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In re Harris Simons Construction Limited: ChD 1989

The section gives the court jurisdiction to make an administration order if it ‘(a) is satisfied that a company is or is likely to become unable to pay its debts’ and ‘(b) considers that the making of an order . . would be likely to achieve’ one or more of the purposes specified in s8(3). The court had to consider the meaning of the word ‘likely’.
Held: ‘likely’ connotes probability but the particular degree of probability intended must be gathered from qualifying words (very likely, quite likely, more likely than not) or context. It cannot be a misuse of language to say that something is likely without intending to suggest that the probability of its happening exceeds 0.5. The legislature seemed to intend to set a modest threshold of probability to found jurisdiction and to rely on the court’s discretion not to make orders in inappropriate cases.

Judges:

Hoffmann J

Citations:

[1989] 1 WLR 368

Statutes:

Insolvency Act 1986 8(1)

Jurisdiction:

England and Wales

Cited by:

CitedCream Holdings Limited and others v Banerjee and The Liverpool Daily Post and Echo Limited CA 13-Feb-2003
The defendants considered publication of alleged financial irregularities by the claimant, who sought to restrain publication. The defendants argued that under the Act, prior restraint should not be used unless a later court would be likely to . .
CitedCream Holdings Limited and others v Banerjee and others HL 14-Oct-2004
On her dismissal from the claimant company, Ms Banerjee took confidential papers revealing misconduct to the local newspaper, which published some. The claimant sought an injunction to prevent any further publication. The defendants argued that the . .
CitedLachaux v Independent Print Ltd (1) CA 12-Sep-2017
Defamation – presumption of damage after 2013 Act
The claimant said that the defendant had published defamatory statements which were part of a campaign of defamation brought by his former wife. The court now considered the requirement for substantiality in the 2013 Act.
Held: The defendant’s . .
Lists of cited by and citing cases may be incomplete.

Insolvency

Updated: 06 May 2022; Ref: scu.182935

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