An assignation of a lease intimated to the landlord but not clothed with possession does not create a preferable security in favour of the assignee.
An assignation of moveables retenta possessione imports nothing more than a personal obligation, and does not create a preferable security in favour of the assignee.
A company incorporated under the Companies Acts issued debentures, and in security of the sums advanced on these debentures granted to trustees on behalf of the debenture creditors an assignation to the tenants’ part of certain mineral leases, together with the plant and machinery held by the company; these assignations were intimated to the various landlords, but no possession was taken. The company having fallen into liquidation, the debenture creditors contended that they were entitled to be ranked preferably to the other creditors of the company in respect of the security thus created. Their claim was repelled, no possession having followed on the assignation.
Observations on the difference in the legal position of liquidators and trustees in bankruptcy.
[1882] SLR 19 – 757
Bailii
Scotland
Insolvency
Updated: 23 January 2022; Ref: scu.579253
