Advocate General For Scotland v John D Reid Joinery Ltd [2000] ScotCS 239 (25 August 2000)

Advocate General For Scotland v John D Reid Joinery Ltd [2000] ScotCS 239 (25 August 2000)

Arrestments on the dependence of an action, executed more than sixty days before liquidation, are not rendered ineffective by the crystallisation of a floating charge upon liquidation, and section 463 of the Companies Act 1985 does not equate the effect of liquidation with receivership for this purpose; thus, the liquidator is not entitled to recall such arrestments.

Citation
[2000] ScotCS 239
Parties
Pursuer: The Advocate General for Scotland; Defender: John D. Reid Joinery Limited
Jurisdiction
Scotland
Judgment Date
25 August 2000
Procedural Posture
Motion in Civil Action (payment of Vat) / Motion Roll Hearing on Recall of Sist and Arrestments
Outcome
motion refused
Legal Topics
Effect of Liquidation on Arrestments, Floating Charge Crystallisation, Priority of Creditors, Recall of Arrestments, Effect of Section 463 Companies Act 1985
Insolvency Law Civil Procedure Company Law Effect of Liquidation on Arrestments Floating Charge Crystallisation Priority of Creditors Recall of Arrestments Effect of Section 463 Companies Act 1985

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Parties

The Advocate General for Scotland

Pursuer

John D. Reid Joinery Limited

Defender

Procedural Posture

Motion in Civil Action (payment of Vat) / Motion Roll Hearing on Recall of Sist and Arrestments

Legal Issues

  1. 1 Whether arrestments on the dependence of an action are rendered ineffective by liquidation and crystallisation of a floating charge
  2. 2 Whether section 463 of the Companies Act 1985 equates the effect of liquidation with receivership for the purposes of diligence
  3. 3 Whether the liquidator is entitled to recall arrestments predating liquidation by more than sixty days

Ratio Decidendi

Arrestments on the dependence of an action, executed more than sixty days before liquidation, are not rendered ineffective by the crystallisation of a floating charge upon liquidation, and section 463 of the Companies Act 1985 does not equate the effect of liquidation with receivership for this purpose; thus, the liquidator is not entitled to recall such arrestments.

Court Disposition

motion refused

Orders

  • Refusal of motion to recall sist and arrestments; arrestments remain in place.