AN IMPORTANT LAW POINT.

Waikato Times, Volume XXXVII, Issue 2973, 4 August 1891, Page 2

AN IMPORTANT LAW POINT.

(bv telkghaph.—own coiuircspoN'nn.N'T.) Auckland, List Night. At the sitting of the Supremo Court this morning, in Bankruptcy, Mr Hesketh made a unique application to Judge Connolly. This was a motion to annul the bankruptcy of Josiah Clifton Firth, who obtained his discharge some two years ago. The application was made under section 151 of the Bankruptcy Act, of which subsection 2 reads to the effect that a bankruptcy may be closed where it is proved to the satisfaction of the Court that the debts of tho bankrupt are fully paid or satisfied. Mr Hesketh, in support of tho motion, explained that some years ago Mr Firth had been obliged to seek tho protection of tho Bankruptcy Court, due to tho great falling o(F in tiie price and value of agricultural lands, and his discharge was granted about two years ago. Since Mr Firth's discharge he had satisfied his creditors, and he now asked the Court to annul the bankruptcy. He thought that dohtors should be encouraged by the Court to pay their debts. His Honor replied that after a bankrupt got his ditchargo the Court had nothing further to do with it. Mr Hesketh submitted thero could bo no harm in the motion. The bankrupt lolt an obligation on him, and after doing what ho could at the time to pay, and further satisfying his creditors when ho was able, Mr Hesketh asked that tho bankruptcy be annulled. His Honor said tho question was whether the court had power or authority to annul a bankruptcy after tho bankrupt's discharge. Ho saw no reason why it should not bo done, but there was no authority to show that it ever had been done. After further argument on the point, His Honor adjourned tho hearing of tho motion till the next sitting of tho Bankruptcy Court in Soptoinbor, to enable Mr Hesketh to endeavour to get authority on the point.