In re Moseley-Green Coal and Coke Co Ltd, Ex parte Barrett: 1865

Mr Barrett owed the company money on his partly-paid shares for which calls were made after it went into insolvent liquidation. He had also guaranteed the company’s liability for the purchase price of a coal mine, for which the vendor held security in the form of a mortgage and the company’s promissory note. After the winding up Mr Barrett’s sister paid off the vendor and took over the mortgage and promissory note. Mr Barrett then entered into an arrangement which was treated as a payment of the company’s debt and he took over the promissory note.
Held: He was entitled to set off the debt on the promissory note against his liability to pay calls on his shares.

Judges:

Lord Westbury LC

Citations:

(1865) 12 LT (NS) 193

Jurisdiction:

England and Wales

Cited by:

CitedIn re Charge Card Services Ltd ChD 1987
The court discussed the historic availability of set-off in an insolvency: ‘By the turn of the [20th] century, therefore, the authorities showed that debts whose existence and amount were alike contingent at the date of the receiving order, and . .
DistinguishdIn re A Debtor (No 66 of 1955), Ex parte The Debtor v Trustee of Waite (A Bankrupt) CA 2-Jan-1956
Waite owed the debtor andpound;101 for goods sold and delivered. He was bankrupted, having previously guaranteed the debtor’s overdraft and deposited the deeds of his property as security. Waite’s trustee paid the bank andpound;133 out of the . .
CitedSecretary of State for Trade and Industry v Frid HL 13-May-2004
The company went into insolvent liquidation. The secretary of state was to make payments to employees and there were other state preferential creditors. At the same time a refund of VAT was due from the Commissioners of customs and Excise.
Lists of cited by and citing cases may be incomplete.

Insolvency, Company

Updated: 24 November 2022; Ref: scu.196877