Port Moresby Law Suit.

Action Against Liquidator.

From Our Own Correspondent.

Pt. Moresby, May 5.

MUCH interest was taken in a case, which came up for hearing before Mr. Justice Gore, in the Central Court of Papua, on April 18, when the B.N.G. Trading Co. and Lewis Lett ap plied for an injunction restraining Cap tain Fitch, managing director of Steamships Trading Co., from complet ing the sale of a mill, as liquidator, to C. McKinnon, for £800, alleging fraud and collusion, and that the mill was being sold for less than its value. There was an alternative claim that he was never properly appointed.

Mr. R. D. Bertie, of Port Moresby, appeared for the plaintiffs, and Mr, J.

P. Guinane, of Townsville, for the de fendant.

The defendant’s council brought for ward a point of law, and Judge Gore ruled that the B.N.G. Trading Co., as creditor, had no locus standi and could not proceed. The case then proceeded with Lett, formerly manager of Romilly sawmills, as plaintiff.

Defendant’s counsel asked that the question of validity be taken first. This was agreed to, and after a great deal of argument a verdict was given for the plaintiff on April 26. Further argu ment followed on the question of costs, and resulted in an order for £25 against the unsuccessful plaintiff; £206 to be paid by Port Romilly Sawmills Limited to the successful plaintiff; and no further order.

The verdict on the point of invalid ity disposed of the other charges against the liquidator in this action.

Further litigation is pending.