The employers went into receivership in November 1983. A number of the employees were made redundant but the receiver hoped to carry on with the remaining workforce until February. However, a major customer threatened to withdraw its custom unless the undertaking had been sold as a going concern by 24 November. Negotiations for a sale … Continue reading Secretary of State for Employment v Spence: CA 1986
The High Court can appoint an insolvency practitioner to act in emergency in many matters. Citations: Gazette 12-Mar-1997 Statutes: Insolvency Act 1986 108(1) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81687
The court considered the power of an English court over a foreign resident under section 133. Held: In contrast with the private examination provisions, on its true construction section 133 applies to those who are within the class of persons specified in subsection (1), namely those who have voluntarily participated in the affairs of the … Continue reading In re Seagull Manufacturing Co Ltd: ChD 1992
The Hon Mr Justice Jacob [2002] EWHC 2815 (Ch), [2007] Lloyd’s Rep PN 23, [2003] BPIR 324 Bailii Insolvency Act 1986 England and Wales Citing: See Also – Highberry Limited, Highberry Llc v Colt Telecom Group Plc; in Re Colt Telecom Group plc (No 1) ChD 25-Nov-2002 Application for disclosure of documents, the provision of … Continue reading Colt Telecom Group Plc, In the Matter of the Insolvency Act 1986: ChD 20 Dec 2002
The bankrupt had received his discharge from the bankruptcy and the debts associated. After the discharge he received a statutory demand from the trustees of a pension fund claiming sums from him alleging his dishonest breach of trust. He replied by saying that he had been discharged. Held: To constitute a ‘fraudulent breach of trust’ … Continue reading Woodland-Ferrari v UCL Group Retirement Benefits Scheme: ChD 5 Jul 2002
The parties had agreed to an ancillary relief order on their divorce. The husband was made bankrupt without having paid the lump sum agreed. The former wife and now claimant had received no dividend. Debts which were not provable in the bankruptcy are not released: they are untouched by the process. The former husband now … Continue reading McRoberts v McRoberts: ChD 1 Nov 2012
Solicitor firms had been made bankrupt leaving a shortfall after thefts from client accounts of over 12 million pounds. The thief had diappeared, and the other partners were now discharged form bankruptcy. The Law Society accepted that it could not proceed to claim against the discharged bankrupts, but now sought recovery from their insurers. Held: … Continue reading Law Society of England and Wales and others v Shah and others: ChD 30 Nov 2007
The claimant had lent substantial sums to the defendant. The defendant had subsequently been made bankrupt, and now said he was released from the debt. Judges: Newey J Citations: [2010] EWHC 842 (Ch), [2010] BPIR 960 Links: Bailii Statutes: Insolvency Act 1986 281 Jurisdiction: England and Wales Cited by: See Also – Soutzos v Asombang … Continue reading Soutzos v Asombang and Others: ChD 23 Apr 2010
A wife who had an order for ancillary relief in her favour, but whose husband entered into an Individual Voluntary Arrangement, was obliged to accept the allotted dividend, but her special position under the Act was also to be acknowledged. She had the choice of awaiting discharge from the IVA first. Citations: Gazette 03-Mar-1999, Times … Continue reading In Re M (A Debtor) (488-Io of 1996): ChD 10 Feb 1999
The idea of fraudulent activity under the Act was confined to actual dishonesty of the defendant in line with Derry v Peek. It should not be extended to include acts which were only fraudulent under wider notions of equitable fraud. In this case assumed undue influence could not be sufficient to come within the section. … Continue reading Mander v Evans: ChD 12 Jul 2001
A judgment obtained by default against a bankrupt in a foreign jurisdiction, was not sufficient evidence of itself, to establish that the debt which it proved had been obtained or created by fraud, or by a fraud to which they were a party. The party had been debarred from defending himself, and a finding on … Continue reading Masters and Others v Leaver: CA 2 Sep 1999
Two solicitors had been made bankrupt and then discharged from bankruptcy. They suffered adjudications by the SDT awarding compensation for matters occurring before the bankruptcies. They appealed, saying that the awards were bankruptcy debts from which they were discharged. The Law Society submitted that the adjudicators’ awards were discretionary, that no debt or liability arose … Continue reading Casson and Another v The Law Society: Admn 20 Oct 2009
