GREYMOUTH.

Thames Star, Volume X, Issue 3369, 9 October 1879, Page 2

GREYMOUTH.

Last night. In the District Court to-day an application was made for the discharge of .David Thomas Falconer, a bankrupt. This was opposed by Perkins on behalf of the creditors' trustees, who intimated hig in* tention of proceeding criminally against the bankrupt for fraudulent insolvency. Mr Wnrner, bankrupt's solicitor, threw up his brief, and the ease was about to be adjourned lill the following day iv order that the bankrupt might obtain other legal advice, when the question of the validity of the trustees* appointment rose. His Honor Judge Weston said the point had been decided recently in Dunedin, and His Honor Chief Justice had directed attention to it. It was a case of the creditors' trustees in the estate of James Black and Watt and others. His Honor then proceeded to read the judgment of the Supreme Court in a case, and iv which it was laid down that the appointment of two creditors' trustees was illegal, as the New Zealand Act only provided for one trustee, and therefore all the proceedings were illegal, and the estate reverted to the registrar. The gentlemen, remarked His Honor, who had been appointed by the creditors were not trustees de jure or de facto in the estate, therefore they would have to hand over all monies they had collected to the Clerk of the Bench, as they had acted illegally, the law only contemplating the appointment of one trustee. Under the circumstances, in. reply to Mr Perkins, His Honor said he could not allow the trustees their expenses. Both Mr Perkins and Warner admitted that under these circumstances they were powrrless. The bankrupt withdrew his application for discharge and left the Court.