March 18, 1907.|
assets and liabilities and defendants retired from it. An agreement was prepared and signed by certain persons present at a meeting. The dispute which was to be settled by the Court was whether an alteration which appeared on that agreement was made before or after its execution. The alteration was in reference to the debt of the Wah Tai and the dispute as to whether the word “included" had been altered from "excluded.' Case adjourned.
Thursday, March 14th.
IN BANKRUPTCY.
BEFORE SIR FRANCIS PIGGOTT (CHIRF JUSTICE).
CHUNG SHUN KOOS AFFAIRS.
Re Chung Shan-koo az parte Sam-Che-chuen. Mr. Looker-Your Lordship made an order that Ho Tung was to pay the costs of one of the motions in this bankruptcy. On that motion Mr. Slade appeared and certain creditors werg instructed by two sets of solicitors, one solicitor appeared for two creditors, and the other for three creditors and a debtor. We submit that only one set of solicitors' costs should be allowed. Creditors should not retain separate solicitors unless they paid their own costs.
His Lordship-In the first place, the Taxing Master shall decide the question first, and Ï think certain principles are laid down in the Bankruptcy Aot.
Mr. Looker-As your Lordship pleases.
under.
Mr. Master With reference to the same bankruptcy, my Lord, about September last a sum of $2,200 was paid into Court by the Official Receiver in order to prevent the sale of certain of the debtor's property by public auction. At that time there was come standing after the property was eventually sold that the money should be returned. The per- son who paid it is the debtor's brother and I am instructed to make application that the money should be repaid to him.
His Lordship-I think the simplest thing would be for the Registrar to report on the matter.
A KOWLOON FAILURE.
Re H.W.R. Matthaey ex parte the debtor. Mr. E. J. Grist (of Messrs. Wilkinson and Grist) who represented the debtor, made an application on behalf of the trustee that the bankrupt 'might be allowed to be paid out of the estate $250 for the maintenance of himself and family.
His Lordship-Liow long is that to last ? Mr. Grist-It has really already been spent. The debtor has been in hospital for some time, and has had to support his wife and six childreu. He has no occupation at the present time so, of course, is living on credit,
His Lordship-1s not this a case for the Sharp hospital?
Mr. Grist-Perhaps it is one of the few occasions on which the Sharp hospital would be useful; at any rate, he is out of hospital now. The application is made under section 57 of the Bankruptcy Ordinance.
His Lordship-How much is there in the estate ?
I
Mr. Grist-Some few thousand dollars. don't know exactly how much as there is a great deal out on promissory notes
His Lordship-If he does not get employment the whole of that money will be drawn,
Mr. Grist-I don't know that one could go on moving these applications, but at the present time it is a case in which your Lordship should exercise jurisdiction.
His Lordship-The Trustee controls the funds?
CHINA OVERLAND TRADE REPORT.
RECEIVING ORDER RESCINDED This was an application for the rescision of a
Re Yu Sze-yu ez parte the debtor. receiving order in which Mr. F. B, L. Bowley represented the debtor and Mr. John Hastings a number of creditors.
behalf of a creditor, but arrangements bare Mr. Hastings-My application is made on been arrived at between Mr. Bowley and myself, and I understand the order will be consented to.
His Lordship-Is that so, Mr. Bowley ? Mr. Bowley-Yes, my friend has undertaken on behalf of the creditors to withdraw proceed inga in China against the debtor's estate as he has paid all he can pay.
His Lordship granted the application.
DEBTOR'S RELEASE REFUSED.
Re Kwok Ying-man ez parte the debtor. Mr. U. D. Thomson appeared to apply for the debtor's release under sub section 3 of section 10 of the Bankrupcy Ordinance, and Mr. F. B. L. Bowley opposed the application.
At
Mr. Thomson stated that debtor was but under the section referred to bis Lordship present a prisoner under a writ of execution.
had discretion to
release him. He had circumstances should be discharged. committed no uffence whatever, and under the
His Lordship.I cannot exercise that section except for special reason.
Mr. Thomson --I have no special reason. Mr. Bowley said be appeared for the creditor on whose action the man was arrested and he was also instructed by several others to oppose the application. His Lordship would remember the circums ances under which defendant was arrested.
stated that he was going back to Chins în a Chinese New Year, and during the holidays He kept out of the way until the
day or two, but was prevented by the writ of execution. If release was granted the debtor would go back to Canton, and yet filed his statement of affairs.
he bad not Mr. Thomson:-hat is because he is in gal. His Lordship: You can have access to him. Mr. Thomson-But the room up there is not very suitable.
His Lords ip-I always refuse these applica. tions for release made directly after the bank. ruptcy, as the granting of them defeats the object of the imprisonment.
Mr. Thomson-This is not punishment, but as a means of debt.
intended an a
collecting the His Lordship-I suppose
it is intended to put on a certain amount of pressure?
Mr. Bowley-Yos.
เ
I
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175
ruptcy of a firm. It is the bankruptcy of the Mr. Lordship-It has been held over and over again that there is no such thing as the bank. individual partners, although for convenience of procedure the bankruptcy is under the name of the firm. I am afraid we shall have to suspend tuis for further consideration.
