Where a party’s agreement to an individual voluntary arrangement had been obtained by an advantage offered to that creditor but not disclosed to others, the entire arrangement could be set aside. In this case the offer to purchase a debt after the arrangement was not an ordinary dealing in distressed debt. There was a duty of openness and good faith. The test was whether it would be likely to have made a material difference to the way in which the creditors would have seen the proposal. Cases from before the 1986 legislation could be referred to but with care.
Judges:
Judge, Walker LJJ, Sir Christopher Staughton
Citations:
Gazette 22-Feb-2001, Times 16-Jan-2001, [2000] EWCA Civ 340, [2001] 1 WLR 615, [2001] 1 BCLC 498
Links:
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – In re Trident Fashions plc ChD 5-Feb-2004
Creditors of the company sought relief, saying the voluntary arrengement made had been based upon the omission of material by the insolvency practitioner.
Held: A court could intervene in such a case only where the actions of the practitioner . .
Cited – Commissioners of Inland Revenue v The Wimbledon Football Club Limited, Ellis, Earp CA 28-May-2004
The Commissioners appealed against a refusal of their application for a revocation of the defendant’s voluntary arrangement in that it had failed to comply with section 4. They complained that the arrangement was unfair to them. It had been agreed . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 23 May 2022; Ref: scu.135630