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United Kingdom Leading Case liquidation voluntary and compulsorytransactions defrauding creditors

British Eagle International Airlines Ltd v Compagnie Nationale Air France

[1975] 1 WLR 758
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1975
StatusBinding authority

Summary

Contractual arrangements that withdraw assets from an insolvent estate contrary to the statutory pari passu distribution scheme are void as against the liquidator.

Key Principle

An arrangement that has the effect of withdrawing assets from the insolvent estate in a manner inconsistent with the statutory insolvency scheme is void; the pari passu distribution principle cannot be contracted out of.

Area of Law

insolvency

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