Restitution on Cheques Drawn After Winding-Up Order

Hollicourt (Contracts) Ltd v Bank of Ireland (TLR 1 November CA)

Section 127 of the Insolvency Act 1986 provides ‘in a winding-up by the court, any disposition of the company’s property, and any transfer of shares, or alternation in the status of the company’s members, made after the commencement of the winding-up, is, unless the court otherwise orders, void’. Does this mean that a bank which continued to operate the company’s account in accordance with instructions from the company liable to make restitution to the company of the amounts of those cheques or does the section make only the payees of the cheques liable to make restitution to the company?