Important Case in Bankruptcy.

Gisborne Standard and Cook County Gazette, Volume II, Issue 287, 16 April 1889, Page 4

Important Case in Bankruptcy.

UAuau. An important case in the Bankruptcy came to a conclusion last week. William. Christie, an auctioneer and commission agent here, recently tiled a declaration of insolvency, the Colonial Investment Co. being the largest creditor. The bankrupt came up for puttie examination. The Colonial Investment Company, through their solicitor, formulated a number of charges against the bankrupt, amongst them being those of misappropriation of realised securities, ana obtaining advances by means of false pretences. From the evidence it appeared that the bankrupt bad obtained large sums of money from the Company as advances on lands, crops and stock, the first advances being made in 1885. Owing to the great depreciation in the value of the securities many of them would not cover the advances, and the practice of the bankrupt to take the realised proceeds from one security, and apply them to keep other securities going was tacitly acquiesced in by the Company, through their manager, in 1888. The Company becoming frightened at the turn affaire were taking, put pressure on the persons to whom advances had been made in the various districts, with the result that at about the same time some of the firms came to grief, the Company losing large sums of money. In Christie’s case the Company alleged that he had, after being instructed to realise on the securities held by him on behalf of the Company, and hand them over the proceeds, applied certain money from the securities to pay debts contracted by himself. It was held by the bankrupt’s solicitors that the money alleged to have been misappropriated was applied in the payment of a debt contracted on behalf of the company to keep their securities going. However, Judge Ward held that as the bankrupt had applied, after receiving notice from the Company, a bill obtained in payment of produce sold from one of the Company's securities to another purpose than that specified by the Company, he had rendered himself liable to imprisonment, and he would make an order. The counsel for the prisoner raised the point that the advertisement appointing the time for public examination. of the bankrupt was informal, and this had rendered the proceedings also informal, as the requisite seven days’ notice had not been given. The Judge overruled the objection, and on counsel applying for leave to appeal and for proceedings to be stayed, said that he bad no power to grant leave to appeal nor to stay proceedings. An order was then made for the imprisonment of the bankrupt for four months with hard labor.