Ponsford, Baker and Co v Union of London and Smith’s Bank: CA 1906

Was a debtor who had committed an act of bankruptcy but who had not yet been adjudicated bankrupt free to require his secured creditor, who had notice of it, to hand over his securities on payment of the amount due thereon?
Held: He could not. This was the consequence of the debtor having incapacitated himself from tendering the money. ‘If such receiving order be made the whole of the assets vest in his trustee as from the date of the act of bankruptcy.’ The consequences were that during the period of relation back the bankrupt had no right to deal with his assets and could give no title in them to any transferee with notice; nor could he collect his debts or give a valid discharge for them, and anyone making a payment to him with notice of the act of bankruptcy acted at his peril. ‘But these statutory provisions have been enacted for the benefit only of the creditors of the bankrupt, and not for the benefit of his creditors.’

Fletcher-Moulton LJ
[1906] 2 Ch 444
England and Wales
Cited by:
CitedRe Dennis (A Bankrupt) CA 22-May-1995
A joint tenancy was severed (under the former law) on the event of an act of bankruptcy, and not only by the later actual adjudication of bankruptcy. The vesting of the debtor’s property in the trustee which occurred on adjudication was automatic; . .

Lists of cited by and citing cases may be incomplete.


Updated: 22 December 2021; Ref: scu.186761