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 in the way claimed. The company had already by making out the cheques ordered its bank as agent to pay on them, and the bank had no beneficial interest it could dispose of. These need not be affected by whether the account was in credit. The automatic retrospective avoidance was limited by the terms of the section its purpose.
Citations:
Times 01-Nov-2000, Gazette 23-Nov-2000, [2000] EWCA Civ 263
Links:
Statutes:
Jurisdiction:
England and Wales
Citing:
Appeal from – Hollicourt (Contracts) Ltd (In Liquidation) v Bank of Ireland ChD 17-Dec-1999
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 . .
Cited by:
Appealed to – Hollicourt (Contracts) Ltd (In Liquidation) v Bank of Ireland ChD 17-Dec-1999
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 . .
Cited – Rose v AIB Group (UK) plc and Another ChD 9-Jun-2003
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 . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Banking
Updated: 31 May 2022; Ref: scu.147296