Category: Insolvency

Walker and Another v National Westminster Bank Plc and Another: ChD 25 Feb 2016

The claimants, the former administrators of Sunnyside Holiday Park Ltd sought an order that the unpaid balance of their remuneration and expenses is by para 99(3) of Sch B1 Insolvency Act 1986 charged on and payable out of a sum of pounds 62,646.06 said to be payable by the first defendant (‘the Bank’) to the company as redress in respect of potential mis-selling of certain interest rate swaps. Since they say more than that amount is due to them they seek a consequential order that the Bank should pay the whole redress payment direct to them.

Judges:

HHJ David Cooke

Citations:

[2016] EWHC 315 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Insolvency

Updated: 08 July 2022; Ref: scu.560325

Citigate Dewe Rogerson Ltd v Artaban Public Affairs Sprl: ChD 30 Jun 2009

The respondent had served a statutory demand on the applicant who now sought to restrain winding up proceedings. The demands were for unpaid invoices for services rendered and recoverable costs. Summary proceedings in Belgium had in part been stayed on the judge finding that complicated issues arose.

Judges:

Hodge QC J

Citations:

[2009] EWHC 1689 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Insolvency

Updated: 08 July 2022; Ref: scu.368631

In re the Leeds United Association Football Club: ChD 25 Jul 2007

the court considered whether liabilities for damages for wrongful dismissal of football players were debts provable in insolvency.
Held: When an administrator of a company adopted contracts of employment and the company later was found liable to pay damages for their wrongful dismisal, the damages payable did not have priority in the liquidation.

Judges:

Pumfrey J

Citations:

[2007] EWHC 1761 (Ch), Times 04-Sep-2007, [2007] ICR 1688, [2007] Bus LR 1560

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Insolvency, Employment

Updated: 08 July 2022; Ref: scu.259426

Unadkat and Co (Accountants) Ltd v Bhardwaj and Another: ChD 11 Oct 2006

Section 651 was broad enough to enable the court to order that the costs of having the dissolution of a company declared void be treated as an expense in the winding-up, notwithstanding the decision of the House of Lords in Re Toshoku Finance UK plc [2002] 1 WLR 671 that Rule 4.218 contained an exhaustive statement of liquidation expenses.

Judges:

Norris QC J

Citations:

[2006] EWHC 2785 (Ch)

Links:

Bailii

Statutes:

Companies Act 1985 651

Jurisdiction:

England and Wales

Citing:

Approved – Re Gosscott (Groundworks) Ltd 1988
The court had jurisdiction under section 51 to order that the costs of administration proceedings overtaken by a compulsory liquidation could be ordered to be treated as costs in the winding-up. . .
Cited – Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc HL 20-Feb-2002
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was . .

Cited by:

Cited – Irish Reel Productions Ltd v Capitol Films Ltd ChD 10-Feb-2010
The petitioner’s winding-up petition had been dismissed on the defendant company being put into administration. The petitioner asked for its costs to be paid as an administration expense payable in priority to the administrator’s expenses.
Lists of cited by and citing cases may be incomplete.

Company, Insolvency

Updated: 08 July 2022; Ref: scu.246060

Freakley and others v Centre Reinsurance International Company and others: HL 11 Oct 2006

When it became clear that the company would be financially overwhelmed by asbestos related claims, a voluntary scheme of arrangement was proposed under s425. The House was now asked whether the right to re-imbursement of the company’s lawyers after the appointment of the administrators had a statutory priority over other costs of the administration, the floating charge and the unsecured creditors of the company.
Held: The appeal succeeded. Such claims did not have the priority sought. The House approved Chadwick LJ’s statement in the CA, but that did not mean that anyone with authority to act on behalf of the company must be deemed to have derived his authority from the administrator. The company may, before the appointment of the administrator, have conferred on someone an authority to contract on its behalf which, in law or in practice, the administrator cannot revoke. This is such a case. Such contracts are made on behalf of the company but not on behalf of the administrator, and liabilities for such debts should not have priority over those of other creditors.

Judges:

Lord Hoffmann, Lord Hope of Craighead, Lord Phillips of Worth Matravers, Lord Walker of Gestingthorpe, Lord Brown of Eaton-Under-Heywood

Citations:

[2006] UKHL [2006] UKHL 45, Times 16-Oct-2006

Links:

Bailii

Statutes:

Companies Act 1985 425

Jurisdiction:

England and Wales

Citing:

At First Instance – Centre Reinsurance International Co and Another v Curzon Insurance Ltd ChD 12-Feb-2004
It was a necessary part of the system of statutory transfers of insurance obligations under the Act, that the rights should be transferred before exhaustion of any policy excess, and notwithstanding the insolvency. The rights (inchoate at this . .
Appeal from – Freakley and Curzon Insurance Ltd v Centre Reinsurance International Company and Another; similar CA 11-Feb-2005
Claims were made for personal injury caused by asbestos. The re-insurers sought declaratory relief against the head insurers, and the administrators of the insolvent company. The administrators sought declarations in turn. Curzon insured the company . .
Cited – Groom v Crocker 1939
An action by a client against a solicitor alleging negligence in the conduct of the client’s affairs, is an action for breach of contract. A solicitor is not entitled to payment of his costs by his client where his own negligence makes the work he . .
Cited – Cox v Bankside Members Agency Ltd and Others CA 16-May-1995
Successful Lloyds names were entitled to enforce their claims in the normal time sequence. The transfer of the rights of the insured against the insurer under section 1(1) the 1930 Act takes place on the event of insolvency, even if the insured’s . .
Cited – Powdrill and Another v Watson and Another HL 23-Mar-1995
A receiver of a companies assets, who employed former staff of the company, beyond an initial period of 14 days, becomes personally responsible for their employment contracts, and consequently becomes liable for making redundancy payments. The 1870 . .
Cited – In re Atlantic Computer Systems Plc CA 1992
The chargor was a company which arranged with the chargee, a funding bank, that it should purchase equipment and let it on hire purchase to the chargor with permission to sub-lease to end users. The chargor charged to the chargee by way of security . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Company, Legal Professions, Costs

Updated: 07 July 2022; Ref: scu.245332

The Scottish Lion Insurance Company Ltd, Re Sanction of A Scheme of Arrangement: SCS 8 Mar 2006

Sanction had been sought for a scheme of arrangement on the winding up of an insurance company. There were objections. The original scheme had been proposed under English law, and it would be inappropriate for a Scottish court to try to sanction such an arrangement. Payment of et fess of Engliah lawyers was sought.
Held: the court could not sanction the payment in the manner requested. The court set out how the Auditor must look at the English solicitor’s fee account.

Citations:

[2006] ScotCS CSOH – 37

Links:

Bailii

Statutes:

Companies Act 1985 425, Court of Session Act 1988, Interpretation Act 1978 811

Jurisdiction:

Scotland

Citing:

Cited – Wilson v Craig 1983
. .
Cited – Wimpey Construction (UK) Ltd v Martin Black and Co (Wire Ropes) Ltd 1988
The provisions of the Table of Fees under the Rules of Court were only applicable to Scottish solicitors. The court set out how fees incurred to solicitors practising outside Scotland are recovered in a Scottish taxation of expenses. In summary: 1. . .
Cited – Laing v Scottish Arts Council SCS 15-Dec-2000
A Lord Ordinary has power to correct an interlocutor to bring it into line with the court’s original intention. . .
Lists of cited by and citing cases may be incomplete.

Company, Insolvency, Costs

Updated: 07 July 2022; Ref: scu.238902

McGrath and Honey v McMahon and Others, Re HIH Casualty and General Insurance Ltd and others: CA 9 Jun 2006

The insurance company was to be wound up. It operated internationally but was registered in Australia. The Australian liquidator now sought an order for the transfer of assets held here to Australia.
Held: It was inevitable that cross border insolvency arrangements would cause difficulty, and particularly so for insurance companies. Such a transfer would prejudice non-insurer creditors here, without those creditors obtaining any counterbalancing benefit in the Australian liquidation. The order was refused.

Judges:

Chancellor of the High Court, Tuckey LJ, Carnwath LJ

Citations:

[2006] EWCA Civ 732, Times 06-Jul-2006, [2007] 1 All ER 177

Links:

Bailii

Statutes:

Insolvency Act 1986 426, Co-operation of Insolvency Courts (Designation of Relevant Countries and Territories) Order 1986

Jurisdiction:

England and Wales

Citing:

Cited – Re: BCCI (No.10) ChD 1997
The liquidators of BCCI in different jurisdictions had created a pooling agreement in the liquidation of the place of the company’s incorporation, namely Luxembourg to which all assets were to be remitted and in which all creditors were to share . .
Cited – Re Associated Travel Leisure and Services Ltd (in liquidation) ChD 1978
It is possible to give retrospective sanction for acts which require the sanction of the court where such sanction has not been obtained in advance, in this case to authorise the liquidators to pay the costs of the solicitors out of the estate of . .
Cited – Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc HL 20-Feb-2002
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was . .
Cited – Stocznia Gdanska SA v Latreefers Inc; In re Latrefeers Inc; Stocznia Gdanska SA v Latvian Shipping Co and others (No 2) CA 15-Mar-2000
Possible claims against a foreign company for misfeasance, or wrongful or fraudulent trading might be sufficient to justify proceedings here to wind up a foreign registered company. A second requirement is that some person within this jurisdiction . .
Cited – In re Lines Bros Ltd CA 1982
The liquidators in a creditors voluntary liquidation converted foreign currency debts of the company into Sterling at the rate of exchange prevailing at the date of the resolution to wind up. As a result of the depreciation of Sterling against the . .
Cited – Re International Tin Council ChD 1987
An order for the winding up of a foreign company operates universally, applies to all the foreign company’s assets and brings into play the full panoply of powers and duties under the Insolvency Act 1986 like any other winding up order. Millett J . .
Cited – England v Smith CA 8-Dec-1999
A liquidator of an Australian company sought damages from a ‘world-wide’ company Arthur Andersen’ and sought in particular to examine a partner in the UK. Examination was at first refused since an English court would not make a similar order. That . .
Cited – Hughes and others v Hannover Re Ruckversicherungs-Aktiengesellschaft CA 28-Jan-1997
An insolvency court answering an international call for assistance has the full range of remedies available to it. It may exercise ‘its own general jurisdiction and powers’ as well as the insolvency laws of England and the corresponding laws of the . .

