ON APPEAL FROM THE HIGH COURT OF JUSTICE
MR JUSTICE MANN
ON APPEAL FROM MR REGISTRAR SIMMONDS
Strand, London, WC2A 2LL
B e f o r e :
LORD JUSTICE LONGMORE
LORD JUSTICE LLOYD
| ERIC JOHN STONHAM (trustee in bankruptcy of Sebastian Satyanard Ramrattan)
|- and -
|(1) SEBASTIAN SATYANARD RAMRATTAN
(2) ANNA BORTOLUSSI
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Stephen Davies Q.C. and Richard Ascroft (instructed by Ashfords LLP) for the Respondent
Hearing date: 3 February 2011
Crown Copyright ©
Lord Justice Lloyd:
The issue on the appeal
"(1) This section applies where property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of
(a) the bankrupt,
(b) the bankrupt's spouse or civil partner, or
(c) a former spouse or former civil partner of the bankrupt.
(2) At the end of the period of three years beginning with the date of the bankruptcy the interest mentioned in subsection (1) shall
(a) cease to be comprised in the bankrupt's estate, and
(b) vest in the bankrupt (without conveyance, assignment or transfer).
(3) Subsection (2) shall not apply if during the period mentioned in that subsection
(a) the trustee realises the interest mentioned in subsection (1),
(b) the trustee applies for an order for sale in respect of the dwelling-house,
(c) the trustee applies for an order for possession of the dwelling-house.
(d) the trustee applies for an order under section 313 in Chapter IV in respect of that interest, or
(e) the trustee and the bankrupt agree that the bankrupt shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in subsection (1) shall cease to form part of the estate."
"(5) If the bankrupt does not inform the trustee or the official receiver of his interest in a property before the end of the period of three months beginning with the date of the bankruptcy, the period of three years mentioned in sub-section (2)
(a) shall not begin with the date of the bankruptcy, but
(b) shall begin with the date on which the trustee or official receiver becomes aware of the bankrupt's interest."
"(1) Subject as follows in this section and sections 341 and 342, where an individual is adjudged bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt's estate may apply to the court for an order under this section.
(2) The court shall, on such an application, make such an order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.
(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if
(a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration …"
"(1) Subject as follows, a bankrupt's estate for the purposes of any of this Group of Parts comprises
(a) all property belonging to or vested in the bankrupt at the commencement of the bankruptcy, and
(b) any property which by virtue of any of the following provisions of this Part is comprised in that estate or is treated as falling within the preceding paragraph."
Lord Justice Longmore
Lord Justice Rix