SUPREME COURT.

Dominion, Volume 3, Issue 683, 7 December 1909, Page 5

SUPREME COURT.

\ TOO LITTLE CAPJTAL. ' - Mr. Justice Chapman presided at a sitting of the Supremo Court iu Bankruptcy yesterday. Tho Official Assignee, for whom Mr. von Haast appeared,' move'd to set asido a transaction in connection with the' bunkrupt cstato of Henry William Trotman, confectioner. Mr. Dalziell appeared for A. S. Patcrson and Co., a weditor. > Mr. >on Hanst stated that bankrupt had kept four shops, two in Willis Street, one in Lnmbton Quay,- and another at Potono. As things turned out, ho had insufficient capital, wd had to borrow, having "bitten off more ihan he could crow." Mr Meadowcroft, manager JOT Cadbury and Co., financed him, and was Jiven a bill of sale over tho plant and stock, "hat security was registered, and his credit was affected in consequ6nce. In January last i balance-sheet was made out, showing that ho owed Meadowcroft .£560, and unsecured crodi--iors .£ll7. It was alleged that bankrupt was Jemonstrated with by A. S. Paterson and Co., lor failure to pay an account for goods indented by the firm, and agreeing that he was . overstocked, he handed over &bout ,£l5O worth Df goods to '9ettlo his account. The assignee alleged'that this was an act of fraudulent preference, inasmuch as tho transaction took place within three months of the filing of bankruptcy, and the_ goods were, assets which should have' been' available to ' the general body of creditors. Mr. Dalziell contended that no suggestion of anything improper or morally wrong Jould bo made in regard 'to'the action of either ' party. After hearing evidence, his Honour reserved his decision. 'Mr'. Brown appeared in support of u motion that bankrupt should >be discharged, and the application was granted. His Honour said that in his opinion the transaction with Messrs. Paterson did not reflect upon bankrupt's good faith.

, OTHER BANKKUPTCY CASES. .■The QfiiciaL Assignee made application to kavo..,proceedings in tho caso of Walter B.'Gielon, -commission agent, transferred to Palmerston North. Ho explained that- the debtor re-, sided-half-way between: Feilding and Palmorston.' ;The Court granted the application, .- ..Charles . Petley; .'builder," of . Miramar,- who had. been' adjudicated a bankrupt, moved for his ■ discharge, Mr. Fair 'appearing.; for him. The Official Assignee made no objection, and the discharge was pranted. '. . ■■ , - ' Application for discharge was made by. Alor(tnder Lawson, a bankrupt .'signwriter,-- for „whoni ,Mr.'Fair appeared. ..The discharge was ; granted, on ; tho understanding that. a claim* of J852 by the bankrupt's son would'not bo' pressed. ■ In . the case of John Morris Schapiro, a bankrupt furniture, manufacturer,' application ; was .made. for a .discharge... Mr.Fell, who appeared;, for - the ■ Official Assignee, intimated . 'that; Court":proceedings,-were .. pending,, and consideration of the application was, therefore, postponed until the next bankruptcy sittings.

A MAORI COURT MATTER. , ' Judgment was delivered ■: yesterday by Mr. Justice Chapman- in .the , Recently-heard ■ case, Wiki Tahua v. the JohnsonviUe Town Board/ <Mj. ;Bunny: appeared for plaintiff,. and Mr. Potherick for/ the defendant-board. /The. Court;-: had -been asked to- consider the ■ effect; of . certain ' sections •of ; the Maori, Land Claims Adjustment Act, ,1907, and to decide . whether: compensation .was; payable' to, the/Natives by the Publio .Trustee upon presentation of a valid'order made, by Land Court )udge, under, Section 3 of tho Act: . Another point .was, .whether, Jhe Johnsonville , Town Board-had sufficiently complied with an award ■ of the Compensation "Court by handing "over debentures, .instead of cash. '. ' His Honour decided that the board, by vir-'tuo-Of-Section .39. of- the Act,: hadrriiado-suffi-i cient compliance by handing over : tho debentures,, Tho, Court, held,, also, that tho Public Trustee, ,UMn pr^'iitationt-'bf,-a< '.valid'-order,■ could cash the deWntnres.and: pay, the amount to tho Native olaimants dieted--"; of the Public Trusteo should be paid out of tho fan?,land:the costs of/pla'intiff/.out. of >.the -in- •' tonio.'. r . -•.