In Re Sutton (Removal of Liquidator): ChD 17 Oct 1997

The insolvency practitioner held many appointments. His partnership in a large firm of accountants ended suddenly. He did not have the resources to handle the cases, and nor could acceptable arrangements be made for him to have access to the related files within the firm. An application was made by another partner in the firm for his removal.
Held: Removal of a liquidator was for cause shown. That cause could include a supervening inabilityy to conduct the case. The power to apply for the removal of liquidator from his position was not limited to the liquidator and or creditors. Here it was appropriate for an application to be made by a partner in the liquidator’s firm. That firm had day to day conduct of the insolvency. The order would avoid the need for a creditors’ meeting with the accompanying substantial costs.


Blackburne J


Times 03-Nov-1997, Gazette 12-Nov-1997


Insolvency Act 1986 108(2) 172(2)


DistinguishedIn re Sankey Furniture Ltd, ex parte Harding; Re Calorifique Limited, ex parte Betts ChD 1995
Separate applications were made by liquidators of companies in variously voluntary or compulsory liquidation and otherwise. . .
CitedIn re Parkdawn Ltd ChD 1993
The section provided sufficient power to allow a court to appoint a new liquidator in the case of a company’s liquidation. Though there is no express power, one is assumed within the insolvency rules. . .
CitedRe Bullard and Taplin Ltd ChD 1996
Tne question of whether there was at any time ‘pending court proceedings’ was answered by asking if there existed a court file. The section empowered a court itself to appoint another trustee in bankruptcy. Section 41 of the 1984 Act could be used . .
CitedRe Bridgend Goldsmiths Limited and Others ChD 1995
The High court may not exercise its jurisdiction under section 263 of the 1986 Act within a voluntary arrangement within the county court. . .
CitedJohn Abbott and others No 00137 of 1997 ChD 1997
Having exercised its power under s41 to remove liquidators and supervisors, the court had power itself to appoint replacement officers. The existing practitioner had ceased to hold the appropriate authorisation. . .
CitedRe Adams (AB) Builders Limited 1991
An insolvency practitioner who had lost his power to act applied to the court to be removed from his positions as liquidator in several creditors voluntary liquidations. . .
CitedRe Stella Metals Limited and Others (In liquidation) 1997
Application was made for the replacement of a number of insolvency practitioners by the Insolvency Practitioners Association Ltd.
Held: The association might as a recognised body, have locus standi to apply to the court, but it was not a . .
Lists of cited by and citing cases may be incomplete.


Updated: 08 April 2022; Ref: scu.82212