Patten J considered whether to grant consent to a monetary action against the company now in administration, and said: ‘it will be in exceptional cases that the Court gives a creditor whose claim is simply a monetary one, a right by the taking of proceedings to override and pre-empt that statutory machinery.’ Judges: Patten J … Continue reading AES Barry Ltd v Txu Europe Energy Trading: ChD 15 Jul 2004
Creditors sought to treat the International Tin Council as an ‘association’ for the purposes of a provision under the Companies Act 1985 allowing for unregistered companies to be wound up. Held: The decision in Re a Company was binding. The presentation of a petition based upon an arbitration award was not enforcement of the award. … Continue reading Re International Tin Council: CA 1989
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 … Continue reading Re a Debtor: ChD 1994
The parties, the bankrupt and her trustee, had engaged in a mediation which failed at first, but applicant said an agreement was concluded on the day following. The defendants denied this, and the court as asked to determine whether a settlement had occurred, and was now asked whether without prejudice communications made during the mediation … Continue reading Brown v Rice and Another: ChD 14 Mar 2007
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 … Continue reading In Re Sutton (Removal of Liquidator): ChD 17 Oct 1997
An expectation of a criminal injuries award is not property for bankruptcy proceedings. Citations: Times 08-Dec-1995 Statutes: Insolvency Act 1986 306-1 Jurisdiction: England and Wales Insolvency Updated: 25 July 2022; Ref: scu.81632
A voluntary winding up is deemed to take place when the resolution for it was passed. The practice of passing such a resolution to take effect only upon the revocation of an administration order was ineffective. The correct way was for an order regarding the administration to be made but held pending notification of the … Continue reading In Re Norditrack (UK) Ltd: ChD 11 Nov 1999
The deceased had given a guarantee of the tenant’s covenant given by his company under a lease. The court was asked whether the obligations under the guarantee survived his death after he company was wound up. Held: Chadwick LJ explained the Hindcastle case: ‘Lord Nicholls explained in Hindcastle v. Barbara Attenborough why the former practice … Continue reading Basch v Stekel and Another: CA 25 Jul 2000
A Northern Ireland company can be wound up in England and Wales if its principal place of business had been in England and Wales. The company incorporated in Northern Ireland became insolvent. It sought to strike out the Secretary of State’s petition under 124A, and said it could not apply to a Northern Ireland Company. … Continue reading In Re A Company (No 007946 of 1993): ChD 18 Nov 1993
A creditor was bound by a voluntary arrangement if he knew of the meeting and was served properly. Citations: Times 25-Jul-1995 Statutes: Insolvency Act 1986 5(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81642
Creditor not having had properly served on him a notice of the s257 meeting was not bound by an arrangement agreed at the meeting. Citations: Times 12-Nov-1993, Gazette 26-Jan-1994 Statutes: Insolvency Act 1986 257 260(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81647
Where a school made teachers redundant because of insolvency, and gave notice to teachers to the end of the summer term, that was to include the summer holidays, and the pay until the end of the holidays was properly claimable against the school, and if necessary against the Secretary of State. The holiday related to … Continue reading In Re A Company (No 008174 of 1999): ChD 2 Nov 1999
A creditor was not obliged to take an offer of security where there was unsecured debt. Citations: Times 08-Dec-1993 Statutes: Insolvency Act 1986 268 Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81661
The giving false or misleading information to creditors at the meeting is ‘a Material Irregularity’ sufficient to have the result of the meeting set aside. Citations: Times 07-Aug-1995, Ind Summary 21-Aug-1995, Ind Summary 11-Sep-1995 Statutes: Insolvency Act 1986 262(4) 257 Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81668
