FULL COURT JUDGMENT

Sun (Auckland), Volume 1, Issue 40, 10 May 1927, Page 9

FULL COURT JUDGMENT

COMPANY IN LIQUIDATION ALLOCATION OF CREDIT C From. Our Own Correspondent .) HAMILTON, To-day. Judgment of the Full Court which sat at Auckland, consisting of Justices Sim, Stringer and Herdman, has been delivered in the appeal case of the Metal Stores, Ltd., a private company now in liquidation, in which James Joll, one of the shareholders, proved indebtedness £998 19s lOd. It appears from the company’s books that Joll was a creditor for that amount but the liquidator claims that Joll, as one of the shareholders, is indebted to the company for a larger amount for calls on shares, and that his proof cannot be allowed. The court was asked to determine whether or not the actual position of Joll was as the liquidator claimed. The judgment of the court states that the answer depends on the view taken of the dealings in connection with the Victoria Street property in Hamilton, a section of land owned by Joll and his brother before the incorporation of the company, to which they agreed to sell it for £2,000, the company undertaking to pay the existing mortgage of £1,350 and crediting each of the vendors with £325 in its books. There were then three shareholders, each holding 1,250 shares in the company. After going into the points of the case, the judgment says the court thinks that James Joll is not entitled to credit for any part of the £1,170 credited to his call account, and his claim in liquidation must be disallowed.

The parties are to pay their own costs of the proceedings.