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A bankruptcy order was made against the bankrupt in October 2007 and E was appointed as trustee in bankruptcy. A member of the bankrupt's family asserted that one of the bankrupt's properties was charged in his favour, asserting that it was security for sums totalling some £360,000. The trustee was suspicious, and sought a declaration that the property had vested in him free of the charge. After a detailed analysis of the facts, in respect of which there were significant parts upon which the respondents were not believed. Nicholas Strauss QC (sitting as a deputy High Court judge) held that while the charge itself was not a sham, it was not security for all of the sums referred to. The sum secured was in the region of £161,000, with interest in accordance with the charge. Even in light of the complexity, contributed to by false evidence, there was no basis for treating E's investigation costs in any way other than as litigation costs.
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