IMPORTANT DECISION IN A BANKRUPTCY CASE.

Kumara Times, Issue 1054, 16 February 1880, Page 4

IMPORTANT DECISION IN A BANKRUPTCY CASE.

In dealing with a case in bankruptcy at the Supreme Court Auckland on the 2] at January, Judge Gillies said : I have something to say with regard to this case, and with regard to others ; and, in delivering it, I would express my pleasure that there is such a large attendance of the profession. I see that this person and others have in their statements declared that their assets are "nil" My opinion, after carefully considering the Debtors and Creditors Act Jb this, that the Act was never intended to apply to cases where the.debtors had no assets. The whole machinery of the Act is designed to provide not only relief for the debtor, but an equal division of his estate amongst his creditors. When there are no assets, it is simply a solemn farce to appoint a trustee and to call a meeting ,of creditors. When there is nothing to effect there is no reason whatever for a person in such a position coming to Court for relief, fie is protected by law ; no can gain an advantage over another, and therefore there is no leason for coming to this Court for relief against debts from which the law relieves the debtor most thoroughly by protecting him against imprisonment. In thpse circumstances I am clearly of opinion that the Act does not apply. Although I dot no on the present occasion act upon that opinion, I will in future. My previous practice I think was erroneous.