The Express.
London, England, 1851-12-09 00:00:00

law intenigence.

EQUITY COURTS.—YESTZILDAT.
tunas Ina Lasso !Priers or Angst..
In TRIO MATTIa or TSB NORWICH YARN Cate
PARTS Till NAST or 'INWARD BANILINO CoMPANT.
The appellant in this ease was the registered public
officer of the Banking Company, and the respondents the
official Managen of the Norwich Yarn Company, apponned
under the Winding-up Act, and 37 of the Missemattjbs of
discspany The object of the appfieWed le m
discharged or varied an order made by Lord
dale, the late Muter of the Rolls, by . whiehli%
Master was directed to disallow • claim made in his odor,
for the sum of 26,701., by the Banking Company
alleges
l ruur their registered saver ia respect of the balance
to be due to them ea backers of the yarn company. '
The claim made was in respect of loans made from time to
time by the backers to the managing _directors of the yarn
, and it had bees eired by the master to
wins the windiegop d the yen empamy had been re-
tried es the gresada, fret, that the maaaging director' had
se pew em borrow wag under the deed of settlement of
tho glimpsy ; and secondly, that the payments or loans
MON Mai by the banking company upon drafts
SI &wee drawn by the manager of the yarn
Sjiiry, without the accompanying signature of three
directoril, • which was prescribed by
the tens of the deed of krmitlity,ennent Upon appeal from
the Master's decision to the late Muter of the Rolls the
order had been made which It was now sought to discharge
or to vary.
Mr. Roundell Palmer and Mr. Cole (with whom was
Mr. Wines) were heard in support of the appeal. They
contended that both the Master's decision and that of the
Mader of the Rolls ought to be reversed, and the
Master be directed to allow the claim in question
as a debt proved spinet the yarn company. The
yarn enspassy, which (was not an incorporated company,
had bus termed for the popes of purchasing raw mate-
rials end errafactaximg OM= into yarn for sale. To do
this with regularity it weld be asesseary at one tine to
buy wpm credit, end at eardbar to give credit upon males.
=mike result awe leeneestions it was possible thee the
as the esopeng refill at say tine be soak to pay
their Ids, while at the ease time the stalks* might be
for payment of their dame& Unlink therefore,
r =Atkin the pewee dike portion asdn Swish their
managleg directions* below ameaq Lei! pshewtlp see.
at eny ressent be
r ea by the *than et debit" or
tea of store. The very oaten et the part-
bubo* implied • power in the direness* borrow
hoe nest any pernes bar neseedly. The bons
la genethei led all bees as lota le the yarn
sanpsy in the sown e t a ernemn debar and imago
ettetieeeervemites ee-
*sat, esmendi betweeng n beaker end senewer between the Seroseet.
tae hoe MO ISIR The
tte Was Wbees retentel te the nasegim. Abeam
stip =Lees atimpsay, by sthema auk *mhos sod the
of the earapamy had been vegehnly subsdned to
the eanideratian et shit ehateheYhee at their brilf rutty
The shareholders had leas been all along aware
irdtt, that their dleaston had been borrowing money
of the tankers et tke ampsay, and they had acquiesced in
that node of tab& messy Ms OM wants of the axe-
ransffiliseshteat. The ism gip by the deed of set-
t" thsdflrltr at Own by the directors had
wee:base elorreitmalhelbsedellea efthe cotopeoyilU
dividends to the sheedlithos had always bees paR by
cheques draws in the ihniseemplained of,and the irregularity
if any bad the bees sake&
Lai 'seise Knight Ikos,, i the ewes of the arils-
meat, said the sets ei mein espiteed le be whether there
wee a retiousl keel good= IR Mel. If it was dear, as
contended by the enellanie that Mdebt wee due, it ought
to be &bated ; but if it wen set gartectly clear that it was
• bow could It be admitted ? The ease was not an
one to the eases in loralunptcy, where the debt
ZuTht 7- admitted for the reuse OA rim a hole wets of
the debtors are swept away by the bankruptcy. In cases
under the Winding-up Acts, the rights of the creditor
remained untouched, subject only to this that
the legislature imposed on him the necessity,
before proceeding to sue, to go in and make
what proof he could before the Muter. This was
done to enable the Master to ascertain tho amount of debt
due from the company, but the moment this was done the
creditor might exercise his right of proceeding at law.
The provisions of the Winding-up Act being then for the
benefit of the contributories, and only in • secondary sense
for the benefit of the creditors, whose rights were scarcely
touched by them, it followed that before any debt
could be admitted as one to be paid, it ought to
be clear to demonstration that no rational doubt
could he entertained that the debt was due. Now
upon this question whether there was any such doubt
then was the decision of the Master and of the Master of
the Rath in favour of the official manager and contribute-
nn; and the leading counsel for the banking company,
without saying a word too much, bad found it necessary
to occupy the time of the coon the entire day.
The argument upon the case will be continued to-morrow
(this day).

ammo ta Inc aire•mr.an= via Lou Catatauas.
Ix as en. Chalon 821,11X-PLCKIT C za
ram Caorraa.—Tan Jam Broca WIKDING-111 Acr

