The Provincial Bank of Ireland v Dunne

• Jurisdiction: Ireland
• Judgment Date: 22 February 1878
• Date: 22 February 1878
• Court: Queen's Bench Division (Ireland)

Q. B. Div.

THE PROVINCIAL BANK OF IRELAND

and

DUNNE.

Erskine v. MorelandUNK Ir. R. 10 C. L. 243.

In re HattonELR L. R. 7 Ch. App. 723.

Ex parte JacobsELR L. R. 10 Ch. App. 211.

Ex parte Rushforth 10 Ves. 417.

Ex parte WildmanENR 1 Atk. 109.

Ex parte Barratt, in re Cowell 1 Gl. & Jam. 327.

Pease v. HirstENR 10 B. & C. 122, 126.

Ellis v. WilmotELR L. R. 10 C. P. 10.

Stedman v. GoocheENR 1 Esp. 3.

Belshaw v. BushENR 11 C. B. 201.

Cook v. ListerUNK 32 L. J. C. P. 121.

Pearl v. DeaconENR 24 Beav. 186.

Favenc v. BennettENR 11 East, 36.

Perris v. RobertsENR 1 Vern. 34.

Bardwell v. LydallENR 7 Bing. 489.

Raikes v. Todd 8 A. & E. 846.

Gray v. SeckhamELR L. R. 7 Ch. App. 680.

Thornton v. M'Kewans 32 L. Jur. Ch. 69.

Gee v. Pack 33 L. Jur. Q. B. 49.

Ex parte HolmesUNK 1 Mont. & Ch. 318.

Thompson v. Hudson L. R. Ch. App. 320.

Ex parte JohnsonENR 3 De G. M. & G. 218.

In re HattonELR L. R. 7 Ch. App. 723.

Edwards v. CoombeELR L. R. 7 C. P. 519.

Malone v. —UNK Ir. R. 7 C. L. 473.

Edwards v. HancherELR 1 C. P. D. 111.

Bardwell v. LydallENR 7 Bing. 494.

Accommodation drawer — Composition in arrangement in bankruptcy — Payment — Suspension of right of action — Appropriation of payments.

VoL. II.) Q. C. P., & EX. DIVISIONS. 21 THE PROVINCIAL BANK OF IRELAND v. DUNNE. Accommodation drawer-Composition in arrangement in bankruptcy--Payment -Suspension of right of action-Appropriation of payments. (1). In an action by the indorsees of a bill of exchange against the accomÂmodation drawer and indorser :-Held, that the receipt by the Plaintiffs of composition notes of the acceptor, in pursuance of an arrangement in bankÂruptcy, was not equivalent to payment, and did not suspend the Plaintiffs' right of action against the Defendant during the currency of the notes. (2). The acceptor, a trader, had executed to the Plaintiffs, his bankers, a mortgage for securing all debts dne or to become due from him to them :ÂHeld, that the Plaintiffs were not bound, in the absene?, a express stipulation, to appropriate any part of the proceeds of the mortgage towards payment of the bill sued upon. Semble, that the amount of the composition notes, when paid, should be approÂpriated by the Plaintiffs in payment, rateably, of all the debts due to them by the acceptor, and, amongst others, of the sum dne on foot of the bill sued upon. Q. B. Div. 1878. Jan. 15. Feb. 22. ACTION by the Provincial Bank of Ireland, suing by their public officer, as indorsees of a bill of exchange, the acceptance of Samuel Gordon, a trader, for £171, against the Defendant as drawer and indorser. To the further maintenance of the action, the Defendant pleaded, in substance, as to £57, portion of the £171, that he drew and indorsed the bill solely for the accommodation of S. Gordon, and as surety for him, of which the Bank had notice; and that, after the accrual of the Plaintiffs' claim, S. Gordon presented a petition for arrangement to the Bankruptcy Court, and carried out an arrangement, the terms of which were that he should pay a. composition of 6s. 8d. in the pound to his unsecured creditors on the amount of their respective debts, and, to his secured creditors, on so much of their respective debts as were unsecured, by three instalments of 2s. 6d., is. 8d., and 2s. 6d., at four, eight, and twelve months, to be secured by promissory notes payable at four, eight, and twelve months from confirmation by said Court of his proÂposal, which proposal stated that S. Gordon and the Bank had agreed to value the securities held by the Bank from S. Gordon at £1850, and that the petitioner should assign to the Bank the premises VOL. II. LAW REPORTS (IRELAND). [L. R. I. comprised in their security, the Bank ranking as an unsecured creditor for the residue of their debt, after deducting said sum of £1850 ; that the Bank proved in the arrangement matter for a sum of £4195 (including the amount secured by the said bill) ; that, afterwards, the said promissory notes were made by S. Gordon and received by the Bank to secure said composition of 6s. 8d. in...