(Supreme Court of the Republic of Ireland) A debenture conferred a fixed charge on book debts. It specifically provided that withdrawals from the account to which the proceeds of the book debts had to be credited might only be made with the prior consent in writing of the Bank. This additional restriction on the ordinary … Continue reading In Re Keenan Bros Ltd: 1986
Briggs Reg [2016] EWHC 2522 (Ch) Bailii Insolvency Rule 1986 England and Wales Insolvency Updated: 24 January 2022; Ref: scu.570848
The court does not have power to order the payment of a liquidator’s costs which had not been properly incurred. The costs of unsuccessful litigation were not recoverable in priority to a secured creditor in priority to the charge. As to rule 7.47(1) of the Rules: ‘But, since the point has been raised and may … Continue reading Mond and Another v Hammond Suddards and Another: CA 15 Jun 1999
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
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
Landlord bound by voluntary arrangement on future rent despite disagreement. A meeting chairman has power to impose ‘agreed’ value on claim to allow vote to creditor. Citations: Ind Summary 18-Dec-1995, Gazette 17-Jan-1996, Times 07-Dec-1995 Statutes: Insolvency Rules 1986 5 17(3) Jurisdiction: England and Wales Insolvency, Landlord and Tenant Updated: 09 December 2022; Ref: scu.80097
The rule against double proof is implicit in the Insolvency Act 1986, and ‘remains good law. It is an overarching principle which still applies to insolvency, and nothing in Stein v Blake [1996] AC 243 calls it into question.’ Judges: Neuberger J Citations: [2000] BPIR 456 Jurisdiction: England and Wales Cited by: Cited – In … Continue reading In re Glen Express Ltd: ChD 2000
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 effect under paragraph 31 remained unsatisfied. However, the administration was carried on … Continue reading In re G-Tech Construction Limited: ChD 29 Sep 2005
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
The Revenue sought the defendant’s liquidation, challenging the sum fixed to be due by the chairman of the meeting and the football rules which gave preference to football debts over those of others. The dispute was as to treament of receipts for players’ image and associated rights. They were paid into discretionary trust funds, and … Continue reading HMRC v Portsmouth City Football Club Ltd and Others: ChD 5 Aug 2010
The bankrupt wished to discharge his bankruptcy debt, but challenged the trustee’s fees. Held: The court approved application of the Practice Statement 2004.Proudman J said: ‘The court’s task is to balance all the various criteria, resolving any conflict between them arising in the particular case, in order to arrive at the proper level of remuneration. … Continue reading Hunt v Yearwood-Grazette: ChD 7 Apr 2009
The claimant sued for breach of trust. The action was re-instated after being struck out for want of prosecution, but in the meantime the defendant had been made bankrupt and then discharged from bankruptcy. An order for costs was then made which the claimant now sought to enforce. Held: The possibility of a future costs … Continue reading Glenister v Rowe: CA 21 Apr 1999
A contractor had done defective work in breach of a building contract with the developer but the loss was suffered by a third party who had by then purchased the development. The developer recovered the loss suffered by the purchaser. Held: The benefit of a contract may be assigned to a third party without the … Continue reading Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd and Others; St. Martins Property Corporation Ltd v Sir Robert McAlpine: HL 8 Dec 1993
The appellant challenged a formal statutory demand which had led to his bankruptcy. The demand had included the anticipated cost of realising the charged property, and also had been inflated to allow for extra costs of dealing the appellant who was perceived to be recalcitrant and unco-operative. Held: The statutory demand could only include sums … Continue reading Owo-Samson v Barclays Bank Plc, Boyden: CA 21 May 2003
Although an order for costs might in some circumstances not be provable in an insolvency, that did not prevent a statutory demand based upon that debt. Whether it was provable would become clear in the later insolvency proceedings. The court had a discretion to found a petition on an unproveable debt where there were special … Continue reading Levy v Legal Aid Board: ChD 24 Feb 2000