--tile appeal, which was partly heard on the lst inst., was
ben an order of the Vice-Chancellor Sir J. Haight Bruce,
_ .
of

refusing a refasten* tit eras et the Winter of the coin
piny la respect se boriales ism la proeuring the insertion
of engin claws in the Illhiltiap Act, with the view of
mating them he maw dm affairs of the cowers with
grease Ilhaility. The tans of the case lie in a very narrow
asmymee. The died of settlement of the St. George Steam-
man Compasy meiebed a clause providing for its dime-
lotion on a certain mallitgency specified. In 1843 the ems-
pasy resolved on dieesbation. and • committee was sp.
punted to wind up is affairs. The existing state of the
Jaw at that time neadend it very difficult to proceed in this
el~eet effectually.
_no minamittes, who had appointed a
solicitor, 'atheneum. lira to news monk expenses in anise
to procure the laredea ia dr teledbrup Bill *ea he.
fore parliamsatat domes whirl read he applicable le the
use of the fassiaray. That all pored into law ia 1141,
and as seder miler it was &rimed for winding up the
'Shin et the sempeay. The eseemiliee darted Were the
leader le he paid Hs inmate tesumed eat of the rests of
the empirly, hut this claim wee reheat Oa =tote
adios wee Mimed by his Rinser the Vice•C
wipe hail dud die were inured in a tarter be:
psi the erhasitg_ the tonalities.
Ns. liek era M. he
were he the appellant ; Mx.
Deena sad Mr. J. V. Prior for the feepeadant.
Mr. Selwyn having now eteshaded his argument in
nct Lord Chancollor gave *gored. He bad bees *-
able he eatertela doubt sa U. treed* win* wee ea-
amnia with any aiHsalfl. In this ease the marry 1
head it aselerry le wire up their weir* sad it was re-
mind to Orem sailer the tram at their deed at partner.
ship. It did set ewer that et dr sending, when it was
reseleed se diet dee. any led been seeds ter
elarisg reardhge Ike pre
_vas new law or any al.
tenths et the law widt nerd le *eh liabilities. A saw
mitre was appointed le NMI the aesemary rasse=stet
apparently with se ram dew Hen se* se were
with the deed.
_At ali emu* ark etleLeteasse bed a
right le ea imperils Obis esismied
to the application ellhe teadslitfiteasingery et
the law. The perm whir smisamed la the
of the sunders did es awned, ea the that the
✓alareat of their snake was he be made woke the law as
it thank Mood. One af dm great *jean or the new law was !
to Wrens facility et postdate la reermalag alb be. '
cm** geembers. It was bawdy he be Illippersi tart
all the rearm were iisswithig peities to Ms saynffiture
of atedaing a mew kw the eider of whisk was
to MINIUM the lisle/tin of sired thus, and mein the
he seamy tare Sidle. They eireld at
crest trut. salted to be maseeting parties dime*
This perdue et as bill wee iasered, met with weeper he
&ay arampt to wind up umber Mr law alt it data Meet, bat 1
to • aresele knight Jar prism* by the geverament,
and In tin purpose of getting some dans, laredard se as
to embeese the eireamstaame Odds empire Sill off Mbar
composias similarly eunnumarred. Dna the esermlerso all
saes preceded with the view eeelWaising aa altsweries of
the law, and all their efforts wen dinned Is DNS eitiost.
It was said that the solicitor led a right le he peid. Me
doubt, if be had informed the areadisse se the mem her
the wen incurring this large his he had • MOM Se in
• • but if the reepany, tiger* to their M. lie he
p 'them with's.* Waits se *sir atathedm wees-bil
into a great amass in a matter which wee miler militia
thdr am sanctioned by them, the riesallon
was ems between him and the minmffillen
The mildlor toted by seeing if a new law could be
and the eamesem, sow the subject of dispute, were
in the Whet. Wyman the insertion of clauses is the
in cannon is with members of the
ether psneas_OffilliMMlL Dealing trialw Ible
bill, lheOte Lad Cheaseller) was of het It we
am within the eadrestry et the smother to taws the in
pew elder • gourd argeramilar ate et pap
ea the It seamed te him that se hr as Oa
geuraltozrelerear et the eramittest wes ousersal they
to reed le ere arm et whaling up U.
dffigaisms alike emesai their died eathorbedred .ether e,
and thef had me he beer
_lnv espouses net *Ns
the unkeeity of deed. It lied been ceeteaded het
authority was gives by the Tab Nation to apply for an ail
et proliament, but that was Dr a purpose very daimon
Gem the winding up se the semplay, the mers= 1
that section of the deed ebehresly bag to
1.
a charter or act of lasespandra. Mammy when
there was an express OWNS Pismo X) which was entirely
silent en this point, it amend to his that the expenditure
1 in this respect was not within the authonty of the commit-
' tee, and that they wen only entitled at the expense of the
company to prosecute each remedial measures as were con-
i intent with the authority conferred by the deed. It was fur-
' tber urged that a portion of the expense had been incurred
in proceedings under the law se it then stood; but he did
not find any application to court for orders in relation to'
this matter. All proceedings for winding. up under the old
law were distinctly abandoned. The present committee must
be content to take the credit of having rendered a public ser-
vice,
for they certainly had no authority to incur any por-
, ties of the expense charged for obtaining the insertion of
,1 these clauses. The order of the Vice Chancellor most
, i therefore be affirmed, and this petition dismissed with costs.
, Is HZ THE MAIITLZIONZ JOINT4ITOCIL BANE. 11
Brix.
I This Inv an appeal by the official manager in proceedings
under the Winding-up Act against an order by '‘ ice-Chan-
tenor Knight Bruce to Olw Master to omit the name of Mr.
' IHans Bask,who was one of the promoters, and fora time chair-
man of the directors, of the Marylebone Bank, from the list
of contributable. The main question involred is whether 1