Mr J. Hastings, who appeared for two of the largest creditors, Messrs. Jardine, Matheson and Co, and the Hongkong Cotton Co., said he was instructed that there was another partner to cross-examine him about” it. the debtor was not mentioning, and he wished partner was a man of mesos in Hongkong.
The other His Lordship - We must dispose of this preliminary point first. Supposing you made the partners out of the jurisdiction bankrupt, how would you act?
I cionot take thei
His Lordship-Then pressure off merely because the man goes into bankruptcy. I don't think I can do it.
A POINT FOR CONSIDERATION.
Re the Yee Yuan firm, ex parte the debtors, Mr. G. H. Wakeman, Official Receiver.
This was a public examination conducted by
partner of the bankrupt firm of cotton yarn and Pun Shing-chi said he was the managing opium dealers. There were eight other partners, four of whom were dead, while the other four were not in the Colony.
here, my Lord, as on a previous occasion-
Mr. Wakeman-The same question arises debtor's petition signed by one partner.
ruptcy?
His Lordship-What was the act of bauk-
Mr. Morrell who appeared for debtor--In- ability to pay his debts. In this case my partner is the only honest man of the lot. He stays to bear the brunt,
His Lordship-It has been decided over and over again that there is no such thing as the bankruptcy of a firm.
Mr. Morrell--Take the firm's property.
dissolves the partnership, therefore each partner His Lordship The bankruptoy of a firm becomes an individual with a share out of the partnership.
Mr. Morrell - To release a man's share you're
the general als of that firm go into the
nt to sell the partnership.
Mr. Hastings-If a firm is made bankrupt, bankruptcy, and the general partners with their individual assets als › gʊ in.
bankruptcy of a firm.
His Lordship ~There is no such thing as the
Mr. Hastings-That means that if a firm is made bankrupt, all the partners in the firm sre bankrup'.
means
the
His Lordship -The bankruptcy of a frm bankruptcy of the individual partoers, You mean if a firm is bankrupt the
individuals composing that firm are bankrupt. partners ara bankrup' too.
Mr. Hastings-If a firm is bankrupt the
fortnight in order that authorities might be His Lordship adjourned the hearing for a
looked
up.
YARN MERCHANT'S FAILURE. Another public examination coudusted by Mr.
Re Fang Wa-Shan Wakeman.
ez parte the debtor.
aldring and Barlow) appeared for the debtor, Mr. P. W. Goldring (of M»sars.
Looker and Deacon) for David Sassoon and Cɔ. and Mr. II. W. Looker (of Messrs. Deacon
and other creditors.
Fung Wa-shan said he was the sole proprietor of the Sun Hing firm of yarn merchants. Ho he started alone he had a ospital of $11.000, and bought the business from his partners. When
$27.000. in the first three years made a profit of In the following year, however, The lost everything but $5,700. He accounted for his losses by the large fall in the price dollars worth every year. Formerly he took of cotton of which he bought several million delivery of all his purchases. During the year before last h purchased 80,000 or 90,000 amount of which he had not taken delivery bales, and last year 79,00 or 8300) a large
'differences on cotton,
All his liabilities were in respect of His Lordship-What are his liabilities ? Mr. Looker-Several lakhs of dollars. Debtor, continuing, said he owned one house in Pottinger Street,
of.
present firm he had no branches. He did not By Mr. Looker-When dublor started his tell David Sassoon and Co. or other creditors that he had a branch up the West River. them attended to the business. They dissolved When in partnership with his brother both of because debtor's brother much profit made, sad would not continue, His saw there was not
could not say whether it was started befors or brother now had a yarn business in Canton. He after the dissoluticu, He shipped yarn to his brother in Cantou, but the transitions were
Mr. Morrell-It has been argued several | not times here, and held that one partner can sign a petition.
Mr. Grist-Yes.
His Lordship-Very well, but 1 think His Lordship-All the other partners are Sharp's hospital and see what can be done.
management of 'absent?
I should approach
the
RECEIVING ORDER GRANTED.
Mr. Wakeman—Yes. His Lordship-The partners' names should be set out on the petition.
Mr. Morrell-He has disclosed their names on oath,
Re Ling Yan-luk ez parte the debtor. This was a debtor's application made by Mr. Grist for a receiving order. An affidavit showed that the assets were $100 cash and His Lordship-I don't think you can make a $126,000 in debts. Since the affidavit was filed, firm bankrupt when the partners are out of the some of the debts had been collected and the jurisdiction. debtor had in hand $4,600. The order was granted.
Mr. Wakeman—A creditor can make them bankrupt.
1,000 odd bales a year. In 1903, the first very large. He used to ship about
870,000 or $80,000 worth of yarn, sud about the year he started business, he bought about
same amount in 1904.
In February 1905 witness first made up his accounts, and found that with profits and capital he had 838,000, million dollars worth of yarn, about 7,010 or In 1905 he contracted to buy seven or eight
time how he stood financially. Sometimes be 90,000 bales, He did not know from time to bought yarn because customers asked him and bay. Sometimes he saw whether he had enough sometimes he bought with...at being asked to money to pay for the paronases, and sometimes