Cited by:

Appeal from – McGrath and others v Riddell and others HL 9-Apr-2008
(Orse In Re HIH Casualty and General Insurance Ltd)
HIH, an Australian Insurance company, became insolvent. An order was sought for the collection and remission of it assets in England under a letter of request from the Australia Court.
Lists of cited by and citing cases may be incomplete.

Insolvency, International

Updated: 06 July 2022; Ref: scu.242443

In Re Cranley Mansions Ltd: ChD 23 Jun 1994

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 Wales

Insolvency

Updated: 06 July 2022; Ref: scu.81819

In the Matter of T and N Limited and others: ChD 12 Apr 2006

Judges:

The Honourable Mr Justice David Richards

Citations:

[2006] 3 All ER 755, [2006] 1 WLR 1792, [2006] EWHC 842 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Citing:

See Also – T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and others ChD 9-May-2003
T and N had exposure to asbestosis claims; these claims were insured by Lloyd’s but on terms that if payments were to be made, T and N should make certain reimbursements to Lloyd’s. T and N then insured with a captive company known as Curzon their . .
See Also – Re Tand N Ltd and Others ChD 21-Oct-2004
. .
See Also – Alexander Forbes Trustee Services Limited and Another v Jackson and Others ChD 2-Nov-2004
. .
See Also – Freakley, Gleave, Squires, T&N Limited v Centre Reinsurance International Company, Muenchener Rueckversicherungs-Gesellschaft, European International Reinsurance Company Limited, Curzon Insurance Limited ChD 26-Nov-2004
. .
See Also – T and N Ltd and Others, Re the Insolvency Act 1986 (Communications) ChD 8-Dec-2004
. .
See Also – In re T and N Ltd and Others, Re Insolvency Act 1986 ChD 14-Dec-2005
The court considered the case of Glenister and similar and said: ‘I accept the submission that these cases are not in point to the issue as regards future asbestos claims. There is no element of discretion as regards such claims. If the ingredients . .
See Also – T and N Ltd and Others, In the Matter of the Insolvency Act 1986 ChD 21-Dec-2005
. .
See Also – T and N Ltd and others v In the Matter of the Insolvency Act 1986 (Conflict of Law) ChD 21-Dec-2005
. .
Cited – Roerig v Valiant Trawlers Ltd CA 28-Jan-2002
The claimant who was Dutch, was a widow of a fisherman who had died at sea. The question on appeal was ‘in assessing damages for loss of dependency should benefits resulting from the loss be deducted from the damages?’ The claimant’s position under . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 06 July 2022; Ref: scu.241963

Bourne and 101 Othes v The Charit-Email Technology Partnership Llp: ChD 23 Jul 2009

Companies Court application under s. 130(2) of the Insolvency Act 1986 for permission to commence proceedings against the respondent, which is a limited liability partnership in liquidation. The application is in effect to join the respondent to proceedings which have already been commenced in the Commercial Court.

Judges:

Proudman J

Citations:

[2009] EWHC 1901 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986 130(2)

Jurisdiction:

England and Wales

Insolvency, Company

Updated: 05 July 2022; Ref: scu.361468

Goel v Pick: ChD 12 Apr 2006

The bankrupt had been entitled to a valuable vehicle registration mark ‘AMR 1T’. He sold it to a creditor, the claimant to clear that debt. The trustee now said that the purported assignment was ineffective.
Held: ‘VRMs are assigned to vehicles, not to registered owners or other individuals. The Secretary of State has power to assign or re-assign a VRM under Section 23(2) but a vehicle owner cannot require him to do so. The only relevant right which a vehicle owner has in relation to the transfer of a VRM from one vehicle to another is to seek the exercise in his favour of the Secretary of State’s power under Section 26. ‘ The right was not a chose in action capable of assignment. Had he been entitled to the VRM, any assignment would have been an unlawful preference.

Judges:

Sir Francis Ferris

Citations:

[2006] EWHC 833 (Ch), Times 28-Jun-2006

Links:

Bailii

Statutes:

Vehicle Excise and Registration Act 1994 23 26, Insolvency Act 1986 340(3)

Jurisdiction:

England and Wales

Citing:

Distinguished – In re Fry ChD 1946
A settlor executed a transfer of shares but failed to obtain the consent of the Treasury under the Regulations. The transferees argued that the testator had executed documents which were appropriate to the subject matter of the gift, namely the . .
Lists of cited by and citing cases may be incomplete.

Administrative, Insolvency, Road Traffic

Updated: 05 July 2022; Ref: scu.240438

Harlow District Council v Hall: CA 28 Feb 2006

The defendant had been subject to a possession order in respect of his secure tenancy. He was later adjudged bankrupt. He asserted that the bankruptcy specifically prevented other action to enforce the debt, and the suspended possession order was such an enforcement.
Held: Where the terms of suspension were expressed so as to indicate that the order for possession took effect on a specified date, but execution was suspended on terms, the secure tenancy ended on the specified date, even if the terms of suspension were complied with. The secure tenancy had already come to an end by the time of the bankruptcy. The 1985 Act made a specific distinction between suspending execution of a possession order, and postponing the date for possession. The maintenance of the possession order was not an action against the property of the defendant. The possession order was not vitiated by the bankruptcy.

Judges:

Lord Justice Chadwick, Chancellor, The Right Hon Sir Paul Kennedy

Citations:

[2006] 1 WLR 2116, [2006] EWCA Civ 156, Times 15-Mar-2006, [2006] BPIR 712, [2006] HLR 27, [2006] 2 P and CR 16

Links:

Bailii

Statutes:

Housing Act 1985 79, Insolvency Act 1986 285

Jurisdiction:

England and Wales

Citing:

Cited – Smith (a bankrupt) v Braintree District Council HL 1989
The House considered the effects of bankruptcy on the imposition of a committal to imprisonment in default of paying rates.
The purpose of section 285 is to preserve the estate of the bankrupt for the benefit of his unsecured creditors.
Cited – Ezekiel v Orakpo CA 1977
A lease had been forfeited for non payment of rent. The lessor then took proceedings for possession. The tenant claimed that the action was invalid because a receiving order had been made against him in the meantime.
Held: The Court rejected . .
Cited – Thompson v Elmbridge Borough Council CA 1987
The wife was the secure tenant of the premises, against whom the local authority landlord obtained a possession order on grounds of arrears of rent, not to be enforced on payment of a weekly sum off the arrears in addition to what the order . .
Cited – Burrows v Brent London Borough Council HL 31-Oct-1996
The authority had obtained a possession order from its secure tenant but then agreed to accept payments toward the arrears. The tenant applied for and was granted a declaration that she had on that agreement acquired a new tenancy. The authority . .

Cited by:

Cited – Bristol City Council v Hassan and Glastonbury CA 23-May-2006
The council had obtained possession orders for two properties from secure tenants, but the orders were suspended for so long as rent arrears were being discharged. The judges had understood that a date must appear on the possession order.
Cited – White v Knowsley Housing Trust and Another CA 2-May-2007
The tenant was an assured tenant. She fell into arrears of rent and a possession order was made, but suspended on terms. The court considered whether she continued to be an assured tenant, and could assert a right to buy the property as an assured . .
Cited – Jones v London Borough of Merton CA 16-Jun-2008
The court was asked ‘If a former secure tenant of a dwelling-house who has become a ‘tolerated trespasser’ in it decides to cease to occupy it, does his liability to pay mesne profits to his former landlord in respect of the dwelling-house cease . .
Cited – Knowsley Housing Trust v White; Honeygan-Green v London Borough of Islington; Porter v Shepherds Bush Housing Association HL 10-Dec-2008
The House considered situations where a secure or assured tenancy had been made subject to a suspended possession order and where despite the tenant failing to comply with the conditions, he had been allowed to continue in occupation.
Held: . .
Cited – Austin v Mayor and Burgesses of The London Borough of Southwark SC 23-Jun-2010
The appellant’s brother had been the secure tenant of the respondent Council which had in 1987 obtained an order for possession for rent arrears suspended on condition. The condition had not been complied with, but the brother had continued to live . .
Lists of cited by and citing cases may be incomplete.

