Judges: Lindsay J Citations: [2006] EWHC 1343 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency, European Updated: 11 September 2022; Ref: scu.242414
(Supreme Court of the Republic of Ireland) A debenture conferred a fixed charge on book debts. It specifically provided that withdrawals from the account to which the proceeds of the book debts had to be credited might only be made with the prior consent in writing of the Bank. This additional restriction on the ordinary … Continue reading In Re Keenan Bros Ltd: 1986
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Judges: Lord Carloway Citations: [2003] ScotCS 304 Links: Bailii Statutes: Insolvency Act 1986 242 Jurisdiction: Scotland Cited by: See Also – Mathew Purdon Henderson ( Liquidator of Letham Grange Development Co Ltd) v 3052775 Nova Scotia Ltd OHCS 21-Apr-2004 . .See Also – Henderson v 3052775 Nova Scotia Limited IHCS 18-Feb-2005 . .See Also – … Continue reading Henderson CA (the Liquidator of Letham Grange Development Co Ltd) v 3052772 Nova Scotia Limited: OHCS 9 Dec 2003
First Division, Inner House, Court of Session – allegation of sale at an undervalue. The liquidator appealed a finding that as a speedy sale was required the sale price was proper. Held: The reclaiming notice was allowed. The sale of the company’s main place of business would not lead to a recovery. A person, once … Continue reading Liquidators of Grampian Maclennan’s Distribution Services Ltd Reclaiming Motion By, v Carnbroe Estates Ltd: SCS 23 Jan 2018
‘This appeal concerns the Scots law of gratuitous alienations on insolvency. It raises three principal questions. First, there is a question as to the interpretation of the term ‘adequate consideration’ in section 242(4)(b) of the Insolvency Act 1986. Secondly, there is the question whether the Inner House was entitled to interfere with the Lord Ordinary’s … Continue reading MacDonald and Another v Carnbroe Estates Ltd: SC 4 Dec 2019
(Outer House) Allegation of sale at an undervalue – Carnbroe had established that the sale of the Property was made for adequate consideration. Lord Woolman recorded the submission which counsel made on behalf of Carnbroe that Grampian was fighting for its survival and that Mr Quinn had to make a quick decision. He continued: ‘While … Continue reading Macdonald and Others v Carnbroe Estates Ltd: SCS 18 Jan 2017
Lord Cullen spoke of the meaning of ‘adequate consideration’ in section 242 of the 1986 Act: ‘In considering whether alienation was made for ‘adequate consideration’, I do not take the view that it is necessary for the defender to establish that the consideration for the alienation was the best which could have been obtained in … Continue reading Lafferty Construction Ltd v McCombe: SCS 1994
(Extra Division Inner House) The liquidator sought to have set aside the sale of a substantial hotel with golf courses on the basis that it was at an undervalue, with the buyer being aware of the seller’s potential insolvency. He appealed against a finding that the buyer had also assumed debts sufficient to give full … Continue reading Henderson v Foxworth Investments Ltd and Another: SCS 1 Mar 2013
The insolvent companies administrators sought reduction of alienations by the companies before entering into administration. It was said that their banker lenders had been misled as to the values of secured properties, agreeing to their release leading to losses, and their sale. Held: The appeals failed: ‘The gratuitous nature of the alienations was clearly explained … Continue reading Brown and Another v Stonegale Ltd and Another: SC 22 Jun 2016
Administrators sought to have set aside transactions made before the companies went into administration. Held: Rejecting the director’s arguments, the Lord Ordinary said: ‘No one paid anything for 110, 210, 260 Glasgow Road and 64 Roslea Drive. The sellers, namely Oceancrown, Loanwell and Questway, did not receive anything in return for the dispositions under challenge. … Continue reading Brown and Another (Joint Administrators of Oceancrown Ltd) v Stonegale Ltd: SCS 11 Dec 2013
It was said that land, a hotal and gold courses, had been sold at an undervalue and that the transaction was void as against the seller’s liquidator. Held: The appeal was allowed. The critical issue was whether ‘the alienation was made for adequate consideration’. One element was that the same debt said to have been … Continue reading Henderson v Foxworth Investments Limited and Another: SC 2 Jul 2014
