Our website is set to allow the use of cookies. For more information and to change settings click here. If you are happy with cookies please click "Continue" or simply continue browsing. Continue.

Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

27 OCT 2009

Mr Justice Warren's judgment in: Power & Anor v HM Revenue and Customs & Anor [2009] EWHC 2580 (Ch) (23 October 2009)

Mr Justice Warren has handed down his judgment in Power & Anor v HM Revenue and Customs & Anor [2009] EWHC 2580 (Ch) (23 October 2009). The case concerns the Farepak insolvency and applications by the Joint Liquidators of Farepak for a final order for distribution of certain monies paid into the bank accounts of Farepak in the last few days before the commencement of the administration. The judgment contains a number of interesting points. One includes a brief discussion of the deployment of trusts in an insolvency context. The judge notes:

"Mann J explained why, in his view, no trust (including a Quistclose-type trust) was created over monies paid to Agents prior to the cessation of trade on 10 October 2006. I agree with his analysis and conclusion. He also explained why he considered that there was a strong argument that monies paid to Farepak (including for this purpose monies paid to Agents), at a time when Farepak has decided to cease trading and at a time when it had indicated that payments should not be received, would be held by Farepak on a constructive trust from the moment they were received. Again, I agree with his analysis and conclusion. He further explained why he considered that the declaration of trust should be rectified to cover the FFG Current Account. Once again, I agree with his analysis and conclusions."

Bankruptcy and Personal Insolvency Reports

Bankruptcy and Personal Insolvency Reports

"BPIR is an excellent series, of interest to both corporate and personal insolvency lawyers,...

More Info from £166.00
Available in Insolvency Law Online
Individual Voluntary Arrangements

Individual Voluntary Arrangements

"This is the ultimate statement of where the law on IVAs is to be found in our great common law...

Available in Insolvency Law Online
Subscribe to our newsletters