Dunlop Rubber Company Ltd v W B Haigh & Son     Bankruptcy – Assignment for benefit of creditors – Assent by creditors – Limited company –
Debts due to two branches – Assent by one branch – Dissent by other branch.
The plaintiffs, a limited company, had a branch in L and another in B, both of which branches
had dealings with the defendants. The defendants executed a deed of assignment in favour of
their creditors. At the time of the execution of this deed certain sums were due from the
defendants to both the L branch and the B branch of the plaintiff company, and the trustee
under the deed duly informed both branches of the execution of the deed and sent them a
form of assent to the deed for signature. The L branch duly assented to the deed and stated
the amount of their claim. The B branch declined to assent to the deed and commenced
proceedings against the defendants for the amount of their claim. The defendants admitted the
debt, but contended that the plaintiffs had assented to the deed of arrangement and were
bound by its terms, including a release of all claims against the defendants. The
representative of the plaintiffs in L had full authority to deal with the debt owed to the L
branch, but no express authority to deal with the affairs of the B branch, both branches being
run independently and neither having any knowledge of the state of the accounts of the
other:—