Housing, Insolvency

Updated: 05 July 2022; Ref: scu.239849

Capital Bank Ad v Bulgaria: ECHR 24 Nov 2005

The courts of Bulgaria had decided that, on a winding-up petition, the question of the company’s insolvency was determined by a decision of the Central Bank of Bulgaria to revoke the company’s banking licence because it was insolvent. It had been held by the Bulgarian Supreme Court that the Central Bank’s decision to that effect was not one which could be reviewed by the courts.
Held: That decision was a breach of article 6(1) because it amounted to a surrender of jurisdiction by the courts which was not justified.

Citations:

49429/99, [2005] ECHR 752, (2007) 44 EHRR 48

Links:

Worldlii, Bailii

Statutes:

European Convention on Human Rights 6(1)

Cited by:

Cited – Burwell v Director of Public Prosecutions Admn 1-May-2009
The defendant appealed against the decision of the Magistrates to accept a prosecutor’s certificate as to compliance with time limits for commencing the prosecution. He argued that the police had all the evidence in their possession at an earlier . .
Lists of cited by and citing cases may be incomplete.

Human Rights, Company, Insolvency

Updated: 05 July 2022; Ref: scu.239551

Steele, Regina (on the Application of) v Birmingham City Council and The Secretary of State for Work and Pensions: CA 16 Dec 2005

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 lability until the Secretary of State made his determination.
Arden LJ said that the result would have been the same if at the date of the bankruptcy there had existed a separate liability at common law to repay the benefit overpaid, from which Mr Steele would have been released by his discharge from bankruptcy: ‘I do not consider that those liabilities should be treated as a single, continuing liability for the purposes of section 281(1) of the 1986 Act’.

Judges:

Sir Martin Nourse, Arden LJ

Citations:

[2006] 1 WLR 2380, [2005] EWCA Civ 1824, Times 26-Apr-2006, [2007] 1 All ER 73

Links:

Bailii

Statutes:

Social Security Administration Act 1992 71(1)

Jurisdiction:

England and Wales

Citing:

Applied – Glenister v Rowe CA 21-Apr-1999
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 . .
Appeal from – Steele, Regina (on the Application Of) v Birmingham City Council Admn 19-Apr-2005
Action to recover overpayment of benefits: ‘whether overpaid social security benefits constitute a ‘bankruptcy debt’, and, if so, whether the benefits authorities are entitled to continue to recover overpaid social security benefits by way of . .

Cited by:

Cited – Secretary of State for Work and Pensions v Balding CA 13-Dec-2007
The Secretary of State appealed a decision that its reclaim of overpayments of benefit were no longer possible after the discharge from insolvency of the claimant. The overpayment had been reclaimed before bankruptcy.
Held: At the time of the . .
Cited – Haine v Secretary of State for Business Enterprise and Regulatory Reform and Another; Day v Haine CA 11-Jun-2008
Former employees had obtained a protective award against the company for failing to consult on the impending redundancies and submitted proofs of debt to the liquidator who sought guidance from the court. The judge had held that since the Act . .
Cited – Haine v Secretary of State for Business Enterprise and Regulatory Reform and Another; Day v Haine CA 11-Jun-2008
Former employees had obtained a protective award against the company for failing to consult on the impending redundancies and submitted proofs of debt to the liquidator who sought guidance from the court. The judge had held that since the Act . .
Cited – Casson and Another v The Law Society Admn 20-Oct-2009
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 . .
Cited – McCartney and Unite The Union and Another v Nortel Networks UK Ltd (In Administration) ChD 22-Apr-2010
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 . .
Cited – In re Nortel Companies and Others SC 24-Jul-2013
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 . .
Lists of cited by and citing cases may be incomplete.

Benefits, Insolvency

Updated: 05 July 2022; Ref: scu.239233

Exeter City Council v Bairstow and others; Re Trident Fashions plc: CA 10 Mar 2006

Judges:

Rix, Maurice Kay LJJ, Sir Martin Nourse

Citations:

[2006] EWCA Civ 203, [2007] Bus LR 813

Links:

Bailii

Statutes:

The Insolvency Act 1986

Jurisdiction:

England and Wales

Cited by:

Cited – In re Nortel Companies and Others SC 24-Jul-2013
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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Rating

Updated: 05 July 2022; Ref: scu.238947

In re SSSL Realisations (2002) Ltd and Another; Squires and others v AIG Europe (UK) Ltd and Another: CA 18 Jan 2006

A creditor claiming an equity in a debt but who himself owed money to the debtor, could not pursue his claim without first contributing the sum due. A person could not take an aliquot share out of a fund without first contributing what he owed to the fund. That rule applied also in an administration where there was no set off between the two debts.
Chadwick LJ explained the rule in Cherry v Boultby, saying: ‘(1) The general rule applicable in the distribution of a fund is that a person cannot take an aliquot share out of the fund unless he first brings into the fund what he owes. Effect is given to the general rule, as a matter of accounting, by treating the fund as notionally increased by the amount of the contribution; determining the amount of the share by applying the appropriate proportion to the notionally increased fund; and distributing to the claimant the amount of the share (so determined) less the amount of the contribution.’

Judges:

Chadwick LJ

Citations:

Times 20-Jan-2006, [2006] EWCA Civ 7, [2006] BPIR 457, [2006] Ch 610, [2007] 1 BCLC 29, [2006] 2 WLR 1369, [2006] WTLR 705, [2006] BCC 233

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Applied – In re Melton, Milk v Towers CA 1918
In 1901 Richard Melton and another guaranteed to a Bank his son Arthur’s debts up to andpound;500. Richard died survived by his widow, Arthur and three daughters, giving his real estate to his widow for her life, with remainder to his four children . .
Explained – Cherry v Boultbee HL 22-Nov-1839
B died having made a will leaving a fund to pay income to A who owed her money but had been made bankrupt before the death. The debt to B remained unpaid.
Held: The liability to pay the debt and the right to receive the legacy had never tested . .
Not followed – In re Fenton CA 1931
A surety under a pre-insolvency guarantee, had not actually paid, and could not pay, being bankrupt with his assets vested in the trustee. The creditor was still owed the money and entitled to prove in the liquidation.
Held: One could not have . .
Cited – Midland Banking Co v Chambers 1869
. .
Cited – in Re Kayford Ltd ChD 1975
The court considered what was meant by the ‘certainty of words’ requirement necessary to create a trust. Megarry J said: ‘The sender may create a trust by using appropriate words when he sends the money (though I wonder how many do this, even if . .
Cited – Cherry v Boultbee CA 6-Apr-1838
TB was indebted to CB, his sister, in the sum of andpound;1878. He became bankrupt, and shortly after his bankruptcy C B made her will, giving legacies of andpound;500 and andpound;2,000 to her executors, in trust to pay the interest thereof (as to . .
Cited – In re Polly Peck International plc ChD 1996
It was argued, unsuccessfully, that a special purpose company incorporated in the Cayman Islands should be regarded as a single economic unit with the holding company, so as to eliminate ‘double dip’ as well as double dividend.
Held: There . .
Cited – Secretary of State for Trade and Industry v Frid HL 13-May-2004
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.

Cited by:

Cited – Brazzill and Others v Willoughby and Others CA 27-May-2010
The regulated bank Kaupthing Singer and Friedlander Ltd (KSF) was in financial difficulties. The Bank of England required KSF to credit to a trust account all future deposits. KSF later went into insolvency. Some deposits had been credited to the . .
Binding – Re Kaupthing Singer and Friedlander Ltd ChD 19-Feb-2010
. .
Cited – 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 by those creditors to the company, and whether the effect of those provisions was that, after the future debts were . .
Cited – In re Kaupthing Singer and Friedlander Ltd SC 19-Oct-2011
The bank had been put into administrative receivership, and the court was now asked as to how distributions were to be made, and in particular as to the application of the equitable rule in Cherry v Boultbee in the rule against double proof as it . .
Lists of cited by and citing cases may be incomplete.

Equity, Insolvency

Updated: 05 July 2022; Ref: scu.238731

Donohoe v Ingram: ChD 20 Jan 2006

The appellant had lived with the bankrupt for several years, and sought an order delayng sale of the house they had lived in until their children had grown up. She said the circumstances were exceptional.
Held: The fact that the delay might put at risk the payment of the creditors in full and with interest made it not sufficient to require them to wait. There was no human right violated.

Citations:

[2006] EWHC 282 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986 335A

Jurisdiction:

England and Wales

Citing:

Cited – Harman v Glencross 1986
On the divorce, the wife applied for a property transfer order in relation to the jointly owned matrimonial home. A creditor of her husband then obtained a charging order on H’s interest. She sought its varation. The creditor said that there was . .
Cited – In re Holliday CA 1981
A property adjustment order cannot be made against a bankrupt former spouse because the property of the bankrupt vests in the trustee in bankruptcy against whom an order under section 24 cannot be made. It was highly unlikely that postponement of . .
Cited – Claughton v Charalambous 1998
What is required of the court in applying section 335A(3) is, in effect, a value judgment. The court must look at all the circumstances and conclude whether or not they are exceptional. That process, he considered, left ‘very little scope for the . .
Cited – Re Citro, Lloyds Bank plc v Byrne and Byrne, Abbey National plc v Moss and others and Barclays Bank plc v Hendricks CA 1991
Trustees in bankruptcy of bankrupt husbands successfully appealed for the removal of provisos delaying the operation of orders for sale made under s30 in respect of each husband’s matrimonial home for the benefit of that husband’s wife who had been . .
Cited – Barca v Mears ChD 2005
While the categories of exceptional case which might allow delay in the sale of a bankrupt’s property are not circumscribed by the previous case-law, the only cases subsequent to In Re Citro in which orders for possession and sale have been withheld . .
Cited – London Borough of Harrow v Qazi HL 31-Jul-2003
The applicant had held a joint tenancy of the respondent. His partner gave notice and left, and the property was taken into possession. The claimant claimed restoration of his tenancy saying the order did not respect his right to a private life and . .
Cited – Price and others v Leeds City Council CA 16-Mar-2005
The defendant gypsies had moved their caravans onto land belonging to the respondents without planning permission. They appealed an order to leave saying that the order infringed their rights to respect for family life.
Held: There had been . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Trusts

Updated: 05 July 2022; Ref: scu.238692

Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1658): CA 9 Dec 2005

Judges:

Lord Justice Waller Lord Justice Jonathan Parker Mr Justice Moses

Citations:

[2005] EWCA Civ 1658

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See Also – Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1513) CA 9-Dec-2005
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 . .

