THE ROYAL BANK OF SCOTLAND PLC AGAINST ALISON DONNELLY [2019] ScotCS CSIH_56 (21 November 2019)

THE ROYAL BANK OF SCOTLAND PLC AGAINST ALISON DONNELLY [2019] ScotCS CSIH_56 (21 November 2019)

Upon termination of the protected trust deed and discharge of the debtor, the bank's claim against Mrs Donnelly was extinguished. As a result, there was no debt owing to the bank at the time it pled set-off in the sheriff court action, rendering the plea of set-off irrelevant and unsustainable.

Citation
[2019] ScotCS CSIH_56
Parties
Appellant (defender): THE ROYAL BANK OF SCOTLAND PLC; Respondent (pursuer): MRS ALISON DONNELLY
Jurisdiction
Scotland
Judgment Date
21 November 2019
Procedural Posture
Appeal / Final Appellate Decision
Outcome
appeal dismissed
Legal Topics
Insolvency Set Off, Protected Trust Deed, Discharge of Debts, Mis Selling of Payment Protection Insurance (ppi), Effect of Discharge on Set Off Rights
Insolvency Contract Law Banking Law Insolvency Set Off Protected Trust Deed Discharge of Debts Mis Selling of Payment Protection Insurance (ppi) Effect of Discharge on Set Off Rights

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 14 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

THE ROYAL BANK OF SCOTLAND PLC

Appellant (defender)

MRS ALISON DONNELLY

Respondent (pursuer)

Procedural Posture

Appeal / Final Appellate Decision

Legal Issues

  1. 1 Does insolvency set-off survive the termination of a protected trust deed and discharge of the debtor?
  2. 2 Can a creditor set off an unpaid debt against a post-insolvency claim by the debtor after discharge?

Ratio Decidendi

Upon termination of the protected trust deed and discharge of the debtor, the bank's claim against Mrs Donnelly was extinguished. As a result, there was no debt owing to the bank at the time it pled set-off in the sheriff court action, rendering the plea of set-off irrelevant and unsustainable.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; decree in favour of Mrs Donnelly upheld.
  • All questions of expenses reserved.