Bankruptcy and Insolvency in UK Law

Leading Cases
  • Cambridge Gas Transport Corporation v Official Committee of Unsecured Creditors of Navigator Holdings Plc and Others
    • Privy Council
    • 16 Mayo 2006

    The purpose of bankruptcy proceedings, on the other hand, is not to determine or establish the existence of rights, but to provide a mechanism of collective execution against the property of the debtor by creditors whose rights are admitted or established.

    The important point is that bankruptcy, whether personal or corporate, is a collective proceeding to enforce rights and not to establish them. There are procedures by which these questions may be tried summarily within the bankruptcy proceedings or directed to be determined by ordinary action. But these again are incidental procedural matters and not central to the purpose of the proceedings.

    The English common law has traditionally taken the view that fairness between creditors requires that, ideally, bankruptcy proceedings should have universal application. There should be a single bankruptcy in which all creditors are entitled and required to prove. No one should have an advantage because he happens to live in a jurisdiction where more of the assets or fewer of the creditors are situated.

    But the domestic court must at least be able to provide assistance by doing whatever it could have done in the case of a domestic insolvency. The purpose of recognition is to enable the foreign office holder or the creditors to avoid having to start parallel insolvency proceedings and to give them the remedies to which they would have been entitled if the equivalent proceedings had taken place in the domestic forum.

  • Ebrahimi v Westbourne Galleries Ltd; Re Westbourne Galleries Ltd
    • House of Lords
    • 03 Mayo 1972

    The words are a recognition of the fact that a limited company is more than a mere judicial entity, with a personality in law of its own: that there is room in company law for recognition of the fact that behind it, or amongst it, there are individuals, with rights, expectations and obligations inter se which are not necessarily submerged in the company structure.

  • HIH Casualty and General Insurance Ltd v JLT Risk Solutions Ltd
    • House of Lords
    • 09 Abril 2008

    This was based upon what English judges have for many years regarded as a general principle of private international law, namely that bankruptcy (whether personal or corporate) should be unitary and universal. There should be a unitary bankruptcy proceeding in the court of the bankrupt's domicile which receives world-wide recognition and it should apply universally to all the bankrupt's assets.

  • Heath v Tang ; Stevens v Peacock
    • Court of Appeal (Civil Division)
    • 26 Julio 1993

    Nevertheless, the principle that the bankrupt is divested of an interest in his property and liability for his debts remains fundamental in the new code. The consequences for the bankrupt's right to litigate do not seem to us inconvenient or productive of injustice. The bankruptcy court acts as a screen which both prevents the bankrupt's substance from being wasted in hopeless appeals and protects creditors from vexatious challenges to their claims.

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  • The Public Services Reform (Corporate Insolvency and Bankruptcy) (Scotland) Order 2017
    • Scotland
    • 1 de Enero de 2017
  • Corporate Insolvency and Governance Act 2020
    • UK Non-devolved
    • 1 de Enero de 2020
    ...... “corporate insolvency or governance legislation” means—(a) the Insolvency Act 1986, except so far as relating to the insolvency or bankruptcy of individuals,(b) Part 26A of the Companies Act 2006 (arrangements and reconstructions for companies in financial difficulty),(c) the Company ......
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... to the generality of paragraph (1), provision with respect to the following matters arising in companies winding up and individual bankruptcy— . (a) the preparation and keeping by liquidators, trustees, provisional liquidators, interim receivers and the official receiver, of books, ......
  • Companies Act 1862
    • UK Non-devolved
    • 1 de Enero de 1862
    ......such Liability; and it shall be lawful in the Case of the Bankruptcy of any Contributory to prove against. his Estate the estimated Value of ..., claim, and draw a Dividend, in the Matter of the Bankruptcy or Insolvency or Sequestration of any Contributory, for any Balance against the Estate ......
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