The Sun.
London, England, 1856-11-05 00:00:00

NOVEMBER 5 1t.i56

LAW INTELLIGENCE.---(This Day.)

VICE-CHANCELLOR'S COURT.

THE ROYAL BRITISH BANK.

The learned counsel had not concluded his argumen
when our report left.

COURT OF QUEEN'S BENCII.

(Sittings in Banco, before Lord CAMPBELL, Mr. Justice
COLERIDGE, Mr. Justice WRIGIITMAII, and Mr. Jus-
tice ERLE.)

WOODLAND V. PERT.

This was an action tried at the last assizes for Bri.tol,
and had reference to the cashing of checks, the amount
in question being 3,W. The check was drawn by a per-
son named Hillier, upon the Glastonbury (Stickey's)
Bank, with whom he kept an account in favour of the
defendant, who obtained cash fur it at the Bridgewater
Bank, on the faith that the drawer was in full credit at
the Glastonbury Bank. On the 17th (the day on which
the transaction .took place) hillier, wbo had since left
the country, had a balance of 201. odd to' his credit.
The check was not presented by the 111 idgewater Bank
till the 18th, when it was returned dishonoured, "not
sufficient assets."
d Rule granted.

(Before Sir Richard Kindt:raley.)
IN THE MATTER OF THE WINDING-lIP ACTS 1848-9, AND

Mr. Harding, the official manager, appointed by his
Honour for winding.up of the affairs of the bank, this
morning resumed his arguments in opposing the motion
of Mr. Itolt, to set aside the injunction, and also to set
aside the order for the commitment of Mr. Lee, the
official assignee of the Court of Bankruptcy for contempt-,
and to transfer the possession of the property of the bank
from Mr. Harding to the official assignee. The learned
counsel stated that those who appeared for the creditors
did not attempt to set aside the order for winding op—
en order which had been duly enrolled before the adjudi•
cation in Bankruptcy—and therefore vested all the pro-
perty of the bank in Mr. Harding, the official manager.
The fact that previously to the Winding•Up Act passing
the Legislature ouly 70 out of the 1,000 embarrassed
joint-stock companies had taken advantage of proceed-
ings in bankruptcy showed that the object of the passine
of the Winding-Up Act was to enable them to bring
their affairs to the Court of Chancery for the purpose of
being wound up. Nothing but derangement and ex-
pense would be entailed upon all concerned by the pro-
ceedings going on simultaneously in the two Courts.
Mr. Lewis followed on the same side, and contended
that the course proposed by the other side, that the two
proceedings might go ou concurrently against the bank,
would lead to absurd c3nsequences, because it was well
known that an adjudication in bankruptcy might be pro-
ceeded with against an embarrassed joint-stock company
within 12 months after it bad committed an ac.; of bank-
ruptcy, and therefore the contention of the other side,
that the act for the winding up of its affairs would be
. hold in suspense for 12 months, for the purpose of seeing
whether any shareholders chose to bring the com-
pany under the control of the Court of Bankruptcy.
Besides in the Winding-up act itself there was not the
slightest provision, that when once the winding up pro.
eess had begun in the Court of Chancery, it should be
stayed until its objects had been fully accomplished,
namely, the assets of the company distributed amongst
the shareholders, and the equities between the share-
holders duly adjusted ; the Legislature clearly intended
that there should be an alternative process—either in
chancery or in bankruptcy—and not a duuble process
embarrassed joint stock companies.
His Honour said prima facie it would seem that
under the Bankruptcy Act none but a creditor would
have a right to apply to the Court of Bankruptcy to
authorise the official assignee to apply for a winding-
up order in chancery, and therefore supposed an
individual shareholder had been compelled by an action
at law to pay to an individual creditor some thousands of,
pounds beyond his fair proportion of liabilities, be would
be excluded, according:to the contention of the learned
counsel for the official assignee, from all opportunity such
as was given by the Court of Chancery of comptlling his
fellow shareholders to re►mburse him the amount which
he had been obliged to pay in excess of his fair liabilities.
The learned counsel proceeded with his argument,
and said that the Winding-up Act expressly provided
that as soon as the interim manager should
be appointed, all property of the bank should be
vested in him, and that he, under the direction of the
master, should pay the debts of the company. The
learned counsel, on the other side, had argued that, inas-
much as Mr. Harding was merely the interim, and not
the official, manager at the time of the adjudication, his
right of interfering with the property of the bank ceased
immediately on the appointment of the official assignee,
but the act expressly provided that an interim manager
bad all the power of an official manager, except as the
master might otherwise direct.