Goel v Pick [2006] EWHC 833 (Ch); [2007] 1 All ER 982, [2006] BPIR 827

Bankruptcy

Sarah Clarke - An appeal against a finding in favour of a trustee in bankruptcy on his application that the transfer of a distinctive vehicle registration mark was void or was a preference pursuant to s.340 of the Insolvency Act 1986.

Ferris J held: A vehicle registration mark was an item of property only in a very qualified sense, it could not properly be described as a chose in action and there was no proprietary interest capable of being assigned.

The trade in valuable Vehicle Registration Marks is based not on a proprietary interest in those marks, but on a statutory system of retention and nomination of those marks.

Although the issue of a preference did not arise following Ferris J's findings on the facts Ferris noted the following:

Had the transfer of the mark been effective it would have constituted a preference. Even thought no proprietary interest would have passed, the recipient of the mark would have been advantaged by the ability to utilise the rights of retention and/or nomination.

The definition of a partner in s.435 of the Insolvency Act 1986 did not included a former partner, but partners would be associates as defined by s.435 until the affairs of the partnership were wound up.