The trustee in bankruptcy sought to have set aside a charging order made over the bankrupt’s property before the commencement of the insolvency.
Held: ‘The principle that property acquired from a debtor (in good faith and without notice of the presentation of a bankruptcy petition) is entitled to retain that property against the trustee in bankruptcy represents a change not only to the position in respect of individual insolvency before the 1986 Act but also a departure from the position, both before and after the 1986 Act, in relation to corporate insolvency. ‘ The courts below were in error in failing to recognise, and give weight to, the legislative policy underlying section 346(1) of the 1986 Act.
Citations:
[2009] EWCA Civ 811, [2010] Ch 318, [2009] 31 EG 73 (CS), [2009] NPC 102, [2009] BPIR 1047, [2009] 40 EG 132, [2009] 2 BCLC 695, [2010] 2 WLR 1097
Links:
Statutes:
Charging Orders Act 1979 3(5), Insolvency Act 1986 346(1)
Jurisdiction:
England and Wales
Insolvency
Updated: 20 December 2022; Ref: scu.365615