Pennycuick J said: ‘The expression ‘contingent creditor’ is not defined in the Companies Act 1948, but it must, I think, denote a person towards whom under an existing obligation, the company may or will become subject to a present liability upon the happening of a future event or at some future date or at some future date’. The importance of these words for present purposes lies in their insistence that there must be an existing obligation, and that out of that obligation a liability on the part of the company to pay a sum of money will arise in a future event, whether it be an event that must happen or only an event that may happen.’
Pennycuick J
[1962] 1 WLR 555, [1962] 2 All ER 111
Companies Act 1948 224(1)
England and Wales
Updated: 07 August 2021; Ref: scu.416336
