The Westport Times TUESDAY, DECEMBER 2, 1884 DISTRICT COURT.

Westport Times, Volume XVIII, Issue 3275, 2 December 1884, Page 2

The Westport Times TUESDAY, DECEMBER 2, 1884 DISTRICT COURT.

(Before His Honor Judge Broad) Friday, November 2>. In re Carmine and Munro. This was a summons to show cause why the payment for certain shares in the United Italy Gold Mining Company, Lycll, made by Carmine to Mr Munro previous to his (plaintiffs) bankruptcy, should not be handed over to the estate. Mr Haseklen appeared on behalf of the Assignee. Mr Moynihan for Mr Munro; After hearing argument from counsel His Honor made an order for the payment of the amount to the estate. Case Stated by Comsent—

On the Ist April, 1884, judgment was given against the bankrupt in the Resident Magistrate's Court, Westport, for £O7 0s (id, at the suit of the Executors of one G. S. Zanetti. On the same day the bankrupt instructed his solicitor to prepare the necessary papers for his bankruptcy. His petition and lists were prepared, and were signed and declared before Mr John Munro, a Justice of the Peace, about ten o'clock p.m. on the same day. Mr Munro was then a creditor of bankrupt in the sum of about £(io. The bankrupt was then the holder of 800 shares in the United Italy Gold-mining Co., Ld., at Lyell. Before the ease of Executors of Zanetti v. Carmine was held, Mr Munro had asked the bankrupt to execute a transfer of the said shares as part payment of a then existing debt due to Munro from bankrupt, promising if he did so he (Munro) would help him on in his business after his bankruptcy took place. At the same time that the bankruptcy petition and lists were signed before Munro the transfer of the shares was signed and Munro handed to the bankrupt a cheque for £2O in payment of the said shares, such being about their market value then, and immediately after the cheque was handed back by the bankrupt to Munro as part payment of bankrupt's indebtedness to Munro. The petition of bankrupt was tiled on the 3rd April and adjudication took place on the 29th April, 1884. No mention was made of 800 shares on bankrupt's lists, nor was Munro's debt reduced by £2O. The transfer of the shares was taken up to Lyell by bankrupt and transfer effected in books of Company on 2nd April. The solicitor for the Deputy Official Assignee gave notice to the Manager of the said United Italy Gold-mining Company in the following form : —" I hereby give you "notice that the transfer from Joseph " Carmine to John Munro of 800 shares "in the United Italy Gold-mining Co., " Ld., dated 29th March, 1884, is fraudu- " lent and void as against the Official " Assignee for the Wellington and Nelson " District under the Bankruptcy Act, " 18S3, and you are hereby required to " hold the said shares as being part of the " estate of the said Joseph Carmine, and " to refuse any transfer of the said shares " without the consent of the said Official " Assignee of the said Wellington and "Nelson District." No further communication took place on the subject of the shares. Munro did not deal with the shares in consequence of this notice, which the Manager of the United Italy Gold-minining Co., Ld., shewed to him, saying the shares were impounded and nothing could be done with them until be had heard from the Assignee. The shares have materially declined in value. Dated this 27th day of November, -°S4. We agree to this statement.—W. R. Haseloen, solicitor for Official Assignee ; Jno. J. Moynihan, solicitor for John Munro.

His Honor, in giving judgment, said that from the facts stated, the question arose, Was the transaction between Munro and the bankrupt fraudulent and void, and further was Munro now the owner of the shares > There appeared to be the clearest intention to prefer Munro, and on the principle stated by Mr Justice Williams in the case of Neil Bros., ir becomes Munro's duty to show that ho acted with perfect bona fides. It appears that the debtor went to Munro, who was a Justice of the Peaee, for the purpose of declaring to his bankruptcy papers, which he had with him ready prepared. At the same time he gave Munro a transfer of the 800 snares, and that transfer was completed, Munro's name being duly entered on the Share Register. I fail to apprehend how a clearer case could arise of a

transaction void against the Assgnee. It was not made weeks be "ore the bankrnptcy, but at the very moment, It does not lie in the mouth of Muuro to say what remedy the Assignee is entitled to, but the Assignee may say what remedy he prefers. It was suggested that this was in the nature of a set-off, the shares being set off against Carmine's debt. If this was so it falls within the principle decided by Mr Justice Williams, and Munro must pay the price to the Assignee. My order will be that Munro do pay to the Deputy Official Assignee the sum of L2O and L 5 ss. costs. In re Carmine (bankruptcy) Mr Moynihan applied that the public examination of the bankrupt be closed. Order made as prayed. Corr v. Carroll.—Mr Moynihan for plaintiff. Claim for £l2B and interest. Judgment for amount clahned and costs.