The East Holyford Mining Company v The National Bank

JurisdictionIreland
Judgment Date01 May 1871
Date01 May 1871
CourtCommon Pleas Division (Ireland)

Com. Pleas.

THE EAST HOLYFORD MINING COMPANY
and

THE NATIONAL BANK.

Grant v. NorwayENR 10 C. B. 665.

Burns v. PennellENR 2 H. L. C. 497.

Holt's CaseENR 22 Beav. 48.

D'Arcy v. Tamar Railway CompanyELR L. R. 2 Ex. 158.

Ridley v. Plymouth Grinding CompanyENR 2 Ex. 711, 717.

Ernest v. NichollsENR 6 H. L. C. 401.

Howbeach Company v. TeagueENR 5 H. & N. 151.

Woolaston's CaseENR 4 De G. & J. 437.

Coleman v. RichesENR 16 C. B. 104.

Eyre v. M'DowellUNK 14 Ir. C. L. R. 314.

Reese River Mining Company v. SmithELR L. R. 4 H. L. 64; 2 Ch. App. 604.

Spackman v. EvansELR L. R. 3 H. L. 171.

Serrell v. Derbyshire CompanyENR 9 C. B. 811.

Kelner v. BaxterELR L. R. 2 C. P. 174.

The County Life Assurance CompanyELR L. R. 5 Ch. App. 288.

The Royal British Bank v. Turquand 6 E. & Bl. 327.

Wales Assurance Company v. HardingENR E. B. & E. 183.

Smith v. Hull Glass Co.ENR 11 C. B. 897, 928.

National Exchange Co. v. Drew 2 Macqu. H. L. C. 103.

Barwick v. English Joint Stock BankELR L. R. 2 Ex. 259.

The Royal British Bank v. TurquandENRENR 5 E. & B. 248; in error, 6 E. & b. 327.

In re County Life Assurance Co.ELR L. R. 5 Ch. App. 288.

Registered Company — Acting Directors — Banker — Payment of Cheques.

508 Exchequer. 1871. O'BEIRNE v. MAHON. THE IRISH REPORTS. [I. R. As to the omission to lodge the requisition, it occurred through mere inadvertence. We ought, at all events, to be allowed to retain the plea of set-off, and so much of the other plea as relates to the sum of £61 108., as to which it is simply a plea of payment. PER Cullum. Let the first plea be set aside. No rule on the other part of the motion. Attorney for the Plaintiff : Plaintiff in person. Attorney for the Defendant : A. 0. B. O'Connor. - Com. Pleas. THE EAST HOLYFORD MINING COMPANY v. THE 1871. NATIONAL BANK. Registered Company-Acting Directors-Banker-Payment of Cheques. The banker of a public registered Company is not bound to inquire whether the persons drawing cheques, as directors, against the Company's bank account, were legally appointed directors, or authorized to draw the cheques, if there were nothing on the face of the transactions calculated to excite suspicion, or inconsistent witb the Company's Articles of Association. Royal British Bank v. Turquand (6 E. & B. 327), and In re County Life Assurance Company (L. R. 5 Ch. App. 288), observed upon and followed. ACTION by the Company through the Official liquidator against the Defendant, as Public Officer of the National Bank, to recover the sum of I3970 lodged in the Bank by the several parties who applied for shares in the company ; the Plaintiff alleging that although the Bank paid the money upon cheques purporting to be drawn by directors of the company, yet the persons who drew the cheques were unauthorised to do so, and therefore that the Bank were liable to pay the money over again to the Plaintiff. The pleadings were very complicated ; and at the trial, before MONAHAN, C. J., in the sittings after Trinity Term, 1871, it was considered, with the concurrence of the parties, that the case could be best tried on the count for money had and received, and the plea thereto ; the question being whether the Bank was entitled to credit for the sums paid by it upon cheques drawn on it under the cir- Corn. Pleas. cumstances disclosed by the evidence. 1871. In the early part of July, 1866, a Mr. Edwin Harvey Wadge, E. IOLYFD. m NnsTo Mr. Hoare, and Mr. Wall determined to form a limited liability v. Co. company, to be called " The East Holyford Mining Company," NAT. BANK. and had prepared articles of association and an agreement, dated the 14th July, 1866, signed by seven persons, and stating that they whose names were subscribed were desirous of forming themselves into a company pursuant to the articles, and had agreed to take the number of shares which were set opposite their respective names. Some of the seven subscribers, as it appeared at the trial, were writing clerks in the employment of Wadge, and all of them were of very humble position, and living in cheap lodgings in various parts of the city of Dublin. The articles of association, in the first place, confirmed the agreement for the purchase of the East Holyford Mine for the sum of £10,000 (1), and provided that the number of directors should not be less than three, nor more than five ; that the first seven perÂsons who signed the articles, or a majority of them, should appoint the first directors ; that the qualification of a director should be twenty-five shares in the company ; that the directors should have the entire management of the business, and power to appoint the manager, secretary, &c. ; that the bank...

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