THE BOOK DEBTS IN BEAUCHAMP'S ESTATE.

Waikato Times, Volume XX, Issue 1705, 9 June 1883, Page 2

THE BOOK DEBTS IN BEAUCHAMP'S ESTATE.

The following is the text of the judgment delivered by Mr Northcroft, R.M , on Wednesday last, in the cas n , W. .!. Hunter and Co. v. '• umuiing and others : — The plaintiffs sue to recover £9 Os 10(t? a book <lebt alloyed to have been assigned to the phi n tiffs by Beauchamp Bios, on the 21st of April last. There is also a bill of sale dated 24th January, w hioh plaintiffs also state give them the book debts. Defendant does' iv t deny o\\ ing the money, but says "I do not owe it to plaintiff." The point on which I consider the ciae turns has not been touched upon. I refer to fi ami u lent piefciem-e under section 61-, and act of bankruptcy umler section 29 of the Debtors and Creditors Act, 1876. The facts ate as follows, as I understand them from the deeds, and taken uith the evidence: — Beauchamp Bros, were largely indebted to plaintiffs, and were unable to discharge the same. Plaintiffs pressed for seciu ity, and obtained the deed of January. Suband became insolvent, and in this seqnently the debtors dishonoured P.N. condition executed the deed of April, assigning the book debte, including the one now sued for. About a fortnight after this, on the Bth May, the debtors file a declaration of insolvency. Now, did plaintiffs know of the insolvent condition when the deed of 21st April was made ? This appears to bo a question of fact for me on the evidence, and I have no difficulty in considering they were well aware of the insolvency. Agaiu, do the two deeds include all the property of the debtors ? and, had they have been enforced, would they have stopped the business ? From the wholesale terms of the assignment, I am impressed that they do lnjUicle all. Now the question I have to decide clearly arises under the deed of April, which assigns the book j dt bra. As to this deed, I feel it was an act of bankruptcy, and being committed w.thin three months of the bankruptcy the trustee's title relates back to that net of bmkruntcy, and the book debts be'ong to the trustee as part of the i-statc The deed was made without consideration ; it was made when the parties were insolvent. Bankruptcy followed within 'seventeen days, and its elfect ia to defeat and delay creditors, and in such circumstances I find the law implied fraud. Sec. 29, "Debtors and Creditors Act," refers to the filing of a petition, but sec. 4 of the Amendment Act of J 879 gives the same effect to the filing of a declaration of insolvency. The t "uste,e'i< title relates back to the earliest act of bankruptcy committed within the period of three months. Judgment fcr defendant (dimming), with £1 Is coats ; and for Vincent and Kelly without costs.