An interim s252 order was not sufficient to justify a stay of a peaceable forfeiture; such a proceeding was not ‘other proceedings’ within the Act. Citations: Gazette 13-Jul-1995 Statutes: Insolvency Act 1986 252(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81673
Where it was alleged that shares in a UK company had been sold at an undervalue, so as to allow a challenge in insolvency proceedings, the leave of the court was still required if the pleadings were to be served abroad. When the court considered such an application, it had to look not just at … Continue reading In Re Banco Nacional De Cuba: ChD 7 Jun 2001
Application by the Trustees of the bankruptcy estate of Mr Djurbery for a search and seizure order pursuant to s.365 of the Insolvency Act 1986 Judges: Insolvency and Companies Court Judge Jones Citations: [2022] EWHC 1534 (Ch) Links: Bailii Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.679125
The trustee in bankruptcy appealed against refusal of a declaration that a transfer of the bankrupt’s share in a house to his wife had been at an undervalue. Judges: Sales J Citations: [2011] EWHC 2047 (Ch), [2011] WTLR 1681, [2011] BPIR 1529 Links: Bailii Statutes: Insolvency Act 1986 339 Jurisdiction: England and Wales Insolvency Updated: … Continue reading Claridge, Re The Trustee In Bankruptcy of: ChD 29 Jul 2011
The court considered an application by the wife when, anticipating ancillary relief claims, the husband sought to have himself declared bankrupt, and she intervened to have the bankruptcy set aside. The husband now appealed. Held: Wilson LJ set out examples of the application to particular facts of the jurisdiction to reverse an error prior to … Continue reading Paulin v Paulin: CA 17 Mar 2009
EAT TRANSFER OF UNDERTAKINGS: Acquired rights directive TRANSFER OF UNDERTAKINGS: Varying terms of employment As a matter of construction of TUPE Reg 5(1), a contractual term entitling employees to pay ‘in accordance with collective agreements negotiated from time to time by [the NJC]’ is protected on a TUPE transfer to the private sector so as … Continue reading Alemo-Herron v Parkwood Leisure Ltd: EAT 12 Jan 2009
Citations: [2018] EWHC 3161 (QB) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 23 July 2022; Ref: scu.630749
OR’s appeal from dismissal of order for income payments with an IPO. Judges: Warren J Citations: [2013] EWHC 4594 (Ch) Links: Bailii Statutes: Insolvency Act 1986 310 Jurisdiction: England and Wales Insolvency Updated: 23 July 2022; Ref: scu.522668
Judges: Morgan J Citations: [2011] EWHC 1544 (Ch), [2011] ArbLR 34, [2011] BPIR 1524 Links: Bailii Statutes: Insolvency Act 1986 112 155 Jurisdiction: England and Wales Insolvency Updated: 22 July 2022; Ref: scu.441064
The court was asked whether the debts due to a former holder of a floating charge which, after the commencement of the liquidation of the company, releases its security, are ‘unsecured debts’ within section 176A. Judges: Roger Kaye QC J Citations: [2010] EWHC 2850 (Ch), [2011] BCC 93 Links: Bailii Statutes: Insolvency Act 1986 176A(2)(A) … Continue reading Kelly and Another v Inflexion Fund 2 Ltd and Another: ChD 11 Nov 2010
The applicant, a substantial creditor of the respondent sought the appointment of his agents as administrators. The respondent denied that it was insolvent, and claimed a set off as reason for non payment of its loan notes. Held: The claimant was a creditor, and the company was or was likely to become insolvent. However the … Continue reading Corbett v Nysir UK Ltd: ChD 31 Oct 2008
The applicant sought leave to appeal against a refusal to adjourn his examination in bankruptcy fearing that the contents would become public prejudicing his criminal trial abroad. The court had allowed a private examination, but he felt this was insufficient protection. Held: Leave was refused. Judges: Mummery LJ Citations: [2008] EWCA Civ 1360 Links: Bailii … Continue reading Rottmann v Brittain: CA 12 Nov 2008
The chairman of the creditors meeting had marked the proof of Petrus as objected to but had allowed Petrus to resulting in the appointment of the joint liquidators. The claimant now challenged this saying that had Petrus not been allowed tp vote he would have been appointed. Held: Lewison J set out the scheme: ‘The … Continue reading Power v Petrus Estates Ltd and others: ChD 31 Oct 2008
