28. Insolvency

This chapter deals with insolvency and the principles of insolvency law. It begins with a brief historical background on the evolution of insolvency law, from the Bankruptcy Acts of 1883 and 1914 to the Insolvency Act 1986 and its amended versions, along with the Cross-Border Insolvency Regulations 2006. It then considers the basic objectives of insolvency law as it relates to the bankruptcy of individuals and to corporate insolvency. In particular, it highlights the importance of the pari passu principle, as illustrated by the case British Eagle International Airlines Ltd v Cie Nationale Air France (1975). The chapter goes on to discuss the various definitions of insolvency before concluding with an overview of insolvency procedures for both individual insolvency and corporate insolvency.