Costs incurred by liquidators in realising charged assets are payable ahead of the debenture holder’s claims. As the debenture-holder is entitled to the proceeds, it is right that he should pay the cost of realisation.
Judges:
James LJ
Citations:
(1875) 3 Ch D 411
Jurisdiction:
England and Wales
Cited by:
Cited – Buchler and another (as joint liquidators of Leyland DAF Limited) v Talbot and another (as joint administrative receivers of Leyland DAF Limited) and Stichting Ofasec and others HL 4-Mar-2004
The liquidator sought to recover his expenses from assets charged under a floating charge in priority to the chargee.
Held: Barleycorn was decided in error. The liquidators costs incurred in an insolvent winding up were not to be charged . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 26 November 2022; Ref: scu.194246