The debtor had contracted to sell his land to a third party developer, Silver. Between contract and completion, the debtor was made bankrupt. His wife, who already held legal charges over part of the land, took a transfer of a charge over the remainder of the land from Nationwide Building Society and completed the contract by transferring the entirety of the land to Silver in exercise of her power of sale as mortgagee. It was contended that, for the purposes of section 423, the sale by the debtor’s wife as mortgagee to Silver was a sale at an undervalue which had been entered into by the debtor.
Held: The suggestion was rejected. The sale by the debtor’s wife as mortgagee could not be dismissed as ‘conveyancing mechanics’, and the transfers by the debtor’s wife effectively superseded the contract.
Judges:
Jonathan Parker J
Citations:
[2001] 1 BCLC 11
Jurisdiction:
England and Wales
Cited by:
Cited – Department for Environment, Food and Rural Affairs v Feakins and Another ChD 26-Nov-2004
The farmer complained that the department had, during the foot and mouth outbreak destroyed animals which did not belong to the owner of the land. The department said that the farmer had disposed of his land at an undervalue to defeat his creditors. . .
Cited – 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 . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 10 May 2022; Ref: scu.237724
