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Insolvency – Receivership – Ranking preference as between floating charge holder and inhibiting creditor. Court of Session: In a case in which the court revisited the issue of ranking preference as between a floating charge holder and an inhibiting creditor, and considered afresh the meaning of the phrase 'effectually executed diligence' it held that the pursuer's first plea in law must be repelled regardless of whether an inhibition registered in the pursuer's favour fell properly to be categorised as an effectually executed diligence on the two houses owned by the defender, but that the pursuer's alternative argument succeeded—ie that even if the inhibition was not an effectually executed diligence, it nevertheless ranked ahead of a bank's floating charge with regard to debt incurred after the inhibition.
Insolvency – Receivership – Ranking preference as between floating charge holder and inhibiting creditor. Court of Session: In a case in which the court revisited the issue of ranking preference as between a floating charge holder and an inhibiting creditor, and considered afresh the meaning of the phrase 'effectually executed diligence' it held that the pursuer's first plea in law must be repelled regardless of whether an inhibition registered in the pursuer's favour fell properly to be categorised as an effectually executed diligence on the two houses owned by the defender, but that the pursuer's alternative argument succeeded—ie that even if the inhibition was not an effectually executed diligence, it nevertheless ranked ahead of a bank's floating charge with regard to debt incurred after the inhibition.
The Bar Council is ready to support a turn to the efficiencies that will make a difference
By Louise Crush of Westgate Wealth Management
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