Re P.M.P.A. (Longmile) Ltd
|Mr. Justice Murphy
|01 January 1993
|1992 WJSC-HC 4063
|No. 2333P/1984,[1984 No. 2333P]
|01 January 1993
1992 WJSC-HC 4063
THE HIGH COURT
MORGAN HILL, IN RE PARKER 1894
MERCANTILE LAW (AMDT) ACT 1856 S5
Claims - Compromise - Scheme - Court - Approval - Associated companies in liquidation - Companies being joint guarantors for payment of principal sum - Each company liable for payment of entire sum - Equality between guarantors - Estimation of final dividends - (1984/2333 P - Murphy J. - 24/8/92) -
|In re P.M.P.A. Garage (Longmile) Ltd.|
Judgment of Mr. Justice Murphy delivered the 24th day of August 1992.
This is an application to sanction a compromise between a number of Companies all of which were associated with the P.M.P.A. Insurance Company Limited and are now in liquidation. The proposed compromise relates to the rights of those Companies by way of subrogation or otherwise arising from their liability on foot of a guarantee dated the 31st December 1982 in favour of the Private Motorists" Protection Society Limited (P.M.P.S.). The facts with regard to the application are set out in the Affidavit of Mr. David B. Deasy the Official Liquidator of P.M.P.A. Garage (Longmile) Limited and the exhibits referred to therein. The validity of the guarantee aforesaid was the subject-matter of preceedings before this Court and Judgments given therein on the 4th of March 1991 and the 26th of April 1991.
On the 19th of December 1983 when an Order was made for the winding-up of the P.M.P.S. by the Court, it had advanced substantial sums of money to 21 of the 44 Companies who had entered into the guarantee aforesaid. The total sum due on foot of the guarantee - whether by the primary debtor or the guarantors - amounted to £2,239,717. A sum of £260,000 has been received by P.M.P.S. from P.M.P.A. Car Leasing Limited with the result that calculations for the purposes of the present application were based on a sum outstanding of £1,979,717.19.
The immediate practical difficulty is that it is impossible to say with any degree of precision the amount of the dividend which any of the guaranteeing Companies would be in a position to pay. It might be some years before this precise figure could be ascertained. The essential feature of the compromise for which the sanction of the Court is sought is...
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