The appellant was a trustee in a Scottish sequestration. The respondents, who were judgment creditors of the bankrupt, had attached by a garnishee order an English debt due to the bankrupt. This security, being obtained less than sixty days before the date of the Scottish sequestration, would have been thereby cut down had it taken the form of letters of arrestment of a Scottish debt.
The Scottish trustee contested the effect of the garnishee order, and judgment against him was pronounced by the Court of Appeal (Farwell, Buckley, and Kennedy, L.JJ.). The trustee appealed.
Held: A foreign bankruptcy is recognised only from its date, and does not cut down security rights obtained before that date, although they would be cut down by the law of the foreign bankruptcy.
Lord Chancellor (Loreburn), Lords Macnaghten, James of Hereford, and Dunedin
[1910] UKHL 699, 48 SLR 699
Bailii
England and Wales
Insolvency
Updated: 13 January 2022; Ref: scu.619793
