Freaney v Bank of Ireland

JurisdictionIreland
Judgment Date30 July 1975
Date30 July 1975
Docket Number[1973 No. 80 Sp.]
CourtHigh Court
(H.C.)
Freaney
and
Bank of Ireland

Mutual debts between company and banker - Whether banker had right of set off - Irish Bankrupt and Insolvent Act, 1857 (20 21 Vict., c. 60), s. 251 - Supreme Court of Judicature Act (Ir.), 1877 (40 41 Vict., c. 57), s. 27 - Companies Act, 1963 (No. 33), ss. 254, 284.

The company carried on business as import and export agents. When the company's bankers heard that the company was going to be wound up, they opened a suspense account in the company's name. On the 14th December, 1970, the company resolved to be wound up voluntarily, and the applicant was appointed as liquidator. The company was insolvent. In December, 1969, the company's bankers had requested the customs authorities to "accept as cash" cheques drawn by the company to the extent of £250 for any one day up to the 30th June, 1970; and the bankers subsequently extended the request to cover cheques drawn after that date. The company drew cheques payable to the customs authorities but, owing to a bank strike, they were not presented for payment until after the date of the winding up; the bankers paid these cheques and debited the company's suspense account with the amount thereof. Certain cheques payable to the company were lodged to the credit of its current account but were dishonoured when presented for payment; the bankers also debited the suspense account with the amount of these cheques. At the date of the winding up the company's current account was in credit and subsequently these moneys were transferred by the bank to the credit of a deposit account in the name of the company. The amount to the credit of the company's deposit account exceeded the amount to the debit of its suspense account. The liquidator...

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2 cases
  • Re Irish Shipping Ltd
    • Ireland
    • High Court
    • 1 January 1986
    ...1950 NIR 132 CLAYTONS CASE 1816 1 MER 572, (1814–1823) 35 AER 1 COMPANIES ACT 1963 S284 COMPANIES ACTS 1963–1983 FREANEY V BANK OF IRELAND 1975 IR 376 HALLETTS ESTATE 1880 13 CH D 696 HEALY V COMMISIONERS OF INTERNAL REVENUE (US) 1952 345 US 278 PALMER V DAY 1895 2 QBD 618 THOMPSON V CLYDE......
  • Citroen Sales (Ireland) Ltd v Ashenhurst Williams & Company Ltd
    • Ireland
    • Supreme Court
    • 1 May 1993
    ...Liquidation) and Dieselectrix Limited (In Voluntary Liquidation) Respondents Cases mentioned in this report:— Freaney v. Bank of Ireland [1975] I.R. 376. Re Halt Garage (1964) Limited [1982] 3 All E.R. 1016. Kelleher v. Continental Irish Meats Limited (Unreported, High Court, Lardner J., 9t......

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