Appeals from refusals to rescind bankruptcy orders. The bankrupts had, after lodging their appeals, persuaded the petitioning creditor and several other creditors to support the application. The first bankrupt was acting as agent in negotiations which if successful would generate a commission which would clear the indebtedness. Held: The court’s rejection of the request had … Continue reading Fitch v The Official Receiver: CA 15 Nov 1995
A petitioner’s change of mind and support can found a review or rescission of a bankruptcy order as a change of circumstances. Citations: Gazette 24-Jan-1996, Times 21-Nov-1995, [1996] 1 WLR 242 Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 09 December 2022; Ref: scu.80579
The Court of Appeal had allowed an appeal from the judge who had directed that the transcripts of examinations of a director of an insolvent company under section 236 on the Director of the Serious Fraud Office undertaking that the transcripts would not be used save in the circumstances specified in section 2(8) of the … Continue reading Re Arrows Ltd No 4: HL 1995
The insurance company was to be wound up. It operated internationally but was registered in Australia. The Australian liquidator now sought an order for the transfer of assets held here to Australia. Held: It was inevitable that cross border insolvency arrangements would cause difficulty, and particularly so for insurance companies. Such a transfer would prejudice … Continue reading McGrath and Honey v McMahon and Others, Re HIH Casualty and General Insurance Ltd and others: CA 9 Jun 2006
Citations: [2005] BPIR 842 Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Cited by: Appeal from – 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 … Continue reading Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: ChD 2005
The court considered the application of ‘the bankruptcy template of section 382 to the rules governing the winding up of companies’. Held: The phrase ‘obligation incurred’ in Rule 13.2(1)(b) was inapt to describe a common law duty of care in negligence which existed on and was breached by a company before liquidation, but where actionable … Continue reading In re T and N Ltd and Others (No 3): ChD 16 Jun 2006
Challenge to an unfair preference under section 243 of the 1986 Act Citations: [2000] ScotCS 209 Links: Bailii Statutes: Insolvency Act 1986 243 Jurisdiction: Scotland Cited by: Cited – MacDonald and Another v Carnbroe Estates Ltd SC 4-Dec-2019 ‘This appeal concerns the Scots law of gratuitous alienations on insolvency. It raises three principal questions. First, … Continue reading Baillie Marshall Ltd and Another v Avian Communications Limited: SCS 21 Jul 2000
The claimants sought damages from mortgagees who had sold their charged properties as receivers. They said they had failed to sell at a proper value. They asked whether the express appointment in the mortgage of receivers as agents of the mortgagor leads to the assumption by receivers who accept such appointment of responsibilities and duties … Continue reading Silven Properties Limited, Chart Enterprises Incorporated v Royal Bank of Scotland Plc, Vooght, Harris: CA 21 Oct 2003
The claimant sought damages from the first defendant for breach of copyright. An ex parte search order had been executed, with the defendant asserting his privilege against self-incrimination. As computer disks were examined, potentially unlawful images of children were found. The searching officer asked the court for directions as to what to do. Held: The … Continue reading C Plc and W v P and Secretary of State for the Home Office and the Attorney General: ChD 26 May 2006
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
The Secretary challenged the refusal to order the winding up of the company after the court accepted undertakings as to the future business model and conduct of the company. Held: Where the insolvency proceedings were on the basis that the trading methods of a company were ‘inherently objectionable’ unders section 124A, the court had power … Continue reading Secretary of State for Business, Enterprise and Regulatory Reform v Amway (UK) Ltd: CA 29 Jan 2009
Application to appoint new liquidators . .
