Sinclair (Turners' Trustee) v. Edinburgh Parish Council and Another [1909] ScotLR 973 (17 July 1909)

Sinclair (Turners' Trustee) v. Edinburgh Parish Council and Another [1909] ScotLR 973 (17 July 1909)

The word 'sequestration' in section 7(2) of the Revenue Act 1884 does not include bankruptcy sequestration but refers only to landlord's sequestration. Therefore, a poinding for poor and school rates executed within sixty days prior to sequestration is ineffectual against the trustee in bankruptcy, and the rate collector must claim preference through the sequestration process.

Citation
[1909] ScotLR 973
Parties
Complainer (reclaimer): Sinclair (Turners' Trustee); Respondents: Edinburgh Parish Council and Alexander Fraser (collector of poor and school rates)
Jurisdiction
Scotland
Judgment Date
17 July 1909
Procedural Posture
Civil (bankruptcy, Interdict/suspension) / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
appeal allowed; Lord Ordinary's interlocutor recalled (except as to recall of interim interdict); trustee entitled to poinded articles; respondents not entitled to same; unnecessary to dispose of interdict conclusion
Legal Topics
Preference of Creditors, Effect of Poinding Within 60 Days of Sequestration, Interpretation of 'sequestration' in Revenue Act 1884, Priority of Poor and School Rates, Statutory Construction
Bankruptcy Local Government Law Taxation Preference of Creditors Effect of Poinding Within 60 Days of Sequestration Interpretation of 'sequestration' in Revenue Act 1884 Priority of Poor and School Rates Statutory Construction

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Parties

Sinclair (Turners' Trustee)

Complainer (reclaimer)

Edinburgh Parish Council and Alexander Fraser (collector of poor and school rates)

Respondents

Procedural Posture

Civil (bankruptcy, Interdict/suspension) / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Does 'sequestration' in section 7(2) of the Revenue Act 1884 include bankruptcy sequestration or only landlord's sequestration?
  2. 2 Is a poinding for poor and school rates executed within 60 days prior to sequestration effective against the trustee in bankruptcy?
  3. 3 Must the rate collector claim preference through the sequestration process or may he proceed to sell poinded goods independently?

Ratio Decidendi

The word 'sequestration' in section 7(2) of the Revenue Act 1884 does not include bankruptcy sequestration but refers only to landlord's sequestration. Therefore, a poinding for poor and school rates executed within sixty days prior to sequestration is ineffectual against the trustee in bankruptcy, and the rate collector must claim preference through the sequestration process.

Court Disposition

appeal allowed; Lord Ordinary's interlocutor recalled (except as to recall of interim interdict); trustee entitled to poinded articles; respondents not entitled to same; unnecessary to dispose of interdict conclusion

Orders

  • Lord Ordinary's interlocutor recalled except as to recall of interim interdict
  • Affirmed recall of interim interdict