IN BANKRUPTCY

Before MR. JUSTICE SNOWDEN.

PRESS, WEDNESDAY, OCTOBER 27TH, 1880.

Mr. Gibbons—If your Lordship gives me an order in open court to go into Chambers I will go. His Lordship—I have said I am going to sit in Chambers.

Mr. Gibbons—Without any of the facts before me? His Lordship—Yes, I have not seen the papers. Mr. Gibbons—Then I must decline to go under those circumstances.

His Lordship—You must exercise your own discretion.

His Lordship—His claim is the same as that of your client in Bombay.

Mr. Brereton—And prepared to give him the undertaking we make to claim against him of pecuniary nature and guarantee him against all costs.

Mr. Gibbons—The only way will be to withdraw the writ.

His Lordship—Why should he be made defendant? I cannot understand it at all.

Mr. Brereton—Unless he makes a claim, which I understand Mr. Gibbons be desires, he can only be made defendant.

His Lordship—He refuses because he knows nothing at all about it.

Mr. Brereton—It is merely for the purpose of putting Mr. Gibbons in privacy with the suit that...

After a short time, his Lordship being engaged in the meanwhile on a small Summary Jurisdiction case, Mr. Gibbons again came into Court, apparently to ask his Lordship for some directions. After some remarks had been exchanged in a soft conversational tone of voice, Mr. Gibbons exclaimed—"There are 219 rules. I have tried, God knows how anxiously, to make it suit. God knows I have been intending to do what was right, though, as here as single-minded as I could. I have given up wife, and children, and everything dear to a man, and to be treated in this absurd manner!—His Lordship here sought to interrupt Mr. Gibbons, but that gentleman continued—"I am hanging over it by the machinations of a man—I dare not say what I think. I have petitioned the Governor for six weeks to give no inquiry into his conduct and to show that he be got to..."

IN RE HO LOND VLSO, His Lordship then delivered the following judgment—"Application is now made to me to give my decision on a question of order served in the hearing of a motion filed in this Court to restrain the Official Assignee for the time being from advertising in sale or public auction Lot 320 and Lot 223 £. The advertisement of the sale had appeared in the daily paper by the direction of the Official Assignee in open Court. He had no doubt about it in a case of this kind, and therefore he had come into absolute order restraining the Official Assignee to take it...

Mr. Brereton—And dreams of proceeding against Mr. Gibbons personally.

Mr. Gibbons—Then give me an undertaking that you don't proceed against me and I will put it on the file and not oppose. If you are full of brimful promises I will be satisfied, God...

Mr. Brereton said that the object was mainly to give Mr. Gibbons notice of the suit, and the present sequential. Mr...

His Lordship—I will hear the bench. Mr. Gibbons—If your Lordship leaves the bench I am sorry for it, but when I am and I have... Gibbons argued that the guarantee should an action brought against me, utterly ignorant...

Mr. Brereton complied with this and utterly ignorant of all the facts. By a guarantee in the name of Mr. Brereton's client, as possibly they might change their solicitors and not be bound and not here is a well-known case upon me, and then I wish to bring that so the notice of the court they may hear it in chambers: A £30 to be treated as a target for everyone to shoot at. When I find now this judgment was delivered and I am made responsible for costs? They may sue it is a sheer matter of form.

But about it. Where is the writ Henry Preaton Claims, defendant, $30,730. Is that a sum a man may stand by and find his solicitor liable for and he quiet? Trust the matter as an official matter? Who is going to indemnify so. I am perfectly willing to do everything fair and square, bound...

Before the Judge left the bench, Mr. Gibbons, addressing Mr. Brereton, said—"I don't know what to do about this case of Nursey Kossowjen. I say my right is to come into court and see my rights insisted on constantly. I am not satisfied to go into Chambers. Here the Judge lays down as a rule it should be heard in Chambers and brought into court if he thinks necessary.

On the matters coming on in Chambers, our reporter applied for admission, which was refused. Mr. Justice Snowden explained that as a rule matters taken in Chambers were private, but that he was himself always glad to assist reporters if the parties concerned desired they should be present; that in England the Judge's Chambers were private, and this same rights were reserved to the Judges here as at home—that matters were taken in Chambers for several reasons, first because the proceedings were less expensive, counsel not being allowed unless specially certified for; that the Examinations conducted in Chambers were more diligent; and lastly, that some matters were done there because it was desirable they should be heard in private. As an instance of the latter his Lordship mentioned proceedings in cases which were subsequently to be heard in court before a jury, when, if the preliminary proceedings were taken in public, the jury would have the case before them prejudicially before the trial.