Appeals from refusals to rescind bankruptcy orders. The bankrupts had, after lodging their appeals, persuaded the petitioning creditor and several other creditors to support the application. The first bankrupt was acting as agent in negotiations which if successful would generate a commission which would clear the indebtedness. Held: The court’s rejection of the request had … Continue reading Fitch v The Official Receiver: CA 15 Nov 1995
The trustee in bankruptcy sought to have set aside a charging order made over the bankrupt’s property before the commencement of the insolvency. Held: ‘The principle that property acquired from a debtor (in good faith and without notice of the presentation of a bankruptcy petition) is entitled to retain that property against the trustee in … Continue reading Nationwide Building Society v Wright and Another: CA 29 Jul 2009
A statutory demand as served showed an incorrectly calculated sum owed and was in the wrong form. Held: The application to set the demand aside was refused. A statutory demand should not be set aside for a mere technicality.Lord Justice Nicholls said: ‘The question arising on this appeal concerns the exercise by the court of … Continue reading In re a Debtor (No 1 of 1987), ex parte the Royal Bank of Scotland: CA 1989
A petitioner’s change of mind and support can found a review or rescission of a bankruptcy order as a change of circumstances. Citations: Gazette 24-Jan-1996, Times 21-Nov-1995, [1996] 1 WLR 242 Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 09 December 2022; Ref: scu.80579
The court was asked to pierce the veil of incorporation of a company in the course of ancillary relief proceedings in a divorce. H had failed to co-operate with the court. After a comprehensive review of all the authorities, Munby J said: ‘The common theme running through all the cases in which the court has … Continue reading Ben Hashem v Ali Shayif and Another: FD 22 Sep 2008
Allegation that the payment of dividends was in breach of Part 23 of the 2006 Act. The direcors had signed the necessary certificate as to solvency before resolving to reduce the company capital and paying a dividend. Held: When making such a statement, the directors were not being asked what would be the position if … Continue reading BTI 2014 Llc v Sequana Sa and Others: ChD 11 Jul 2016
Appeal against refusal to order strike out of claim as abuse of process. Citations: [1999] EWCA Civ 1047 Statutes: Insolvency Act 1986 220(1) Jurisdiction: England and Wales Company, Insolvency Updated: 05 December 2022; Ref: scu.145962
The claimant was sole residuary legatee of his mother’s estate. He became bankrupt, but was released by automatic discharge from the bankruptcy before the administration of the estate was completed. He challenged the solicitors who wished to pay the estate to his trustee. Held: The value of the estate was payable to the trustee in … Continue reading Raymond Saul and Co (A Firm) v Holden and Another; In re Hemming (deceased): ChD 12 Nov 2008
The claimant sought judicial review of the respondent’s decision that he was liable, after his discharge from bankruptcy, to suffer deductions from his benefits of sums to repay an overpayment of benefit incurred before his bankruptcy. Held: The respondent’s claim under section 71(1) was a bankruptcy debt, and as such was subject to release on … Continue reading Balding, Regina (on the Application of) v Secretary of State for Work and Pensions: Admn 3 Apr 2007
This appeal raises two closely related questions of law: whether purported execution of a foreign judgment registered in the High Court pursuant to the terms of the Lugano Convention can be execution issued in respect of the judgment debt, for the purposes of section 268(1)(b) of the Insolvency Act 1986, if the execution occurred before … Continue reading Islandsbanki Hf and Others v Stanford: CA 2 Apr 2020
The claimant sought damages after his agency with the defendants was terminated. The central issue was whether compensation was to be calculated at two years commission as derived from French practice or otherwise. Held: ‘there is no clear agreement on the principles governing the assessment of compensation under regulation 17(6) . . . the common … Continue reading Lonsdale v Howard and Hallam Ltd: CA 8 Feb 2006
(Opinion) The bank sought production of a statutory demand issued against it by the defendant. It was said to have been served by misplaced by them, but denied that it had any valid basis. The defender alleged fraud but had not given any justification for his assertions or claim. Held: ‘the defender’s position in this … Continue reading The Royal Bank of Scotland Plc v Hill: SCS 3 Jul 2012
