Ranking of the Creditors of the York-Buildings Company
Date: 31 January 1783 Case No. No 69.
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The greatest part of the debts due by the York-Buildings Company were constituted in the form of English penal bonds, the nature of which is, that the debtor, upon his failure to pay at the stipulated term, is subjected in the double of the sums advanced.
The creditors in some of these bonds, upon which no diligence had followed for more than 20 years after the term of payment, having claimed to be ranked, the common agent
Pleaded, By the law of England, which must limit the endurance of debts contracted in that country, a presumption of payment arises from bonds of this sort having been allowed to lie over for 20 years, which cannot be elided but by proof brought by the creditor that the debt is still outstanding.
Answered, The bankrupt situation of the Company ever since these bonds were granted, and the real incumbrances which affected their property of every kind, remove in this case all presumption of payment arising from the creditors' taciturnity.
The Lords “repelled the objection, in respect, from the special circumstances of this case, there is no room for the presumption of the bonds having been paid by the Company.”
Reporter, Lord Monboddo.Partibus ut supra.
Fol. Dic. v. 4. p. 120. Fac. Col. No 86. p. 133.
