BANKRUPTCY PETITION.

Taranaki Daily News, 25 February 1922, Page 7

BANKRUPTCY PETITION.

CREDITOR’S APPLICATION. I I ‘ SUPREME COURT PROCEEDINGS. In the New Plymouth Supreme Court on Wednesday His Honor Mr. Justice Chapman was asked to consider a petition by the Commercial Agency, Ltd., Wellington (as assignee of Ross and Glendinning, Ltd.), to have C. E. Carlson, of New Plymouth, clothier, adjudicated a bankrupt. Mr. D. Hutchen appeared for petitioners and Mr. H. R. Billing for respondent. The grounds of the petition were that there had been no compliance by Carlson with a resolution passed at a meeting of his creditors in December asking him to file a debtor’s petition, and also that the petitioners on January 26 at Wellington obtained judgment against Carlson for the sum of £204 15s, which had not been paid. Formal evidence was given by Nelson A. Ching, representing the petitioning creditor, and J. D. Sole (manager of the New Plymouth branch of Archibald Clark and Sons) who presided at the meeting of creditors in New Plymouth. The application was opposed, Mr. Billing said, on the ground that there was a binding agreement at a meeting in Wellington between creditors (including the petitioning creditor} and respondent to the effect that the estate should be assigned on terms which were then agreed upon. It was further contended that the action of the petitioning creditor in obtaining judgment was in breach of the agreement mentioned. As the Court had a jury case to deal with His Honor announced that he would hear further argument yesterday.

When the case was resumed yesterday Mr. Billing stated that the agreement arrived at included the arrangement that the business should be carried on for six months with Carison as manager, and if in that period the sum of £lOOO pounds was forthcoming fo-r distribution among creditors the business was to be carried on for a further six months.

Lengthy argument was heard, Mi’. Hutchen contending that there was no enforcable agreement. His Honor said he was satisfied there was no binding agreement. All the circumstances showed that it was intended to enter into an agreement, but the terms of the deed of assignment were not agreed upon and it had not been executed. For that reason the petitioning creditor was not bound. His Honor intimated his intention of making an adjudication, but would not sign the minute until Monday, which would give the parties time to come to a working arrangement if they desired. He strongly recommended them, to <lo so and saw no reason why they sho’iid not come to an arrangement. The case was accordingly adjourned.