BANKRUPTCY COURT.

Wairarapa Daily Times, Volume XIII, Issue 4073, 26 March 1892, Page 2

BANKRUPTCY COURT.

SUMMONSES TO SHOW CAUSE, 0, A, Pownall 'was summoned to show causa why the sum of £4lss received by him from David Peruy Dixon, a bankrupt, should not be handed om to the Official Assignee. . .Mr-Bunny, who appeared for the Assignee, stated that the sura of £lO had been handed to Mr'Pownall by Ihe bankrupt, £5 Ss only of which was required for Court fees. It was now desired that the balanco of£4 ! lss should be divided amongst the credi* tors. 'The Bankruptoy Act stated that no moneys should be paid by a banks rupt or a solicitor, excepting for Court lees and the necessary advertising expenses. Since this Act had been passed it had become, unnecessary for the bankrupt to advertise. Mr Pownall had written to the Assignee, forwarding the sum of £2l4s and stating that the balance had been devoted to Court .fee's and advertising. :He (Mr Bunny) maintained that the only costs allowed were those for adjudication. Publio morality was at a very, low ebb if a man was permitted to. go to asolioitor and be, told "I'll put you through if you give mo £10," and then evaded his just liabilities by filing.. ■> When a bankrupt filed the whole of the assets should vest in the Assignee, Under section .10 of the Amended Act of 1884 tho discharge of a bankrupt could be withheld by His Honor. He thought in this 1 , case the bankrupt should not be discharged .until ho satisfied his.creditors to some extent, ..Mr Pownall.had no right to retain moneys on account of the bankrupt's discharge, ' : ' Mr Pownall said he did '■ not propose to dispute tbo.faots, He merely came| before the Court to know what moneys could be: legally held by a solicitor, It was of utmost: importance to the'outside' profession. He would like to know how much of the £i l§s would gq to the creditors after the Official Assignee and his *ol|cjtor. had been paid. He had detained i 6s' for cost of motion tor discbarge, 15s for the fees for. order- ■of .discharge, and il for advertising, He thought kehad a lagairight to --retain-these moneys... .. ~..-... . • 'His'Bonor held that he cotilcl' not restrict a bankrupt to paying tKefifat costs of the bankruptcy only. JHe could see no reason why moneys 'should not be lodged with a solicitor to meet the .expenses of..obtaining.hisdischarge,.-' ;3lhoßummonsos' would there--i fore be dismissed without costs, :

Willwm Riddle was then called ->'' upon to show cause why he should not hand over to the Official Assignee ? a horse, trap, and harness held by " ' hiin, which was alleged to belong to " '• , the estate of George Townsend, baourupt. Mr Bunny appeared for the Official Assignee and Mr Pownall for Mr Eiddle. * ' The bankrupt was called but did &,"%* not appear. ■ ,W «^ Mr Bunny: 1q the absence •of the' bankrupt I cannot go on. I shall have to ask for an adjournment. Mr Pownall: I shall object to an adjournment unless the expenses of the defendant are paid. _ His Honor granted an adjournment till lltb May, allowing the, defendant £1 for bis attendance.