Inglis's Trustee v Inglis
| Jurisdiction | Scotland |
| Judgment Date | 17 January 1924 |
| Date | 17 January 1924 |
| Docket Number | No. 25. |
| Court | Court of Session |
Lord Justice-Clerk (Alness), Lord Hunter, Lord Anderson.
BankruptcySequestrationEstate falling under sequestrationAlimentary ProvisionSuitable alimentExcessBankruptcy (Scotland) Act, 1913 (3 and 4 Geo. V. cap. 20), sec. 98 (2).
A bankrupt was in receipt of alimentary provisions of the net annual value of approximately 721. The bankrupt's wife, his daughter aged seventeen, and a son attending a university, were dependent upon the bankrupt; his other son, who was being educated at a boarding school, was partly dependent on him. The bankrupt had at one time been in the business of his father, a wealthy and successful shipbuilder, but his earnings in the business had never exceeded 200, and it was problematical whether he could now earn anything at any occupation. He had been sequestrated on a former occasion, and in the present sequestration his debts amounted to 27,000, and the probable dividend to about 10d. in the pound.
Held that, within the meaning of the Bankruptcy (Scotland) Act, 1913, sec. 98 (2), the alimentary provisions were in excess of a suitable aliment to the bankrupt in view of his existing circumstances by 300.
On 12th July 1923 Peter Lyle, chartered accountant, Ayr, trustee on the sequestrated estates of Quentin Godfrey Inglis, presented a petition in the Sheriff Court at Ayr craving the Court to find that certain alimentary provisions, to which the bankrupt had right, were in excess of a suitable aliment to him in view of his existing circumstances, to fix the amount of the excess, and to order the excess to be paid to the petitioner as such trustee periodically as it fell due, in terms of section 98 (2) of the Bankruptcy (Scotland) Act, 1913.*
The petition was opposed by Quentin Godfrey Inglis.
The facts of the case as established at a proof were:
The bankrupt was sequestrated on 16th January 1923. The petitioner was duly elected trustee in the sequestration, and was confirmed as such on 1st February 1923. As at 23rd October 1923 the assets realised amounted to 1230, 18s. 6d. Preferable claims amounted to 101, 4s. 6d., leaving 1129, 14s. for distribution among the ordinary creditors, whose claims amounted to 27,339, 11s. 6d. The prospective dividend was therefore 91/2d. per . One claim of 9400, 15s. 2d. was disputed, and, if it were excluded, a dividend of 1s. 3d. per would be available, subject to deduction of expenses. The bankrupt was in receipt of two alimentary provisions(1) an alimentary annuity from a fund called the Husband's Trust Funds, held by the trustees under the bankrupt's antenuptial marriage-contract. This provision yielded an annual income of 222, 10s., which was subject to deduction of income tax; (2) an alimentary provision consisting of the alimentary liferent of 10,000 held by the testamentary trustees of the bankrupt's father. This provision amounted to 554, 0s. 10d. per annum, which was subject to deduction of income tax. The bankrupt's wife had right to the income of the Wife's Trust Funds held by the trustees under the antenuptial marriage-contract. This provision amounted to 35, 2s. 7d. per annum, subject to deduction of income tax.
The bankrupt had a wife, a daughter aged seventeen, and a son, who was attending Glasgow University, dependent on him. Another son was being educated at Sedbergh School, and his school fees were paid by a relative of the bankrupt. The bankrupt was forty-five years of age. He had never worked, except at one time in the business of his father, who was a wealthy engineer and shipbuilder. The bankrupt had been well educated, but he did not apply himself to his work, and earned only about 200 a year while he was employed in his father's business. The bankrupt's father left about 500,000 at his death, and the bankrupt had been brought up in accordance with his father's...
To continue reading
Request your trial