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Phillips (Liquidator of A J Bekhor and Co) and Another v Brewin Dolphin Bell Lawrie Limited and Another: CA 17 Mar 1999

When considering whether a breach went to the root of a contract, an associated contract could be split off, even though it would not be split off for insolvency purposes when asking whether a transaction was at an undervalue. Judges: Morritt LJ, Lord Woolf MR Citations: Times 30-Mar-1999, [1999] BCC 557, [1999] EWCA Civ 1007, … Continue reading Phillips (Liquidator of A J Bekhor and Co) and Another v Brewin Dolphin Bell Lawrie Limited and Another: CA 17 Mar 1999

Chohan v Saggar and Another: CA 27 Dec 1993

The word ‘and’ in sections 423(2)(a) and 423(2)(b) is to be read conjunctively not disjunctively. Section 238(3) is to be interpreted as requiring restoration of the former position ‘as far as possible’ or ‘as far as practicable’, and that accordingly subsequent events were not an absolute bar against setting aside the sale. Nourse LJ: ‘The … Continue reading Chohan v Saggar and Another: CA 27 Dec 1993

Stanley and Another (As The Joint Liquidators of New Grass of Manchester Ltd) v TMK Finance Ltd and Another: ChD 21 Dec 2010

The liquidators sought relief saying that the company had sold its principle capital asset at an undervalue to its parent company. Judges: Richards J Citations: [2010] EWHC 3349 (Ch), [2011] BPIR 876, [2011] Bus LR D93 Links: Bailii Statutes: Insolvency Act 1986 238 241 Jurisdiction: England and Wales Insolvency Updated: 21 October 2022; Ref: scu.427408

Phillips (Liquidator of A J Bekhor and Co ) and Another v Brewin Dolphin Bell Lawrie: HL 18 Jan 2001

The company sold its business to the respondent for one pound, but the respondent agreed to sublease computer equipment for an amount equivalent to the value of the company. The company defaulted, and the computer equipment was recovered. The respondent refused to pay under the sub-lease. The trustee of the company in liquidation sought to … Continue reading Phillips (Liquidator of A J Bekhor and Co ) and Another v Brewin Dolphin Bell Lawrie: HL 18 Jan 2001

Re Priory Garage (Walthamstow) Limited: ChD 2001

The court considered the relevance of a statutory limitation period in relation to applications to set aside transactions as being at an undervalue or as voidable preferences under section 238 to 241 of the 1986 Act. Applications to set aside transactions under the sections are generally actions on a specialty within the meaning of section … Continue reading Re Priory Garage (Walthamstow) Limited: ChD 2001

Re Paramount Airways Ltd (In Administration): CA 8 Apr 1992

It was said that there had been a transction at an undervalue within section 238. It was given effect by a transfer to a bank in Jersey, from which recovery was no sought. The bank claimed that the section did not have extra-territorial effect. Held: The argument failed; the section did not purport to have … Continue reading Re Paramount Airways Ltd (In Administration): CA 8 Apr 1992

In re Hampton Capital Ltd: ChD 9 Jul 2015

The companyy’s joint administrator requested orders under section 238 as against various payments made by the Company and for payment of the equivalent sums. George Bompas QC [2015] EWHC 1905 (Ch) Bailii Insolvency Act 1986 238 England and Wales Citing: Cited – Lipkin Gorman (a Firm) v Karpnale Ltd HL 6-Jun-1991 The plaintiff firm of … Continue reading In re Hampton Capital Ltd: ChD 9 Jul 2015

Mann Aviation Group (Engineering) Ltd v Longmint Aviation Ltd and Another: ChD 19 Aug 2011

Administrators of the claimant company asserted that the company had held informal leases of two hangars owned by the defendant, and also complained of their transfer at an undervalue. The first defendant said that the occupations were under license only. Held: The occupation, having the characteristics of a tenancy, was in fact a tenancy. As … Continue reading Mann Aviation Group (Engineering) Ltd v Longmint Aviation Ltd and Another: ChD 19 Aug 2011

