SUPREME COURT.

Tuapeka Times, Volume V, Issue 238, 22 August 1872, Page 6

SUPREME COURT.

IN BANKRUPTCY.

July 12.

(Before Mr Justice Chapman.)

Be Thomas Guthkie.— The bankrupt received his final d charge. Re David Henderson —The 26th inst. was appointed for the bankrupt's final examination. Be John Paterson.— This matter was further adjourned to the 19th inst. Re John Crickmore. — This was an adjourned motion for declaration of complete exocution of a deed of arrangement. Air Stewart opposed. The motion was not proceeded with, Mr Hagvitt, on behalf of Mr Stout, the debtor's aoHcitor, stating that the deed was nob sufficiently executed. The proceedings therefore lapsed. Re Mathew Currie. -^n the motion of Mr^ Harris, the time for applying for adjudication herein was adjourned to the 19th inst. Re John Maclean. — Examination of witnesses. Mr Smith appeared for the Bank of New South Wales ; and Mr Barton, instructed by Mr Harris, for the bankmn* Watson She-"-- ~" «" Larnach, the v, n «).. upi, and he formerly owned ruketoi station. Maclean sold Mr third interest to him (^hennan) for LSO. He raised an action against witness and Larnach by virtue of a promise made by him (Shennan) to resell him the share at any time on payment of the sum given for it. Witness made Maclean the offer of a certain sum to discontinue the action. LIOO was named for costs and the offer was made through Mr Driver. There was a sum of LIOOO paid to Mr Macassey by his authority. Witness wanted the action stopped and was willing to give Maclean LI, OOO but Mr Larnach would not consent to the payment of any money except the LIOO, unless it was settled on Mrs Maclean. Previous to that witness, through Mr JStewart of Driver, Stewart, and Co., offered i 1,000 to Maclean, but never received any answer beyond that the offer was under consideration, and an intimation from Mr Stewart, that he did not think it would be accepted. After that came the offer which was ultimately accepted. The L 1,006 was paid to Mr Macassey to carry out the arrangement that it should be settled on Mrs Maclean. After the money was paid he received a notice from Messrs Smith and Anderson, the bank's solicitors, that the Bank of .New South Wales claimed auy payments made in lesppct of the action. Hu«h Maclean stated that, instructed by M>* Macassey, he au-.l his brother drew LIOOO from the Bank of New Zealand, which was invested for Mrs Juhn Maclean, under a deed of settlement, he and his brother being trustees under it. He could not swear that either Mr Macassey or Mr Harris told him where the money came from, but he understood from one or the other that it came from Mr Larnach as a pure gift. Jjs. Maca°sey gave explanations with reference to the LIOOO. On April 9Mr Larnach called upon him and asked him, as a mutual friend of himself and Maclean, to endeavor to bring about some settlement of the action then threatened against himself and Shcnnau. In a subsequent conversation Mr Larnach asserted that he had been ignorant of the a.reement between Shennan and Maclean, which allowed the latter to repurchase his share in the station, and therefore was not bound by it. He also stated that he had been advised by his solicitors that Maclean had no possible claim, by reason of his bankruptcy which dissolved the partnership ; and went on to say that it was a very unpleaeant business, that imputations had been bandied about, aud he did not wish to have his name mixed up with such an action. He (Mr- Macassey) forgot whether any distinct offer was made, but ref deuce was made to a sum of money. Ho i"l»l Mr Larnach if he could arrange the matter, he would be glad to do so, and at his request he saw Mr Harris, Mr Maclean's solicitor, and repeated to him what Mr Larnach had said. He subsequently arranged an interview between Mr Larnach and Mr Harris. The result of that interview was that Mr Maclean was brought to t <wn. Me should have stated at the interview between Harris and Larnach, the latter mentioned I<soo, L6OO, and afterwards L 750 as the amount he was prepared to pay, which Harris said was altogether out of the question, adding that if Mr Larnach spoke of LIOOO he would be prepared to use his influence to procure its acceptance. Maelean, when he came to* town, would not entertain any proposal of the kind, and said that if Larnach aud Shennan were prepared to open their mouths to the extent of L.SOOOor L4OOO, he would talk to them. At this interview he pressed the matter sti ongly upon Maclean: that to him (Mr Macassey) it seemed' useless for Maclean to contest the matter with Larnach and Shennan; that it was doubtful whether he would succeed; and if he did, he would be only fighting the battle for the Bank of New South Wales, which under the 10s clause would pounce on whatever he received. Maclean was cot influenced by what he (Mr Macassey) paid ; but a few days afterwards he authorised him to act as he thought for the best. Mr Larnach agreed to pay the LI, OOO, stipulating that it should be paid to Mrs Maclean, and declining to recognise any claim on Maclean's part. Eventually the LI, OOO was deposited in the Bank of New Zealand, in bis (Mr Macassey 's) name as representing Mr Larnach, and in that of Mr Harris as representing Mrs Maclean, until a proper deed ef settlement was made, when he authorised Mr Bealc to pay it over to the Messrs Maclean, the trustees under the deed. He (Mr Macassey) had no doubt that the LI, OOO would not have been paid but for the withdrawal of the action. Mr Barton complained that as no motion was made (in consequence of which it would be impolitic for him to call evidence) a hardship would be inflicted on his client, as an ex parte statement would go before the public. Mr Smith said the facts disclosed by the evidence di<l not enable him to ask for an order contemplated by the 295 th section, as the LIOOO had been lodged in such a way as not to be accessible at present. The Bank of New South Wales therefore would have to consider hereafter whether or not proceedings should be taken to set asuie the settlement. Mr Barton applied for costs, which bis Honor declined to grant. Counsel then said as his Honor refused to grant costs he would call evidence to show that the Bank had been grossly negligent in its conduct of the bankrupt's estate ; and that if they had not i already received 10s in the £, it was entirely their own fault. The large estate that had come into their hands had been recklessly squandered. John Maclean stated that the whole estate of Driver, Maclean, and Co. was handed over to the Bank of New South Wales, who were their sole creditors. Had it been judiciously managed, he believed it would nave paid 20s in the £. He could give many instances of heavy losses through reckless disposal of property. The Waikaia station was sold to Barron, Grant, and Co. much under its value. Driver, Maclean held an acceptance for L3,soft, which was handed to the Bank, as collateral security over twothirds of the run ; and bad that acceptance been held, and the station property.nianaged,

by next shearing the acceptance would have realised 20a in the £. He had been told on good authority that Barron, Grant, and Co. bought the acceptance for L 5. He knew that the station had been paced under offer for sale after next shearing for L 20,000, with 2000 more sheep on it, but 450 head of cattle leas. The IBlayI B lay station had not been realised ; the Bank were farming it. Driver, and Maclean had a claim of L 12.500 upon it, besides L 12.500 in bills, held by the Bank He thought from the number of sheep on it that the present value of the station would be between L 17.000 and LIB.GOO. If properly realised, those stations should have realised a difference on the debts proved of 13s in the £. Driver, Maclean, and Co. also held an equity of redemption over some of Mr Harris's property, which the firm repeatedly valued at L2OOO or L 2200, but the Bank returned it as valueless. It was afterwards sold for LIOOO. The L 3500 acceptance was also returned as valueless. Since his bankruptcy he had purchased from the trustee his share in the Puketoi, and the trustee informed him that the sale was made with the consent and knowledge of the Bank. Henry Driver gave corroborative evidence.