1939 (5) TMI 10

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....gh Council, is not a "creditor" within section 170 of the Companies Act, 1929, and is therefore not entitled to present a petition. Section 170(1) of the Companies Act is as follows: "An application to the court for the winding up of a company shall be by petition, presented subject to the provisions of this section either by the company, or by any creditor or creditors (including any contingent or prospective creditor or creditors), contributory or contributories, or by all or any of those parties, together or separately". Now the only question which arises here, because apart from this I feel no doubt that it is a case in which the winding-up order ought to be made, is this: Are the petitioners "creditors" within the meaning of that se....

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.... upon the question I have to determine : all it determines is that they could not sue. The section does not say that nobody shall petition unless they have a right to sue, but a person, to have the right to petition, must be a creditor, not necessarily a creditor who can recover his debt by action, but a creditor. All I have to consider is whether on the construction of this particular Act the Hampstead Borough Council is a creditor. Counsel for the petitioners has called my attention to the section of the Act which seems to me to be conclusive in favour of the view that a local authority, which has a right to recover rates from a company by distress, is a creditor of that company within the meaning of the Act. I think that is shown by sect....