In the course of a winding up, the applicant creditor sought to prevent the liquidator admitting a proof of debt which he had previously refused.
Held: It was established law that the court could go behind the liquidator’s judgement to examine the circumstances behind the admission to proof of debts. However, here, the applicant itself was at risk of an action for misfeasance. The amount of its proof was not substantial, and it had itself been in part the cause of the debt being refused. The sole purpose of the action was not to prevent wrongful dilution of the assets, but rather to retain control of the liquidation, and so to prevent the action. Application refused.
Judges:
Etherton J
Citations:
Times 11-Nov-2002
Jurisdiction:
England and Wales
Insolvency
Updated: 27 June 2022; Ref: scu.178038
