Scottish Court of Session Decisions

This was an application by Daniel M'Intyre, C.A., Dundee, liquidator, acting under the supervision of the Court, of the Victoria Public Buildings Company, Limited, presented under the Companies Acts 1862 to 1890, and particularly sections 95, 131, and 151 of the Companies Act 1886, craving the authority of the Court to sell the property of the company, and in the meantime to carry on the business of the company. The prayer with reference to the business was as follows—“And also to sell the furniture and fittings therein, either at a valuation or by public roup or private bargain, as the liquidator may deem most expedient; and to sanction the liquidator carrying on the business of the company for such time as he may think proper, but not beyond Whitsunday 1893, and to pay out of the money from time to time in his hands, the wages and remuneration of the persons employed in the said business, and also all such outgoings, including cost of upkeeping buildings, feu-duty, rates, and taxes, as may from time to time become due and payable, in respect of the said subjects and their occupation by the company, and to execute such deeds and documents, and do such acts as may be necessary for, or incidental to the exercise of such powers.”

The petition set forth—“The property of the company consists of—(1) A public hall in Arbroath, which with additions and improvements, has cost the company £1683, 17s.; (2) the furniture and fittings in the hall, which have cost the company £79, 14s. 11d.; and (3) miscellaneous articles in

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the secretary's office, which are worth about £6 or £7. There are heritable debts on the property, amounting, with interest to Martinmas 1892, to £870, 10s. or thereby. The heritable creditors are The Arbroath West Port Association, Limited, having its registered office at Nos. 2 and 4 Keptie Street, Arbroath, for £550; Mrs Ann Anderson or Fraser, widow, residing at Killorn Cottage, Stirling, for £200, and the Royal Bank of Scotland for £103. The preferable debts due by the company, including expenses of liquidation, amount to about £180, and the ordinary debts amount to about £150.

“The capital of the company was, by memorandum of association, fixed at £2500, divided into 2500 shares of £1 each. 1250 shares have been issued, of which 1241 are fully paid up, and the arrears of calls amount only to £4.

The liquidator proposes, with consent of the bondholders, to expose the hall property to public sale in January or February next, which is the best time for selling heritable property in Arbroath, and to sell the moveable fittings and effects of the hall, at a mutual valuation, to the purchaser of the hall property.

In the meantime, until the property is sold, it will be essential for the beneficial winding-up of the concern that the business of the company should be carried on by the liquidator. The business consists simply of letting the halls for entertainments and for public and private meetings; and contracts have been entered into, some of which will not expire until Whitsunday 1893. The only liabilities which the liquidator will incur by doing so will be the taxes, caretaker's salary, feu-duty, interest, any repairs necessary in up-keeping the buildings, and such like, and the current revenue will in all probability be sufficient to meet these liabilities.”

Reference was made by the petitioner to More (Liquidator of the Burntisland, Oil Company, Limited) v. Dawson and Others, 30 S.L.R. 180.

The application was granted.