SUPREME COURT IN BANKRUPTCY.

Evening Star, Volume VII, Issue 1947, 2 August 1869, Page 2

SUPREME COURT IN BANKRUPTCY.

This Day.

(Before His Honor Mr Justice Ward.) FINAL DISCHARGES.

There being no opposition in the following cases, the usual order of discharge was granted :—Mary Clements, Charles Townsend, and Robert Love The cases of R bert Magrie and James Dunnett were adjourned, by consent, for a week. DECLARATION OF COMPLETE EXECUTION OF A DEED. On the motion of Mr Haggitt, a deed of arrangement between James Kennedy and his creditors was declared to have been duly -xecuted. FINAL EXAMINATIONS. The 16th instant was fixed for the final examination of the following bankrupts James Nelson, William Acton, Martin Dillon, and James M'Kenna. APPOINTMENT OF TRUSTEE. The appointment of Mr Bathgate, as trustee in the estate of James M 'Kenna, was confirmed. Opposed Case. Be John M‘Cubbin. — Mr Ward appeared for the bankrupt ; Mr Stewart opposed on behalf of creditors ; and Mr Kenyon appeared to watch the proceedings on behalf of .Messrs Webb, Russel), and Co., creditors. The bankrupt was examined by Mr Stewart, He said that he was a licensed victualler. He was proprietor of the Otago hotel up to June last ; he sold out to_Mr Jones for L 1,450, which was paid by bills. He could not say wh re that money went to, because be never kept separate books. He had dealt with Webb, Russell an i Co. ever since they started in business, about three years ago. He had also dealt with M‘Clean and Co. He recollected giving a bill of sale over the furniture and stock of the Oriental hotel. He bought that place from Mr Edgar Bastings for about LSOO. The stock was estimated at L2OO, the goodwill LOO, and the furniture a little over L2OO. He paid L 250 cash ; and the balance by two bills of Ll2O each. One of the bills was for three and the other for six months; they wore dated from the date of his entry into the hotel, on the 26th of November last. The L 250 cash paid to Bastings was the proceeds of one of Jones’ bills which he had discounted. The bills paid to Bastings we>e not endorsed, neither was there an agreement that they should be ndorsed. He felt himself in difficulties about throe months after he went into the house—about March. Through being unable to see his books, which were kept by a Mr Baxter, he never understood how he stood ; and, in consequence, acceptances fell due of which he knew nothing. He carried on because he thought he would be able to pay his accounts as they came in, until such time as he receive! the sum nf Ll5O, which he expected from the West Coast, and a sum of L 350 from Melbourne. He valued the property at LI,OOO. When he subsequently found the actual state of things in Melbourne, he felt it his duty to call his creditors together. On the 4th of March last he gave a bill of sale over the stock and furniture of the hotel to Messrs Webb, Russell, and Co., to protect Mr Bastings. He filed his declaration of insolvency on the lOfch of June, and Messrs We'-b, Russell, and Co,, went in r o possession under the bill of sale some few days before. They sold everything. The sale took place some two or three days before the filing of the declaration of insolvency. At the sale, Mr Stavely bought the gas-fittings, stock in the cellar, and some other goods, to the extent of 'about L7O. He asked him to do so. He now managed the business for Mr Stavely, to whom he daily accounted for the takings. There was no understanding that, when he got clear of the Bankruptcy Court, he should enter into possession on his own account again. The first bill to Bastings was met; he had to borrow LSO from Mr Russell to do so. He understood that the I ill of sale was drawn up before the bill became due. He did not know whether the bill was endorsed by Webb, Russell, and Co. ;he did not ask them to do so. The bill of sale was first to have been given to M‘Lean and Ce. It was not done It had been given to Webb, Russell, and Co. ; and .hey refused to give it up. He had wished to avoid giving a bill of sale at all. He wished rather to give it to Russell than to M‘Clean, for he had more confidence in the former. He had had some warehouse warrants, which he had sold to a Mr Levi, to enable him to meet a bill. Ho would have taken up the warrants afterwards, but he found that delivery had been stopped by the owners of the goods. He did not consider it fair to his other creditors to give the bill to Webb, Russell and Co., hut when ent ring into possess'd! he had made an agreement to give a bill of sa e when called Upon to do so. There might have been some reference to endorsement of the bills ; but he never contemplated doing so after giving the bill of sale, in cross-examination he said there muht have been some reference to his giving Bast approved bills. M‘Clean pressed him t) give a bill of sale so as to secure him?elf, beca se Bastings was much indebted to him. The hi 1 of sale was ultimately given to Webb, Russell and Co,, because he thought M ‘Clean was going oat of business. After deducting M'Landress, Hepburn and Co.’s claim, there remained about L 1,300 out of the L 1450. The money was left in their hands and they paid creditors’ claims* He valued the stock, &c., in May last at LSOO. Before Mrs M ‘Cubbin died the receipts averaged from L 8 to L 9 per day ; since that time they had only averaged about L3O per week. Mr John M ‘Clean, wine and spirit merchant ; His examination went to show that Webb, Russell and Co. took up his position in regard to Basting’s bills; that the sale had been a forced one ; and that Mr Russell had premia- d to take no action under the bill of sale, until the creditors had resolved upon some course of action. Mr F. Russell, one of the firm of Webb, Russell, and Co , said that M ‘Cubbin received about LI6OO for the Otago Hotel— L 986 by bills, an i about L6OO ca hj. When Bastings failed some time in January last, his firm became the medium of melting M‘Cubbin’s two bills, which were the only assets. They at once paid 12s 6d in the £to the creditors. By advancing LSO, which was by a renewed bill, M Cubbin avas enabled to meet the first bill; the second was placed in the bank as ayainst the firm, and reUred by them on May 28. Both bills were endorsed by the firm. Irrespective of the trade debt, M ‘Cubbin was indebted to the fitm in the sum of L 272 6s Bd. The net proceeds of the sale under the bill of sale was L 237 16s Bd.

Mr Stewart submitted that the bankrupt’s discharge should be refused on the following grounds That he had, without reasonable cause, delayed the filing of a declaration of insolvency; that he, being a trader, had, with intent to conceal the state of his affairs, omitted to keep prop r books of accounts. He also moved for an order under the 145 th section. The Judge could not say that the bankrupt had made out a clear case f<-r immediate relief. He con-idered that he ought to have filed a declaration of insolvency sooner, and there could be no doubt that he had not kept proper books. Certificate suspended for three months. application for adjudication. & Hugh Muir, —The petitioner was adjudicated a bankrupt, and the first meeting of creditors fixed for the Bth instant.