if a car is sor from a dealer who goes bankrupt who owns the car

[cheffie9]

i work for a company who holds two cars from a dealer who has gone into liquidation. they owe us money, for these cars and others we have worked on, the cars are from a main brand dealer

[Viano]

Hi Cheffi,

I would contact the SMMT (Soc. of Motor Manufacturers & Traders) if I were you as the vehicles you hold are probably held on a stocking plan which could make ownership a problem.

Viano

[patdavies]

If the bankrupt main dealer actually owned these vehicles then they now belong to the receiver.

If they didn't, then the vehicle revert to the original owner.

Despite currently holding the vehicles, you are still another unsecured creditor and will be required to surrender the vehicles to their rightful owner.

[surfaceagentx20]

Some clarity wouldn't go amiss here but as I understand things, there are two cars which are the property of a company (A). A passed over possession of those cars to another company (B). There is no suggestion that B was unlawfully in possession of A's cars.

In turn, B passed the cars to the OP's company (C) for the purpose of servicing and repairs. If B had no interest in or benefit to derive from effecting the repairs, it seems to me a reasonable conclusion to draw that B contracted with C as agent of A in order to repair and improve A's cars and as such the contract made by B with C was for A's benefit. C are now in possession of A's cars having carried out the repairs. There is no suggestion the cars are subject to HP.

In my view C is entitled to exercise a lien over A's cars as an unpaid bailee. Further, that C may exercise the powers conferred by Torts (Interference with Goods Act) 1977 section 12 so long as C follows the procedure set out in the Act.

It seems to me that in the circumstances outlined above the liquidation of B is of no consequence.

As I say, some clarity wouldn't go amiss so if I have misunderstood it would be a good idea to clarify the precise position and inter-relationship of A, B and C before running off to flog the damn things.

x20

[gwc1000]

I don't interpret the situation that way. The OP has mentioned SOR in the title. The way I see it is Dealer A lent Dealer B the cars on SOR. B put the cars into the OP's garage for repairs. B has gone bust, and the OP's garage are holding the cars in lieu of money owed by B. But the cars belong to A.