The official receiver began director disqualification proceedings, but before the proceedings commenced, the company was wound up. Where, on an application for the disqualification of a director, the official receiver and the Secretary of State became aware that the company had in fact already been dissolved, the normal course would be to transfer the proceedings … Continue reading Re NP Engineering and Security Products Ltd; Official Receiver and Another v Pafundo and Another: CA 22 Oct 1996
Creditor’s application for annulment of bankruptcy Judges: Judge Agnello KC Deputy Insolvency and Companies Court Citations: [2022] EWHC 2683 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a) Jurisdiction: England and Wales Insolvency Updated: 31 October 2022; Ref: scu.682226
Disqualification depends on conduct of director at insolvency not hearing. Citations: Times 24-Nov-1994 Statutes: Company Directors Disqualification Act 1986 6(1) Jurisdiction: England and Wales Company Updated: 27 October 2022; Ref: scu.89085
A stay of execution of an order against matrimonial assets was not defeated by bankruptcy. As to the interplay of the Insolvency Rules and matrimonial proceedings. Balcombe LJ said: ‘I cannot leave this case without saying something about the effect of r 12.3 of the Insolvency Rules 1986. Before those rules came into force orders … Continue reading Woodley v Woodley (2): CA 12 Apr 1993
Sheriff’s failure to gain access meant that he had failed to execute the writ of fieri facias. Failure to serve writ of fieri facias is not merely a formal defect or irregularity. Citations: Ind Summary 13-Sep-1993, Times 19-Jul-1993 Statutes: Insolvency Act 1986 268(1)(b) Jurisdiction: England and Wales Litigation Practice Updated: 26 October 2022; Ref: scu.81660
The duty on company officers to disclose assets to the liquidator went beyond a duty to respond to requests, and created a positive duty to inform him of assets. Nor was the obligation to deliver up a once off event, but it was a duty continuing from time to time during the insolvency. Citations: Times … Continue reading Regina v McCredie; Regina v French: CACD 5 Oct 1999
The offence of acting as a company director whilst being an undischarged bankrupt is an absolute offence. Citations: Gazette 26-Jan-1994, Times 25-Nov-1993, [1994] 99 Cr App R 385 Statutes: Company Directors Disqualification Act 1986 11(1) Jurisdiction: England and Wales Cited by: Cited – Regina v Doring CACD 24-Jun-2002 The defendant was charged with acting as … Continue reading Regina v Brockley: CACD 25 Nov 1993
A judgment creditor, applied for an order requiring Mr Brewster, his judgment debtor, to elect to draw down a lump sum from his pension in order to enable the judgment creditor to obtain a third party debt order against the pension trustees. Held: Mr Moss granted an injunction under section 37(1) of the 1981 Act … Continue reading Blight and Others v Brewster: ChD 9 Feb 2012
EAT Deposit ordered. Order lost in post due to the Claimant putting wrong post-code on ET1. Review. Distinguishing Judgments from Orders. Strike-out. Extending time. Judges: His Honour Peter Clark Citations: [2005] UKEAT 0318 – 05 – 2907, UKEAT/0319/05/TM, UKEAT/0318/05/TM, [2005] ICR 1647, UKEAT/0320/05/TM, [2005] IRLR 836 Links: Bailii, EATn Statutes: Employment Tribunal Rules 2004 20(1) … Continue reading Sodexho Ltd v Gibbons: EAT 14 Jul 2005
Citations: [2009] BPIR 626, [2008] EWHC 2946 (Ch) Links: Bailii Statutes: Insolvency Act 1986 262(1)(b) Jurisdiction: England and Wales Insolvency Updated: 04 October 2022; Ref: scu.377225
The defendant company directors were accused of having paid dividends to themselves when the company was in fact making a loss. Held: A claim might lie, but the pleadings did not phrase it adequately, and an amendment would be improper. Though payments had been made at a time when the company ws making losses, a … Continue reading It’s A Wrap (UK) Ltd v Gula and Another: ChD 16 Sep 2005
This appeal concerned two issues of principle relating to the approval of an individual voluntary arrangement. One was as to whether, where there has been an assignment of part of a debt, which can only take effect in equity, the person entitled to vote at the creditors’ meeting called to approve the IVA was the … Continue reading Kapoor v National Westminster Bank Plc and Another: CA 5 Oct 2011
The appellants had been directors of a company which fell into difficulties. A new company was begun, and traded, and the other continued for a year before being wound up by a landlord. The lease was disclaimed. Only the landlord lost out. He claimed that the directors had continued to trade with intent to defraud. … Continue reading Morphitis v Bernasconi and others: CA 5 Mar 2003
