Section 199 of Insolvency Act CAP 53: When series of transactions are to be regarded as single transaction
(1) This section applies if a series of transactions made for commercial purposes forms an integral part of a continuing business relationship (such as a running account) between a bankrupt and a creditor in circumstances in which, during the course of the relationship, the level of the bankrupt's net indebtedness to the creditor is increased and reduced from time to time.
(2) For the purposes of subsection (1), it does not matter whether persons other than the bankrupt or the creditor are parties to any of the transactions.
(3) When this section applies—
(a) section 196 applies in relation to all of the transactions forming part of the relationship as if they together formed a single transaction; and
(b) any particular transaction of the series referred to in subsection (1) may be treated as an insolvent transaction that can be cancelled by the bankruptcy trustee only if the effect of applying that section as provided by paragraph (a) is that the single transaction referred to in that paragraph is treated as an insolvent transaction that can be cancelled by the bankruptcy trustee.
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