The directors of the company had organised a scheme for imports from China which was thought to be an unlawful abuse of the import licensing scheme. When presneted with an application by the Secretary of State for the winding up of the company, the company gave undertakings as to their future conduct. They then sought a declaration that certain operations would not be in breach of those undertakings, and appealed a refusal of a declaration, and of the undertakings, saying they had been given under effective compulsion.
Held: Generally a party giving an undertaking would not later be heard to speak against it, but in this case it was effectively an appeal against the judge’s decision not to wind the company up only if undertakings were given. This was a case in which the company could be allowed to appeal against its own undertakings. An application for declaratory relief by the company rather than winding up at the request of the Seceretary might have been a better approach in the first place. Had the company sought to establish the lawfulness or otherwise of their scheme they might not have ended up in this postion. The judge’s decision was correct.
Judges:
Lord Justice Mummery The Honourable Mr Justice Collins Lord Justice Scott Baker
Citations:
[2004] EWCA Civ 1066, Times 21-Sep-2004
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – The Secretary of State for Trade and Industry v Bell Davies Trading Ltd and KTA Limited ChD 16-Jan-2004
. .
Cited – In the Matter of the Supporting Link; In the Matter of the Insolvency Act 1986 ChD 19-Mar-2004
The Secretary of State sought the winding up of the company. Directors offered undertakings as to their future behaviour.
Held: The Court should be slow to accept such undertakings unless the Secretary consented. The company was solvent, but . .
Lists of cited by and citing cases may be incomplete.
Commercial, Company
Updated: 11 June 2022; Ref: scu.199593
