SUPREME COURT.

Taranaki Daily News, 22 May 1918, Page 3

SUPREME COURT.

YESTERDAY'S PROCEEDINGS, (Before his Honor the Chief Justice. Sir Robert Stout.) A case of some interest relating to mercantile law was commenced at the Supreme Court yesterday, when it was eought to ascertain the position of creditors in the estate of t- C. H. Viehollß and the executor of the late B. H. Nicholls. The facts set out were that the parties mentioned carried on business under a deed of partnership, as general storekeepers at Inglewood. They executed a mortgage to five merchantsMessrs Newton King, Burgess, Eraser, and Co., J. H. Cock and Co., Sargood, Son, and Ewen, Archibald Clark and Sons —the first two guaranteeing a bank overdraft, and tho mortgage to the others being to secure moneys due for the supply of goods. On June 30, 1911, B. 11. Nicholls died, and the partnership was dissolved. The will gave no direction as to the carrying on of the business, and the sanction of the Court was not obtained. Notwithstanding that, T. C. H. Nicholls and the executors of the late B. H. Nicholls continued the business under the same name, with no bieak in the accounts. In June, 1914, the business was assigned for the benefit of the creditors. The questions submitted to tiic Court were whether, in view of the death of B. H. Nicholls and the dissolution of the partnership, the mortgage still existed to cover the loan ac-' counts and the trading accounts, and whether payments made after the death of B. H. Nicholls should be appropriated against what was then owing to the creditors. Mr. II- E. Billing appeared for the Assignee (Mr. Hugh Baily, New Plymouth), Mr. J. H. Quilliam for the secured creditors, and Mr. A. Gray, K.C., Wellington (with him Mr. F. E. Wilson), for W. E. Mills and Co., Ltd., representing the unsecured creditors. Evidence as to the facts was given by the Assignee and Mr. T. C- H. Nicholls, and the matter was adjourned, for further particulars and legal argument, to Wellington. The case concluded the sessions of the Court at New Plymouth.