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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

21 MAY 2013

Re Ovenden Colbert Printers Ltd (In Liquidation); Hunt v Hosking and Others [2013] EWHC 311 (Ch); [2013] BPIR 370

(Chancery Division, Peter Smith J, 22 February 2013)

A company had an agreement with its accountant that he should be entitled to be paid a sum of money out of sums recovered by the company from a third party. The money was paid by the third party into the accountant's client account, and the accountant used it to pay his personal indebtedness to H, who happened to be the liquidator of the third party. The liquidator of the company subsequently sought an order that H repay the sum of £224,951 odd, on the basis that the payments from the client account were transactions at an undervalue pursuant to s 238 of the Act. Peter Smith J granted H's application for summary judgment. The transfers were not the company's money, but of the accountant's money in accordance with the fee agreements, unless and until those agreements were challenged. Thus there was no transaction entered into by the Company for the purposes of s 238 of the Act. The company did not affect the payments to H. 

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