The company sought to claim under a life policy. The deceased had died in Scotland insolvent. The trustee of the policy had declared that he held it on trust for the claimant, but the defendant, the judicial factor of the estate, said the declaration of trust was ineffective as a transaction at an undervalue. The … Continue reading Ramlort Ltd v Michael James Meston Reid: CA 8 Jul 2004
Whether the appellants appeared to have a counterclaim against AIB which equals or exceeds the amount of the debt specified in the statutory demands. That is a ground on which a court may grant an application to set aside a statutory demand: rule 6.5(4)(a) Insolvency Rules 1986. Citations: [1998] 2 All ER 929, [1998] EWCA … Continue reading AIB Finance Limited v Alsop and Another: CA 3 Mar 1998
An Insolvency Court has the power to order a foreign non-party company to produce documents concerning foreign business despite the usual rule. Citations: Times 20-Dec-1997 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Insolvency Updated: 13 November 2022; Ref: scu.82061
The test for the exercise of the discretion to set aside a statutory demand is whether there are circumstances which would make it unjust for the statutory demand to give rise to insolvency consequences in the particular case. Judges: HHJ Weeks QC Citations: [2008] 1 BCLC 314, [2005] EWHC 3519 Statutes: Insolvency Rules 1986 6.5(4)(a) … Continue reading Chan v Appasamy: 2008
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
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
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
A judge’s refusal to allow the inspection of insolvency records is unappealable. Citations: Gazette 20-Nov-1996, Times 11-Nov-1996, [1996] EWCA Civ 844, [2000] BPIR 223, [1997] 1 WLR 616, [1997] BCC 362, [1997] 1 BCLC 233 Links: Bailii Statutes: Insolvency Rules 1986 (1986 No 1925) 7.28 Jurisdiction: England and Wales Insolvency Updated: 01 November 2022; Ref: … Continue reading In the Matter of Austintel Limited: CA 31 Oct 1996
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
The liquidator had sought to set aside a transfer of company property as having been made at an undervalue. The defence was that the buyer had assumed some of the company’s debt in addition, and in effect that it was a preference on other creditors. The court had then issued an interlocutor in effect debarring … Continue reading Henderson v 3052775 Nova Scotia Ltd: HL 10 May 2006
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
(Leeds County Court) The creditor sought to have a proof admitted for pounds 479k, but the chair admitted it only for pounds 1.00, and the IVA proposal was accepted again the wishes of the creditor. The creditor said that the IP had misunderstood the claim and should have treated it as liquidated. The chair responded … Continue reading AB Agri Ltd v Curtis and Others: Misc 22 Jul 2016
The court was asked to interpret the provisions as to ‘client money rules’ and ‘client money distribution rules’ in the FSA handbook, and to consider the consequences as to the applicable trusts. Substantial sums paid by clients to the bank before its insolvency were now unavailable. Held: The appeal failed. The statutory trust under the … Continue reading Lehman Brothers International (Europe), Re: SC 29 Feb 2012
Judges: Hodge QC J Citations: [2010] EWHC 3751 (Ch) Links: Bailii Statutes: Insolvency Rules 1986 7.55 Jurisdiction: England and Wales Insolvency Updated: 04 October 2022; Ref: scu.434925
The director sought to appeal an order disqualifying him form acting as a company director. Held: The disqualification proceedings were properly charactised as insolvency proceedings and therefore there was no requirement for permission to appeal to a high court judge. Judges: Morritt Citations: [2005] EWHC 888 (Ch), Times 26-May-2005 Links: Bailii Statutes: Company Directors Disqualification … Continue reading Secretary of State for Trade and Industry v Paulin: ChD 13 May 2005
The court’s discretion in appointing provisional liquidators is unfettered provided it is exercised in a ‘proper judicial manner’. Sir Robert Megarry V-C said: ‘I would respectfully express my complete agreement with the view taken by [the judge]. I do not think that the old authorities, properly read, had the effect of laying down any rule … Continue reading In re Highfield Commodities Ltd: ChD 1985
Agreement for payment by joint debtor not contract The claimant appealed against refusal of an order to set aside a statutory demand. He said that he had compromised a claim by the creditors. He argued for an extension to the Rule in Pinnel’s case, so that where a debtor agrees to pay part of a … Continue reading Collier v P and M J Wright (Holdings) Ltd: CA 14 Dec 2007
