FAILURE OF TEA ROOMS

Otago Daily Times, Issue 22904, 11 June 1936, Page 3

FAILURE OF TEA ROOMS

WOMAN ADJUDGED BANKRUPT

An order adjudicating Jane Selina Daphne Stott, a tea-room proprietress, formerly of Gore, a bankrupt was made by Mr Justice Kennedy in the Supreme Court yesterday morning. The petitioning creditor was J. Rattray and Sons, Ltd., for whom Mr E. J. Anderson appeared. John T. Dawson, assistant secretary for Messrs J. Rattray and Sons, Ltd., said the company obtained judgment against Miss Stott in the Magistrate’s Court at Gore on January 27 for £IBO •Is. A payment of £75 18s (id was made on account of the judgment, and £ll2 15a Od was still owing. The company gave instructions for the issue of a bankruptcy notice, but nothing further had been paid. Ethelbert C. Smith, solicitor, of Gore, said he had acted as solicitor for the petitioning creditor, who held no security for the debt. Witness had personally served the bankruptcy notice on the debtor in Dunedin.

His Honor (to the debtor): There has been proved against you indebtedness unsatisfied and the commission of an act of bankruptcy.' Unless you show me some reason by evidence or by pointing out some matter to me, it will be my duty to make an order of adjudication against you.

Miss Stott stated in evidence that when her business in Gore started to fail she had an opportunity to sell it, and she thought the proceeds of the sale would be sufficient to pay everyone. The proceeds, however, were below what she had expected. They were handed over to her solicitors. She thought she was doing her best. She owned no property whatever.

His Honor (to Mr Anderson): Do you accept the position that she has no property? I am not bound to make an order.

Mr Anderson replied that there were certain matters which were not satisfactory to a committee of the creditors in Gore. There was the question of certain preferential payments, which had largely brought about the petition. The general body of creditors felt that the debtor’s affairs should be investigated. The witness Smith, recalled, said that what had brought the present proceedings was a statement that at the time the debtor sold her business she had made payments in full to two creditors, one of whom was alleged to have received a substantial sum of over £SO. It also seemed that the creditors were not satisfied about the valuation of the business when it was sold, and desired that it should be investigated. The creditors were further of opinion that Miss Stott had property, judging by the returns from the business. Those were the reasons why the creditors had taken the present action. His Honor then made the order as requested.