Cleghorn v Medwin Investments Ltd; Cleghorn v Cooper Watson Ltd

Bankruptcy – Sequestration – Disposition of heritable property. Court of Session: Refusing reclaiming motions in actions in which the trustee on a debtor's sequestrated estate sought production and reduction of dispositions and standard securities granted by the debtor in favour of the defenders and reclaimers, the court rejected the contention that the Lord Ordinary had erred in granting decree of production and reduction de plano, holding that s 44(4)(c) of Conveyancing (Scotland) Act 1924 did not entitle an individual who, as a matter of fact, had knowledge of the trustee's prior personal right, to transact with the debtor in relation to the sequestrated estate in a way which deprived the trustee of his rights.

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