The plaintiff alleged the breach of an undertaking to deliver share certificates on a particular day. The defendants said that bankruptcy discharged them from the obligation. The bankruptcy applied to the defendants’ ‘debts and sums of money due or claimed to be due’ on the date of the vesting order. The plaintiff argued that only debts were provable and that a claim in damages was not therefore barred by the vesting order. Whilst accepted this, counsel for the defendant argued that an undertaking to deliver shares on a specified day created a provable debt because the shares would be treated as money’s worth in the amount of their value at the date for delivery.
Held: The analysis was rejected. The claim was one in damages in a sum to be measured by reference to the price of the shares at trial. They were therefore unliquidated.
Citations:
(1854) LJCP 105, [1854] EngR 177, (1854) 14 CB 327, (1854) 139 ER 134
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Cited – McGuinness v Norwich and Peterborough Building Society CA 9-Nov-2011
The appellant had guaranteed his brother’s loan from the respondent, and the guarantee having been called in and unpaid, he had been made bankrupt. He now appealed saying that the guarantee debt, even though of a fixed amount could not form the . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 05 May 2022; Ref: scu.293034