Cartwright v Panelform Ltd & Ors

Cartwright v Panelform Ltd & Ors

The transfer of business assets to Panelform Ltd constituted transactions at an undervalue, with the purpose of putting assets beyond the reach of creditors, in breach of s.423 Insolvency Act 1986. The trustee is entitled to relief to restore the position and control assets.

Parties
Applicant: Richard Paul Rendle; Bankrupt: Peter Thomas Cartwright; Respondent: Panelform Ltd; Respondent: Panelcraft Access Panels (a firm); Respondent: Peggy Cartwright; Respondent: Lisa Cartwright; Respondent: Julie Cartwright
Jurisdiction
England and Wales
Judgment Date
07 October 2020
Procedural Posture
Insolvency Application / Expedited Trial, Judgment
Outcome
Application granted
Legal Topics
Transactions at Undervalue, Bankruptcy, Partnership Assets, Fraudulent Transfers
Insolvency Company Law Transactions at Undervalue Bankruptcy Partnership Assets Fraudulent Transfers

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 4 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Richard Paul Rendle

Applicant

Peter Thomas Cartwright

Bankrupt

Panelform Ltd

Respondent

Panelcraft Access Panels (a firm)

Respondent

Peggy Cartwright

Respondent

Lisa Cartwright

Respondent

Julie Cartwright

Respondent

Procedural Posture

Insolvency Application / Expedited Trial, Judgment

Legal Issues

  1. 1 Whether the transfer of business assets to Panelform Ltd constituted transactions at an undervalue under s.423 Insolvency Act 1986
  2. 2 Whether the purpose of the transactions was to put assets beyond the reach of creditors
  3. 3 Whether the applicant trustee has standing to seek relief under s.423

Ratio Decidendi

The transfer of business assets to Panelform Ltd constituted transactions at an undervalue, with the purpose of putting assets beyond the reach of creditors, in breach of s.423 Insolvency Act 1986. The trustee is entitled to relief to restore the position and control assets.

Court Disposition

Application granted

Orders

  • Assets transferred to Panelform Ltd are revested in the partnership or bankruptcy estate
  • Company's right to use or retain assets is ended