Pari Passu in UK Law

Leading Cases
  • British Eagle International Airlines Ltd v Compagnie Nationale Air France
    • House of Lords
    • 16 Abril 1975

    But what the Respondents are saying here is that the parties to the "clearing house" arrangements by agreeing that simple contract debts are to be satisfied in a particular way have succeeded in "contracting out" of the provisions contained in section 302 for the payment of unsecured debts " pari passu" In such a context it is to my mind irrelevant that the parties to the "clearing house" arrangements had good business reasons for entering into them and did not direct their minds to the question how the arrangements might be affected by the insolvency of one or more of the parties.

  • Wight and Others v Eckhardt Marine GmbH
    • Privy Council
    • 14 Mayo 2003

    The creditors are confined to a collective enforcement procedure that results in pari passu distribution of the company's assets. The winding up does not either create new substantive rights in the creditors or destroy the old ones. They are discharged by the winding up only to the extent that they are paid out of dividends. But when the process of distribution is complete, there are no further assets against which they can be enforced.

  • Re Lines Brothers. Ltd
    • Court of Appeal (Civil Division)
    • 11 Febrero 1982

  • Stichting Shell Pensioenfonds v Krys and another
    • Privy Council
    • 26 Noviembre 2014

    A submission may consist in any procedural step consistent only with acceptance of the rules under which the court operates. It cannot make any difference to the character of that act whether the proof is subsequently admitted or a dividend paid, any more than it makes a difference to the submission implicit in beginning an ordinary action whether it ultimately succeeds.

  • Re Gray's Inn Construction Company Ltd
    • Court of Appeal (Civil Division)
    • 05 Diciembre 1979

    A disposition carried out in good faith in the ordinary course of business at a time when the parties are unaware that a petition has been presented may, it seems, normally be validated by the court (see re Wiltshire Iron Co.

  • Re Ashpurton Estates Ltd
    • Court of Appeal (Civil Division)
    • 07 Mayo 1982

    Once the company has gone into liquidation, the existing unsecured creditors are interested in all the assets of the company, since the liquidator is bound by statute to distribute the net proceeds pari passu among the unsecured creditors, subject to preferential debts. The unsecured creditors are in the nature of cestuis que trust with beneficial interests extending to all the company's property.

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Legislation
  • Heritable Securities (Scotland) Act 1894
    • UK Non-devolved
    • 1 de Enero de 1894
    ... ... 2003/456, art. 2 ... 11: Sheriff may grant power to pari passu security holder to sell pari passu security ... Any creditor ... ...
  • Companies Act 1900
    • UK Non-devolved
    • 1 de Enero de 1900
    ... ... are entitled pari passu is created by a company, it shall be sufficient ... to enter on the ... ...
  • Bankruptcy Act 1869
    • UK Non-devolved
    • 1 de Enero de 1869
    ... ... as aforesaid, all debts provable under the bankruptcy shall be paid pari passu. S-33 ... Preferential claim in case of apprenticeship. 33 ... ...
  • Companies Act 1862
    • UK Non-devolved
    • 1 de Enero de 1862
    ... ... of the Company shall be applied in satisfaction of its Liabilities pari passu ... and subject thereto, shall, unless it be otherwise provided by ... ...
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Books & Journal Articles
  • International Co‐operation in Cross‐Border Insolvency: HIH Insurance
    • No. 71-5, September 2008
    • The Modern Law Review
    The House of Lords decision in HIH Insurance raised important questions about the pari passu principle of distribution in cross‐border insolvency. This comment examines the case in light of academi...
    ... ... decision in HIH Insurance raised important questions about the pari passu principle of distribution in cross-border insolvency ... This comment ... ...
  • The self-enforcing dynamics of crime and protection
    • No. 59-5, September 2022
    • Journal of Peace Research
    • 0000
    This article presents a model describing a symbiotic relationship between criminals and a partnership of protection providers, called the Firm. The partners of the Firm earn profits as they have ma...
    ... ... , a decrease in the cost of violence increases violence more than pari passu andincreases the value of being a criminal. Also, tougher ... ...
  • The Concept of Foreign Policy Actions in Comparative Analysis
    • No. 15-1, March 1980
    • Cooperation and Conflict
    • 0000
    The author's argument is that the unit of analysis in the comparative study of foreign policy stands in need of closer taxonomical examination with reference to certain logical, philosophi cal and ...
    ... ... passu of the various elements which can be said to characterize ... of this  concept we are pari passu forced to ... ...
  • Civil Actions by Shareholders against an Insolvent Issuer: Soden v British & Commonwealth Plc
    • No. 6-2, April 1998
    • Journal of Financial Crime
    • 143-145
    X acquires securities of a company, Y plc. It transpires that Y plc has induced X to acquire the securities by a misrepresentation as to the underlying asset worth of Y plc. Y plc subsequently goes...
    ... ... 74(2)(f) as other-wise B&C would rank pari passu with Atlantic's creditors whose potential return would be ... ...
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Law Firm Commentaries
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