The department complained that the defendants had entered into a transaction with their farm at an undervalue so as to defeat its claim for recovery of sums due. The transaction used the grant of a tenancy by the first chargee. Held: The farmers’ appeal as to the farm transaction failed: ‘beyond argument that DEFRA was … Continue reading Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1513): CA 9 Dec 2005
Citations: [2003] EWCA Civ 1886 Links: Bailii Statutes: Insolvency Act 1986 268(1) Jurisdiction: England and Wales Insolvency Updated: 06 September 2022; Ref: scu.193675
The claimant argued that she should not have been made bankrupt on the application of HMRC in respect of VAT sums she now disputed. Judges: Sir Andrew Morritt C, Toulson, Sullivan LJJ Citations: [2011] EWCA Civ 271, [2011] BPIR 691, [2011] STC 1237, [2011] STI 1213, [2011] BVC 162, [2011] NPC 33 Links: Bailii Statutes: … Continue reading Revenue and Customs v Chamberlin: CA 22 Mar 2011
In ancillary relief proceedings in a divorce, the husband had been ordered to transfer his interest in property to his wife. Before it was put into effect, he became insolvent. The wife and receiver competed for the interest to have been transferred. Held: Upon the order taking effect (upon the decree absolute), the wife acquired … Continue reading Mountney v Treharne: CA 8 Aug 2002
Appeal against order setting aside transaction as falling foul of section 423(1) of the 1986 Act. Judges: Lord Neuberger MR, Carnwath, Sullivan LJJ Citations: [2010] EWCA Civ 1455, [2011] BPIR 39 Links: Bailii Statutes: Insolvency Act 1986 423(1) Jurisdiction: England and Wales Insolvency Updated: 31 August 2022; Ref: scu.427361
The Revenue appealed against the recission of a bankruptcy order made on its request against the debtor taxpayer. Citations: [2008] EWHC 3180 (Ch) Links: Bailii Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 13 August 2022; Ref: scu.396462
The court was asked as to the interrelationship of the statutory schemes relating to the protection of employees’ pensions and to corporate insolvency. Held: Liabilities which arose from financial support directions or contribution notices issued by the Pensions Regulator under the 2004 Act after the company had gone into administration, which required the company to … Continue reading In re Nortel Companies and Others: SC 24 Jul 2013
The Court has no power to direct the Official Receiver as to suspension of bankruptcy. Citations: Times 19-Jul-1996, [1997] BPIR 77 Statutes: Insolvency Act 1986 303(1) 303(2) Jurisdiction: England and Wales Cited by: Cited – Bagnall QC v the Official Receiver ChD 18-Jun-2003 The bankrupt was to receive his automatic discharge. The receiver had applied … Continue reading Hardy v Focus Insurance Co (In Liquidation): ChD 19 Jul 1996
There is no power in the court to make any arrangement which will result in the preference of one set of creditors over others of the same class. Citations: Times 20-Nov-1997 Statutes: Insolvency Act 1986 183(1) Jurisdiction: England and Wales Cited by: Appeal from – In re Buckingham International Plc and In the Matter of … Continue reading In Re Buckingham International Plc: ChD 20 Nov 1997
Having authorised an enquiry under section 447, the Secretary of State presented a winding-up petition of the respondent, an authorised dealer in securities. The company had been obliged to cease trade by its regulatory body. The judge held that the public interest did not require the company to be wound up as it had ceased … Continue reading Re Walter L Jacob Ltd: CA 1989
The ordinary procedure of an insolvency involves two-stage, a statutory demand followed by a bankruptcy petition. The service of a ‘statutory demand’ in the prescribed form is simply one means of establishing ‘inability to pay’. The procedure is intended to be brief, and is aimed at establishing an inability to pay and no more. It … Continue reading Re a Debtor: ChD 1994
T was the company’s bookkeeper. He was also a director but with only a small shareholding. The company fell into difficulties. He recommended economies to the other directors which were not accepted, but then he stayed on in office. The court had disqualified the other directors but not him. The Secretary of State appealed. Held: … Continue reading In Re A Company No 004803 of 1996: ChD 2 Dec 1996
Ordinarily the court would avoid two actions on similar facts where inconsistent decisions might be reached, but where issues on setting aside a statutory demand were genuinely separate, the separate actions could continue. Citations: Times 01-Jul-1998 Statutes: Insolvency Rules 1986 (1986 No 1925) 6.5.4(d) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81672
