[1930] EACA 81

[1930] EACA 81

The court held that the appointment of a receiver under the debenture deed required a certificate from auditors appointed under the Companies Ordinance. No such auditors had been appointed, and no valid certificate was produced. The audit relied upon was conducted by a firm of accountants who were not appointed as company auditors under the law. The court found that the objector failed to discharge the burden of proof required to establish the company's failure under the debenture deed and the proper appointment of the receiver. Consequently, the receiver's appointment was premature and invalid, and he had no right to take possession of the defendant company's property.

Citation
[1930] EACA 81
Parties
Applicant: J. S. Standish; Respondent: Messrs. Ross & Christie; Defendant: S. C. Green & Co., Ltd.
Court
East African Court of Appeal
Jurisdiction
Uganda
Judgment Date
1 January 1930
Case Number
C.C. 88A 1930 (Msa.).
Procedural Posture
Miscellaneous Application / Judgment
Outcome
objection dismissed with costs
Judges
Thomas, J. (Kenya)
Legal Topics
Appointment of Receiver, Debenture Deed Obligations, Auditor Certification, Company Liabilities, Enforcement of Judgment
Source Language
English
Commercial and Corporate Appointment of Receiver Debenture Deed Obligations Auditor Certification Company Liabilities Enforcement of Judgment

Case Brief

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Parties

J. S. Standish

Applicant

Messrs. Ross & Christie

Respondent

S. C. Green & Co., Ltd.

Defendant

Procedural Posture

Miscellaneous Application / Judgment

Legal Issues

  1. 1 Whether the receiver was properly appointed under the terms of the debenture deed.
  2. 2 Whether the certificate of company liabilities required by the debenture deed must be issued by auditors appointed under the Companies Ordinance.
  3. 3 Whether the objector discharged the onus of proving the company's failure under the debenture deed.

Ratio Decidendi

The court held that the appointment of a receiver under the debenture deed required a certificate from auditors appointed under the Companies Ordinance. No such auditors had been appointed, and no valid certificate was produced. The audit relied upon was conducted by a firm of accountants who were not appointed as company auditors under the law. The court found that the objector failed to discharge the burden of proof required to establish the company's failure under the debenture deed and the proper appointment of the receiver. Consequently, the receiver's appointment was premature and invalid, and he had no right to take possession of the defendant company's property.

Court Disposition

objection dismissed with costs

Orders

  • Objection by the receiver is dismissed.
  • Costs awarded to the respondents.