The Inner House of the Court of Session ordered that the £550,000 off-market sale of the property, which had previously been valued at £1,200,000 on the open market, be cancelled following a challenge by the liquidators of the haulage company. In doing so, it overturned an earlier decision by a commercial judge, who had ruled that the £550,000 purchase price was “adequate consideration” given the circumstances of the case.
One of Scotland’s most senior judges, Lord Drummond Young, gave the judgment of the court (22-page / 422KB PDF). In doing so, he “focussed and restated fundamental principles” of Scottish insolvency law, according to commercial litigation expert Craig Connal of Pinsent Masons, the law firm behind Out-Law.com.
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Read the full article at: https://www.out-law.com/en/articles/2018/january/sale-at-undervalue-must-be-justifiable-when-insolvency-looming-scottish-appeal-court-confirms/