And Thompson Company (Carriers)Ltd; Charles McIntosh Company, Ltd, Petitioners; Thompson Company (Carriers)Ltd, Respondents (No. 2)
Jurisdiction | Ireland |
Judgment Date | 01 January 1934 |
Date | 01 January 1934 |
Court | Supreme Court (Irish Free State) |
Compulsory liquidation - Insolvency - Claim of debenture holder -Priority - Moneys due to the Central Fund -Debts due to the State - Crown debts - Companies (Consolidation) Act, 1908 (8 Ed. 7, c. 69), s.209 (1) and (2).
A company, being indebted to W. for goods supplied, gave him a first debenture, charging the property of the company with the amount due to him (£375 10s. 11d.) and interest thereon. The company having made default in payment of the instalments, the amount scoured became due and payable. The company being unable to pay the amount in cash handed a decree for £260 (which they had obtained against a County Council for malicious injuries) to W's. solicitors instructing them to collect the amount and apply it in reduction of the sum due to W.Payment of this £260 was obtained on 4th April, 1928. An order had been made on 27th June, 1927, by Meredith, J., that the company be wound up by the Court, and a Liquidator had been appointed. When W.'s solicitors obtained payment of the £260 from the County Council they notified the Liquidator, who, on 23rd July, 1928, obtained an order from Meredith, J., directing that the amount be brought into Court subject to the lien of W. thereon. On the same day the Liquidator obtained liberty to pay a second debenture holder the amount of his claim and costs, the Liquidator stating that the funds would be sufficient to pay all preferential claims. W. did not consent to this payment being made. The Liquidator, in stating that the funds would be sufficient to pay all preferential claims, was relying on a decision of Meredith, J., given on 27th April, 1931, that the claim of the Minister for Finance for fines inflicted on the company for offences under the Motor Car Acts and Roads Acts was not payable in the winding-up in priority to the claims of the general creditors of the company. But this decision was...
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