Volume Six - Pre-Victorian to the Present Day - Select Aspects - The Penarth Harbour, Dock & Railway Co. dispute with Messrs. Smith, Knight & Co. . .

The shares in the company were £50 shares, so that there remained upon the shares allotted to Messrs. Smith and Knight a total further liability of £900,000, and they were unable to pay the calls subsequently made. In the year 1865 the company got into difficulties, and ultimately was placed in litigation. Proposals had been made for a compromise of the claims of the company against Messrs. Smith and Knight, and ultimately, a deed was prepared to carry the compromise, but never executed, and there was no proof of any formal resolution approving the compromise, though it was alleged to have been approved by a committee of the creditors of the company.

Messrs. Smith and Knight took out a summon before the Master of the Rolls to have the compromise carried out. His lordship refused the application, and from that appeal the present decision was brought.

Lord Justice Rolt, after discussing the facts of the case and the evidence, said that the result of the whole was that it had been agreed by every one that it would be expedient to accept the proposal made by Messrs. Smith and Knight, but that no binding agreement was come to. All parties thought that the negotiations had gone far enough to justify the preparation of a deed which was to contain the agreement. The court, however, could not make an agreement for the parties, and here his lordship thought there was not sufficient evidence that any agreement had been come to.

His lordship agreed entirely with the Master of the Rolls, and the appeal must be dismissed with costs. Mr. Willcock then asked leave to file a bill to establish the compromise; Lord Justice Rolt said he could give no such leave. If such an order was a matter of course it could be obtained at the Rolls; if, on the other hand, it were a matter of judgment, his lordship did not think that it was a reasonable case for giving leave to file a bill.' - The Engineer [015] [499] 16th August 1867.

1868 (July) - "Mr. Smith, of Smith, Knight, and Co., contractors of Great George-street, Westminister, applied to the Court of Bankruptcy yesterday for an order of discharge. The liabilities exceeded (£) 490,000l., (equivalent to c.£45m in 2022) and the assets consisted of bills receivable, "considered good," 4,000l. ; land at Hornsey, 407l. ; and "a doubtful claim of 118,000l. (equivalent to c.£10.8m in 2022) on the Penarth Harbour, Dock, and Railway Company, not yet realised." No objection was offered, and the order of discharge was granted." - Daily News - London [199] 10th July 1868.