An application was made for the appointment of administrators with retrospective effect.
Held: ‘there are two separate questions. The first question is whether an administration order should be made at all. This requires both the satisfaction of the two conditions set out in paragraph 11 (which alone enable the court to make an order) and a decision by the court that it is appropriate to make an order – as at the date when the order is made. The second question is (under paragraph 13(2)(a)) as to the time at which the administration order ‘takes effect’. These questions should not be confused.’ The only purpose in making an order now, with the administration effectively complete, would be to allow the administrator to collect his fees. That was not one of the statutory purposes of an administration, and so the court did not have jurisdiction to make an administration order now. Given the conflicting decisions however, it was a matter where consent to appeal should be given.
Norris J
[2011] EWHC 2543 (Ch), [2011] BCC 957
Bailii
Insolvency Act 1986
England and Wales
Citing:
Cited – In re G-Tech Construction Limited ChD 29-Sep-2005
In appointing the administrators, the wrong form had been used. The court was asked to use its powers to cure the mistake. The failure to file the correct form was overlooked, with the result that one of the prerequisites of an appointment taking . .
Cited – Minmar (929) Ltd and Another v Khalatschi and Another ChD 8-Apr-2011
Application was made to set aside the appointment of the company’s administrators. . .
Cited – In re Derfshaw Ltd and Others ChD 2-Jun-2011
The court considered applications for administration orders made by six companies at the instigation of directors of those companies, and the appointment of administrators with retrospective effect.
Held: Morgan J said that he could see scope . .
Cited – In re Blights Builders Ltd ChD 2-Oct-2006
An out of court appointment of joint administrators of the company, a one-man building company, had been made by the principal shareholder’s executors at a time when, unknown to them, a creditor’s petition for the winding up of the company had . .
Cited – Hill v Stokes plc ChD 2010
The court approved the appointment of a company administrator with reprospective effect. . .
Cited – Morris v Kanssen HL 1946
The House considered the effect of provisions relating to the acts of directors in the 1929 Act. Lord Simonds said: ‘There is, as it appears to me, a vital distinction between (a) an appointment in which there is a defect or, in other words, a . .
Cited – In re Kaupthing Capital Partners ChD 2010
. .
Cited – In re Frontsouth (Witham) Ltd and Another ChD 30-Jun-2011
The court was asked to make a retrospective appointment of a company administrator.
Held: Henderson J (in a reserved judgement) said that he shared Morgan J’s misgivings, but like him regarded the jurisdiction as a useful one and was prepared . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 01 November 2021; Ref: scu.445047