Ben Hashem v Ali Shayif and Another: FD 22 Sep 2008

The court was asked to pierce the veil of incorporation of a company in the course of ancillary relief proceedings in a divorce. H had failed to co-operate with the court. After a comprehensive review of all the authorities, Munby J said: ‘The common theme running through all the cases in which the court has … Continue reading Ben Hashem v Ali Shayif and Another: FD 22 Sep 2008

Ramlort Ltd v Michael James Meston Reid: CA 8 Jul 2004

The company sought to claim under a life policy. The deceased had died in Scotland insolvent. The trustee of the policy had declared that he held it on trust for the claimant, but the defendant, the judicial factor of the estate, said the declaration of trust was ineffective as a transaction at an undervalue. The … Continue reading Ramlort Ltd v Michael James Meston Reid: CA 8 Jul 2004

Lonsdale v Howard and Hallam Ltd: CA 8 Feb 2006

The claimant sought damages after his agency with the defendants was terminated. The central issue was whether compensation was to be calculated at two years commission as derived from French practice or otherwise. Held: ‘there is no clear agreement on the principles governing the assessment of compensation under regulation 17(6) . . . the common … Continue reading Lonsdale v Howard and Hallam Ltd: CA 8 Feb 2006

In re Highfield Commodities Ltd: ChD 1985

The court’s discretion in appointing provisional liquidators is unfettered provided it is exercised in a ‘proper judicial manner’. Sir Robert Megarry V-C said: ‘I would respectfully express my complete agreement with the view taken by [the judge]. I do not think that the old authorities, properly read, had the effect of laying down any rule … Continue reading In re Highfield Commodities Ltd: ChD 1985

Gita Ram v Baskinder Ram,Solinder Ram, Monder Ram and Maurice William Russell: CA 5 Nov 2004

A bankrupt had, before his bankruptcy disposed of his share in a house at an undervalue. His wife appealed an order that the share disposed of should vest entirely in the trustee in bankruptcy. Matrimonial proceedings had also been commenced. Held: The wife was seeking effectively not re-instatement, but the creation of a position which … Continue reading Gita Ram v Baskinder Ram,Solinder Ram, Monder Ram and Maurice William Russell: CA 5 Nov 2004

Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1513): CA 9 Dec 2005

The department complained that the defendants had entered into a transaction with their farm at an undervalue so as to defeat its claim for recovery of sums due. The transaction used the grant of a tenancy by the first chargee. Held: The farmers’ appeal as to the farm transaction failed: ‘beyond argument that DEFRA was … Continue reading Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1513): CA 9 Dec 2005

BNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL Plc and Others: ChD 30 Jul 2010

The parties disputed whether the respondent was in law insolvent at the time it entered into financial transactions with it. Held: The Court rejected the Noteholders’ submission that Eurosail was plainly insolvent for the purposes of section 123(2) as applied, relying on four points. First, Eurosail’s claims in the insolvencies of other companies, though not … Continue reading BNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL Plc and Others: ChD 30 Jul 2010

Steele, Regina (on the Application of) v Birmingham City Council and The Secretary of State for Work and Pensions: CA 16 Dec 2005

The claimant had received an overpayment of benefits (Job seeker’s allowance), but then was made bankrupt. He now said that this was a debt in the bankruptcy. Held: It was not. At the date of the bankruptcy order, the possible reclaim was not yet a contingent debt, and he remained liable. There was no contingent … Continue reading Steele, Regina (on the Application of) v Birmingham City Council and The Secretary of State for Work and Pensions: CA 16 Dec 2005

Exeter City Council v Bairstow and others; Re Trident Fashions plc: CA 10 Mar 2006

Judges: Rix, Maurice Kay LJJ, Sir Martin Nourse Citations: [2006] EWCA Civ 203, [2007] Bus LR 813 Links: Bailii Statutes: The Insolvency Act 1986 Jurisdiction: England and Wales Cited by: Cited – In re Nortel Companies and Others SC 24-Jul-2013 The court was asked as to the interrelationship of the statutory schemes relating to the … Continue reading Exeter City Council v Bairstow and others; Re Trident Fashions plc: CA 10 Mar 2006

