Links: Home | swarblaw - law discussions

swarb.co.uk - law index


These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.  














Insolvency - From: 1994 To: 1994

This page lists 35 cases, and was prepared on 08 August 2015.

 
Re a debtor No 833 of 1993 and No 834 of 1993 [1994] NPC 82
1994
ChD
Vinelott J
Insolvency, Legal Professions
The court allowed a solicitor's statutory demand to lie despite the debtors' argument based on the right to taxation of the underlying bill. "Solicitors would be placed in an intolerable position if no statutory demand could be served as long as it was open to the client to apply for taxation." and, for completeness: "there is nothing to prevent [the debtors] from now applying for leave to tax the bill. If leave is given and the bill is taxed down, they will be entitled to repayment of an excess over the amount of the taxed bill which they have paid. What they cannot do is to defer paying any substantial part of the bill until the process of applying for leave and, if leave is granted, taxing the bill as being completed."
1 Citers


 
In Re a Debtor No 32 of 1991 (No 2) [1994] BCC 524
1994
ChD
Vinelott J
Insolvency
It was an abuse of process for a firm of accountants to serve a statutory demand for the amount of their bill. Vinelott J said of the situation where a demand is made for payment of reasonable remuneration for services rendered: "I do not say that a statutory demand can never properly be presented in such a case - that the creditor must always quantify his claim by obtaining a judgment before serving a statutory demand. There may be cases where the minimum sum due can be ascertained by reference to some objective standard. There may be cases where the rate of charging is agreed and the minimum time that had to be spent on the task for which remuneration is sought can be similarly established; or advance or periodic payments may have been agreed. But these cases must be regarded as exceptional."
1 Citers


 
Thorne -v- Silverleaf [1994] 1 BCLC 637
1994
CA
Peter Gibson LJ, Ralph Gibson LJ
Insolvency
Peter Gibson L.J said: "In s.217(1)(b) knowledge that it is a crime is required."
Insolvency Act 1986 217
1 Citers


 
William Gaskell Ltd -v- Highley [1994] 1 BCLC 197
1994

Morritt J
Insolvency

1 Cites

1 Citers


 
In re Polly Peck International plc, Ex parte the joint administrators [1994] BCC 15
1994
ChD
Vinelott J
Insolvency, Company
The purposes of a liquidation, or administration or receivership of a company must include the gathering of information as to the conduct of the affairs of the company, and those who had conducted them so that the office-holder can report to the Secretary of State as he is required to do by section 7(3) of the Disqualification Act: "it is quite clear that the purposes of the administration must include the gathering of information as to the conduct of the affairs of the company and those responsible for it by an administrator in order that he can report to the Secretary of State as he is required to do. He must do so in order that the Secretary of State can perform his duty, which is the important one of taking proceedings if it appears that a disqualification order should be made."
Company Directors' Disqualification Act 1986 7(3) - Insolvency Act 1986
1 Citers


 
Re a Debtor [1994] 1 WLR 917
1994
ChD
Jacobs J
Insolvency
The ordinary procedure of an insolvency involves two-stage, a statutory demand followed by a bankruptcy petition. The service of a "statutory demand" in the prescribed form is simply one means of establishing "inability to pay". The procedure is intended to be brief, and is aimed at establishing an inability to pay and no more. It is not a general sieve where the court considers generally whether the petition will succeed or fail. At the petition stage the court may consider the reasonableness of an offer to secure or to compound as required by section 271(3). At that stage the court looks at whether the debtor is able to pay all his debts and looks at the debtor's contingent and prospective liabilities.
Insolvency Act 1986 268(1)(a) 271(2)
1 Citers


