Re S, an Arranging Debtor v ex parte The Governors and Company of The Bank of Ireland

• Jurisdiction: Ireland
• Judgment Date: 07 April 1886
• Date: 07 April 1886
• Court: Bankruptcy Court (Ireland)

Brankruptcy

Before Boyd, J.

IN RE S., AN ARRANGING DEBTOR;

and

EX PARTE THE GOVERNORS AND COMPANY OF THE BANK OF IRELAND

Killen, a BankruptUNK 15 L. R. Ir. 388.

The National Insurance and Investment Association v. BestENR 2 H. & N. 605.

Brown v. PriceUNK 27 L. J., C. P. 290.

Hawkins v. CoulthurstENR 5 B. & S. 343.

In re Miller; ex parte Wardley 6 Ch. Div. 790.

Lancaster's Case Albert and European Arbitration Cases, p. 76.

35 & 36 Vict. c. 58, s. 47 Assignment of policy of assurance Covenant to pay premiums Value of Mode of ascertainment 20 & 21 Vict. c. 60, s. 252, explained.

VOL. XVII.] CHANCERY 567 IN RE S., AN ARRANGING DEBTOR; En PARTE THE GOVERNORS Bankruptcy. AND COMPANY OF THE BANK OF IRELAND (1). 1886. March 30. April35 4. 36 Vict. c. 58, s. 47-Assignment of policy of assurance-Covenant to 7. pay premiums-Value of-Mode of ascertainment-20 4. 21 Viet. c. 60, s. 252, explained. Where, in an arrangement matter, a creditor held policies of insurance, which the arranging debtor had covenanted to keep up : Held, that the value of the creditors' interest in the covenant was the sum which the Insurance Company would accept as a present payment, by way of commutation of the annual premiums, to keep the policies subsisting. MOTION on behalf of the Governors and Company of the Bank of Ireland that, upon the hearing of the Chief Clerk's report, the value of the said Bank's interest in the respective covenants to pay premiums mentioned in the said report should be valued on the basis of a discount of 4 per cent., or, in the alternative, that the said values should be declared to be the amounts which the Insurance Company would accept as a single premium, in lieu of all further premiums on said policies respectively, and that the said report of the Chief Clerk might be varied accordingly. Upon the 10th December, 1880, S., the arranging debtor, by four deeds, assigned to the Governors and Company of the Bank of Ireland four policies of assurance upon his own life. Each of the said assignments contained a covenant by S. to pay the premiums on the said policies so assigned to the Bank. S. subsequently carried an arrangement with his creditors, and the said Bank proved in the said matter for the sum of 10,340 9s. 11d., but valued certain securities held by them, including the value of the said four policies, at the sum of 2400, and were admitted for dividend for the sum of 7940 9s. 11d., being the amount of their debt, less the value of their said secuÂÂrities ; and, by the said proof, the said Bank reserved the right,. (1) Before BOYD, S. 5O8 LAW REPORTS (IRELAND). EL. R. 1. Bankruptcy. under the 47th section of the Bankruptcy (Ireland) Amendment 1886. Act 1872 (35 & 36 Yid. c. 58), to prove for the value of the , rn re covenant contained in the said assignment to pay the premiums S. ; - parte on the said policies, and to deal with the same in such a wadyecais BANK OF...