SILVA v. MACK
NLR1V131
SILVA v. MACK.
D. C, Colombo, 61,400.
(Roche Victoria's case.)
Fraudulent deed-Want of consideration-Insolvency of grantor-Creditors,
antecedent and subsequent to date of deed-English law and Roman-Dutch
law-Ordinance No. 7 of 1853, s. 58.
A bond given without consideration by a person in a state of insolvency is void,
as a fraud upon all persons who were creditors at its date and prejudiced by it.
A deed cannot be set aside as fraudulent by a creditor who becomes such after
the date of the alienation, unless it be proved to have been made with an
intention to defeat future creditors.
THE following judgment of the learned District Judge (Mr. Berwick), delivered
on June 22, 1874, fully sets out the facts of the case.
"This is an action against the administrator of the estate of the late Roche
Victoria by an alleged creditor on a bond by the intestate dated 25th January,
1867, for Rs. 7,150 and interest. The libel sues for this sum and interest from
the date of the bond, total Rs. 11,938, and prays that 64 shares of the ship Geraldina Alexandrina Roche, specially mortgaged therefor, may be declared
executable for the claim. The plea of the administrator is that the bond was
voluntary and without consideration, and fraudulently made to defeat creditors.
It does not specify any particular
creditor as prejudiced or intended to
be defrauded. The replication is a traverse and demurrer. A question having
arisen whether an administrator could maintain such a plea, setting up as a
defence the fraud of the party he himself represents, certain creditors of the
deceased were allowed to intervene against the plaintiff, and in their libel of
intervention have repeated the plea of the administrator. These creditors are
Cargill & Co., Armitage Brothers, and E. Labroy, executrix of the estate of the
late Mr. Lorenz.
" As to the want of consideration and indebtedness generally. The bond is dated
January, 1867. The consideration set up is an anterior and old loan said to have
been made in March, 1861, of £250; another loan in September, 1866, of £220;
compound interest on these loans from 1861 till the date of the bond, at 15 per
cent., £245, making a total of £715.
" It is admitted that no security of any kind was given for these loans till
1867 ; that there was no document of any kind to vouch them ; no witness of the
payments ; no evidence whatever of them beyond the unsupported statement of the
plaintiff, who is the deceased's son-in-law and a party in
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