 
Calor Gas -v- Piercy [1994] BCC 69
1994


Insolvency

1 Citers



 
 In re Hydrodam (Corby) Limited; ChD 1994 - [1994] 2 BCLC 180
 
In Re New Bullas Trading Ltd Times, 12 January 1994; Ind Summary, 17 January 1994; [1994] 1 BCLC 449
12 Jan 1994
CA
Nourse LJ, Russell LJ and Scott Baker J
Company, Banking, Insolvency
A company debenture, which purported to create a fixed charge on book debts, and a second floating charge over the proceeds when paid, was valid and effective to create a fixed charge. The chargee was not a bank, and therefore no facility could be provided for payment of book debts. However "Just as it is open to contracting parties to provide for a fixed charge on future book debts, so it is open to them to provide that they shall be subject to a fixed charge while they are uncollected and a floating charge on realisation. No authority to the contrary has been cited and, the principle being as spacious as it has been expressed to be, no objection is on that account sustainable. For these reasons, I would accept [Counsel's] second main submission and hold that the charge over book debts of the company, as created by the debenture, was, unless and until their proceeds were paid into the specified account, a valid fixed charge."
1 Cites

1 Citers


 
In Re Layland Daf Ltd (#2) Times, 19 January 1994
19 Jan 1994
CA

Insolvency
Exclusive Dutch jurisdiction clause stopped a s234 order for vehicles.
Insolvency Act 1986 234

 
Practice Note (Administration Order Applications: Independent Reports) Times, 25 January 1994
25 Jan 1994
ChD

Insolvency
Guidance from Vice Chancellor on cost of obtaining independent reports.
1 Citers


 
Transag Haulage Ltd (In Admin Receivership) -v- Leyland Daf Finance Plc and Another Ind Summary, 31 January 1994; Times, 15 January 2004; [1994] 2 BCLC 88
31 Jan 1994
ChD
Knox J
Insolvency, Contract
Hire-purchase agreements for the hire of three lorries were entered into by Transag, a haulier, between January and May 1991. The price for the three lorries was £177,333, with down payments totalling £69,333 and the balance (for each vehicle) due by 36 monthly payments of £1000. Transag went into administrative receivership in November 1993, when only about £14,000 remained to be paid and the lorries were worth about £67,000. The agreements were in standard form with provision for termination by the owner after a default, which included receivership. Provisions for termination, included return of the vehicles to the owner and an immediate liability for outstanding instalments; and "If the hirer (having duly observed and performed all the terms and conditions of this agreement whether expressed or implied, and having paid all sums due under this agreement) shall pay to the owner the sum of £5 the hiring thereby constituted shall determine and the hirer shall become the absolute owner of the goods but until such time the goods shall remain the sole property of the owner and the hirer shall be a mere bailee thereof." Transag requested relief from forfeiture. Held: The case was "one of those rare cases" where it would be right for the court to exercise its discretion and grant relief on terms that the outstanding instalments were to be paid within seven days. A hirer might be given given equitable relief in respect of its proprietory rights despite its receivership. The court should look at the extent of financial defaults, the extent of any disproportionate loss which would be incurred for either owner or hirer, and any substantial windfall profit which might accrue to the owner.
1 Cites

1 Citers


 
Re Leyland Daf Ltd (No 2) Ind Summary, 31 January 1994
31 Jan 1994
CA

Insolvency
Receivers bound by exclusive jurisdiction clause - no order for delivery up.

 
In Re Companies (Nos 007923 and 007924 of 1994) Times, 02 February 1994
2 Feb 1994
CA

Insolvency
The court has a power to enjoin advertisement of winding up petition.

 
Morris and Others -v- Mahfouz and Another Gazette, 02 February 1994
2 Feb 1994
CA

Insolvency
Terms of undertaking when applying for worldwide Mareva injunction.

 
Practice Note Insolvency - Administration Orders Gazette, 16 February 1994
16 Feb 1994
Chd

Insolvency
Reports for Administration order applications need not be very detailed.

