Cork, Bandon and South Coast Railway Company v County Council of the County of Cork

CourtHouse of Lords (Ireland)
Judgment Date01 January 1921
Date01 January 1921
H. of L.,
Cork, Bandon and South Coast Railway Company
and County Council of the County of Cork

Construction - A extension shares - Full amount of dividends -Baronial guarantee - During period after opening - Charge on "extension railway" and "net receipts" - After payment of dividend - Priority - Repayment to baronies - Expiration of period - Cesser of contributions - Provisions as to charge and contribution to cease for ever - Sums due to baronies - Whether payable before dividend on A extension shares - Statutory remedy-Ilen Valley Railway (Bantry Extension) Act, 1878 (41 42 Vict., c. ccxvii.), ss. 3, 32, 33, 34, 37, 45.

By an Act passed in 1878 a railway company, whose name was subsequently changed to that of the appellants, was empowered to make an extension railway from D. to B., and authorised to raise further separate capital. By its interpretation section the expression "net receipts" meant "the portion (if any) of the total receipts or revenue from the extension railway remaining after defraying the management and working expenses thereof, and paying the interest upon all mortgages and debenture stock and rent charges (if any)." By s. 8 —The capital for the extension railway consisted of class A or baronial guaranteed extension shares, and B or ordinary extension shares. By s. 32 —If in any half-year after the opening of the extension railway and during the period of thirty-five years next after such opening the net receipts as ascertained in manner provided by the Act should not amount to a sum equal to a dividend at 5 per cent. upon the £40,000 A shares, then the full amount or deficiency of such dividend should become payable by specified baronies. "Provided always that the said net receipts (if any) shall from time to time during the said period be applied to the payment of the said dividend in priority to any other purpose whatsoever." By s. 33 —Moneys paid or contributed by the baronies should, as from the dates of payment, be charged upon the extension railway, and the net receipts from the same remaining after payment of the dividend on the A shares as aforesaid, until repaid, and shall be so charged next after the mortgages, debenture stock and rent-charges (if any), and in priority to any other debt due by the company; and the said moneys so charged shall be paid to the treasurer for the time being of the said county, in manner hereinafter provided;"and by s. 34 provisions were made for ascertaining...

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