Johnson and another v Davies and another
Johnson and another v Davies and another
- 1997
- Estates Gazette [1997] 19 EG 157-160(4) .
ChD 5 December 1996. The plaintiffs (P) were principal shareholders in a company. P were sureties under a lease of commercial premises. P sold their shares to the 2 defendants and Mr Hopkins (H) and ceased to have any connection with the company. The company having failed to pay the rent, P satisfied the landlord`s claim, but sought reimbursement from the defendant`s under the terms of the the indemnification obligation in the share sale agreement. H entered into an insolvency voluntary agreement (IVA) which P voted in favour of. The defendant`s contended that by the IVA entered into by H they were released from their obligation to indemnify the P`s for any sums paid to the landlord. Judgement for the plaintiffs.
INDEMNITY
INSOLVENCY VOLUNTARY ARRANGEMENT
SHARE SALE AGREEMENT
SURETIES
ChD 5 December 1996. The plaintiffs (P) were principal shareholders in a company. P were sureties under a lease of commercial premises. P sold their shares to the 2 defendants and Mr Hopkins (H) and ceased to have any connection with the company. The company having failed to pay the rent, P satisfied the landlord`s claim, but sought reimbursement from the defendant`s under the terms of the the indemnification obligation in the share sale agreement. H entered into an insolvency voluntary agreement (IVA) which P voted in favour of. The defendant`s contended that by the IVA entered into by H they were released from their obligation to indemnify the P`s for any sums paid to the landlord. Judgement for the plaintiffs.
INDEMNITY
INSOLVENCY VOLUNTARY ARRANGEMENT
SHARE SALE AGREEMENT
SURETIES