Subject_1 ADJUDICATION and APPRISING. Subject_2 NATURE and EFFECT of this DILIGENCE.
Ranking of the Creditors of the York-Buildings Company
Date: 21 January 1783 Case No. No 23.
A creditor by an English penal bond, after obtaining decreet of adjudication, is entitled to interest on the penal sum.
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Of the penal bonds, issued by the York-buildings Company, some had been secured by adjudication against the Company's estates in Scotland, before twenty years had elapsed from the term of payment. The creditors in these having insisted to be ranked for the penal sums contained in the decreets of adjudication, and for interest thereafter till paid, the common agent
Pleaded: By the tenor of these bonds, the obligation of the debtor can in no event exceed the penal sum; nor is effect, by the practice of England, ever given to them beyond that extent. Hence, as the object of the diligence of adjudication is the security of the debt, and not its enlargement, the creditors can be ranked only for the penal sum.
Answered: Though, to the effect of restoring debtors against the penal consequences of an expired legal, adjudications be now considered merely as securities, they are, in their proper nature, sales under reversion. Justice, therefore, will not permit the reverser, by delaying to redeem, to forfeit his creditor of the advantage the latter would have derived from the use of his money.
The Lords found these creditors entitled to be ranked, not only for the penal sums, but also for the interests thereon, after the date of their several decreets of adjudication.
Lord Reporter, Monbodds.For the Common Agent, Lord Advocate (Dundas), Blair, Buchan-Hepburn, Elphinston.For the other Creditors, Ilay Campbell, Wight.Clerk, Colquhoun.
Fol. Dic. v. 3. p. 12. Fac. Col. No 87. p. 134.