Cited by:

See Also – Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1513) CA 9-Dec-2005
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 . .
Lists of cited by and citing cases may be incomplete.

Administrative, Agriculture, Insolvency

Updated: 05 July 2022; Ref: scu.238637

Newsam v Inland Revenue: CA 24 Sep 2002

Appeal against the refusal to grant an adjournment to the applicant today, and the subsequent decision of the judge to strike out his application for a recision of his Bankruptcy Order alternatively for annulment.

Citations:

[2002] EWCA Civ 1440

Links:

Bailii

Jurisdiction:

England and Wales

Insolvency

Updated: 05 July 2022; Ref: scu.217601

PS Independent Trustees Ltd and Another v China Shipping (UK) Agency Co Ltd and Another: ChD 27 Mar 2019

Judges:

Fancourt J

Citations:

[2019] EWHC 1222 (Ch), [2019] WLR(D) 305

Links:

Bailii, WLRD

Statutes:

Pensions Act 1995, Pension Protection Fund (Multi-Employer Schemes) (Modification) Regulations 2005, Occupational Pension Schemes (Employer Debt) Regulations 2005

Jurisdiction:

England and Wales

Financial Services, Insolvency

Updated: 05 July 2022; Ref: scu.638172

Thorniley and Another v HM Revenue and Customs and Another: ChD 5 Feb 2008

The court was asked whether the prescribed parts of the company’s net property (as defined in s.176A (6)) is available to satisfy any part of the debts due to a creditor which are secured by a floating charge in that creditor’s favour but cannot be paid out of the realisation of the net property due to a shortfall in the value of the security. In terms of the statute the question is whether ‘unsecured debts’ in s.176A(2) include the unsecured balance of the debts due to the floating charge holder or other secured creditor.

Judges:

Patten J

Citations:

[2008] EWHC 124 (Ch), [2008] 1 WLR 1516, [2008] BCC 213, [2008] Bus LR 1076, [2008] 1 BCLC 436

Links:

Bailii

Statutes:

Insolvency Act 1986 176A

Jurisdiction:

England and Wales

Insolvency

Updated: 04 July 2022; Ref: scu.264133

Cabvision Ltd v Feetum and others: CA 20 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 of the 2002 Act Parliament intended to equate a power for a financier to appoint an administrative receiver with ‘step-in rights’.’ Accordingly the appointment had been invalid.

Judges:

Jonathan Parker LJ

Citations:

Times 02-Jan-2006, [2005] EWCA Civ 1601

Links:

Bailii

Statutes:

Insolvency Act 1986, Enterprise Act 2002, Limited Liability Partnerships Act 2000 14(1), Limited Liability Partnerships Regulations 2001 5

Jurisdiction:

England and Wales

Citing:

Cited – Foss v Harbottle 25-Mar-1843
Company alone may sue for legal wrong against it.
A bill was lodged by two of the proprietors of shares in a company incorporated by Act of Parliament, on their own and the other shareholders’ behalf. They claimed against three bankrupt directors, a proprietor, solicitor and architect charging them . .
Cited – Gouriet v Union of Post Office Workers HL 26-Jul-1977
The claimant sought an injunction to prevent the respondent Trades Union calling on its members to boycott mail to South Africa. The respondents challenged the ability of the court to make such an order.
Held: The wide wording of the statute . .
Cited – Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) CA 1982
A plaintiff shareholder cannot recover damages merely because the company in which he has an interest has suffered damage. He cannot recover a sum equal to the diminution in the market value of his shares, or equal to the likely diminution in . .
Cited – Meadows Indemnity Co Ltd v The Insurance Corporation of Ireland plc and Another CA 1989
A claim was made for declaratory relief.
Held: The Claimant, a re-insurer, did not have locus to claim a declaration that the main insurer could avoid the main contract of insurance, to which the Claimant was not a party. The court considered . .
Cited – Meadows Indemnity Co Ltd v The Insurance Corporation of Ireland plc and Another CA 1989
A claim was made for declaratory relief.
Held: The Claimant, a re-insurer, did not have locus to claim a declaration that the main insurer could avoid the main contract of insurance, to which the Claimant was not a party. The court considered . .
Cited – Meadows Indemnity Co Ltd v The Insurance Corporation of Ireland plc and Another CA 1989
A claim was made for declaratory relief.
Held: The Claimant, a re-insurer, did not have locus to claim a declaration that the main insurer could avoid the main contract of insurance, to which the Claimant was not a party. The court considered . .
Cited – In Re S (Hospital Patient: Court’s Jurisdiction) CA 6-Mar-1995
The carer of S sought a declaration that S’s wife and son were not entitled to remove him to Norway.
Held: The court may try an issue as to the patient’s care as between rival claimants as carers. It should not tightly restrict list of carers . .
Cited – Secretary of State for Trade and Industry v Jabble and Others CA 22-Jul-1997
The Secretary of State sought company director disqualification orders. The defendants challenged the administrative receivership, saying that the appointment of the administrative receiver was invalid, and hence that the conditions of section 6 . .
Cited – Re Kaytech International plc; Secretary of State for Trade and Industry v Kaczer and others CA 1999
Robert Walker LJ said that the expression ‘de facto director’ had been in use for a long time, and commented on the failure to distinguish in pleadings between pleas that someone was a shadow or a de facto director. The two different labels were not . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Company

Updated: 04 July 2022; Ref: scu.236565

In re T and N Ltd and Others, Re Insolvency Act 1986: ChD 14 Dec 2005

The court considered the case of Glenister and similar and said: ‘I accept the submission that these cases are not in point to the issue as regards future asbestos claims. There is no element of discretion as regards such claims. If the ingredients of the tort of negligence . . are established, the claimants are entitled to damages. They do not depend on an exercise of discretion by the court.’
Although there was no express reference in the 1986 legislation to non-provable liabilities, once all liabilities for which statutory provision has been made have been met by a liquidator, anyone with a non-provable claim would no longer be precluded from enforcing it by proceedings. Accordingly, a liquidator will in practice have to pay off non-statutory liabilities out of the company’s remaining assets before distributing to shareholders any surplus remaining after payment of provable debts and statutory interest.

Judges:

David Richards J

Citations:

[2005] EWHC 2870 (Ch), [2006] 1 WLR 1728, [2006] 3 All ER 697

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Citing:

See Also – T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and others ChD 9-May-2003
T and N had exposure to asbestosis claims; these claims were insured by Lloyd’s but on terms that if payments were to be made, T and N should make certain reimbursements to Lloyd’s. T and N then insured with a captive company known as Curzon their . .
See Also – Re Tand N Ltd and Others ChD 21-Oct-2004
. .
See Also – Alexander Forbes Trustee Services Limited and Another v Jackson and Others ChD 2-Nov-2004
. .
See Also – Freakley, Gleave, Squires, T&N Limited v Centre Reinsurance International Company, Muenchener Rueckversicherungs-Gesellschaft, European International Reinsurance Company Limited, Curzon Insurance Limited ChD 26-Nov-2004
. .
See Also – T and N Ltd and Others, Re the Insolvency Act 1986 (Communications) ChD 8-Dec-2004
. .
Cited – Glenister v Rowe CA 21-Apr-1999
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 . .
Cited – Re Great Orme Tramways Co 1934
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: . .

