The House was asked as to the legitimacy of making bankrupt, on the basis of debts unpaid in respect of his English trading, a foreigner who had left the jurisdiction.
Held: A business continues until sums due are collected and all debts paid.
Lord Porter said: ‘(T)rading does not cease when, as the expression is, ‘the shutters are put up,’ but continues until the sums due are collected and all debts paid.’ The person concerned could not take exception to such an order ‘though it may be he will escape from compliance with its terms because he is out of the jurisdiction and cannot be reached by English process.’
Judges:
Lord Porter
Citations:
[1950] AC 186
Jurisdiction:
England and Wales
Cited by:
Cited – Masri v Consolidated Contractors International Co Sal and Others HL 30-Jul-2009
The claimant sought to enforce a judgment debt against a foreign resident company, and for this purpose to examine or have examined a director who lived abroad. The defendant said that the rules gave no such power and they did, the power was outside . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 15 May 2022; Ref: scu.372594