SUPREME COURT;—This Day.

Auckland Star, Volume VI, Issue 1699, 29 July 1875, Page 2

SUPREME COURT;—This Day.

IN BANKRUPTCY.

(Before His Honor Mr Justice Gillies.) He Samuel Brown.

Mr Hughes appeared for the bankrupt, and made an application for an order of the Court declaring a deed of arrangement completely executed.

His Honor, having elicited from Mr Hughes some explanation of an apparent informality in the deed, granted the order.

He Jas. John- Hanley. Mr Rees appeared for the bankrupt and Mr Meyer represented Messrs Barnett and Levy, opposing creditors.

Bankrupt came up for his final examination and discharge. He was described as a ginger beer and soda-water manufacturer of Newton. The report shewed a very faulty system of accounts had been kept, and there were several discrepancies. In December last the liabilities amounted to £305 17s, and the assets, £32 83 6d, showing

a deficiency of £273 8s 6d. It appeared that the bankrupt had, since his insolvency, sold a lemonade machine tor Xio and converted the proceeds to his own use. He believed ho had a right to do this as the Act save him permission to retain tools and implements of trade' to the extent of £25 He had paid part of the proceeds to his lawyer and lived upon the rest since the 24th of May. . , Mr Meyer asked the Court to prevent the bankrupt passing his last examination till he had rendered the money into the hands of the trustee, who had warned him that he was acting against the Jaw. His Honor said the bankrupt's statement was quite clear, and eaid there was no reason for his declaring that he had nob passed his examination. Mr Kets applied that the bankrupt be discharged. He quoted the 136 th section of the Act to show that he was justified m his conduct in regard to the machine. Mr Meyer left the matter in the hands of the Court. , , His Honor said that the bankrupt had clear! y come within the provisions of toe 4th sub-section of the 120 th clause of the Act in carrying on his business for six months after he knew that he was hopelessly insolvent. Ie waa no answer for Mr Rees to say it was the creditors fault for supplying him with goods. His conduct as to the machine was exceedingly reprehensible. Even if the Act allowed him to retain the machine he had no business to act in deiiance of the expressed instruction of the trustee. The mode in which the machine was disposed of, and the use to which the money was put showed that it had not been excepted in the way contemplated by the Act, which intended that any tools or implements of trade reserved should "be used for the. support of his family. As he had kept his books so badly, and had contravened the Act in other ways, his Honor said he felt bound to suspend bankrupt's certificate for twelve months. Be Kdward Hake.

Mr Thorne made an application in this cast;, for an order declaring a deed of arrangement completely executed. The order was granted. Tie Nathan L. Josephs.

This case, in which the bankrupt was a storekeeper at Hamilton, had been remanded for the purpose of allowing a more explicit statement of accounts being filed. The supplementary report was read, but owing i;o the high winds rattling in the windows of the Court.the particulars were inaudible.

Mr Kees, who appeared for the bankrupt, opplUd that the report be declared satisfactory, and the examination be allowed to proceed.

Mr Meyer contended that the order of the Conrt had not been strictiy carried out, and gave illustrations. His Honor coincided in Mr Meyer's opinion, buf, while he thought the accounts highly unsatisfactory, did not see anychanco of their being improved. Bankrupt then swore, in examination by Mr Kees, that he had filed a true and correct statement of his afFairfi.

He was then cross-examined at some length by Mr Meyer.