Cranston's Tea Rooms, Ltd (And Reduced) Petitioners [1919] ScotLR 208 (17 January 1919)
In cases where only paid-up capital is cancelled and creditors are not affected, prayers in petitions for reduction of capital relating to creditors and the list of creditors under section 49 of the Companies (Consolidation) Act 1908 are unnecessary and contrary to court practice.
- Citation
- [1919] ScotLR 208
- Parties
- Petitioner: Cranston's Tea Rooms, Limited (And Reduced)
- Jurisdiction
- Scotland
- Judgment Date
- 17 January 1919
- Procedural Posture
- Petition for Confirmation of Reduction of Capital / Judgment on Petition
- Outcome
- Petition granted
- Legal Topics
- Reduction of Capital, Procedure for Reduction of Capital, Creditors' Rights, Companies (consolidation) Act 1908
Case Brief
Summary, issues, holding and outcome
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Parties
Cranston's Tea Rooms, Limited (And Reduced)
Petitioner
Procedural Posture
Petition for Confirmation of Reduction of Capital / Judgment on Petition
Legal Issues
- 1 Whether it is appropriate to include in the prayer of a petition for reduction of capital provisions relating to creditors' rights and the list of creditors when creditors' rights are not affected.
Ratio Decidendi
In cases where only paid-up capital is cancelled and creditors are not affected, prayers in petitions for reduction of capital relating to creditors and the list of creditors under section 49 of the Companies (Consolidation) Act 1908 are unnecessary and contrary to court practice.
Court Disposition
Petition granted
Orders
- Prayer of the petition granted as sought, with judicial criticism of unnecessary inclusion of creditor-related prayers.
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