Cited by:

See Also – T and N Ltd and Others, In the Matter of the Insolvency Act 1986 ChD 21-Dec-2005
. .
See Also – T and N Ltd and others v In the Matter of the Insolvency Act 1986 (Conflict of Law) ChD 21-Dec-2005
. .
See Also – In the Matter of T and N Limited and others ChD 12-Apr-2006
. .
Cited – McCartney and Unite The Union and Another v Nortel Networks UK Ltd (In Administration) ChD 22-Apr-2010
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 . .
Cited – LB Holdings Intermediate 2 Ltd, The Joint Administrators of v Lehman Brothers International (Europe), The Joint Administrators of and Others SC 17-May-2017
In the course of the insolvent administration of the bank, substantial additional sums were received. Parties appealed against some orders made on the application to court for directions as to what was to be done with the surplus.
Held: The . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 04 July 2022; Ref: scu.236339

Morris and others v Bank of America and National Trust Savings Association and others: CA 25 Mar 2002

Citations:

[2002] EWCA Civ 425

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See Also – Morris and Others v Bank of America National Trust and Others CA 20-Jan-2000
The defendant applied to strike out the claimant’s statement of case as disclosing no reasonable cause of action. The points of claim ran to 228 paragraphs, and they said that they repeated matters covered in the evidence filed in support. On appeal . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 04 July 2022; Ref: scu.170092

City of Glasgow Bank Liquidation – (Rer’s Case) Alan Ker (Fyfe’s Trustee) v The Liquidators: HL 20 May 1879

Public Company – Winding-up – Circumstances from which Authority to Register inferred.
The name of a trustee under a marriage-contract was by the instructions of the agent to the trust entered along with the names of his co-trustees in the register of members of a joint-stock company. The trustee himself never by any formal writing accepted office, nor did he directly authorise his name to be placed upon the list of shareholders. He, however, shortly after the marriage signed as trustee a warrant authorising payment of the dividend, and he accepted in the same capacity the transfer of some railway stock belonging to the trust. On more than one occasion he expressed a wish to resign, but without actually resigning. On the dissolution of the marriage he sent a formal declinature of office, which was accepted and acted upon by the other trustees.
held ( aff. judgment of Court of Session) that in the circumstances as proved he had by his actings accepted the office of trustee, and had assented to the transfer of stock into his name, and that even if he had resigned the trusteeship afterwards, which he had not, the resignation was inoperative, as it had not been communicated to the bank.

Judges:

Lord Chancellor (Cairns), Lord Hatherley, Lord O’Hagan, Lord Selborne, and Lord Gordon

Citations:

[1879] UKHL 507, 16 SLR 507

Links:

Bailii

Jurisdiction:

Scotland

Insolvency, Company

Updated: 04 July 2022; Ref: scu.637961

Home Insurance Company, Re: ChD 10 Nov 2005

The parties sought approval of scheme of arrangement of the American company at issue, a company conducting mainly re-insurances. Detailed proposals were put to the court as to the recovery of sums due to the company and payment out to the claimants or appropriate sums by way of compromise. Some creditors opposed the proposal. A request was made that any approval be delayed pending the outcome of a related application to be heard in the US.
Held: The application was partisan, and there was nothing in their case against the sanctioning of the scheme, given that assurances were made that the US proceedings would not be prejudiced.

Judges:

Mann J

Citations:

[2005] EWHC 2485 (Ch)

Links:

Bailii

Statutes:

Companies Act 1985 425

Jurisdiction:

England and Wales

Citing:

Cited – In re British Aviation Insurance Company Ltd ChD 21-Jul-2005
Complaint was made that the turn-out at the meeting to approve the proposed scheme of arrangement was about 15% representing just over half in value of the total claims, judged in each case by reference to ‘actual or pending’ claims. Counsel for the . .
Lists of cited by and citing cases may be incomplete.

Company, Insolvency

Updated: 04 July 2022; Ref: scu.234715

In re GHE Realisations Ltd (In Administration): ChD 4 Nov 2005

The administrators having made a distribution, concluded that no further assets would be recovered and sought directions from the court to allow them to withdraw and close the administration.
Held: The court had power to make the order requested which would lead to the dissolution of the company. The test was expressed in the present tense – what were the considered assets as understood by the administrators at the time they posed the question.

Citations:

[2005] EWHC 2400 (Ch), Times 11-Nov-2005

Links:

Bailii

Statutes:

Insolvency Act 1986 SB1 p65(3)

Jurisdiction:

England and Wales

Citing:

Comments disapproved – In re Ballast plc (in Administration) and Others ChD 21-Oct-2004
The administrator sought to move direct from an administration to insolvency proceedings without first closing the administration by a court order.
Held: The 2002 was intended to allow such a procedure. . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 04 July 2022; Ref: scu.234714

Coulter v Chief Constable of Dorset Police: CA 13 Jul 2005

An appeal was made against an order refusing to set aside a second statutory demand. The demand was to enforce payment of an order for costs made in proceedings between the parties. The first statutory demand had been upheld, and the judge found that that this application was based on the grounds already rejected on the first demand.
Held: Circumstances had changed, and there was a possibility that the earlier costs order might be vacated. In such circumstances there was no point in the court deciding the issue presented to it. Earlier costs orders were set aside.

Judges:

Waller, Chadwick, Carnwath LJJ

Citations:

[2005] EWCA Civ 1113, [2005] 1 WLR 130

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See Also – Coulter v Chief Constable of Dorset Police ChD 12-Dec-2003
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 . .
See Also – Coulter v Chief Constable of Dorset Police CA 8-Oct-2004
The appellant had failed in his action against the police and been ordered to pay the costs. A statutory demand was issued in the name of the respondent, but as the new chief constable had no deed of assignment, he was only equitable assignee.
Cited – Turner v Royal Bank of Scotland CA 2000
The court was asked whether a debtor could pursue at the hearing of the bankruptcy petition a challenge to the petition debt on grounds which had already failed on an earlier application to set aside the statutory demand. . .
Cited – Atherton v Ogunlende and Another CA 20-Nov-2001
It would be a waste of court time and the parties’ money to allow a debtor, who had already failed on his application to set aside a statutory demand, to advance the same arguments by way of challenge to the petition debt on the hearing of the . .
Cited – Brillouet v Hachette Magazines Ltd 1996
A party should not be allowed to put an argument again which had been lost at an earlier stage merely because he felt he had found a better way of putting the argument. . .
Cited – Barnes v Whitehead ChD 2004
Where a party seeks to run an argument which might have been made earlier, it will inquire why those arguments were not run at the time when they could and should have been run. However, a failure to apply to set aside the statutory demand does not . .
Cited – Henderson v Henderson 20-Jul-1843
Abuse of Process and Re-litigation
The court set down the principles to be applied in abuse of process cases, where a matter was raised again which should have been dealt with in earlier proceedings.
Sir James Wigram VC said: ‘In trying this question I believe I state the rule . .
Cited – West Bromwich Building Society v Crammer CA 2002
Referring to Turner: ‘Those observations were plainly obiter in that case; but will be given, no doubt, the weight which they deserve. But they do not have the effect of depriving a court exercising its functions under s 271 of the duty to decide . .
Cited – Heath v Tang, Stevens v Peacock CA 11-Aug-1993
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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 04 July 2022; Ref: scu.230009

Krasner v McMath; in Re Huddersfield Fine Worsteds Limited: CA 12 Aug 2005

The administrators had adopted the contracts of certain employees, who now claimed that the protective awards should have priority to the expenses of the administration.
Held: The payments did fall within paragraph 99(5) and do not have super-priority.
Responsibility for protective awards on insolvency.

Judges:

Lord Justice Clarke Lord Justice Jacob Lord Justice Neuberger

Citations:

[2005] EWCA Civ 1072, Times 26-Sep-2005, [2006] 2 BCLC 160

Links:

Bailii

Statutes:

Insolvency Act 1986 Sch B1, Trade Union Labour Relations (Consolidation) Act 1992 189

Jurisdiction:

England and Wales

Citing:

Cited – In Re Hartlebury Printers Ltd 1992
Insolvency, at least per se, does not amount to a special circumstance exempting an employer from consulting employees on redundancy. Morritt J noted the distinction in the Directive between contemplated and projected redundancies and section 99 to . .
Appeal from – Krasner (Administrator of Globe Worsted Company Ltd and Huddersfield Fine Worsteds Ltd.) v Mcmath (Representing All Employees of the Companies) ChD 27-Jul-2005
. .
Cited – Powdrill and Another v Watson and Another HL 23-Mar-1995
A receiver of a companies assets, who employed former staff of the company, beyond an initial period of 14 days, becomes personally responsible for their employment contracts, and consequently becomes liable for making redundancy payments. The 1870 . .
Cited – Delaney v Staples HL 15-Apr-1992
The claimant had been dismissed but had been given no payment in lieu of notice. She claimed to the Industrial Tribunal that this was an unlawful deduction from her wages and that therefore the Industrial Tribunal had jurisdiction.
Held: The . .

Cited by:

Cited – McCartney and Unite The Union and Another v Nortel Networks UK Ltd (In Administration) ChD 22-Apr-2010
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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Employment

Updated: 03 July 2022; Ref: scu.229333

In re Griffin Hotel Co Ltd: ChD 1941

A company owned hotels, in Leeds and in Buxton. In 1937, it issued a debenture creating a floating charge over all its assets to secure andpound;45,000. In December 1938, an order was made in a debenture holder’s action, appointing a receiver over all the company’s property except the Buxton Hotel which was subject to a prior mortgage and of no value to the debenture holder. The company continued to operate the Buxton Hotel. In March 1939, an order was made for the winding up of the company. In the meantime, in operating the Buxton Hotel, the company incurred certain preferential debts within the meaning of s. 264 of the 1929 Act. One issues was whether those preferential debts were payable in priority to the plaintiff (the debenture holder) from the proceeds of the assets over which the receiver was appointed in 1938. There were no other assets out of which the preferential debts could be discharged. The first issue related to the relationship between sections 78 and 264(4)(b) which is not of relevance. The second issue is the same construction issue arising in these proceedings, albeit in relation to s. 264(4)(b), providing: ‘The foregoing [preferential] debts shall: (a) rank equally among themselves and be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions; and (b) in the case of a company registered in England, so far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge.’
Held: The court construed the expression ‘floating charge’ in the statute to mean a charge which was still floating at the date of the winding up.
Bennett J, having expressed his conclusion that s. 78 of the 1929 Act did not exclude or prevent the operation of sub-section 4(b) of s. 264, continued: ‘But that conclusion on the construction and effect of the statutory provisions leaves open the question whether in the supposed events there is, when the winding up take place, any floating charge or any property subject to that charge. In my judgment, sub-s. 4(b) of s. 264 only operates if at the moment of the winding up there is still a floating charge created by the company and it only gives the preferential creditors a priority over the claims of the debenture holders in any property which at that moment of time is comprised in or subject to that charge.
In the present case, the debenture held by the plaintiffs contained a floating charge over all the borrowers’ property. On December 9, 1938, that charge ceased to float on the property and assets of which Mr. Veale was appointed receiver. The charge on that day crystallised and became fixed on that property and those assets. It remained a floating charge on any other assets of the borrowers. At the moment before the winding up order was made, the charge still floated over any other assets of the borrowers and over those other assets, if any, the preferential creditors as defined by sub-s. I of s. 264 have a priority over the claims of the plaintiffs by force of the provisions of sub-s.4 of the same section. This seems to be a corollary of the proposition established by In re Lewis Merthyr Consolidated Collieries, Ld. (I) [1929] 1 Ch. 498.’

