Insolvency Process

Question 1

Stewart v Jarvie 1938 SC 309

Answer 1

• Sequestration is a deemed arrestment and deemed attachment.
• And Sch 7 para 24 provides that if the arrestment takes place in the 60 days before apparent insolvency, and in the 4 months after apparent insolvency, the prior ranking arrestment loses its priority.
• **In this case a sequestration lost its priority over an arrestment (it was equalised with earlier diligence) .
• (the arrestment is now deemed to be for the benefit of every creditor not just for the arrester.