St. Thomas Food Products Corporation v Central Purchasing Agency Ltd et Al

• Jurisdiction: British Virgin Islands
• Court: Court of Appeal (British Virgin Islands)
• Judge: Davis, C.J.,,St. Bernard, J.A.,,Peterkin, J.
• Judgment Date: 14 June 1976
• Neutral Citation: VG 1976 CA 6
• Docket Number: Civil Appeal No. 3 of 1976
• Date: 14 June 1976

Court of Appeal

Davis, C.J., St. Bernard, J.A., Peterkin, J.A

Civil Appeal No. 3 of 1976

St. Thomas Food Products Corporation

and

Central Purchasing Agency Ltd. et al

Appearances:

M. Riegels for the appellants.

E.A.C. Hewlett for the respondents.

Company law - Winding up.

Facts: Appellants obtained judgment against respondents. Writ of execution issued on same date. Goods seized by bailiff and sale arrangement for August 23, 1975. On August 22, 1975 winding up petition filed by creditor of respondent company. Application to stay proceedings filed. Sale of goods allowed owing to their deterioration. Order for winding up made shortly afterwards. Appellants and liquidator both claiming proceeds of sale.

Held: Sale proceeds to be paid out to appellants less expenses in connection with the seizure and sale of goods. Appeal allowed.

JUDGMENT OF THE COURT

1 These two appeals were heard together by consent. They arose out of an Interpleader Summons filed on behalf of the Provost Marshal calling upon the plaintiff execution creditor and the liquidator claimant to appear and state the nature and particulars of their respective claims to the proceeds of the sale of the goods seized and sold by the Provost Marshal under two writs of fieri facias issued in these actions.

2 The summons came before Hewlett, J, in chambers on 15 ^th January, 1976, when the learned judge held that the appellants were not entitled to the proceeds of sale in the hands of the Provost Marshal but that these funds should be paid over to the liquidator appointed by the court. He did, however, find that the appellants by their diligent action had taken certain steps to secure a judgment and seizure and had thereby put themselves in a preferred position to an ordinary or unsecured creditor.

3 The facts are brief. The appellants obtained judgment against the respective respondents on 31 ^st July, 1975 and on the same date issued a writ of execution, as a result of which the bailiff seized the goods of the respondent on 12 ^th August, 1975, and arranged for a sale of these goods on 23 ^rd August, 1975. On 22 ^nd August, 1975 a petition for winding up was filed by George Norman of Road Town, Tortola, a creditor of the respondent company who at the same time filed an application to stay all proceedings in any action against the said company and in particular the sale of any of its goods under execution pending the determination of the said...