ounsel submitted that Collinson had committed an offence against the Bankruptcy Act in prefeiring a partnership in which he was concerned. He asked for an adjouinmcnt on behalf of a New Plymouth firm.

Mr. Horrocks said Collinson had been the victim of recent legislation under the Law Reform Act after he had been involved in a motor collision in November, 1936, in which three passengers were injured. A judgment for £bSO was given, against him and he was unable to recover the amount. The petitioning creditor was really the insurance company behind the driver. His Honor: We will assume that. Official Assignee's View Mr. Horrocks said it was well known that an insurance agent's expenses were a great deal heavier than those of the average man. Collinson had had no intention at all in preferring the partner- ; ship in which he was concerned over other creditors. The Official Assignee, Mr. A. W. j .Walters, said this was the first intimation he had had that the principal : creditor regarded that payment as a ! fraudulent preference. He had no oh- I jection to the matter being adjourned ' for a month. His Honor said there were .matters that should be further explained before the case was finally considered, and he adjourned it until August -G. A Bankrupt's Attitude , The application of Albert Charles Candy, formerly of Opotiki, now of Gisborne, farmer, for discharge, was supported by Mr. Bull, who said his client would not consent to judgment for ! £IOO as suggested. It was only the vindictiveness of one particular creditor that had put him in his present position. His Honor said the bankrupt was owing over £2OOO, and he did not seem to be making any attempt to repay to the Mortgage Corporation the £IOOO he had received from it and spent. There was too much of this attitude of men disclaiming liability for money I supplied to them and which they had used for their own purposes. It was not to his credit that the bankrupt should come there apparently without any regrets for what had happened. The official assignee said this was not a case in -which he considered the debtor should get an unconditional order of discharge. ' His Honor said be would adjourn the application until next bankruptcy sitting to give the applicant time to reconsider his attitude. Later in the morning Mr. Bull reported that his client was prepared to consent to judgment for £-50. Discharge was granted on that basis.

Loss in Business In support of the application of Richard Barwell Burton, of Auckland, manager, for discharge, Mr. Bennett said the debts and liabilities amounted to £137, and all this had been paid with the exception of a debt of £3 which had been forgiven. His Honor said that, taking his own and his wife's business as one, Burton had paid only a little over 2s 6d in the pound. He had lost £4500 of other people's money in years.

Mr. Wat tors said this was a case in which he found it very difficult to make any recommendation. His Honor said that the cases of the husband and the wife would be much better considered together. The former •was really responsible for the wife's business. His Honor adjourned the case until next bankruptcy sittings so that the wife's affairs and the position of the husband could' be considered together. As a mark of the Court's disapproval of the carelessness with which the bankrupt had managed his affairs the discharge of James Henry Stringer, of Tokoroa (Mr. Whyte), was suspended for three months. Unconditional discharge from bankruptcy was granted to Arthur lireo, of Jtemuera (Mr. McLiver).