The Sun.
London, England, 1856-12-22 00:00:00

APPOINTMENT OF A RECEIVER.

To-day having been appointed for the consideration of
the petition to his Honour to direct application to the
Court of Chancery for the appointment of a receiver under
this bankruptcy, a number of persons were in attendance
at the hour appointed, 12 o'clock, but the case was not
brought on at that hour, and it was stated that the delay
arose as the solicitors for all the parties to the different
proceedings were engaged in endeavouring to agree to the
terms of the order. After an hour his Honour took his
seat, and Mr. Lawranoe for the petitioners, Mr. Read
for some of the directors, Mr. Linklater for the assignees,
and other professional gentlemen for creditors attended.
Mr. Lawrence said that he appeared in support of the
petition by R. C. Newbury and other creditors who bad
proved their debts. He referred to the judgment of the
Lords Justices delivered on Friday, and argued that,
under the 20th section, 7 and 8 Vic., c. 111, the assignees
might petition the Court of Chancery for the appoint-
ment of an assignee for carrying out the object of the
act. The only question appeared to be whether this
was the proper time to present the petition. He con-
sidered that it could not be maintained that the applica-
tion must stand over until all disputes in Bankruptcy
had been settled. He considered that great evil
would arise from any delay, for the shareholders
would, unless protected, be compelled to convert
their property into capital and quit the coun-
try, which would tend to their ruin and the most serious
loss of the creditors. It was therefore highly desirable
that a receiver should be appointed as soon as possible.
He saw no reason why the machinery of both Courts
might not operate together without any confliction
of rights or interests—all that was desired was that the
Court would put the assignees in motion, in order to
facilitate the winding-up of the affairs under the
bankruptcy. He referred to the cases of the
Royal Bank of Australia, and of Messrs.
Wright in bankruptcy, and under the Winding-up
Act in which calls were made on the shareholiers long
before the estates were realised. He considered that
the administration of the estate, under the bank-
ruptcy, would be beneficial to both the creditors,
but unless a receiver were appointed to afford the share-
holders protection, or otherwise, he could not hold
out any hope of a dividend of 20s. in the pound, but an
enormous deficiency.
Mr. Lawrance called Mr. Harding, but it was stated
that he had left the Court, having been sent for by his
Honour the Vice-Chancellor.

Mr. Linklater was heard at great length in objec.
tion to the prayer of the petition, contending that the
affairs might be more readily wound up in Bankruptcy
than by the immediate appointment of a receiver.
His Honour considered the application was premature,
and looking at the acts of Parliament as they read, be
did not consider there would be any advantage to the
shareholders, but, on the contrary, the granting of the
prayer of the petition at the present time might be hold-
ing out a delusion to the creditors.
Mr. Linklater stated that a sum of about 100,009/.
had been paid into court by Mr. Harding, the official
manager, under the order of the Vice-Chancellor, and
that sum would be speedily available for a dividend.
The petition, therefore, stood dismissed ; but hopes
are still entertained that the differences may be adjusted,
and that, after the judgment and expressions of opinion on
the part of the Lords Justices and the learned Commis:
sioner, the order mayibe carried into effect, Mr. Harding
continuing in office in the character of official manager,
and Mr. Lee, the official assignee, carrying out the pro
ceedinge in bankruptcy. Mr. Harding, who was present
during the forepart of the proceedings, was highly corn.
plimented for the urbanity with which he had carried
out his onerous duties. b dividend may be expected
shortly—perhaps in January.