RESIDENT MAGISTRATES’ COURT

Temuka Leader, Issue 2483, 30 March 1893, Page 4

RESIDENT MAGISTRATES’ COURT

Temuka—Tuesday, March 28, 1893. [Before C. A. Wray, Esq., R.M.J PROHIBITION ORDER. On his own application, through his solicitor, Mr Raymond, a prohibition order for 12 months was issued against a resident, to be applicable in respect of the Temuka and part of the Levels Licensing Districts (the Arowhenua Hotel.) CIVIL CASES. D. Tayor v. T. Cheyne Farnie. Mr Salmond for plaiutilf, and Mr Wilson Smith for defendant. The evidence in this case was heard at the last sitting of the Court, His Worship now gave judgment as follows : The defendant is a bankrupt, whose discharge has been withheld by the Court, pending the payment of 10s in the £to his creditors. The present action is on a promissory note, given since the bankruptcy, and I find on the facts adduced was given for a debt incurred before the bankruptcy. On the authority of Jakeman & Cook, (4 En. Div. 26,) if the debtor had received his discharge, and in consideration of further credit given the note he would bo liable. The question is would the same result follow in the present case, where the discharge has not been granted. In the case quoted (Jakeman v. Cook,) Kelly, C. 8., remarks “ Another object of the Bankruptcy Acts is to prevent frauds by the debtor in giving an undue preference to one creditor, and promising to pay him to the prejudice of the general body of creditors,” and in Pollock on Contracts, 638 (11th Edition) “ The principle on which the Bankrupt Acts are founded is, that the property of the debtor shall be divided rateably amongst his creditors, and therefore any agreement between a Bankrupt and one of his creditors, the object of which is to secure to the latter a preference on the future effects of the debtor is void, as a fraud on the other creditors.” Moreover, by our own statute (Bankruptcy Act 1883, section 57 and 72,) all the property of the bankrupt, until he has received his discharge, is vested absolutely in the Official Assignee. Judgment will therefore be for defendant with coats and solicitor’s fee, £2 2s.