‘These appeals raise important and difficult questions posed by the impact of legislation for the protection of pension funds upon companies which are undergoing an insolvency process.’ Judges: Laws, Lloyd, Rimer LJJ Citations: [2011] EWCA Civ 1124, [2012] BCC 83, [2012] 1 BCLC 248, [2012] BCLC 248, [2012] 1 All ER 1455, [2012] Bus LR … Continue reading Bloom and Others v The Pensions Regulator and Others; In re Nortel GMBH (in administration: CA 14 Oct 2011
The revenue appealed against refusal of its petition for the winding up of the company for non-payment of a VAT assessment. The company said that the assessment was disputed. The revenue said that the company had been run for the purpose of submitting false VAT Input tax claims, and suppressing Output tax invoices. Held: The … Continue reading Revenue and Customs v Rochdale Drinks Distributors Ltd: CA 13 Oct 2011
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 court was asked: ‘whether or not the appellants were released from their obligation under a covenant to indemnify the respondents against claims arising under a lease by reason of the terms of an individual voluntary arrangement made under part VIII of the Insolvency Act 1986 by a co-obligee who was liable, jointly with the … Continue reading Johnson and Another v Davis and Another: CA 18 Mar 1998
A bankrupt had, before his bankruptcy disposed of his share in a house at an undervalue. His wife appealed an order that the share disposed of should vest entirely in the trustee in bankruptcy. Matrimonial proceedings had also been commenced. Held: The wife was seeking effectively not re-instatement, but the creation of a position which … Continue reading Gita Ram v Baskinder Ram,Solinder Ram, Monder Ram and Maurice William Russell: CA 5 Nov 2004
Citations: [2006] EWHC 1954 (Ch) Links: Bailii Statutes: Solicitors Act 1974, Insolvency Rules 1986 6.5 Jurisdiction: England and Wales Legal Professions, Insolvency Updated: 11 September 2022; Ref: scu.243987
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
The petitioner former wife sought to make the husband bankrupt on the basis of unpaid maintenance debts. The maintenance was subject to variation by the original foreign court which had made the order. Held: The order was one recognised under the Act. The fact that the foreign court could still order a variation was critical … Continue reading Cartwright v Cartwright and Others: CA 3 Jul 2002
The parties disputed the meaning of an patent and know how licence. The parties disputed whether the agreement referred to IP rights before formal patents had been granted despite the terms of the agreement. Held: ‘The secret of drafting legal documents was best described by Nicolas Boileau, who was not only a literary critic but … Continue reading Oxonica Energy Ltd v Neuftec Ltd: PatC 5 Sep 2008
The respondent bank had obtained a charging order nisi against the applicant’s property. The applicant then obtained an order under s252 of the act requiring any further action against his estate to be stayed. The bank nevertheless obtained an order absolute. The claimant was not represented at that hearing. Several years later he sought to … Continue reading Clarke v Coutts and Co: CA 17 Jun 2002
The court was asked as to the set-off, in a company administration, of future debts owed by the company to its creditors and by those creditors to the company, and whether the effect of those provisions was that, after the future debts were discounted to a present value for the purpose of set-off, leaving a … Continue reading In re Kaupthing Singer and Friedlander Ltd: CA 11 May 2010
Insolvency petitions are not to be provided en masse for resale to the public. Citations: Times 22-May-1996 Statutes: Insolvency Rules 1986 7.28 Jurisdiction: England and Wales Insolvency Updated: 16 August 2022; Ref: scu.80401
The subject of the bankruptcy proceedings asked that the petition be heard in private so as not to prejudice pending criminal proceedings in a foreign jurisdiction. Held: The bankrupt would be required to answer questions which might be self incriminating. The court had power to hear the matter in private, and would do so, but … Continue reading In re Rottmann (a Bankrupt): ChD 20 May 2008
The claimants sought damages for breach of confidence saying that the defendants had hacked into their computer systems via the internet to seek privileged information in the course of litigation. The defendants denied this and said the courts had no jurisdiction. Held: The court at this stage should look no further than asking whether there … Continue reading Ashton Investments Ltd. and Another v OJSC Russian Aluminium (Rusal) and others: ComC 18 Oct 2006
