The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1873-12-20 00:00:00

LOCAL HANKRUPTCY APPEAL.

Before Sir J. C. Bacon, Chief Judge.

Ex-pi: c Pomo, iv BOWEN.

'lbis we. an appeal from an order of the
County Court Judge of Stonrbridge, whereby
the trustee, Mr. Powie, was ordered to pay
within fourteen days the sum of £l2O to live
working-men, as wages, they having a prefer-
ential claim under the 32nd section of the Act;
but he had refused to do so, on the ground that
all the money he had in hand, and which amoun-
ted to the sun of £220, was required to investi-
gate the affairs of the debtor, and now appealed
to this Court

Mr. Bagley, (instructediby Messrs. Combe and
Wainwright, of Staple Lou. Lout:1(111j appeared
for the sppellaut. and Mr. Winslow, (instructed
by Messrs. Bernard and King, Solicitor, Stour.
bridge), for respondent.
Mr. Bagley, in opening the ones, did not deny
that the men in queston had a preferential claim
up to £2O, but contended that the trustee power
to withold ita payment until after he had tho-
roughly investigated the affairs of the debtor,
and he poi in aflidavita from hitueolf and others
to show the that procose wos till going on.
The liquidxting debtor, who failed in the begin-
ning of the present year, was what was called
in that part of the country • glass-master, and
at the time of the appointment of the trustee on
the 14th of March, the claim was made by five
persons in his employment. The trustee re-
quired some time to investigate this claim, but
it was substantially established by the men, and
and upm an application on their behalf, on the
3rd of July, the Comity Court Judge, sitting in
bankruptcy, made an order that the trustee set
aside or retain in hands the sum of £l2O to pay
the men in question. Subseqently, the trustee
obtained an order to examine the debtor, and
found his acconnts to be most informal, irregular
and unsatisfactory.
His Lordship: What could any irregularity
in the accounts of the debtor have to do with the
claim of these men?

Mr. Bagley: The trustee in the execution of
his duty was bound to investigate his affairs tho.
roughly for the benefit of all his creditors, and
if this £l2O were paid he would have no money
to eonduet it, the whole sum in his hands being
but £220. He knew very well that in the pre.
sent day there was a strong feeling and even
prejudice with respect to the rights of workmen.
His Lordship said that he must repudiate
any such observation as regarded himself, and
could not have it said against any other person.
Mr. Bagley said that the case really came to
this, that the trustee was called upon to pay
these men without making sufficient investiga-
tion. On the 27th of July an absolute orler
was made t) give full particulars of the claims,
and pay over the money, from, which order this
appeal was made. All that the trustee asked
was fair and reasonable time to make the in.
He:had no personal interest in the mat-
ter himself ; but the fact was, that if he had to
pay over this amount the investigation would
never be made.

His Lordship, without calling upon Mr. Wins-
low, said that there was not a shadow of reason
for what the trustee askt d. The law said that
the workmen of a bankrupt should have a pri•
ority, and on the Bth of July the iearned Judge
below ordered £l2O to be severed from the rest
of the estate to be handed over to these five
workmen. From that moment it was no longer
the money of the trustee, and he had not heard
a word in Mr. Powis's affidavit which showed
that he had any 'just claim to keep it for the
purpose of expending in any investigation what-
ever. Why should they wait untill the estate
was all wasted probably a futile investigation ?
The order had not been made presumably, with-
out a full investigation, in which all parties sot
their case before the learned Registar. That
lea rued Judge was of opinion, and could have
made no other order than that the workmen
were entitled to be paid their wages, and he (the
learned Judge) should, on the present ease be-
fore him, certainly not alter it. The appeal
mast be dismissed.

Mr. Winslow: Aud with costs, I presume,
my lord.
His Lordship : Only one set of. costs.
_

The appeal 'was con:equently dismissed, the
respondents being allowed the costs incurred by
them in the Court below.