Midlane Bros (Aust) Limited v Reid [1930] HCA 31

44 C.L.R.] OF AUSTRALIA.

(HIGH COURT OF AUSTRALIA.]

MIDLANE BROS. (AUST.) LIMITED APPELLANT ;

AND . ResponpEnts.

REID AND OTHERS

ON APPEAL FROM THE COURT OF BANKRUPTCY, DISTRICT OF SOUTH AUSTRALIA.

Bankruptey—Money lent to debtor by wife—Partnership—Novation—Agreement H, C, or A.

between partners for wife to receive share of profits—Statutory deed of assignment 1930, by firm—No postponement of wife's claim—Bankruptcy Act 1924-1928 (No. 37 = W~ of 1924—No. 39 of 1928), secs, 85-86.* ADELAIDE, Sept. 18, 22. A wife lent to her husband several sums of money for the purpose of his business, and it was agreed between them that the husband should pay six @4¥an Dufty, per cent interest. The husband subsequently took three of his sons into Pixon JJ.

partnership in the business. The circumstances showed that the father and sons intended that they should be responsible to the wife for the amount of her debt, and the wife realized, and consented to, the fact that the firm had taken over this responsibility. 'The articles of partnership, to which the wife was not a party, provided that she should receive a share of the net profits of the business but only during the time of and in consideration of her leaving her fixed deposit in the business. 'The partners executed a deed of assign- ment pursuant to Part XI, of the Bankruptcy Act 1924-1928, and the wife

*The Bankruptcy Act 1924-1928 rupt, who was engaged or about to

provides, by sec. 85 (1), that "any money of the wife of a bank- ruptient . . . by her to him shall be treated as assets of his estate, and the wife shall not be entitled to claim any dividend as a creditor in respect of any such money . . . until all claims of his other creditors for valu- able consideration in money or money's- worth have been satisfied." Sec. 86 provides that "where money has been advanced, by way of loan, to a bank-