Glasgow (the bankruptcy trustee of Harlequin Property SVG Ltd) v ELS Law Ltd and others (Bar Council of England and Wales intervening)

Insolvency – Cross-border insolvency. The respondent insurers did not have a lien over the proceeds of litigation brought by Harlequin Property SVG Ltd, a company incorporated in St. Vincent and the Grenadines (SVG), against their former accountants. In circumstances where the insurers had entered into an agreement to exclude specified sums from the scope of their proprietary rights if judgment in the litigation were given, it would not be remotely unfair to require the insurers to prove for the sums claimed equally with all other unsecured creditors. So held the Companies Court in respect of an application by Harlequin's SVG-based trustee in bankruptcy (under s 168(3) of the Insolvency Act 1986 (IA 1986) and art 21(1)(g) of Sch 1 to the Cross-Border Insolvency Regulations 2006, SI 2006/1030) to determine the rights of various respondents to approximately £7.9m held by the Court Funds Office in the UK.

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