NAMASIKU LIANDU v. GO DEBT LIMITED [2010] ScotSC 136 (09 August 2010)

NAMASIKU LIANDU v. GO DEBT LIMITED [2010] ScotSC 136 (09 August 2010)

The award of sequestration was recalled because the statutory demand was not personally served on the petitioner as required by statute, and the demand did not comply with the requirement to provide clear evidence of a liquid debt. Without a valid statutory demand, there was no evidence of apparent insolvency, making the sequestration incompetent.

Citation
[2010] ScotSC 136
Parties
Petitioner: Namasiku Liandu; Respondent: Go Debt Limited
Jurisdiction
Scotland
Judgment Date
09 August 2010
Procedural Posture
Petition for Recall of Sequestration / Judgment After Proof
Outcome
award of sequestration recalled
Legal Topics
Recall of Sequestration, Personal Service Requirements, Liquid Debt, Statutory Demand Validity

Case Brief

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Parties

Namasiku Liandu

Petitioner

Go Debt Limited

Respondent

Procedural Posture

Petition for Recall of Sequestration / Judgment After Proof

  1. 1 Whether personal service of the statutory demand was effected as required by the Bankruptcy (Scotland) Act 1985
  2. 2 Whether the statutory demand complied with statutory requirements for evidence of a liquid debt
  3. 3 Whether sequestration should be recalled due to procedural defects

Ratio Decidendi

The award of sequestration was recalled because the statutory demand was not personally served on the petitioner as required by statute, and the demand did not comply with the requirement to provide clear evidence of a liquid debt. Without a valid statutory demand, there was no evidence of apparent insolvency, making the sequestration incompetent.

Court Disposition

award of sequestration recalled

Orders

  • Recall of the award of sequestration of the petitioner's estates
  • Respondents liable to pay the proper and reasonable outlays and remuneration of the Accountant in Bankruptcy as interim trustee or trustee