 
Practice Note: Administration Order Applicants; Independent Reports Ind Summary, 21 February 1994
21 Feb 1994
ChD

Insolvency
A report prepared on support of an application for an administration order need not always be detailed.
Insolvency Rules 1986 2.2


 
 Allied Dunbar Assurance Plc -v- Fowle and Others; CA 23-Feb-1994 - Times, 23 February 1994

 
 In Re A Debtor (No 32 of 1993); ChD 1-Mar-1994 - Times, 01 March 1994; Gazette, 11 May 1994; [1994] 1WLR 899
 
Powdrill and Another -v- Watson and Another Independent, 22 March 1994; Gazette, 08 June 1994; Gazette, 20 April 1994; Times, 01 March 1994; Ind Summary, 14 March 1994
1 Mar 1994
CA

Employment, Insolvency
The administrators of a company are deemed to have accepted the employees who had been kept on after 14 days. A letter from them denying that they would accept them as employees, was insufficient to prevent adoption of the contracts.
Insolvency Act 1986 19(5) 27
1 Cites

1 Citers


 
In Re Palmer, Deceased (A Debtor) Times, 30 March 1994; [1994] Ch 316; [1993] 3 WLR 877
25 Mar 1994
ChD
Vinelott J
Insolvency
The court considered the effect of the doctrine of relation back on a property of which the bankrupt was formerly a joint tenant where the bankrupt had died after the act of bankruptcy but before adjudication. Held: A deceased's share in property held under a joint tenancy was not caught by an insolvency after the death.
Insolvency Act 1986 283
1 Cites

1 Citers


 
Mckillop and Watters, Petitioners Times, 14 April 1994
14 Apr 1994
OHCS

Insolvency
A scottish receiver of a company is not himself in occupation of the company's premises for rating purposes.

 
TSB Bank Plc -v- Katz and Another Times, 02 May 1994
2 May 1994
ChD

Insolvency
An application under the Act which was not part of any other proceedings may be made in any division of the High Court.
Insolvency Act 1986 423

 
In Re A Debtor (No 32-SD-1991) (No 2) Times, 03 May 1994
3 May 1994
ChD

Insolvency
A court cannot conditionally set aside a statutory demand served on debtor by a creditor.
Insolvency Act 1986

 
Woolwich Building Society -v- Taylor and Another Times, 17 May 1994; [1995] 1 BCLC 132
17 May 1994
ChD
Lindsay J
Insolvency, Insurance
A person requesting third party information under the Act, must first establish a claim sufficient to justify the right claimed. The third party claimant's right against the insured arose at the time when the claimant suffered a loss but that the right of the insured to sue his insurer in respect of the liability he had incurred did not arise until the liability had been ascertained by judgment, award or agreement. Since it was impossible to know whether a right had been transferred until such judgment award or agreement had occurred, no information could reasonably be required, before such judgment award or agreement, "for the purpose of ascertaining whether any rights have been transferred or vested" in the claimant by the Act.
Third Parties (Rights Against Insurers) Act 1930 2
1 Citers


 
Agricultural Mortgage Corporation Plc -v- Woodward and Another Times, 30 May 1994; [1995] 1 BCLC 1
30 May 1994
CA
Sir Christopher Slade, Neill LJ, Saville LJ
Insolvency
A tenancy granted by an insolvent farmer to his wife was set aside because of additional benefits which were granted. The tenancy was held to have been granted at an undervalue, even though the court was unable precisely to measure the value of the benefits granted. "In applying section 423(1)(c) to the facts of the present case, one must look at the transaction as a whole; the tenancy agreement cannot be considered in blinkers. Due weight must be given (inter alia) to the facts not only that the agreement was entered into by the first defendant with his wife for the purposes outlined above, but that the land in question was mortgaged and that the wife, through the grant of the tenancy, would be placed in the 'ransom' position described above. Accepting that she agreed to pay for her yearly tenancy which was the best rent reasonably obtainable for that tenancy viewed in isolation, and that she undertook the other tenant's obligations imposed by the tenancy agreement, it seems to me nevertheless clear that, when the transactions are viewed as a whole, the benefits which the first defendant thereby conferred on her were significantly greater in value, far greater in value, in money or money's worth than the value of the consideration provided by her. To hold otherwise would seem to me to fly in the face of reality and common sense. No further evidence was, in my judgment, required to establish that the transaction was one falling within s.423(1)(c); the agreed facts speak for themselves. On the facts of this case, the substantial detriment incurred by the first defendant under the transaction was largely matched by a substantial benefit conferred on the second defendant beyond the rights specifically conferred on her by the tenancy agreement."
Neill LJ: "The purpose of the grant of the tenancy agreement was to ensure that the plaintiff did not get vacant possession of the property and was for the purpose of prejudicing the interests of the plaintiff. By the grant of the tenancy, Mrs Woodward acquired the benefit of the surrender value which placed her, as counsel for the plaintiff put it, in 'a ransom position' in any future dealings with the mortgagee. … In the circumstances I see no answer to the argument that, quite apart from any value which may be attributed to the securing of the family home and the acquisition of a debt-free business, the surrender value constituted 'consideration provided by' Mr Woodward which was significantly greater than the payment made by Mrs Woodward for the grant of the lease."
Insolvency Act 1986 423
1 Citers


