BANKRUPTCY CASE

New Zealand Times, Volume XXXVI, Issue 8181, 24 July 1912, Page 4

BANKRUPTCY CASE

RESERVED'JUDGMENT GIVEN.

rEESi ASSOCIATION.. PALMERSTON, July 23. Mr Justice Cooper s judgment in the Pawsou bankrujAoy are now available. Tne bankrupt is Edwin Pawsou, eawnriller, of Dannevirke and Uhakune. There has been much litigation in connection with this bankruptcy, and some interesting developments. In these particular cases Mrs .Munro sought to have her name substituted in a proof of debt for Grant and Riley, Ohakune, blacksmiths, who were owed Xol 12s. Prior to hie bankruptcy Pawson transferred his properties to E. G. and J. Ingley, and later this transaction was voided ■ as fraudulent, the property providing more than sunicient to pay creditors in full. While this action was penning Mrs Munro employed Joseph ingley to secure a transfer of creditors' debts to her, so that ho could exercise their rights to prevent action against the lugleys going to trial, Paweon's transfer of these properties to the ingleys being a scheme to prevent his properties being realised. Ingley told Grant ho was acting for Mrs Munro, and offered him 7s Gd in the .£l, telling him that 12s 6d would be paid later on. Mrs Munro, however, had not supplied ingley with the funds, and he gave Grant and Duncan Johnstone a promissofT' note for 7s Gd, which was dishonored. Grant and Riley and Johnstone had received nothing but worthless paper. ills Honor held that their proofs of debt must stand, and Mrs Munro’s application be dismissed, with costs. Mr P. B. i'itzherbert, solicitor, who had actually received 7s Cd in the -Cl from Mrs Munro, and given her receipt in full for his claim on Pawson's estate, now asked that his claim in the estate be reinstated, on the ground of franuulent representation by Mrs Munro. His Donor found it impossible to decide on the affidavits of I itzherbert and Mrs Munro, and directed that the case JC heard by a jury of five.