Kekewich J had permitted the late registration of a company debenture, but included the proviso introduced by Buckley J in In re Joplin Brewery. There were pari passu debentures, some issued before 1 January 1901, some after. The company was solvent. The post 1901 unregistered debenture holders appealed, seeking a better position different to that brought about by Buckley J’s decision in In re S Abrahams (also with pari passu debentures issued before and after 1 January 1901).
Held: The appeal succeeded. The Court drew a qualification to the In re Joplin Brewery condition which excluded the earlier issued debentures from its effect, so as to maintain ranking pari passu status between the contractually equal debentures. Cozens-Hardy LJ added a rider to his reasons in which he doubted whether the proviso as drafted by Buckley J in In re Joplin Brewery would ever have any effect in protecting unsecured creditors: ‘who had not taken some proceedings to get a charge or a security upon the goods.’
Judges:
Cozens-Hardy LJ
Citations:
[1902] 2 Ch 101
Jurisdiction:
England and Wales
Citing:
Qualified – Re Joplin Brewery Co Ltd ChD 1902
The applicants, owners of a solvent family business, sought to register a charge over the company’s assets out of time.
Held: Buckley J saw the application under s 15 of the 1900 Act as a similar application to the application to register out . .
Lists of cited by and citing cases may be incomplete.
Company, Insolvency
Updated: 07 October 2022; Ref: scu.444536