Honouring Cheques after Presentation of Winding up Petition – 1

Hollicourt (Contracts) Ltd v Bank of Ireland (Ch D LSG 17 December)

Where a bank, in ignorance of the presentation of a petition to wind up a company customer continued to honour its cheques these payments were ‘dispositions’ of the company’s property under s127 of the Insolvency Act 1986, rendering all such payments void and ineffective with effect from the commencement of the company’s winding up, not simply as against the third party recipient of the money in question but also as against the bank which made the payment.