The House was asked: what is meant by the word property in a floating charge and in section 53(7) of the 1986 Act which provides for the effect of the appointment of a receiver by the holder of such a charge in the following terms: ‘(7) On the appointment of a receiver under this section, the floating charge by virtue of which he was appointed attaches to the property then subject to the charge; and such attachment has effect as if the charge was a fixed security over the property to which it has attached.’
Held: Property which was held in trust was excluded from the receiver’s claim made under a floating security.
Judges:
Lord Browne-Wilkinson, Lord Keith of Kinkel, Lord Jauncey of Tullichettle, Lord Steyn, Lord Clyde
Citations:
Times 26-Mar-1997, [1997] UKHL 8
Links:
Statutes:
Insolvency Act 1986 53(7), Companies (Floating Charges) (Scotland) Act 1961
Jurisdiction:
Scotland
Citing:
Cited – Carse v Coppen IHCS 8-Dec-1950
The court considered the inability to create a floating charge over a company’s assets in Scots law. It was conceded that a company registered in Scotland could not create a valid and effectual floating charge over its assets in Scotland, but it was . .
Cited – Gibson v Hunter Home Designs Limited SCS 7-Nov-1975
A disposition had been executed but not delivered.
Held: Entry to the subjects and payment of the price, referable to the terms of the missives, did not instruct the existence of a trust pending delivery of the disposition to the purchaser. . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 11 September 2022; Ref: scu.135030