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Mr Justice Warren has handed down his judgment in Power & Anor v HM Revenue and Customs & Anor  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."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...