Application to annul bankruptcy order – council tax liability orders. Judges: Mullen J ICC Citations: [2019] EWHC 1763 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a) Jurisdiction: England and Wales Insolvency Updated: 19 July 2022; Ref: scu.640071
Application by liquidators to be excused compliance with section 176A. Judges: Blackburne J Citations: [2008] EWHC 2339 (Ch) Links: Bailii Statutes: Insolvency Act 1986 176A(5) Jurisdiction: England and Wales Insolvency Updated: 19 July 2022; Ref: scu.276790
The Secretary of State sought the winding up of companies in the public interest. The companies operated a holiday club scheme. Citations: [2008] EWHC 1866 (Ch) Links: Bailii Statutes: Insolvency Act 1986 124A Jurisdiction: England and Wales Insolvency Updated: 19 July 2022; Ref: scu.276675
Citations: [2008] ScotCS CSOH – 133 Links: Bailii Statutes: Insolvency Act 1986 165 Scotland, Insolvency Updated: 19 July 2022; Ref: scu.276211
An order vesting a lease disclaimed by the trustee in bankruptcy, in a mortgagee, may provide that any profit which is made on a re-sale of the lease was to be paid on to the receiver for the benefit of creditors. Citations: Times 24-Feb-1998, Gazette 08-Apr-1998 Statutes: Insolvency Act 1986 320 Jurisdiction: England and Wales … Continue reading In Re Lee (A Bankrupt): ChD 24 Feb 1998
A landlord may exercise a right of peaceable re-entry without court action after his tenant company went into administration. It was not the enforcement of a security so as to be restricted by insolvency legislation. Citations: Times 04-May-1999, Gazette 26-May-1999 Statutes: Insolvency Act 1986 10(1) Jurisdiction: England and Wales Landlord and Tenant, Insolvency Updated: 19 … Continue reading In Re Lomax Leisure Ltd: ChD 4 May 1999
A wife who had an order for ancillary relief in her favour, but whose husband entered into an Individual Voluntary Arrangement, was obliged to accept the allotted dividend, but her special position under the Act was also to be acknowledged. She had the choice of awaiting discharge from the IVA first. Citations: Gazette 03-Mar-1999, Times … Continue reading In Re M (A Debtor) (488-Io of 1996): ChD 10 Feb 1999
Application made pursuant to section 236 of the Insolvency Act 1986 by the Joint Liquidators of Comet Group Limited, (Comet), for information and documents which they contend they require to enable them to investigate and decide whether or not to pursue a claim in damages against the Respondents, Whirlpool (UK) Ltd, (Whirlpool UK), and Embraco … Continue reading Kahn and Others v Whirlpool (UK) Ltd and Another: ChD 27 Oct 2014
A contractual lien for the unpaid price of goods was not a charge on the company’s assets and so did not become void for non-registration. It was a valid lien. Citations: Times 13-Mar-1998 Statutes: Insolvency Act 1986 11(3)(a) Jurisdiction: England and Wales Company Updated: 19 July 2022; Ref: scu.81929
Company receivers in insolvency can include unregistered companies. Citations: Gazette 26-Aug-1992, [1993] 3 CL 247 Statutes: Insolvency Act 1986 29(2) Jurisdiction: England and Wales Cited by: Distinguished – In Re Devon and Somerset Farmers Ltd ChD 25-May-1993 An Industrial and Provident Societies Act society is unregistered and is therefore not a company for the purposes … Continue reading In Re International Bulk Commodities Ltd: ChD 26 Aug 1992
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the company, but Saudi law would not recognise such trusts. The shares had been … Continue reading Akers and Others v Samba Financial Group: SC 1 Feb 2017
Sales LJ said: validation will ordinarily only be granted ‘if there is some special circumstance which shows that the disposition in question … has been … for the benefit of the general body of unsecured creditors’. Judges: Sir Terence Etherton Ch, Patten, Sales LJJ Citations: [2016] EWCA Civ 765 Links: Bailii Statutes: Insolvency Act 1986 … Continue reading Express Electrical Distributors Ltd v Beavis and Others: CA 19 Jul 2016
