The Governor and Company of the Bank of Scotland v. The "Nel"

In Maritime Liens, Mortgages & Priorities on (Updated )

This was an application by the Plaintiff mortgagee for payment out of Court of part of the proceeds from the sale of the Defendant vessel. The Prothonotary noted that there has been a practice to pay out, from sale proceeds, funds which are clearly in excess of the amount needed to satisfy the claims against the vessel provided full disclosure is made of other claimants and all claims are before the Court. The Court was satisfied that more than sufficient funds would be left in Court after the payment out and that all claimants had had an opportunity to lodge claims. The Court therefore ordered that the excess funds could be paid out upon the undertaking of the Plaintiff to repay any portion of the advance should it later be determined the advance was excessive to the prejudice of the other claimants.