Advocate General For Scotland v Zaoui [2000] ScotCS 303 (1 December 2000)

Advocate General For Scotland v Zaoui [2000] ScotCS 303 (1 December 2000)

The statutory requirement that sufficient security be given or shown 'forthwith' means that only security which is actually in existence and demonstrably sufficient at the time of the hearing can prevent an award of sequestration; mere offers or proposals for future security, or the need for extended factual inquiry, do not satisfy the statutory test.

Citation
[2000] ScotCS 303
Parties
Petitioner and Appellant: The Advocate General for Scotland; Respondent: Abdelhaq Zaoui
Jurisdiction
Scotland
Judgment Date
01 December 2000
Procedural Posture
Appeal in Sequestration (bankruptcy) Proceedings / Appeal From Sheriff Principal to Inner House, Court of Session
Outcome
appeal allowed
Legal Topics
Sequestration, Sufficient Security, Interpretation of 'forthwith' in Statutory Context, Bankruptcy (scotland) Act 1985 Section 12
Bankruptcy Insolvency Law Civil Procedure Sequestration Sufficient Security Interpretation of 'forthwith' in Statutory Context Bankruptcy (scotland) Act 1985 Section 12

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 3 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The Advocate General for Scotland

Petitioner and Appellant

Abdelhaq Zaoui

Respondent

Procedural Posture

Appeal in Sequestration (bankruptcy) Proceedings / Appeal From Sheriff Principal to Inner House, Court of Session

Legal Issues

  1. 1 Whether the offer of a new standard security by the debtor constitutes 'sufficient security' to prevent sequestration under section 12(3A)(b) of the Bankruptcy (Scotland) Act 1985 as amended.
  2. 2 Whether the requirement to show sufficient security must be satisfied 'forthwith' at the hearing or can be deferred for further inquiry.

Ratio Decidendi

The statutory requirement that sufficient security be given or shown 'forthwith' means that only security which is actually in existence and demonstrably sufficient at the time of the hearing can prevent an award of sequestration; mere offers or proposals for future security, or the need for extended factual inquiry, do not satisfy the statutory test.

Court Disposition

appeal allowed

Orders

  • Recall the interlocutors of the Sheriff and Sheriff Principal.
  • Remit the matter to the Sheriff with a direction to award sequestration against the respondent.