Judges: Henderson J Citations: [2009] EWHC 1389 (Ch), [2009] Bus LR 1627, [2010] 1 Ch 63, [2009] 4 All ER 241, [2010] 2 WLR 311 Links: Bailii Statutes: Industrial and Provident Societies Act 1965, Insolvency Act 198672A(1) Jurisdiction: England and Wales Insolvency Updated: 23 July 2022; Ref: scu.347120
The applicant, a substantial creditor of the respondent sought the appointment of his agents as administrators. The respondent denied that it was insolvent, and claimed a set off as reason for non payment of its loan notes. Held: The claimant was a creditor, and the company was or was likely to become insolvent. However the … Continue reading Corbett v Nysir UK Ltd: ChD 31 Oct 2008
A block order had been made transferring the duties of an insolvency practitioner to another. In the case of an individual practitioner resigning, a creditor would have to be notified so as to be allowed to object. Here, the applicant sought a review of the transfer ordered by the court, having been notified after the … Continue reading Commissioners of Customs and Excise v Allen: ChD 6 Feb 2003
Application to annul bankruptcy order – council tax liability orders. Judges: Mullen J ICC Citations: [2019] EWHC 1763 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a) Jurisdiction: England and Wales Insolvency Updated: 19 July 2022; Ref: scu.640071
A landlord may exercise a right of peaceable re-entry without court action after his tenant company went into administration. It was not the enforcement of a security so as to be restricted by insolvency legislation. Citations: Times 04-May-1999, Gazette 26-May-1999 Statutes: Insolvency Act 1986 10(1) Jurisdiction: England and Wales Landlord and Tenant, Insolvency Updated: 19 … Continue reading In Re Lomax Leisure Ltd: ChD 4 May 1999
An airline company went into administration. The airport seized two airplanes. The administrators claimed they were property within the administration, could not be seized without a court order, and the court should exercise its discretion not to allow seizure. Held: The definition of property in the 1982 Act was wide enough to include leased property. … Continue reading Bristol Airport Plc and Another v Powdrill and Others: CA 21 Dec 1989
The claimant had received an overpayment of benefits (Job seeker’s allowance), but then was made bankrupt. He now said that this was a debt in the bankruptcy. Held: It was not. At the date of the bankruptcy order, the possible reclaim was not yet a contingent debt, and he remained liable. There was no contingent … Continue reading Steele, Regina (on the Application of) v Birmingham City Council and The Secretary of State for Work and Pensions: CA 16 Dec 2005
The company challenged the appointment of administrative receivers, saying there had been no insolvency. Held: No question arises of a derivative action arose here. The claimant had standing to apply for declaratory relief since they were directly affected by the appointment. As to the appointment itself ‘it is inconceivable that in enacting the relevant provisions … Continue reading Cabvision Ltd v Feetum and others: CA 20 Dec 2005
The appellant had been convicted of an offence under the section in that as a bankrupt, he ‘in the two years before the petition, materially contributed to, or increased the extent of, his insolvency by gambling or by rash and hazardous speculations’. The actus reus – the bankruptcy petition and the bankruptcy to which it … Continue reading Regina v Muhamad: CACD 19 Jul 2002
The council appealed a decision that the administrative receivers of a company were not liable personally for the non-domestic rates otherwise incurred by a company during the receivership. Held: The activities of the receiver or manager were not activities creating a ratable occupation. The original business owner remained in occupation for this purpose. Judges: Lord … Continue reading In re Beck Foods Ltd: Boston Borough Council v Rees and Bennett: CA 20 Dec 2001
Citations: [2001] EWCA Civ 1316 Links: Bailii Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 27 June 2022; Ref: scu.201321
The claimant appealed refusal to set aside a statutory demand made by the respondent society. The proposed defence had been already been dismissed by the courts. Held: Such a consideration was very relevant, but not necessarily determinative. The debtor was obliged to proceed quickly, and could not delay his application. He had to demonstrate a … Continue reading Thomas-Everard and Others v Society of Lloyd’s: ChD 18 Jul 2003
