Re C, an Arranging Debtor
| Jurisdiction | Ireland |
| Judgment Date | 01 January 1926 |
| Date | 01 January 1926 |
| Court | Supreme Court (Irish Free State) |
Acceptance of arrangement by statutory majority of creditors - Whether "reasonable and proper to be executed under the direction of the Court" - Discretion of Bankruptcy Judge - Irish Bankrupt and Insolvent Act, 1857 ( 20 21 Vict., c. 60), s. 353.
C., a retail trader, finding himself in difficulties in the year 1923, wrote to his principal creditors (a group of firms who supplied him with goods) stating his position. They agreed not to press their claims then, and C. continued to trade. His position not improving, he wrote in the following year to all his creditors informing them of his position, and offered to pay 2s. in the £1. This offer was not accepted, and C. continued to trade, but in the following year he was compelled to take protection. His statement showed a large number of creditors, a very large total debt, and trivial assets not likely to produce more than about 8d. in the £1. He offered (with the assistance of friends) to pay 2s. in the £1, and this was accepted by a large majority in number of his creditors and of more than the statutory three-fifths in value, but was opposed by other creditors (including the group of firms who had known of his position since 1923), they alleging reckless trading on C.'s part since 1923. C. had not kept proper books of account, but from his bank books and his invoices the result of his trading could be ascertained...
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Re Nc
...in that case Maguire C.J. (at page 240) quoted the following passage from the judgment of Kennedy C.J. in In Re C., an Arranging Debtor [1926] I.R. 14 as being of a great deal of help in determining in general the nature of the grounds upon which an offer might be rejected as being unreason......
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Re H., an Arranging Debtor
...accepting the proposal of the arranging debtor and that the order of adjudication must be discharged. In re C., An Arranging DebtorIR [1926] I.R. 14 applied. ...
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Re McKeown
... ... In re McKeown Statutory majority of creditors in favour of debtor's proposal - Arrangement rejected by the Court and the matter adjourned into Bankruptcy - Costs of petitioner - Form of order as to costs - Irish ... It never was the law nor the practice that the full costs incurred by an arranging debtor where the arrangement was not carried should be allow cd in the bankruptcy. Form of order as to such costs prescribed ... ...