MICHAEL JAMES MESTON REID, Permanent Trustee upon the sequestrated estates of Carlene Rose Burnett v. HARVEY LEIGHTON GRAINGER and MOIRA ELIZABETH GRAINGER [2000] ScotSC 23 (28th August, 2000)

MICHAEL JAMES MESTON REID, Permanent Trustee upon the sequestrated estates of Carlene Rose Burnett v. HARVEY LEIGHTON GRAINGER and MOIRA ELIZABETH GRAINGER [2000] ScotSC 23 (28th August, 2000)

Where a debtor has, prior to sequestration, sold heritable property, received the price, and delivered a disposition to the purchaser, she is divested of all beneficial interest in the subjects, which do not form part of her estate for the purposes of Section 31 of the Bankruptcy (Scotland) Act 1985; thus, such property does not vest in the permanent trustee.

Citation
[2000] ScotSC 23
Parties
Pursuer: Michael James Meston Reid; Defender: Harvey Leighton Grainger; Defender: Moira Elizabeth Grainger
Jurisdiction
Scotland
Procedural Posture
Civil Appeal / Appeal From Interlocutor
Outcome
Appeal allowed; action dismissed.
Legal Topics
Vesting of Property in Trustee, Beneficial Interest, Sequestration, Delivery and Recording of Disposition
Bankruptcy Property Law Vesting of Property in Trustee Beneficial Interest Sequestration Delivery and Recording of Disposition

Case Brief

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Parties

Michael James Meston Reid

Pursuer

Harvey Leighton Grainger

Defender

Moira Elizabeth Grainger

Defender

Procedural Posture

Civil Appeal / Appeal From Interlocutor

Legal Issues

  1. 1 Whether heritable property sold by the debtor prior to sequestration but not yet recorded vests in the permanent trustee under Section 31(1) of the Bankruptcy (Scotland) Act 1985
  2. 2 Whether the debtor retains a beneficial interest in the property after delivery of disposition and receipt of price

Ratio Decidendi

Where a debtor has, prior to sequestration, sold heritable property, received the price, and delivered a disposition to the purchaser, she is divested of all beneficial interest in the subjects, which do not form part of her estate for the purposes of Section 31 of the Bankruptcy (Scotland) Act 1985; thus, such property does not vest in the permanent trustee.

Court Disposition

Appeal allowed; action dismissed.

Orders

  • Recalls interlocutor of 25 July 1995
  • Sustains first plea-in-law for defenders