INTERESTING BANKRUPTCY CASE.

New Zealand Mail, Issue 787, 1 April 1887, Page 22

INTERESTING BANKRUPTCY CASE.

(UNITED PRESS ASSOCIATION.) Auckland, March 30.

A singular case was heard to-day before the Supreme Court. It arose out of an aotion brought by the Official Assignee in bankruptcy against L. D. Nathan and Co. for the recovery of £235 paid to the firm by Alexander Brown prior to his bankruptcy. It appears that in November, 1885, Brown bought the stock-in-trade and lease of premises cf Beehan and Co., and paid part cash, part in twelve bills, one to be met monthly. In the following March he disposed of his stock, and paid all his creditors except Beehan and Co., and after his departure was adjudicated a bankrupt. In the meantime he had started a business in Wagga Wagga, New South Wales, but hearing he had been adjudicated a bankrupt he returned to /New Zealand to fight the case, and on his arriva

-<afc Napier he was arrested ana subsequently sentenced to six months lmpraoßment for fraudulent bankruptcy. The present action vrta brought as a test -case by the Official Assignee, as the ruling would apply ‘<>°ther creditors whobad ieceived payment. Judgment went for the plaintiff, with coats 10s. The result'of the action will be that a sum of £770 will probably fall into the Assignee’s hands for distribution pro rata affiong the whole of the creditors in the estate.