PARTS 5 AND 6INSOLVENCY OF INDIVIDUALS; BANKRUPTCY

PART 6BANKRUPTCY

CHAPTER 10THE TRUSTEE IN BANKRUPTCY

SECTION E: SUPPLEMENTARY PROVISIONS

Power of court to set aside certain transactions6.144

1

If in the administration of the estate the trustee enters into any transaction with a person who is an associate of his, the court may, on the application of any person interested, set the transaction aside and order the trustee to compensate the estate for any loss suffered in consequence of it.

2

This does not apply if either—

a

the transaction was entered into with the prior consent of the court, or

b

it is shown to the court's satisfaction that the transaction was for value, and that it was entered into by the trustee without knowing, or having any reason to suppose, that the person concerned was an associate.

3

Nothing in this Rule is to be taken as prejudicing the operation of any rule of law or equity with respect to a trustee's dealings with trust property, or the fiduciary obligations of any person.

[E.R.6.147]