On the winding up of the company, there had unexpectedly been a surplus of assets after payment of all debts. The court was now asked to determine claims to be allowed before a distribution was made. Held: The court made declarations as follows: ‘i) The claims of LBHI2 under its subordinated loan agreements with LBIE … Continue reading Re Lehman Brothers International (Europe) and Others: ChD 14 Mar 2014
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
Applications for directions by the administrators of twenty companies in two groups, all raising the same common questions as to the effect of the Financial Support Direction regime created by the Pensions Act 2004 upon companies in administration or insolvent liquidation.Briggs J said that Lord Hoffmann’s speech in Toshoku established as ‘a general rule’ that: … Continue reading Bloom and Others v The Pensions Regulator (Nortel, Re): ChD 10 Dec 2010
Not all debts which were eligible for proof in bankruptcy were also eligible for a set off. Rose Ljexplained the doctrine of equitable marshallling, saying: ‘The doctrine of marshalling applies where there are two creditors of the same debtor, each owed a different debt, one creditor (A) having two or more securities for the debt … Continue reading Bank of Credit and Commerce International Sa (In Liquidation) (No 8): CA 2 Oct 1996
The debtor had agreed to buy a company from the petitioner, the price to be payable in instalments by means of post-dated cheques. The debtor alleged misrepresentation and stopped one of the cheques. The petitioner served a statutory demand based on the dishonoured cheque. The district judge dismissed the debtor’s application to set aside the … Continue reading Hofer v Strawson: ChD 31 Mar 1999
A claim was made in respect of personal injuries sustained by a passenger when a tram ran out of control. The Company was in insolvent liquidation. A claim for the same amount for the same injuries could be made in contract or in tort. Held: The unliquidated claim in contract was provable, but not the … Continue reading Re Great Orme Tramways Co: 1934
The property mortgaged was specialised sound and lighting equipment used at pop concerts. The mortgagee’s guarantor was dissatisfied with the way in which the receiver sold the equipment. Held: Where a company receiver was appointed under a charge in common form, he acted as the agent of the the mortgagor until the mortgagor’s liquidation. Something … Continue reading American Express International Banking Corporation v Hurley: ChD 1985
Judges: Norris J Citations: [2009] EWHC 2308 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Cited by: Appeal From – In re Kaupthing Singer and Friedlander Ltd CA 11-May-2010 The court was asked as to the set-off, in a company administration, of future debts owed by the company to its creditors and … Continue reading In re Kaupthing Singer and Friedlander Ltd: ChD 2 Oct 2009
The claimant investors said that their financial adviser, the defendant insolvent company, had given them negligent advice. The action was brought as a preliminary to claiming against the defendant’s insurers under the 1930 Act, in the way made necessary by the Post Office and Bradley cases. Limitation defences were deployed to strike the action out. … Continue reading Financial Services Compensation Scheme Ltd v Larnell (Insurances) Ltd: CA 29 Nov 2005
Where A and B each have claims against each other and A is insolvent, the common amount is set off, and the net difference remains as a debt due. Hoffmann L said: ‘It is a matter of common occurrence for an individual to become insolvent while attempting to pursue a claim against someone else. In … Continue reading Stein v Blake: HL 18 May 1995
A statutory demand was served against the guarantor of the lease after rent arrears arose. He applied for the demand to be set aside, and now appealed against its refusal. He said that the court would have set aside such a demand against the tenant, and should provide similar relief to a guarantor. Held: (Mummery … Continue reading Remblance v Octagon Assets Ltd: CA 17 Jun 2009
The parties, the bankrupt and her trustee, had engaged in a mediation which failed at first, but applicant said an agreement was concluded on the day following. The defendants denied this, and the court as asked to determine whether a settlement had occurred, and was now asked whether without prejudice communications made during the mediation … Continue reading Brown v Rice and Another: ChD 14 Mar 2007