Judges:

Bennett J

Citations:

[1941] Ch 129

Statutes:

Companies Act 1929 78 264

Jurisdiction:

England and Wales

Cited by:

Cited – 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 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 . .
Lists of cited by and citing cases may be incomplete.

Company, Insolvency

Updated: 03 July 2022; Ref: scu.194251

In re Calgary and Edmonton Land Co Ltd (In liquidation): 1975

Creditors in a liquidation have only a right to have the assets administered by the liquidator in accordance with the provisions of the Insolvency Act 1986. The trust applies only to the company’s property. It does not affect the proprietary interests of others.

Citations:

[1975] 1 WLR 355

Jurisdiction:

England and Wales

Cited by:

Cited – 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 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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 03 July 2022; Ref: scu.194249

Barsotti and others C-19/01: ECJ 4 Mar 2004

(Judgment) Social policy – Protection of employees in the event of their employer’s insolvency – Directive 80/987/EEC – Limitation of liability of the guarantee institutions – Ceiling to the liability – Part payments by the employer – Social objective of the directive

Citations:

C-19/01, [2004] EUECJ C-19/01

Links:

Bailii

Jurisdiction:

European

Employment, Insolvency

Updated: 03 July 2022; Ref: scu.194388

Dean and Dean (A Firm) v Angel Airlines Sa and others: ChD 11 Mar 2009

The claimant solicitors sought to have set aside a statutory demand. They had held sums, but on presentation of his bill, the clients terminated the retainer, and claimed it improper for him to have transferred a substantial sum on account without their prior approval. Whilst the final bill was being taxed the client went into receivership. The bill was very much reduced, and the solicitor was ordered to pay the costs of the taxation. The solicitor then claimed that the new solicitor’s appointment was ineffective, and he had no liability to pay their costs. Increased costs orders were made, and the liquidator issued statutory demands against the partners. Their practices were intervened in. The claimants sought to renew their claims for damages for the breach of authority. There had been various changes in the partnership and the court considered which partners might be liable under which orders.
Held: As to one partner the statutory demand was withdrawn since he was not a partner at the appropriate time. As to the others the statutory demand should not be set aside.

Judges:

Patten J

Citations:

[2009] EWHC 447 (Ch)

Links:

Bailii

Statutes:

Partnership Act 1890 14

Jurisdiction:

England and Wales

Legal Professions, Insolvency

Updated: 01 July 2022; Ref: scu.317961

The Secretary of State for Trade and Industry v Jonkler and Another: ChD 10 Feb 2006

The applicant had given an undertaking to the court to secure discontinuance of company director disqualification procedings. He now sought a variation of the undertaking.
Held: The claimant had given an undertaking, but in the light of new evidence proceedings against her her co-directors had been discontinued. A variation should be allowed only where some circumstance arose which was not known to the parties at the time of the undertaking. The court must distinguish between the extent of its power to allow a variation, and the conditions under which a variation should be allowed.

Judges:

Hart J

Citations:

[2006] EWHC 135 (Ch), Times 03-Mar-2006

Links:

Bailii

Statutes:

Company Directors Disqualificatin Act 1985

Jurisdiction:

England and Wales

Citing:

Cited – Secretary of State for Trade and Industry v Eastaway; Re Blackspur Group (No 3), Secretary of State for Trade and Industry v Davies and Others (No 2) CA 13-Sep-2001
. .
Cited – In Re Carecraft Construction Co Ltd ChD 13-Oct-1993
A court must hear evidence before disqualifying directors. Though the Director and the Secretary of State might reach an agreement as to what should happen, they could not displace the court in deciding what order should be made, and in making that . .
Cited – Secretary of State for Trade and Industry v Rogers 1996
If fraud is to be alleged against a company director in disqualification proceedings, the allegation must be distinctly alleged and as distinctly proved. . .
Cited – Pepper (Inspector of Taxes) v Hart HL 26-Nov-1992
Reference to Parliamentary Papers behind Statute
The inspector sought to tax the benefits in kind received by teachers at a private school in having their children educated at the school for free. Having agreed this was a taxable emolument, it was argued as to whether the taxable benefit was the . .
Cited – Di Placito v Slater and others CA 19-Dec-2003
The parties had earlier compromised their dispute, with the claimant undertaking not to lodge any further claim unless he did so within a certain time. They now sought to commence action.
Held: When considering whether to discharge such an . .
Cited – Patrick Queen v Secretary of State for Trade and Industry SCS 6-Dec-2001
. .
Cited – Secretary of State for Trade and Industry v Collins and others CA 13-Jan-2000
A disqualified director applied for consent to act in the management of a company before his disqualification had expired. He succeeded, and the judge made no award for costs. On appeal by the Secretary of State it was held that the lifting of the . .
Cited – Mond and Another v Hammond Suddards and Another CA 15-Jun-1999
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 . .
Cited – Purcell v F C Trigell Ltd CA 1971
The court will not interfere with an existing consent order, save in circumstances in which it could interfere with a contract as a matter of substantive law. A consent order derives its authority from the contract made between the parties. . .
Cited – Eronat v Tabbah CA 10-Jul-2002
. .
Cited – S v S (Ancillary Relief: Consent Order) FD 4-Mar-2002
An order for ancillary relief had been made by consent. Later the House of Lords issued a judgment which changed the law which had been the basis of the decision to accept the settlement. The wife now sought to set aside the consent order, and . .
Cited – Chanel Ltd v F W Woolworth and Co CA 1981
On an interlocutory application by the claimant for relief in respect of alleged infringement of trademark and passing off the defendant gave undertakings until judgment or further order. Shortly thereafter the Court of Appeal in another case upheld . .
Cited – Eronat v Tabbah CA 10-Jul-2002
. .
Cited – Ropac Ltd v Inntrepreneur Pub Co and Another ChD 7-Jun-2000
There had been a consent order in the terms of an unless order giving the landlord an order for possession unless the tenant paid sums by a certain date, time being of the essence. The order was not complied with and the tenant applied for a . .
Cited – In re a Debtor (No 32 SD 1991) ChD 1993
. .
Lists of cited by and citing cases may be incomplete.

Company, Insolvency

Updated: 01 July 2022; Ref: scu.238403

Re Case of Taff Wells Ltd: 1992

The court considered whether the liquidation of a company stopped time running for insolvency purposes: ‘One may conclude that the effect of an order to wind up is to convert the contractual rights of the creditors into proprietary rights under a trust. It may still be necessary and appropriate for a creditor to bring an action after the liquidation for the purpose of elucidating his original contractual rights, for which purpose he would have to get leave; but it is not necessary for the purpose of stopping time running against him in relation to his erstwhile contractual rights.’

Judges:

HH Judge Baker QC

Citations:

[1992] BCLC 11

Jurisdiction:

England and Wales

Cited by:

Cited – Ultraframe (UK) Ltd v Fielding and others ChD 27-Jul-2005
The parties had engaged in a bitter 95 day trial in which allegations of forgery, theft, false accounting, blackmail and arson. A company owning patents and other rights had become insolvent, and the real concern was the destination and ownership of . .
Lists of cited by and citing cases may be incomplete.

Limitation, Insolvency

Updated: 01 July 2022; Ref: scu.230354

Krasner (Administrator of Globe Worsted Company Ltd and Huddersfield Fine Worsteds Ltd.) v Mcmath (Representing All Employees of the Companies): ChD 27 Jul 2005

Judges:

Peter Smith J

Citations:

[2005] EWHC 1682 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal from – Krasner v McMath; in Re Huddersfield Fine Worsteds Limited CA 12-Aug-2005
The administrators had adopted the contracts of certain employees, who now claimed that the protective awards should have priority to the expenses of the administration.
Held: The payments did fall within paragraph 99(5) and do not have . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Employment

Updated: 01 July 2022; Ref: scu.229037

Shierson v Vlieland-Boddy: CA 27 Jul 2005

The debtor claimed that he could not be served with an insolvency petition, being resident in Spain.
Held: The court was to look to where was the centre of his main interests to determine whether to open insolvency proceedings. On that basis, the appeal by the trustee was allowed and the bankruptcy order was restored. The court should have regard not only to what the debtor was doing, but also to what he would be perceived to be doing by an objective observer, and where such an observer would think his centre of interests lay.
By reference to article 2(h) and the commentary of the Virgos-Schmit report, that the carrying on of the activity of letting and managing a multi-let unit at a business park was an ‘establishment’ for the purposes of the Regulation.

