Permanent Trustee on the sequestrated estate of SYLVIA GALLON OR FRASER [2011] ScotSC 99 (24 May 2011)

Permanent Trustee on the sequestrated estate of SYLVIA GALLON OR FRASER [2011] ScotSC 99 (24 May 2011)

The court has power under section 63(1)(b) to authorise the late lodging and recording of a memorandum to renew the effect of inhibition, provided the order only covers the unexpired portion of the statutory period and does not retrospectively validate the period of lapse. The trustee's error was promptly addressed, there is no opposition, and creditors would otherwise be prejudiced.

Citation
[2011] ScotSC 99
Parties
Permanent Trustee/applicant: John Bruce Cartwright, Insolvency Practitioner, Pricewaterhouse Coopers LLP; Debtor/respondent: Sylvia Gallon or Fraser
Jurisdiction
Scotland
Judgment Date
24 May 2011
Procedural Posture
Sequestration (bankruptcy) Proceedings / Application by Trustee for Order Under Section 63(1)(b) of the Bankruptcy (scotland) Act 1985
Outcome
Application granted in part
Legal Topics
Sequestration, Trustee Powers, Register of Inhibitions, Procedural Remedies, Time Limits
Insolvency Bankruptcy Sequestration Trustee Powers Register of Inhibitions Procedural Remedies Time Limits

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Parties

John Bruce Cartwright, Insolvency Practitioner, Pricewaterhouse Coopers LLP

Permanent Trustee/applicant

Sylvia Gallon or Fraser

Debtor/respondent

Procedural Posture

Sequestration (bankruptcy) Proceedings / Application by Trustee for Order Under Section 63(1)(b) of the Bankruptcy (scotland) Act 1985

Legal Issues

  1. 1 Whether the court can authorise the late lodging and recording of a memorandum to renew the effect of an inhibition under section 14(4) of the Bankruptcy (Scotland) Act 1985 after expiry of the statutory three-year period, using section 63(1)(b) of the Act.

Ratio Decidendi

The court has power under section 63(1)(b) to authorise the late lodging and recording of a memorandum to renew the effect of inhibition, provided the order only covers the unexpired portion of the statutory period and does not retrospectively validate the period of lapse. The trustee's error was promptly addressed, there is no opposition, and creditors would otherwise be prejudiced.

Court Disposition

Application granted in part

Orders

  • Trustee authorised to send and have recorded a memorandum to renew the effect of the inhibition for the unexpired portion of the three-year period, effective from the date of registration.