Re Sarflax Ltd
Encyclopedia
Re Sarflax Ltd [1979] Ch 592; [1979] 1 All E.R. 529 is a UK insolvency law
case concerning voidable preferences and fraudulent trading
, now in the Insolvency Act 1986
. It concerns the definition of "intention to defraud", which is found in a number of legal provisions.
. It incurred another debt after a judgment that it had delivered unsatisfactory goods. The liquidator moved for a declaration that the delivery of these unsatisfactory goods was evidence of fraudulent trading. It also argued Sarflax had preferred other creditors over the deliveree, knowing it was unable to pay its debts in full.
UK insolvency law
United Kingdom insolvency law deals with the insolvency of firms and individuals in the United Kingdom. The important statutes are the Insolvency Act 1986, as amended by the Enterprise Act 2002, as well as the Company Director Disqualification Act 1986 and the Companies Act 2006.Insolvency is a...
case concerning voidable preferences and fraudulent trading
Fraudulent trading
Fraudulent trading is an insolvency law concept, and in particular a UK insolvency law concept. It refers to a company that has carried on business with intent to defraud creditors.-Law:...
, now in the Insolvency Act 1986
Insolvency Act 1986
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.-History:...
. It concerns the definition of "intention to defraud", which is found in a number of legal provisions.
Facts
Sarflax Ltd was in liquidationLiquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
. It incurred another debt after a judgment that it had delivered unsatisfactory goods. The liquidator moved for a declaration that the delivery of these unsatisfactory goods was evidence of fraudulent trading. It also argued Sarflax had preferred other creditors over the deliveree, knowing it was unable to pay its debts in full.
Judgment
Oliver J held that "intention to defraud" in the voidable preference section (now s.239, IA 1986 did not cover a case where a debtor merely knew or had grounds to think he had no sufficient funds to pay creditors in full.See also
- R v. Grantham [1984] QB 675
- Re Augustus Barnett & Son LtdRe Augustus Barnett & Son LtdRe Augustus Barnett & Son Ltd [1986] BCLC 170 is a UK insolvency law case on the standard of fault required to show that directors have been guilty of fraudulent trading.-Facts:...
[1986] BCLC 170 - Re a Company (No 001418 of 1988)Re a Company (No 001418 of 1988)Re a Company [1990] BCC 526 is a UK insolvency law case, on the offence of fraudulent trading under s.213 of the Insolvency Act 1986.-Facts:...
[1990] BCC 526