‘To Comply or Not to Comply:
“The distinction between fixed and floating charges could be views as a fragile concept. Moreover, with a lack of statutory definitions to increase this distinction’s robustness, there is still much uncertainty to be addressed.”
Jacob En Lun Lim, ‘The Concept of a Charge and the Fragility That Lies beneath Its Fixed and Floating Dichotomy: Should Its Distinction Be Abolished?’ (2021) 32 International Company and Commercial Law Review 406.
Critically evaluate the above statement in the light of the (then) House of Lords’ decision in the case of National Westminster Bank plc v Spectrum. Has the court in Spectrum been mistaken in their understanding of the distinction between floating and fixed charges?
Please answer each question with around 900 – 1000 words each.