HL Deb 17 July 1857 vol 146 cc1680-1

Bill read 3a (according to order), with the Amendments.

THE LORD CHANCELLOR

said, that while he was opposed to giving priority to any judgment creditor of joint-stock banks, which it was the object of this Bill to prevent, yet his attention had been called to the question of registered judgments in Ireland, which operated as mortgages on the estate. A creditor in Ireland on obtaining a judgment and registering it, became a mortgagee, and it appeared hard to take his mortgage from him. To meet this case he proposed that the rights of such creditors should be preserved unless they chose to give up their judgments, or that the mortgage should be taken in full satisfaction of their debt, so as not to enable them to compete with other creditors. He proposed, therefore, that there should be a clause inserted after the 10th clause to the effect "That nothing in the Act should apply to or affect the rights of creditors, unless with their consent, who had obtained judgments in Ireland which had been duly registered."

THE EARL OF DONOUGHMORE

said, that the operation of the clause would unjustly affect the interests of those creditors who in the case of the Tipperary Bank, having found that the Winding-up Act was powerless to bring about a compromise, had sought the only remedy which was open to them, and had registered judgments against individual shareholders. That proceeding upon their part had been pronounced by the Court of Exchequer in Ireland to be perfectly legal, and it was therefore manifestly unfair that they should be called upon to pay back into the common fund the dividend of 2s. which they had succeeded in obtaining.

LORD STANLEY OF ALDERLEY

said, that no doubt this was ex post facto legislation, and deprived some parties of rights which they might have acquired; but it was intended to put an end to an interminable system of litigation, and the only question now was whether these registered judgments should have priority over others. On the face of it that was somewhat doubtful; but in consequence of the peculiar state of the law in Ireland, which made these judgments act as mortgages on an estate, it would be unjust to deprive those who had obtained these judgments of them; but it was also equitable and just that if they had this advantage, those registered judgment creditors ought not to have the advantage of the dividend which had been paid.

Amendment agreed to; clause added to the Bill; Amendments made; Bill passed, and sent to the Commons.

House adjourned at Eight o'clock, to Monday next, Eleven o'clock.