Demite Ltd v Protec Health Ltd: ChD 1998

A sale by a receiver potentially fell within the scope of section 320. The receivers were the agents of the company and their act was the company’s act. The section expressly excluded from its scoe an arrangement made in the course of a winding up (other than a members’ voluntary winding up). In the light of this express exclusion there was no scope for an implied exclusion applicable to a sale by a receiver. A debenture holder could exercise his own power of sale, in which case the sale would be made by him in his own right, and not through the medium of a receiver.

Judges:

Park J

Citations:

[1998] BCC 639

Statutes:

Companies Act 1985 320

Cited by:

Appeal fromDemite Limited v Protec Health Limited; Dayman and Gilbert CA 24-Jun-1999
. .
CitedUltraframe (UK) Ltd v Fielding and others ChD 27-Jul-2005
The parties had engaged in a bitter 95 day trial in which allegations of forgery, theft, false accounting, blackmail and arson. A company owning patents and other rights had become insolvent, and the real concern was the destination and ownership of . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Company

Updated: 30 April 2022; Ref: scu.230291