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Held (following M'Phail v. Hamilton, 5 R. 1017; and Roy v. Hamilton & Co., 5 Macph. 573) that a petition presented under the above section by the trustee on the sequestrated estates of a part owner of a vessel, to have the other part owner restrained from dealing with the shares for a limited period, is incompetent.
The estates of Peter Baillie, shipowner and coal merchant, Inverness, were sequestrated on 1st March 1879, and David Urquhart, accountant there, was appointed trustee thereon. This petition was presented by the trustee under the 65th section of the Merchant Shipping Act 1854. He averred that “at the date of his sequestration the said Peter Baillie was, and had been for a considerable time previously, managing owner and ship's husband of the British ship ‘Clachnacuddin,’ of Inverness, and at that date there was due to him, as managing owner aforesaid, in account with the owners of the said ship, the sum of £1843, 19s. 11d., conform to account herewith produced and referred to. The bankrupt himself was at said date owner of 52/64th shares of the said ship, while the remaining 12:64ths stood in the register in the name of ‘Mrs Phebe Jeffrey of Garmouth, in the county of Elgin, widow of the late James Jeffrey.’ Accordingly, of the above sum the proportion due by Mrs Jeffrey was 12/64ths, or £345, 15s. No part of the said last-mentioned sum has been paid to the petitioner, notwithstanding that he has made frequent application for payment of the same to Mrs Jeffrey and her agents, and the same is still due and resting-owing by her to him as aforesaid. Since the date of the said sequestration neither the petitioner nor the bankrupt have had any intromissions with the said ship, or its earnings or profits, the ship having been managed by other parties in the interests of mortgagees of the bankrupt's shares and of Mrs Jeffrey. The petitioner has recently learned that in or about June 1878 the said Mrs Jeffrey was married in Elgin to John James Stewart, hotel-keeper, Gympie, Queensland, Australia, and has since left this country,
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and is now resident at Gympie aforesaid with him. The petitioner is not aware whether there was any marriage-contract entered into between Mrs Jeffrey and Mr Stewart. The said 12/64th shares of the said vessel still stand in the register of the port of Inverness in name of Mrs Jeffrey.” “The ‘Clachnacuddin’ has been valued at £1000, and on this valuation, which it is believed is a correct one, the value of the said 12/64th shares is £187, 10s. Neither the said Mrs Phebe Jeffrey or Stewart nor her husband have, so far as the petitioner is aware, any other property in this country. In these circumstances the petitioner conceives it to be his duty to make the present application to your Lordships to prevent any dealings in the said 12/64th shares of the said ship till the said debt of £345, 15s. is paid. The petitioner intends forthwith to take such steps as he may be advised towards operating payment of the said sum from the said Mrs Jeffrey or Stewart and her husband.” He therefore prayed the Court to grant an interim, order prohibiting any dealing with the said 12/64th shares for one month, and thereafter to interdict any dealing with the shares for one year from the date of the interlocutor ordering such prohibition, unless their Lordships should see cause before the expiry of the said period to withdraw such prohibition on an application by any parties interested in the said ship.
The Lords on 23d February 1882 pronounced this interlocutor:—“The Lords appoint this petition to be intimated on the walls and in the minute-book for eight days, and to be served on Messieurs Adam & Winchester, the known law agents of Mrs Jeffrey or Stewart, mentioned in the petition, and ordain them to lodge answers, if they any have, for behoof of their said client, within eight days after said service; meantime prohibit any dealing with the 12/64th shares of the ship ‘Clachnacuddin’ of Inverness, presently standing in the name of ‘Phebe Jeffrey of Garmouth, in the county of Elgin, widow of the late James Jeffrey,’ for one month from the date of this interlocutor, and decern ad interim; and grant warrant for serving the registrar of the port of Inverness with a certified copy of this interlocutor.”
Answers were thereafter lodged by Messrs Adam & Winchester, S.S.C., for behoof of Mrs Phebe Stewart, denying, inter alia, the petitioner's averments in regard to the value of the vessel, and Mrs Stewart's indebtedness on account of her shares, stating that on a proper accounting nothing would be found due by Mrs Stewart, and submitting that the application was unnecessary and incompetent under the Merchant Shipping Act.
The Merchant Shipping Act 1854 (17 and 18 Vict. c. 104), provides (sec. 65)—“It shall be lawful in England or Ireland for the Court of Chancery, in Scotland for the Court of Session, in any British possession for any Court possessing the principal civil jurisdiction within such possession, without prejudice to the exercise of any other power such Court may possess, upon the summary application of any interested person, made either by petition or otherwise, and either ex parte or upon service of notice on any other person as the Court may direct, to issue an order prohibiting for a time to be named in such order any dealing with such ship or share; and it shall be in the discretion of such Court to make or refuse any such order, and to annex thereto any terms or conditions it may think fit, and to discharge such order when granted, with or without costs, and generally to act in the premises in such manner as the justice of the case requires; and every registrar without being made a party to the proceedings, upon being served with such order, or an official copy thereof, shall obey the same.”
The respondents cited Roy v. Hamilton & Company, March 9, 1867, 5 Macph. 573; and M'Phail v. Hamilton, July 5, 1878, 5 R. 1017.
The Lords, without delivering opinions, refused the prayer of the petition, recalled the interim, order made by said interlocutor of 23d February 1882, and granted warrant for intimating this interlocutor to the registrar of the port of Inverness.
Counsel for Petitioner— Jameson. Agents— Murray, Beith, & Murray, W.S.
Counsel for Respondents— Young. Agents— W. Adam & Winchester, S.S.C.