IN THE MATTER OF NURSEY KOSSOWJEN AND OTHERS, BANKRUPTS—RECEIVER'S REPORT.

This case was adjourned from Chambers into Court.

Mr. Hearnton appeared for Mr. Taguer, the Official Assignee; and Mr. Johnson for the National Bank of India.

His Lordship, on taking his seat, said this was a matter which he thought ought to take place daily. The advertisement of the sale had appeared in the daily paper by the direction of the Official Assignee in open Court. He had no doubt about it in a case of this kind, and therefore he had come into absolute order restraining the Official Assignee to take it...

Mr. Gibbons then made his report. He said...

A discussion of a purely legal character then took place with reference to the process of the sale of the two North China Insurance shares. The National Bank of India had passed a prohibitory order with reference to those shares, and refused to come into the book-entry. Finally the matter was adjourned until the money should come into court.

At this time being present. Application was then made by the plaintiff's solicitor that the 15th July he presented a report in Chambers for costs, and I reserved to question for consideration. The Court is always reluctant to give costs against an Official Assignee who has acted through too much zeal and as he bona fide what misled by the circumstances. It must be understood that the present Official Assignee inherited the bankruptcy from his predecessor and is not responsible for the whole conduct of the business. On the 3rd December, 1879, there was a letter received from parties in Bombay to whom it appeared the bankrupts were indebted in Rs. 199,215. This motion was heard by Mr. Francis, the Acting Puisne Judge, and was refused with costs. The circumstances being stated, an assignment to a bond de gracia supplied, and with the exception of two lots, amounting together to Rs. 88,000, there were no creditors who had proved or claims in Hongkong. There was then standing $652 respecting which he asked for directions as to the course and proposed it should receive it. That matter being the solicitor for some clients who had obtained execution against the bankrupt and registered, who was then ready to proceed against the Hongkong and Shanghai Bank for $14,780. A letter was received from parties in Bombay to whom it appeared the bankrupts were indebted in a large sum. On the 20th August, 1879, from other parties to whom the legal estate was vested, it was stated that the firm was indebted in Rs. 137,973 for goods supplied, and with the exception of two lots, amounting together to Rs. 88,000, there were no creditors who had proved or claims in Hongkong. There was then standing $652 respecting which he asked for directions as to the course and proposed it should receive it.

His Lordship—You must not say that. Mr. Gibbons—But I do say it. He disobeyed...

Mr. Brereton said the case was rather peculiar. The intricacies were many. The bankrupts here and in Bombay were adjudicated on the same day. The Official Assignee's adjudication is to be tested in the Official Assignee's hands. They were made bankrupts in Bombay, and it was found that the more prudent course would be to make the whole winding up take place in Bombay, most of the creditors and assets being there.

His Lordship—No: in Chambers.

There being an Official Assignee in Bombay and a Chief Assignee here caused a little complication. As to the application to proceed against the Hongkong and Shanghai Banking Corporation, that the sum was $39,000 odd instead of $134,000. That had been going on for some time and the other day they went before the Chief Justice in Chambers in an interlocutory proceeding.

His Lordship—Then I will adjourn into Court.

Mr. Gibbons—As far as your Lordship is concerned, I will always attend as a matter of courtesy anywhere where your Lordship chooses to sit, even when his Lordship suggested that Mr. Gibbons, as being the Official Assignee of the bankrupts in Hongkong, should be made a party to the suit. Shall adjourn into court.

His Lordship—As a plaintiff?

Mr. Brereton—Defendant, I think, was mentioned; perhaps plaintiff would have better.

His Lordship—Now, Mr. Gibbons, really it is not courteous to the court to express your dissent. I am going to sit in Chambers now. I am going to exercise my discretion. When I show it is a proper case to come into court I will lay down rule that all matters are to be taken in Chambers (unless by consent) and be at once presented.

His Lordship—As a consequence of that I made Mr. Gibbons party to the suit. I have told Mr. Gibbons that if he will instruct me or my partner, Mr. Wotton, to appear for him in the suit I will give him a guarantee to hold him indemnified against any claim. I will costs in court.

Page 329

4. F. Gibbons to Acting Colonial Secretary.

Copy. The Honble H Secretary L.L.C.

Acting Colonial Secretary

Sir,

I have the honour to acknowledge the receipt of your letter No. 1447 dated 29th October, 1880, informing me that the Governor has thought my proceedings should be dealt with under Chapter 18 Section II of the Colonial Regulations, and further that the Chief Justice and Mr. Justice Snowden have forwarded a letter charging me with having made observations in open Court; and also that His Excellency has...

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