On 31 July 2012, a bankruptcy order was made in respect of Mr
Dean Jonathan D'Eye on the basis of a statutory demand dated 11
During their investigations, his trustees in bankruptcy
discovered that Mr D'Eye had made a payment of £321,919
to his father on 24 January 2012 (the Payment)
and, after the presentation of the bankruptcy petition on 28 May
2012, a significant portion of this money had then been used to
purchase a flat (the Flat).
Pursuant to Section 284 of the Insolvency Act 1986, the trustees
in bankruptcy sought orders that the Payment was void and that the
Flat, which was purchased with the receipts, was a bankruptcy
While Section 284 does not spell out the remedy available as a
result of a disposition being void, its purpose is to ensure equal
treatment of creditors and gives rise to an obligation to account
for money had and received
Despite being made prior to the presentation of the bankruptcy
petition, the Payment was void. To find otherwise would defeat the
aim of Section 284
The Flat, which was purchased with the proceeds of the void
Payment, vested in the trustees outright. It had clearly been
purchased to try and put bankruptcy assets beyond creditors and an
order for possession was consistent with the aims of Section
The case is useful clarification that the remedy for void
payments pursuant to Section 284 is an account for money had and
Moreover, the position is the same for payments made after
bankruptcy and vesting so that, where an asset has been purchased
with a void payment, it may simply be declared part of the
Thomas and another v D'Eye and others  All ER (D)
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