BANKRUPTCY LAW

Otago Daily Times, Issue 21976, 10 June 1933, Page 8

BANKRUPTCY LAW

RETENTION OF “TOOL OF ' TRADE ” DECISION OF SUPREME COURT. (Per United Press Association.) WELLINGTON, June 9. A question of bankruptcy law was answered by Mr Justice MacGregor in the Supreme Court to-day in a reserved judgment. Tlie question was whether Guiseppi Lamaccliia, a fisherman, of Island Bay, a bankrupt, was entitled, under Section 121 of the Bankruptcy Act, 1908, to select and retain a fishing launch valued at about £4OO as his own property. His Honor made an order to the effect that the launch formed part of the property of the bankrupt passing to the Official Assignee for the benefit of the creditors. Practically the bankrupt’s only asset was the fishing launch which he claimed was one of his “tools of trade” and which he was entitled to “ select and retain as his own property.” The Official Assignee contended that the launch was not “ a tool of trade ” and that even if it were it could not be selected and retained by the bankrupt as the value in his opinion was considerably over £SO. His Honor said that once it was admitted that the only “tool of trade” in the bankrupt’s estate was over the value, in the opinion of the assignee, of £SO, it was manifest that there was no article which the bankrupt could “ select and retain ” as his own property under Section 121. He had grave doubts whether a fishing launch of this type could be held to be a “a tool of trade” of the bankrupt at all.