A debtor arranged with a particular creditor for payment of his debt in certain instalments if a general scheme to which the particular creditor would be a party were carried through; that arrangement conferred a privilege on the particular creditor over the other creditors to the proposed general scheme; the general scheme was agreed to; the particular creditor obtained in absence a decree on his debt acting on his particular agreement; the creditors of the general scheme suspended. Held ( aff. judgment of First Division) that the general scheme was only voidable not void, the arrangement with the particular creditor void as fraudulent, or superseded.
Judges:
Viscount Haldane, Viscount Finlay, Viscount Cave, Lord Dunedin and Lord Shaw
Citations:
[1920] UKHL 501, 57 SLR 501
Links:
Jurisdiction:
Scotland
Contract, Insolvency
Updated: 22 October 2022; Ref: scu.631534
