PROCEEDINGS IN BANKRUPTCY.

Poverty Bay Herald, Volume VII, Issue 1052, 25 June 1880, Page 2

PROCEEDINGS IN BANKRUPTCY.

(Before His Honor District Judge Kenny.) Be William Teat.— An application waß made to the Court by Mr. W. L. Rees, on behalf of Robjohns and Irvine, to declare null the Deed of Arrangement between William Teat, the aranging debtor, and the Creditors in the estate, on the grounds of irregularity in the gazetting of the first meeting, which was published only in one newspaper circulated in the district. Mr. Brassey appeared to show cause v, hy the Deed, which was a complete oxecution, should not be Bet aside. Affidavits filed by both sides were read, followed by addresses from CounaoL His Honor said that the facts stated in affidavit produced by Mr. Brassey were nothing to the point. The question was, wore the proceedings regular when the no doe calling the first meeting only appeared in one newspaper, when gazette notices in bankruptcy were required to be published in two or more papers published and circulated in the district. The contention of Mr. Brassey, that there was at that time— but one newspaper (the Herald) circulating in the Poverty Bay district, was an admission that the Act had not been complied with. Mr. Brassey said it was a manifest injustioe that a matter of such importance Bhould be decided on these grounds. The present opposing Creditors had by proxy attended the meeting so called and assented to the Deed of Arrangement. The bankruptcy proceedings were actually annulled by them thus stopping them from claiming that they were irregular. Mr. Rees contended the first meeting was not duly called. That waß allowed to be the case by the affidivit put in by Mr. Brassey. There being no first meeting, any more than if a private one had been called by circular, the whole of the subsequent proceedings must be considered irregular. After a further argument on the point raised by Mr. Brassey of estoppel, Mr. Rees moved that the Deed of Arrangement be delared null. His Honor said that the arguments of Mr. Brassey with reference to the gazette notice calling the first meeting were ingenious, but this was only a portion of the Hawke's Bay District. As to the plea of estoppel, and waiving subsequent proceeding by assenting the Creditors now opposing could not waive what they were not aware of — there being practically no first meeting of creditors. The Registrar, he considered, had made the order for the Deed on insufficient grounds without examining matters outßide of thoße which were brought before him, and without the usual affidivit that the Act had been fully complied with. His Honor declared the proceedings to be irregular, and annulled the Deed of Arrangement, and that the proceedings in bankruptcy continue as if there was no proper first meeting of Creditors. Mr. Brassey gave notice of appeal. An application for costs being made, it was granted, the same to be paid out of the Estate.