The Court found that in collecting payment upon a cheque from a third party, no disposition of the property of the customer takes place in favour of the bank if the account is already in credit. Accordingly, when the bank credits the customer's account with the amount of the cheque, there is no disposition of the customer's property for purposes of s. 127 of the Insolvency Act (U.K.) which provides):
"In winding-up by the court, any disposition of the company's property ... made after the commencement of the winding-up is, unless the court otherwise orders, void."
Judge Rich Q.C. stated (p. 152) that in "ordinary English usage ... a disposition connotes the transfer or alienation of an asset not its mere conversion into a different form which is nonetheless as much within the control of the owner".