GROCER’S BANKRUPTCY

Sun (Auckland), Volume II, Issue 379, 13 June 1928, Page 16

GROCER’S BANKRUPTCY

QUESTION OF PREFERENCE JUDGMENT RESERVED Continuing the case in which it was alleged at the Supreme Court yesterday that a debenture for £ 650 gave a fraudulent preference to cne of the creditors of Green’s Grocery Stores, Ltd., Mr. Ziman argued for the National Trading Company, the creditor in question. On the previous day, acting on behalf of the official liquidator, Mr. Mackay had applied to have the debenture declared void. Mr. Ziman said that the National Trading Company was already a creditor of Green, who had approached it for a loan of £ 300 to fix his mortgages. Green had also asked to be supplied with more goods. The company stipulated that it must have security for the debts then owing, and in the debenture arrangement subsequently made. Mr. Ziman contended, there was nothing in the nature of a swindle. His Honour: Perhaps I should not have said that. Contending that if there had been a fraud, the National Trading Company knew all about it and had probably hatched the scheme, Mr. Mackay sought to show that there were two creditors —the National Trading Company, to which £ 650 was owing, and George Green, to whom £1,074 was owing, as a result of the private company taking over Green’s liabilities. If there were two creditors a fraudulent preference had been given. Mr. Justice MacGregor reserved judgment.