MAGISTRATE'S COURT.

Dominion, Volume 5, Issue 1387, 13 March 1912, Page 3

MAGISTRATE'S COURT.

<, (Ueforo .Mr. W.'Ci. ISidiWl. S,M.) NO BARRIEn. AX IXTKKKSTINd I'OlN'l*. .Mr. Ttiddell, S.M., gave judgment in lln> case which nriiso out of a <'h\ini msido li.v Smith sind Smith, 1,1 d., nil mid colour nierchmils, agniiusl tlm Newtown l'miiting Company. Tim debt (X% lis. !)d.) whs lor Undo goods supplied. .Mr. l'<- •'• l-'itsisililuui appeared lor llii' plHinhlls, and .Mr. J. S. Harloii fur the delciiilants. At llio hearing Ih« debt was admitted, but it was coincided that pmin'.ills lihii no right ul action, because dclcndnnts had agreed Id assign lln'ir oslalo, mid that plaintiffs, by their attendance lit tho nicteing of creditors, nl which the assignment was agreed upon, had assented to the alignment. Judgment was opposed, ulso, by defendant, on tho ground that at a prior nutting of creditors it was decided to Istku n certain course "in the meantime creditors present should tuko no action." His Worship held that this Jailer objection must tail. Authorities showed that »n agreement to stay, proceedings was no bar to action. A simple couvennnt not to sue for a limited time 'was, if brokon, a subject of a cross-action, and not pleadable as a bar to such an action as tho prosent. As to tho second objection, his Worship said that at tho date of the assignment plaintiffs hud commenced these proceedings, and ho thought that tho proceedings should now be controlled by tho conditions contained in. Section 51) of tho Bankruptcy Act, 1508. Sub-section 2of tnat section stated that, upon tho adjudication being advertised, all proceedings to recover any debt provable under tho bankruptcy should be stayed; but tho Court could, on application by any creditor or person interested, allow any proceedings commenced to be continued on such terms and conditions as it thought just. As defendants had admitted owing the aifiouut claimed, his Worship continued, judgment could not bo given in their favour, and a bare judgment for plaintiffs could not prejudice tho estate in any wnv, as it would not mako the claim a preferential one, and further proceedings could not bo taken without leave of tho Court, Judgment was for plaintiffs for the amount claimed (i' 96 lis. Od.), and costs (.E2).