A PROMISSORY NOTE AND BANKRUPTCY

Sun (Auckland), Volume 1, Issue 96, 14 July 1927, Page 1

A PROMISSORY NOTE AND BANKRUPTCY

TROUBLE WITH PARTNER “There is nothing against this man, and he has entered into an unfortunate contract," said the Official Assignee, Mr. G.N. Morris, concluding his examination of Noel Adamson (Mr. W. W. Meek), a bankrupt carpenter, who met his creditors this morning. Bankrupt’s financial schedule showed a deficiency of £7l. He owed £231 to unsecured creditors *#nd £B4O to secured creditors. The value of securities was given at £I,OOO. His assets consisted of a sum of £l6O, being the surplus of securities. Ip a statement which was read to the meeting. Adamson said that in 1925 he entered into an agreement with a relative to build a house on an unencumbered section valued at £2OO and owned by him (Adamson), the arrangement being that he should contribute ’:he section and bis partner £2OO, so that they should start on level terms. Bankrupt was instructed to raise £7OO on a first mortgage. The house was completed, but the partner contributed £IOO instead of the promised £2OO. In consequence ho immediately found himself in difficulties and was unable to pay the balance owing for materials and was compelled to raise a second mortgage to pay the sub-contractors. UNABLE TO MEET INTEREST From December, 1926, to May, 1927, he was out of work and was unable to meet the interest on his mortgages. He endeavoured to sell the property, but owing to the state of the market he could not get a reasonable price for it. One creditor obtained a judgment against him and another threatened to take proceedings. He was therefore compelled to file. Urded examination Adamson said he had experienced some trouble with his brother-in-law, the partner in the ven - ture. who demanded his £IOO back when he saw things were not turning out favourably with the house contract. According to Mr. Meek the relative; was greatly annoyed. .‘Til wreck the house if you don’t sign this,” the partner is alleged to have stormed one night, about 12 o'clock. “This” was a promissory note, in which the brother-in-law demanded his £IOO back. “For peace and quietness’ sake I got out of bed and signed it,” declared bankrupt. That is how the relative became Adamson’s creditor. The assignee expressed his intention of rejecting the relative’s proof of debt, and intimated that there was a Possibility of forcing him to take over half of Adamson’s debts in view of the fact that he was a partner with bankrupt.