Local authority as creditor in winding up: rates recoverable by distress fell within the statutory meaning of creditor.

A local authority entitled to recover rates by distress was treated as a creditor for the purposes of section 170 of the Companies Act 1929 and could present a winding-up petition. The Court held that the inability to sue for arrears of rates did not control the section 170 inquiry; the statutory scheme instead characterised local rates as debts and gave them priority in winding up under section 264. On that basis, the body empowered to recover the rates fell within the meaning of "creditor" in section 170.

---

---

Issues: Whether a local authority entitled to recover rates by distress is a creditor within section 170 of the Companies Act, 1929 and therefore entitled to present a winding-up petition.

Analysis: The Court held that the inability to sue for arrears of rates did not determine the question under section 170. The statutory scheme treated local rates as debts and gave them priority in winding up under section 264, showing that the body entitled to recover those rates was to be regarded as a creditor of the company. The Court concluded that the word "creditor" in section 170 covered a local authority in a position to recover rates.

Conclusion: The local authority was held to be a creditor within section 170 and was entitled to present the petition.

---