Bankruptcy Law.

Hokitika Guardian, 19 April 1922, Page 4

Bankruptcy Law.

an important principle. GISBORNE, April V2. | Mr Barton, S.M., as registrar of the Supreme Court today dismissed a petition of Hatrick and Sons, W • - ga.nui. to declare A.M. I*™ a-'d Sons, motor mercliants, bankrup t • In the course of the proceedings it I was stated that Lewis and Sons show- ! ed liabilities of £47,000 and assets o i £41,000 an alleged deficiency » i £6(}Oo. Recently Lewis and Sons as- ! signed their estate and the trustees ' an-anged for the sale of the assets per medium of an expert salesman. Tt i wa t submitted in support of the peti- ! tion that a letter to the creditors contftineil notice of the suspension of the ; payment of debts as well as notice of | assignment. ' The registrar said a most important i principle in bankruptcy law was inI volved, which did not seem to have been before the courts previously. The quesion was: As the petition alleged an act of bankruptcy other than the assignment deed, could the court weigh the relative advantages of I winding up under the deed in question or in bankruptcy? He held that, following a judgment of Mr Justice Reed it would he better, having regard to the large stocks on hand, to have the estate wound up by an expert, rather than through the medium of the bankruptcy court. Costs ten guineas, and expenses were j given nrrninst the petitioner.