MCDONALD V. MORLAE AIR LINE LTD AND RAYMOND PARER 68/1931

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Mc DONALD

MORLAB AIR LINE LIMITED AND RAYMOND __PARER

RICH J. STARKE J. JUDGMENT DIXON J.

McTIERNAN J.

Me DONALD

MORLAE AIR LINE LIMITED AND RAYMOND _WARER

This is an appeal by a petdtioning creditor from an order of the Central Court of Papua made by Gore J, dismissing a petition for the compulsory winding up of the respondent Company. The appeal is brought under section 43 of the Papua Act 1905-1924 and under the Appeal Ordinance of 1909, The appeal was not argued by Counsel but the parties submitted their contentions in writing pursuant to section 9 of the Ordinance,

It appears that in October 1928 the appellant and the

respondent Farer formed a partnership for the purpose of conducting an air service in and from Papua and the Mandated Territory of New Guinea, On 2nd July 1929 the respondent Company was incorporated under the Companies Ordinance 1912-1926 of Papua.

It took over the business and assets of the partnership and the greater part of its share capital was issued to the partners.

The 'appellant came to hold 3,301 fully paid shares of £1,0.0. each and the respondent Parer 3,000. The only other substantial shareholder had only 500 shares. Between the beginning of March and the end of July 1930 the appellant provided sums of money amounting to a little over £90,0.0. for labour and material used

at the agrodrome at Port Moresby and for certain hotel expenses,

of the respondent Parer. According to the claim made by the appellant in the present proceedings,the sums so provided were lent to or paid to the use of the respondent Company and constitute a debt owing by it to him. The respondents denied that the Company was indebted to the appellant in these sums or ina further sum of £40,0.0 said to be the uppaid balance of principal and interest upon an advance made by him on llth May 1929 before the formation of the Company which the appellant seems,nevertheless, to have claimed as a debt due by the Company,perhaps setting up some suggested novation, Gore J.,however, was " quite satisfied a debt subsisted " and the