Todd (Liquidator of Millen & Somerville, Ltd) Petitioner [1911] ScotLR 980 (13 July 1911)

Todd (Liquidator of Millen & Somerville, Ltd) Petitioner [1911] ScotLR 980 (13 July 1911)

Claimants, personally liable under bonds, are entitled to ranking in liquidation for the amount they are called upon to pay, as the company undertook to relieve them; they are not required to value any security, and dividends must be applied in reduction of the heritable debt.

Citation
[1911] ScotLR 980
Parties
Petitioner: Alfred Alison Todd; Company in Liquidation: Millen & Somerville, Ltd; Respondents: James Alexander Millen and others
Jurisdiction
Scotland
Judgment Date
13 July 1911
Procedural Posture
Liquidation Ranking Dispute / Reclaiming Note (appeal) Against Lord Ordinary's Interlocutor
Outcome
interlocutor recalled; reclaiming note sustained
Legal Topics
Winding Up, Ranking of Claims, Bonded Property, Personal Obligation, Relief of Trustees, Valuation of Security
Company Law Insolvency Law Trusts Winding Up Ranking of Claims Bonded Property Personal Obligation Relief of Trustees +1 more

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Parties

Alfred Alison Todd

Petitioner

Millen & Somerville, Ltd

Company in Liquidation

James Alexander Millen and others

Respondents

Procedural Posture

Liquidation Ranking Dispute / Reclaiming Note (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Are claimants entitled to ranking in liquidation for personal obligations under bonds when company undertook to relieve them?
  2. 2 Are claimants required to value any security before ranking?
  3. 3 Does the transfer of property exclusive of personal obligation affect claimants' rights?

Ratio Decidendi

Claimants, personally liable under bonds, are entitled to ranking in liquidation for the amount they are called upon to pay, as the company undertook to relieve them; they are not required to value any security, and dividends must be applied in reduction of the heritable debt.

Court Disposition

interlocutor recalled; reclaiming note sustained

Orders

  • Liquidator directed to rank and prefer claimants in terms of their claim.
  • Liquidator authorised and directed to apply any dividends declared in respect of said claim in reduction of the heritable debt.