Samba sought a stay of insolvency proceedings. Shares in a Saudi company were held in trust by a company registered in Cayman. Upon that company going into liquidation, the shares were transferred to the defendant, who now argued that since Saudi law would not recognise such a trust, and the trust being invalid, the action … Continue reading Akers and Others v Samba Financial Group: ChD 28 Feb 2014
petition presented by the Secretary of State for Trade and Industry which seeks the winding up of Equity and Provident Ltd on grounds of public interest. Judges: Patten J Citations: [2002] EWHC 186 (Ch) Links: Bailii Statutes: Insolvency Act 1986 124A, Companies Act 1985 447 Jurisdiction: England and Wales Company Updated: 18 July 2022; Ref: … Continue reading In re Equity and Provident Ltd: ChD 19 Feb 2002
Judges: Evans-Lombe J Citations: [2008] EWHC 1791 (Ch) Links: Bailii Statutes: Insolvency Act 1986 306 Jurisdiction: England and Wales Insolvency, Land Updated: 18 July 2022; Ref: scu.271105
Collectors of share certificates are not members – have no right to share in compensation. Citations: Times 07-Jul-1993 Statutes: Insolvency Act 1986 112 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.81728
The presumption of innocence does not protect a suspect by providing a right of silence in a complex fraud investigation. Citations: Times 10-Feb-1997 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Human Rights, Insolvency Updated: 18 July 2022; Ref: scu.81733
Private school fees might well be a reasonably necessary expenditure for bankrupt to be allowed when assessing what income needs he has before ordering income payment. No general rule. Citations: Times 04-May-1998, Gazette 20-May-1998 Statutes: Insolvency Act 1986 310 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.82154
A creditor who had not been served with notice of the creditors’ meeting may still validly vote at it. Citations: Times 27-Feb-1997 Statutes: Insolvency Act 1986 257 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.81842
Receivers had adopted employees’ contracts by continuing employment after 14 days despite their overt denial. Citations: Independent 13-Sep-1994, Times 11-Aug-1994 Statutes: Insolvency Act 1986 44 Jurisdiction: England and Wales Employment, Insolvency Updated: 18 July 2022; Ref: scu.81885
Administrators took on new employees during the period of administration, but when it came to an end, they were unable to pay the PAYE and NIC for the employees. Held: The statute gave special priority to debts incurred under new contracts. The liability for PAYE fell under that category, and so did liability for NIC, … Continue reading In Re FJL Realisations Ltd: ChD 2 Mar 2000
The liquidator of a company in a creditors voluntary liquidation, and which had been importing cigarettes received a proof of debt from a company in Zimbabwe. The liquidator suspected that the proof relied upon a false declaration in denying that true country of origin of the cigarettes to avoid import duty, and sought an order … Continue reading In Re Bellmex International Ltd: ChD 23 Mar 2000
The bank had received and paid substantial sums from the company before the petition for insolvency had been presented, and had discharged the director’s charge on his house. The liquidator sought restitution under the Act. The bank replied that it had acted already in such a way as to put its own position at risk, … Continue reading Rose v AIB Group (UK) plc and Another: ChD 9 Jun 2003
An airline company went into administration. The airport seized two airplanes. The administrators claimed they were property within the administration, could not be seized without a court order, and the court should exercise its discretion not to allow seizure. Held: The definition of property in the 1982 Act was wide enough to include leased property. … Continue reading Bristol Airport Plc and Another v Powdrill and Others: CA 21 Dec 1989
The Court was asked whether the liability of a debtor for future payments under an income payments order (IPO) made in the debtor’s bankruptcy ranks as a provable debt in a later bankruptcy of the same debtor. The answer is provided by section 335 of the Insolvency Act 1986 (the Act) if the later bankruptcy … Continue reading Azuonye v Kent: CA 19 Jul 2019
