The Sun.
London, England, 1856-12-19 00:00:00

THE ROYAL BRITISH BANK.

COURT OF APPEAL.— (THIS DAY.)
AITCHESON V. LEE.-JUDGMENT.
This morning it having been announced that judgment
would be pronounced in this important case, the doors
of the Court of Appeal were besieged by a large crowd
of persons anxious to hear their lordships deliver their
decision. Shortly after ton o'clock the doors of the
Court were opened, and in a few minutes the place was
densely filled.
On their lordships entering the Court the case of Slit-
cheson v. Lee was called.
It will be recollected that the present proceedings
were to reverse the decision of Vice-Chancellor Kinders-
ley, who had decided that the Court of Bankruptcy ought
finally to settle the affairs of the Royal British Bank,
and Mr. Harding, who had been appointed official
manager under the proceedings in Chanoery, and who
was in possession of the books, estate, and assets of the
bank, should hand them over to the official assignee of
the Court of Bankruptcy.
Lord Justice Knight Bruce, in delivering his judgment,
said the facts connected with this case had been argued
at prodigious length and with much ability, and during
those arguments only one important question had been
raised, and that was ought the adjudication of the pro.
ceedings in Bankruptcy, upon a point purely legal, to be
annulled ? The learned judge then proceeded at length
to detail the proceedings relative to the stoppage of the
bank, the steps taken in the Bankruptcy and Chancery
Courts, during which his lordship said the effect of such
steps was to raise a conflict, which had only added
calamity to the sufferings of the unfortunate shareholders.
The only point that appeared to him to cause any con-
siderable difficulty, was the one whether the bill in
Chancery or the petition in Bankruptcy should prevail.
Ever since the 9th of October, when the proceedings
in Bankruptcy commenced, the official assignee, the
official manager, and their lawyers, servants, and all had '
been in contention, and at length this court was called
upon to adjudge the prize. (Laughter.) His lordship
then proceeded to read extracts from several acts
of Parliament, among them the Winding-up Act,
which was drawn up in such a manner that lawyers, like
other persons, were unable to unriddle it. Taking all the
circumstances of the case into consideration, he was of
opinion that the petition of Mr. Marcus must be dis-
missed, and it followed that the injunction must remain,
and the application for a new injunction be refused. The
position of the official manager was that of a person who
had erroneously taken possession of the property of a
stranger, thinking he had a legal right to retain it. The
Court intended to make but one order in the case
before it, the terms of which would be stated by his
learned brother. The learned Judge, then raising his
voice, said he hoped the Legislature would speedily take
steps to prevent the recurrence of such conflicts and
complications which bad marked the case at present
before them. Miserable complications, distressing con-
flicts, which had been recklessly pursued, occasioning
costly and useless expenses ; sickening delay, and in-
creasing the sufferings and distresses of a large number
of persons. He hoped and trusted that the Legislature
would adopt some measures for preventing similar nefa-
rious proceedings which had marked those of the thing
ironically called the Royal British Bank, and which in
a civilised country ought not to be tolerated. (Sup-
pressed applause.)
Lord Justice Turner then recapitulated the different
motions connected with this cane, which had been before
the Court of Chancery, and after at great length reading
and commenting upon the various sections of the Wind-
ing-up Act, stated that the order of the Court would be
that the petition to annul would be dismissed ; that the
motion to extend the injunction be refused ; that the
decision of Vice-Chancellor Kindersley be affirmed ; that
Mr. Harding should retain a sum, to be mentioned in the
order, to relieve him from all liabilities from the time he
was appointed official manager ; that the official assignee
take immediate possession of the estate at present in
the hands of the official manager ; that as the petition
of the assignees was brought to facilitate the settle-
ment of the affairs of the bank the costs of the peti-
tion should be paid by the assignee out of the estate,
but the costs of the official manager, Mr. Harding, to
be reserved for the present. His Lordship, then ad
dressing Sir Fitzroy Kelly, asked what would be
thought a sufficient sum for Mr. Harding to retain as
security for his costs ?
Sir F. Kelly—At the present moment, my lord, I
am unable to say.
Mr. Rolt (the counsel for the bankruptcy proceed-
ing)— We propose that Mr. Harding retain £20,000,
and that he pay over the rest—the great object on
our part being to get the residue.
Sir F. Kelly—That sum will be perfectly sufficient.
Lord Justice Turner—l think it is very fair.
Lord Justice Knight Bruce —The order is to pay
over all the rest ; the question relating to the costs
of Mr. Harding to stand over.
Sir F. Kelly—lf the sum is mentioned in the order
there will be no objection to pay over the money. It
will be my duty to apply to the court for application—.
Lord Justice Turner—l do hope there will be no un-
necessary application.
Sir F. Kelly—There will not be, my lord.
Lord Justice Turner—Can you form any idea of the
amount that Mr. Harding has expended ?
Sir F. Kelly—l am aware of the expenditure of
about 4,000/., but of course there were other expenses
with which I am unacquainted.
Lord Justice Turner—Will you pay over immediately
the money you at present hold, keeping back 20,000/,
as a guarantee for your expenses.
Sir F. Kelly—Certainly.
Mr. Rolt—lf the money is paid over immediately the
question of the expensea of Mr. Harding could stand over
till the first day of next term.
This course was assented to, and the proceedings ter-
minated.