On the application of a landlord, the court had jurisdiction to restrain the liquidators of a solvent company in voluntary liquidation from distributing assets of the company amongst its shareholders, without setting aside sufficient assets to provide for the payment of all future rent and liabilities under the lease.
Held: ‘I am satisfied here that the intention of the legislature as shown by all the terms of the Act, was to provide once and for all for the winding up of the company, for the discharge of its liabilities, the distribution of its assets, if there were any to distribute, and then for the dissolution of the company; being of that opinion I have come to the conclusion that the liquidators would be guilty of a dereliction of duty if they were to distribute the assets without providing for this liability, and that the landlord therefore in the present case, who has a claim, as it is admitted, against the company for the future rent which may become due, is interested in seeing the liquidators discharge their duty properly, and is entitled to come to this court and ask to restrain them, when… it appears… that they claim as a matter of right….. to distribute these assets without providing for this liability ‘.
Judges:
Pearson J
Citations:
(1886) 32 Ch D 41
Jurisdiction:
England and Wales
Cited by:
Cited – Park Air Services Plc; Christopher Moran Holdings Limited v Bairstow and Ruddock CA 1-May-1997
If a lease is determined or treated as determined in a winding up or in a bankruptcy, the landlord is entitled to prove in principle for all the rent and other payments which he would have been entitled to recover from the tenant for the residue of . .
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.
Landlord and Tenant
Updated: 03 August 2022; Ref: scu.197017