IN BANKRUPTCY.

Poverty Bay Standard, Volume I, Issue 103, 9 April 1884, Page 2

IN BANKRUPTCY.

BANK OF N.Z. AND A. PETERS (A DEBTOR) We can cordially endorse the action of the Bank of New Zealand in opposing the debtor’s discharge. The application came before the Registrar, G. L. Greenwood, this day. Mr. Ward represented the Bank, and Mr. Kenny the debtor. The bankrupt was examined at considerable length. In addressing the Registrar Mr. Ward relied (inter alia) upon the debtor’s own evidence that he had kept no proper books of account, and the fact that he had obtained an advance of £lOO in March 1883, from the Bank, upon a wool lien, over 500 sheep and increase, under the lienors charge, depasturing at Kaiteratahi. It transpired in evidence that the debtor had these sheep in March, but in the following November, owing to his own negligence, the sheep mustered only about 182, which were sold by public auction, the bank only receiving some £4O of their original advance. The whole facts elicited showed great negligence on the debtor’s part, but only amounting to constructive fraud. The debtor curiously enough complained that the Bank ought to have pressed him before, and admitted he had never been pressed. Mr. Kenny, on behalf of the debtor, admitted that the bank was perfectly justified in opposing the discharge upon public grounds, as it appeared very extraordinary such a loss of sheep should have occurred in so short a time, but, after some argument, contended that although the debtor had been guilty of negligence, it did not amount to fraud, and that the debtor had unfortunately gone into business transactions which he was not competent to manage. The Registrar decided to grant the debtor’s discharge, but intimated that although the case did not amount to fraud, the debtor had been guilty of negligence, and in the public interests, as well as its own, the Bank were justified in the action they had taken. We have not been able to give more than a few lines, but will comment upon the case in a future issue.