Court High Court | Citation(s) (1881) 7 QBD 165 | |
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Judge sitting Nathaniel Lindley, Baron Lindley Similar National Provincial Bank v C, British Eagle Internatio, Re Brumark Investme, Aluminium Industrie Vaassen, Re Spectrum Plus Ltd | ||
British India Steam Navigation Co v Inland Revenue Commissioners (1881) 7 QBD 165 is a case relevant for UK commercial law and UK insolvency law case, concerning the definition of a debenture.
Contents
Facts
The British India Steam Navigation Company had undertaken on paper to pay the holder £100 on 30 November 1882 and pay interest half yearly at 5% pa. The paper said these were “debentures”. Meanwhile, the Stamp Act 1870, a taxation statute, said that “debentures” were subject to a higher rate of stamp duty. The company then tried to argue that in fact these were not debentures at all, and merely a “promissory note”. A. V. Dicey and Farrer Herschell QC appeared for the Revenue.
Judgment
Lindley J held that the instruments were debentures and therefore subject to stamp duty. They were debentures because they were documents that acknowledged a debt.