Aiglon Limited and another v Gau Shan Co Limited: ChD 1993

The defendants had obtained world-wide Mareva injunctions in support of substantive proceedings by way of their counterclaim to enforce an arbitration award against the plaintiffs under section 26 against two companies, Aiglon Limited and L’Aiglon SA (a Swiss company). Held: There was no basis under section 26 for enforcement of the arbitration award against SA, … Continue reading Aiglon Limited and another v Gau Shan Co Limited: ChD 1993

Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: CA 12 May 2006

The defendants sought relief for transactions entered into at an undervalue. The bankrupt had entered into charges and an assignment of a loan account in their favour before his bankruptcy, and the trustee had obtained an order for them to be set aside as a fraud on his creditors. Held: To have such orders set … Continue reading Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: CA 12 May 2006

In Re Paramount Airways Ltd (In Administration): ChD 14 Sep 1993

Administrators may adopt employment contracts without attracting personal liability. Citations: Times 14-Sep-1993 Statutes: Insolvency Act 1986 19-5 Jurisdiction: England and Wales Citing: See Also – Re Paramount Airways Ltd (In Administration) CA 8-Apr-1992 It was said that there had been a transction at an undervalue within section 238. It was given effect by a transfer … Continue reading In Re Paramount Airways Ltd (In Administration): ChD 14 Sep 1993

Barons Bridging Finance 1 Ltd and Others v Barons Finance Ltd: CA 14 Jun 2016

Appeal against finding that an assignment of book debts was void, as it had been made after the commencement of the Company’s winding up or, even if that were not the case, should be set aside (a) under section 238 of the Act as a transaction at an undervalue and (b) under section 423 of … Continue reading Barons Bridging Finance 1 Ltd and Others v Barons Finance Ltd: CA 14 Jun 2016

Bilta (UK) Ltd and Others v Nazir and Others: ChD 30 Jul 2012

The company was said to have engaged in a fraud based on false European Trading Scheme Allowances, and had been wound up by the Revenue. The liquidators, in the company name, now sought recovery from former directors and associates. Held: The court dismissed the application: ‘First, the fact that there is, in accordance with my … Continue reading Bilta (UK) Ltd and Others v Nazir and Others: ChD 30 Jul 2012

In re Sevenoaks Stationers (Retail) Ltd: CA 1990

The court gave guidelines for the periods of disqualification to be applied for company directors under the Act. The maximum period of ten years should be reserved for only the most serious of cases. Periods of two to five years should apply to cases at the bottom end, and the middle bracket of 6 to … Continue reading In re Sevenoaks Stationers (Retail) Ltd: CA 1990

McGrath and others v Riddell and others: HL 9 Apr 2008

(Orse In Re HIH Casualty and General Insurance Ltd)HIH, an Australian Insurance company, became insolvent. An order was sought for the collection and remission of it assets in England under a letter of request from the Australia Court. Held: Once it was accepted that an English court may order the liquidator here to remit funds … Continue reading McGrath and others v Riddell and others: HL 9 Apr 2008

Warwick (Formerly Yarwood) v Trustee In Bankruptcy of Clive Graham Yarwood: ChD 13 Sep 2010

The trustee sought to have set aside as an unlawful preference, the payment of 75% of the proceeds of sale of the former matrimonial home to the bankrupt’s wife, saying that the payment had been made after the presentation of the petition. The parties had previously compromised a claim for ancillary relief in the divorce … Continue reading Warwick (Formerly Yarwood) v Trustee In Bankruptcy of Clive Graham Yarwood: ChD 13 Sep 2010

Chohan v Saggar: ChD 1992

Section 423(3) of the 1986 Act requires a plaintiff to show a dominant purpose to remove assets from the reach of actual or potential claimants or creditors, but not excluding the possibility that there might be other purposes behind the relevant . .