Insolvency Insight - Issue 4 | August 2021
Published date | 31 August 2021 |
Subject Matter | Insolvency/Bankruptcy/Re-structuring, Insolvency/Bankruptcy |
Law Firm | Quadrant Chambers |
Author | Ms Emily Saunderson |
OVERVIEW
Welcome to the next edition of the insolvency insight bulletin from the insolvency specialists at Quadrant Chambers. All cases link to the relevant judgments.
Author: Emily Saunderson
Editors: Nicola Allsop and Emily Saunderson
Case law
-
Al Jaber v Mitchell [2021]
EWCA Civ 1190: the Court of Appeal held that oral and written
statements made by an examinee in an examination under section 236
of the Insolvency Act 1986 enjoy immunity from suit. This
overturned the decision at first instance.
-
Re Bedzhamov [2021] EWHC
2281 (Ch): a Russian bankruptcy order should be recognised in this
jurisdiction but there is no common law power to entrust real
property in England owned by a Russian bankrupt domiciled in
England to the Russian trustee in bankruptcy. There is no common
law power to declare that the property has vested in the trustee
or to order it to be transferred to the trustee or sold for her
benefit.
-
Bucknall v Wilson [2021]
EWHC 2149 (Ch): change of position is not a defence to an action
under section 339 (transactions at an undervalue) and/or section
340 (preferences) of the Insolvency Act 1986.
- Re Ipagoo LLP (In Administration) [2021] EWHC 2163 (Ch) Ipagoo LLP was authorised by the Financial Conduct Authority as an Electronic Money Institution ("EMI"). As such it was not entitled to take deposits, and it was required to safeguard "relevant funds", defined in the Electronic Money Regulations 2011 ("the Regulations") as sums paid by Electronic Money Holders to the EMI in exchange for e-money. The Court found that the Regulations do not create a statutory trust in favour of electronic money holders in the event of an EMI's insolvency. However, regulation 24 of the Regulations gives electronic money holders priority over the "relevant funds". Where the "relevant funds" have not been safeguarded as they should have been, a sum equal to the deficit should be added to them and the "relevant funds" distributed in priority to other...
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