Grant v. Green's Trustee [1901] ScotLR 38_733 (28 June 1901)

Grant v. Green's Trustee [1901] ScotLR 38_733 (28 June 1901)

The sum payable by the landlord to Green at waygoing in 1898 did not vest in the trustee under section 102, as it did not exist at the date of sequestration. Although a personal right vested in the trustee under section 103, the trustee did not obtain a vesting order, and Grant's diligence as a post-sequestration creditor was completed first. Therefore, Grant's claim prevails over the trustee's.

Citation
[1901] ScotLR 38_733
Parties
Claimant and Reclaimer: John Grant; Bankrupt/defender: Peter Green; Trustee/respondent: John Foster (Green's Trustee); Defender (bankrupt's Wife): Mrs Green
Jurisdiction
Scotland
Judgment Date
28 June 1901
Procedural Posture
Action of Multiplepoinding / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; Grant ranked and preferred to the extent of his claim; trustee entitled to balance for aught yet seen, subject to statutory procedure.
Legal Topics
Sequestration, Acquirenda, Vesting Order, Diligence, Arrestment, Priority of Creditors
Bankruptcy Insolvency Property Law Sequestration Acquirenda Vesting Order Diligence Arrestment +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

John Grant

Claimant and Reclaimer

Peter Green

Bankrupt/defender

John Foster (Green's Trustee)

Trustee/respondent

Mrs Green

Defender (bankrupt's Wife)

Procedural Posture

Action of Multiplepoinding / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Whether a sum payable to an undischarged bankrupt by a landlord at waygoing after sequestration vests in the trustee under section 102 or 103 of the Bankruptcy (Scotland) Act 1856.
  2. 2 Whether a creditor whose debt was incurred after sequestration and who arrested the sum before the trustee obtained a vesting order has priority over the trustee.

Ratio Decidendi

The sum payable by the landlord to Green at waygoing in 1898 did not vest in the trustee under section 102, as it did not exist at the date of sequestration. Although a personal right vested in the trustee under section 103, the trustee did not obtain a vesting order, and Grant's diligence as a post-sequestration creditor was completed first. Therefore, Grant's claim prevails over the trustee's.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; Grant ranked and preferred to the extent of his claim; trustee entitled to balance for aught yet seen, subject to statutory procedure.

Orders

  • Recall of Lord Ordinary's interlocutor.
  • Ranking and preference to Grant for his claim.