swarb.co.uk - law index
These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.
Banking - From: 1991 To: 1991
This page lists 3 cases, and was prepared on 03 April 2018.
Brink's Mat Ltd v Noye [1991] 1 Bank LR 68
1991
CA
Mustill and Nicholls LJJ and Sir Roualeyn Cumming-Bruce
Banking, Company
The proceeds of the theft of gold bullion from a warehouse owned by the plaintiffs were laundered through the bank account of a company called Scadlynn Ltd with Barclays Bank. The directors and sole shareholders of Scadlynn were signatories of the account and drew cheques on it for cash totalling nearly £8m over four months. The plaintiffs sought to enforce rights which Scadlynn was said to possess against the bank in consequence of the payments out of its account. The court was asked whether the pleading should be permitted, raising in turn the question, among others, whether it was open to Scadlynn to sue the bank in respect of withdrawals made or authorised by the company's sole directors and shareholders. Held: there was no reason why Scadlynn, which was being put into compulsory liquidation, should be prevented from enforcing such a claim for the benefit of the creditors who would look to the assets for the satisfaction of their debts.
Nicholls LJ described the existence of the directors' fiduciary duties to the company as a means by which the law sought to protect the company's creditors.
Mustill LJ rightly described Scadlyn as being an intended victim of arrangements intended dishonestly to deprive it of a large part of its assets and Nicholls LJ agreed with him.
1 Citers
First National Bank Plc v Syed [1991] 1 All ER 250
1991
CA
Dillon LJ, Ralph Gibson LJ
Banking, Consumer
The court can exercise the supervisory jurisdiction over consumer contracts under the 1974 Act irrespective of any application made by a party.
Consumer Credit Act 1974
1 Citers
Cheah Theam Swee v Equitcorp Finance Group Ltd and Another; PC 5-Nov-1991 - Gazette, 08 January 1992; [1991] 4 All ER 989; [1991] UKPC 39