A company’s account was in credit at all times, but was, unknown to the bank, in winding up proceedings. The bank continued to honour cheques, and was found to have been making dispositions of the company’s assets under the section. Accordingly the payments were void and ineffective from the date of the commencement of the … Continue reading Hollicourt (Contracts) Ltd (In Liquidation) v Bank of Ireland: ChD 17 Dec 1999
A bank continued to pay on cheques presented to it against the company’s bank account even after the presentation of a petition for bankruptcy. The liquidator sought recovery of the amounts paid from the bank as well as the payees. It was held that the legislation made the disposition void, but that did not operate … Continue reading Bank of Ireland v Hollicourt (Contracts) Limited: CA 20 Oct 2000
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The court does not have power to order the payment of a liquidator’s costs which had not been properly incurred. The costs of unsuccessful litigation were not recoverable in priority to a secured creditor in priority to the charge. As to rule 7.47(1) of the Rules: ‘But, since the point has been raised and may … Continue reading Mond and Another v Hammond Suddards and Another: CA 15 Jun 1999
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the company, but Saudi law would not recognise such trusts. The shares had been … Continue reading Akers and Others v Samba Financial Group: SC 1 Feb 2017
Sales LJ said: validation will ordinarily only be granted ‘if there is some special circumstance which shows that the disposition in question … has been … for the benefit of the general body of unsecured creditors’. Judges: Sir Terence Etherton Ch, Patten, Sales LJJ Citations: [2016] EWCA Civ 765 Links: Bailii Statutes: Insolvency Act 1986 … Continue reading Express Electrical Distributors Ltd v Beavis and Others: CA 19 Jul 2016
Samba sought a stay of insolvency proceedings. Shares in a Saudi company were held in trust by a company registered in Cayman. Upon that company going into liquidation, the shares were transferred to the defendant, who now argued that since Saudi law would not recognise such a trust, and the trust being invalid, the action … Continue reading Akers and Others v Samba Financial Group: ChD 28 Feb 2014
The bank had received and paid substantial sums from the company before the petition for insolvency had been presented, and had discharged the director’s charge on his house. The liquidator sought restitution under the Act. The bank replied that it had acted already in such a way as to put its own position at risk, … Continue reading Rose v AIB Group (UK) plc and Another: ChD 9 Jun 2003
Where an ailing company continued to trade, section 127 operated as between the company and its directors and creditors, and not so as to invalidate payments made by the company’s bank on cheques drawn before the date of presentation of the petition, and honoured before the date of the winding up order. Accordingly when an … Continue reading Coutts and Co v Stock: ChD 24 Nov 1999
Liquidators claim for repayment of sums paid out by company after petition for insolvency Citations: [2018] EWHC 2168 (Ch) Links: Bailii Statutes: Insolvency Act 1986 127 Jurisdiction: England and Wales Insolvency Updated: 26 April 2022; Ref: scu.621141
This application is brought by Brothers Produce Limited and its liquidators for relief following an assignment which was void under s.127 of the Insolvency Act 1986. Citations: [2022] EWHC 291 (Ch) Links: Bailii Statutes: Insolvency Act 1986 127 Jurisdiction: England and Wales Insolvency Updated: 16 April 2022; Ref: scu.672161
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
Purle QC HHJ [2016] EWHC 444 (Ch) Bailii Insolvency Act 1986 127 England and Wales Contract, Insolvency Updated: 11 January 2022; Ref: scu.560745
In appointing the administrators, the wrong form had been used. The court was asked to use its powers to cure the mistake. The failure to file the correct form was overlooked, with the result that one of the prerequisites of an appointment taking effect under paragraph 31 remained unsatisfied. However, the administration was carried on … Continue reading In re G-Tech Construction Limited: ChD 29 Sep 2005
The parties disputed the meaning of an patent and know how licence. The parties disputed whether the agreement referred to IP rights before formal patents had been granted despite the terms of the agreement. Held: ‘The secret of drafting legal documents was best described by Nicolas Boileau, who was not only a literary critic but … Continue reading Oxonica Energy Ltd v Neuftec Ltd: PatC 5 Sep 2008
The Court was asked as to an assignment to a creditor of all rights to and choses in action relating to or in any way arising out of or in connection with an action against a secured creditor. The rights purportedly assigned included the right to assert that certain dispositions of the company’s property after … Continue reading In re Ayala Holdings Ltd (No 2): ChD 1996
The company went into insolvent liquidation. The secretary of state was to make payments to employees and there were other state preferential creditors. At the same time a refund of VAT was due from the Commissioners of customs and Excise. Held: The sums paid out and preferential debts could be set off against the VAT … Continue reading Secretary of State for Trade and Industry v Frid: HL 13 May 2004
A liquidator claimed that the costs of an unsuccessful attempt to set a floating charge aside should be paid out of the assets subject to the charge in priority to the claims of the charge holder. Held: The rule was a complete statement of the possible expenses to be paid out under the rules: ‘The … Continue reading In re M C Bacon Ltd: ChD 1990
A court has no jurisdiction to make an order which seeks to bind future decisions of future liquidator in favour of group of creditors. Judges: Mr Justice Lightman Citations: Gazette 18-Jun-1997, [1997] 1 WLR 1280 Statutes: Insolvency Act 1986 18(3) 14(3) Jurisdiction: England and Wales Cited by: Cited – In re Luna Metal Products Ltd … Continue reading In Re Powerstore (Trading) Ltd; In Re Homepower Stores Ltd: ChD 18 Jun 1997
Judgment on certain preliminary issues Judges: Paul Matthews HHJ Citations: [2017] EWHC 1920 (Ch) Links: Bailii Statutes: Insolvency Act 1986 8127 Jurisdiction: England and Wales Citing: Cited – Hanak v Green CA 1958 A builder was sued for his failure to complete the works he had contracted for. The buider sought a set-off against that … Continue reading Officeserve Technologies Ltd and Another v Anthony-Mike: ChD 28 Jul 2017
Commercial Sense Used to Interpret Contract The Court was asked as to the role of commercial good sense in the construction of a term in a contract which was open to alternative interpretations. Held: The appeal succeeded. In such a case the court should adopt the more, rather than the less, commercial construction, applying the … Continue reading Rainy Sky Sa and Others v Kookmin Bank: SC 2 Nov 2011
