A deed of composition under section 192 of the Bankruptcy Act, 1861, between the debtor of the first part, and the several persons whose names and seals were thereunto subscribed and set, being creditors of the debtor, and all other persons being creditors of the debtor, of the other part, after reciting that the debtor was indebted to the parties of the second part, contained a covenant by the debtor with the said persons of the second part, that he would pay ‘ unto the said persons respectively the several sums of money placed opposite to the respective names of the said persons in the third column of the schedule to the deed, being the amount of the composition agreed upon, by two instalments on certain days,’ and it was declared that until the debtor should make default the parties of the same part should not bring any action in respect of their several debts specified in the several columns of the schedule.
Held: that the covenant as to payment and the covenant not to sue must override the generality of the earlier part of the deed, and were confined to the persons and their debts specified in the schedule; and therefore that the deed did not afford an equitable defence to an action by a creditor not named in the schedule.
[1865] EngR 722, (1865) 6 B and S 986, (1865) 122 ER 1457
Commonlii, Commonlii
England and Wales
Updated: 08 October 2021; Ref: scu.281634