Judges:

Chadwick LJ, Longmore LJ, Sir Martin Nourse

Citations:

[2005] EWCA Civ 974, Times 26-Sep-2005, [2005] 1 WLR 3966

Links:

Bailii

Statutes:

Council Regulation (EC) (No 1346/2000) 3.1 3.2

Jurisdiction:

England and Wales

Citing:

Cited – Skjevesland v Geveran Trading Company Limited ChD 2002
The registrar had decided that the debtor’s centre of main interests was situated in Switzerland.
Held: Article 3 of Regulation (EC) 1346/2000 did not displace the bankruptcy jurisdiction which (as the registrar found) the High Court would . .
Cited – In re Daisytek-ISA Ltd and others 2004
The court was asked where the centre of main interests of French and German subsidiaries of ISA International plc was situated for the purposes of article 3.1 of the Regulation.
Held: After referring to recital (13) to the Regulation, to the . .
Cited – In re Ci4net.com Inc and another ChD 20-May-2005
It was necessary to decide whether two companies, Ci4net.com Inc and DBP Holdings Limited, had centres of main interests in London.
Held: The court addressed the issue of timing: ‘There were differences between counsel as to the approach which . .

Cited by:

Cited – Olympic Airlines Sa Pension and Life Insurance Scheme v Olympic Airlines Sa CA 6-Jun-2013
The court considered the the jurisdiction under EU law to commence a secondary winding-up in England of a company whose main liquidation is taking place in Greece. That depended upon whether the company, registered in Greece had a sufficient . .
Lists of cited by and citing cases may be incomplete.

Insolvency, European

Updated: 01 July 2022; Ref: scu.229030

Brenner v Revenue and Customs; In re Modern Jet Support Centre Ltd: ChD 21 Jul 2005

The court was asked whether the process of distraint against goods for unpaid tax under section 61 of the 1970 Act is an ‘execution’ within section 183 of the 1986 Act which applies where a creditor has issued, but not completed, execution against the goods or land of a company which is subsequently wound up.
Held: Where there had been no change in the underlying policy, a court was able to look, with care, at cases prior to a statute consolidating earlier provisions. Parliament here had not taken an opportunity to move from the earlier position. ‘There is no repugnancy between the provisions of section 61 TMA 1970 and the provisions of IA 1986 which I have considered, in particular sections 107 and 175. The word ‘execution’ in section 183 IA 1986 does not include a distress under section 61 TMA 1970.’

Judges:

Warren J

Citations:

[2005] EWHC 1611 (Ch), Times 19-Sep-2005

Links:

Bailii

Statutes:

Taxes Management Act 1970 61, Insolvency Act 1986 183

Jurisdiction:

England and Wales

Citing:

Cited – Hutchins v Chambers 1758
Distress under the Poor Relief Act 1601 and other like Acts is only partly analogous to common law distress but is much more analogous to common execution; such distress was described as in the nature of an execution. . .
Cited – Potts v Hickman HL 1941
The Plaintiff was the landlord of certain premises and had as at 29 September 1938, a right to distrain for unpaid rent in the sum of andpound;15 11s. However, on 20 September, the defendant, as bailiff for Wolverhampton Corporation, had levied on . .
Cited – In re Overseas Aviation Engineering(GB) Ltd CA 1963
A charging order on land under section 35(1) of the 1956 Act obtained to enforce a judgment debt was a form of ‘execution’ for the purposes of section 325 CA 1948. Lord Denning MR: ‘The word ‘execution’ is not defined in the Act. It is, of course, a . .
Cited – Herbert Berry Associates Ltd v Inland Revenue Commissioners ChD 1976
The collector of taxes distrained on the goods of the company under section 61 TMA 1970 for unpaid taxes and the company entered into a walking possession agreement. Before the collector had sold the goods, and completed the distress, the company . .
Cited – Herbert Berry Associates Ltd v Inland Revenue Commissioners; re Herbert BerrySP, Regina (on The Application of) v The Lord Chancellor HL 1977
The principle to the effect that the court should exercise its discretion to restrain a distress levied by a landlord before the commencement of a winding-up only where there were special circumstances rendering it inequitable that he should be . .
Cited – In re a Debtor (No 784 of 1991) 1992
The court considered how earlier cases were to be considered given that the 1986 Act was intended to be a complete and self contained code: ‘Those authorities show that, in approaching the language of the 1986 Act, one must pay particular attention . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Taxes Management

Updated: 01 July 2022; Ref: scu.228966

In re British Aviation Insurance Company Ltd: ChD 21 Jul 2005

Complaint was made that the turn-out at the meeting to approve the proposed scheme of arrangement was about 15% representing just over half in value of the total claims, judged in each case by reference to ‘actual or pending’ claims. Counsel for the company pointed out that the relatively low number was not unusual by the standards of schemes of arrangement.
Held: Lewison J said that the turn-out was not in itself a valid reason for refusing to endorse the majority view.

Judges:

Lewison J

Citations:

[2005] EWHC 1621 (Ch), [2006] BCC 14

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Cited – Home Insurance Company, Re ChD 10-Nov-2005
The parties sought approval of scheme of arrangement of the American company at issue, a company conducting mainly re-insurances. Detailed proposals were put to the court as to the recovery of sums due to the company and payment out to the claimants . .
Cited – Cape Plc and Others, Re Companies Act 1985 ChD 16-Jun-2006
The court was asked to sanction a scheme of arrangements, and particularly to approve a proposed scheme which itself contained the power to make amendments to the scheme.
Held: The court did have power to sanction such a proposed scheme of . .
Lists of cited by and citing cases may be incomplete.

Insurance, Company, Insolvency

Updated: 01 July 2022; Ref: scu.228951

Pattison v Clarksons and Steele: CA 16 Oct 2002

The claimant had instructed the defendant firm of solicitors to claim in copyright. They failed to notify the defendants in that action that he was legally aided. When the action was dismissed, the solicitors were ordered to pay costs. Subsequently the claimant had begun several actions against the defendants. Each had been lost, with orders for costs against him, totalling pounds 28,000, and bankruptcy proceedings commenced. A further action was stayed pending payment.
Held: The bankruptcy order made him incompetent to pursue these proceedings. There were no grounds to permit an appeal to go ahead.

Judges:

Mantell J

Citations:

[2002] EWCA Civ 1551

Links:

Bailii

Jurisdiction:

England and Wales

Insolvency, Litigation Practice

Updated: 01 July 2022; Ref: scu.217727

Re a debtor No 833 of 1993 and No 834 of 1993: ChD 1994

The court allowed a solicitor’s statutory demand to lie despite the debtors’ argument based on the right to taxation of the underlying bill. ‘Solicitors would be placed in an intolerable position if no statutory demand could be served as long as it was open to the client to apply for taxation.’ and, for completeness: ‘there is nothing to prevent [the debtors] from now applying for leave to tax the bill. If leave is given and the bill is taxed down, they will be entitled to repayment of an excess over the amount of the taxed bill which they have paid. What they cannot do is to defer paying any substantial part of the bill until the process of applying for leave and, if leave is granted, taxing the bill as being completed.’

Judges:

Vinelott J

Citations:

[1994] NPC 82

Jurisdiction:

England and Wales

Cited by:

Cited – Truex v Toll ChD 6-Mar-2009
The bankrupt appealed against an order in bankruptcy made against her on application by her former solicitors in respect of their unpaid costs. The bankrupt said that since the bill was yet untaxed, it might be altered and could not base a statutory . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Legal Professions

Updated: 01 July 2022; Ref: scu.317858

Aiglon Limited and another v Gau Shan Co Limited: ChD 1993

The defendants had obtained world-wide Mareva injunctions in support of substantive proceedings by way of their counterclaim to enforce an arbitration award against the plaintiffs under section 26 against two companies, Aiglon Limited and L’Aiglon SA (a Swiss company).
Held: There was no basis under section 26 for enforcement of the arbitration award against SA, but the question arose whether any other basis for a freezing order against SA existed, having regard to the fact that the defendants’ only contractual entitlement was against Limited. There were two bases. It was well arguable that a transfer of assets from Limited to SA fell foul of section 423 of the Insolvency Act 1986, thereby giving the defendants a direct cause of action against SA as victims of the transaction. Second, since an administrator or liquidator of Limited (if appointed) could apply to set aside the relevant transaction under section 238 of the Insolvency Act 1986 with the consequence that SA would hold the assets transferred as trustee for Limited, the case fell within the Chabra jurisdiction since it was arguable that SA held assets beneficially belonging to Limited, against which the defendants had a good cause of action. It mattered not that Limited’s arguable beneficial interest in assets transferred to SA was contingent both upon the appointment of an administrator or liquidator of Limited, and the successful pursuit by the officeholder of a claim under section 238.

Judges:

Hirst J

Citations:

[1993] BCLC 1321

Statutes:

Arbitration Act 1950 26, Insolvency Act 1986 423

Jurisdiction:

England and Wales

Cited by:

Cited – HM Revenue and Customs v Egleton and others ChD 19-Sep-2006
The claimants had applied for the winding up of a company for very substantial sums of VAT due to it. Anticipating that hearing, it now sought restraining orders against the director defendants, alleging that there had been a carousel or missing . .
Lists of cited by and citing cases may be incomplete.

