In appointing the administrators, the wrong form had been used. The court was asked to use its powers to cure the mistake. The failure to file the correct form was overlooked, with the result that one of the prerequisites of an appointment taking effect under paragraph 31 remained unsatisfied. However, the administration was carried on successfully for about a year, and the error only came to light when the administrator proposed to put the company into voluntary liquidation. He then sought directions as to whether he had been validly appointed, and whether there was any way that the failure to file the correct form could be waived.
Held: The only solution was to make administration anew, but with retrospective effect. The failure could not be waived under rule 7.55, because the result of the failure was that the administration had never started and accordingly there were no ‘insolvency proceedings’ within the meaning of rule 7.55. In making the administration to take effect on a date earlier than that of the order itself, Hart J said that any such jurisdiction should be exercised ‘with extreme caution’.
Judges:
Hart J
Citations:
[2007] BPIR 1275
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – In re Care Matters Partnership Ltd ChD 7-Oct-2011
An application was made for the appointment of administrators with retrospective effect.
Held: ‘there are two separate questions. The first question is whether an administration order should be made at all. This requires both the satisfaction . .
Cited – Hill v Stokes plc ChD 2010
The court approved the appointment of a company administrator with reprospective effect. . .
Cited – In re Derfshaw Ltd and Others ChD 2-Jun-2011
The court considered applications for administration orders made by six companies at the instigation of directors of those companies, and the appointment of administrators with retrospective effect.
Held: Morgan J said that he could see scope . .
Applied – In re Kaupthing Capital Partners ChD 2010
. .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 09 December 2022; Ref: scu.445158