The court heard a contributors’ petition. The directors were in deadlock with equal shareholdings. The petition was not making good progress, and a creditor’s petition was then issued. The shareholder sought a stay. Held: There was a sufficient allegation of insolvency in the petition, and it was right that the petition should be allowed to … Continue reading Re Camburn Petroleum Products Ltd: ChD 1979
The defendant sought a stay of a warrant for possession. It had submitted to an order for possession by consent in return for a promise of alternative accomodation. They sought a stay under section 89, saying that the claimant had not complied with its own obligations. Held: The general words of section 89 do not … Continue reading Hackney v Side By Side (Kids) Ltd: QBD 14 Jul 2003
The High Court may always choose to appoint a new supervisor of a voluntary arrangement. Citations: Times 03-Mar-1997 Statutes: Insolvency Act 1986 108(1) Jurisdiction: England and Wales Insolvency Updated: 17 June 2022; Ref: scu.82310
The liquidators had lost their legal action, and had been ordered to pay the present claimants their costs. They sought payment out of an insolvency services account in competition with the solicitors for the liquidators. Held: An award of costs was not a payment of ‘expenses incurred in the winding up’ and therefore the court … Continue reading Digital Equipment Co Ltd and Others v Bower and Others: ChD 4 Dec 2003
Where a court regards a jury award in a defamation case as excessive, a ‘proper’ award can be substituted for it is not whatever sum court thinks appropriate, wholly uninfluenced by jury’s view, but the highest award which a jury could reasonably have thought necessary. ‘In a great many cases proof of a cold-blooded cost-benefit … Continue reading Kiam v MGN Ltd: CA 28 Jan 2002
When a defendant was accused of an offence under the section, and wished to raise a defence under sub-section 4, the duty of proof placed on him by the sub-section amounted to a duty to bring sufficient evidence to raise the defence, and the section did not transfer the burden from the prosecution. Held: To … Continue reading Regina v Clive Louden Carass: CACD 19 Dec 2001
A transaction could be deemed to be at an undervalue and caught by the section even though it made no difference to the overall assets and even though only one rather than the generality of creditors was prejudiced by the transaction. Here, by creating a tenancy in favour of a limited company whose shares they … Continue reading National Westminster Bank Plc v Jones and Others: ChD 7 Jul 2000
The claimants appealed from a refusal to annul their bankruptcies, saying that they should not ever have been made, because the petition debt was not a liquidated debt. The claimants said that the debt had been repudiated. Held: The appeal failed. A present right to future payment was not transformed into a claim for damages … Continue reading Webster and Another v Mackay: ChD 19 Jul 2013
The company sought to have struck out as an abuse an application to have it would up on the just and equitable ground. The status of the authority as creditor was disputed. Held: A petition was properly presented only if the petioner bona fide pursued some interest arising from the issue which gave him standing … Continue reading In re Millenium Advanced Technology Ltd: ChD 2 Apr 2004
Where a bankrupt was joint owner of property abroad but within the European Community, an English court could order the property to be sold and the proceeds paid to the trustee. Such an order could not be made against the land itself, but could be effective against the bankrupt in personam. The bankrupt and his … Continue reading Pollard and Another v Ashurst: ChD 16 Mar 2000
The court considered the application of ‘the bankruptcy template of section 382 to the rules governing the winding up of companies’. Held: The phrase ‘obligation incurred’ in Rule 13.2(1)(b) was inapt to describe a common law duty of care in negligence which existed on and was breached by a company before liquidation, but where actionable … Continue reading In re T and N Ltd and Others (No 3): ChD 16 Jun 2006
The claimant bank said that the court had had no jurisdiction to make the order it had on the respondent’s bankruptcy, saying that his ‘centre of activity’ had been Germany, and not England. Judges: Purle QC J Citations: [2012] EWHC 2432 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a), Council Regulation (EC) No 1346/2000 of … Continue reading Sparkasse Hilden Ratingen Velbert v Benk and Another: ChD 29 Aug 2012
Ms Halabi applied to annul her bankruptcy order, made for non payment of her rates. She applied within approximately 6 months of her adjudication. Her bankrupt estate was solvent but illiquid. She had not previously appreciated that she had sufficient equity in her property (over andpound;70k) to borrow sufficient to discharge her debt. Held: The … Continue reading Halabi v London Borough of Camden: ChD 14 Feb 2008
