AWARD CASE

Manawatu Standard, Volume LVII, Issue 177, 28 June 1937, Page 9

AWARD CASE

INTERPRETATION GIVEN. THREE PARTIES CONCERNED. Per Press Association. WELLINGTON, June 24. “If debenture-holders take over a firm and appoint a receiver, who carries on the business, who is responsible for a breach of an award, the firm, the debenture-holders, or the receiver.” This question was discussed by Mr J. H. Luxford, S.M., in a reserved judgment to-day. Mr Luxford answered the question by asking another, “Who is carrying on the business?” “if the receiver is carrying on the business on behalf of tbe dcbcntuiehoklers.” Air Luxford said, “either the debenture-holders or the receiver would be subject to an award by virtue of section 89 (3) of the Industrial Conciliation and Arbitration Act, 1920. The receiver is a prime facie agent of the debenture-holders, but the conditions of debenture may declare, as in this case, that tbe debenture-holders shall be tbe agent of tbe company. Consequently, tbe business in. this case was carried on at all material times by the company, which alone is responsible for a breach of an award.” The case was one in which the Labour Department proceeded against Te Aro Bakeries (as first defendant), Stoupe and Sons, Ltd., and 11. Baldwin and Co Ltd., debenture-holders (as second defendants), and V. N. Beasley, receiver (as third defendant) in respect of a breach of tbe Motor and Horse Drivers Award.