Can you recover goods sold which are unpaid from liquidated company?

You've sent your goods to a customer, and the company has not paid for it. You later find out the company has been liquidated. Can you recover the goods which are unpaid?

In Ong Kong Lai's case, some suppliers tried to recover goods (or monies for the goods) sold to Pasaraya Hiong Kong which were unpaid. The Court held:

a. Title to the goods sold pass immediately to the customer, and so cannot be recovered.

b. The exception would be if there is a clause in the supply contract preserving the supplier's title to the goods.

c. Even with such a clause, there must also be a provision stating that monies for goods sold are held in trust for the supplier.

d. Only with the above 2 provisions would a court allow suppliers to recover either the goods or monies for the goods sold in the event the company is liquidated.

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