This appeal raises questions of both contractual interpretation and the duties owed by administrators at common law and under paragraph 74 of Schedule B1 to the Insolvency Act 1986 Judges: Sir Geoffrey Vos, Chancellor of the High Court Citations: [2019] EWCA Civ 1290 Links: Bailii Jurisdiction: England and Wales Insolvency Updated: 17 July 2022; Ref: … Continue reading Fraser Turner Ltd v Pricewaterhousecoopers Llp and Others: CA 19 Jul 2019
Judges: Sir Edward Evans-Lombe Citations: [2009] EWHC 1118 (Ch), [2011] 2 BCLC 788 Links: Bailii Statutes: Insolvency Act 1986 124A Jurisdiction: England and Wales Company Updated: 17 July 2022; Ref: scu.346321
Application for permission to amend the particulars of claim in proceedings brought to set aside a transaction under section 423 of the Insolvency Act 1986 or to declare it a sham. Judges: Richards J Citations: [2007] EWHC 687 (Ch), [2007] Bus LR 1470, [2007] 2 BCLC 531, [2007] BPIR 713, [2007] BPIR 713 Links: Bailii … Continue reading Giles v Rhind and Another: ChD 28 Mar 2007
The Court of Appeal had allowed an appeal from the judge who had directed that the transcripts of examinations of a director of an insolvent company under section 236 on the Director of the Serious Fraud Office undertaking that the transcripts would not be used save in the circumstances specified in section 2(8) of the … Continue reading Re Arrows Ltd No 4: HL 1995
Appeal from setting aside of statutory demands. Citations: [2019] EWHC 1581 (Ch) Links: Bailii Statutes: Insolvency Act 1986 268 Jurisdiction: England and Wales Insolvency Updated: 15 July 2022; Ref: scu.639293
Application by Mr Bagnall for permission to apply for an order quashing on public law grounds a decision by the Secretary of State notified to Mr Bagnall on the 1st October 1999 to exercise the power conferred by Section 296 of the Insolvency Act 1986 to appoint Mrs Jackson as his trustee in bankruptcy. Judges: … Continue reading The Queen and Secretary of State for Trade and Industry ex parte Kenneth Reginald Bagnall QC: Admn 22 Feb 2000
The Revenue sought to recover from the defendant substantial sums in respect of allegedly unlawful dividends paid from an insolvent company. They said that the defendant and his wife were de facto directors. Held: Claims agains the second defendant were dismissed. Claims for early periods were rejected under section 727 of the 1985 Act, but … Continue reading HM Revenue and Customs v Holland and Another: ChD 24 Jun 2008
On the divorce, the husband was ordered to transfer his share in the house to the wife. On his bankruptcy shortly after, the order was confirmed. After the wife sold the property at a profit, the trustee in bankruptcy applied to set the transfer aside as a transaction at an undervalue. Held: The starting point … Continue reading Haines v Hill and Another: CA 5 Dec 2007
Judges: His Honour Judge Halliwell Citations: [2019] EWHC 1722 (Ch) Links: Bailii Statutes: Insolvency Act 1986 234(2) Jurisdiction: England and Wales Insolvency Updated: 12 July 2022; Ref: scu.639301
The defendant, an undischarged bankrupt, appealed an order made for his committal to prison after failing to co-operate with his trustee. Held: The discharge of the bankruptcy had been extended already because of the defendant’s failure to co-operate. The defendant had not been given notice of the application for his committal. Section 364 was not … Continue reading Hickling v Baker: CA 4 Apr 2007
The offence of trading under a company name after a similar named company had folded is absolute; no need to show intent to deceive. Citations: Gazette 16-Jul-1997 Statutes: Insolvency Act 1986 216 Jurisdiction: England and Wales Company Updated: 10 July 2022; Ref: scu.86406
Practice and Procedure – Stay – Paragraph 43(6) Schedule B1 Insolvency Act 1986 The Claimant had commenced Employment Tribunal (‘ET’) proceedings against eight Respondents. Subsequently, the first two Respondents (one of which had been the Claimant’s employer) went into administration and a stay was imposed on the proceedings under paragraph 43(6) Schedule B1 Insolvency Act … Continue reading Ince Gordon Dadds Llp and Others v J Tunstall and Others: EAT 19 Jun 2019
