“TOOL OF TRADE”

Timaru Herald, Volume CXXXVII, Issue 19512, 10 June 1933, Page 20

“TOOL OF TRADE”

RULING UNDER BANKRUPTCY LAW. FISHERMAN’S LAUNCH. By Telegraph—Press Association WELLINGTON, June 9. A question of bankruptcy law was answered by Mr Justice MacGregor, in the Supreme Court, in a reserved judgment.

The question was whether Guiseppi Lamacchia, a fisherman, of Island Bay. a bankrupt, was entitled to under Section 121 of the Bankruptcy Act, 1908, to select and retain a fishing launch valued at about £4OO as his own property. His Honour made an order to the effect that the launch formed part of the property of bankrupt passing to the Official Assignee for the benefit of the creditors. Practically bankrupt’s only asset was the fishing launch, which he claimed was one of his “tools of trade,” and which he was entitled to “select and retain as his own property.”

The Official Assignee contended that the launch was not a “tool of trade,” and that even if it were, it could not be selected and retained by bankrupt, as the value in his opinion was considerably over £SO. His Honour said that once it was admitted that the only “tool of trade” in bankrupt’s estate was over “the value in the opinion of the Assignee of £50,” it was manifest that there was no article which bankrupt could “select and retain” as his own property under Section 121. He had grave doubt whether a fishing launch of the type could be held to be a “tool of trade” of bankrupt at all.