MARTIN V. R.S. EXTON & CO. PTY. LTD.

ORIGINAL _

IN THE HIGH COURT OF AUSTRALIA |

ind

Lisp

REASONS FOR JUDGMENT

A FILED AGEP. L955

FIBBANE REGISTRY

Judgment delivered at... SYDNEY. —

J. 3 Gourley, Gort. Print., Ma.

cm/s on. Sixth day of

MARTIN

Vv.

RS. EXTON & CO, PTY. LTD,

ORDER

Appeal dismissed, Costs to be taxed and to be paid in the same manner as shall be ordered by the Supreme Court of Queensland with respect to the reserved

costs of the application to that Court to set aside the

bankruptcy notice.

i '

JUDGMENT

MARTIN

RS. EXTON & CO. PTY. LTD.

McTIERNAN J.

JUDGMENT

MARTIN

R.S. EXTON & CO. PLY. LTD.

MoTIERNAN J.

In my opinion this appeal should be dismissed with costs. The grounds of the appeal raise the question whether the respondent had an interest proportionate to the judgment debt upon which the bankruptcy notice is founded in the fund of £600, which the appellant had set aside for the benefit of his creditors and which was held in trust by his solicitor. If the respondent had such an interest, the judgment debt, so it was contended, would have been pro tanto satisfied before the issue of the bankruptcy notice and the bankruptcy notice would have been void because it was issued for an amount in excess of the debt due by the appellant to the respondent.

It was contended for the appellant that the respondent obtained the interest, mentioned above, under an arrangement made by the appellant and a number of his ereditors for the liquidation of his debts. The evidence shows that the respondent appointed a representative to the committee of creditors constituted under the arrange— ment. 'The purposes of the committee were not clearly shown by the evidence. It was said that one of its purposes was to distribute rateably among the creditors the funds held by the appellant's solicitor upon trust for the creditor, and any other moneys paid by the appellant to that fund. In my opinion the appellant's contention