A UNIQUE POSITION

Evening Star, Issue 23680, 13 September 1940, Page 6

A UNIQUE POSITION

MOTION IN BANKRUPTCY SURPLUS FOR WIBOW / ' There were unusual features about a matter that was before His Honour Mr Justice Kennedy in the Supreme Court this morning. This was a notice of motion for an order to approve of the disposal of surplus assets in the estate of William Sutherland, late of Kaka Point, deceased, and it was disclosed that, after a declaration of bankruptcy had been made and the bankrupt had died, tangible assets were discovered, and it was possible to pay over a surplus to the widow, less taxes which were, it was said, particularly heavy. Mr E. J. Anderson, who appeared for the applicant under the motion, the widow, said that this was a motion under section 64 of the Administration Act, 1908, whereby it was sought to have transferred to a widow the surplus assets in the hands of the Official Assignee after his administration of what was a bankrupt estate. Mr Anderson pointed out that the application was an' lunusual one in that what was apparently a bankrupt estate now showed tangible surplus assets. He understood that this was the only case of its kind in the district. His Honour inquired of the assignee (Mr J, M. Adam), as a matter of interest, if this was so, and Mr Adam replied that, so far as his knowledge went, such was the case, and he had not heard of a similar instance in the Dominion. Mr Anderson further pointed out that the matter was ripe for completion on June 7, by which date he had paid all claims of creditors in full, together with 6 per cent, interest thereon, but that he was unable to finally dispose of the matter because he was waiting a demand from the taxing authorities as to the amount to which the estate was liable. This tax, added Mr Anderson, amounted to £26 14s, made up of income tax (£lB 0s 4d), social security tax (£4 14s 9d), national security tax (£3 18s lid), for the period from April 1, 1939, to May 31, 1940, based on the income from the estate amounting to £94. The Official Assignee, in consenting to the order being made, said that, in. his opinion, the position was a unique one. His Honour said that under the circumstances it was proper that an order should be made as moved for, and such order would be made for the transfer of surplus assets to the widow.