INTERESTING BANKRUPTCY CASE

Ashburton Guardian, Volume VII, Issue 1830, 2 May 1888, Page 3

INTERESTING BANKRUPTCY CASE

(PER PRESS ASSOCIATION.) i Dunedin, May 1. Judgment was given by Mr Justice Williams to-day m a case of Cox v Duncan, whioh was a pucu'.iar one. The question was whether, under the Debtors and Creditors Act, 1876, a simple contraot debt due by a bankrupt which had been contracted more than six years before the bankruptcy, {and an action upon which the Statute of Limitations could therefore have been successfully pteaded, was released by the order of discharge. Cox had refrained from putting m proof of debt, as more tban blx years had elapsed, but Duncan had afterwards made a payment on acoount of this. When brought before the jury they deoided that it revived the original debt. The Judge now deoided tbat a proof oan ba made under that section 75 for a doubtful or disputed debt. If such proof is made, and is rojected. the debt m one sense is not provable under the bankruptcy, and yet there cm be no doubt that the bankrupt is released from It by the order of discharge, and oould plead his discharge to an action on It, so if a creditor refrains from proving In respect of suoh debt the bankrupt Is released. All debts m Bhort contracted by tbe debtor before the bankruptcy are by seotlon 75 subjects of proof under a bankruptcy. Whether the creditor will be able to make out to satisfaction of the trustee that he Is entitled to recover ln the case of any particular debt la lm* material, for whether he does or not such debt will be provable under tbe bankruptcy within the meaning of seotlon 186, and released by the order of discharge Judgment was given for the de* fendant with costs.