Where the bankrupt had been the trustee of property, the bare legal title to that property did not form part of ‘the whole property of the debtor’ and so did not vest in the permanent trustee in bankruptcy under the section. ‘My Lords, if this House were compelled to uphold the decision under appeal, I rather think I should be inclined to doubt whether the law of bankruptcy in Scotland was in a condition altogether satisfactory.’ Confusion must be avoided between the position where ‘the owner appearing on the register is a bare trustee’ and that where the owner has simply ‘come under some contractual obligation’. Lord Watson: ‘As between [the debtor and the other person] there can, in my opinion, be no doubt that according to the law of Scotland the one, though possessed of the legal title, and being the apparent owner, is in reality a bare trustee’
Judges:
Lord Macnaughten, Lord Herschell, Lord Watson
Citations:
(1892) 19 R (HL) 43, [1892] AC 598, [1892] UKHL 2
Links:
Statutes:
Bankruptcy (Scotland) Act 1856 102
Jurisdiction:
Scotland
Cited by:
Cited – Burnett’s Trustee v Grainger and Another HL 4-Mar-2004
A flat was sold, but before the purchasers registered the transfer, the seller was sequestrated, and his trustee registered his own interest as trustee. The buyer complained that the trustee was unjustly enriched.
Held: The Act defined the . .
Cited – Colquhouns’ Trustee v Campbell’s Trustees 1902
Law agents had failed to record two bonds and dispositions granted by the owner of a property in Glasgow in security of loans which their clients had made to him. They then obtained and recorded an ex facie absolute disposition of the same subjects . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 10 June 2022; Ref: scu.194200