''National Provincial Bank v Charnley'' 9241 KB 431 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 the taking of a

security interest In finance, a security interest is a legal right granted by a debtor to a creditor over the debtor's property (usually referred to as the ''collateral'') which enables the creditor to have recourse to the property if the debtor defaults in makin ...

over a company's assets and priority of creditors in a company winding up.

Facts

Two creditors of the Fylde Bacon Curing Co were in dispute over who could seize the company’s property. The

National Provincial Bank National Provincial Bank was a British retail bank which operated in England and Wales from 1833 until 1970 when it was merged into the National Westminster Bank. It continued to exist as a dormant non-trading company until 2016 when it was vo ...

had a contract on 16 July 1921 that said it had a lease ‘demised’ for 996 years over ‘plant used in or about the premises’ in return for a loan. Charnley, an unsecured creditor who had already got judgment, argued that this did not include some company vans, because the word ‘demise’ suggested things concerning land. The bank claimed the vans should belong to it, because its charge was first, and its charge was duly registered under the Companies Act 1908, section 93 (now

Companies Act 2006 The Companies Act 2006 (c 46) is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law. The Act was brought into force in stages, with the final provision being commenced on 1 October 2009. It largely ...

, s 860).

Judgment

The Court of Appeal held, Bankes LJ and

Scrutton LJ Sir Thomas Edward Scrutton (28 August 1856 – 18 August 1934) was an English barrister, judge, and legal writer. Biography Thomas Edward Scrutton was born in London, the son of Thomas Urquhart Scrutton, a wealthy shipowner and head of the well-k ...

giving the first two judgments, that the substance of the documents was that a charge was to be created, and the charge had been properly registered. Atkin LJ concurred and started his judgment with an outline of what a charge was. It being a matter of the parties’ intentions, a charge had been created. 9241 KB 431, 449-450

Notes

References

{{Empty section, date=March 2013 United Kingdom company case law United Kingdom insolvency case law Court of Appeal (England and Wales) cases 1924 in British law 1924 in case law

Facts

Judgment

See also

Notes

References