G. & R. M'Culloch v. Gillon

Subject_1 Bankruptcy Subject_2 Illegal Preference Subject_3 Petition to Annul Bankrupt's Discharge Subject_4 Bankruptcy (Scotland) Act 1856 (19 and 20 Vict. c. 79), sec. 151. Facts: Evidence on which the court granted the prayer of a petition for annulling a bankrupt's discharge in terms of the bankruptcy (Scotland) Act 1856, sec. 151.

This was a petition presented in the Bill Chamber under section 151 of the Bankruptcy Act 1856 for the purpose of having the discharge of a bankrupt annulled, on the ground that he had given a preference or a gratuity to a creditor to induce him to consent to a certain composition being accepted, and so to facilitate his discharge.

The facts, so far as material, with the exception after noted, sufficiently appear from the opinion of the Lord Ordinary ( Pearson ), who, after a proof, issued an interlocutor dated 20th March 1897 refusing the petition.

Opinion .—“This is a petition under section 151 of the Bankruptcy Act 1856, in which I am asked to annul a bankrupt's discharge, on the ground that he was personally concerned in the giving of a preference or gratuity to a creditor for supporting an offer of composition, and thereby facilitating the discharge.

The bankrupt Alexander Gillon held a public-house licence in his own name. The business was carried on under the firm of J. & A. Gillon, the lease of the premises being taken and the goods in stock being supplied in the firm name. The initials of the firm represented the bankrupt's two sons, one of whom was a minor, and I think it may be taken that the business truly belonged to the father.