SUPREME COURT.

Evening Star, Volume VIII, Issue 2126, 28 February 1870, Page 2

SUPREME COURT.

IN BANKRUPTCY. (Before Mr Justice Ward.) Rk John Gkaister.—This matter was adjourn-'d tor a fortnight. Rk far 'Yard Whittington.— -Same. Rk Jaimb Tuuhmaulex. —Same. Rk Guaulks NloiionsoK. — Same. Rk '”ii.i,i.\.m and Thomas lirkmgr.— On the application of Mr M'Keav, the deed of arrangement between the bankrupts and their creditors was declared to be completely excel! :cd. Uk Samukt, Gkokoe Danteb. —This was a debtor’s petition for adjudication, which was grant'd. Re imix Rruiins. —The Court gave ju Igme.it h'-rcin. discharging the rule to so aside th.' vesiiug order granted by tne Registrar, wbh eo.-ds. Rk Louts Court. —This was an application for diseb ii'g -. Mr Cook, who appeared lor tlie hinkriqt pointed one that he had secured cr ditors o the amount of L2GGI 5s ; unsecured creditors, L 1513 Gs 9 1 ; and preferential creditors, f.-r r.-ut and wages, LG 15. The secured debts included L 1.914 due to the Bank of Otago, who had held a lull of sale over the furniture in the Provincial Hotel, the putting in force of which had caused the bankrupt to seek the protection of the Court. Under the bill of sale everything he possessed had been sold, and it realised nearly the whole of the amount due to the Bank, There was a second mortgage over some freehold property in the city, which would probably realise a surplus of 1.300 or L4OO. He trusted that the Court would not, under the circumstances, delay the issue of the final order. His Honor observed that there was no opposition ; otherwise he should have delayed the final order for a lengthened period. Where a man de'iberately conveyed his whole property over to a single creditor, leaving unsecured creditors to the amount of some L 1,500, and his property on being realised was not likely to cover more than the secured claim, it was perfectly clear that lie musn have incurred a large p-irt;on of the debts without a reasonable prospect of being able to pay them. Of course it might lie s dd that creditors had been rash in giving him credit, but keeping a large hotel, and baling a large amount of stock at his order and disposition, no doubt that induced the creditors to give him credit. It did not oven appear that he had told any of them that tlie property was under the control of, and actually belonged to, the Bank. However, as there was no opposition, he would merely suspend the order of discharge for two months. Rk Euan cis John, sox.—This was also an application for discharge. Mr Ward for bankrupt; Mr M ‘Keay opposed. It appeared from the examination of the bankrupt that he was a gas-fitter, and for the last six months had been working on the average five days a week, at Ss per day ; up to Christmas he had also been engaged at the theatre at LI per week, and kept two lodgers at LI jwr week each. He had no family. l!is debts amounted to L3S— the largest creditor being a man named Jenkins, who in December last obtained a judgment against him for Ll4, In consequence of press-'re on the part of Jenkins, he sought tlie protection of the Court, paying his solicitor LID, which had been advanced by his employers. iris Honor said it was perfectly clear that Jenkins had been put to unnecessary cost. The bankrupt receiving L 4 per week, should have done his best to pay his creditors ; and not having acted honestly in that respect, his certificate would be suspended for six months. Rk Wikliam Jonx Hkxxixgiiam.—This was also an application for discharge. Mr Maccasey opposed on behalf of Mr Driver, petitioning creditor ; and Mr Cook for himself as a creditor. The bankrupt, in his examination, stated that he sought the protection of the Court in 1564 ; again on the occasion of the stoppage of the iSitn newspaper, and lastly after the conclusion of the trial, Henningham v. Driver. On the first occasion ho paid 20s in the pound. His present liabilities were L 697 Gs Id ; half of which were for law costs. The first item in the schedule, L 174 5s 2d, represented cost incurred in connexion with the case of Henningham v. Driver, and the next item of L2OO represented M r Barton’s costs from the commencement of criminal proceedings in the police court up to the date of the other trial. The costs in connexion with the prosecution an I attachment were about L2BO ; L 230 being the approximate costs in connection with the prosecution He had had no account rendered. He had only paid a few pounds in cash, but ho felt himself liable for the costs. Tiny had nob been included in his present liabilities. Ho was told by Mr Barton they would cost about L3OD ; he had given a bill for L 291) on account. lie had not L 5 beyond the sum he was indebted in when he commenced that action. He dn I not anticipate the costs would he so much. He believed the item of LSO stated in the schedule as “hook debts due as late proprietor of the J'Jvenin<j Star ” was considerably under what was due to him. It was not politic to have collected the debts representing that amount, when he was starting a now newspaper. His assets did not include a policy of life insurance. His life was insured in the Liverpool and London office for LIOOO, since 27th May, ISGS. He had paid L 250 for premiums since that time. The policy was in Mr Cook’s office; it ■was transferred originally to a Mr Musson, who had advanced him L 209 in Eeh., ISG9. In addition, he gave him security over his furniture, kc. The money was to be repaid by weekly instalments through the Savings Rank ; hut that arrangement was broken through by Musson, who on Sept. 9th took possession of a portion of the furniture, and realised to the amount of LIO2 4s Gd, which, together with LB2 10s paid into the .Savings Bank, made LIS4 14s Gd received by him. After tiling his declaration of insolvency, Musson took possession of the balance of the furniture, which realised L 52. Musson pushed him because of the criminal prosecution that was hanging over him. To save expense he agreed to leave Mr Henningham senior in possession. The second mortgage of the life assurance policy was made to Do Carle. It was to secure Ll2O, “ and farther advances.’’ lie actually advanced L 42 15s; but was to ho responsible for Mr Cook’s claim for costs, and for the balance due to Musson, if bankrupt did not pay it. lie was no longer proprietor of the Echo, which was being carried on by Mills, Dick and Co. Ho was giving them gratuitous assistance b cause they had previously assisted him. lie had declined to join in the surrender of his life policy, because Musson had been offered the balance due to him ; and latterly because it had boon suggested that on the

occasion of the transfer hy his wife of property vested in trustees on her behalf, under an anti-nuptial settlement, which included the policy, that latter instrument was not so transferred, lie had been dealing with the policy in the belief it was his, widle it was not so if that suggestion were correct. He was making enquiries. -Mr Macassey submitted that it was a ca.se which required the suspension of the oroer for a lengthened period. He would only point out that trie bill of sale executed in favor of De Carlo was a suspicious security, and was intended to delude pors ms in*o the belief that an advance of Ll‘2o had been made. The hankrunt had embarked in a see ions litigation without being prepared to to meet the consequences of defeat, the only inference to bo drawn from which was that he ha i done so in the hope of being able, by some hick’, chance, to repair his ruined fortunes at the expense of Mr Driver. He aho applied for an ord t under the Moth section, directing the sale of the furniture, which was granted. The b vnkrupt replied to the arguments of Mr Macassey, admitted that he had brought the action against Mr Driver in the hope of repairing his ruined fortune, believing, and being advised, that ho had a good cause of aclion; hut ho never anticipated that the costs would he so great. Had he nor, been circumstanced as ha was, he would not have been so free in granting bills of sale. His Honor said that the bankrupt must join in surrendering his interest in the policy, and if, as lie supposed, it was vested in trustees, it would bo for them to take action. The decision of the court would be given at the next sitting, the bankrupt, in the meantime, to file the necessary statement of accounts.