This decision, together with an academic article written by Roy Goode,[1] is sometimes looked upon as the turning point in relation to the stricter requirements in relation to control of the proceeds of book debts and other future receivables laid down in subsequent cases.

[2][3] Brookes Associates Finance Limited was in the business of providing equipment under hire purchase agreements.

Accordingly, the company was free to deal with the proceeds of the hire purchase contracts as it saw fit, including paying them over to NatWest Bank, which meant that NatWest Bank was at liberty to apply them to the company's indebtedness to it pursuant to the banker's right to combine accounts.

I would, therefore, for my own part, and notwithstanding the concession made by National Westminster before us, characterise the charge created by cl 3 as a floating charge, notice of the existence of which would not affect the priority of National Westminster's rights in respect of the moneys in the No 2 account.

[4]The decision of Millet LJ is sometimes looked upon as a turning point in the characterisation of charges over book debts (as either fixed or floating) from the more permissive approach taken in earlier decisions like Siebe Gorman & Co Ltd v Barclays Bank Ltd [1979] 2 Lloyd's Rep 142 and Re New Bullas Trading Ltd [1994] 1 BCLC 485, to the stricter approach evident in later cases such as Re Brumark Investments Ltd [2001] UKPC 28 (where Lord Millett gave the opinion of the Privy Council) and Re Spectrum Plus Ltd [2005] UKHL 41.