In a petition for sequestration of the estates of a debtor who had become notour bankrupt, the petitioning creditor founded on a debt forming the balance of an account-current and vouched by a number of I O U’s. It appeared from a letter of agreement by him which was produced, that he had agreed that until adjustment of the account between him and the debtor the I O U’s should be retained as vouchers of the account-current, ‘upon which I cannot sue you or do diligence for them against you.’ Held (aff. judgment of First Division) that the debtor having become notour bankrupt, the creditor was not debarred by this agreement from applying for sequestration, founding on the IOU’s as vouchers of the debt.
A charge was given on a decree obtained in the Court of Session against a debtor. The debtor was insolvent and the charge was allowed to expire without payment, but after its expiry the debtor presented an appeal to the House of Lords which he had intimated while the charge was current. Held ( aff. judgment of First Division) that there was notour bankruptcy under the statute which could not be affected by the appeal.
Judges:
Lords Blackburn, Watson, and Fitzgerald
Citations:
[1884] UKHL 722 – 1, 21 SLR 722 – 1
Links:
Jurisdiction:
Scotland
Insolvency
Updated: 29 June 2022; Ref: scu.636746