DEEDS OF ASSIGNMENT.

Marlborough Daily Times, Volume II, Issue 138, 16 July 1880, Page 3 (Supplement)

DEEDS OF ASSIGNMENT.

IMPORTANT JUDGMENT. At the R.M. Court, Wellington, on Monday last, Mr Shaw, R.M., delivered judgment in the case of Cemino and Burke v. Elliott, an action brought by plaintiffs as trustees under a deed of settlement for the recovery of £l3O unpaid rent, under a lease from plaintiffs to one B. Newman, of whom the defendant is the assignee. Judgment was given for the amount claimed, with costs. The Court was asked to decide whether a trustee under a deed of assign ment vnder the provisions of the Debtors and Creditors Act of 1870, is, or is not, in the same position as a trustee in bankruptcy. It was contended that except where otherwise expressly provided the statutory power could be, as it were, incorporated by implication into a deed of assignment by virtue of section 140 of the Act. The Magistrate was of opinion that a wide and clear distinction exists between the positions of a trustee in bankruptcy and a trustee under a deed of arrangement, and that this distinction was fatal to the defendant’s contention. The former he held to be in the first instance an officer of the Court, in whom all the property of the debtor vests of necessity. The latter he described a volunteer, with whom lay the task, whether the creditors associated with him would or would not accept the assignment of the debtor’s property. In addition, they could accept the whole or part, hut when such election had been made, the Magistrate failed to see upon what principle of law or equity relief could be sought from the operation of their own act. There was nothing to distinguish the present case from White v. Hurst, reported in 40 Law Journal, E 23; and the defendant having executed the deed of assignment ,was liable to the lessor or assignee. In conclusion his Worship thought it well that the attention of the mercantile classes should be directed to the fact that much more caution and circumspection should he exercised in the execution of deeds of assignment under the bankruptcy laws. — Post.