1941 (7) TMI 16

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....al against the decision of the learned Company Judge sitting in Chambers. When the learned Judge passed his order of the 8th July 1940 the Company was in voluntary liquidation. Subsequent to this order, however, on a petition by the respondent creditor in this case, the learned Company Judge has ordered that the liquidation should be under the supervision of the Court. The material fact is that....

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.... 33. Mr. Justice Pearson says at page 39, "Now I consider that to be a positive decision of the Lord Chancellor, that when the Company is ordered to pay the costs, those costs are not to be paid pari passu with the other creditors, but are to be paid forthwith, and that the successful litigant is to be put in the same position as if he had got judgment at law and had been allowed to issue executio....

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.... estate and the creditors brings a fruitless action, or resists an action fruitlessly, it is only right that the successful litigant should have priority for his costs over the creditors whom the liquidator represents. This authority has been followed by Mr. Justice Vaughan Williams in In re London Metallurgical Company [1895] 1 Ch. D. 758. The learned Judge, however, points out that although ther....