Bought stock from liquidator. Now a bank is following me: sold in error!

W

whoknows

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Hi all, bizarre title I know. I have yet to speak to a solicitor, but I thought I would get some much needed advise here so I can understand the legalities of a very unusual position I have found myself in.

Some months ago I purchased stock and other purchases from a business that was gone into liquidation. I have a receipt for all purchased and all was got at an excellent price. I was delighted and liquidator and their client were more than happy to be shut of the items.

This morning I am in receipt of a letter from a bank telling me that these goods were the product of a loan they had issued their client with and sold in error and that I must return them or pay money to them to clear off the debt.

I have no business with this bank and have no agreement what so ever with them, the liquidator or their client.

This evening I spoke to the person I bought the items from, and they are insistent, that I return the goods to the bank or pay for them. He said he would return what I had initially paid. He said the whole thing was a terrible mistake on his and his liquidators part.

At the moment I am not in a position to return these goods as they are now part of my business.

I'm not overly worried as I think I have a chance in defending my case but at the same time have a nagging feeling I may be forced to hand back what I bought. Do I have a leg to stand on?
 
obviously the liquidator did not actually "own" the items in question so sold them without having the legal standing to do so. If you bought something off someone not entitled to sell them is it not akin to receiving stolen goods?

I think it could be tricky for you to hold onto them to be honest, though you could probably try to come to some sort of arrangement with the bank ie split the difference.
 
I would think that this is a problem for the liquidator.

You purchased the goods in good faith, presumably. If you were party to a fraud, then you would have to return them.

The liquidator was not entitled to sell them. If they are ordinary stock which you have sold on, then there is nothing you or they can do.

What does "other purchases" mean? Can they be returned?

By and large, it's a problem for the liquidator,
 
If you purchased these items as stock for your own business and now have to return them, the liquidator would be responsible for your loss of profit and any consequential loss that might occur ?Best to speak with your solicitor as soon as possible.
 
Thanks for all feedback. I have sold off most of the stock. The other purchases consisted of, three cash registers and some shelving.

I don't want to sound like I'm playing hard ball, but neither the cash registers or shelving have registration numbers on them, so how the bank are assuming the loan they issued their customer with was spent on these items is beggars belief.
 
Looks like the liquidator made a mistake - can't see how that is your problem
 
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