The bankrupt, while solvent had acquired a property which was first put in his own sole name, but then transferred to his wife outwardly ‘in consideration of love and affection’. Several years later, on the bankruptcy, the trustee sought to have the transaction set aside. The bankrupt, now discharged, said that in fact the original transfer to his name had been by mistake, and that the wife had paid all the purchase monies. The transfer had been found to be a forgery and a sham of no legal effect. The former bankrupt now sought to rely on the new provisions requiring a trustee’s claim to be brought within three years.
Held: The former bankrupt’s appeal failed. Under section 283A(2), in order that the interest should vest in the bankrupt, it must first be comprised in the bankrupt’s estate. Sub-section (3) provides a clear indication that the interest of which sub-section (1) speaks is an interest which is at the relevant time comprised in the estate of the bankrupt, and does not include a possible claim to recover such an interest for the benefit of the creditors whether under section 339 or under any other equivalent provision.
Judges:
Rix, Longmore, Lloyd LLJ
Citations:
[2011] EWCA Civ 119, [2011] BPIR 518, [2011] 8 EG 118, [2011] 1 WLR 1617, [2011] NPC 19
Links:
Statutes:
Insolvency Act 1986 283A, Limitation Act of 1980 8
Jurisdiction:
England and Wales
Citing:
Cited – Re Yates (A Bankrupt) 2004
The court considered the application of the limitation to a claim by a trustee in bankruptcy to set aside a transaction at an undervalue.
Held: Charles J: ‘If there is a limitation period, the passages in Muir Hunter suggest that in the case . .
Cited – Lewis and Another v Metropolitan Property Realisations Ltd CA 12-Jun-2009
The bankrupts appealed against the refusal of a declaration that their home was now free of the claims of the defendants who had taken an assignment from the trustee in bankruptcy of the trustee’s interest in the house for a consideration of a share . .
Cited – Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another CA 12-May-2006
The defendants sought relief for transactions entered into at an undervalue. The bankrupt had entered into charges and an assignment of a loan account in their favour before his bankruptcy, and the trustee had obtained an order for them to be set . .
Cited – Byford v Butler; In re Byford deceased ChD 10-Jun-2003
The house was owned in joint names. The husband became bankrupt, and the wife continued to pay the mortgage as to interest and capital. The trustee sought a declaration as to the ownership of the interests in the house. After the husband died, the . .
Lists of cited by and citing cases may be incomplete.
Limitation, Insolvency
Updated: 02 September 2022; Ref: scu.429630
