THE BANKRUPTCY ACT.

Evening Star, Issue 6724, 5 October 1885, Page 2

THE BANKRUPTCY ACT.

At yesterday's sitting of the Supreme Court in Bankruptcy an important application was made by Mr Cave on behalf of tho Official Assignee for the advice, opinion, and direction of the Court under the following circumstances: —Agnes Watson, a boardhouse keeper, was recently adjudicated a bankrupt on her own petition, being described therein as a widow. Subsequently, upon examination before the Official Assignee, it transpired that the debtor's husband left New Zealand some four years since, taking with him tho sum of LSOO for the ostensible object of purchasing a ship for Messrs Stone Bros. He wrote to his wife from San Francisco, saying he intended to proceed to Liverpool for the purpose stated ; since which he has not been heard of by the debtor, but she has no reason to believe him to be deadJust prior to the bankruptcy the debtor's landlord levied a distress for rent, under which the furniture and effects in the debtor's house (some of which had been acquired since the debtor's husband left her) were sold, realising some Ll4 or Lls over and above the rent and oxpenses of distress and sale. This sum the landlord had paid over to the Official Assignee. It was, however, claimed by Mr S. Cohen by virtue of a bill of sale given to him by the debtor in or about November last. The Official Assignee now asked for directions as to the disposition of this money. Mr Forward, on behalf of the bill of sale holder, submitted that although the bankrupt was a married woman, she might, undsr the circumstances of her desertion, give a valid bill of sale, or at all events, of that portion of the furniture which had been purchased since the desertion, and cited various cases in support of his contention. His Honor ruled that the debtor, being a married woman, was not competent to give a bill of sale; that the goods, subject to the landlord's claim for rent, were in the order and disposition of the bankrupt at the time of the bankruptcy ; and consequently that Mr Cohen's claim to the money could not be allowed. He declined to express an opinion upon the facts, as stated, whether or not tho crditors were entitled to the money.—Auckland 'Star,'2sth ult.