Re Lewis ex parte Helder: CA 26 Jul 1883

An agent, in obedience to a previous instruction of his principal, paid away money of the principal which was in his hands knowing, before he made the payment, that when completed it would constitute an act of bankruptcy on the part of his principal. The principal was afterwards adjudicated bankrupt.
Held: The agent was not liable to account to the trustee for the money paid away. The Court did not rely upon the fact that the money was paid away before adjudication which would have been sufficient, but on the fact that the money did not become the trustee’s money until the completion of the act of bankruptcy to which his title would relate back, ie. until after the money had left the agent’s hands: ‘It appears to me that on this ground – that the money did not become the trustee’s money until the payment had been completed- Mr. Roberts is not liable to the trustee’


Sir Baliol Brett MR


(1883) 24 ChD 339, [1883] UKLawRpCh 195




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.

Insolvency, Agency

Updated: 23 March 2022; Ref: scu.186753