LOAN DISPUTED

Sun (Auckland), Volume III, Issue 639, 16 April 1929, Page 7

LOAN DISPUTED

REFUND OF £BBO SOUGHT CREDITOR OR SHAREHOLDER Claiming’ £ 880, the balance of a loan of £I,OOO made in March, 1923, Leslie Arthur Cannon, warehouseman, claimed against Thomas Archibald Felton, accountant, as liquidator of Foote Bros., Ltd. The case which began before Mr. Justice Kennedy in the Supreme Court yesterday was continued this morning. Mr. Sellar and Mr. Fiddes appeared for plaintiff and Mr. A. IT. Johnstone and Mr. TJren for defendant. Plaintiff stated he had lent £I,OOO to Foote Bros, when employed by them as a commercial traveller. The company went into voluntary liquidation though plaintiff had been paid ~ l_o of the loan by the liquidator, he sought recovery of the balance of £SBO. .He maintained he was not a shareholder as the shares alleged to have been allotted him were never legallv created, and that he was entitled to rank as an ordinary creditor. The defence was that plaintiff was a shareholder and had accepted the shares on that understanding. A counter-claim for £l2O was entered on the ground that this had been paid to plaintiff in the erroneous belief that he was a creditor of the company whereas he was really a shareholder. Plaintiff said he definitely told the firm he would not become a shareholder. He had lent his money at call. Francis Gore Foote said that in March. 1925. Cannon, with other creditors, agreed to the conversion of his loan money into shares. His Honour reserved judgment.