(1)A debt which is the debt, or one of the debts, in respect of which a creditor’s petition is presented need not be unsecured if either—
(a)the petition contains a statement by the person having the right to enforce the security that he is willing, in the event of a bankruptcy order being made, to give up his security for the benefit of all the bankrupt’s creditors, or
(b)the petition is expressed not to be made in respect of the secured part of the debt and contains a statement by that person of the estimated value at the date of the petition of the security for the secured part of the debt.
(2)In a case falling within subsection (1)(b) the secured and unsecured parts of the debt are to be treated for the purposes of sections 267 to 270 as separate debts.
Cases considering section 269 13
[2023] EWCA Civ 1119 · 6 October 2023Interprets
The court interpreted section 269(1) as permitting a secured creditor to petition where it surrenders the security or excludes the secured part and values the security. Failure to use either route was a statutory defect, not a jurisdictional defect. (see paras [52]-[58])
The court applied the surrender-of-security route available to a secured creditor. The Bank’s failure to state its willingness to surrender the security contributed to the conclusion that the bankruptcy order ought not to have been made. (see paras [52]-[55])
The court applied the alternative route requiring the petition to exclude the secured part and state its estimated value. The Bank’s failure to comply with this route did not deprive the court of jurisdiction. (see paras [52]-[58])
[2011] EWCA Civ 747 · 28 June 2011Limits
The court applies s.269 to identify the exceptions allowing a secured creditor to petition by surrendering security or petitioning only for the unsecured shortfall. (see paras [8]-[9])
[2003] EWCA Civ 714 · 21 May 2003Interprets
A secured creditor may petition for the unsecured part of a debt by stating the estimated value of its security. That estimate does not preclude a later challenge to the valuation. (see paras [19]; [24]; [46]-[47])
The secured and unsecured parts of a partially secured debt are treated as separate debts. If the separated balance is shown to be fully secured, the petition must be dismissed. (see paras [23]; [31]; [46])
What each judgment says about section 269 is in the case-law panel in the full Act.