LAYMAN'S DOCUMENT

Taranaki Daily News, 19 February 1938, Page 6

LAYMAN'S DOCUMENT

By Telegraph—Press Association.

SUPREME COURT CASE PROOF OF DEBT INVOLVED

Christchurch, Last Night ' Drawn up by a layman and failing in its objective, a mortgage clearance document was ihe main cause of an interesting Supreme Court action this morning, when W. E. Clouston and Co., Blenheim, asked that the xejection of a proof of debt submitted by them to the bankrupt estate of "William Goss, of Christchurch, should be cancelled and the debt stand against the estate. When the bankruptcy occurred in 1931 the applicant company submitted proof of debt for £1,111, that being ihe full amount of the debt (£2,196), less the value of the security over which the applicant held a mortgage. Ihe doeument which caused the official assignee to subsequently reject the proof of debt was drawn up by the applicant company when it was desired to sell the land. The document intended to clear the land only and not to affect the obligation of the bankrupt estate. In effect it cleared the land and the obligation as well. To-day Mr. Justice Northcroft upheld the contention that justice would not be cerved if .the assignee were eompelled to act on what was admittedly a sheer mistake in the wording of the document. He ruled that the proof of debt should be admitted.