ORDER REFUSED

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

ORDER REFUSED

PASSING ON BIJEDENS COMMENTS BY JUDGE ATTITUDE TOO COMMON "I have no hesitation at all in dismissing this application," said Mr. Justice Fair in the Supremo Court yesterday, when asked to grant discharge from bankruptcy to Mrs. Doris Lillian Braemar. of Auckland. v Referring to this case and to others that had come before him, His Honor condemned the attitude of mind which, he said, seemed to be becoming common, in which people were pre- ( pared to take all the advantages they ( could from a contract, but as soon as things went against them thought they had the right to unload tho burden { on to somebody else. , Mrs. Braemar's application was supported by Mr. Xorris and opposed by Mr. Stewart, who appeared for tho liquidator of British Film Services, Limited. Mr. Stewart said that somo years ago tho debtor's husband was engaged in the flotation of British Film Services, Limited. For his services he was to get £SOO in cash, 1250 shares and a salary' of £IO4O a year for five years from the company. The allegation was that, when Mr. Braemar did not i obtain sufficient capital to cnablo this | company to be floated, he induced his wife to sign for 600 shares in order to raise tho necessary capital. She stated that she had no assets and never had ■ j any assets. "Wife Used as Dummy" "1 submit," said Mr. Stewart, "that j this is one of those cases in which tho j ; husband has used his wife simply as a j i dummy for the purpose of gaining his j ; own ends." I His Honor: That seems very pro- j : bable. Mr. Stewart said that, no doubt had j j the company been successful, the j : shares would have been sold at a profit, 1 but the company was not successful, i Mr. Braemar received a salary of £lOlO for a portion ol the live yours. His Honor: What was the capital of , the company? , I Mr. Stewart: I understand the capi- j tal* was £30,000. _ j His Honor: Did it ever pay a dm- < dead? . Mr Stewart: It paid a dividend in j the first year. Since then it appears | to have cot into difficulties, and was j i finally put into liquidation three years i a ,r o. It survived lor six years. °Mr. Stewart said lie understood the bankrupt had loft lor Sydney with her husband on June -0.

Case for Applicant Mr. Norris said Mr. Braemnr had \ gone there to keep a business appointment. The bankrupt said that about eight or nine years ago this company \yas in course of promotion, and the promoters were anxious that it should go to promotion. j His Honor: All promoters are, I understand. Mr. Norris said that when Mrs. Braemar was persuaded to take up these shares she was assured that the company would be a prosperous one. and that it was extremely unlikely that she 'would ever be called upon. Counsel argued that even supposing she was a dummy for her husband she ought not to be penalised for that. The , company was successful for five years. His Honor's Views

In summarily dismissing the apph- ■ cation for discharge, His Honor said that this lady undertook to pay for these shares and to pay calls upon them and she hold them. "J he company fails, and she says she is unable to pay any part of them," continued T-ilc T-inrirvr* "Hr>r liuslmnd was receiv-

ing over £2O a week during a portion of the time at any rate, and no doubt had other sources of income. I lie wife during that time was no doubt supplied with some money and had some means which she could use. "In any case 1 do not propose." said His Honor, "to encourage the attitude manifest here in two or three applications this morning that because a person has great difficulty in meeting an obligation that he or she has incurred lie should come along without the slightest compunction or expression ol regret and ask to be discharged from his obligations.

Intention o! the Act "It seems nowadays that that attitude is becoming much too common, that persons are prepared to take all the advantages they can gain from a certain purchase or contract they make, but as soon as the matter turns out differently from the way it was expected to", and that person is asked to shoulder the burden, he says, 'I should not be asked to bear that burden at ali. 1 pass it on to someone else.' That attitude of mind is not tho attitude that tlie Bankruptcy Court is established to encourage, nor is it within the provisions of the Bankruptcy Act, which is intended to provide relief to people who make an honest struggle to meet their liabilities, but owing to misfortune or some other causo they find that with the best efforts on their part they are unable to do so."