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Here is a question for anyone interested, especially insolvency buffs.

In Lipkin Gorman v. Karpnale (let's say it all together: [1991] 2 AC 548) the rogue Cass misappropriated money of the plaintiff and gambled it away at the casino operated by the defendant. One crucial element in the plaintiff's success was that under English gaming law, the gambling transactions were treated as executed gifts so that the defendant could not claim to be a good faith purchaser for value.

Question: what would have happened if Cass's trustee in bankruptcy brought a proceeding against the defendant to recover all of the money as a "transaction at an undervalue" under ss 339 ff of the Insolvency Act 1986 (or: fill in the provisions of your national law which allow insolvency officers to get back gifts made by bankrupts on the eve of bankruptcy)? Let us assume for the purposes of s 341 that Cass was adjudged bankrupt on a petition presented within two years of his gambling spree (or: within the relevant time limit in your system).

Lionel

PS I know I am home because we have had 18 inches of snow in the last two days.