ADJUDGED BANKRUPT

Sun (Auckland), Volume III, Issue 786, 5 October 1929, Page 12

ADJUDGED BANKRUPT

MOTOR MECHANIC’S AFFAIRS CREDITORS PETITION An Auckland motor-meek...-Reginald George Allan, was adiu^ 1 ' bankrupt by Mr. Justice Smith i*’ 1 reserved judgment delivered i. Supreme Court today. The order was made on the armi,,., non of the petitioning creditor S?' Commercial Loan and Finance Ltd., which alleged failure to with the terms of a bankruptcy The petition was opposed bv the Jl 0 ' 1 creditors. ne ou «r The facts, according to the iua showed that the petitioning 'credo had security over all Allan's chaot.? r One payment of £2 was made in red,, tion of the debt, the chattels being th seized and sold for £l4. Under arrangement a dividend of 4 S Sd ■ the £ had been paid by debtor to t? creditors except to the Commercial Loan ami Finance Co., which was i patently not advised of the transac After the petitioning creditor eh tained judgment for the balance of i.I debt, £oo 10s 6d. its solicitors threat' died bankruptcy proceedings if ment was not forthcoming. The n»,' tioning creditor denied it had author" ised such an action, and subsequent, changed its solicitor. lly ■ Even if the solicitor’s action is bina ing on the petitioning creditor” »ii the judge, *T am of opinion that 'such . threat does not constitute sufflcj,* cause for not making an order n adjudication.” His Honour also held that the e>.i_ that debtor had no assets was tT” strong enough to justify his rctusir. an order. It had not been proved, said hi Honour, that the petitioning credit, had threatened bankruptcy- for extor tion purposes, or that the firm h->d pretended to come into any arrange ment between the debtor and hi creditors, and then sought a secret advantage, or that the firm had dr manded preferential payment as the price of consenting to the arrangement between the debtor and liis creditor