Difference between revisions of "Stein v Blake - Case Note"

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(Created page with "[http://www.bailii.org/uk/cases/UKHL/1995/11.html judgment here] {{Seealso}} *Insolvency set-off *National Westminster Bank Ltd v Halesowen - Case Note")
 
 
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{{cite|Stein|Blake|1995|1AC|243}} is a key case on [[insolvency set-off]], affirming as it does 1972’s epochal {{casenote|National Westminster Bank Ltd|Halesowen}} as good law notwithstanding the arrival in the mean time of the [[Insolvency Act 1986]]
 
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{{insolvency set-off capsule}}
 
{{Seealso}}
 
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*[http://www.bailii.org/uk/cases/UKHL/1995/11.html Judgment transcript of ''Stein v Blake'']
 
*[[Insolvency set-off]]
 
*[[Insolvency set-off]]
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*[[Insolvency Act 1986]]
 
*[[National Westminster Bank Ltd v Halesowen - Case Note]]
 
*[[National Westminster Bank Ltd v Halesowen - Case Note]]
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[[Category:Case Note]]
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Latest revision as of 08:29, 11 September 2019

Stein v Blake [1995] 1AC 243 (Let me Google that for you) is a key case on insolvency set-off, affirming as it does 1972’s epochal National Westminster Bank Ltd v Halesowen as good law notwithstanding the arrival in the mean time of the Insolvency Act 1986 It has been treated as an authoritative statement of English law since 1972[1] that you cannot contract out of insolvency set-off. The insolvency set-off rules (currently made (British) flesh by the Insolvency Act 1986) operate automatically and are mandatory upon the commencement of winding-up.

The administrator must take account of all dealings between the creditor and the bankrupt (including future and contingent obligations and unliquidated sums owing). Sums due from one must be set off against the sums due from the other, except that sums due from the bankrupt cannot be included if, when the bankrupt debtor incurred them, the creditor knew of existing formal bankruptcy steps against that debtor:

  • a resolution or petition to wind-up (if a company);
  • an application for an administration order or of notice of intention to appoint an administrator (if a company); or
  • a pending bankruptcy petition (if a natural person).

Therefore a bank cannot agree not to exercise the right to combine accounts.[2]

See also

References

  1. See National Westminster Bank Ltd v Halesowen and in 1995, Stein v Blake
  2. Interestingly, this is not the case under the Swiss Bankruptcy Code.