The Business Law Reports
[2008] Bus LR 1213
Court of Appeal
Customs and Excise Commissioners
v
Royal Bank of Scotland plc
In re
Oval 1742 Ltd
[2007] EWCA Civ 1262
2007 May 15;
Nov 29
Nov 29
Smith, Wilson LJJ and Sir John Chadwick
Company— Debenture— Fixed or floating charge— Company selling business and assets— Company subsequently going into liquidation— Consideration for assets paid to debenture holder both before and after date of liquidation— Company’s solicitors making undertakings to debenture holder in relation to payments— Debenture holder releasing charge after receiving payment— Whether preferential creditors payable in priority to debenture holder— Whether payments subject to floating charge— Whether debenture holder “taking possession” of property comprised in charge—
Companies Act 1985 (c 6), s 196 (as substituted by Insolvency Act 1986 (c 65), s 439(1), Sch 13, Pt I)
—
Insolvency Act 1986 (c 65), s 175