The claimants, the former administrators of Sunnyside Holiday Park Ltd sought an order that the unpaid balance of their remuneration and expenses is by para 99(3) of Sch B1 Insolvency Act 1986 charged on and payable out of a sum of pounds 62,646.06 said to be payable by the first defendant (‘the Bank’) to the … Continue reading Walker and Another v National Westminster Bank Plc and Another: ChD 25 Feb 2016
Judges: Thomas Ivory QC Citations: [2006] EWHC 2126 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Insolvency Updated: 07 July 2022; Ref: scu.244499
The insurance company was to be wound up. It operated internationally but was registered in Australia. The Australian liquidator now sought an order for the transfer of assets held here to Australia. Held: It was inevitable that cross border insolvency arrangements would cause difficulty, and particularly so for insurance companies. Such a transfer would prejudice … Continue reading McGrath and Honey v McMahon and Others, Re HIH Casualty and General Insurance Ltd and others: CA 9 Jun 2006
Judges: The Honourable Mr Justice David Richards Citations: [2006] 3 All ER 755, [2006] 1 WLR 1792, [2006] EWHC 842 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: See Also – T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and … Continue reading In the Matter of T and N Limited and others: ChD 12 Apr 2006
Companies Court application under s. 130(2) of the Insolvency Act 1986 for permission to commence proceedings against the respondent, which is a limited liability partnership in liquidation. The application is in effect to join the respondent to proceedings which have already been commenced in the Commercial Court. Judges: Proudman J Citations: [2009] EWHC 1901 (Ch) … Continue reading Bourne and 101 Othes v The Charit-Email Technology Partnership Llp: ChD 23 Jul 2009
The bankrupt had been entitled to a valuable vehicle registration mark ‘AMR 1T’. He sold it to a creditor, the claimant to clear that debt. The trustee now said that the purported assignment was ineffective. Held: ‘VRMs are assigned to vehicles, not to registered owners or other individuals. The Secretary of State has power to … Continue reading Goel v Pick: ChD 12 Apr 2006
The defendant had been subject to a possession order in respect of his secure tenancy. He was later adjudged bankrupt. He asserted that the bankruptcy specifically prevented other action to enforce the debt, and the suspended possession order was such an enforcement. Held: Where the terms of suspension were expressed so as to indicate that … Continue reading Harlow District Council v Hall: CA 28 Feb 2006
Citations: [2005] EWHC 2743 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 05 July 2022; Ref: scu.239287
The appellant had lived with the bankrupt for several years, and sought an order delayng sale of the house they had lived in until their children had grown up. She said the circumstances were exceptional. Held: The fact that the delay might put at risk the payment of the creditors in full and with interest … Continue reading Donohoe v Ingram: ChD 20 Jan 2006
The court was asked whether the prescribed parts of the company’s net property (as defined in s.176A (6)) is available to satisfy any part of the debts due to a creditor which are secured by a floating charge in that creditor’s favour but cannot be paid out of the realisation of the net property due … Continue reading Thorniley and Another v HM Revenue and Customs and Another: ChD 5 Feb 2008
The administrators having made a distribution, concluded that no further assets would be recovered and sought directions from the court to allow them to withdraw and close the administration. Held: The court had power to make the order requested which would lead to the dissolution of the company. The test was expressed in the present … Continue reading In re GHE Realisations Ltd (In Administration): ChD 4 Nov 2005
The administrators had adopted the contracts of certain employees, who now claimed that the protective awards should have priority to the expenses of the administration. Held: The payments did fall within paragraph 99(5) and do not have super-priority.Responsibility for protective awards on insolvency. Judges: Lord Justice Clarke Lord Justice Jacob Lord Justice Neuberger Citations: [2005] … Continue reading Krasner v McMath; in Re Huddersfield Fine Worsteds Limited: CA 12 Aug 2005