Litigation Practice, Arbitration, Insolvency

Updated: 01 July 2022; Ref: scu.245162

Whyte v Northern Heritable Securities Investment Co and Others: HL 16 Jun 1891

Bankruptcy – Nobile Officium – Discharge of Trustee and Bankrupt – Appointment of New Trustee.
A bankrupt was discharged without composition, and his trustee was also discharged. Certain creditors presented a petition for a remit to the Lord Ordinary on the Bills to order a meeting of creditors for the election of a new trustee, as certain assets had not been ingathered, and the petitioners’ debts had not been paid in full. The bankrupt objected that the trustee had abandoned all claim to these assets.
The First Division repelled the objection and granted the petition, and the House of Lords affirmed this decision and dismissed the appeal.

Judges:

Earl of Selborne, and Lords Watson, Bramwell, and Morris

Citations:

[1891] UKHL 950, 28 SLR 950

Links:

Bailii

Jurisdiction:

Scotland

Insolvency

Updated: 30 June 2022; Ref: scu.636777

Peri v Engel: ChD 29 Apr 2002

A third party agreed to pay the bankrupt’s debts. He applied for the bankruptcy to be annulled, and for the trustee’s costs to be assessed and fixed at a reasonable level under section 303. The trustee appealed the costs order saying that the bankrupt had not been prejudiced by his actions.
Held: The appeal was dismissed since the trustees costs had to be fixed in order to clear the action, and whether or not he had acted to prejudice the bankrupt. However the only statutory footing was section 363, and the order was amended accordingly.

Judges:

Ferris J

Citations:

Gazette 07-Jun-2002, [2002] EWHC 799 (Ch), [2002] BPIR 961

Links:

Bailii

Statutes:

Insolvency Act 1986 303 363

Jurisdiction:

England and Wales

Cited by:

Cited – Halabi v London Borough of Camden ChD 14-Feb-2008
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 . .
Cited – Brook v Reed CA 25-Mar-2011
The court was asked ‘What relation should the costs and remuneration bear to the circumstances, and in particular the size, of the bankruptcy?’ The bankrupt had considered that the costs first awarded to the trustee in bankruptcy and the trustee’s . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Costs

Updated: 30 June 2022; Ref: scu.346764

Nygate and Another v E Squared Ltd: ChD 16 Mar 2006

Where administrators of a company have followed the statutory procedure for converting an administration into a creditors voluntary liquidation, but the notice sent by them to the registrar of companies is not registered by him until after the date on which the administration has ended, is the process nonetheless effective to put the company into liquidation?

Judges:

David Richards J

Citations:

[2006] EWHC 532 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Insolvency, Company

Updated: 30 June 2022; Ref: scu.239282

Beckenham Mc Ltd v Centralex Ltd and others: ChD 10 Jun 2004

Judges:

Hart J

Citations:

[2004] EWHC 1287 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986 423

Jurisdiction:

England and Wales

Citing:

Cited – Halsall v Brizell ChD 1957
Land in Liverpool was sold in building plots. The vendors retained the roads and sewers and a promenade and sea wall. A separate deed of covenant of 1851 between the vendors and the owners of the plots which had by then been sold, recited that the . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 30 June 2022; Ref: scu.226168

Stubbs v Gonzales The Attorney General: PC 25 May 2005

(Bahamas) The applicant, an MP, had been bankrupted. The debt was paid, but he appealed refusal to have the order quashed, saying that the fact of bankruptcy threatened his position as MP.
Held: The court of appeal had declined jusridiction. They had been wrong to do so. The powers of the court to hear appeals in civil proceedings were phrased generally, and the list of orders against which an appeal could be made did not include an order in bankruptcy proceedings. The appeal should be allowed.

Judges:

Lord Hoffmann, Lord Scott of Foscote, Baroness Hale of Richmond

Citations:

[2005] UKPC 22

Links:

Bailii, PC, PC

Citing:

Cited – In re X Y, Ex parte Haes 1902
Bankruptcy proceedings are not ‘in any sense criminal’. . .
Lists of cited by and citing cases may be incomplete.

Commonwealth, Insolvency

Updated: 30 June 2022; Ref: scu.225483

Jacob and Another v UIC Insurance Company Ltd and Another: ChD 2 Nov 2006

Judges:

Peter Smith J

Citations:

[2006] EWHC 2717 (Ch), [2007] Bus LR 568, [2007] BPIR 494

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Cited – Brook v Reed CA 25-Mar-2011
The court was asked ‘What relation should the costs and remuneration bear to the circumstances, and in particular the size, of the bankruptcy?’ The bankrupt had considered that the costs first awarded to the trustee in bankruptcy and the trustee’s . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Costs

Updated: 30 June 2022; Ref: scu.245823

Regina v Muhamad: CACD 19 Jul 2002

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 gives rise – does not exist and may never come to exist at the time of the gambling or speculations.
Held: Under Article 7 of the ECHR, retrospectivity under section 362(1)(a) did not offend the principle of legal certainty or Article 7 (in relation to which it was held to be proportionate). There is nothing objectionable in principle with strict liability offences under Article 7 which required a different conclusion, than that the offence under section 362(1)(a) is one of strict liability.
Dyson LJ said: The offences where no mental element is specified, for the most part, attract considerably lower maximum sentences than those where a mental element is specified.’

Judges:

Lord Justice Dyson, Mr Justice Silber and Judge Goddard, QC

Citations:

Times 16-Aug-2002, [2002] EWCA Crim 1856, [2003] QB 1031, [2003] 2 WLR 1050

Links:

Bailii

Statutes:

Insolvency Act 1986 362(1)(a), European Convention on Human Rights 10

Jurisdiction:

England and Wales

Citing:

Cited – Gammon v The Attorney-General of Hong Kong PC 1984
(Hong kong) The court considered the need at common law to show mens rea. A Hong Kong Building Ordinance created offences of strict liability in pursuit of public safety which strict liability was calculated to promote.
Held: Lord Scarman . .
Cited – Sweet v Parsley HL 23-Jan-1969
Mens Rea essential element of statutory Offence
The appellant had been convicted under the Act 1965 of having been concerned in the management of premises used for smoking cannabis. This was a farmhouse which she visited infrequently. The prosecutor had conceded that she was unaware that the . .
Not binding – Regina v Salter 1968
. .
Cited – Salabiaku v France ECHR 7-Oct-1988
A Zairese national living in Paris, went to the airport to collect, as he said, a parcel of foodstuffs sent from Africa. He could not find this, but was shown a locked trunk, which he was advised to leave alone. He however took possession of it, . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Crime, Human Rights

Updated: 30 June 2022; Ref: scu.174710

Bank of Ireland (UK) Plc v Colliers International UK Plc: ChD 24 Oct 2012

The failure by the claimant creditors, contrary to the statutory provisions, to obtain the consent of either administrators or court before commencement of proceedings against a company in administration did not invalidate the proceedings.

Judges:

David Richards J

Citations:

[2012] EWHC 2942 (Ch), [2012] BPIR 1099, [2013] 2 WLR 895, [2013] 1 CH 422, [2012] WLR(D) 288

Links:

Bailii, WLRD

Jurisdiction:

England and Wales

Cited by:

Cited – Lalchan, Regina v CACD 27-May-2022
Conviction withoiut required Consent was Unsafe
Whether a conviction for an offence which requires the consent of the Attorney General before the proceedings are instituted can stand when no such consent was obtained.
Held: The appellant’s arguments were well-founded and his conviction on . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 30 June 2022; Ref: scu.465195

Re Multicultural Media Centre for the Millenium Ltd: CA 22 Mar 2001

Citations:

[2001] EWCA Civ 509

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Citing:

See Also – Multicultural Media Centre for the Millennium Ltd v Millennium Commission CA 19-Oct-2001
Where a court was faced with a situation where both parties wished to proceed, but one wanted to put in an affidavit which the other had not had chance to examine, it became impossible for that judge to proceed fairly. A winding up order made under . .

Cited by:

See Also – Multicultural Media Centre for the Millennium Ltd v Millennium Commission CA 19-Oct-2001
Where a court was faced with a situation where both parties wished to proceed, but one wanted to put in an affidavit which the other had not had chance to examine, it became impossible for that judge to proceed fairly. A winding up order made under . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 29 June 2022; Ref: scu.218072

Popely v Popely: CA 3 Oct 2002

Citations:

[2002] EWCA Civ 1448

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

See Also – Popely v Popely CA 30-Apr-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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 29 June 2022; Ref: scu.217733

Millennium Commission v Multicultural Media Centre for the Millennium: CA 13 Jun 2002

Citations:

[2002] EWCA Civ 874

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See Also – Multicultural Media Centre for the Millennium Ltd v Millennium Commission CA 19-Oct-2001
Where a court was faced with a situation where both parties wished to proceed, but one wanted to put in an affidavit which the other had not had chance to examine, it became impossible for that judge to proceed fairly. A winding up order made under . .

Cited by:

See Also – Multicultural Media Centre for the Millennium Ltd v Millennium Commission CA 19-Oct-2001
Where a court was faced with a situation where both parties wished to proceed, but one wanted to put in an affidavit which the other had not had chance to examine, it became impossible for that judge to proceed fairly. A winding up order made under . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 29 June 2022; Ref: scu.217306