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Insolvency – Transaction at undervalue. A company sold premises to the second appellant, which granted security over the premises to the first appellant. The company's liquidator sought the reduction of first appellant's security on the basis that the disposition of the company's property had been gratuitous alienation. The Extra Division of the Inner House of the Court of Session set aside the judge's decision that the sale had been for adequate consideration, under s 242(4) of the Insolvency Act 1986. The Supreme Court, in allowing the appellants' appeal, held that the judge had not erred in finding that the alienation had been made for adequate consideration and that the Extra Division had erred in finding that he had gone plainly wrong in dealing with the evidence.
Insolvency – Transaction at undervalue. A company sold premises to the second appellant, which granted security over the premises to the first appellant. The company's liquidator sought the reduction of first appellant's security on the basis that the disposition of the company's property had been gratuitous alienation. The Extra Division of the Inner House of the Court of Session set aside the judge's decision that the sale had been for adequate consideration, under s 242(4) of the Insolvency Act 1986. The Supreme Court, in allowing the appellants' appeal, held that the judge had not erred in finding that the alienation had been made for adequate consideration and that the Extra Division had erred in finding that he had gone plainly wrong in dealing with the evidence.
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