Fox LJ said: ‘A disposition carried out in good faith in the ordinary course of business at a time when the parties were unaware that a petition had been presented would usually be validated by the court unless there is ground for thinking that the transaction may involve an attempt to prefer the disponee – in which case the transaction would not be validated.’
When deciding whether to validate a disposition under section 127, the court ‘must always do its best to ensure that the interests of the unsecured creditors will not be prejudiced’, and, where there is said to have been a benefit in validating, ‘the court must carry out a balancing exercise’.
Judges:
Fox LJ
Citations:
[1992] BCLC 901, [1992] BCC 503
Jurisdiction:
England and Wales
Cited by:
Cited – Rose v AIB Group (UK) plc and Another ChD 9-Jun-2003
The bank had received and paid substantial sums from the company before the petition for insolvency had been presented, and had discharged the director’s charge on his house. The liquidator sought restitution under the Act. The bank replied that it . .
Cited – Akers and Others v Samba Financial Group SC 1-Feb-2017
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the . .
Lists of cited by and citing cases may be incomplete.
Equity, Company
Updated: 17 July 2022; Ref: scu.184535