RIGHTS OF A BANKRUPT

Taranaki Daily News, 6 April 1932, Page 7

RIGHTS OF A BANKRUPT

RETENTION OF “TOOLS OF TRADE.”

COURT RESERVES DECISION.

By Telegraph.—Press Association. Wellington, April 5. Decision -was reserved by Mr. Justice ' Ostler in the Supreme Court yesterday morning, after hearing legal argument on a, motion asking for an order to entitle a bankrupt to the furniture and tools of trade in a confectionery business he conducted at the time he was adjudged bankrupt. The claim was made . by James Joseph McMahon, driver, Wellington, and was opposed by the official assignee in bankruptcy. Plaintiff claimed the right to select and retain- as his own property a specified list of chattels and effects, which were stated to be under the value- of £5O, on the ground that they comprised entirely tools of trade, furniture and household effects within the meaning of the Bankruptcy Act. This claim the Official Assignee declined. The chattels and effects included a soda fountain, cash register, show case, glasses,_ trays, confectionery jars, counters, shelving and sundry fittings in the window. Counsel for bankrupt said that McMahon was a carrier, and in addition was conducting a small confectionery business in Molesworth Street at the • time he went bankrupt. The articles claimed were the articles in the shop at the time of his failure, and it was submitted, that bankrupt was entitled to them. The- Official Assignee, however, took the opposite view. Counsel submitted that the goods were tools of trade and that as such McMahon

was entitled to them. It was explained by counsel for the Official Assignee that the goods in question had been sold for £2O. He admitted the articles were used in connection with the confectionery business, but the real trade of bankrupt was that of a driver. The selling of confectionery was not a trade. Even if it were counsel claimed that the articles were not tools of trade.