National Provincial Bank v Charnley
Encyclopedia
National Provincial Bank v Charnley [1924] 1 KB 431 is a UK insolvency law
case, concerning the taking of a security interest
over a company's assets and priority of creditors in a company winding up.
had a contract on 16 July 1921 that said it had a lease ‘demised’ for 996 years over ‘plant used in or about the premises’ in return for a loan. Charnley, an unsecured creditor who had already got judgment, argued that this did not include some company vans, because the word ‘demise’ suggested things concerning land. The bank claimed the vans should belong to it, because its charge was first, and its charge was duly registered under the Companies Act 1908 section 93 (now CA 2006 s 860).
UK insolvency law
United Kingdom insolvency law deals with the insolvency of firms and individuals in the United Kingdom. The important statutes are the Insolvency Act 1986, as amended by the Enterprise Act 2002, as well as the Company Director Disqualification Act 1986 and the Companies Act 2006.Insolvency is a...
case, concerning the taking of a security interest
Security interest
A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain preferential rights in the disposition of secured assets...
over a company's assets and priority of creditors in a company winding up.
Facts
Two creditors of the Fylde Bacon Curing Co were in dispute over who could seize the company’s property. The National Provincial BankNational Provincial Bank
National Provincial Bank was a British retail bank which operated in England and Wales from 1833 until its merger into the National Westminster Bank in 1970; it remains a registered company but is dormant...
had a contract on 16 July 1921 that said it had a lease ‘demised’ for 996 years over ‘plant used in or about the premises’ in return for a loan. Charnley, an unsecured creditor who had already got judgment, argued that this did not include some company vans, because the word ‘demise’ suggested things concerning land. The bank claimed the vans should belong to it, because its charge was first, and its charge was duly registered under the Companies Act 1908 section 93 (now CA 2006 s 860).