"Trying to Sell a Licence Used Illegally for Two Years"
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"A FLAGRANT and blatant attempt to sell a licence" was how Mr. James Amphlett, objecting for S. G. and R. D. Biss, coach operators of Bishop's Stortford. Herts, described an application by Mr. E. G. Wright of Harlow, Essex, in London last week. The licences in question had expired in November, 1959, but the operator had continued to provide the same services with the same frequency ever since. On November 23 of this year, the Eastern National Omnibus Co., Ltd., lodged an application to take over the business of Mr. Wright. Mr. D. I R. Muir, the Metropolitan Commissioner, reserved his decision and it will be given in writing.
Mr. Denis McDonnell said that nominally he was appearing for Mr. Wright but, in fact, the applicant had been adjudged bankrupt in April last. A trustee had been appointed in the same month and had immediately discussed the licences of the business with Mr. Wright and been assured that they were in order. The trustee then proceeded to negotiate for the sale of the business to Eastern National and it was then discovered that the licences had long expired. Agreement had now been reached in principle and a draft agreement was in course of settlement. Both parties were willing to complete and the purchase was conditional upon the grant of the licence, Co-operation Lacking
There was no doubt, said Mr. McDonnell, that the applicant had been operating illegally. Earlier this month, he had been convicted for certain offences.
Mr. H. C. Hedges, the trustee in bankruptcy, said that he had received no co-operation from Mr. Wright. He checked the details of his licence with Eastern National and then arranged for the applicant to make an application for
a, short-term licence. Eventually, this was refused. Asked whether the probable assets would enable the creditors to be met in full, Mr. Hedges said that if they were, there would certainly be nothing left over for Mr. Wright. The goodwill value being offered by Eastern National was in excess of the market value. There was also a claim for breach of contract on the vehicles.
"What you are doing," suggested Mr. Amphlett, "is trying to sell a licence that has been used illegally for two years?"
"What alternative had I? answered Mr. Hedges.
"Rightly or wrongly," interposed the Commissioner, "you thought that the interests of the creditors came before strict adherence to the law." The witness agreed.
Mr. L. J. Quilter, traffic manager of Eastern National, in answer to Mr. Amphlett said that it could be looked upon as an attempt to buy a licence. He A22 denied that his company knew that the applicant had been operating illegally; the negotiations to purchase the business were started earlier in the year when the details of the licence were not fully known.
Mrs. E. K. Wright, wife of the applicant, told Mr. Muir that the forms of application for the renewal had been sent at the proper time. She alleged that they must have been lost. She had spoken to someone on the telephone who had asked her if she had received the licences. When she had answered "no," he had said that he would deal with it.
No Backing Received Asked by Mr. Amphlett whether she had received the backing from the three other areas as a result of the applications made in the Metropolitan area, Mrs. Wright said she had not
Mr. McDonnell said that Eastern National would not be buying a licence but the goodwill of a business that had been operating 30 years. Goodwill included such things as freeholds. The sale of the business was the only prospect of the creditors. Mr. McDonnell claimed that the Act only required the Commissioner to consider the conduct of the holder of a P.S.V. licence, not a Road Service Licence.
Following the hearing, Eastern National opposed an application by S. G. and R. D. Hiss to add a day return to their express service to Hastings and Eastbourne. The applicants had refrained from seeking the grant at the time of the express grant because of an understanding with E. G. Wright. This decision, too, is reserved.