DISTRICT COURT.—SITTING IN BANKRUPTCY.

Westport Times, Volume III, Issue 411, 24 November 1868, Page 2

DISTRICT COURT.—SITTING IN BANKRUPTCY.

Saturday, Nov. 21. (Before His Honor, Judge Clarke.) His Honor sat on the bench on Saturday, for the purpose of hearing the adjourned ease of James Godfrey, brewer, Charleston. Mr Tyler made the application for the bankrupt's discharge. Mr Pitt opposed on behalf of the provisional trustee, and on behalf of Mr Pizzy and Mr Gasquoine. The bankrupt, examined by Mr Pitt, said—l filed my declaration of insolvency on the 4th of May last. A day or two before I did so, I he/d a sale. It was advertised a week before. I will swear that it was advertised more than once. It realised between £4OO and £SOO. Some of that amount I received ; some I did not. I received £3OO. I paid that money away. 1

received it from Mr Isaacs, the auctioneer, and from Kerr and Shepherd. Kerr, who is a drayman, bought horses, harness, and drays. I have had no right in Kerr's horses since the sale. There was a bit of dispute about a grey mare. I had to do with it. I received the money from him. He took delivery of the horses and I did not claim them.

Mr Tyler asked for some grounds for the opposition to the bankrupt, and for this " fishing " examination. Mr Pitt admitted that it was a " fishing " examination. Examination continued—l think Kerr's account was £l3O. He did not pay me. He paid " the missus." She gave it to me, and I paid it away. Some of it I paid as wages; and to different people. I cannot exactly say what I got from Shepherd. There was a contra account, and he paid me, and I paid him. He bought the house, and I occupied part of it till he let it. I paid him £2 a week. lam still living on part of the property. I paid all the money away, and have got receipts. His Honor : Is there nothing about this in the schedule ?

Mr Pitt: Not a word, your Honor. Examination continued—l paid away all that I got out of the sale, and more. I could have paid everybody, if I had been let alone. , Mr Pitt: In this case, your Honor it appears quite impossible to learn the state of the bankrupt's affairs. To say the least, it is very suspicious. His Honor : I see some property in Beach street, Hokitika, put down at £SOO. Ido not think the whole street is worth £SOO.

•The Bankrupt ■ It cost me £IOOO. Mr Pitt applied that the bankrupt be ordered, within three weeks, to file complete accounts of his transactions, and that his protection should be withdrawn.

Mr Tyler opposed the application. The trustee could have called upon the bankrupt to have furnished accounts, and unless it were shown that he had been asked and had refused, some reasons must be given for this opposition. The insolvency had been declared in May last, and ample time had been allowed to the trustee or the creditors for examination or opposition. Mr Pitt applied simply because the trustee was not satisfied with the statement of affairs, and only heard of some of th« circumstances within the last few days. His Honor: Not only must the creditors be protected, but the Court must be satisfied. It is a mistake to snppose that, whether creditors oppose or not, the Court must be content. I think this is a very suspicious case. lam satisfied, unless I have very ample proof to the contrary, that this sale was to defraud the creditors. That is the suspicion in my mind. Nothing would justify a man in paying away £4OO or £SOO immediately before his insolvency, or in paying away anything, unless it were small amouats as wages. Certainly there should be some explanation. I do not see any use in taking away the bankrupt's liberty. It might be wrong to withdraw his protection. It would be defeating the object we have in view. It is highly necessary that these accounts should be filed, and I order that they be filed within three weeks, protection to be continued during that time. The Court was then adjourned.