The Official Receiver v Bathurst

The Official Receiver v Bathurst

The fact that the grant of the charge was not a voidable preference under section 340 but void under section 284 makes no difference to the outcome; the conduct remains relevant under para.2(1) Schedule 4A and justifies a nine-year bankruptcy restrictions order.

Source-derived case information.

Parties
Claimant/appellant: The Official Receiver; Defendant/respondent: William Arthur Bathurst
Jurisdiction
England and Wales
Judgment Date
04 June 2008
Procedural Posture
Bankruptcy Appeal / Post Judgment Review
Outcome
appeal allowed, previous order reviewed and confirmed
Legal Topics
Bankruptcy Restrictions Order, Voidable Preference, Void Charge, Review of Court Order
Insolvency Bankruptcy Bankruptcy Restrictions Order Voidable Preference Void Charge Review of Court Order

Source-derived case record

Summary, issues, holding and outcome

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Parties

The Official Receiver

Claimant/appellant

William Arthur Bathurst

Defendant/respondent

Procedural Posture

Bankruptcy Appeal / Post Judgment Review

Legal Issues

  1. 1 Whether the grant of a charge after presentation of a bankruptcy petition constitutes a voidable preference under section 340 of the Insolvency Act 1986
  2. 2 Whether the conduct of the bankrupt in granting a void charge is relevant to the making of a bankruptcy restrictions order
  3. 3 Whether the court should review and alter its previous order based on corrected facts

Ratio Decidendi

The fact that the grant of the charge was not a voidable preference under section 340 but void under section 284 makes no difference to the outcome; the conduct remains relevant under para.2(1) Schedule 4A and justifies a nine-year bankruptcy restrictions order.

Court Disposition

appeal allowed, previous order reviewed and confirmed

Orders

  • Bankruptcy restrictions order to subsist for nine years
  • Judgment to be read in light of modified reasons