The court was asked whether the process of distraint against goods for unpaid tax under section 61 of the 1970 Act is an ‘execution’ within section 183 of the 1986 Act which applies where a creditor has issued, but not completed, execution against the goods or land of a company which is subsequently wound up. … Continue reading Brenner v Revenue and Customs; In re Modern Jet Support Centre Ltd: ChD 21 Jul 2005
The defendants had obtained world-wide Mareva injunctions in support of substantive proceedings by way of their counterclaim to enforce an arbitration award against the plaintiffs under section 26 against two companies, Aiglon Limited and L’Aiglon SA (a Swiss company). Held: There was no basis under section 26 for enforcement of the arbitration award against SA, … Continue reading Aiglon Limited and another v Gau Shan Co Limited: ChD 1993
A third party agreed to pay the bankrupt’s debts. He applied for the bankruptcy to be annulled, and for the trustee’s costs to be assessed and fixed at a reasonable level under section 303. The trustee appealed the costs order saying that the bankrupt had not been prejudiced by his actions. Held: The appeal was … Continue reading Peri v Engel: ChD 29 Apr 2002
Trustee’s application to have set aside a gift at an undervalue. Citations: [2008] EWHC 3348 (Ch), [2009] BPIR 320 Links: Bailii Statutes: Insolvency Act 1986 339 423 Jurisdiction: England and Wales Insolvency Updated: 30 June 2022; Ref: scu.304553
Judges: Hart J Citations: [2004] EWHC 1287 (Ch) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Citing: Cited – Halsall v Brizell ChD 1957 Land in Liverpool was sold in building plots. The vendors retained the roads and sewers and a promenade and sea wall. A separate deed of covenant of 1851 … Continue reading Beckenham Mc Ltd v Centralex Ltd and others: ChD 10 Jun 2004
The appellant had been convicted of an offence under the section in that as a bankrupt, he ‘in the two years before the petition, materially contributed to, or increased the extent of, his insolvency by gambling or by rash and hazardous speculations’. The actus reus – the bankruptcy petition and the bankruptcy to which it … Continue reading Regina v Muhamad: CACD 19 Jul 2002
The council appealed a decision that the administrative receivers of a company were not liable personally for the non-domestic rates otherwise incurred by a company during the receivership. Held: The activities of the receiver or manager were not activities creating a ratable occupation. The original business owner remained in occupation for this purpose. Judges: Lord … Continue reading In re Beck Foods Ltd: Boston Borough Council v Rees and Bennett: CA 20 Dec 2001
The liquidator sought to commence an action for fraudulent trading against a former director, who responded that the claim was time barred. Held: The claim arose when the winding-up order was made and not on any of the earlier dates suggested by the second respondent. Judges: Sir Andrew Morritt Links: Times Statutes: Insolvency Act 1986 … Continue reading In re Overnight Limited; Goldfarb v Higgins and Another: ChD 11 Feb 2009
Appeal against strike out of application to have set aside deeds of assignment. Judges: Brooke VP, Arden LJJ Citations: [2005] EWCA Civ 276 Links: Bailii Statutes: Insolvency Act 1986 167(3) 168(5) Jurisdiction: England and Wales Citing: Cited – In Re Edennote Ltd; Tottenham Hotspur plc v Ryman CA 21-May-1996 The company was in liquidation. Terence … Continue reading Ultraframe (UK) Ltd v Rigby and others: CA 19 Jan 2005
The defendant’s company in South Africa had become insolvent and the claimant had recovered judgment for arrears of rent. They obtained a freezing order against the defendant. The defendant appealed saying the court did not have jurisdiction, and should have taken account of cross claims. The defendant argued that the order was sought on a … Continue reading John Louis Carter Fourie v Allan Le Roux and others: CA 7 Mar 2005
Citations: [2002] EWCA Civ 1518 Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 28 June 2022; Ref: scu.217723
