The mortgage lender had proved in the voluntary arrangement as an unsecured creditor. It had valued the security as less than the debt, and accepted a dividend on the portion remaining unsecured. It now sought to enforce the security. It was argued that it had compromised its entire claim.
Held: The lender had compromised its claim for that part of the debt which was unsecured, but that did not affect its ability to claim the rest under the security. The rules made provision for this, for bankruptcy but did not apply directly to a voluntary arrangement. However the court should be slow to create different conditions for arrangements. Absent an express term in an IVA, the court should be slow to imply a term that, by participating in and accepting payment of a dividend, a secured creditor had agreed to treat part of his debt as unsecured.
Judges:
Chadwick, Sedley, Scott-Baker LJJ
Citations:
Times 29-Nov-2002, Gazette 30-Jan-2003, [2002] EWCA Civ 1657, [2003] 1 WLR 1173, [2003] 2 FCR 369, [2003] 1 All ER 319, [2003] 6 BPIR 1482, [2003] 1 All ER (Comm) 263
Links:
Statutes:
Insolvency Rules 1986 (1986 No 1925) Part 6 Chapter 9
Jurisdiction:
England and Wales
Citing:
Application for leave – Whitehead and Another v Household Mortgage Corporation Plc CA 27-May-2002
Renewed application for leave to appeal. . .
Cited by:
Cited – Webb v Macdonald and Another ChD 29-Jan-2010
Defendant barrister and solicitors applied to have the claims against them for professional negligence struck out. They had advised on a settlement of a dispute, which settlement the claimant now said was negligently wrong.
Held: The advice . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Banking
Updated: 06 June 2022; Ref: scu.178269
