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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Wishart v. West Regent Investment Co., Ltd [1908] ScotLR 512 (04 March 1908)
URL: http://www.bailii.org/scot/cases/ScotCS/1908/45SLR0512.html
Cite as: [1908] SLR 512, [1908] ScotLR 512

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SCOTTISH_SLR_Court_of_Session

Page: 512

Court of Session Inner House First Division.

(Single Bills.)

Wednesday, March 4. 1908.

45 SLR 512

Wishart

v.

West Regent Investment Company, Limited.

Subject_1Expenses
Subject_2Company
Subject_3Liquidation
Subject_4Petitioning Creditor.
Facts:

The Court will not grant as a matter of course his expenses to a creditor petitioning for the winding-up of a company, or for a supervision order, but will leave that question to the Lord Ordinary to whom the liquidation is remitted.

Headnote:

On February 19, 1908, Matthew Wishart, joiner, Kirkcaldy, presented a petition under secs. 79 and 80 of the Companies Act 1862 (25 and 26 Vict. cap. 89) for the winding-up by the Court of the West Regent Investment Company, Limited, 183 W. George Street, Glasgow, or alternatively to have the voluntary winding-up already resolved upon by the company placed under the supervision of the Court and an independent liquidator appointed in place of Mr Meikle, the liquidator chosen by the company.

The petitioner was a creditor of the company for £70, being the sum contained in

Page: 513

a bill granted by the company to him on which he had charged but had not received payment. The company's nominal capital was £5000, of which £42, 4s. was subscribed, and the liabilities were stated to amount to £11,795, 11s. 5d., with assets amounting to £11,511, 12s. 3d.

On 4th March 1908 Mr Wishart presented a note to the Lord President stating that since the date of his petition the company had resolved that the voluntary winding-up should be continued under the supervision of the Court, and that Mr Patrick, C.A., Glasgow, should be associated with Mr Meikle as joint-liquidator, and craving confirmation of that arrangement.

Judgment:

Lord President—I will take this opportunity of intimating for the information of counsel that we are going to alter the practice of granting expenses to petitioners in such cases as a matter of course, and to leave that to the Lord Ordinary to whom the liquidation is remitted and who has a knowledge of the facts. In this case it is all very well to say that two liquidators are required, but I see no reason why there should be two horses in this one-horse concern. This is a company of which we are told the capital is £5000, and the total capital subscribed £42, 4s. The company passed a resolution for voluntary winding-up and the appointing of a liquidator, and then there was a creditor's petition. The parties seem to have come together and agreed that the liquidation should be continued under the supervision of the Court and that a liquidator nominated by the creditors should be conjoined with the liquidator appointed by the company. It has been brought under the notice of the Court that in a great many liquidations there is really almost a scandalous amount spent in expenses, and the Court are resolved to do what they can to prevent this abuse. It seems to me that the proposition made here is an abuse on the face of it, and although in ordinary cases the wishes of the creditors will be consulted as to who should be appointed as liquidator, it seems that the arrangement here is so objectionable that the only course for your Lordships to take, and the one I propose, is to pronounce a supervision order, remove the present liquidator, and appoint an entirely new liquidator who is not proposed by any of the parties.

Lord M'Laren and Lord Kinnear concurred.

Lord Pearson was absent.

The Court ordered the voluntary winding-up to be continued subject to the supervision of the Court, superseded the appointment of Mr Meikle, and in his room and place appointed Mr J. M. Macleod, C.A., Glasgow, as liquidator of the company, and found the petitioner entitled to the expenses of the petition as the same should be taxed by the Auditor.

Counsel:

Counsel for Petitioner— D. M. Wilson. Agents— Adamson, Gulland, & Stuart, S.S.C.

1908


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URL: http://www.bailii.org/scot/cases/ScotCS/1908/45SLR0512.html