At the husband’s request his wife deposited with his bankers the title deeds of her property as security for advances to be made to him. Before he became bankrupt the debt was paid off by her.
Held: The court acknowledged the entitlement of a wife, whose property has been charged to secure her husband’s debts, to prove in his bankruptcy in respect of the indemnity which he owes her, provided that she had entrusted the property to her husband in the sense of ‘handing it over to him to deal with it as he might think fit’.’
Rigby LJ said that ‘there was no question of a loan by the wife to the husband, or of intrusting her property to him – that is, handing it over to him to deal with it as he might think fit’.
Judges:
Rigby LJ
Citations:
[1901] 1 KB 480
Cited by:
Cited – Day v Shaw and Another ChD 17-Jan-2014
Mr and Mrs Shaw had granted a second charge over their jointly-owned matrimonial home to secure the personal guarantee given by their daughter and by Mr Shaw in respect of a bank loan to a company (Avon). Their daughter and Mr Shaw were the . .
Cited – In Re Pittortou (a bankrupt) ChD 1985
H and W charged the property to secure the H’s overdrawn bank account. The account was used both for his business and for payment of expenses relating to the matrimonial home. H was adjudicated bankrupt. W sought her equity to be exonerated from H’s . .
Lists of cited by and citing cases may be incomplete.
Equity
Updated: 04 May 2022; Ref: scu.567249