TMI Blog1946 (3) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... epresented before me by counsel. This company is able to pay all its debts including, in the case of those bearing interest, interest up to the date of payment. There is also sufficient to pay interest on the debts which do not carry interest, if such payment is permissible in law. The directions asked for by the Official Receiver are on this point and the question accordingly is whether a creditor .of a company whose debt does not carry interest is, in any ,circumstances, entitled, in winding-up, to payment of interest. It has been held in England consistently since 1869 that, where a company in liquidation turns out to be solvent, creditors whose debts carry interest by agreement or otherwise are entitled out of the surplus assets to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled, if he was entitled to interest under the terms of a decree or if he had become entitled by reason of a "demand" within the meaning of that expression in the Interest Act. Only one case has been brought to my notice in which it was held that in circumstances like the present a creditor whose debt does not carry interest will be entitled to receive interest. That is In the matter of the Dehra Dun Mussourie Electric Tramway Co., Ltd [1934] 4 Comp Cas 66 ; 56 All 423 . In that case Young, J., held that when there was a surplus in the winding up of a company, the creditors are entitled to payment of interest from the date of the winding up until payment and that such interest is payable not only to the creditors whose debts carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the debt in question was one which did not carry interest, his Lordship observed: "It cannot make the slightest difference whether there is a balance in the hands of the Official Liquidator, or whether a call is to be made. The question is, whether you are entitled to interest? If you are entitled to interest, I should make a call to pay it; but I am of opinion, you are not so entitled, and therefore, except upon all those debts which carry interest (and on those you must have interest according to the rate which they respectively carry according to the agreement between the parties), I must hold that you are not entitled to any interest." In passing I may observe that his Lordship went on to express the view that a claim made in a wind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to his rights under his contract; and on the other hand, a creditor who has not stipulated for interest does not get it." For these reasons I hold that interest is payable up to the date of payment to those creditors, if any, whose debts carried interest, but that no interest should be paid to the creditors whose debts did not carry interest. I give that direction on the first point asked by the Official Receiver. The second point on which directions are asked is as regards the rate of payment to the contributories. In a further report which the Official Receiver has filed, he-states that he will be in a position to pay the contributories a return of their capital at the rate of 0-2-9 in the rupee in the event of my directing on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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