McGleish v Tough and another

Bankruptcy – Sequestration – Discharge from sequestration – Right under life assurance policy. Sheriff Appeal Court: Allowing an appeal in an action in which the pursuer and appellant, who was sequestrated in July 2008 and discharged from sequestration in July 2009, sought declarator that he had a right to payment of the sum assured under a policy of life assurance following his wife's death in February 2010, the court held that the sheriff had erred in finding that the assignability of a life policy excluded the application of s 31(5) of the Bankruptcy (Scotland) Act 1985 and concluding that the appellant's interest in the life policy was not a non-vested contingent interest falling under the terms of s 31(5); the right under the insurance policy was a non-vested contingent interest covered by s 31(5) of the 1985 Act, and as a result of his discharge the appellant benefitted from the policy proceeds as he became reinvested in his rights under the policy by virtue of s 31(5A).