The defendant had been employed as a local government officer, and had accrued pension rights under the statutory scheme. He was made bankrupt, and later made redundant under circumstances triggering payment of the pension. The trustee claimed all or part of the pension. Held: He was entitled to the basic pension, pension lump sum, and … Continue reading Patel v Jones: CA 24 May 2001
(Cayman Islands) The Board was asked whether a debtor or alleged debtor of a company in liquidation can apply for the removal of a liquidator, in whom the creditors and contributors of the company appear to have confidence, on the ground that he is subject to a conflict of interest. Held: A debtor does not … Continue reading Deloitte and Touche Ag v Johnson and Another: PC 10 Jun 1999
The liquidator in a creditor’s voluntary liquidation sought a direction that he could take his costs of pursuing former directors in actions for wrongful trading and preferences, out of realised funds. It was held that nothing in the rules or Act supported the contention that such costs would be expenses of the voluntary winding up. … Continue reading Lewis v Commissioner of Inland Revenue and others: CA 2 Nov 2000
Appeal from refusal of appeal from bankruptcy order. Held: Refused. Judges: Evans, Laws LJJ, Jonathan Parker J Citations: [2000] EWCA Civ 124, [2000] 3 All ER 434, [2000] 3 WLR 495, [2000] BPIR 667 Links: Bailii Statutes: Insolvency Act 1986 271(1)(a) Jurisdiction: England and Wales Insolvency Updated: 31 May 2022; Ref: scu.147157
Appeal against an order of Mr Justice Evans-Lombe on an application made pursuant to section 112(1) of the Insolvency Act 1986 by the joint liquidators of Toshoku Finance UK Plc (‘the Company’) for directions in relation to the discharge of an alleged liability to corporation tax on interest receivable after the commencement of the winding … Continue reading Commissioners of Inland Revenue v Kahn and Another: CA 23 Mar 2000
Judges: HHJ Halliwell Citations: [2022] EWHC 1060 (Ch) Links: Bailii Statutes: Insolvency Act 1986 279(3) 366(1) Jurisdiction: England and Wales Insolvency Updated: 31 May 2022; Ref: scu.677539
The district auditor had issued a certificate under the 1982 Act surcharging the appellant councillors in the sum of 106,103, pounds being the amount of a loss incurred or deficiency caused, as the auditor found, by their wilful misconduct. Held: An aggrieved objector to local government spending should pursue his rights under the Act and … Continue reading Lloyd v McMahon: HL 12 Mar 1987
A former partner in a firm could not set off sums due to him from the former partnership, against sums expended by remaining partners in acting to protect partnership property, and claimed from him. There was insufficient mutuality to enforce the set off. The one claim was by partners but as trustees, and the other … Continue reading Hurst v Bennett and Others In Re A Debtor (No 302 of 1997): CA 16 Feb 2001
The claimants worked for Rotaprint when it went into receivership in 1988, and then for the receiver before being transferred to Pan Graphics. Statutory redundany payments were made on the receivership of Rotaprint. The claimants sought further redundancy payment on the insolvency of Rotaprint. The Secretary now appealed the decision of the EAT that payments … Continue reading Lassman and Others v Secretary of State for Trade and Industry: CA 19 Apr 2000
A retirement annuity or personal pension was part of a bankrupt’s estate before the recent Act, and vested immediately in the trustee on the bankruptcy. As such there was no need to make application to the court under s310 for an income payment order before those assets could be made available to the creditors. Acts … Continue reading Dennison v Krasner, Lesser, Lawrence: CA 6 Apr 2000
The requirement that a statutory demand must be signed by someone claiming authority of the creditor to sign it could be satisfied by someone who in fact did have authority in law to make the demand. The rules should be read according to its purpose. Judges: Morritt, Chadwicj LJJ, Charles J Citations: Times 14-Jun-2000, [2000] … Continue reading Dacorum Borough Council v Horne: CA 26 May 2000
The Regulation under question was procedural;, and a failure to comply with its requirements was not to be deemed fatal. The requirement for a trustee to identify the transactions to be set aside did not require every single part of the scheme to be detailed, provided as in this case the purpose of the scheme … Continue reading Ashe v Mumford and Others: ChD 7 Mar 2000
