Bank Of Scotland v Bass Brewers Ltd & Ors [2000] ScotCS 145 (1 June 2000)

Bank Of Scotland v Bass Brewers Ltd & Ors [2000] ScotCS 145 (1 June 2000)

The pursuers' pleadings are relevant for inquiry as they sufficiently aver that the grantor (Bass), through its authorised signatory, intended the Bass consent to permit a prior ranking security. The action should not be dismissed at this stage, as the legal effect of rectification and statutory requirements for altering ranking require further inquiry.

Citation
[2000] ScotCS 145
Parties
Pursuer: The Governor and Company of the Bank of Ireland; Defender: Bass Brewers Limited; Defender: Joint Receivers of Lewis Lloyd Holdings Limited; Defender: Royal Bank of Scotland plc; Defender: Argyll & Islands Enterprise Limited
Jurisdiction
Scotland
Judgment Date
01 June 2000
Procedural Posture
Rectification Action / Debate on Relevancy
Outcome
Proof before answer allowed; action not dismissed
Legal Topics
Rectification of Documents, Floating Charges, Priority of Securities, Negative Pledge, Statutory Interpretation
Commercial Law Company Law Rectification of Documents Floating Charges Priority of Securities Negative Pledge Statutory Interpretation

Case Brief

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Parties

The Governor and Company of the Bank of Ireland

Pursuer

Bass Brewers Limited

Defender

Joint Receivers of Lewis Lloyd Holdings Limited

Defender

Royal Bank of Scotland plc

Defender

Argyll & Islands Enterprise Limited

Defender

Procedural Posture

Rectification Action / Debate on Relevancy

Legal Issues

  1. 1 Whether the pursuers' pleadings are relevant for rectification under section 8(1)(b) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985
  2. 2 Whether averments about the intention of the signatory (Mr Bruce) are sufficient to establish the intention of the grantor (Bass)
  3. 3 Whether rectification would serve any practical purpose given statutory requirements for altering ranking of securities

Ratio Decidendi

The pursuers' pleadings are relevant for inquiry as they sufficiently aver that the grantor (Bass), through its authorised signatory, intended the Bass consent to permit a prior ranking security. The action should not be dismissed at this stage, as the legal effect of rectification and statutory requirements for altering ranking require further inquiry.

Court Disposition

Proof before answer allowed; action not dismissed

Orders

  • Case put out By Order to determine further procedure for proof