An application under section 85 of the 1929 Act was opposed by the company at an early stage and before the matter came on for hearing. The mortgagor company was hopelessly insolvent and a winding up petition was impending. A few days later, on the instructions of a director of the company who had an interest in the mortgagee company, the opposition of the company was withdrawn and the order was made. Shortly thereafter, the company was wound up. At first instance Eve J had set aside the registration of the charge as a fraudulent preference.
Held: The appeal was allowed. Lord Hanworth MR said that the Act in permitting the late registration of charges over company assets gave: ‘the widest possible discretion to the Court in circumstances which need not show that the omission was accidental or due to inadvertence but which would be sufficient on other grounds to make it just and equitable to grant relief.’
Judges:
Lord Hanworth MR
Citations:
[1933] Ch 542
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Rehman v Chamberlain and Another ChD 6-Sep-2011
The claimant asserted as against the liquidator, a floating and registered charge over the company’s assets. The liquidator said that it had been granted within the twelve months prior to the onset of the insolvency, was caught by section 245(3)(b), . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 07 October 2022; Ref: scu.444534