In 1989, the taxpayer transferred property by means of a trust deed in favour of his son in consideration of his ‘natural love and affection’ for him. Four years later the commissioners investigated his tax affairs, and concluded that there were substantial undisclosed business profits. He died in 1997 owing substantial sums, and the commissioners … Continue reading Inland Revenue Commissioners v Hashmi and Another: ChD 4 Oct 2001
‘The issue raised by this application is as to the ambit of (1) the Court’s jurisdiction to prevent unfair harm pursuant to paragraph 74 of Schedule B1 to the Insolvency Act 1986 (‘the Act’) and (2) the rule in Ex Parte James’ Citations: [2018] EWHC 2783 (Ch) Links: Bailii Jurisdiction: England and Wales Insolvency Updated: … Continue reading Lehman Brothers Australia Ltd v Lomas and Others: ChD 24 Oct 2018
The applicants were in turn the recipient of a Social Fund loan and a claimant who had been overpaid benefit. Both were later declared bankrupt. The Secretary of State then began to recover the loan and overpayment by deduction from their current benefits. They argued that he was unable to do so because of section … Continue reading Regina v Secretary of State for Social Security, Ex parte Taylor and Chapman: ChD 5 Feb 1996
Challenges associated with rejection of proof of debt. Judges: Hollander QC HHJ Citations: [2009] EWHC 157 (Ch), [2010] Bus LR 599, [2009] 1 BCLC 689, [2009] BPIR 306 Links: Bailii Statutes: Insolvency Act 1986 172(3) Jurisdiction: England and Wales Insolvency Updated: 28 June 2022; Ref: scu.304539
Citations: [2005] BPIR 842 Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Cited by: Appeal from – Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another CA 12-May-2006 The defendants sought relief for transactions entered into at an undervalue. The bankrupt had entered into charges and an assignment of … Continue reading Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: ChD 2005
Citations: [2005] EWCA Civ 1291 Links: Bailii Statutes: Insolvency Act 1986 216 Jurisdiction: England and Wales Insolvency, Company Updated: 28 June 2022; Ref: scu.234555
Judges: The Hon Mr Justice Richards Citations: [2004] EWHC 2740 (Ch) Links: Bailii Jurisdiction: England and Wales Citing: See Also – T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and others ChD 9-May-2003 T and N had exposure to asbestosis claims; these claims were … Continue reading Freakley, Gleave, Squires, T&N Limited v Centre Reinsurance International Company, Muenchener Rueckversicherungs-Gesellschaft, European International Reinsurance Company Limited, Curzon Insurance Limited: ChD 26 Nov 2004
Citations: [2001] EWCA Civ 387, [2001] BPIR 612, [2001] Fam Law 879 Links: Bailii Statutes: Insolvency Act 1986 335A Jurisdiction: England and Wales Insolvency Updated: 27 June 2022; Ref: scu.218057
Second application for permission to appeal. Citations: [2002] EWCA Civ 969 Links: Bailii Statutes: Insolvency Act 1986 335A Jurisdiction: England and Wales Land, Insolvency Updated: 27 June 2022; Ref: scu.217326
Citations: [2001] EWCA Civ 1316 Links: Bailii Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 27 June 2022; Ref: scu.201321
The Secretary of state sought the winding up of the companies saying it was expedient in the public interest to do so. A shareholder opposed this saying that the companies were solvent. Held: The shareholder had, in the absence of any position taken by the company, the standing to make the application, which was granted … Continue reading Rodencroft Limited, W. G. Birch Developments Limited, H-M Birch Limited; Simon Allso v The Secretary for State for Trade and Industry: ChD 23 Apr 2004
The liquidator sought to revoke or suspend the voluntary arrangement on the grounds of a material irregularity, but the application was lodged well outside the statutory 28 day limit, and he first sought leave to apply out of time. Held: The court had a discretion to extend the limit, and could take into account a … Continue reading Warley Continental Services Ltd (in liquidation) v Johal: ChD 7 Oct 2002
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 … Continue reading In Re Edennote Ltd; Tottenham Hotspur plc v Ryman: ChD 1 Nov 1994
