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The meaning of ‘value’ in section 284(4)(a) of the Insolvency Act 1986 (Edwards (trustee in bankruptcy of Wasu) v Aurora Leasing)

The meaning of ‘value’ in section 284(4)(a) of the Insolvency Act 1986 (Edwards (trustee in bankruptcy of Wasu) v Aurora Leasing)
Published on: 26 January 2021
Published by: LexisPSL
  • The meaning of ‘value’ in section 284(4)(a) of the Insolvency Act 1986 (Edwards (trustee in bankruptcy of Wasu) v Aurora Leasing)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring & Insolvency analysis: The applicant, a trustee in bankruptcy (the trustee), contended that payments made to two recipients were void under section 284 of the Insolvency Act 1986 (IA 1986). The recipients argued that the sums had been received in good faith, for value and without notice of the bankruptcy petition and therefore fell within the exception in IA 1986, s 284(4)(a). The trustee said no value had been received into the bankrupt’s estate. It was held that there was no requirement that the value had to be received by the estate rather than a third party. In any event, it also had to be inferred in the circumstances that the estate had received something of value. Therefore, the trustee’s application was dismissed. Written by Nora Wannagat, barrister at 9 Stone Buildings. or take a trial to read the full analysis.

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