BANKRUPT CONTRACTOR

Sun (Auckland), Volume III, Issue 927, 21 March 1930, Page 6

BANKRUPT CONTRACTOR

ATTEMPT TO RECOVER £SOO LOAN ASSIGNMENT CLAIM FAILS Press Association WKLLINGTOX, Today. Reserved judgment was delivered today by tlio Chief Justice, Sir Michael Myers, in tho case in . which William Collingbourne Hewitt, of Putaruru, sought to recover £SOO from either the official assignee of the property of Edward John Barnes or Ernest Keeble. Barnes and Keeble, as partners, entered into a contract with the Government at the end of April, 1927, for the construction of tho foundations for a locomotive shop in the Hutt Valley. On June S, 1927, Barnes gave in plaintiffs favour an order authorising Keeble, in consideration of plaintiff advancing Barnes £SOO, to pay to Hewitt all his profits up to £SOO that might accrue from the contract. On June 17, 1927, Barnes committed hu act of bankruptcy; and on October 21 he was adjudicated bankrupt, his bankruptcy dating back to June 17. At that date only tho preparatory work had been done in connection with the contract, which was completed about September 1. Eventually the profit was ascertained to be about £1.832. half of which, but for his bankruptcy, . would have belonged to Barnes. The Chief Justice!! in his judgment, held that as the bankruptcy dated back to June 17, and at that time it seemed clear to him that no profit had been earned by Barnes, there was no money to which tho assignment could attach, and therefore plaintiff’s claim could not succeed.