Scottish Court of Session Decisions

Subject_1Bankruptcy
Subject_2Trustee
Subject_3Discharge
Subject_4Unclaimed Dividends — Expenses — Statute 54 Geo. III. c. 137 (19 and 20 Vict. c. 79).
Facts:

A petition for exoneration and discharge by a trustee appointed in a sequestration awarded under the Act 54 Geo. III. c. 137, set forth that the estate in his hands consisted of unclaimed dividends, the interest arising thereon, and a cash balance; that the only provision of the said Act relating to the disposal of unclaimed dividends was contained in section 45—“that the shares of creditors not called for at the time of distribution shall again be forthwith deposited, as before, on their risk, at such interest as can be got for the same;” and that a meeting of creditors held in terms of sections 72, 75, and 76 of the Act had approved of the petitioner's actings and intromissions and authorised the petition. The petition accordingly craved (1) authority to charge the expenses of the proceedings for discharge (so far as not covered by the cash balance) against the interest accrued on unclaimed dividends; (2) authority to deposit the unclaimed dividends and balance of interest thereon in bank in terms of the Bankruptcy (Scotland) Act 1856, section 153 (according to which no creditor is entitled to interest on unclaimed dividends, but such interest is carried to a general account and ultimately applied to public purposes); (3) decree of exoneration and discharge; (4) that the Court should (in terms of the said Act 54 Geo. III. c. 137, section 76) fix a reasonable time, at the expiry of which the sequestration should be held to be at an end. The Court remitted to the Lord Ordinary, who, on a report made by the Accountant in Bankruptcy, verbally reported to the Court that the prayer of the petition might be granted, one year being fixed as the reasonable time for the closing of the sequestration, and a declaration being added in terms of section 3 of the Bankruptcy (Scotland) Act 1856, that the proceedings in the sequestration should thenceforth be regulated by the provisions of that Act. The last-mentioned declaration was for the purpose of enabling creditors to apply in terms of section 153 of the Bankruptcy Act 1856.