The defendant company was wound up after the receiver had been appointed and the liquidator declined to take over the defence to the action. The judge had refused an application for a third party costs order against the receivers.
Held: Had the defence been taken over by the liquidator the costs of the claimant would have ranked in priority to the claims of ordinary unsecured creditors, and it would not be just and equitable for a receiver to be able to defend the action without any liability for costs whatever the outcome. A receiver of a company taking over the defence of a case is liable in costs as a party, but is entitled to an indemnity.
Citations:
Times 02-May-1996, [1996] 2 BCLC 144
Cited by:
Cited – Dolphin Quays Developments Ltd v Mills and others CA 17-May-2007
The owner had agreed to sell a long lease of an apartment to the defendant. Part of the price was to be by way of set off of an existing debt, but ths was not set out in the contract. The claimant bought the land and the benfit of the contract from . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Northern Ireland, Costs
Updated: 17 May 2022; Ref: scu.77787