PA(GI) Ltd v GICL 2013 Ltd and another

Insurance – Payment protection insurance. In 2006, the claimant company transferred the non-life component of its payment protection insurance business to the first defendant company under a scheme, which was sanctioned by order of the court (the order). The issue was whether a liability for alleged mis-selling of PPI policies underwritten by the claimant company fell within the ambit of the definition of 'transferred liabilities' in the scheme effecting the transfer, which had been sanctioned by the court the order), and whether liability had been transferred to the first defendant company under the terms of the scheme. The Chancery Division held that on the true construction of the scheme, The 'transferred liabilities', which had been transferred to the first defendant by the order did not include any liability for the alleged mis-selling of PPI.

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