Pérusse v. Stafford

The appellants had purchased, and paid $1,600 for, the stock-in-trade of one Crouse at a bulk sale, the requirements of the Nova Scotia Bulk Sales Act (R.S.N.S., 1923, c. 202) not having been complied with. They afterwards sold the goods for $2,000, which proceeds were not ear-marked and were disposed of by them in the usual course of business. The questions at issue in this case were whether the bulk sale was fraudulent and utterly void under the Bulk Sales Act, and whether the trustee in bankruptcy could recover from the appellants the sum of $2,000, being an amount equal to the amount realized on the resale of the stock-in-trade. Both courts answered these questions adversely to the appellants, the court in banco as to the second question basing its judgment on sections 60 and 65 of The Bankruptcy Act. The appellants now seek leave to appeal to this court. Held, that leave to appeal should be granted.

Among other questions, ,the meaning of the word "settlements"

in section 60 of the Bankruptcy Act appears to be involved in this appeal, the point being whether this word should receive the same construction as that given to it under the English Bankruptcy Act ([19141 4 & 5 Geo. V, c. 59, s.

Under the circumstances of the case, the granting of a stay of proceedings was made conditional upon the appellants giving security that they would pay the amount adjudged against them in the event of their appeal being dismissed.

APPLICATION for special leave to appeal under section 74 (3) of the Bankruptcy Act from a judgment of the Supreme Court of Nova Scotia sitting in banco.

Application granted.

A. C. Hill K.C. for the application.

E. F. Newcombe contra.

*PRESENT:-Mignault J. :n Chambers.