Scott's Trustees v. W. M. Low & Co., Ltd [1902] ScotLR 39_330 (25 January 1902)

Scott's Trustees v. W. M. Low & Co., Ltd [1902] ScotLR 39_330 (25 January 1902)

The trustee is not entitled to recover the amount of the bill from the indorsee where the indorsee has not received payment or any benefit from the bill, as the statute only nullifies the preference and does not create a right to payment absent actual receipt or retention of the bankrupt's estate.

Citation
[1902] ScotLR 39_330
Parties
Pursuer: Richard Brown, C. A., trustee upon the sequestrated estates of John Scott & Company; Defender: W. M. Low & Company, Limited
Jurisdiction
Scotland
Judgment Date
25 January 1902
Procedural Posture
Civil / Appeal (reclaiming Note) From Interlocutor of Lord Ordinary
Outcome
reclaiming note refused; interlocutor of Lord Ordinary adhered to
Legal Topics
Illegal Preference, Reduction of Indorsation, Bill of Exchange, Trustee's Right to Recover Payment
Bankruptcy Commercial Law Illegal Preference Reduction of Indorsation Bill of Exchange Trustee's Right to Recover Payment

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Parties

Richard Brown, C. A., trustee upon the sequestrated estates of John Scott & Company

Pursuer

W. M. Low & Company, Limited

Defender

Procedural Posture

Civil / Appeal (reclaiming Note) From Interlocutor of Lord Ordinary

Legal Issues

  1. 1 Whether the trustee is entitled to recover payment from the indorsee of a bill of exchange indorsed within sixty days of bankruptcy, where the bill was ultimately not met and the indorsee received no payment or credit.

Ratio Decidendi

The trustee is not entitled to recover the amount of the bill from the indorsee where the indorsee has not received payment or any benefit from the bill, as the statute only nullifies the preference and does not create a right to payment absent actual receipt or retention of the bankrupt's estate.

Court Disposition

reclaiming note refused; interlocutor of Lord Ordinary adhered to

Orders

  • Decree of reduction of indorsation affirmed
  • No decree for payment against defenders