News
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Court Rules on Monies Held by Liquidator
On March 9 2006 Deemster Kerruish ruled on the petition of the liquidator of International Trust and Management Services (IOM) Ltd (in liquidation). The court considered whether, in terms of Section 185(3) of the Companies Act 1931, certain monies currently held by the liquidator in the context of a long and ongoing liquidation were held upon constructive trust by the transferees of those monies or, alternatively, formed part of the asset base of the company in liquidation.
The court, in analyzing the relevant authorities, also dealt with issues concerning the illegality of the contract following the recent Isle of Man Staff of Government Division decision in Re: Boothman. In particular, the court analyzed English court decisions in Re: Barlow Claret International Ltd v Vaughan (1992 4RER), Re: Claytons Case, El Ajou v Dollar Land Holdings Plc and Re: Diplock v Wintle. The court analyzed, in light of the authorities and the facts presented to it, the correct approach to be taken when dealing with competing actual claims and given the context of insolvent company.
