ABSTRACT
Where a company in administration or liquidation or a bankrupt has given a preference at a ‘relevant time’ to any person, the insolvency practitioner may apply75 to the court for an order. These provisions are designed to prevent the insolvent enabling some of the creditors to jump the queue and obtain full repayment at a time when the collective principle of pari passu ought to be in operation. Where the court is persuaded that such a preference has been given, it will make such order as it thinks fit for restoring the position to what it would have been if the preference had not been given. The orders which may be made are identical to those which may be made in respect of a transaction at an undervalue.
