Re Irish Employers Mutual Insurance Association Ltd
Jurisdiction | Ireland |
Judgment Date | 01 January 1955 |
Date | 01 January 1955 |
Court | Supreme Court |
Priority of payments -Right of Commissioners of Public Works -Mutual insurance association in liquidation -Claim by Commissioners of Public Works to payment in priority to other creditors - Preferential payments - Whether common law prerogative right of Crown to priority of payment applicable to sums payable for benefit of Central Fund -Rights of members of mutual association to priority inter se - Principles for ascertaining whether the Commissioners acting as agents of the State or as public servants - Finance Act, 1924 (No. 27 of 1924) s. 38 - Preferential Payments in Bankruptcy (Ir.) Act, 1889 (52 and 53 Vict., c. 60), s. 4 - Constitution of the Irish Free State (Saorstat Eireann) Act, 1922 (No. 1 of 1922) -Constitution of Ireland.
By order of the High Court, dated the 4th July, 1948, it was ordered that the Irish Employers Mutual Insurance Association Limited, a company limited by guarantee, and having no share capital, should be wound up compulsorily. The total claims of creditors anticipated to be valid amounted to £64,771 2s.. 11d.., of which £21,353 7s. 5d.. was claimed by the Commissioners of Public Works on account of moneys which the Commissioners had been compelled to pay on foot of liabilities in respect of which they held insurance cover entitling them to indemnification by the Association. This sum was paid by the Commissioners from funds voted to them for the purpose by annual Appropriation Acts. In the course of the winding up, the Commissioners of Public Works claimed the amount due to them as payable in priority to the other creditors on the basis that they were entitled to statutory priority, or alternatively to priority of payment by virtue of the common law prerogative of priority accorded to Crown debts. Held, by Kingsmill Moore J. 1, That s. 38, sub-s. 2, of the Finance Act, 1924, provides no basis for the claim to the priority sought to be established by the Commissioners of Public Works. 2, The Commissioners of Public Works, though in general holding the status of servants of the State, may, in the execution of certain duties, act as servants of the public in which instance they are not entitled to the privileges and protections which may apply to servants of the State. (Principles to be followed in ascertaining whether the Commissioners of Public Works in the execution of their duty are to be considered as acting as servants of the State or as public...
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