Insolvency: when will 'first past the post' apply in relation to charging orders? (British Arab Commercial Bank and others v Ahmad Hamad)

Table of contents

• Court details
• Facts
• The general rule
• Was there undue prejudice?
• Comment

Article summary

The Commercial Court has held that the general principle of 'first past the post' applies between judgment creditors when the statutory insolvency regime does not apply. However, the court has a discretion to depart from this general principle if there is undue prejudice to 'any other creditor' as a consequence of the conduct of the judgment creditor who would benefit from the principle. In this case, looking at the issues involved, Flaux J held that there had been no undue influence. In setting out the issues and his reasoning he provides an insight into the issues the courts will consider.