Rosslund Cycle Co. and Others v. M'Creadie [1907] ScotLR 863 (16 July 1907)

Rosslund Cycle Co. and Others v. M'Creadie [1907] ScotLR 863 (16 July 1907)

A bill of exchange granted and signed by all partners of a firm, even in their individual names, is presumed to be for the firm's purposes and is enforceable against partnership assets if the consideration was for the business, unless the granters prove otherwise. In this case, the bill was for firm purposes, so diligence against partnership property was competent.

Citation
[1907] ScotLR 863
Parties
Pursuers: Rosslund Cycle Company, otherwise the Roselund Cycle Company, and Thomas Ross and Simon Lundy as the sole partners of said company; Defender: Andrew M'Creadie
Jurisdiction
Scotland
Judgment Date
16 July 1907
Procedural Posture
Petition for Interdict / Appeal From Sheriff Court to Court of Session Inner House Second Division
Outcome
Appeal dismissed; interlocutor of Sheriff-Substitute affirmed; petition for interdict refused.
Legal Topics
Diligence, Bill of Exchange, Partnership Liability, Poinding of Partnership Property
Commercial Law Partnership Law Banking Law Diligence Bill of Exchange Partnership Liability Poinding of Partnership Property

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Parties

Rosslund Cycle Company, otherwise the Roselund Cycle Company, and Thomas Ross and Simon Lundy as the sole partners of said company

Pursuers

Andrew M'Creadie

Defender

Procedural Posture

Petition for Interdict / Appeal From Sheriff Court to Court of Session Inner House Second Division

Legal Issues

  1. 1 Whether a bill of exchange signed individually by all partners is enforceable against partnership assets if granted for partnership purposes
  2. 2 Whether diligence (poinding and sale) against partnership property is competent where the bill does not name the firm but is for firm purposes

Ratio Decidendi

A bill of exchange granted and signed by all partners of a firm, even in their individual names, is presumed to be for the firm's purposes and is enforceable against partnership assets if the consideration was for the business, unless the granters prove otherwise. In this case, the bill was for firm purposes, so diligence against partnership property was competent.

Court Disposition

Appeal dismissed; interlocutor of Sheriff-Substitute affirmed; petition for interdict refused.

Orders

  • Court adhered to the interlocutor of the Sheriff-Substitute refusing the prayer of the petition.