Source: All England Reporter
Publisher Citation: [2002] All ER (D) 278 (Oct)
Court: Chancery Division

Judge Rich QC sitting as a judge of the High Court

Representation David Quest (instructed by Solicitor for Customs and Excise) for the commissioners.
  David Wolfson (instructed by DLA, Leeds) for the bank.
Judgment Dates: 18 October 2002


Banking - Bank - Account - Authorisation of bank to accept payment of VAT refund to discharge commissioners' debt to company - Company instructing commissioners to refund VAT overpayment to company solicitors - Commissioners paying refund to company's bank account.

The Case

In proceedings by which the commissioners sought to recover from the defendant bank a VAT refund due to a company, CDL, the court ruled, inter alia, that there was no general rule which enabled the bank to claim that it had authorisation, merely by virtue of its holding an account for CDL, to accept payment in respect of the VAT refund so as to discharge the commissioners' debt to CDL.

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