Wednesday, November 6, 2013

Determinatiion of character of a company whether it is enemy

Daimler Co. Ltd. V. Continental Tyre & Rubber Co. Ltd.

A company was incorporated in England for the purpose of selling in England tyres made in Germany by a German company which held the bulk of shares in the English company. The holders of the remaining shares, except one, and all the directors were Germans, resident in Germany. During the First World War, the English company commenced an action for recovery of a trade debt.

Held, the company was an alien company and the payment of debt to it would amount to trading with the enemy, and therefore the company was not allowed to proceed with the action.

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