Scottish Court of Session Decisions

Subject_1 DECISIONS of the LORDS OF COUNCIL AND SESSION. reported by Alexander Tait, Clerk of Session, One of The Reporters For The Faculty.
Subject_2 BANKRUPT

Houston and Company
v.
Claud and Walter Stewarts

1772.

Click here to view a pdf copy of this documet : PDF Copy

It is now a fixed point, that nova debit a do not fall under the Act 1696. This was so found anno 1772, in the case of Houston and Company against Claud and Walter Stewarts. The debt there was contracted, and the money advanced, upon interim personal security, and so continued for seven months ; but it was proved by witnesses, that it had been agreed verbally at the time of lending, and a note, though not holograph, was produced to that purpose, that heritable security should be granted for the debt. Accordingly, this security was granted by Maxwell, for whose behoof the money was advanced, but on the eve of his bankruptcy, and infeftment taken. And though his creditors afterwards brought a reduction on the Act 1696, the Lords were of opinion that it was a novum debitum ; and on that account the reasons of reduction were repelled.