Tne question of whether there was at any time ‘pending court proceedings’ was answered by asking if there existed a court file. The section empowered a court itself to appoint another trustee in bankruptcy. Section 41 of the 1984 Act could be used by the HighCourt to take some control over proceedings for an individual … Continue reading Re Bullard and Taplin Ltd: ChD 1996
An expedited bankruptcy petition could be filed, despite the existence of an outstanding application to set aside the statutory demand on which it was based. Section 270 overrides section 267(2(d). Judges: Mummery J Citations: Times 12-Jul-1993 Statutes: Insolvency Act 1986 270, Insolvency Rules 1986 (1986 No 1925) Insolvency Updated: 15 May 2022; Ref: scu.77574
The claimant had failed in an action for damages against the respondent, and had failed to pay the costs award. The respondent issued a statutory demand. He claimed that it was invalid because the chief constable had changed in the interim, and there had been no assignment of the benefit of the order. Held: The … Continue reading Coulter v Chief Constable of Dorset Police: ChD 12 Dec 2003
Affidavits including hearsay were inadmissible on a challenge to voluntary arrangement. The proceedings were for a final order. Citations: Times 19-Jul-1995, Ind Summary 10-Jul-1995 Statutes: Insolvency Act 1986 262(1)(b) Jurisdiction: England and Wales Insolvency Updated: 11 May 2022; Ref: scu.85697
The section gives the court jurisdiction to make an administration order if it ‘(a) is satisfied that a company is or is likely to become unable to pay its debts’ and ‘(b) considers that the making of an order . . would be likely to achieve’ one or more of the purposes specified in s8(3). … Continue reading In re Harris Simons Construction Limited: ChD 1989
A prerequisite to making an administration order under section 8(1) is that the court considers making such an order ‘would be likely to achieve’ one of the statutory purposes. Held: This required the court to be satisfied there is a ‘prospect sufficiently likely in the light of all the other circumstances of the case to … Continue reading In re Primlaks (UK) Ltd: 1989
W divorced H, and under a property adjustment order made by consent, the jointly owned matrimonial home was transferred to her outright. H was made bankrupt less than two years later, and the trustee sought a declaration that the consent order or its implementation was void under section 42 which protected only a settlement made … Continue reading In re Abbott: ChD 1983
The Official Receiver could not use the powers given to him for the purposes of his insolvency duties to require production of documents form solicitors and accountants, to satisfy duties placed on him by the Secretary of State for the purpose of company director disqualification proceedings. The secretary of state could not ask the Official … Continue reading In re Pantmaenog Timber Co Ltd: CA 25 Jul 2001
A court could properly look at the degree of a bankrupt’s behaviour in gambling so as to materially either contribute to or materially increase the extent of his insolvency by gambling or reckless speculation, and if such behaviour was found the defendant could commit the offence. The word materially was intended to apply to either … Continue reading Regina v P: CACD 29 Mar 2000
The continued ownership of a waste disposal licence was not a bar to the completion of the liquidation of the company provided the liquidator could show ability to comply with the statutory requirements for the licence. Citations: Gazette 06-May-1999 Statutes: Insolvency Act 1986 106(1) 201(2) Jurisdiction: England and Wales Insolvency Updated: 08 April 2022; Ref: … Continue reading In Re Wilmott Trading Ltd: ChD 6 May 1999
Applications regarding disclaimer provisions of the 1986 Act. Judges: John Male QC Citations: [2017] EWHC 605 (Ch), [2017] WLR(D) 281 Links: Bailii, WLRD Statutes: Insolvency Act 1986 315 Jurisdiction: England and Wales Insolvency Updated: 24 March 2022; Ref: scu.581967
Date on which ‘grounds’ must exist for annulment of order. A bankrupt applying to annul an order must establish the grounds for annulment not at the date of the hearing of that application, but rather at the date when the order itself was made. Citations: Ind Summary 01-Mar-1993 Statutes: Insolvency Act 1986 282(1) Jurisdiction: England … Continue reading Re A Debtor (No 68 of 1992): ChD 1 Mar 1993
The trustee in bankruptcy had taken a charge on the property in 1992 to support the bankruptcy in 1988. He sought to enforce it in 2005. The chargor appealed an order which denied he was protected by limitation. Held: The appeal succeeded. Charges under the 1986 Act were unusual in that they were not preceded … Continue reading Doodes v Gotham, Perry: ChD 17 Nov 2005
