Re Gershon and Levy: 1915

An order was made by consent in a partnership action to tax the costs of the parties and the receiver was ordered to pay the costs when taxed out to the solicitors for the parties out of the partnership assets. When the order was made all parties knew that a bankruptcy petition was pending against each of the partners. They were later adjudicated bankrupt on that petition. The solicitors claimed to be secured creditors.
Held: The order created an equitable charge on the partnership assets in favour of the claimants. But for the doctrine of relation back, the solicitors were secured creditors and entitled to priority over other creditors because all necessary parties were before the court when the order was made, but as a result of the relation back of the trustee’s title to the partnership assets, the partners were not the proper parties and could not consent to the order.


Horridge J


[1915] 2 KB 527

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: 12 May 2022; Ref: scu.186763