is a
UK insolvency law
United Kingdom insolvency law regulates companies in the United Kingdom which are unable to repay their debts. While UK bankruptcy law concerns the rules for natural persons, the term insolvency is generally used for companies formed under the ...
case, concerning voidable transactions under what was the
Fraudulent Conveyances Act 1571
The Fraudulent Conveyances Act 1571 (13 Eliz 1, c 5), also known as the Statute of 13 Elizabeth, was an Act of Parliament in England, which laid the foundations for fraudulent transactions to be unwound when a person had gone insolvent or bankrup ...
, and what is now the
Insolvency Act 1986
The Insolvency Act 1986c 45 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
History
The Insolvency Act 1986 followed the publication and ...
section 423.
Facts
On Saturday morning Alderson (recorded as A.B. in the report) committed acts of bankruptcy. On Friday morning, Alderson had posted a
£600 note from
London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
to Temple, one of his creditors in
Trowbridge
Trowbridge ( ) is the county town of Wiltshire, England, on the River Biss in the west of the county. It is near the border with Somerset and lies southeast of Bath, 31 miles (49 km) southwest of Swindon and 20 miles (32 km) southeas ...
, in return for two £300 notes. Temple’s two notes arrived on Monday. The assignees of Alderson brought an action for the value of the note. They argued, first, that the transfer of the note did not take effect merely by putting it in the post, and second, that it was an unlawful preference under the
Fraudulent Conveyances Act 1571
The Fraudulent Conveyances Act 1571 (13 Eliz 1, c 5), also known as the Statute of 13 Elizabeth, was an Act of Parliament in England, which laid the foundations for fraudulent transactions to be unwound when a person had gone insolvent or bankrup ...
.
Judgment
Lord Mansfield CJ held the
Fraudulent Conveyances Act 1571
The Fraudulent Conveyances Act 1571 (13 Eliz 1, c 5), also known as the Statute of 13 Elizabeth, was an Act of Parliament in England, which laid the foundations for fraudulent transactions to be unwound when a person had gone insolvent or bankrup ...
applied, not just to fraudulent conveyances, but also the granting of fraudulent preferences, and Alderson's actions were void.
Yates J, Aston J and Willes J concurred.
See also
*
UK insolvency law
United Kingdom insolvency law regulates companies in the United Kingdom which are unable to repay their debts. While UK bankruptcy law concerns the rules for natural persons, the term insolvency is generally used for companies formed under the ...
References
{{Reflist
United Kingdom insolvency case law
1768 in case law
1768 in British law
Court of King's Bench (England) cases