BANKRUPTCY CASES.

Otago Daily Times, Issue 20256, 15 November 1927, Page 7

BANKRUPTCY CASES.

APPLICATION FOR DISCHARGE. LEGAL POSITION OF TRAINER. (Special ro Daily Tim. ..) CHRISTCHURCH, November 14. The legal position of a trainer came into a case in the Supreme Court to-day when Herbert Kirk M’Dougall, solicitor, applied under the Bankruptcy Act for discharge. Mr Thomas, instructed by Ollivcr, a creditor, opposed the application. Ho said that Olliver about a year ago obtained judgment against M’Dnugall for £250 for wages. His Honor: For wages? Oh, well! Mr Thomas said that the judgment had not been satisfied. It was on account of that debt that M’Dougall was declared bankrupt. His Honor said the assets were shown at £1275, and the debts at £9Ol. Mr A. W. Watters, the official assignee, said that if there was a dividend it would be very small. Amongst the assets were two thoroughbreds and shares in a company. What ’.hey would realise was problematical. Mr Thomas said that Olliver had looked after the horses. The Bankrupt said that Olliver had entered into a partnership with him. Under the Rules of Racing Olliver, as an unregistered trainer, could not legally receive wages, but as an owner—he was a half-owner —he was entitled to train the horses. Bankrupt gave Olliver shares in the company on condition that he stayed for a few months. The partnership was legally terminated. The shares in a picture theatre business were good, and an offer of £SO for them had been declined. Olliver, in order to cause the bankruptcy, swore that he was an unsecured creditor. The shares then .vent into the estate, and Ollivcr lost their value, £250, with interest. His Honor: Is it a fact that a person registered as a partner cannot receive wages as a trainer? Mr Donnelly said that the arrangement was slightly different from the ordinary one between a master and a servant. His Honor: He would be entitled to some of the winnings? The Bankrupt; Fifty per cent. His Honor said that the discussion had not left him quite as hostile as at the opening, but the application would be ordered to stand over until the next sitting of the court. A CONDITIONAL DISCHARGE. (Special to Daily Times.) CHRISTCHURCH, November 14. “ You entered into business and played a game of heads I win tails you lose with your creditors,” Mr Justice Adams said to Frederick William Tucker when Tucker in the Supreme Court to-day applied for his discharge under the Bankruptcy Act, Trig Honor said that Tucker’s assets were £SO, and his liabilities were £770. There was no dividend for the creditors. He entered into business with his son, and lost several hundred pounds. He was then practically insolvent. Tucker said that it was the high interest charged by the moneylenders that had caused his trouble. He had two properties. His Honor said that the bankrupt had properties, but they were heavily mortgaged. He might have paid the equity, but could have done nothing else. “ Don’t you know,” his Honor added, “ that you had no rigHt to begin business and place the whole risk on your creditors? That is what happened.” Mr Watters, the official assignee, said he recommended discharge with suspension for three montths. His Honor: Yes, but the matter is serious. I think, Mr Tucker, that you arc fortunate, but I shall adopt the official assignee’s recommendation and grant your discharge on the condition stated.