Scottish Court of Session Decisions

The Companies (Consolidation) Act 1908 (8 Edw. VII, c. 69), section 193, enacts—“(1) Where a company is being wound up voluntarily the liquidator or any contributory or creditor may apply to the Court to determine any question arising in the winding-up, or to exercise, as respects the enforcing of calls, or any other matter, all or any of the powers which the Court might exercise if the company were being wound up by the Court. (2) The Court, if satisfied that the determination of the question or the required exercise of power will be just and beneficial, may accede wholly or partially to the application on such terms and conditions as the Court thinks fit, or may make such other order on the application as the Court thinks just.”

On 6th September 1911, Ninian Glen, C.A., Glasgow, and another, the liquidators of Kosmoid Tubes, Limited, Dumbarton, presented a petition under section 193 of the Companies (Consolidation) Act 1908 for approval of the deliverances of the liquidators on the whole claims adjudicated upon by them as contained in their statement of adjudications, and to rank the claims of the creditors in accordance therewith.

After stating the objects for which the company was established, viz., the manufacture of tubes, &c, the capital of the company, original and reduced, and the confirmation of a resolution for the voluntary winding-up, the petition proceeded—“(7) The liquidators have realised the whole assets of the company, and are now in a position to complete the winding-up by paying a dividend to the creditors. The state of affairs of the company, as made up by the liquidators, shows, provided all the claims lodged were admitted to a ranking, a deficiency of £8570, 2s. 8d., which is made up as follows:—

Total net assets	£2,279 0 6
Total claims lodged	10,849 3 2
Deficiency,	£8,570 2 8

“This deficiency may be increased by legal and other expenses so far as not yet paid.

(8) The liquidators have now adjudicated on all the claims lodged. A statement of adjudications, showing the claims lodged, and the liquidators' deliverances thereon, is herewith produced, and confirmation by the Court of all the deliverances contained in said statement is now craved. The following is an abstract of the liquidators' deliverances:—

Total claims lodged with the liquidators by creditors in the liquidation	£10,849 3 2
Of which amount the liquidators have rejected the sum of	8,244 3 9
Leaving as claims admitted to an ordinary ranking by the liquidators	£2,604 19 5”

At the hearing in the Single Bills counsel for the petitioners stated that certain questions had arisen regarding the deliverances pronounced on certain claims; that in order to have these judicially determined a copy of the petition and the deliverance on his claim had been served on each of the creditors, accompanied by the relative excerpt from the state of adjudications; that the induciæ had expired, and that no answers had been lodged. He accordingly craved the Court to grant the prayer of the petition.