A claim by Heritable (H) in Landsbanki’s (L) insolvency had been rejected and then withdrawn before the Icelandic court, and L now appealed against rejection of its own assertion that that Icelandic decision was binding also within its own claim against H in H’s Scottish insolvency. L’s revolving credit facility claim had been rejected, applying the Scots law principle of the balancing of accounts within an insolvency under a set-off.
Held: L’s appeal was rejected. Whilst the decision of a court within another state withing the European Economic Area had effect throughout the area, that did not bind proceedings in respect of a different company within another member state. The 2004 Regulations applied only to a claim by a company within in EEA country made in another member state. That situation did not obtain in this case, and therefore had no effect on the rules as to the mandatory choice of Scots law in the administration of H in Scotland.
Lord Hope, Deputy President, Lord Walker, Lord Kerr, Lord Reed, Lord Carnwath
[2013] UKSC 13, [2013] 1 WLR 725, 2013 SLT 634, [2013] 1 BCLC 465, [2013] 2 All ER 355, [2013] WLR(D) 85, 2013 GWD 9-202, [2013] 1 All ER (Comm) 1257, UKSC 2011/0234
Bailii, WLRD, Bailii Summary, SC Summary, SC
Credit Institutions (Reorganisation and Winding Up) Regulations 2004 5(1)(a), Council Directive 2001/24/EC
England and Wales
Citing:
At Outer House – The Winding Up Board of Landsbanki Islands Hf v Mills and Others OHCS 20-Jul-2010
The claimants had made claims in the insolvency of Landsbanki in Iceland. There had been a ruling by Landsbanki’s winding-up board in those Icelandic winding-up proceedings that to the extent that it was final and binding in Iceland, it must also be . .
Appeal from – Heritable Bank Plc (Administrators of) v The Winding Up Board of Landsbanki Islands Hf SCS 28-Sep-2011
The appellant (H) had claimed in the responder’s (L) insolvency proceedings in Iceland. Their claim had been rejected by L’s winding-up board, and then withdrawn. L then claimed in H’s own insolvency in Scotland, saying that within the EEA, and . .
Mentioned – Ross v Ross SCS 1895
The pursuer was the widow of Sir Charles Ross who died in 1883 and was succeeded by his pupil son. From then until 1893, when her son attained majority, the pursuer had acted as his sole tutor and curator. She was entitled to an annuity of . .
Cited – Adams v National Bank of Greece HL 1961
Questions of interpretation and enforcement of contracts are resolved by reference to the proper law. Although debt under a contract whose proper law is the law of another jurisdiction may, for the purposes of Scots law, be discharged by insolvency . .
Cited – Integrated Building Services Engineering Consultants Ltd (T/A Operon) v PIHL UK Ltd SCS 1-Jul-2010
In Scots law it would be inequitable for a debtor of a bankrupt to be required to pay his debt in full, while he could only get a dividend for the debt due to him by the bankrupt, but there is no consensus as to whether this principle is a species . .
Lists of cited by and citing cases may be incomplete.
Scotland, Insolvency, European
Updated: 01 November 2021; Ref: scu.471223