Scottish Court of Session Decisions

Section 24 of the Building Societies Act 1874 provides that every officer of a society registered under the Act “shall, upon demand made, or notice in writing given or left at his last or usual place of residence, give in his account as may be required by the board of directors or committee of management of the society, to be examined and allowed or disallowed by them, and shall, on the like demand or notice, pay over all the monies remaining in his hands, and deliver all securities, and effects, books papers, and property of the society in his hands or custody to such person as the society appoint; and in case of any neglect or refusal to deliver such account or to pay over such monies, or to deliver such securities, and effects, books, papers, and property in manner aforesaid, the society may sue upon the bond, or may apply to the Court, who may proceed thereupon in a summary way, and make such order thereon as to the Court in its discretion shall seem just, which order shall be final and conclusive.”

The First Edinburgh and Leith 415th Starr-Bowkett Building Society raised an action in the Sheriff Court at Edinburgh against their secretary, Alexander Munro, accountant, East London Street, Edinburgh, to have him ordained to give in an account of his intromissions as secretary with the society's funds, and pay over the balance thereon, and deliver up all the titles, books, and documents in his possession as secretary to a person named. The condescendence set forth that the defender having refused to obey the directions of the society had been removed from his office, but refused to give up an account or deliver the society's documents. The pursuers pleaded that the defender having been appointed secretary, and having been legally removed from office, they were entitled to decree as prayed for. The defender denied that he had been legally dismissed, and pleaded, inter alia, that being still secretary he was “entitled to have and hold possession of all the books, documents, and other effects of the society, in terms of the rules of the society.” The Sheriff on 25th June 1883, on appeal from the Sheriff-Substitute, pronounced an interlocutor allowing to both parties a proof of their respective averments, and a diet of proof was fixed.

The defender appealed to the Court of Session, and upon the motion that the case be sent to the roll the respondents objected to the competency of the appeal, and argued that under sec. 24 of the Building Societies Act of 1874 the interlocutor of the Sheriff was final.

The appellant argued that this was not a dispute of the kind contemplated by the Act, from which there could be no appeal, and that the only reason alleged for demanding the books was his alleged dismissal, which, if it had happened, took the case out of sec. 24.

Authorities—37 and 38 Vict. cap. 42, secs. 4, 24, and 36; Davie v. Colinton Friendly Society, November 10, 1870, 9 Macph. 96; Hamilton v. Hamilton, March 20, 1877, 4 R. 688; Rain v. Gill, May 19, 1877, 4 R. 732.