The debtor had divested himself of funds pending the outcome of litigation by placing them on deposit in joint names.
Held: The interim liquidator’s appeal failed. Once the payment was made, the debtor was divested of the funds; he had nothing more to do to divest himself of the money. The provisions allowing a challenge to what appeared to be a preference applied to events within the period of six months prior to the winding up. The payment having been made before that period commenced it was effective.
Judges:
Lord Fraser, Lord Cameron of Lochbroom, Lord Murray
Citations:
Times 11-Sep-1997, 1998 SLT 1046
Statutes:
Jurisdiction:
Scotland
Insolvency
Updated: 05 May 2022; Ref: scu.79594