ABSTRACT
British Eagle International Airlines Ltd v Compagnie Nationale Air France (1975) HL A number of international air carriers had established a clearing house arrangement with the International Air Transport Association which was designed to operate a collectivised netting-off arrangement of moneys owing between all the members. This had the effect that no one airline claimed moneys from another but a monthly balance owing each one was paid by the clearing house. When the plaintiff company went into liquidation and the liquidator claimed moneys allegedly owing it from the defendant company, the question arose as to the validity of the clearing house arrangement in the context of a liquidation. Could such a mechanism take precedence over the statutorily ordained rules on company liquidations?
