SUPREME COURT.

Gisborne Times, Volume V, Issue 100, 7 May 1901, Page 2

SUPREME COURT.

• IN BANKRUPTCY. (Before His Honor Mr Justice Conolly.) APPLICATIONS V DISCHARGE^ The application of . 'avid Gordon for discharge was grani therlT being no opposition. In moving the application, Mr Jones, who appeared for the applicant, said the creditors had four years ago recommended the debtor’s discharge being granted, but circumstances had prevented the. application being made until the present time.

In the application of George Pitcaithly Bruce Stewart, Mr L. Rees appeared for applicant, and Mr Nolan for the DeputyOfficial Assignee, who objected to the discharge. N Mr Rees stated that there was reference in the Assignee’s report to debtor not keeping proper books. This was a small bankruptcy, and he submitted that the same books necessary to be kept in a large business would not be necessary in a small business of this kind.

Mr Nolan said that the Assignee asserted that, owing to the absence of books showing his position, it was a case of reckless trading. The books kept were absolutely useless for the purpose of information.

John Coleman, Deputy-Official Assignee, asked what' description of books had been kept by the bankrupt, said there wero two books simply in the form of ledgers charging any person who bought goods with the goods bought, and when thoy were paid off the account he entered it on the other side and ruled it off. Thore was nothing to show the volume of his business, what became of the cash, or who his creditors were. All ho had practically kept was a book showing the list of his debtors. Just prior to his bankruptcy ho appeared to have opened a fresh set of books, a day-book, a cash-book and a ledger. These were opened in November, 1900. He filed in February, 1901. It was impossible to find out from any of the books what debtor’s position was, or to account for his losses. After allowing him invoice prico for his assets, and full amount of book debts, ho was £9O short in his statement. His books at the date of bankruptcy showed £ll6 book debts. The amount realised out of the estate was £162 15s, and the estate was short £312. There might be book debts good for £4O or £SO.

By Mr Rees: The debtor attended in Auckland at the request of the Assignee. He had given witness every information asked for. He expected any man carrying on business, however small, to keep a cash-book. Debtor kept no bank account.

Mr Nolan submitted that, on the evidence, bankrupt’s discharge should not be granted. If reckless trading of this kind were allowed, no creditors would be safe. Bankrupt had only been in business 21years, and had made no attempt to keep his affairs in order. Considering the small time he was in business, the deficiency was very large. Mr Rees submitted that bankrupt met with misfortune in his trading by another store being opened. There was no suggestion of fraud; merely that the books had not been kept. Being situate in a remote township, where there was no bank, he submitted that it was not a case in which the discharge should be withheld. This.was not a flagrant case.

His Honor : It appears to me that this is a most unsatisfactory case. The debtor, in 21 years, in addition to any business on which he did not make a profit, lost about £3OO, and being a single man, and only paying as rent 5s a week, I do not see why there should be any leniency shown, though it is not a case for severity. Failing to keep books is an offence against the Act. Discharge is suspended for six months. IN BANCO. A sitting in Banco was held by His Honor to hear the motions filed by the Assets Company for dismissal of the actions on the ground that the proceedings taken on behalf of the plaintiff Natives have been frivolous aud vexatious, having been before the Court several times already; or, in the alternative, the Company asked to have all the owners joined as plaintiffs, and that they be ordered to find security for costs. Mr DeLautour appeared for the Assets Company in support of the motion, and Mr W. L. Rees appeared for the Natives to oppose it. ) His Honor reserved judgment on the first motion. The second motion was partially heard. The hearing will be continued to-day, when the third motion will also probably be reached. (By Telegraph —Press Association.) Wellington, last night. At the Supreme Court to-day before the Chief Justice, Thomas Irwin, alias Joseph Kerr, and Alexander Stapleton, pleaded guilty to breaking and entering, and weroremanded to enable enquiries to be made. John Gregg, for indecent assault on a girl 13 years of age, was found guilty and remanded for ' sentence. No bill was returned against John Lispensky, charged with indecent assault..