The insolvency practitioner held many appointments. His partnership in a large firm of accountants ended suddenly. He did not have the resources to handle the cases, and nor could acceptable arrangements be made for him to have access to the related files within the firm. An application was made by another partner in the firm … Continue reading In Re Sutton (Removal of Liquidator): ChD 17 Oct 1997
Contributory’s petition to wind up was not to be advertised before return date. Citations: Times 15-Feb-1996 Statutes: Insolvency Rules 1986 (1986 No 1925) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81644
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
A restraint of the advertisement of a winding up petition was to be used only exceptionally. Citations: Times 17-Feb-1995 Statutes: Insolvency Rules 1986 4.11(1) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81697
Where it was alleged that shares in a UK company had been sold at an undervalue, so as to allow a challenge in insolvency proceedings, the leave of the court was still required if the pleadings were to be served abroad. When the court considered such an application, it had to look not just at … Continue reading In Re Banco Nacional De Cuba: ChD 7 Jun 2001
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 to follow the practice. Judges: Henderson J Citations: [2011] EWHC 1668 (Ch) Links: Bailii Statutes: … Continue reading In re Frontsouth (Witham) Ltd and Another: ChD 30 Jun 2011
The applicant sought leave to appeal against a refusal to adjourn his examination in bankruptcy fearing that the contents would become public prejudicing his criminal trial abroad. The court had allowed a private examination, but he felt this was insufficient protection. Held: Leave was refused. Judges: Mummery LJ Citations: [2008] EWCA Civ 1360 Links: Bailii … Continue reading Rottmann v Brittain: CA 12 Nov 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
The chairman of the creditors meeting had marked the proof of Petrus as objected to but had allowed Petrus to resulting in the appointment of the joint liquidators. The claimant now challenged this saying that had Petrus not been allowed tp vote he would have been appointed. Held: Lewison J set out the scheme: ‘The … Continue reading Power v Petrus Estates Ltd and others: ChD 31 Oct 2008
H had declared himself bankrupt. W asserted that he had done this by hiding his assets and fabricating debts in order to defeat her financial claims on the divorce. She appealed from a refusal to transfer the annulment proceedings to the family court to allow the investigation to become part of Judges: Thorpe, Rimer, Patten … Continue reading Arif v Zar and Another: CA 18 Jul 2012
The remuneration of a provisional liquidator takes precedence over the costs and expenses of a liquidator. Accordingly the expenses of the provisional liquidator for VAT, and PAYE and National Insurance take a similar priority over later costs of a liquidator. Citations: Times 29-Jun-1999 Statutes: Insolvency Rules 1986 4.218(1)(a) Jurisdiction: England and Wales Insolvency Updated: 19 … Continue reading In Re Grey Martin Ltd: ChD 29 Jun 1999
A stranger to an insolvency petition has no locus standi to apply later to rescind the winding up order. Citations: Times 06-May-1997, Gazette 21-Jan-1998 Statutes: Insolvency Rules 1986/1925 r 7.47 Jurisdiction: England and Wales Insolvency Updated: 19 July 2022; Ref: scu.82059
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the company, but Saudi law would not recognise such trusts. The shares had been … Continue reading Akers and Others v Samba Financial Group: SC 1 Feb 2017
The court cannot simply disapply rules, including and particularly those allowing set off in insolvency cases. Citations: Times 08-Oct-1996 Statutes: Insolvency Rules 1986 4.90 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.81742
Private school fees might well be a reasonably necessary expenditure for bankrupt to be allowed when assessing what income needs he has before ordering income payment. No general rule. Citations: Times 04-May-1998, Gazette 20-May-1998 Statutes: Insolvency Act 1986 310 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.82154
On the divorce, the husband was ordered to transfer his share in the house to the wife. On his bankruptcy shortly after, the order was confirmed. After the wife sold the property at a profit, the trustee in bankruptcy applied to set the transfer aside as a transaction at an undervalue. Held: The starting point … Continue reading Haines v Hill and Another: CA 5 Dec 2007
