Enron Metals and Commodity Ltd (in Administration) v HIH Casualty and General Insurance Limited: ChD 10 Mar 2005

The claimant company sought leave whilst in administration to bring arbitration proceedings against the defendant insurers.
Held: In exercising the discretion given by the section, the court had only to decide whether the claim was so bad that it would be a waste of resources to allow it to proceed to arbitration. It was the same test as the summary judgment test. Though the method of resolving this dispute as chosen by the parties precluded the court investigating the merits, that had to be done to a limited extent to consider whether leave was apropriate. In this case a sufficient case had not been shown, and leave was refused.


Pumfrey J


Times 06-Apr-2005


Insolvency Act 1986 130(2)


England and Wales


CitedCapita Financial Group Ltd v Rothwells Ltd 20-Apr-1989
(New South Wales) The parties had guaranteed borrowings of a third party. The plaintiff had paid on call, and now sought a contribution from the defendant. After issue, the defedant began a winding up petition. The plaintiff sought leave to continue . .
CitedIn 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 . .
Lists of cited by and citing cases may be incomplete.


Updated: 27 June 2022; Ref: scu.225878