"FROM THE GRAVE"

Evening Post, Volume CXXI, Issue 85, 9 April 1936, Page 5

"FROM THE GRAVE"

CAN A BANK RETURN ?

"Is it to be said that a dissolved foreign corporation • can arise from the grave- in full life and vigour and be entitled to sue to recover property which for years has been the property of the Crown?"

In these words Lord Russell of Ktllowen expressed the problem that faced the House of Lords in an appeal (says the "Daily Telegraph"). It .was heard by Lord Russell, Lord Blanesburgh, Lord Atkin, Lord Macmillan, and Lord Maugham.

They gave reserved judgment allowing the appeal of the Russian and English Bank and Mr. F. M. Guedalla, solicitor. The respondents were Baling Brothers and Co., Ltd.

The Law Lords were asked to.vary an order made in (he Chancery and Appeal Courts, staying oil proceedings in an action claiming two sums o£ £80,000 and £100.000 as due to the Russian and English Bank.

Lord Atkin, delivering judgment, said that the question to be decided was whether the liquidator appointed after the Russian and English Bank had been ordered to be wound up might use' the name of the bank to sue for recovery of the alleged debt. The claim was said to be in respect of purchases made for the former Russian Government during the war.

The Russian Government was alleged to have reimbursed the bank by orders upon Baring Brothers, who held an account for the Russian Government in London.

It was said by Baring Brothers that the bank was a Russian corporation which was dissolved by Russian law in or about 1938 and that, therefore, it could not sue.

Lord Atkin said he thought they were entitled to imply that a foreign corporation was to be wound up in accordance with the provisions of the Companies Act as though it had not been dissolved and therefore continued in: existence. . ■

Lord Blariesburgh and Lord Macnallan agreed with Lord Atkin, but dissenting judgments were delivered by Lord Russell of Killowen and Lord Maugham.

;. Lord' Russell said that when the Russian and English Bank ceased to exist seventeen years ago the property which it owned in this country became the property of the Crown. •

The appeal was allowed by a majority of three to two.