Practice and Procedure – Stay – Paragraph 43(6) Schedule B1 Insolvency Act 1986 The Claimant had commenced Employment Tribunal (‘ET’) proceedings against eight Respondents. Subsequently, the first two Respondents (one of which had been the Claimant’s employer) went into administration and a stay was imposed on the proceedings under paragraph 43(6) Schedule B1 Insolvency Act … Continue reading Ince Gordon Dadds Llp and Others v J Tunstall and Others: EAT 19 Jun 2019
Judges: Tucke, Carnwath, Neuberger LJJ Citations: [2006] EWCA Civ 1720, [2007] Bus LR 589 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: Cited – In re Clark (a bankrupt); ex parte the Trustee v Texaco Ltd ChD 1975 Walton J restated the rule in In re James: ‘the rule provides that where … Continue reading Getliffe and Another, Re Lune Metal Products Ltd: CA 14 Dec 2006
The claimant alleged that the defendants had funded the purchase of various properties by secret and unlawful commissions taken by them whilst in power in Pakistan. They sought to recover the proceeds. They now sought permission to serve proceedings on the defendant companies abroad, outside a Lugano Convention country. Held: The claim should proced. ‘There … Continue reading Islamic Republic of Pakistan v Zardari and others: ComC 6 Oct 2006
There had been a material irregularity in a creditors’ meeting called to approve a voluntary arrangement, where the chair of the meeting had put forward an highly debatable estimate of one creditor’s debt. The voluntary arrangement was set aside. Judges: Ferris J Citations: Gazette 18-Jan-1995, Times 23-Jun-1994 Statutes: Insolvency Rules 1986 1.17 Jurisdiction: England and … Continue reading In Re Cranley Mansions Ltd: ChD 23 Jun 1994
The claimant company had failed in its action. The court was asked to make a costs order personally against the principal director of the claimant who had controlled the litigation and funded it. He responded that no impropriety had been shown on his part to allow such an order. Held: ‘It is not a requirement … Continue reading BE Studios Ltd v Smith and Williamson Ltd: ChD 2 Dec 2005
Separate applications were made by liquidators of companies in variously voluntary or compulsory liquidation and otherwise. Judges: Chadwick J Citations: [1995] 2 BCLC 594 Statutes: Insolvency Rules 4.108 6.126 Jurisdiction: England and Wales Citing: Followed – Re Bridgend Goldsmiths Limited and Others ChD 1995 The High court may not exercise its jurisdiction under section 263 … Continue reading In re Sankey Furniture Ltd, ex parte Harding; Re Calorifique Limited, ex parte Betts: ChD 1995
The claimant appealed refusal to set aside a statutory demand served by the defendant. The parties had become embroiled in criminal proceedings and the defendant sought recovery of assets from the claimant. In those proceedings a costs order had been made and that was the basis of the statutory demand. The claimant said that his … Continue reading Popely v Popely: ChD 25 Jul 2003
‘The issue raised by this application is as to the ambit of (1) the Court’s jurisdiction to prevent unfair harm pursuant to paragraph 74 of Schedule B1 to the Insolvency Act 1986 (‘the Act’) and (2) the rule in Ex Parte James’ Citations: [2018] EWHC 2783 (Ch) Links: Bailii Jurisdiction: England and Wales Insolvency Updated: … Continue reading Lehman Brothers Australia Ltd v Lomas and Others: ChD 24 Oct 2018
The Secretary of state sought the winding up of the companies saying it was expedient in the public interest to do so. A shareholder opposed this saying that the companies were solvent. Held: The shareholder had, in the absence of any position taken by the company, the standing to make the application, which was granted … Continue reading Rodencroft Limited, W. G. Birch Developments Limited, H-M Birch Limited; Simon Allso v The Secretary for State for Trade and Industry: ChD 23 Apr 2004
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 statement was issued as a gloss on the 1994 practice statement. A party wishing to restrict access to all or any part of an independent report prepared in support of an application for an administration order must be ready to support their application with proper reasons. Each application must be dealt with on its … Continue reading Practice Statement (Administration order: Reports): ChD 15 Apr 2002
The bankrupt was to receive his automatic discharge. The receiver had applied ex parte to suspend the automatic discharge. The bankrupt appealed. Held: The court had power to make such an order. The court had seen strong prima facie evidence that the bankrupt had failed in his obligation to co-operate with the receiver. The failure … Continue reading Bagnall QC v the Official Receiver: ChD 18 Jun 2003
