Digital Equipment Co Ltd and Others v Bower and Others: ChD 4 Dec 2003

The liquidators had lost their legal action, and had been ordered to pay the present claimants their costs. They sought payment out of an insolvency services account in competition with the solicitors for the liquidators.
Held: An award of costs was not a payment of ‘expenses incurred in the winding up’ and therefore the court had no discretion to order payment of the costs out of the fund. London Metallurgical established the primacy of the court order and this had been preserved in the rules, but the rules did not include provision for payment of costs to be paid by the liquidators under a court order.


Laddie J


Times 29-Dec-2003, Gazette 29-Jan-2004, [2003] EWHC 2895 (Ch), [2004] 1 All ER 577, [2004] 1 WLR 1678




Insolvency Act 1986 112 156, Insolvency Rules 1986 (SI 1986 No 1925) 4.218(1) 4.220(1)


England and Wales


CitedIn re London Metallurgical Co 1985
A costs order made against liquidators arising from proceedings they had taken, will usually have priority over the general expenses of the action. The list of expenses said nothing about the costs of litigation incurred by the liquidator or awarded . .
CitedKahn 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 . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Costs

Updated: 08 June 2022; Ref: scu.190087