Cranston's Tea Rooms, Ltd (And Reduced) Petitioners [1919] ScotLR 208 (17 January 1919)

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

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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

  1. 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.