092-NLR-NLR-V-01-In-the-Matter-of-the-Insolvent-Estate-of-JOHN-RAYNOR-MACQUINE-PRESSLIE.pdf
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In the Matter of the Insolvent Estate of JOHN RAYNORMACQUINE PRESSLIE.
D. C., Badulla, 86.
Insolvency—Assignee’s report—Practice of tradesmen allowing credit to personsof slender means.
The District Court should, in all cases of insolvency, insist on havinga report from the assignee as to the conduct and dealings of the insolventbefore adjudicating on his application- for a certificate.
Observations on tho improper practice of tradesmen allowing creditto persons of slender means, and thus encouraging them to run up heavybills which they have no prospect of paying.
rpHE facts of the case are stated in the judgment of his Lordshipthe Chief Justice.
Sampayo, for appellant.
Aserappa, for respondent.
10th October, 1895. Bonser, C. J.—
In this case the insolvent, Mr. Presslie, appears to have been the
Superintendent of Warburton estate in Badulla, and was in the
VOL. I.2 T
1895.
October 10.
BONSEB, C.J.
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IMS.receipt of i salary, first of Rs. 50 end then of Rs. 60 a month, on
Oetobtr io. which he was supposed to keep himself. On that salary heBomskb, cJ. managed to run up bills with various tradesmen to a consider*able amount. One of the principal creditors was Messrs. WalkerA Oreig, of Badulla, who are general storekeepers, and who allowedhim to run up a bill for eatables and drinkables and otherarticles of over Rs. 600 in the course of a few months. Previouslyto that, he appears to have been in receipt of a larger salary ofRs 140 a month, and during that time he ran up a bill with anotherstorekeeper of Badulla of over Rs. 700. Whilst in receipt of thismunificent salary of Rs. 50 a month, he also ran up an account withone Perera of over Rs. 100, with the Colombo Apothecaries* Com-pany of over Rs. 200—for what, does not appear—and with CargillA Co. and other persons for smaller sums. He was ultimately madeinsolvent on his own petition. Only two of his creditors proved:Walker A Greig and another creditor for over Rs. 700, one PackirSaibo. An assignee was appointed, but he has made no report.We consider that in all cases a District Court should insist on havinga report from the assignee as to the conduct and dealings of theinsolvent before adjudicating on his application for a certificate.
In this case the grant of a certificate was opposed by Messrs.Walker A Greig, on the ground that the insolvent had behaved withreckleBBness in contracting these debts—with Buch recklessnessas to amount to dishonesty.
I must say that if the insolvent was reckless to the verge ofdishonesty, he was aided and abetted by his opposing creditors,Messrs. Walker A Greig.
I have no sympathy with creditors who allow a man in receiptof a wretched salary like this to run up such a bill as this. Ifthey lose their money they have only themselves to thank for it.But I think it is desirable that a District Court should not adjudicateon the question of a certificate without a report from the assignee.
Therefore, without going into the merits of the case at all, wedirect that the order granting a certificate of the third class bedischarged, in order that the District Conrt may re-consider theapplication on fuller and better materials than it had before itwhen it made the order.
The insolvent will have protection nntil the application hasbeen disposed of.
Withxm, J. Withers, J. —
I entirely concur in and endorse all the observations of my lordon the improper practice of tradesmen in allowing credit topersons of the slenderest means, and encouraging them to run upheavy bills which they have no present prospect of paying.