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 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
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
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
(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 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
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 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
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
A tenancy granted by an insolvent farmer to his wife was set aside because of additional benefits which were granted. The tenancy was held to have been granted at an undervalue, even though the court was unable precisely to measure the value of the benefits granted. ‘In applying section 423(1)(c) to the facts of the … Continue reading Agricultural Mortgage Corporation Plc v Woodward and Another: CA 30 May 1994
The Receivers sought directions as to how to apply monies coming into their hands on the basis that, on advice, they considered that they needed the Court’s answer to an underlying difficult issue of the construction of the Security Trust Deed. The court was asked how the Receivers should apply monies coming into their hands … Continue reading In re Cheyne Finance Plc: ChD 12 Sep 2007
The court was asked as to the treatment of the assets of the company in case of a future insolvency. Held: Briggs J decided section 123(1)(e) required: ‘In my judgment, the effect of the alterations to the insolvency test made in 1985 and now found in section 123 of the 1986 Act was to replace … Continue reading In re Cheyne Finance Plc (No 2): ChD 17 Oct 2007
Disputes arose between shareholders in a family company. Proceedings which expressly excluded the company were settled, but the company became insolvent. A later settlement was refused approval by the judge without the creditors consent. The claimant now sought a declaration that the earlier compromise bound the company. The company argued that the agreement was conditional … Continue reading Thakrar v Ciro Citterio Menswear Plc In Administration: ChD 1 Oct 2002
The defendant appealed a conviction for hiding assets from her receiver following her bankruptcy. He said that recent case law suggested that the burden of establishing the defence under section 352 was evidential only. Held: The conviction predated the Human Rights Act, and was correct at the time. The Carass ruling applied also to the … Continue reading Regina v Daniel: CACD 22 Mar 2002
The claimant requested the revocation of a grant of probate to the defendant. They had suspicions about the will propounded and lodged a caveat which was warned off and the grant completed. In breach of court orders, the defendant had transferred substantial estate assets abroad. The defendant said that the burden of proving that the … Continue reading The Solicitor for the Affairs of HM Treasury v Doveton and Another: ChD 13 Nov 2008
The applicants had been made subject of anti-social behaviour orders. They challenged the basis upon which the orders had been made. Held: The orders had no identifiable consequences which would make the process a criminal one. Civil standards of evidence therefore applied, and hearsay evidence was admissible. Nevertheless, the test as to whether it was … Continue reading Clingham (formerly C (a minor)) v Royal Borough of Kensington and Chelsea; Regina v Crown Court at Manchester Ex parte McCann and Others: HL 17 Oct 2002
The administrators gave employees of the company notice of termination of their employment. Then administrators refused consent under para 43(6) to actions against the company in the Northern Ireland Industrial Tribunal for protective awards, unfair dismissal, breach of contract and otherwise. The claims were issued anyway, and the administrators argued that they were a nullity, … Continue reading McCartney and Unite The Union and Another v Nortel Networks UK Ltd (In Administration): ChD 22 Apr 2010
The claimants complained of their segregation while in prison. Several preliminary questions were to be decided: whether damages might be payable for breach of a Convention Right; wheher the act of a prison governor was the act of the executive; whether time ran from the date of the first breach, whether want of proportionality is … Continue reading Somerville v Scottish Ministers: HL 24 Oct 2007
The bankrupt applicants each applied to the Court of Appeal for leave to appeal against the judgment for a liquidated sum on which the bankruptcy petition had been based. In the first case, the trustee in bankruptcy indicated his unwillingness to pursue an appeal; in the second, no trustee had been appointed. Held: A bankrupt … Continue reading Heath v Tang, Stevens v Peacock: CA 11 Aug 1993
The respondent had issued bonds but in 2001 had declared a moratorium on paying them. The appellant hedge fund later bought the bonds, heavily discounted. Judgment was obtained in New York, which the appellants now sought to enforce against assets in the UK. They argued that the terms of issue waived state immunity. Held: The … Continue reading NML Capital Ltd v Argentina: SC 6 Jul 2011
Own compulsory statements used against bankrupt Application to commit the Respondent to prison for breaches of various provisions of the Insolvency Act which are said to constitute deliberate, repeated, and serious contempt of court. Held: Such applications should be dealth with under CPR r81.15 in Chancery. Statements obtained under compulsion via Section 433 might be … Continue reading Simmonds v Pearce: Admn 1 Dec 2017
Application by a bankrupt, for an order directing that the Second Respondent should cease acting as solicitors for both the First Respondent (‘Avonwick’) and the Third Respondents, Moore Stephens LLP, his joint trustees in bankruptcy. Held: The appication was granted. The exercise of control of privileged information was not governed by the ownership of the … Continue reading Shlosberg v Avonwick Holdings Ltd and Others: ChD 5 May 2016
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The various parties had entered into complex and substantial financial arrangements incorporating guarantees. The guarantees were conditional upon the guaranteed party being solvent. The parties disputed whether a party which would otherwise be . .