 
In Re Cranley Mansions Ltd Gazette, 18 January 1995; Times, 23 June 1994
23 Jun 1994
ChD
Ferris J
Insolvency
There had been a material irregularity in a creditors' meeting called to approve a voluntary arrangement, where the chair of the meeting had put forward an highly debatable estimate of one creditor's debt. The voluntary arrangement was set aside.
Insolvency Rules 1986 1.17
1 Cites

1 Citers



 
 Hindcastle Ltd -v- Barbara Attenborough Associates Ltd and Others; CA 6-Jul-1994 - Ind Summary, 18 July 1994; Times, 06 July 1994

 
 Hamilton and Another -v- Naviede and Director of SFO; HL 26-Jul-1994 - Independent, 26 July 1994; Times, 26 July 1994; [1995] 2 AC 75

 
 In Re Ferranti Plc; In Re Leyland Daf Ltd; ChD 11-Aug-1994 - Independent, 13 September 1994; Times, 11 August 1994
 
In Re Rae (A Bankrupt) Times, 27 October 1994
27 Oct 1994
ChD

Insolvency
A boat owner's right to nominate a licence successor is property assignable to his trustee in bankruptcy.

 
In Re the Working Project Ltd; In Re Fosterdown Ltd and Others Times, 27 October 1994; Ind Summary, 28 November 1994; [1995] BCC 197
27 Oct 1994
ChD
Carnwath J
Company, Insolvency
Company disqualification proceedings may conclude in the county court after a winding up of the company in that court. The power to disqualify directors survives the finishing of the winding up of the company, even though the Official Receiver had had no right to commence the proceedings and the County Court had had no jurisdiction to hear them.
Company Directors Disqualification Act 1986 6(3)
1 Citers


 
In Re Edennote Ltd; Tottenham Hotspur plc -v- Ryman [1995] 2 BCLC 248
1 Nov 1994
ChD
Sir John Vinelott
Insolvency, Company
The company Edennote had been wound up on insolvency. It had a possible claim for fees against Tottenham, owned by Mr Sugare. The shareholder, Terry Venables, took an assignment of that action. An application was made to set aside the assignment and to remove the liquidator. Held: The application succeeded. The assignment of the action had been against the expressed wishes of the creditors, who said that the action was worth more. The assignment was set aside and the liquidator was removed. The application to set the assignment aside could be commenced under either section 167 or 168.
A liquidator had to act in the interests of the general body of creditors, and might be removed if the creditors lost confidence in his ability to realise assets effectively and to pursue claims diligently.
Insolvency Act 1986 167(3) 168(5)
1 Cites

1 Citers


 
Secretary of State for Trade and Industry -v- Palmer Times, 04 November 1994
4 Nov 1994
IHCS

Insolvency
It is not possible to place a limited company into an interim administration.

 
In Re Gordon and Breach Publishers Ltd Times, 04 November 1994
4 Nov 1994
ChD

Insolvency
Decision to compulsory wind up company in voluntary liquidation involves more than an arrangement.

 
Copyright 2014 David Swarbrick, 10 Halifax Road, Brighouse, West Yorkshire HD6 2AG.