The company went into insolvent liquidation. The secretary of state was to make payments to employees and there were other state preferential creditors. At the same time a refund of VAT was due from the Commissioners of customs and Excise. Held: The sums paid out and preferential debts could be set off against the VAT … Continue reading Secretary of State for Trade and Industry v Frid: HL 13 May 2004
The expression ‘cross-demand’ in rule 6.5(4)(a) did not imply any kind of procedural or juridical relationship to the debt subject to the statutory demand. All it meant was that the demand was one that went the other way, i.e. was a demand by the debtor on the creditor. The cross-claim must still be one which … Continue reading Popely v Popely: CA 30 Apr 2004
The liquidator sought to recover his expenses from assets charged under a floating charge in priority to the chargee. Held: Barleycorn was decided in error. The liquidators costs incurred in an insolvent winding up were not to be charged against the assets subject to the floating charge: ‘The winding up of a company is a … Continue reading Buchler and another (as joint liquidators of Leyland DAF Limited) v Talbot and another (as joint administrative receivers of Leyland DAF Limited) and Stichting Ofasec and others: HL 4 Mar 2004
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
The mortgage lender had proved in the voluntary arrangement as an unsecured creditor. It had valued the security as less than the debt, and accepted a dividend on the portion remaining unsecured. It now sought to enforce the security. It was argued that it had compromised its entire claim. Held: The lender had compromised its … Continue reading Household Mortgage Corporation plc v Whitehead and Another: CA 14 Nov 2002
Shareholders with over 90% of the issued shares sought to acquire the remaining shares, and create another company to do so. That company offered to purchase the shares at a valuation. The majority shareholders accepted but the minority shareholder refused. The new company gave notice to exercise the statutory power of compulsory acquisition under the … Continue reading Re Bugle Press Ltd: CA 2 Jan 1961
The Court reminded insolvency practitioners of fiduciary duties to creditors when refusing application for further payment on account of costs. Ferris J considered the principles applicable to fixing the remuneration of receivers of the estate of Robert Maxwell appointed by the court under section 37 of the 1981 Act. Their total recoveries before their remuneration … Continue reading Mirror Group Newspapers Plc v Maxwell and Others (No 2): ChD 15 Jul 1997
The accused had been convicted. After exercising his right to silence, there were read to the court accounts of statements made by co-accused but without an opportunity for him to cross examine the witnesses. Held: Saunders had established the integral part of a fair trial played by the right of silence. The inability to cross … Continue reading Luca v Italy: ECHR 27 Feb 2001
(Cayman Islands) In the course of trading the company had given security to carry on its insurance business. On its insolvency, the administrators required the creditor to bring into hotchpot credit received in a foreign jurisdiction. It was said that having obtained an advantage over other unsecured creditors for the amount secured, the claiming creditor … Continue reading Cleaver, Bodden v Delta American Reinsurance Company: PC 1 Feb 2001
The claimant newspaper sought information as to the circumstances of the bankruptcy order made on the defendant, an Irish citizn said to have chosen the Eangland and Wales jurisdiction for his application. Judges: Baister Reg Citations: [2013] EWHC B12 (Ch), [2013] BPIR 1092 Links: Bailii Statutes: Insolvency Rules 1986 7.31A(6) Jurisdiction: England and Wales Insolvency … Continue reading Times Newspapers Ltd v McNamara: ChD 13 Aug 2013
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
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
four applications by the applicants, who are landlords of four properties that were let to companies that are now all in administration, by which applications the applicants apply for a. permission under Paragraph 43 of Schedule B1 to the Insolvency Act 1986 (‘IA’) to forfeit the leases of the properties; and b. a direction under … Continue reading Leisure (Norwich) II Ltd and Others v Luminar Lava Ignite Ltd: ChD 28 Mar 2012
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
